Let’s start this with one very simple concept. Political Action Committees need money to exist. No money, no PAC.
As you are well aware there is little love lost between the Tea Party Express and myself. I have long since believed that they are the corrupt arm of the Tea Party Movement. I believe their intention is to create wealth for Sal Russo, Joe Wierzbicki and others. I believe they did this through a series of associated companies where they funneled donated money from one company to another while taking their cut at each stop. I have spent a good portion of my time over the last year trying to convince others that this is the case. I am not the only one who believes this. Many other Tea Party groups have called out the Express for their questionable practices. But now I believe my crusade may be coming to an end. Why? Because I believe that the Tea Party Express may be positioning themselves to end their run. The profits have been maximized and the Tea Party Express may be calling it quits.
I didn’t get this from any newspaper column or report on FOX News. There have been no rumors or quotes. I don’t even have an inside source. My belief comes from my research and what I believe that it is showing.
Part of my research has been to follow the Express’ financial activities through their required FEC filings. These are detailed reports and are available on the internet showing where and how they spent their money. I have been reviewing the filings that occurred over the last two years. Specifically my research begins around October 1, 2008 just prior to the Presidential election. It is also not long before the time that the Tea Party Express and Our Country Deserves Better PAC began filing as a single entity. In general it is a lot of numbers that will make your eyes cross. But here is what I find EXTREMLY interesting.
On December 2, 2010 the “Report of Receipts and Disbursements” was filed with the FEC for the Tea Party Express. The period covered on this report was October 14 through November 22 of 2010 (about 5 ½ weeks). This is the period just before and after the recent mid-term election. Following the November 2 election we see a massive amount of activity and payments being made by the TPX. But here is the long and short of it. The Tea Party Express has a grand total of $1519.67 in the bank. Take away the $776.04 in debts owed and the total drops to a balance of $743.63. The Tea Party Express has enough money to pay Tiffany Ruegner, the TPX Director of Field Operations, for about four days of work and nothing else. As I said a PAC cannot operate without cash on hand. They cannot send emails or pay staff. They can’t even afford to pay support groups who help them process their donations. The Tea Party Express is essentially broke.
No one, including the Tea Party Express, could argue that this is typical behavior. That a PAC would intentionally blow all they had on an election. Leave it all on the table as the saying goes. But that is not true, at least for the TPX. Look at their financial statements following the 2008 Presidential election. An election that one could argue was more important than this year’s mid-term elections. In that FEC report we can see that the Tea Party Express maintained a bank balance of $132,042.70 with outstanding debts of $26,271.19. That meant their actual operating balance following the election was at $105,771.51. You must also remember the Tea Party Express was only about six months old at this point so they were raising far less money in total at that time.
Why would the Tea Party Express/Our Country Deserves Better PAC drain the accounts so? Especially as we prepare to go into a Presidential election cycle that is so important. I have been in contact with Kelly Eustis, former TPX Political Director, and he gave me his thoughts. He stated that while he was at the Tea Party Express, Joe Wierzbicki would make statements to the effect that “if worse comes to worse, everyone will get paid as a last hoorah”. Eustis stated it came across as a “well, it’s been good, but it’s over” kind of thing. It does appear that just about everyone has been paid. Hip, hip, hoorah!
What also brings on suspicion is the fact that the Express has been virtually silent since the election. There have been one or two emails, none of which has asked for donations. When does a PAC stop asking for donations? The Our Country Deserves Better website doesn’t appear to have been updated in months. The last news item was from August 17, 2009. I then went the Tea Party Express site. The TPX store is selling only items for the Express IV tour which ended a month ago. The last blog posting was on August 16, 2010. The websites are virtual ghost towns.
What are particularly disturbing for me were the payments made to staff insiders over the last five weeks to help close the books.
*Amy Kremer made $6500
*Holland America Cruise Line was paid an additional $12K in addition to the earlier $100k plus
*Joe Wierzbicki made an additional $5500
*Tiffany Ruegner was paid an additional $7800
*Russo, Marsh and Associates, home of Sal Russo and Joe Wierzbicki, was paid an additional $389K
I could be wrong but I believe the Tea Party Express is coming to the end of the line. I believe Sal Russo and Joe Wierzbicki have decided this train needs to be retired and I think they are trying to fade into the night quietly so no one notices.
Did the Express do anything illegal? Likely not. Sal Russo is too smart for that. Did they do things that were corrupt and immoral to put money in their pockets? I believe that is the case. If I am correct and this is the end of the Tea Party Express I have mixed feeling. On one hand I will be so happy to see these people go away so the Tea Party Movement can get on with what they are meant to do. But on the other hand I am sad for all the people who put all they had into backing a group that was not doing the right thing.
One thing I can promise is that if the Tea Party Express/Our Country Deserves Better PAC go away, Sal Russo, Joe Wierzbicki and others will be back with a new money making scheme very soon.
SO WHO MADE THE MOST MONEY FROM THE TEA PARTY EXPRESS?
Here are the top 25 payees over the last two years. Note how many are directly associated with the Tea Party Express and/or Russo, Marsh and Associates.
1) Russo, Marsh and Asso, $3,224,653.16, Owner: Sal Russo, Principal: Joe Wierzbicki
2) Donationsafe, $400,018.48, Credit Card Processing
3) King Media Group, $286,167.15, Owner: Janet King Russo (wife of Sal Russo), Senior Advisor: Sal Russo, Director of Public Relations: Joe Wierzbicki
4) FOX Business Network, $234,151.20, Media Buys
5) Paramount Communications Group, $232,989.27, Internet and email fundraising
6) Newsmax Media Inc., 208,516.29, Internet and email fundraising
7) Premiere Transportation, $197,425.00, Bus rental and wrap
8) Frontline Strategies and Media, $184,371.22, Consulting, commissions, fundraising
9) Complete Campaigns, $168,995.51, Credit Card Processing
10) Courtyard by Marriott (various), $134,556.90, Travel and lodging
11) Fox News Channel, $120,544.20, Media Buys
12) Facebook, $101,725.23, Web and online advertising
13) Human Events, $93,799.99, Advertising and Email
14) Joe Wierzbicki, $90,353.90, Coordinating Manager of the Tea Party Express, Wrote the Proposal for the Tea Party Express, Principal at Russo, Marsh and Associates, Director of Public Relations King Media Group, Grass Roots Coordinator for Move America Forward
15) Endeavor Media Group, $86,000.00, Internet newsletters
16) Betty Presley and Associates, $82,942.49, Accounting firm for Tea Party Express, Russo, Marsh and Associates and Move America Forward
17) Thomas J. Studer, $81,000.00, Tour bus, bus wrap and driver
18) Tiffiny Ruegner, $80,547,20, Director of Field Operations, first payment not until August 28, 2009 for wages and travel
19) Holland America Cruise Line, $71,516.96, Cruise fees for Tea Party Express staff for Joe Miller Support trip
20) The Rivoli Review, $68,224.26, CDs/DVDs, Travel
21) Itouchpublishers.com, $58,983.00, Printing
22) National Cable Communications, $54,723.50, Advertising
23) Amy Kremer, $54,723.50, Tea Party Express Chairperson, first payment not until November 3, 2009 for wages and travel
24) Amsterdam Seattle, $45,661.46, Cruise fees for Tea Party Express staff for Joe Miller Support trip
25) Bryan Shroyer, Tea Party Express Political Director, first payment not until March 3, 2010 for wages and travel
UPDATE: After publishing this article I was contacted by Tiffiny Ruegner of the TPX. She felt there was a need for clarification in the numbers attributed to her. So I submit the following:
Where I wrote she received $7800 over the last five weeks of reporting, the actual numbers were as such:
Actual Total: $7762.90
Breakdown:
Wages $6450.00
Travel and Meals $1312.90
Where I listed her two year income and reimbursements totals I listed it as Wages, Travel and Meals as is done on the FEC report. The actual numbers were as such:
Actual Total: 80547.2
Breakdown:
Wages: $70,739.00
Travel and Meals: $8746.03
Other: $1062.17