Campaign 2010

Jul 30, 2010

Karl Rove’s American Crossroads GPS Must Come Clean About Wyly Brothers

Yesterday, major Texas Republican contributors Samuel and Charles Wyly were charged with using secret overseas accounts for the last 13 years to massively defraud the American taxpayers and reap more than half a billion dollars.  The Wyly brothers are closely connected to Karl Rove and the Bush family, both directly and through the Swift Boat Veterans.  In light of yesterday’s news about the Wyly brothers $550 million fraud and their past with shady Republican groups, Karl Rove must come clean about the Wyly’s participation in American Crossroads GPS.

 

"Karl Rove’s American Crossroads has been raising millions of dollars from secret Republican sources.  With the news of the Wyly’s $550 million fraud against American taxpayers, Karl Rove must come clean about how much of this shady Wyly money is being use to fund American Crossroads and their lies against Democrats," said Jennifer Crider, spokesperson for the Democratic Congressional Campaign Committee.  "Voters deserve to know if people who used overseas accounts for a half a billion fraud are funding shady right wing groups like Karl Rove’s American Crossroads."

 

The Wyly brothers have a long history with President George H.W. Bush, President George W. Bush, and Karl Rove.  The brothers have contributed thousands of dollars and raised President George W. Bush an additional $100,000.  The brothers also contributed $200,000 to President George W. Bush’s inauguration.  Additionally, using Karl Rove tactics, the Wyly brothers funded the Swift Boat Veterans in 2004, which directly helped President George W. Bush get reelected.

 

BACKGROUND

 

According to today’s Washington Post, two billionaire brothers in Texas, Sam and Charles Wyly have been accused in a complaint by the SEC of violating federal securities laws and committing fraud by using offshore accounts to secretly trade the shares of public companies whose boards they sat on, reaping more than $550 million in profit [Washington Post, 7/30/10]

 

Sam and Charles Wyly Funded Most Notorious 2000 Republican Group. “Sam and Charles Wyly -- the wealthy Dallas-based brothers who funded and ran ‘Republicans for Clean Air,’ a 527 group that attacked McCain for his environmental record during the 2000 primaries. In the aftermath of his defeat, McCain specifically cited the group in his plea for more and better campaign finance reform, saying the groups were ‘making a mockery of existing campaign finance laws.’” [Washington Post, 4/21/06]

 

Wyly Brothers Funded Swift Boat Veterans in 2004 Along with American Crossroads Donor Harold Simmons. Among the largest donors to the Swift Boat Veterans for Truth were the Wyly brothers and Harold Simmons, the Dallas billionaire who is bankrolling American Crossroads. [Bloomberg, 9/11/04; Los Angeles Times, 10/5/04; National Journal, 3/31/10]

 

Wyls Helped Bankroll Bush Inauguration. According to the New Republic, “Now the Wylys have found a still stealthier way to curry favor with the new administration: They each contributed $100,000 to Bush's presidential inaugural committee.” [The New Republic, 1/22/01]

 

Karl Rove’s Republican front group, American Crossroads, set up a separate committee to accept secret contributions to fund advertizing attacking Democrats. The CEO of Rove’s group conceded that the reason for creating American Crossroads GPS was to conceal the identity of donors who seek to influence the 2010 elections. [Politico, 7/20/10]