New Venture Fund Lawyers Instructed to Ready Records for DC Attorney General Investigation, Internal Docs Reveal.
Attorney General Investigates Dark Money Network
D.C. attorney general Brian Schwalb (@attorneygeneralbrianschwalb75 YouTube)
Attorneys for the New Venture Fund have been ordered to preserve records about its internal operations in response to a subpoena from the attorney general of the District of Columbia, according to documents obtained by the Washington Free Beacon.
The investigation is far-reaching, as revealed in a document preservation request sent to New Venture Fund. The attorney general is looking into whether the New Venture Fund and other groups under the umbrella of Arabella Advisors, a liberal dark money behemoth, are misusing their tax-exempt status for political purposes. This unexpected scrutiny from a Democratic attorney general is unprecedented.
If Arabella’s funds were stripped of their nonprofit status, it would be a major blow to the dark money behemoth and disrupt Arabella’s business model.
The subpoenas, sent on September 22, seek information on the finances and operations of Arabella Advisors’ left-wing dark money network and all the nonprofit funds under its control, including New Venture Fund.
New Venture Fund Document Preservation Notice by Washington Free Beacon
The New Venture Fund’s attorneys have also ordered the charity to preserve records related to its former employee Sarah Walker, who claims she was wrongfully terminated after exposing the charity’s illegal direction of partisan political activities. These records include any fund transfers that could jeopardize the tax-exempt status of the New Venture Fund and other associated funds.
New Venture Fund shut down the voting rights group Secure Democracy shortly after Walker’s allegations came to light. This move was directly linked to her claims.
The subpoena, first reported by the Free Beacon, adds to Arabella Advisors’ troubles. The firm has faced financial difficulties, including layoffs and a CEO replacement. Arabella Advisors’ left-wing advocacy groups raised a staggering $3.3 billion in 2020 and 2021.
The New Venture Fund’s attorneys have also requested documents regarding the financial relationship between the charity and Arabella Advisors, including contracts and records of services provided.
In August, a watchdog group alleged that Arabella and its founder, Eric Kessler, deceived the IRS to gain control of dark money funds. These funds have paid the consultancy $230 million in management fees since 2006. The New Venture Fund’s records could shed light on the purpose of monetary transfers between Arabella’s funds.
Spokespeople for the New Venture Fund, the Sixteen Thirty Fund, and Arabella Advisors have expressed their willingness to cooperate with the investigation.
How does the investigation into Arabella Advisors and its affiliated nonprofits potentially impact the world of dark money and political spending?
Nture Fund’s Preservation Request.pdf.” href=”https://freebeacon.com/wp-content/uploads/2021/09/PDF-DRAFT-DFF-AF-Arabella-Advisors-New-Venture-Fund-AG-Records-Preservation-Request.pdf” target=”_blank” rel=”noopener noreferrer”>[PDF of preservation request]
The investigation comes at a time when dark money groups have faced increased scrutiny from both sides of the political spectrum. Dark money refers to funds used to influence political campaigns without disclosing the donors. While these groups can operate legally, they have often been criticized for their lack of transparency and potential for undue influence in the political process.
Arabella Advisors, founded in 2005, has become a major player in the world of dark money. The organization manages a network of nonprofits that have funneled hundreds of millions of dollars into left-wing causes. With numerous groups under its umbrella, Arabella Advisors has been able to maximize its influence and impact in the political arena.
The New Venture Fund, one of the nonprofits under Arabella Advisors’ control, has been particularly active in political advocacy. The organization has supported progressive causes such as climate change, gun control, and healthcare reform. Its extensive funding network has allowed it to make significant contributions to campaigns and initiatives across the country.
However, questions have been raised about the extent to which these nonprofits are engaging in political activity while maintaining their tax-exempt status. Internal documents obtained by the Washington Free Beacon show that the investigation is focusing on whether the New Venture Fund and other Arabella-affiliated nonprofits are using their tax-exempt status for political purposes.
It is unclear at this time what specific actions or activities are being investigated, but the attorney general’s subpoena suggests a comprehensive examination of the finances and operations of Arabella Advisors and its affiliated nonprofits. If any wrongdoing is found, it could have significant legal and financial consequences for the organization and its donors.
While the investigation is still ongoing, the scrutiny faced by Arabella Advisors and other dark money groups is indicative of a broader push for transparency in political spending. With increasing concerns about the influence of money in politics, many are calling for stricter regulations and greater disclosure requirements for organizations that engage in political advocacy.
The outcome of the investigation into Arabella Advisors and the New Venture Fund could have far-reaching implications for the world of dark money. If the attorney general finds evidence of wrongdoing, it could set a precedent for future investigations into similar organizations and potentially lead to greater accountability and transparency in political spending.
As the investigation continues, it is important to remember that the role of the attorney general is to uphold the law and ensure that organizations are operating within the bounds of the law. By shining a light on potentially questionable practices, investigations like these contribute to a healthier and more transparent political system.
In the case of Arabella Advisors and the New Venture Fund, the attorney general’s investigation could mark a turning point in the fight against dark money and its potential influence on our democracy.
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