There is nothing more disturbing than finding out that those involved with a so-called watchdog group have been violating the laws and standards such organizations pretend to uphold.
Media Matters for America founder David Brock, however, was reportedly caught doing exactly that. A conservative watchdog group has accused Brock of funneling money from a non-profit to a for-profit entity he controlled, ABC 14 News reports.
In addition to Media Matters, Brock is also the founder of the American Bridge Foundation (ABF). The latter group reportedly transferred $2.7 million from its tax-exempt assets to True Blue Media, a for-profit company that is also owned by Brock.
If the report is true, this would violate IRS laws that prohibit such a transfer. The movement of funds to True Blue was noted in filed IRS forms, which is where the Patriots Foundation discovered the possibly unlawful activity.
According to the Daily Caller Craig Robinson, the president of the Patriots Foundation, stated, “David Brock, a leading leftwing political consultant, raises millions of dollars every year to influence the media, politics, and campaigns.
“Behind the scenes, his network of organizations have engaged in very troubling behavior that warrants serious investigation,” he added.
The Daily Caller reported that the Patriots Foundation has filed three different complaints against Brock’s organizations due to the alleged violations.
ABF pushes back
ABF has already pushed back on the allegations being made by the Patriots Foundation. According to ABF, the money was deposited in exchange for stock shares in True Blue Media.
Additionally, the organization stated that Brock resigned from his position at ABF to avoid any conflict of interest. There is a problem, though, in that Brock was still listed as ABF’s chairman in 2018, after the transaction referred to above took place.
Even if that is true, however, it does not explain away other financial discrepancies, such as the millions of dollars transferred from ABF to cover operating costs at its sister entity, AB PAC, as well as interest-free loans that were made.
On these issues, Robinson stated, “These complaints we filed provide a damning indictment of serious allegations about how his organizations have circumvented rules and exploited the tax-exempt status of the organizations for personal benefit and partisan political purposes, and potentially siphoning millions for improper purposes.”
If the allegations turn into a legitimate legal issue for ABF, it will be a massive blow to one of the most prominent and influential liberal watchdogs in the country.