New York Attorney General Launches Probe Into Contributions To Tax Exempt Groups

The New York Times reports today on New York Attorney General Eric Schneiderman's launch of an investigation into contributions made to tax exempt groups that are heavily involved in political campaigns. The story notes that reform groups have pushed the FEC and the IRS for years to take action, to no avail.

From the Times story: "Mr. Schneiderman issued a wide-ranging subpoena on Tuesday to executives at a foundation affiliated with the chamber, seeking e-mails, bank records and other documents to determine whether the foundation illegally funneled $18 million to the chamber for political and lobbying activities, according to people with knowledge of the investigation."

"Mr. Schneiderman’s investigation is the first significant one in years into the rapidly growing use of tax-exempt groups to move money into politics. The biggest such groups, including Americans for Prosperity, which is backed by the billionaire brothers Charles and David Koch, and Crossroads Grassroots Policy Strategies, which was founded by Karl Rove and other Republican strategists, are expected to spend hundreds of millions of dollars this year on issue advertisements against candidates to sway the outcome of the presidential and Congressional elections."

This is certainly an encouraging action from Schneiderman, and one that we will follow closely as the investigation moves forward. Perhaps he will discover what many, if not most, already suspect.