Modbert
Daydream Believer
- Sep 2, 2008
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Latest tea party target: Its own convention - Yahoo! News
Sound like a scam to anyone else?
The convention is being held at a fancy resort, features $550 ticket prices, a steak and lobster dinner and a guest speaker with a $100,000 speaking fee. Its sponsored by a for-profit company with a mysterious wealthy benefactor, and its organizers, who have been accused of secrecy and corruption, have threatened lawsuits against dissenters and clamped down on news coverage.
Sounds like just the kind of thing that tea party activists, whose populist outrage is directed at the Washington and Wall Street establishments, would be up in arms over.
Except its a tea party convention.
Billed as a pivot point to transition the tea party movement from a chaotic uprising to an organized and sustainable political force and featuring Sarah Palin as its star attraction, the first-ever convention in Nashville from Feb. 6 to Feb. 8 is insead shaping up as a reminder of the problems inherent in holding together a fractious coalition of local groups resistant to authority and pursuing often-conflicting agendas.
Red State blogger Erick Erickson made it clear recently what he thinks of the coming event pronouncing that it smells scammy and is inconsistent with the grass-roots energy behind the tea party movement.
At least two national groups that have emerged as major players in the movement rejected requests to buy sponsorships for the convention which were going for as much $50,000 while three other groups have recently withdrawn as sponsors, with two citing concerns over organizer infighting and questions about the conventions unusual finances.
It was the brainchild of Judson Phillips, a Tennessee lawyer who as first reported by POLITICO is running the event through a for-profit Tennessee corporation he controls called Tea Party Nation. Most political conventions are conducted by nonprofits. Yet Phillips originally intended to turn a profit from the endeavor, with the cash going to fund a so-called 527 group that would air ads praising conservative candidates or criticizing their opponents.
But Phillips now concedes he didnt fully grasp the complexities of pulling off the convention and is merely hoping to break even, despite recently selling out the last remaining tickets. In addition to 600 tickets at the $550 level, which will admit attendees to the convention and Palin's speech, Tea Party Nation offered an additional 500 tickets to Palins keynote for $350 each.
POLITICO has learned that Phillips obtained a $50,000 loan to pay a deposit towards the $100,000 fee Washington Speakers Bureau charged to secure Palin as the keynote speaker at the convention. Much of the loan came from Bill Hemrick, a baseball card tycoon whose loan contract didnt call for interest but did set a deadline last week for repayment, which Phillips missed.
Erickson worries that by associating herself with Phillips and the convention, Palin might be ruining herself unintentionally.
She has already taken some heat for the $100,000 contract Tea Party Nation signed with Washington Speakers Bureau which Hemrick said requires either first-class airfare or a private jet to fly her to the event.
After she was criticized for the fee, Palin told Fox News Bill OReilly that she will not financially be gaining anything from this. Instead, she suggested she would turn it right back around and contribute to campaigns, candidates and issues.
But the only way she could do that under federal election law would be to make maximum contributions of $2,400 to candidates, $5,000 to political action committees or $30,400 to national party committees (she could make larger contributions to independent 527 groups, but those are barred from directly supporting or opposing candidacies).
Sound like a scam to anyone else?