Crossroads GPS to FEC: `Misstatement of Law’ on Disclosure

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Karl Rove before the start of the second day of the Republican National Convention.

Crossroads GPS, the Republican non-profit group that spent more than $70 million in the 2012 election to directly advocate the election or defeat of federal candidates, has again said the Federal Election Commission made a “misstatement of law” when the agency directed it to disclose the donors who funded those independent expenditures.

Crossroads GPS, founded as a 501(c)(4) social-welfare group with help from Republican strategist Karl Rove, doesn’t have to disclose donors because none of their money was given “for the purpose of furthering” the independent expenditures, Crossroads GPS treasurer Caleb Crosby said in a letter yesterday to the FEC that reiterated the Republican group’s interpretation of a controversial 2007 FEC regulation.

“The emphasis is not on how an organization subsequently chooses to use a contribution, but whether the donor made the contribution ‘for the purpose of furthering the reported independent expenditure,’” Crosby wrote.

Because “no contributions accepted” by Crossroads GPS were “solicited or received” for that purpose, Crosby said, “no contributions were required to be reported under the regulations” that the FEC cited in an Oct. 25 letter that told Crossroads GPS to disclose contributors.

The FEC made a “misstatement of law,” Crosby wrote.

Crossroads GPS said the same thing to the FEC in a July 2011 letter — that donors didn’t have to be disclosed because their money wasn’t earmarked to fund independent expenditures.

“The omission of contributor information on future reports should not be assumed to be an oversight,” Crossroads GPS lawyers Thomas J. Josefiak and Michael Bayes said in that letter.

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