What’s more they then proceeded to steal everything that was not nailed down:
Before I called Bernie Sanders, I lit a candle in my living room and put on some gospel music. I wanted to center myself for what I knew would be an emotional phone call.
I had promised Bernie when I took the helm of the Democratic National Committee after the convention that I would get to the bottom of whether Hillary Clinton’s team had rigged the nomination process, as a cache of emails stolen by Russian hackers and posted online had suggested. I’d had my suspicions from the moment I walked in the door of the DNC a month or so earlier, based on the leaked emails. But who knew if some of them might have been forged? I needed to have solid proof, and so did Bernie.
So I followed the money. My predecessor, Florida Rep. Debbie Wasserman Schultz, had not been the most active chair in fundraising at a time when President Barack Obama’s neglect had left the party in significant debt. As Hillary’s campaign gained momentum, she resolved the party’s debt and put it on a starvation diet. It had become dependent on her campaign for survival, for which she expected to wield control of its operations.
The Saturday morning after the convention in July, I called Gary Gensler, the chief financial officer of Hillary’s campaign. He wasted no words. He told me the Democratic Party was broke and $2 million in debt.
“What?” I screamed. “I am an officer of the party and they’ve been telling us everything is fine and they were raising money with no problems.”
That wasn’t true, he said. Officials from Hillary’s campaign had taken a look at the DNC’s books. Obama left the party $24 million in debt—$15 million in bank debt and more than $8 million owed to vendors after the 2012 campaign—and had been paying that off very slowly. Obama’s campaign was not scheduled to pay it off until 2016. Hillary for America (the campaign) and the Hillary Victory Fund (its joint fundraising vehicle with the DNC) had taken care of 80 percent of the remaining debt in 2016, about $10 million, and had placed the party on an allowance.
If I didn’t know about this, I assumed that none of the other officers knew about it, either. That was just Debbie’s [Wasserman-Schultz] way. In my experience she didn’t come to the officers of the DNC for advice and counsel. She seemed to make decisions on her own and let us know at the last minute what she had decided, as she had done when she told us about the hacking only minutes before the Washington Post broke the news.
“Gary, how did they do this without me knowing?” I asked. “I don’t know how Debbie relates to the officers,” Gary said. He described the party as fully under the control of Hillary’s campaign, which seemed to confirm the suspicions of the Bernie camp. The campaign had the DNC on life support, giving it money every month to meet its basic expenses, while the campaign was using the party as a fund-raising clearinghouse. Under FEC law, an individual can contribute a maximum of $2,700 directly to a presidential campaign. But the limits are much higher for contributions to state parties and a party’s national committee.
Individuals who had maxed out their $2,700 contribution limit to the campaign could write an additional check for $353,400 to the Hillary Victory Fund—that figure represented $10,000 to each of the 32 states’ parties who were part of the Victory Fund agreement—$320,000—and $33,400 to the DNC. The money would be deposited in the states first, and transferred to the DNC shortly after that. Money in the battleground states usually stayed in that state, but all the other states funneled that money directly to the DNC, which quickly transferred the money to Brooklyn.
“Wait,” I said. “That victory fund was supposed to be for whoever was the nominee, and the state party races. You’re telling me that Hillary has been controlling it since before she got the nomination?”
Gary said the campaign had to do it or the party would collapse.
“That was the deal that Robby struck with Debbie,” he explained, referring to campaign manager Robby Mook. “It was to sustain the DNC. We sent the party nearly $20 million from September until the convention, and more to prepare for the election.”
Right around the time of the convention, the leaked emails revealed Hillary’s campaign was grabbing money from the state parties for its own purposes, leaving the states with very little to support down-ballot races. A Politico story published on May 2, 2016, described the big fund-raising vehicle she had launched through the states the summer before, quoting a vow she had made to rebuild “the party from the ground up … when our state parties are strong, we win. That’s what will happen.”
Yet the states kept less than half of 1 percent of the $82 million they had amassed from the extravagant fund-raisers Hillary’s campaign was holding, just as Gary had described to me when he and I talked in August. When the Politico story described this arrangement as “essentially … money laundering” for the Clinton campaign, Hillary’s people were outraged at being accused of doing something shady. Bernie’s people were angry for their own reasons, saying this was part of a calculated strategy to throw the nomination to Hillary.
I wanted to believe Hillary, who made campaign finance reform part of her platform, but I had made this pledge to Bernie and did not want to disappoint him. I kept asking the party lawyers and the DNC staff to show me the agreements that the party had made for sharing the money they raised, but there was a lot of shuffling of feet and looking the other way.
When I got back from a vacation in Martha’s Vineyard, I at last found the document that described it all: the Joint Fund-Raising Agreement between the DNC, the Hillary Victory Fund, and Hillary for America.
The agreement—signed by Amy Dacey, the former CEO of the DNC, and Robby Mook with a copy to Marc Elias—specified that in exchange for raising money and investing in the DNC, Hillary would control the party’s finances, strategy, and all the money raised. Her campaign had the right of refusal of who would be the party communications director, and it would make final decisions on all the other staff. The DNC also was required to consult with the campaign about all other staffing, budgeting, data, analytics, and mailings.
I had been wondering why it was that I couldn’t write a press release without passing it by Brooklyn. Well, here was the answer.
I told Bernie I had found Hillary’s Joint Fundraising Agreement. I explained that the cancer was that she had exerted this control of the party long before she became its nominee. Had I known this, I never would have accepted the interim chair position, but here we were with only weeks before the election.
When Donna Brazile describes the Clinton campaign as a, “Cancer,” it means something.
What’s more, she makes it clear that her campaign contributed to Democratic losses down ticket by starving those races, and the state and local party organizations, of resources.
Not a pretty picture.