Charles Koch: Bo Rader/ZUMA; David Koch: Sonia Moskowitz/ZUMA
There's one main rule at the
conservative donor conclaves held twice a year by Charles and David Koch at luxury resorts: What happens there stays there.
The billionaire industrialists and their political operatives
strive to ensure the anonymity of the wealthy conservatives who fund their sprawling political operation—which funneled
more than $400 million into the 2012 elections—and to keep their plans private. Attendees of these summits are
warned
that the seminars, where the Kochs and their allies hatch strategies
for electing Republicans and advancing conservative initiatives on the
state and national levels, are strictly confidential; they are cautioned
to keep a close eye on their meeting notes and materials. But last
week, following the Kochs' first donor gathering of 2014, one attendee
left behind a sensitive document at the Renaissance Esmeralda resort
outside of Palm Springs, California, where the Kochs and their comrades
had spent three days focused on winning the 2014 midterm elections and
more. The document lists VIP donors—including John Schnatter, the
founder of the Papa John's pizza chain—who were scheduled for one-on-one
meetings with representatives of the political, corporate, and
philanthropic wings of Kochworld. The one-page document, provided to
Mother Jones
by a hotel guest who discovered it, offers a fascinating glimpse into
the Kochs' political machine and shows how closely intertwined it is
with Koch Industries, their $115 billion conglomerate.
The more than 40 donors courted by the Kochs include hedge fund and
private-equity billionaires, real estate tycoons, and executives of top
corporations, including Jockey International and TRT Holdings, owner of
Omni Hotels and Gold's Gym. A number of them have never been
identified as members of the Koch donor network, including Schnatter,
one of the more prominent names on the list. An
outspoken opponent of the Affordable Care Act, he is a longtime Republican donor who
hosted a fundraiser
for Mitt Romney's presidential campaign. The document notes that the
pizza mogul was scheduled to meet with Ryan Stowers, the director of
higher education at the Charles G. Koch Foundation. (Schnatter did not
respond to requests for comment.)
The document suggests a close collaboration
between officials of Koch Industries, AFP, and Freedom Partners, whose
staff and board are stacked with numerous current and former Koch
Industries employees.
Another top conservative contributor on the list is TRT
Holdings' cofounder Robert Rowling, whose net worth is estimated at $4.9
billion. During the 2012 election,
Rowling directed
$3.5 million to American Crossroads, the super-PAC spearheaded by Karl
Rove, and he cut a $100,000 check to the pro-Romney super-PAC Restore
Our Future. According to the document, Rowling was scheduled to sit down
with Charles Koch at the "Koch residence"—presumably a reference to the
Wichita businessman's vacation home at the
Vintage Club,
a short drive from the resort where the donor conference was held. Top
Koch operatives were expected to participate in this session, including
Kevin Gentry, the Koch brothers' fundraising guru; Daniel Garza, the
director of the
Libre Initiative, a Koch-funded organization dedicated to Latino outreach; and Marc Short, who runs
Freedom Partners,
the centerpiece of the Kochs' political network, which distributes
donor funds to a large web of conservative nonprofit groups. (Rowling
did not respond to requests for comment.)
Other heavy hitters slated for meetings with the Koch brothers or their representatives included
Carl Berg, a Silicon Valley real estate tycoon worth $1.1 billion;
Ken Griffin, who founded the hedge fund Citadel and clocks in at No. 103 on the Forbes 400 (net worth, $4.4 billion);
John W. Childs, a top private-equity investor; and
Fred Klipsch, the chairman of the headphone and speaker company Klipsch Group.
The meeting list illustrates the interwoven nature of the Koch
brothers' corporate, political, and philanthropic activities. The donor
meetings featured various senior Koch Industries executives, including
the company's chief financial officer, Steve Feilmeier. He was scheduled
to join Charles Koch for a sit down with Berg. Charles Koch's
36-year-old son, Chase, the president of Koch Fertilizer, was also
scheduled to take part in a meeting with a donor named George Gibbs.
(Koch Industries spokesman Rob Tappan would not comment on the
conference document, only confirming that company employees attend the
donor summits. Freedom Partners spokesman James Davis said he was
"uncertain" about the document and did not respond to further
questions.)
At least half of the one-on-one sessions involved representatives of
Americans for Prosperity,
the political advocacy group founded by the Koch brothers and their top
political adviser and strategist, Richard Fink, a Koch Industries
executive vice president and board member. The AFP officials called to
duty for these discussions included AFP's president Tim Phillips, chief
operating officer Luke Hilgemann, vice president for state operations
Teresa Oelke, and vice president for development Chris Fink (Richard
Fink's son). The state directors for AFP's Wisconsin, Michigan,
Pennsylvania, and Florida chapters were also slated for tête-à-têtes
during the Koch summit. (AFP spokesman Levi Russell declined to comment
on the meeting document.)
In the past, Koch Industries has
distanced itself
from AFP and its political activities. The company has said the group
is just one of "hundreds of organizations" that receive funding from the
Kochs and that it operates "independently" of Koch Industries. But the
document suggests a close collaboration between officials of Koch
Industries, AFP, and Freedom Partners, whose staff and board are stacked
with numerous current and former Koch Industries employees. Michael
Lanzara and Jeff Noble, who transitioned over to Freedom Partners from
Koch Companies Public Sector—the company's legal, lobbying, and public
affairs branch—were scheduled to meet with donors alongside AFP
staffers. The Koch brothers and Richard Fink were also listed as taking
part in some of these sessions. (Fink, a man of many hats within the
Koch firmament, is also an AFP board member; David Koch chairs the board
of the Americans for Prosperity Foundation.)
Heading into the midterm elections, AFP has emerged as one of the
right's most active and well-financed political outfits. In recent
months, it has spent
more than $20 million on ads
clobbering congressional Democrats for supporting Obamacare. And the
group is merely one piece of the Kochs' massive political operation,
which in size, scope, and fundraising prowess has come to resemble a
political party in its own right. During the 2012 election cycle, in
fact, the Koch network managed to raise
as much as the Republican National Committee itself.
After the brothers and their allies failed to win the Senate or unseat Obama in 2012, David Koch
told Forbes
that this setback would do little to deter them: "We're going to fight
the battle as long as we breathe." At the Palm Springs conference, as
the left-behind-list of VIP meetings shows, the Kochs are lining up
serious financial firepower for the political fights of 2014 and beyond.
DONORS
Carl Berg: Ranking No. 308 on the Forbes 400, Berg is a Silicon Valley real estate titan with an estimated fortune of $1.1 billion.
Ronnie Cameron: He runs agribusiness giant Mountaire Corporation. During a meeting of the Kochs' donor network in 2011, Charles Koch
recognized Cameron (and other donors) for donating at least $1 million to their cause.
Charles Chandler: Based in the Kochs' hometown of Wichita, Kansas,
Chandler is the CEO of Intrust Bank.
John Childs: He runs the Boston-based private equity firm J.W. Childs & Associates.
Jamie Coulter: Haling from Wichita,
Coulter is the former CEO of the Lone Star Steakhouse and Saloon restaurant chain.
Bob and Steve Fettig: The Fettigs run the metal fabrication company Tankcraft, based in Darien, Wisconsin. Steve is the company's CFO; Bob is CEO.
Richard and Leslie Gilliam: Richard founded Virginia-based coal mining company Cumberland Resources Corporation, which he sold to Massey Energy for nearly a billion dollars in 2010.
Ken Griffin: A major conservative donor, the Chicago-based businessman founded the hedge fund Citadel and is worth an
estimated $4.4 billion.
John Griffin: He's the founder of Blue Ridge Capital, a New York hedge fund.
Dick Haworth: He's the chairman emeritus of Holland, Michigan-based office furniture company Haworth.
Richard "Ric" Kayne: He's the founder and chairman of Los Angeles-based investment firm Kayne Anderson Capital Advisors.
Dan Kirby: He's president of Sioux Falls, South Dakota-based Kirby Financial.
Fred Klipsch: He's the
chairman of Klipsch Group, a speaker and headphone manufacturer.
Frank Kozel: He's the principal of Pittsburgh-based Keystone Energy Oil & Gas Inc.
Francis "Franc" Lee: He's the president and CEO of Flowood, Mississippi-based lender First Tower, LLC.
Robert "Bob" Luddy: He's
president of CativeAire
Systems Inc. in Raleigh, North Carolina.
Hugh Maclellan: He's the executive chairman of Chattanooga, Tennessee's
Maclellan Foundation, which make grants to Christian causes.
Cecil O'Brate: He's the CEO of Garden City, Kansas-based Palmer Manufacturing & Tank.
Verl Purdy: He's the
chairman and CEO of Charlotte, North Carolina-based AGDATA Inc.
Tom Rastin: He's a director and vice chairman of the
Mount Vernon, Ohio-based Ariel Foundation, started by his wife, Karen
Buchwald Wright, the CEO of Ariel Corporation. Rastin is the company's
vice president of engineering, sales, and marketing.
George Records: A
member of the Hoover Institution's board of overseers, Records is the retired chairman of Oklahoma City's Midland Group.
Robert Rowling: Ranking No. 93 on the Forbes 400
with an estimated fortune of $4.9 billion, Rowling is the cofounder of
TRT Holdings, which owns Gold's Gym and Omni Hotels.
John Schnatter: He's the founder and CEO of Papa John's International.
Tina and Craig Snider: They are the children of Ed
Snider, a founding contributor of the Ayn Rand Institute and chairman of
Comcast Spectacor, a sports and entertainment company that owns the
Philadelphia Flyers.
Dian Stai: Based in Texas, Stai cofounded Owen
Healthcare Inc. with her late husband. She's a top conservative donor
who gave $125,000 to the pro-Mitt Romney super-PAC Restore Our Future
during the 2012 election cycle.
Jim Stephenson: He's the president and CEO of
Georgia-based Yancey Bros. Co., "which provides Caterpillar, AGCO, and
Blue Bird Bus Co. products and services throughout the state of
Georgia." Stephenson is also an Americans for Prosperity board member.
Jim Von Ehr: He's the CEO and founder of Richardson, Texas-based
Zyvex Labs.
Debra Waller: Since 2001, she's been the chairman and CEO of Jockey International Inc.
Lew Ward: He's the founder of Oklahoma-based Ward Petroleum Corporation.
Dick Weiss: He's the Core Equity senior portfolio manager at Wells Capital Management.
Karen Wright: She's the founder and CEO of the Ariel
Foundation, a private philanthropy group based in Mount Vernon, Ohio.
She's also CEO of the Ariel Corporation, a natural gas compression
company.
*Mother Jones was unable to confirm the identities of some
donors on the list, including Steve Clark, Paul Foster, George Gibbs,
George Jenkins, Jerry Hayden, Kent McCarthy, Andrew Miller, Ted
Saunders, Tom Smith, Jaime Snider, and Dean Williams.
"PLAYERS"
Charles Koch: He's the chairman and CEO of Koch Industries.
David Koch: He's Koch Industries' executive vice president and a board member.
Michael Lanzara: A former director for special projects at Koch Companies Public Sector, Lanzara now works for
Freedom Partners.
Steve Feilmeier: He's chief financial officer and executive vice president of Koch Industries.
Kevin Gentry: A vice president at Koch Companies
Public Sector, Gentry is the Koch brothers' top fundraiser. He also
serves on the board of Freedom Partners.
Jeff Noble: A former
senior development associate at Koch Companies Public Sector, Noble currently works for Freedom Partners.
Tim Phillips: He's the
president of Americans for Prosperity, the political advocacy group founded by the Koch brothers and Richard Fink.
Chris Fink: He's Americans for Prosperity's
vice president of development and the son of Richard Fink.
Teresa Oelke: She's Americans for Prosperity's
vice president for state operations.
David Fladeboe: He's the
state director for Americans for Prosperity-Wisconsin.
Brett Hinkey: A former
senior development associate at Koch Companies Public Sector, Hinkey now works for Freedom Partners.
Daniel Garza: He's the
executive director of the Libre Initiative, a Koch-funded nonprofit focused on Hispanic outreach.
Chase Koch: He's Charles' son and the president of Koch Fertilizer.
Richard Fink: He's the chairman and CEO of Koch
Companies Public Sector and a board member of Koch Industries. A founder
of the Mercatus Center and Americans for Prosperity, Fink is the Koch'
top strategist and political adviser.
Ryan Stowers: He's the director for higher education at the Charles G. Koch Foundation.
Brian Hooks: He's the
executive director and chief operating officer of the Mercatus Center.
Marc Short: Short heads
Freedom Partners,
the centerpiece of the Koch brothers' political operation. Short is a
former chief of staff of the House Republican Conference.
Scott Hagerstrom: He's the state director of Americans for Prosperity-Michigan.
Jennifer Stefano: She's the state director for Americans for Prosperity-Pennsylvania.
Tommy Von der Heydt: He's a former regional development officer for Americans for Prosperity.
Corey Lewandowski: He's the
East Coast regional director for Americans for Prosperity.
Slade O'Brien: He's
state director of Americans for Prosperity-Florida.
John Hardin: He's a
program manager at the Charles G. Koch Foundation.
Michael Palmer: He is the president of i360, which
bills itself as the "leading data and technology resource for the
pro-free-market political and advocacy community." Palmer's firm has
worked closely with the Kochs' voter microtargeting operation,
Themis.
Derek Johnson: He's a
program officer for higher education at the Charles G. Koch Foundation.
Nathan Nascimento: He's an employee of Freedom Partners.
James Davis: He's the
vice president of strategic communications at Freedom Partners.
Luke Hilgemann: He's Americans for Prosperity's chief operating officer.