As the New York Times and ThinkProgress have reported, Ralph Reed
has returned as a force in the political world. A decade ago, Reed was a
kingmaker in Republican politics and a corporate lobbyist who counted
Fortune 100 companies like Enron and Microsoft as clients. His fall from
grace, starting with the Jack Abramoff scandal and culminating in a
humiliating loss in his run for lieutenant governor of Georgia, is
apparently now behind him. Times reporter Erik Eckholm points out that
Reed has successfully revived his work as an operator within the
Republican Party, most notably with his ability to ensnare nearly every
Republican presidential contender to a conference he’s hosting this
weekend.
However, little is known about Reed’s work reviving his business as
an astroturf lobbyist. According to documents obtained by ThinkProgress,
the National Cable and Telecom Association (NCTA), a trade association
that represents cable providers
like Comcast and Qwest Communications, has provided Reed’s lobbying
firm with at least $3,462,117 worth of contracts in the last three years
alone. Century Strategies, the firm founded by Reed and fellow
astroturf lobbyist Tim Phillips in 1997, received the contracts for what
NCTA deemed “legal and advertising” services. View a screenshot of the
relevant documents here and here.
ThinkProgress has queried several staffers at Reed’s lobbying firm to
learn about the contract. At CPAC this year, one employee for Reed told
us that he did not work on the NCTA account and knew little about it. I
spoke to another staffer in Reed’s Atlanta office this week and asked
if the firm ever provides any kind of legal or advertising work for
clients. “None at all,” she replied to the legal question. “Nope, we
don’t,” she said in response to a question I had about Century
Strategies creating or purchasing advertisements for clients. Why did
the cable industry pay Reed millions for advertising work, then?
I asked Brian Deitz, the vice president for communications and public
affairs at NCTA, about the over $3 million given to Reed. “We do not
comment on specific financial matters related to NCTA,” was his only
response.
The Abramoff scandal provided a window into Reed’s lobbying business.
Unlike former lawmakers, who retire from office and use their knowledge
of the legislative process to inform corporate clients, Reed tells
clients he can orchestrate “third party allies” and “grassroots”
support for their political goals. For Abramoff, Reed shifted money
from Native American casino interests to groups like Americans for Tax
Reform and state-based Christian nonprofits to mobilize seemingly
“grassroots” support. He had Enron pay him to place op-eds in newspapers
and to create Christian-themed front groups to deregulate the utility
market. Tim Phillips, Reed’s business partner at Century Strategies for
many years, used another evangelical nonprofit to run anti-Semitic
attacks against Eric Cantor when he first ran for Congress. Perhaps the
most recognized case was a contract from a sweatshop owner in the
Marianas Islands to Reed and Abramoff to orchestrate evangelical
opposition to labor laws. In effect, Reed fooled religious right voters into supporting sweatshops cited for widespread forced abortions and prostitution.
The business of asking corporations to donate to conservative
nonprofits for stealth lobbying campaigns has been a winning model for
Reed since he was in his early 20s. As Thomas Frank detailed in his book
“The Wrecking Crew,”
Reed got his start in college via the United Students of America
Foundation. As a College Republican, Reed would collect money from
corporate interests hoping to destroy campus-based Public Interest
Research Groups (consumer action groups better known as PIRGs). As PIRGs
fought to enact regulations on polluters, Reed and his college-aged
buddies, including Abramoff and Grover Norquist, would solicit the same
polluters to donate to their nonprofits to do battle with the do-gooders
at PIRG.
In 2006, as the negative headlines from the Abramoff scandal appeared
to doom the Century Strategies brand name, Reed’s partner Tim Phillips
left the firm to become the president of Koch Industries’ front group,
Americans for Prosperity. Along with serving
as a front for Koch lobbying goals, Americans for Prosperity (AFP) has,
for many years, acted as a coin-operated front for any corporation
willing to pay them. The Washington Post once wrote an expose
covering AFP’s work (at the time, it was known as “Citizens for a Sound
Economy”) for sugar interests in orchestrating conservative opposition
to wetlands protection.
As he has done for nearly 30 years now, Reed again appears to be
masterminding phony grassroots campaigns for businesses willing to pay
him. For instance, an exclusive ThinkProgress investigation
from last month revealed that Reed’s lobbying firm is behind a new “Tea
Party” front group dedicated to repealing the Dodd-Frank Wall Street
reforms passed last year.
Around the same time the cable industry paid Reed over $3 million,
cable companies across the country were battling a regulation known as
“net neutrality” — a rule that allows Internet freedom by ensuring that
Internet providers, like cable companies, do not discriminate based on
content or bandwidth speeds. The NCTA, Reed’s cable trade association
benefactor, lobbied aggressively to prevent Congress or the FCC from
enacting net neutrality rules. The trade association, along with member
companies like Comcast, ran ads and hired many lobbyists.
Mysteriously, around the time of the NCTA million-dollar contracts to
Century Strategies, Reed’s old business partner Tim Phillips took up
the charge of defeating net neutrality. His group, Americans for
Prosperity, pushed conspiracies that net neutrality has something to do
with communism. As the FCC continued its deliberations over the rule, AFP launched a $1.4 million ad
campaign with Tea Party-themes against net neutrality. The narrator
breathlessly denounces the bank bailouts, then compares them to net
neutrality, exclaiming: “Now, Washington wants to spend billions to
takeover the Internet.” Watch it: The claims made by the ads are patently ridiculous. Net neutrality has
existed since the early years of the Internet, when government-sponsored
engineers developed the first networks and recognized that bandwidth
discrimination would hamper innovation. Indeed, rather than a government
“takeover” of the Internet, net neutrality ensures that Internet
content — whether from a Tea Party website, a commercial website, or
even from ThinkProgress.org — can’t be censored by a cable company or
another provider. Despite supposed Tea Party opposition ginned up by
groups like Americans for Prosperity, the FCC finally did hand down
rules establishing net neutrality — with regrettable exceptions for
mobile devices.
Did the money from the cable industry — earmarked for “advertising” —
go to Tim Phillips, using Reed’s firm as a pass-through, as the two
have done in the past? It’s not clear. Century Strategies, the recipient
of the cable industry money, says it does not do anything directly in
terms of advertising. Tim Phillips’ personal consulting firm, New
Dominion Strategies, has listed the same P.O. Box used by Century
Strategies as a mailing address.
Still, Century Strategies, Americans for Prosperity, and the National
Cable and Telecom Association have refused to elaborate on the Tea
Party-themed ads. |