Pittsburgh Post-Gazette

Firm that ran Pa. campaign denies super PAC coordinati­on

- By Angela Couloumbis Spotlight PA and Sam Janesch Spotlight PA is an independen­t, non-partisan newsroom powered by The Philadelph­ia Inquirer in partnershi­p with PennLive/The Patriot-News, TribLIVE/ Pittsburgh Tribune-Review, and WITF Public Media. Sign u

HARRISBURG — As state legislativ­e races go, the one between Republican Sen. John DiSanto and Democrat George Scott was one of the most hotly contested in Pennsylvan­ia’s November election.

The Dauphin County matchup was key to Democrats’ hopes of wresting control of the chamber from Republican­s for the first time in more than 25 years — an effort that ultimately failed.

And it was an all-out political brawl. Mr. DiSanto and Mr. Scott spent weeks attacking each other’s policies in a barrage of mailers and television ads. In the closing days of the election, a 15-second anti-Scott ad hit the airwaves, paid for by the Washington, D.C.-based Republican State Leadership Committee.

Direct coordinati­on between groups like the leadership committee, which run so-called super PACs, and political campaigns is forbidden. To create the ad, the group turned to a middle man, the same Harrisburg­based firm running Mr. DiSanto’s campaign: Red Maverick Media, headed by well-connected strategist Ray Zaborney.

No one has accused Mr. Zaborney’s firm or RSLC of wrongdoing. But good government and campaign finance experts said the arrangemen­t is another example of how weak state and federal campaign finance rules — combined with meager oversight — create gray areas and loopholes.

Mr. Zaborney, for his part, said he and his company comply with the law and pointed to federal rules that give some breathing room for firms like his to work both for candidates and outside groups with an interest in the same election.

“I’m not a campaign attorney, but I follow what mine tell me to do,” Mr. Zaborney said.

Earlier this year, Spotlight PA and The Caucus reported that a dark money group Mr. Zaborney helped launch held an exclusive California fundraiser headlined by the Senate’s top Republican, Jake Corman, of Centre County. Mr. Zaborney has also run Mr. Corman’s campaign for years but said there was no coordinati­on.

In the DiSanto race, state campaign finance records show the leadership committee paid Red Maverick nearly $300,000 in mid-October for television and digital advertisin­g — the only independen­t expenditur­e it made in Pennsylvan­ia between mid-September and mid-October.

The outside group also paid Red Maverick $30,000 in late October specifical­ly for its work in placing an ad opposing Mr. Scott, according to paperwork submitted to the Pennsylvan­ia Department of State, which oversees elections.

Mr. Zaborney acknowledg­ed that RSLC and Mr. DiSanto’s campaign are both clients of his company. But he said there is a “firewall,” consistent with federal law, between the firm’s work for Mr. DiSanto and its work for the leadership committee. He said his firm has written policies that clearly spell out how the firewall works, and his staff is trained to abide by it.

“I was on the campaign side,” Mr. Zaborney said. “That means another consultant handled the ads, placement, etc., and I had no knowledge of the content, placement, amount spent, etc.”

That other consultant, Red Maverick co-founder Mike Leavitt, echoed Mr. Zaborney’s comments, saying there was no coordinati­on. Republican State Leadership Committee officials did not respond to numerous requests for an interview.

The ban on coordinati­on between outside groups like RSLC and traditiona­l political campaigns stems from a landmark campaign finance decision a decade ago by the U.S. Supreme Court. The case, known as Citizens United, effectivel­y allowed corporatio­ns and other outside groups to make unlimited contributi­ons, reversing decades of restrictio­ns on giving.

The rationale behind the decision was that limiting independen­t spending from corporatio­ns and other groups would violate the First Amendment. The assumption was that independen­t spending cannot be corrupt because it is not coordinate­d with the political campaigns of specific candidates, according to the Brennan Center, a nonpartisa­n law and policy institute.

“The entire point of that decision is that spending by these groups would be independen­t,” said Robert Maguire, research director for Citizens for Ethics and Responsibi­lity in Washington, a nonpartisa­n accountabi­lity organizati­on. “In reality, these outside groups become de facto extensions of the campaigns they are supporting because of the lax coordinati­on rules.”

The Supreme Court’s ruling ushered in a wave of super PACs like those run by RSLC.

It also gave rise to socalled dark money groups, which set up as nonprofits and operate with little transparen­cy, not even having to disclose the names of their donors. Often, they give large sums of money to super PACs, which in turn make independen­t expenditur­es (usually television, radio and mail ads) to support or oppose a candidate.

In Pennsylvan­ia this year, both Democratic- and Republican-leaning outside groups spent millions of dollars to support candidates through independen­t spending on advertisin­g.

Mr. Scott, whose campaign raised and spent more than $2.5 million in his losing race, was one of the beneficiar­ies on the Democratic side. Groups like Conservati­on Voters of Pennsylvan­ia and the Service Employees Internatio­nal Union independen­tly paid for ads to support him.

Pennsylvan­ia Fund for Change, a super PAC funded by a dark money group, spent more than $7 million to help legislativ­e Democrats — including at least $470,000 in television ads for Scott, according to campaign finance reports and Advertisin­g Analytics.

There is no evidence the people running Mr. Scott’s campaign, or producing his ads, also worked for any of those outside groups.

RSLC, meanwhile, invested more than $2 million to help Republican­s maintain control in both the 203member state House and the 50-member state Senate.

The bulk of its spending in the state, about $1.7 million, went toward state House races — mostly in the form of direct contributi­ons to the House Republican Campaign Committee, the political arm of the House GOP. State campaign finance records, as well as filings with the Internal Revenue Service, trace the money back to large contributi­ons from corporatio­ns and billionair­e Republican donors like Sheldon Adelson and members of U.S. Education Secretary Betsy DeVos’ family, along with small donations from across the country.

Tracking who is behind the money RSLC spent to produce the ads for Mr. DiSanto’s campaign is harder. That is because the money flowed through a different political arm of RSLC — a so-called independen­t expenditur­e group, or super PAC, whose donations are more difficult to trace.

According to campaign finance filings, Mr. Zaborney’s Red Maverick Media was the only Pennsylvan­ia firm RSLC paid to produce and run ads in the state this year.

On Oct. 14, the Republican committee paid Red Maverick a total of $297,495 for the purpose of television and digital advertisin­g. On Oct. 27, it paid out another $29,709 to Mr. Zaborney’s firm for television ads, according to the filings.

Data from the firm Advertisin­g Analytics shows RSLC spent about $77,000 on a Pittsburgh-area Senate district that Republican­s flipped and about $91,000 on a Senate district in Lancaster County that the GOP held. The group spent roughly $ 142,000 in Mr. DiSanto’s district, which covers parts of Dauphin and Perry counties in Central Pennsylvan­ia.

The television ads in the DiSanto race, paid for by RSLC, aired nearly 4,400 times on cable channels — from CNN and Fox News to Lifetime and Hallmark — during the last four weeks of the campaign, according to a contract available through the Federal Communicat­ions Commission.

At the same time, Red Maverick was serving as Mr. DiSanto’s chief campaign consultant — receiving just over $1.2 million from the campaign in 2020.

Mr. Zaborney noted his work for Mr. DiSanto centered on ads that attacked Mr. Scott over a controvers­ial photo, among other things. In contrast, Mr. Zaborney said his firm’s work for RSLC honed in on Mr. Scott’s record on taxes and fiscal issues.

Mr. Maguire, of Citizens for Ethics and Responsibi­lity, said the “firewall” argument is a common one across the country — though political operatives note that it usually involves large firms with hundreds of employees, rather than smaller ones like Red Maverick, which lists 10 employees on its website.

Mr. Maguire said because of nearly nonexisten­t enforcemen­t of the ban by the Federal Elections Commission, it’s extremely difficult to uncover or prove illegal coordinati­on unless there is access to internal campaign documents.

“That is why it has become so easy for outside groups to essentiall­y become an extension of the candidate they support,” Mr. Maguire said.

 ?? Ray Zaborney via LNP/ LancasterO­nline ?? Ray Zaborney has become one of the go-to operatives for electing Republican candidates.
Ray Zaborney via LNP/ LancasterO­nline Ray Zaborney has become one of the go-to operatives for electing Republican candidates.

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