Kim Holland Attacker Jim Cardle Identified As Key Player In Texas House Speaker Controversy

James Cardle (left), the controversial Texas Republican implicated in a secret group that sought to defeat Oklahoma Insurance Commissioner Kim Holland in 2006, has been placed in the center of a raging controversy in which Texas House Speaker Tom Craddick is accused of illegally channeling $150,000 to fellow legislators to secure his reelection as speaker.

Prosecutors in Travis County are reviewing the complaint, which contends that Craddick illegally channeled $150,000 to Democrat legislators to boost his bid to return as House leader.

On Jan. 10, Craddick revitalized an almost dormant political committee, Texans for Jobs & Opportunity Build a Secure Future, with a $250,000 donation from his campaign account, according to public documents.

It was the only money the political committee had when it made $50,000 donations the next day to Democratic Reps. Aaron Peña of Edinburg, Kino Flores of Palmview and Kevin Bailey of Houston, according to campaign finance reports cited in a complaint filed Monday. The three are past supporters of Craddick and are facing challenges from within their party. A fourth Democrat, Dawnna Dukes of Austin, turned down the money.

Monday's complaint, filed by a campaign finance watchdog group, comes in the middle of a heated campaign against Craddick's re-election as speaker and raises questions about what has become a common practice: speakers donating campaign cash indirectly to fellow lawmakers.

Craig McDonald of Texans for Public Justice filed the complaint with Travis County District Attorney Ronnie Earle. It is the same group that complained to Earle four years ago about then-U.S. House Majority Leader Tom DeLay, who is awaiting trial on money laundering charges brought by Earle.

"Texas law is clear: You can't buy the speaker's gavel by bankrolling the campaigns of House candidates," McDonald said Monday. "Nor can you make a political contribution under someone else's name. It's hard to argue that the Texas Jobs PAC didn't launder Craddick's money. By its own accounting, it didn't have another cent to its name."

Austin lawyer Roy Minton, who represents Craddick, said McDonald's letter wrongly assumes that Craddick told the political committee which lawmakers to support. He said Craddick's $250,000 donation to the committee and that group's subsequent support of the Democrats were unrelated transactions.

"I honest to God don't think there was any kind of wink of the eye or an understanding," Minton said.

The Austin American-Statesman reported today that James ("Jim") Cardle, a key member of the political committee, is an activist associated with several conservative organizations. He did not return phone calls to comment on why the committee supported three Democrats. But it's hardly a state secret that Craddick has offset defections by Republicans with support from among a handful of Democrats.

Cardle was identified by The McCarville Report Online in 2006 as the man in charge of the secret, Austin-based group "Just The Facts America" that sought to defeat Holland through a website and series of negative television commercials.

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Stephen Jones Defends Texas-Based 'Just The Facts America,' Says Controversial Entity Is His Client

Enid attorney Stephen Jones (pictured at right), in a letter to The McCarville Report Online, confirms that the secretive Texas-based "Just The Facts America" is his client and he defends it, writing, "my client acted fully within the law."

Jones responded to repeated mentions here of the group, headed by Texas Republican leader James B. "Jim" Cardle (pictured below left) of Austin, and continuing questions about its actions in launching an effort to defeat Democrat Insurance Commissioner Kim Holland last year.

The group erupted on the Oklahoma political scene when it placed tens of thousands of dollars in television commercials attacking Holland, who defeated Republican Bill Case in November. The group also created a website attacking Holland. Jones and associates donated thousands to the Case campaign.

There had been questions about the group and why its donors had not been revealed. Oklahoma Ethics Commission director Marilyn Hughes and Attorney General Drew Edmondson had both said they believe the group was required to reveal its donors and register with the commission. Jones said they were "mistaken."

"There was no legal obligation then or now to register unless the decision of the (U. S. District) Court is reversed by the (U. S.) Supreme Court," he wrote. He noted that the U. S. District Court for the District of Columbia had ruled "that the federal statute, unlike the Oklahoma Statute, did affirmatively require 501(c)(3), (4) and (6) organizations to reveal their donors when engaged in campaign communication was unconstitutional as a violation of the First Amendment."

Jones continues to disagree with the assertion the group is "mysterious." He wrote, "It is no more mysterious than any other...organization whose donors are protected by law from disclosure. Its officers and purposes are well known."

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Jones Says Donations Legitimate

Enid attorney Stephen Jones said a published report in The Oklahoman suggesting he tried to buy an Oklahoma County judge’s race is incorrect. He told the Enid News & Eagle he made contributions to several friends who were running for office this year.

In published reports, former Oklahoma County District Judge Susan Caswell claims Jones illegally provided large donations that helped Bill Graves defeat her in the November election. (Editor's Note: Caswell made no such claim; she is quoted as saying she's perplexed by the interest of out-of-county interests in her campaign.)

The donations reportedly are under investigation by the Oklahoma Attorney General’s Office and the state Ethics Commission. Jones said he has not been contacted by anyone regarding the investigation except the media. Jones himself is not listed as a contributor, but his wife, Sherrel, and his son and daughter are listed as contributors, along with four attorneys who work in his firm.

Six Texans who reportedly are associated with a client of Jones’, Dallas businessman Gene Phillips, also made contributions to Graves. Graves reported receiving nearly $60,000 from those sources, according to the published report.

The investigation centers on whether the donations were illegal, and Jones maintains they are not.

“I know what the law is. I’m lawyered up on the subject. They aren’t against the law. Anybody who knows what the law is, knows the story is incorrect,” Jones said.

Jones said Caswell is disappointed she lost the election. He said Bill Graves has been a family friend for 30 years. Jones has helped a number of family friends who have run for office. He is a member of the Oklahoma Republican State Finance Committee, and it is part of his job to raise money for Re-publican candidates.

“His race is not the only one I’m interested in. I was involved in about 60 races,” he said.

Jones and his wife, Sherrel, also contributed $2,500 each to the campaign of Dennis Hladik, who was elected to a Garfield County district judgeship. Jones family members also were regular large contributors on the federal level. In 2006, Sherrel Jones and Stephen Jones are listed as donating $10,000 to the Oklahoma Leadership Council. Jones also contributed $5,000 to the Cole PAC, and he and Sherrel both donated $2,100 each to Mary Fallin’s congressional campaign.

He said he also contributed to judicial candidates in Dallas County, Texas, whom he thought were outstanding. He also contributed to friends across the state.“This seemed to be a year where a lot of my friends were running,” he said.

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Attorney General, Ethics Commission Investigating Donors Linked To Enid Attorney Stephen Jones

Attorney General Drew Edmondson and the Oklahoma Ethics Commission are investigating donations made by associates of Enid attorney Stephen Jones to Oklahoma County District Judge Bill Graves, The Oklahoman reports.

Fourteen donors tied to Jones directly or indirectly gave Graves, a former State House member, more than $57,000.

Bartlesville elementary school counselor Terry Gann (Holmes), represented by Stephen Jones in a contentious Garfield County divorce case, gave $5,000 to Graves and $5,000 to Bill Case, GOP candidate for insurance commissioner. She did not respond to an inquiry about her donations by The McCarville Report Online and told reporter Clay to "contact my lawyer." She's among more than a dozen individuals associated with Jones who donated to Graves and Case.

Donors tied to Jones also gave an equally-huge sum to Republican Bill Case, who tried to defeat Democrat Kim Holland for insurance commissioner.

Reporter Nolan Clay of The Oklahoman writes, "State investigators are looking into whether a judicial race was bought...."

Clay reported, "Most of the donors declined comment or did not respond to requests for comments." None of the 14 donors connected to Jones live in Oklahoma County.

Graves (at left) told Clay, "He (Jones) would not do that sort of thing (make donations in the names of others). He's been a friend for a long time. He's helped me in past campaigns."

Former Judge Susan Caswell, defeated by Graves, said, "I don't understand why anybody from out of state or even out of this county would have an interest in a local judge race. It makes no sense to me."

Curiosity about the donations to Graves and Case from Jones family members and associates began following reports by TMRO and others last fall. The decision to open an investigation apparently came when officials noted some of the same donors gave to the Graves and Case campaigns, and the fact they gave the maximum allowed under law, $5,000.

Donors to Graves include Jones' son and daughter. They also include six Texans connected to Dallas businessman Gene Phillips, a Jones client. Clay reports that a former employee of Jones, Daniel Rath, was approached by investigators on November 1st, and asked about Jones, Phillips, and former Insurance Commissioner Carroll Fisher.

Through one of his law firm associates, Jones was tied to attacks on incumbent Insurance Commissioner Kim Holland by a secret Texas group, "Just The Facts America" headed by GOP activist Jim Cardle of Austin. The activities of that group remain under scrutiny by some, TMRO has been told. A new state multicounty grand jury headed by Edmondson is scheduled to convene later this month.

To access TMRO's stories about Jones last fall, just click on Jones' name in the labels list.

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Controversial Americans For Job Security President Placed 'She' Anti-Holland Commercials; Document Shows He's Advertising Agency 'Partner'

(From this week's Archives 10/26/06) The president of the controversial Americans For Job Security, Mike Dubke, has been indentified by The McCarville Report Online as the man leading the $250,000 attack on State Insurance Commissioner Kim Holland.

TMRO learned that the television commercials attacking Holland were placed by Dubke, a conservative Republican power broker who routinely launches attacks on Democrats, and sometimes moderate Republicans, in election years from his suburban Washington office in Olde Town Alexandria, Virginia.

The commercials were placed through Crossroads Media, located at the same address as AJS. Dubke, over the last five years operating as an advertising agency, has placed attack radio and television commercials in races all over the country. He has been investigated, threatened and described as a "political jackal" because he represents groups that don't disclose the sources of their money. He says that is deliberate, because keeping the sources secret means the debate is on his targets rather than his donors.

AJS is located in Suite 555 at 66 Canal Center Plaza in Alexandria, VA. Crossroads Media, listed in Oklahoma television station documents as the agency on the anti-Holland commercials, is located in Suite 555 at 66 Canal Center Plaza in Alexandria, VA. A Federal Election Commission document located by TMRO lists Dubke as "Crossroads Media/Partner."

The television commercial attacking Holland contains a "header" that viewers do not see; the header TMRO obtained confirms the run time, client, code and content name of the commercial for the television station's sales department and producers who ensure it airs at the proper time. The header on the Holland attack commercial reads: "Client: JTFA - Title: SHE - 10.12.06 - Code: JTFA101206."

AJS was formed, as previously reported by TMRO, with a $1 million donation from the American Insurance Association, now headed by former Montana Governor Marc Racicot. Here's what the site "Direct Democracy" reported about AJS: "And where does AJS money come from? We don't really know, though there are hints. AJS began with a $1 million donation from the American Insurance Industry." Here's what opensecrets.org reports about the group: "AJS has been closely linked with the insurance and health care industries."

Also associated with AJS, and a longtime personal and professional associate of Racicot, is influential Washington attorney Benjamin L. Ginsberg of Patton Boggs; Ginsberg wrote letters in the Holland controversy to Oklahoma television stations and to the executive editor of The Oklahoman, who had protested the use of the newspaper's stories and headlines in the Holland attack commercial.

AJS is among many organizations that operate in secret; those who give it money are not publicly disclosed. It's the same with the front group attacking Holland, "Just The Facts America," an entity formed in Austin, Texas, by Republican activist James B. Cardle just 36 hours before the Holland attack was launched. JTFA, formed as a non-profit, 501(c)(6) organization, does not have to disclose the sources of its funding. Thus far, TMRO has been able to estimate, the group has spent about $175,000 to defeat Holland and likely will spend $250,000 by election day.

AJS was identified earlier this election year as the source of robo calls attacking Republican congressional candidates Denise Bode and Mary Fallin. Ironically, Fallin's own survey research firm, The Tarrance Group, was affiliated with AJS as recently as the last election cycle.

AJS has been described by many publications. The Texas Observer, following a contentious election in Texas two years ago, wrote this: "'We don’t know who is funding [Americans for Job Security],' notes Fred Lewis of Campaigns for People. 'Is it Chinese businessmen who want to outsource jobs to China? Here is the reason that disclosure is so important: The public is entitled to know if AJS is just a bunch of insurance companies.'

"Dubke understands that keeping the membership of AJS secret will be viewed as suspect. The group does it, he contends, to prevent the media, or voters for that matter, from making the messenger the message.

"'We figured we would take that knock and that’s a knock that we are willing to take,' he says. 'We feel that the fact that our issues are being spoken about, more so than one or two members, is much more important.' The calculation is an understandable one. No one has been willing to hound AJS for its work on behalf of faceless special interests in the systematic and sustained way AJS attacks candidates. It’s too bad, since if ever there was a case where the messenger is the message, this is it."

The involvement of AJS in Texas politics, attacking Republicans as well as Democrats, once prompted Travis County District Attorney Ronnie Earle to investigate, but it apparently was determined the group operated within the limits of the law, if not within what some consider political propriety.

Washington Monthly's Nicholas Confessore has studied AJS and similar groups and in a lengthy profile, wrote this: "...Americans for Job Security (is) located in a tidy brick building on the northern border of Alexandria's new white-collar sprawl. 'It's so much cheaper out here than being downtown,' says AJS's president, Michael Dubke, as he greets me at the front door and leads me into a nondescript conference room. Like many of its neighbors, AJS is organized as a 501(c)(6), which is to say a not-for-profit 'business league' or trade organization. But as trade organizations go, it is rather unusual. Not only is the group's membership--several hundred individuals, corporations, and other trade organizations--secret, but by all appearances, the members don't share a particular line of business. Despite a budget of millions of dollars a year, AJS doesn't have the kind of public relations or policy staff that, say, the Chamber of Commerce does. In fact, Dubke, a cheerful, clean-cut 33-year-old with the rangy build of an ex-jock, is AJS's sole employee. The group has no Web site, puts out no policy briefs or press releases, and does no lobbying on the Hill.

"About the only thing that AJS does is buy television, radio, and newspaper advertisements--lots of them. This is a source of pride for Dubke. 'Ninety-five percent of the money that we take in membership [dues] is spent on our grassroots lobbying,' he tells me, like a discount carpet salesman bragging about his low overhead. 'We spend our money on product.'

"During the hotly contested 2000 race, widely regarded as a watershed election for issue advertising, AJS spent about $9 million on political ads. A chunk of the money went towards attacking Democratic presidential candidate Al Gore for his prescription-drug plan, with ads airing in such key media markets as Spokane, Wash., and Tampa, Fla. (All told, according to a study by the Brennan Center, AJS was the most active outside group supporting Bush in 2000.)

"But AJS didn't stick to the presidential race. It also spent millions of dollars on behalf of Republican candidates in closely-fought Senate races in Michigan, Nebraska, and Washington. During the midterm elections two years later, with Democratic control of the Senate at stake, AJS dumped another $7 million into advertising, again mostly in key races, notably Minnesota's.

"Traditional 501(c) groups run ads on a narrow set of issues important to their members. This year, for instance, the NRA might run ads attacking candidates who support extending the ban on assault weapons, while the Sierra Club might air spots against candidates who support drilling in the Arctic National Wildlife Refuge. AJS, by contrast, is more catholic in its interests. During the last two election cycles, the group's campaign ads have addressed taxes, education, tort reform, prescription drugs, immigration, dam removal in the Pacific Northwest, even federal regulation of drinking water--'basically anything we label a 'pro-paycheck' message,' Dubke remarks.

"Much like a political party, AJS only seems to lurch into action at election time, even if one of its many core issues is being debated in Congress at some other time. Traditional Washington trade associations expend most of their resources trying to affect the legislative process, but Dubke sees this as a waste of time. 'Our main purpose is to get these public policy issues out into the debate,' he told me. 'I have yet to have somebody tell me when is a better time to talk about public policy issues' than during campaign season.

"Aside from timing, about the only thing AJS's ads have in common is that nearly all of them attack Democrats, usually those in tight races.

"And although groups running 'issue ads' are not supposed to coordinate with candidates, in at least some cases AJS appeared to do just that. During 2000, for example, AJS launched a massive ad campaign in support of embattled incumbent Sen. Spencer Abraham (R-Mich.). As Newsweek reported that year, funding for the ads came from the tech industry, which cut checks to AJS at the request of then-Senate Majority Leader, Trent Lott (R-Miss.), Abraham's mentor. In 2002, the group ran ads in Alaska, where incumbent Republican Sen. Frank Murkowski was in a tight race with the state's Democratic lieutenant governor. According to published reports at the time, AJS's ads followed a conference with Murkowksi's political consultant and used the same themes that Murkowski's own campaign was employing."

There are indications today that the actitivies of AJS may, once again, call attention to its 501(c)(6) status with the Internal Revenue Service. TMRO is told that two attorneys are examining its role in Oklahoma politics this year. The section of the IRS code that deals with such "business leagues" gives them tax-exempt status and allows dues as tax-deductible business expenses, "but not the portion of dues that the business league uses for lobbying and political purposes," Public Citizen's Congress Watch reported. "...they may not be primarily engaged in efforts to affect the outcomes of elections," it states. AJS has been cited by a New Stealth PACs study as among those groups that "may have violated the terms of their 501(c) status." That statement is based on the study's conclusion that the group's election-related activities raised questions "as to whether they violated the terms of their tax status."

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JTFA Attorney Tied To American Insurance Association President, Americans For Job Security

A Special Report By Mike McCarville ~ Washington attorney Benjamin L. Ginsberg's role as legal counsel for the mysterious Texas group "Just The Facts America" indicates JTFA's backers are among the nation's foremost Republican high rollers, and our inquiries show a surprising connection to a second group that's been involved in Oklahoma politics this year. Ginsberg also played a role in the controversial "Swift Boat Veterans For Truth" effort in the 2004 presidential election, a connection certain to be noted by Democrats, and, via other another connection we found, has a long-standing, personal, professional and direct connection to the president of the American Insurance Association.

First, the JTFA: It is the group behind the joint Internet-television commercial attack on Oklahoma Insurance Commissioner Kim Holland, a Democrat appointed by Governor Brad Henry and facing her first election campaign. JTFA's front man is Texas Republican James B. Cardle, a member of Texas Governor Rick's Perry's campaign steering committee and member of a health care services study in Texas five years ago. The attack includes allegations that Holland's taking donations from those in the insurance industry she regulates (true, her Oklahoma Ethics Commission reports show), that she's had herself reimbursed for mileage on her personal vehicle (apparently true, based on Office of State Finance documents, the argument being that she was fulfilling her duties on the trips), that she's used her staff to campaign on state time (this allegation is contained in a tort claim filed by her former executive administrative assistant earlier this month) and that she doesn't meet the educational level required for many OID employees (she's a high school graduate, while some OID positions require a college degree).

That JTFA is well-funded is obvious; records at Oklahoma television stations show the initial television commercial buy was about $150,000. Sources with whom TMRO talked say they expect the total expenditure will top $250,000 before the attacks are over. Because JTFA filed in Texas as a non-profit organization just 36 hours before the attack began, it is not required to disclose the names of those who are members, or the source of the group's funding. Thus, it is a secret entity.

Attorney General Drew Edmondson criticized the group, saying it has provided "no information as to who is paying the bills. The public has a right to know what interests in Texas want to elect a new insurance commissioner. Everyone has a constitutional right to free speech, but we have a right to pull them out of the darkness and into the sunshine of public disclosure."

Ginsberg's involvement in the controversy, revealed when he fired off letters to Oklahoma television stations and to the executive editor of The Oklahoman, Sue Hale, tweaked The McCarville Report Online's curiosity; Ginsberg is among Washington's most expensive, well-connected and influential lawyers. What's his interest in the Oklahoma insurance commissioner's race? we wondered.

Our search for information about Ginsberg's role in JTFA turned up a second connection to Oklahoma politics, a fresh one involving those controversial "robo-calls" in the Republican primary for Congress in the 5th District. And a third one that may tie directly to the attacks on Holland.

We've known of Ginsberg for years; he's a legal icon in Republican circles. One Washington consultant, asked about Ginsberg, said that retaining him requires "deep pockets and even deeper connections." And he warned: "Be careful. He's not some Oklahoma rube attorney."

From Wikipedia: "Benjamin L. Ginsberg, partner for Patton Boggs, LLP, represents numerous political parties, political campaigns, candidates, members of Congress and state legislatures, Governors, corporations, trade associations, vendors, donors and individuals participating in the political process.

"In the 2004 and 2000 election cycles, Ginsberg served as National Counsel to the Bush-Cheney presidential campaign. In 2000, he played a central role in the Florida recount. He also represents the campaigns and leadership PACs of numerous members of the Senate and House, as well as the Republican National Committee, National Republican Senatorial Committee and National Republican Congressional Committee. He serves as counsel to the Republican Governors Association and has wide experience on the state legislative level from directing Republican redistricting efforts nationwide following the 1990 Census and being actively engaged in the 2001-2002 round of redistricting.

"In 2004, Ginsberg gave legal advice to the famed 527 group Swift Boat Veterans for Truth. Though his simultaneous activities with the 'Swifties' and the 2004 Bush Campaign could be considered questionable, his activities were not illegal. Nonetheless, Ginsberg resigned as legal counsel from the Bush Campaign after his position was made public.

"He came to Patton Boggs in 1993 after serving for eight years as counsel to the Republican National Committee, the National Republican Senatorial Committee, and the National Republican Congressional Committee. Prior to entering law school, he spent five years as a newspaper reporter for The Boston Globe, Philadelphia Evening Bulletin, The Berkshire (Mass.) Eagle, and The Riverside (Calif.) Press-Enterprise.

"Ginsberg appears frequently on television commenting on law and politics. He is currently a Fellow at the Institute of Politics, Kennedy School of Government, Harvard University.
He is well-known as having been a significant force behind the Republican Party's efforts to redistrict state congressional districts in favor of Republican candidates. Ginsberg has lovingly named his dog Gerrymander.

"Ginsberg is a 1974 graduate of the University of Pennsylvania. At Penn, he was very involved in the school's prestigious newspaper, The Daily Pennsylvanian, where he served as a reporter (1970-72), contributing editor (1972) and editor-in-chief (1973)."

Second, Americans For Job Security: Among Ginsberg's numerous connections is a tie to the group "Americans For Job Security." Remember that during the GOP 5th District primary, "robo-calls" from AJS were placed that attacked Corporation Commissioner Denise Bode and Lt. Governor Mary Fallin. The other four candidates in the primary race weren't mentioned, fueling speculation that one of them was behind the calls. The other candidates were State Rep. Kevin Calvey, Oklahoma City Mayor Mick Cornett, State Rep. Fred Morgan and Dr. Johnny Roy; most of the finger-pointing was aimed at Cornett, who disavowed any knowledge of the calls. Here's what The Hill in Washington reported about the controversy: "The race could also be colored by an investigation into potentially illegal prerecorded telephone messages attacking Fallin and Bode that were placed earlier this week. State Attorney General Drew Edmondson issued a release Tuesday saying the calls might have broken the law because they didn't give recipients a contact phone number for the organization placing them, Americans for Job Security, which is based in Alexandria, Va. The release said the calls might violate the Telephone Consumer Protection Act and could lead to action in criminal or civil court. Americans for Job Security is a nonprofit issue-advocacy group and is exempt from the TCPA. Reached by The Hill yesterday, President Michael Dubke said the attorney general's office told him it was not investigating his organization but instead making sure one of the other candidates wasn't behind the calls. Dubke said the attorney general's office told him one of the candidates had done prerecorded calls incorrectly in the past, and he got the impression the office was making sure that candidate wasn't responsible for the calls. Dubke said only Americans for Job Security paid for the calls."

Third, the American Insurance Association: Americans For Job Security was founded with a $1 million donation from the American Insurance Association, records located by The McCarville Report Online show. Like JTFA, AJS takes great pains to hide the names of its donors and the sums they provide. Here's what the Campaign Finance Institute reports about AJS: "Americans for Job Security, a 501 (c)(6) trade association, grew out of the Coalition, a loose confederation of business groups that ran issue ads in 1996 to oppose the AFL-CIO's $35 million campaign. After the Coalition split in 1997 over a dispute over strategy, Robert Vagley, president of the American Insurance Association (AIA), formed Americans for Job Security. The AIA contributed $1 million to found AJS; the American Forest and Paper Association also gave $1 million. David Carney, onetime political director in the Bush White House, serves as executive director of AJS. Michael Dubke, former head of the Ripon Society, is the president of AJS. Benjamin Ginsberg, counsel to AJS, was also counsel to George W. Bush's presidential campaign. Others associated with AJS include Republican consultant Eddie Mahe and Leigh Ann Pusey, a former aide to Newt Gingrich, who now serves as AIA's chief lobbyist."

The Texas Observer, writing about the veto of bills by Governor Rick Perry in 2001, took note of the interest of AJS officials in insurance legislation: "David Carney (also a consultant to Perry's campaign), the former political director of the first Bush White House, now heads Americans for Job Security. Robert Vagley, president of the Washington-based American Insurance Association, formed the group in 1998, to counter the influence of increased labor spending in Congressional elections. The group specializes in issue ads, spending $10-12 million in 2000 to take issues like 'regulatory reform' straight to the public. Benjamin Ginsberg, an attorney with George W. Bush's presidential campaign, is also affiliated with the group. Also killed in the so-called 'Father's Day Massacre' veto bash was another insurance reform, HB 2430, which would have funded an ombudsman position to help Texans navigate the complex health care system and protect their rights. Bill sponsor Elliott Naishtat summed up the fate of the bill, which had broad bi-partisan support, in one line: 'The insurance industry didn't like it.'"

There's more about that "Father's Day Massacre" on June 17, 2001, when Perry veoted 78 bills. Here's the analysis of the Austin Chronicle on two bills the insurance industry opposed and Perry vetoed: "HB 1862: Prompt Payment for Health Care Providers - This veto pissed off doctors, now at the mercy of HMOs for timely reimbursements under multiple and confusing rules. The gov complained that the bill would allow doctors to sue insurers rather than using binding arbitration -- where the insurers always win. Translation: the insurance lobby owns the gov. HB 2430: Insurance Ombudsman's Program - Another Naishtat bill, developed over many months with input from across the board, created a fledgling program to help consumers navigate insurance problems with state help. Perry said he vetoed it because it was 'insufficiently funded' -- but that principle would end every state program except corporate welfare. This looks like a vindictive chop with a clumsy ax. Fingerprints: the insurance lobby."

At the time Ginsberg was legal counsel to the Bush-Cheney '04 campaign, its chairman and his obvious associate was former Montana Governor Marc Racicot, who served from 1993 to 2001. He previously served as the state's attorney general. Racicot was chairman of the Republican National Committee from January 2002 to July 2003. In 2000, Bush rushed Racicot into Florida to take charge of his vote recount effort; the attorney he worked with: Ginsberg. In 2004, when Ginsberg resigned as legal counsel to the Bush-Cheney campaign after his connection to the Swift Boat Veterans for Truth was revealed, Racicot released a statement calling Ginsberg a "friend, public servant and statesman."

Today, Racicot is president of the American Insurance Association.

The registered lobbyist in Oklahoma for the American Insurance Association is attorney Justin Whitefield, listed as "Of Counsel" to former Attorney General Larry Derryberry's law firm. Whitefield's firm, his lobbyist registration on file with the Oklahoma Ethics Commission shows, is Capital Resource Group, located at the same address as Democrat Derryberry's law firm on North Lincoln. Whitefield also was a partner with prominent Republican Bob Funk (founder of Express Personnel Services) in the purchase of a $450,000 yearling horse earlier this year and of two other horses for $600,000, auction results posted by the 2006 Keeneland September Yearling Sale and the 2006 Fasig-Tipton Selected Yearling Sale show.

Another interesting twist is that the national survey research firm shown as working for AJS in 2004 is the Tarrance Group, the same firm that now polls for Fallin in Oklahoma. Thus, the incongruity of AJS attacking Fallin, the client of a polling firm it has used.

Ginsberg did not respond to our earlier questions about JTFA; thus ignored, we didn't ask for his comments for this story.

Sources used in preparing this report included, but were not limited to: Wikipedia, stealthpacs.org, Campaign Finance Institute, The Washington Post, PattonBoggs.com, The Hill, Congressional Quarterly, opensecrets.com, Public Citizen, Americans For Job Security, Oklahoma Office of State Finance, Oklahoma Insurance Department, Oklahoma Ethics Commission, Human Events, Texans For Public Justice, Wall Street Journal, Omaha World-Herald, bloodhorse.com, warandpiece.com, American Insurance Association, kmax.blogspot.com, answers.com, New York Times, The Nation, Texas Observer, counterpunch.org, Detroit News, San Diego Union-Tribune, Austin Chronicle, martindale.com, findlaw.com, sourcewatch.org, Newsweek, and itaa.org, plus confidential conversations with U, V, W, X, Y and Z located in Alexandria (VA), Austin (TX), Oklahoma City, Potomoc (MD) and Washington.

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Who Is Jim Cardle And Why Does He Want To Defeat Kim Holland? Many Questions, Few Answers

A Special Report By Mike McCarville ~ Who is Texan James B. Cardle and why does the conservative Republican activist want to defeat Oklahoma Insurance Commissioner Kim Holland? And what's the source of the $150,000 spent thus far on television commercials that attack Holland without naming her?

"These ads are not being run by Holland's opponent," Attorney General Drew Edmondson said Thursday. "They come from some organization in Texas with no filings with the Ethics Commission and no information as to who is paying for the ads. The public has a right to know what interests in Texas want Oklahoma to elect a different insurance commissioner. Everyone has a constitutional right to free speech, but we have a right to pull them out of the darkness and into the sunshine of public disclosure."

Edmondson said the commercial is "clearly electioneering and in violation of (the) rules."

UPDATE: As of mid-afternoon Friday, the Texas Secretary of State's office shows Just The Facts America was formed on October 11th, about 36 hours before the attack commercials began to appear in Oklahoma.

The questions about the mysterious Texans have hung on the line like a wet blanket since late last Friday, when Cardle's heretofore-unknown "Just The Facts America" launched a joint Internet-television commercial blitz designed to defeat Holland in the November 7th election. JTFA, as the group is called by its Washington attorney Benjamin L. Ginsberg of Patton Boggs, is located, its initial news release said, at 815A Brazos, #417, Austin. Nothing was known here about Cardle, or JTFA, when the controversy erupted.

That Cardle's a Republican mover-and-shaker and Holland is a Democrat seems way short of being the answer to the basic question of why Cardle and JTFA wants to send her packing and have spent at least $150,000 (the initial tv buy) thus far to try to do it. And forget, The McCarville Report Online is told, that Cardle's association with former Oklahoma U. S. Senator Don Nickles could be the answer. (That's Cardle on the right in the photo above showing Nickles after he spoke to Cardle's Austin Economic Council last year.)

A prominent Republican insider, asked why Cardle is after Holland, replied, "She just pissed off the wrong people." That cryptic response, coupled with no additional information, simply increased TMRO's curiosity and launched us on a six-day search for information.

Research by The McCarville Report Online shows that Cardle is involved in numerous groups and apparently is one of the owners of Texas Insider, a state political online newsletter; he was a founder of its predecessor, Texas Digest. He is the co-founder and chairman of the Austin Economic Council, president of the Texas Free Enterprise Fund, heads the Texas Club for Growth and the Lone Star Foundation, and is president of the Texas Citizens Action Network. He is closely allied with the Republican governor of Texas, Rick Perry, and with President George W. Bush. He is listed as the owner of Cardle Consulting & Development Solutions and has a string of connections to nationally-known Republicans, both operatives and elected officials.

As with many things political, especially involving political attacks where attempts are made to keep the source of the attack funding secret as in this case, accurate information is hard to come by. Two State Capitol reporters in Austin told The McCarville Report Online they've never heard of Just The Facts America, but they are familiar with Cardle. One described Cardle as "a smoke-and-mirrors political guy."

We first tried going directly to Cardle in Austin, sending an email and calling. Two days after our inquiries, we've had no response from him. Next, we went to JTFA attorney Ginsberg, posing several questions about Cardle's interest in an Oklahoma political race, the sources of funding for JTFA, and Cardle's relationship to another prominent Texan. We asked Ginsberg, via email Wednesday afternoon, "1) What is the particular interest of 'Just The Facts America' in the post of insurance commissioner in the State of Oklahoma? In short...why is this entity funding this effort? 2) What entity, entities or individuals have provided funding to 'Just The Facts America' to pay the consultants, website developers, television commercial producers and television stations in this effort? 3) What personal, public service association or business relationship, if any, is there between James B. Cardle and (name redacted by TMRO) of Texas? Is (he) associated in any way with 'Just The Facts America'?" Ginsberg had not responded as of Friday morning.

It is Ginsberg's position, as outlined in a letter sent last Friday to Oklahoma television stations, that JTFA, "a Texas-based membership organization, is devoted to maintaining ethics in government, as well as encouraging officeholders to be honest about their motives and political allegiances." A search of Internet sources for JTFA, however, reveals nothing about the entity or its financial supporters or their motives and political allegiances. In short, JTFA seems to exist only in Oklahoma despite its Austin mailing address; perhaps its registration in Texas is so new it hasn't found its way into public records yet. The logical conclusion is that JTFA was created solely to go after Holland.

Oklahoma City communications expert and host of the weekly KWTV-Channel 9 segment "Your Vote Counts" Scott Mitchell, who distributed JTFA's news release last Friday, told TMRO early this week he knows little about the group and simply is acting as a facilitator, the local contact, and is not an advocate. We asked Mitchell, via email early Thursday morning, "Who is Jim Cardle? Inquiring minds want to know. And what is his interest in the Oklahoma Insurance Department? How much is being spent on the anti-Holland campaign? From what sources is the money coming to fund the effort?" There has been no response.

A source described JTFA as being "just like a chamber of commerce, with members who contribute" and, he added, the way JTFA is structured (apparently as a non-profit entity), there's no requirement that its membership list, or the sums they give, be publicly disclosed.

In researching Cardle's background and connections, several news reports in Texas were found that mention Cardle's association with a Timothy R. "Tim" Phillips, who is president of the Americans For Prosperity Foundation, a conservative business issues advocacy group that, among other issues it addresses, is opposed to congressional pork barrel projects, or "earmark" spending. Earlier this year, Phillips was in Oklahoma City on that subject (he's shown at right in a television commercial announcing his trip to Oklahoma City) and questioned a federal million dollar earmark for a water taxi in Bricktown. AFPF has offices in numerous states, including Oklahoma's office on Avondale Drive in Nichols Hills.

AFPF's Austin office address, 807 Brazos, No. 210, puts it immediately adjacent to Cardle's JTFA, at 815A Brazos, No. 417, leading to speculation the two are somehow connected. Adding to that perception is an April 28th "coalition" letter from Phillips' AFPF signed by numerous politically-involved Texans including Cardle.

To further the speculation, the Oklahoma representative of Phillips' Americans For Prosperity Foundation is Mike Osburn, who managed then-Senator Nickles' Oklahoma City field office and was his political and policy representative across the state. Contacted by TMRO, Osburn flatly denied any knowledge of a connection between AFPF and JTFA: "I did not help arrange for Sen. Nickles to speak to Jim Cardle's group last year or at anytime," Osburn told us. "I don't know who Jim Cardle is nor do I know with what group he is associated." Asked if he had any involvement in the anti-Holland effort, he replied, "I certainly had no role whatsoever with anything anti-Holland and until reading your email I was unaware that there was anything like that (rumor) out there." Osburn said on Wednesday he would forward our email "to AFPF's national office so that they can maybe provide more insight into some of your questions."

UPDATE: Friday afternoon, a spokeswoman for AFPF at its Washington headquarters said that Phillips and Cardle often are allied on conservative issues. Annie Patnaude said Phillips lives in Georgia. She added, "Mr. Cardle has spoken at some Americans for Prosperity-Texas events as a partner in the fight for lower taxes, less spending, and limited government. Our relationship with Mr. Cardle is that of an ally. Mr. Cardle has been asked to speak at AFP-TX events and sign coalition letters as an ally in the fight for more accountable government."

Whether there's a connection between Cardle and Phillips in JTFA is speculation; we tried to contact both men directly without success. Asked if the two are connected, Patnaude said, "not to my knowledge."

Who is Tim Phillips? The Atlanta Journal-Constitution reported on March 4th, under the headline (Jack) Abramoff and (Ralph) Reed Used (Grover) Norquist To Launder E-Lottery Money, that "Abramoff was lobbying for...eLottery Inc against a bill in Congress that would have banned most online betting. First the money was sent by eLottery to Americans for Tax Reform...headed by Grover Norquist, who knew both Reed and Abramoff. Norquist then wrote a check for $150,000 to a group called Faith and Family Alliance of Virginia Beach. Faith and Family Alliance wrote a check for the same amount to Reed's Century Strategies...One of Faith and Family's founders, Tim Phillips, was a vice president for Century Strategies."

Tim Phillips, one GOP consultant who has known him for years says, came out of Virginia GOP politics and was on the staff of a congressman from that state before hooking up with the controversial Reed, former head of the Christian Coalition, and eventually winding up in Texas.

A Democratic National Committee website mentioning Phillips carried this story: "Reed received $4.2 million from Abramoff's firm for lobbying in Texas in 2001 and 2002 before registering as a lobbyist, a Class A misdemeanor punishable by up to a year in jail and a $4,000 fine. In Texas, his efforts to close one tribe's casino were surreptitiously funded by rival tribes. His firm also received $150,000 from Jack Abramoff's client, eLottery, as part of his effort to kill an anti-gambling bill. (The money was used to attack GOP House members who backed the bill.) Reed rallied the religious community against the casinos and met with state lawmakers to kill a bill that would reopen the Tiguas casino (another Abramoff client), according to his e-mails. Tim Phillips, VP of Ralph Reed's Atlanta-based Century Strategies, and Tim Cox, co-owner with Phillips of the political consulting firm New Dominion Strategies, helped create a supposedly 'non-partisan' tax-exempt organization in Virginia called the Faith and Family Alliance. Robin Vanderwall served as the organization's Executive Director. Robin Vanderwall is now cooperating in the Abramoff investigation. Washington Post quotes (Nov. 3) 'Vanderwall is now serving a seven-year prison term after he was convicted of soliciting sex from a minor on the Internet. In telephone interviews and correspondence from state prison, Vanderwall said the nonprofit group, Faith and Family Alliance, was used as a pass-through to fund Abramoff's campaign against an Internet gambling ban and to attack U.S. House candidate Eric I. Cantor in his 2000 primary race.' Money was sent from a client of Abramoff's to Americans for Tax Reform [Grover Norquist's], which kept a portion. The rest was routed to Faith and Family, records show. Vanderwall then made out a check for the identical amount and sent it to the political consulting firm where Phillips is vice president. That firm was founded by former Christian Coalition director Ralph Reed, an Abramoff friend. The money was meant to attack conservative Republicans who backed the Internet Gambling Prohibition Act, a review of records shows. Four days before Virginia's June 12 GOP primary, the Alliance sent out a mailing attacking congressional candidate Eric I. Cantor to boost the prospects of his opponent State Sen. Stephen H. Martin, who had hired Tim Phillips. Virginia 's Republican attorney general candidate Robert F. McDonnell paid $1,460,133 to Phillips and Cox's firm, New Dominion Strategies. McDonnell also had used Vanderwall as his campaign manager."

So most of the questions about JTFA, its members and thus, the source of the money being poured into the attempt to defeat Holland, remain unanswered. It seems clear that none of those involved want to provide answers.

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