CONGRESSIONAL RECORD— Extensions of Remarks E2019 HON

December 31, 2012 CONGRESSIONAL RECORD — Extensions of Remarks E2019 RICHARD ARMEY’S $8,000,000 Stephenson, 73, declined a request for an which a budget was being prepared in antici- GOLDEN PARACHUTE interview. Matt Kibbe, the group’s president, pation of a large influx of money, according and Adam Brandon, its senior vice president, to several employees who attended the re- declined to discuss the issue. treat. At the retreat, Stephenson dictated HON. BARNEY FRANK ‘‘I don’t comment on donors,’’ Brandon some of the terms of how the money would OF MASSACHUSETTS said. ‘‘He’s on our board, he’s a board mem- be spent, the employees said. IN THE HOUSE OF REPRESENTATIVES ber like anyone else. That’s it. I see him at ‘‘There is no doubt that Dick Stephenson Monday, December 31, 2012 board meetings.’’ arranged for that money to come to the Stephenson, a longtime but little-known super PAC,’’ said one person who attended Mr. FRANK of Massachusetts. Mr. Speaker, player in conservative causes, is a resident of the retreat. ‘‘I can assure you that everyone given the role that former Majority Leader Barrington, Ill., a northwest suburb of Chi- around the office knew about it.’’ Richard Armey has played in significantly in- cago known for its affluence and sprawling Among other things, Stephenson wanted a creasing the role in militant conservatives in horse estates such as his Tudor Oaks Farm. substantial sum spent in support of Rep. Joe He founded the Cancer Treatment Centers of Walsh (R-I11.), a tea party favorite and the Republican party, the article in the Wash- Stephenson’s local congressman, several who ington Post on December 25 is important in- America in 1988 following his mother’s death from bladder cancer, according to the for- attended the retreat recalled. Walsh gar- formation that all Members should know. profit company’s Web site and his public re- nered national headlines during the cam- [From The Washington Post, Dec. 25, 2012] marks. Stephenson also holds investments in paign when he questioned whether his oppo- FREEDOM WORKS TEA PARTY GROUP NEARLY a broad portfolio of other businesses, includ- nent, Tammy Duckworth, a former FALLS APART IN FIGHT BETWEEN OLD AND ing finance and real estate companies. Blackhawk helicopter pilot who lost both NEW GUARD Stephenson has a passion for libertarian legs in Iraq, was a ‘‘true hero.’’ Despite in- (By Amy Gardner) politics stretching back to the 1960s, when he ternal misgivings about the value of the in- vestment, FreedomWorks spent $1.7 million The day after Labor Day, just as campaign attended seminars featuring ‘‘Atlas Shrugged’’ author Ayn Rand and economist on ads supporting Walsh; he lost the race. season was entering its final frenzy, Two watchdog groups last week asked the FreedomWorks, the Washington-based tea Murray Rothbard, according to those who know him at FreedomWorks. Like Armey, Federal Election Commission and the Jus- party organization, went into free fall. tice Department to investigate the donations Richard K. Armey, the group’s chairman Stephenson was an early supporter of Citi- from the two Tennessee companies. The and a former House majority leader, walked zens for a Sound Economy, the conservative groups, Democracy 21 and the Campaign into the group’s Capitol Hill offices with his lobbying group founded by oil billionaires Legal Center, say the arrangement could vio- wife, Susan, and an aide holstering a hand- Charles and David Koch in 1984 that split late federal laws that prohibit attempting to gun at his waist. The aim was to seize con- into Freedom Works and Americans for Pros- hide the true source of a political contribu- trol of the group and expel Armey’s enemies: perity 20 years later. The Kochs, known for tion by giving it under another name. (Bran- The gun-wielding assistant escorted bankrolling a variety of conservative causes, don declined to comment on the complaints, FreedomWorks’ top two employees off the kept control of AFP, while Stephenson and but he said the group’s books were in order.) premises, while Armey suspended several Armey stayed with FreedomWorks. others who broke down in sobs at the news. FreedomWorks has been on a remarkable PARTNERSHIP UNRAVELS The coup lasted all of six days. By Sept. 10, run in recent election cycles, growing its an- For years, FreedomWorks was headed by Armey was gone—with a promise of $8 mil- nual budget from $7 million to $40 million in an unlikely duo: Armey, 72, the old-guard poi lion—and the five ousted employees were just a few years and helping lead the tea who wears a black cowboy hat even when back. The force behind their return was party movement against Obama’s agenda. he’s not on his Texas ranch, and Kibbe, 49, Richard J. Stephenson, a reclusive Illinois The group was among several that rose up who sports mutton-chop sideburns and has a millionaire who has exerted increasing con- last week in opposition to a failed proposal passion for the Grateful Dead. trol over one of Washington’s most influen- from House Speaker John A. Boehner (R– But the most important relationship ap- tial conservative grass-roots organizations. Ohio) to raise federal taxes on millionaires. pears to be the bond between Kibbe and Ste- Stephenson, the founder of the for-profit The group played a crucial role in ushering phenson, who bridged their age gap through Cancer Treatment Centers of America and a a wave of tea party candidates into office in shared libertarian views and Kibbe’s battle director on the Freedom Works board, agreed recent years, staging rallies, hawking books with testicular cancer a decade ago, Armey to commit $400,000 per year over 20 years in and videos, and organizing media appear- and others said. They said Kibbe, after being exchange for Armey’s agreement to leave the ances with conservative personalities such as given a terminal diagnosis, was encouraged group. Glenn Beck and Rush Limbaugh. by Stephenson to get treatment at his can- The episode illustrates the growing role of ‘‘I’ve enjoyed my association with cer clinics; more than a decade later, they wealthy donors in swaying the direction of FreedomWorks,’’ said Sen. Mike Lee (R– said, he is cancer-free. FreedomWorks and other political groups, Utah), who defeated incumbent Bob Bennett Until this year, the partnership between which increasingly rely on unlimited con- with help from the group. ‘‘Matt Kibbe and Kibbe and Armey worked well. Armey’s re- tributions from corporations and financiers Dick Armey endorsed me early in my can- nown as a former House member drew media for their financial livelihood. Such gifts are didacy for the U.S. Senate, and they were a attention and crowds of conservative activ- often sent through corporate shells or non- big help to me.’’ ists—most of them old enough to remember profit groups that do not have to disclose Despite such testimonials, FreedomWorks Armey’s role in the Republican revolution in their donors, making it impossible for the has struggled with accusations that it is an Congress in 1994. And Kibbe’s youthful intel- public to know who is funding them. ‘‘astro-turfer’’—a national organization of lectualism drew a new generation of liber- In the weeks before the election, more big-money donors that swept in to lay claim tarian soldiers into the FreedomWorks fold. than $12 million in donations was funneled to an independent movement. In 2010, the two co-wrote a book, ‘‘Give Us through two Tennessee corporations to the According to public records, Liberty: A Tea Party Manifesto,’’ that be- FreedomWorks super PAC after negotiations FreedomWorks received more than $12 mil- came a New York Times bestseller and a suc- with Stephenson over a preelection gift of lion before the election from two corpora- cessful marketing tool for FreedomWorks, the same size, according to three current and tions based in Knoxville, Tenn.: Specialty In- which collected the book’s proceeds and used former employees with knowledge of the ar- vestments Group and Kingston Pike Devel- it to attract donations. rangement. The origin of the money has not opment. The firms were established within a The partnership came to a crashing end previously been reported. day of each other by William S. Rose III, a when Armey marched into FreedomWorks’s These and other new details about the local bankruptcy lawyer. office Sept. 4 with his wife, Susan, executive near-meltdown at FreedomWorks were Rose, who could not be reached for com- assistant Jean Campbell and the unidentified gleaned from interviews with two dozen cur- ment, has said publicly he would not answer man with the gun at his waist—who prompt- rent and past associates, most of whom questions about the donations. But accord- ly escorted Kibbe and Brandon out of the spoke on the condition of anonymity in ing to three current and former building. order to talk freely. FreedomWorks employees with knowledge of ‘‘This was two weeks after there had been The disarray comes as the conservative the donations, the money originated with a shooting at the Family Research Council,’’ movement is struggling to find its way after Stephenson and his family, who arranged for said one junior staff member who spoke on the November elections, which brought a the contributions from the Tennessee firms the condition of anonymity because he was second term for President Obama and Demo- to the super PAC. not authorized to talk to the media. ‘‘So cratic gains in the House and Senate. Armey Brandon, FreedomWorks’ executive vice when a man with a gun who didn’t identify said in an interview that the near-meltdown president, told colleagues starting in August himself to me or other people on staff, and a at his former group has damaged the con- that Stephenson would be giving between $10 woman I’d never seen before said there was servative cause. million and $12 million, these sources said. an announcement, my first gut was, ’Is Free- ‘‘Freedom Works was the spark plug, the Brandon also met repeatedly with members dom Works in danger?’ It was bizarre.’?’’ energy source, the catalyst for the move- of Stephenson’s family who were involved in By nearly all accounts, including from ment through the 2010 elections,’’ Armey arranging the donations, the sources said. those loyal to him, Armey handled his at- said, referring to the GOP midterm sweep. Stephenson attended a FreedomWorks re- tempted coup badly. Armey says he was step- ‘‘Harm was done to the movement.’’ treat in Jackson Hole, Wyo., in August at ping in because of ethical breaches by Kibbe

VerDate Mar 15 2010 05:12 Jan 01, 2013 Jkt 029060 PO 00000 Frm 00005 Fmt 0626 Sfmt 0634 E:\CR\FM\A31DE8.006 E31DEPT1 rfrederick on DSK6VPTVN1PROD with E2020 CONGRESSIONAL RECORD — Extensions of Remarks December 31, 2012 and Brandon, accusing them of improperly (From USA Today) IN TRIBUTE TO PUSHMATAHA using FreedomWorks staff resources to COUNTY HISTORICAL SOCIETY produce a book—ironically, named ‘‘Hostile MILLIONS FORGO FORECLOSURE REVIEWS Takeover’’—for which Kibbe claimed sole (HOMEOWNERS DON’T HAVE MUCH TIME TO credit and was collecting royalties. The use ASK FOR ACCURACY CHECKS) HON. ELTON GALLEGLY OF CALIFORNIA of internal resources for Kibbe’s benefit (By Julie Schmit) could jeopardize the group’s nonprofit tax IN THE HOUSE OF REPRESENTATIVES status; the group denies any impropriety. Millions of homeowners who were in fore- Monday, December 31, 2012 ‘‘This is not only about this one incident,’’ closure in 2009 or 2010 could miss a chance to Armey said. ‘‘But that one incident was a have their cases reviewed for errors—and Mr. GALLEGLY. Mr. Speaker, I rise in trib- matter of grievous concern.’’ possible compensation—if they don’t act by ute to the Pushmataha County Historical Soci- Armey also accused Brandon, Kibbe and Monday. ety in Antlers, Oklahoma, and in particular other staff members loyal to them of squeez- That’s the deadline for eligible home- Myrtle Edmond and Madge Jentry. ing him out of media appearances and man- owners to request a free review required by a As historical societies go, the Pushmataha agement decisions while using his name to settlement last year between federal bank County Historical Society is relatively new, market the group. regulators and 14 mortgage servicers and having been founded in 1984. But the Soci- Armey appeared out of touch and unsure of their affiliates. The deadline has been ex- ety’s staff and volunteers know their town, its how FreedomWorks operated when he took tended three times due to poor response from history, its people, and their place firmly root- over that Tuesday morning, according to homeowners. interviews with more than a dozen employ- ed in the heart of America. ees on both sides who witnessed the take- More than 4 million notices were mailed a My family hails from the Antlers, Oklahoma, over. Sitting in a glass-walled conference year ago informing homeowners of their area. When I was a young boy, I would travel room visible to much of the staff, he placed right to a review, but only 356,000 had asked by train, arriving and departing from the Frisco three young female employees on adminis- for one by Dec. 13, according to the Office of the Comptroller of the Currency. Depot, which now houses the Pushmataha trative leave, then reversed himself when County Historical Society. Myrtle Edmond and they burst into tears; his wife lamented Compensation could range from hundreds Madge Jentry were at the Society head- of dollars to more than $100,000, the OCC has aloud that maybe they had ‘‘jumped the quarters when my wife, Janice, and I stopped gun.’’ said. It is overseeing the settlement with the In subsequent meetings, Susan Armey Federal Reserve. by on a recent trip and asked a few questions about my ancestors. Myrtle and Madge re- passed her husband notes that several em- Requests must be submitted at ployees assumed contained suggestions on independentforeclosurereview.com or be sponded by enthusiastically researching every- what to say. According to a recording of a postmarked no later than Monday, the OCC thing they could find on the Gallegly and Wil- staff conference call provided to The Wash- says. Answers to questions can be found on liams family branches. Myrtle even wrote ington Post, Armey bewildered his audience the website or by calling 888–952–9105. down, by hand, all their research in great de- by demanding more FreedomWorks support tail and gave it to me. for Todd Akin, the Missouri Republican ‘‘The (response) numbers are not terribly impressive,’’ says Bruce Mirken of the In addition, Myrtle had previously served on whose Senate campaign had already cratered the society’s cemetery identification project after his comments about ‘‘legitimate rape.’’ Greenlining Institute, a consumer advocacy ‘‘It was clear that under Armey’s leader- group. and helped identify and inventory almost ship, the organization as we knew it was Greenlining, like other consumer groups, 12,000 burials and grave sites at approxi- going to be driven into the ground,’’ said one says borrowers may still not be aware of the mately 119 locations. With that information, junior employee. review opportunity. she was able to locate the gravesites of my Enter Stephenson, who agreed to the mul- Notification materials—including the 4 grandparents and many other relatives. timillion-dollar financial incentive to push million letters—may have been ignored be- The wealth of information Myrtle and Madge Armey out and install Kibbe back at the cause they were written in legal jargon, were were able to provide on my family is even helm. hard to read and looked too much like those more impressive when one considers that the The payments were necessary, several used in foreclosure scams, says James Can, a county courthouse burned during the Great FreedomWorks leaders said, because Armey senior policy fellow with the Opportunity Depression. Society volunteers have painstak- was threatening to sue over Kibbe’s book Agenda, a non-partisan think tank. A Gov- deal. ingly rebuilt ancestral records from U.S. Cen- ernment Accountability Office report in sus, newspapers, and other items in the his- ‘‘It was very clear to him that I would not June echoed those concerns. work with Matt,’’ Armey said, referring to torical record. Stephenson. ‘‘He felt that Matt knew the le- The settlement followed a federal probe in Mr. Speaker, Antlers, Oklahoma, is America. vers and understood it better than I did and which regulators found significant weak- It has seen its share of hardship yet continues was very urgent to reinstate that.’’ nesses in foreclosure processes, including im- to bounce back. One of the most devastating proper foreclosure document preparation. Brandon, back in the No. 2 spot as execu- tornadoes in the history of the state struck tive vice president, scoffed at the notion that To meet regulators’ deadlines, the GAO Antlers on April 12, 1945. Out of a population the group is in trouble or that the dispute noted that servicers had just 60 days to de- of 3,000, 55 were killed, including my uncle, with Armey was indicative of a larger prob- velop outreach materials. That didn’t leave lem for the tea party. He said Freedom time to test them with focus groups, one Dennis Dixon Gallegly. One third of the city Works has 2.1 million members, nearly 4 mil- servicer representative told the GAO. was demolished. The city has suffered dev- lion fans on Facebook and a budget that has astating fires. Floods have washed away About 95% of the letters were successfully grown sixfold in five years. He also pointed delivered, the OCC has said. homes, but they can’t wash away Antlers, or to the elections of Senate conservatives Ted the spirit of its people. Cruz in Texas and Jeff Flake in Arizona as The reviews are intended to address a wide Mr. Speaker, the pride Myrtle Edmond and evidence of the group’s electoral success. range of foreclosure errors, including exces- sive fees, wrongly denied loan modifications, Madge Jentry have in their community and in ‘‘We doubled our budget, and we doubled America was evidenced in their enthusiastic our membership,’’ Brandon said, referring to misapplied payments or wrongful fore- the group’s growth since 2011. ‘‘That’s how closures. Borrower restitution will vary by research of my family’s roots. I know my col- we ended up the year.’’ case and financial harm, the OCC says. It’s leagues join Janice and me in thanking them provided no cost estimate to servicers. No (Alice R. Crites contributed to this report) and all the Pushmataha County Historical So- one has yet received restitution, OCC spokes- ciety volunteers for preserving and celebrating man William Grassano says. their part of our nation’s history through dedi- f The requested reviews are in addition to cation, passion, and professionalism. They are MILLIONS FORGO FORECLOSURE 159,000 reviews being done, as part of the preserving the heart of America. same settlement, by consultants hired by the REVIEWS f servicers, Grassano says. The Monday deadline should be lifted and THE PARK SCHOOL CENTENNIAL HON. MARCY KAPTUR review requests should be allowed as needed, OF OHIO the community groups say, especially since HON. KATHLEEN C. HOCHUL IN THE HOUSE OF REPRESENTATIVES more recent outreach efforts have been more OF NEW YORK consumer friendly. Monday, December 31, 2012 IN THE HOUSE OF REPRESENTATIVES The reviews are separate from a $25 billion Monday, December 31, 2012 Ms. KAPTUR. Mr. Speaker, this is the arti- settlement, reached between five servicers cle I referred to in my one-minute speech this and, state and federal officials, that’s also Ms. HOCHUL. Mr. Speaker, it is my honor morning. meant to address past foreclosure abuses. to congratulate The Park School of Buffalo on

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