Last week was Ro Khanna’s 3rd anniversary of virtually non-stop campaigning to unseat longtime progressive hero, Rep. Mike Honda in California’s 17th Congressional District. Khanna lost the 2014 race, a race that cost seven times the 2012 election in which Honda and his opponent, Evelyn Li, together raised the same amount over the course of the entire election as Khanna did in the first three months. And within one month of Rep. Honda’s inauguration, Ro Khanna was back to raising money for a rematch.
The large amount and sources of these funds have been the topic of many articles, with the Honda campaign often pointing out some of Khanna’s right-wing supporters. Scott Herhold of the Mercury News, one of Khanna’s most ardent supporters, recently posted a vitriolic screed attacking Honda’s campaign and supporters for pointing out Khanna’s right-wing funders. He even tried to compare Rep. Honda to Donald Trump, knowing full well Honda’s reputation of championing civil rights, and his history of being held as a young child in an interment camp during World War II. Herhold’s attack was a new low.
THE BIG LIE
What's more intriguing about the Beckendorf [Honda’s campaign manager] comment is that it reveals the big lie at the heart of the Honda campaign: Suggest often enough that your opponent is really a Republican -- or a tool of GOP interests -- and maybe, just maybe, less-informed voters will buy it.
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So let's set the record straight again. Khanna has gotten some Republican contributions. So have most Democratic candidates for Congress. Nothing strange about that.
Herhold is correct that some Democratic candidates may receive a few contributions from Republican donors. But, we’re not likely to find another race with 130 right-wing donors funding a Democrat. If Herhold were really concerned about the “less-informed voters,” he’d spend less time bloviating and more time investigating so he accurately informs his readers. He could start by looking at the last election where Khanna was the #1 Democrat with Wall Street donors as well as #1 overall with “Fat Cat” donors in the entire country. Herhold might ask, “Just who are these big money donors funding someone who has never even held an elected office? And what are their common interests?”
Maybe Herhold was afraid of what he’d find. Or maybe he would rather the voters just remain uninformed about Khanna’s pro-charter, anti-worker, big-money bundling donors that gave millions to Republican and Koch Super PACs.
Even Khanna doesn’t appear eager to inform the voters of all his policies. Normally eager to share through Facebook and Twitter any mention of himself in the media, his “exclusive” interview with right-wing website, Breitbart was not. Even the reporter’s tweet received a lukewarm “like” instead of being retweeted to his followers.
Are there certain issues in the Democratic Party that you disagree with?
Sure. I’ve been much more independent-minded on supporting charter schools. […]
In my previous article “No, Ro Khanna, you are not like Bernie Sanders (2/19/16),” I dispelled the myth that “grassroots” supporters are funding Khanna. When only 0.5% of your current funding is from small contributions ($200 or less) and 88% of your money comes from contributions of $2000 or more, not many would consider that grassroots. If 258 of your contributors accounting for almost half of itemized contributions maxed out for both the primary and general at $5400, you’re not really grassroots. Those 258 contributors alone account for 65% ($1,393,200.00) of Khanna’s total funding so far this election. This might be of interest to the voters.
Since the local media seems intent on leaving the “less-informed voters” uninformed of Khanna’s right-wing big-money donors and the policies they support, it is up to us to do our own digging. I’m not going to list all of Khanna’s over 100 right-wing donors who alone account for at least 25% of his money raised this cycle. List is available upon request.
These are donors that have spent over $11 million trying to defeat Democratic candidates including Pres. Obama and Elizabeth Warren. They are funding some of the very Republicans currently hamstringing Pres. Obama’s attempt to fill the empty seat on the Supreme Court. They support causes similar to other Khanna donors and endorsers who are pro-charter and attack workers’ pensions along with their never-ending quest to transfer money from workers and consumers into the pockets of the wealthy Wall Street types funding Khanna’s campaign.
Before taking a closer look at some of Khanna’s donors, I’d like to explain how some of these seemingly unconnected pieces fit together. Why would hedge-funders and venture capitalists spend so much money pushing non-profit charter schools? Charter schools may not make a profit, but they must rent space, buy books, technology, and curriculums. Education is a $600 billion industry in America and they want part of this recession-proof investment.
Their interest in workers’ pensions is two-fold. For one, they would like to wrestle control from states so they can charge huge sums managing the pension funds. But any opportunity to weaken unions is a positive for them because one way workers have been able to have a voice in Washington is to pool their money to support Democratic candidates. Unions usually support Democrats like Rep. Honda because he supports the workers and citizens of Silicon Valley. Rep Honda recently brought Federal money back to our area to upgrade the 280/880 overpasses. The hedge-funders would rather we built toll roads so they could get a piece.
Donors and Endorsers, a Small Sampling
Stephen Schwarzman
When McCain-Fiengold was passed, it stopped the flow of soft-money to Federal candidates, blocking corporations from funneling moneys to candidates. Karl Rove devised a plan to get around the new regulations by, “bundling.” Rove gathered a team of mostly white males, over 55, and well connected to reach out to their uber-wealthy friends to bundle huge sums that were directed to George W. Bush. Stephen Schwarzman was one of the Bush Rangers, a title bestowed by Rove upon those that bundled over $200,000. Candidates are not required to disclose their bundlers, although most presidential candidates do if over $100,000. We can never be sure if or how much Schwarzman bundled for Khanna, but he and others at the Blackstone Group have given $22,000.00 to Khanna.
Schwarzman, an attendee of the secretive Koch Brothers’ conferences has given over $800,000 to Republican super PACs and candidates - and that is only what has been disclosed. The Kochs are famous for their shadowy networks of dark-money.
Recent tone-deaf comments by Schwarzman at the World Economic Forum in Davos made the international news.
“I find the whole thing astonishing and what’s remarkable is the amount of anger whether it’s on the Republican side or the Democratic side,” the Wall Street mogul said. “Bernie Sanders, to me, is almost more stunning than some of what’s going on in the Republican side. How is that happening, why is that happening?”
This coming from somebody who can afford to give Republicans more than many of us can hope to make in 10 years? Somebody who helped cause the ’08 collapse? And then profited from the recovery by getting low or zero interest loans to buy huge swaths of foreclosed homes, artificially driving up prices, compounding the pain felt by those hurt during the crisis. Maybe tone-deaf was an understatement!
Wayne Berman
Blackstone Group senior advisor, Wayne Berman was a Chevron lobbyist and Bush Ranger noted for being involved in fundraising for every Republican presidential candidate since 1992. His wife was George W. Bush’s White House Social Secretary.
STEPHEN LUCZO
Stephen Luczo and his wife, Agatha, have given nearly $300,000 to Republicans. They are also two of Khanna’s biggest donors, giving over $25,000 to his campaigns and Super PAC (Californians for Innovation). Mr. Luczo, a Romney supporter, gained notoriety when he signed on to a letter written by members of A Critical Choice for America PAC. They complained Obama was using divisive rhetoric “aimed at successful people in the business sector,” and were concerned about ‘the future of economic freedom in this country.” Oy, pity the suffering.
William A. Ackman
Pro-charter, hedge-fund millionaire from New York, William Ackman and his wife are maxed out, $10,800. Khanna donors. Four others from Pershing Capital have given another $12,300 to Khanna this election.
William H. Draper III
The 100’s of thousands hedge-fund billionaire, William Draper III spent supporting Republicans like Pete Wilson, John Boehner, Carly Fiorina and all three Bushes really pales in comparison to the 10’s of millions he and his son Timothy have spent attacking California’s public education. The pair spent over $20 million in a failed effort to pass a school voucher proposition in California. As if this wasn’t enough, they were also major donors of Prop 32, a thinly veiled attack on teachers and unions.
William Bloomfield
Southern California businessman, William Bloomfield is one of Khanna’s maxed out donors, $5400. He and his wife have given millions of dollars supporting pro-charter school groups and candidates including $3.5 million to charter school executive, Marshall Tuck in his failed campaign for California School superintendent. They gave $1.5 million helping a pro-charter candidate defeat Sandra Fluke in her run for state senate. And of course, he too backed Prop. 32’s attack on teachers and unions.
John and Laura Arnold
The Enron hedge-fund billionaire from Texas, John Arnold and his wife, Laura are Khanna’s biggest donors, contributing over $370,000 to his campaigns and Super PAC. As well as being leading figures in the pro-charter school movement, they’ve spent 100’s of thousands attacking public employee pensions in California. The Arnolds were major funders of Khanna endorser Mayor Chuck Reed’s unconstitutional Measure B that decimated the San Jose police department, and both of Reed’s failed attempts to get similar legislation on the California ballot.
Although candidates are barred from working directly with or raising money for their super PACs, Khanna admitted to discussing pension reform with the Arnolds. Dancing along the edge of the law.
Ravenel B. Curry IV
Pro-charter, hedge-fund millionaire from New York, Ravenel Boykin Curry IV, was one of Khanna’s first contributors for this election, giving the campaign $5400 of seed money. Curry IV works with his dad, Ravenel B. Curry III who is a longtime Koch crony and donor.
Tench Coxe
Venture Capitalist, Tench Coxe and his wife were early contributors to Khanna’s campaign, maxing out at $10,800. The Coxe’s gave Khanna’s campaign and super PAC $20,400 last election. Others from Sutter Hill Ventures have given $33,800. to Khanna’s campaigns, as well as $100’s of thousands to Republican PACs and candidates. Tench was also a major funder of Measure B.
Carrie Walton-Penner
While Khanna often claims to not take PAC money, he did accept a contribution funneled through a pro-charter PAC by Carrie Walton-Penner. Since she contributed on the last Election Day, the money was not reported until well after the media was done covering the race.
The Walton heir was credited as being the second largest individual contributor to winning state legislative candidates in the 2010 Wisconsin elections. This enabled Gov. Walker and his Republican majority to cut $800 million dollars from public schools and funnel some of it back to private schools. She and her husband, Walmart chairman, Greg Penner, also spent at least $250,000 to defeat universal preschool in California.
Lani Barrameda-Shallman and John Shallman
Lani Barrameda-Shallman of Encino is a new donor to Khanna’s campaign. Her husband, John Shallman of Shallman Communications, is one of Khanna’s new campaign advisors. Lani and John also run the West Coast Public Affairs. It would not take the media very much digging to realize trouble seems to follow them, but I’ll limit myself to the most relevant.
West Coast Public Affairs was hired by the pro-charter Super PAC EdVoice to run advertising in support of Teach For America candidate, Brian Johnson. A majority of EdVoice’s funding was from 3 Khanna contributors, Laura Arnold ($100,000), William Bloomfield ($680,000), and Carrie Walton-Penner ($875,000).
One of the fundamental rules for campaigns is you don’t do campaign business in your client’s legislative office. But that is exactly what John Shallman was caught doing in 2012. When Los Cerritos Community Newspaper used the California Public Records Act to request Shallman client’s public calendar, they first stalled for six months. Eventually they were forced to turnover the calendar, which revealed that he had met with his client in her legislative office numerous times.
This was not a major offense; nobody was lining their pockets with campaign money. Maybe a ding to their reputation, the story would have likely faded away as the campaigns focused back on the real issues of the race. But Shallman fueled the flames when he released the reporter’s arrest record in an effort to discredit and distract. Really need to wonder if Khanna vetted this hire, or were the Shallmans’ connections to big-money donors just too tempting to pass up?
Kali Chaudhuri
We often hear stories about vulture capitalists that engage in hostile takeovers before pillaging the assets and shutting down the companies. But you don’t often hear of them in the healthcare provider industry. Meet Dr. Kali Chaudhuri. After a group of physicians sued him in an effort to halt his hostile takeover, he sent 6000 letters to patients saying their bills wouldn't be paid unless they switched to a separate plan that he controlled. The physicians accused him of “fraud, racketeering and corruption," which threatened the health care of thousands of patients.
One doctor who previously pushed back against another of Dr. Chaudhuri’s hostile takeovers found himself being framed for road rage. A case so bizarre it needs to be read to be believed. Link HERE.
Apparently Khanna has no qualms about taking money from characters like Dr. Chaudhuri. Similar to Khanna contributor, Guy Gecht, who was fined by the Labor Department after he was caught paying some of his workers as little as $1.21 an hour. Khanna never returned Gecht’s contributions last election and still continues to take his money.
Steve Westly
Venture Capitalist and lifelong Democrat, Steve Westly is a Khanna donor and endorser. Westly was the youngest Democratic Party official ever elected and became one of their biggest money bundlers. Westly is very active in the party and what many would consider a party insider. He is very much the party establishment and cronyism Khanna claims to be running to overthrow.
Although not a Republican, Westly does represent the “New Dem” wing of the Party, progressive on social issues but more conservative on fiscal issues. Looking to New Dem PACS and Venture Capitalists PACs is an area where you would find a blending of right-wing donors and Democrats. Of the right-wing Khanna donors selected for scrutiny, they have given $86,750 to New Dem PACs and over $391, 000 to Venture Capitalists PACs.
Recently Westly’s venture capitalist side clouded his judgment when he chose to use his political clout to solve a pocketbook problem. When one of Westly’s venture capitalists investments was caught on security video hitting and kicking his girlfriend over 100 times within 30 minutes, Westly jumped in to save his IPO. Westly reached out to Willie Brown, telling the abusive tech mogul that the ex-mayor was a “very good deal maker,’ and could ‘back him off,’ referring to the DA.
After the emails were made public, feminist groups (add this male feminist) have told Westly, he can forget about ever running for office again. Yet, this is an endorser (and contributor) Khanna is “proud” to have?
The Measure B Boys
The 2008 Global Financial Crisis caused huge losses in private and public pension plans. Caused by some of the very hedge fund managers listed above, the crisis created a huge burden on states and cities to make up the losses to cover defined benefit obligations. Similar to Wisconsin’s Gov. Walker, San José’s Mayor Chuck Reed used the crisis as a cudgel to beat on public employees. Recently ruled unconstitutional, Measure B tried to move the burden on to public employees and is credited with decimating the city’s police and fire departments. Measure B demoralized and demonized public employees for a problem caused by the Wall Street gamblers.
With funding from the Arnolds, Tench Coxe, William Younger, and others associated with Sutter Hill Ventures, Mayor Reed was able to push through Measure B, and has twice attempted to get similar legislation on the state ballot.
Khanna endorser, Mayor Reed, was supported in his quest for Measure B by the same people who now support Khanna: Mayor Sam Liccardo (husband of charter school executive), County Assessor Larry Stone, Scott Herhold and the Mercury News Editorial staff.
James Swartz
Venture Capitalist and Republican donor (over $250,000). Swartz has given $10,600 to Khanna’s campaign. Others from Accel Partners have contributed $55,300 to Khanna’s campaigns and Super PAC.
Ted Schlein
Venture Capitalist and Republican donor (over $45,000). Schlein and others from Kleiner Perkins have given Khanna $39,000.
Andrew Guevara
Investment Banker and Republican donor (over $24,000) Guevara and others from Morgan Stanley have given Khanna $22,900.
Etc… Etc…
I could go on, but this should give you a good idea of the type of donors and the methods Khanna is using to fund his campaign.
In Conclusion
If just to get elected, Ro Khanna so easily …so eagerly is willing to align with the very forces corrupting our politics, should the voters not be concerned? Should they expect to be informed by their local media?
Instead the media and Khanna’s campaign spend their time feigning outrage over Rep. Honda’s “1000 Cranes” donor list. Despite what some may believe, most politicians hate fundraising. Endless hours spent on the phone begging for money, hours that could be spent legislating, advocating, and yes, maybe having some fun with friends on karaoke night. Whatever name they give it, all candidates have a donor list.
Steve Spinner, Khanna’s Campaign Chair and mega-bundler even has an app for that. For a mere $13,500 you too can run your contact list through his software, determining which friends might be willing to help you bundle 1000’s of dollars. It’s like a robotic version of Rove’s Bush Rangers.
When I met with Khanna after the last election, he was quite proud of his fundraising skills. He shared his belief the Democratic Party would be excited that he was bringing a new type of donor to the Party. Personally, this Democrat is not excited at all by his new funders and believes the influence of his big-money right-wing donors is detrimental to the Democratic Party, and the ideals for which it stands.
Luckily for voters there is a candidate that has spent his life enthusiastically fighting for the Democratic causes and ideals important to the constituents of his district, Rep. Mike Honda.