From: "Jason Auvenshine" <auvenj@mailcity.com>
Check out the end of this article for another suggestion as to why Harry Browne is now contemplating "civil disobedience".
One thing is for sure...my view of Libertarian politics has been forever changed by the events of the past 11 months.
--Jason Auvenshine
--------- Forwarded Message ---------
DATE: Sun, 12 Mar 2000 17:19:07
From: "Jacob G. Hornberger" <fff@fff.org>
To: <emailupd@fff.org>
[Part 3 of this article will be published during the week of March 20.]
The Libertarian Party Needs a Divorce: Part 2 (of 3)
by Jacob G. Hornberger
David Bergland was elected LP national chairman at the July 1998 LP national convention, replacing Steve Dasbach, who moved to Washington to take the subordinate position of LP national director. When Dasbach took charge of the Washington office, he knew that when Perry Willis was working as LP national director, Willis (and possibly LP communications director Bill Winter as well) had accepted money from the Harry Browne campaign while Browne was vying for the 1996 LP presidential nomination. During the Great Bylaws Debate, Dasbach (who was then serving as national chairman) emphasized that a "policy" of the LP National Committee addressed conflicts of interest within the LP.
By the time Dasbach became LP national director in July 1998, Perry Willis (who had served in that capacity until mid-September 1997) had already resigned to go to work for the Harry Browne for President Exploratory Committee. Wasn't Willis risking a lot by giving up a secure position with the Libertarian Party to go to work for a fledgling campaign organization? Not exactly. Because Dasbach (in his role as LP national chairman) approved the LP's hiring of Willis to write the prospecting letters for ... Project Archimedes! This was the Libertarian Party's massive direct-mail campaign to bring in 200,000 members by the year 2000, which would enable Browne to wage a national mass-media advertising campaign for president.
In other words, Willis was again double-dipping and representing conflicting interests -- taking money from both the Libertarian Party and (presumably) the Harry Browne for President Exploratory Committee and purporting to represent the interests of both entities.
How did Dasbach, in his role as LP national chairman, reconcile this with the LP National Committee's "policy" that addressed conflicts of interest? He apparently took the position that since Willis was no longer a salaried employee of the Libertarian Party and instead was now an independent consultant to the party, this particular arrangement was not prohibited by the "policy" and, therefore, that he (Dasbach) would sanction it.
(The reason that payments from the Browne for President Exploratory Committee to Willis must remain a presumption is that from the time that the exploratory committee was formed in February 1997, not one single accounting has been filed with the Federal Elections Commission on what has been done with the estimated $1,000,000 that the committee has raised since its inception three years ago. In fact, the FEC does not even consider Harry Browne a presidential candidate.[See Postscript below at the end of this article.])
Even if Browne didn't pay Willis a dime for the work he was doing for the Browne for President Exploratory Committee (including writing Browne's fundraising letters), Willis apparently had nothing to worry about with respect to personal finances.
After Willis resigned in mid-September 1997, the Libertarian Party disbursed to him, in October, November, and December 1997, the sum of $20,586.88 for "payroll, travel, and supplies."
Beginning in January 1998, Willis's name disappeared from the list of people receiving disbursements from the Libertarian Party, according to the official financial documents that the party was filing with the Federal Elections Commission on a monthly basis.
However, beginning in October 1997, large sums of money, ultimately totaling $63,526.69, began being disbursed to an entity named Optopia, whose address is 3092 S. Glebe Road, Arlington, VA 22206.
Out of 18 separate disbursements to Optopia after October 1, 1997 (Willis resigned in mid-September 1997), 10 of them (totaling $41,881.73, including one disbursement of an even $10,000.00) describe the purpose of the disbursements as "consulting." The other 8 disbursements (totaling $21,644.96) provide no reason at all for the disbursements on the official FEC documents.
What does all this have to do with Perry Willis? Simply that Perry Willis's address is 3092 S. Glebe Road, Arlington, VA 22206, the same address of the entity known as Optopia. For some unknown reason, Optopia was apparently being used as a front for Perry Willis.
Attached to this article is Exhibit A, which details disbursements by the Libertarian Party from 1997-1999 to Perry Willis and Optopia as well as to a Stephanie Yanik (whose address matches that of Willis and Optopia) according to the official documents on file with the FEC.
If Optopia was being used as a front for Perry Willis, then Willis's resignation will forever stand as one of the most bountiful resignations in the history of the Libertarian Party, for the money paid to Willis and Otopia after Willis's resignation from the party totals $84,113.57. (If we include the monies paid to Yanik, the total increases to $86,032.86.) In fact, in the 9-month period after Willis's resignation as LP national director, Willis and Optopia received more money from the Libertarian Party ($64,213.24) than the 9-month period before Willis resigned ($56,675.91), when he was serving as the LP's full-time national director (and when his duties presumably included writing the Project Archimedes letters).
The glaring question, of course, is: Were Libertarian Party funds being funneled, either directly or indirectly, into the Browne for President Exploratory Committee?
Whether they were or weren't, one thing is clear: If Optopia was in fact a front for Perry Willis, enabling him to receive large amounts of LP funds after he resigned from the party, the arrangement nicely benefited Harry Browne. After all, how many presidential candidates, Libertarian or otherwise, have the luxury of having a full-time exploratory-committee coordinator who has an extremely generous independent stream of income?
Did it also benefit Harry Browne to have his man, Perry Willis, drafting the Project Archimedes letters for the LP national office? Absolutely. In fact, it was a tremendous financial boon for Browne. Why? Because the LP's Project Archimedes' prospecting letters (which Willis was crafting) that were mailed out to millions of people at enormous LP expense (including list rental, printing, postage, and mailhouse) were often not-so-subtle promotional pieces for Harry Browne.
For example, some of the letters promoted Browne's plan to save payments for Social Security recipients (a position different from that in the Libertarian Party platform) and Browne's Republicanesque plan to gradually downsize government. In fact, two months before he resigned, Willis openly admitted in an LP News article entitled, "LP Membership Drive to Reach Millions," "We use Harry Browne's basic presidential campaign platform to illustrate the kinds of things a Libertarian would talk about." (July 1997 LP News, posted on the LP's website, www.lp.org.)
Thus, by having his exploratory-committee coordinator and the writer of his fundraising letters also crafting the LP's Project Archimides prospecting letters that were promoting Browne and his political positions, Harry Browne was able to receive an indirect subsidy to his presidential exploratory committee equivalent to possibly more than $1 million in funds that were spent on Project Archimedes. Moreover, contributors to the Libertarian Party, some of whom may have preferred not to support Harry Browne's personal political interests, nevertheless had part of their donations used to advance those interests, whether the donors liked it or not.
Browne has apparently been able to benefit in another way from the Project Archimedes letters -- by being able to unload a large stockpile of his 1996 campaign book, Why Government Doesn't Work, onto the Libertarian Party. For some of the Project Archimedes letters offered the book as a bonus to donors to the Libertarian Party, a practice that both Bergland and Dasbach energetically endorsed and approved.
Attached to this article as Exhibit B is a summary of disbursements totaling $12,089.33 for "books" that the Libertarian Party made to an entity known as LiamWorks, an entity that apparently sells nothing but books and tapes by Harry Browne. According to official documents filed with the FEC, all of the disbursements were made after David Bergland's election as LP national chairman (and after Dasbach's appointment as LP national director).
Who are the owners of LiamWorks? Browne? Willis? Dasbach? Bergland? Ayres? The About Us section of the LiamWorks website (www.liamworks.com) doesn't provide the information, instead stating, somewhat flippantly, I guess you won't find out much about us here, sorry.
If we add what the Libertarian Party disbursed to LiamWorks ($12,089.33) for "books" to what the party has disbursed to Harry Browne for "consulting" ($3,540.60), the amount disbursed to both of them totals $15,629.33.
All of this, including the Dasbach-Willis-Browne pipeline, might explain why Browne so passionately endorsed David Bergland's election as LP national chairman at the 1998 LP national convention. Browne knew that Bergland's opponent, Gene Ciesewski, had spoken against conflicts of interest within the Libertarian Party. Therefore, if Ciesewksi had been elected LP national chairman, Browne knew that he (Ciesewksi) would likely not have permitted the continuation of the Dasbach-Willis-Browne pipeline. With Bergland (the person whose wife, Sharon Ayres, had brought home more than $100,000 from the Browne campaign in 1996) at the helm, Browne knew that the Dasbach-Willis-Browne pipeline would not only be safe but also fortified.
(Under Bergland's leadership, the Libertarian Party later sued Ciesewski for improper use of the party's mailing list. Documents filed by the party with the FEC show that from December 1998 through December 1999, the LP disbursed $24,999.14 to Douglas C. Herbert, a Washington, D.C., attorney, for "legal fees." The most recent FEC documents reflect that as of the end of January 2000, there was still an outstanding debt of $17,235.17 due and owing to Herbert, which brings the total amount of attorney's fees to Herbert, both disbursed and yet to be disbursed by the Libertarian Party, to $42,234.31. Moreover, Herbert is apparently multitalented because the party disbursed another $2,753.37 to him for "petitioning" in December 1998, January 1999, and April 1999, bringing the grand total to Herbert of $44,987.68.)
For his part, Bergland hasn't done too badly himself. LP financial documents filed with the FEC reflect that from January 1997 through September 1997, during which time Perry Willis was serving as LP national director (and Bergland's wife, Sharon Ayres, was serving on the LP National Committee), the Libertarian Party disbursed a total sum of $13,923.64 for "printing" to an entity named Orpheus Publishing, 1773 Bahama Place, Costa Mesa, CA 92626.
From the time that Perry Willis resigned as LP national director in mid-September 1997 through June 1998, there was one disbursement to Orpheus of $1,282.00.
Then, after Bergland was elected LP national chairman in July 1998 (and Dasbach took over the LP national office as national director), the disbursements to Orpheus Publishing picked up steam and ultimately totaled another $15,703.67 through June 1999.
The exact nature of Orpheus Publishing is unknown. But what is known is that David Bergland and his wife Sharon Ayres live at 1773 Bahama Place, Costa Mesa, CA 92626, the same address as Orpheus Publishing. Attached to this article as Exhibit C is a list of the disbursements from the Libertarian Party to Orpheus Publishing, as taken from official documents filed with the FEC.
But there was still one problem facing Browne and Willis with respect to the Project Archimedes letters. While Willis could advance Browne's personal campaign interests by drafting the Project Archimedes letters, he did not have the authority to sign the letters because he was no longer the LP national director. This turned out to be no problem at all. Signing the letters was Dasbach's job.
Each time that Dasbach signed the letters that Willis drafted for him (in Dasbach's capacity as LP national director), he had to know that he was using a massive amount of Libertarian Party resources to advance Harry Browne's personal political interests because, again, many of the Project Archimedes letters he signed (which had been crafted by Browne's man, Perry Willis) were promoting Browne's personal campaign positions.
Yet here's the pertinent part of the LP National Committee "policy" that addressed conflicts of interest and to which Dasbach had constantly referred: "No employee of the Party shall endorse, support, or contribute any money; use his or her title or position; or work as a volunteer, employee, or contractor, to aid any candidate for public office prior to the nomination."
In retrospect, it is easy to see what was going on. After Browne's poor performance in the 1996 presidential campaign (1/2 percent of the national vote), he made it clear that he wanted a tremendous increase in party membership and resources to enable him to run his type of political campaign -- one based on mass-media advertising, using either a professionally produced audiotape that could be played on national radio stations (which was the plan that Browne announced at the concluding banquet of the 1996 LP national presidential nominating convention) or a professionally produced videotape that could be played on national network television (which was Browne's plan for his 2000 presidential campaign).
But Browne obviously felt that his mass-media national advertising campaign, using either a professional produced audiotape or a professionally produced videotape, would require the active cooperation and coordination of the LP national office.
Perry Willis was more than happy to cooperate and coordinate. After all, he stood to gain from both ends -- the Libertarian Party end and the Harry Browne end (after gaining from both ends while serving as LP national director when Browne was vying for the 1996 LP presidential nomination).
The LP national office would implement a massive fundraising campaign to finance an enormously expensive direct-mail campaign called Project Archimedes that would be used to increase party membership and that would also indirectly advance Harry Browne and his 2000 presidential campaign. With letters going out to millions of people advancing Browne's political positions, party membership would skyrocket to 200,000, Browne would soar to 15 percent in the national presidential polls, millions of dollars would come pouring in, and Browne would have a massive advertising campaign on national network television with a professionally produced videotape. Faced with this overwhelming success, no one would ever be able to question or criticize Bergland, Browne, Dasbach, and Willis for what they had accomplished with ethical lapses, conflicts of interest, and improper payments.
Unfortunately for them, Project Archimedes not only turned out to be a financial, political, and ethical debacle, it also has had a major adverse impact on Harry Browne's 2000 presidential campaign.
POSTSCRIPT:
Today (March 12), in a somewhat startling move, Browne sent out a memorandum via the Internet announcing that he and Willis intend to break the law that requires presidential candidates to file financial disclosure statements with the FEC. Browne's purported rationale: that the filing of the financial disclosure statements would violate people's privacy by disclosing the identities of the people who have donated to his presidential effort.
An equally likely possibility, however, is that the rationale is a sham and that Browne is instead desperately trying to keep secret what he has done with the estimated $1 million that donors have sent his exploratory committee and presidential campaign for the last 3 years. After all, the names of more than 400 of Brownes supporters are openly listed on his website for the entire world to see. Moreover, donors to Brownes campaign voluntarily donated under the express assumption that their names would be listed in the documents that would have to be filed with the FEC, and there is no indication that any of them are complaining of an intrusion upon their privacy.
In another potentially dangerous move within the same memorandum, Browne is asking people to consider breaking the law that limits campaign contributions to $1,000 by sending Browne's presidential campaign more than the maximum $1,000 that the law allows. In his memorandum, Browne stated, There has to be an actual violation to trigger a judicial review of the law. I don't know where he is getting his legal advice, but Browne is wrong. He could instead seek a declaratory judgment asking the court to declare the law that limits campaign contributions to $1,000 unconstitutional, a legal action that would have the advantage of not exposing Libertarian Party members and others to potentially grave consequences.
Equally important, why shouldn't Browne and Willis (who for now is serving as Browne's campaign manager instead of Sharon Ayres) voluntarily disclose what they have done with the estimated $1 million they have collected over the last 3 years before they ask people to break the law on their behalf or even to send them more money? How would a detailed disclosure of what has happened to the money violate the privacy of donors?
(Note: Unfortunately, in his memorandum, Browne did not advise people to secure legal advice from their own attorney before following him and Willis into this potentially extremely dangerous legal quagmire. This might be a prudent thing for people to do, rather than rely on the legal advice of Browne's attorney, who should have advised Browne that under conflict of interest principles, he (Browne's attorney) is precluded from giving legal advice to both Browne and the people who would be breaking the law on Browne's behalf.)
Finally, in his memorandum, Browne directed people to the following website for the purpose of making donations to help him in his upcoming legal battle against the FEC: http://www.webcommanders.com/donate/fec-fund.htm. He might have disclosed (but didn't) that one of the principals in the Web Commanders (whose website is http://www.webcommanders.com) is Jack Dean, whose positions have included head of the Browne for President Exploratory Committee and campaign spokesman for the Bergland for LP national chair campaign. Browne also might have disclosed (but didn't) that from March 1999 through October 1999, under the leadership of David Bergland (as LP national chairman) and Steve Dasbach (as LP national director), the Libertarian Party disbursed the sum of $28,605.00 for Internet services to the Web Commanders.
Mr. Hornberger has delivered speeches at many Libertarian Party conventions and has served multiple terms on the LP Platform Committee. This article represents his views and not the views of The Future of Freedom Foundation, where he serves as president.
EXHIBIT A -- LP DISBURSEMENTS TO PERRY WILLIS, OPTOPIA, AND STEPHANIE YANIK
Perry Willis 3092 S. Glebe Road Arlington, VA 22206
Optopia 3092 S. Glebe Road Arlington, VA 22206
Stephanie Yanik 3092 S. Glebe Road Arlington, VA 22206
Recipient -- Purpose of Disbursement -- Date -- Amount
1997
Perry Willis -- Payroll, Travel, & Supplies -- 1/8/97 -- $2,193.60 Perry Willis -- Payroll, Travel, & Supplies -- 1/22/97 -- $2,644.59 Perry Willis -- Payroll, Travel, & Supplies -- 2/5/97 -- $2,419.08 Perry Willis -- Payroll, Travel, & Supplies -- 2/19/97 -- $2,419.08 Perry Willis -- Payroll, Travel, & Supplies -- 3/5/97 -- $2,419.08 Perry Willis -- Payroll, Travel, & Supplies -- 3/13/97 -- $5,000.00 Perry Willis -- Payroll, Travel, & Supplies -- 3/19/97 -- $2,419.08 Perry Willis -- Payroll, Travel, & Supplies -- 4/2/97 -- $2,419.08 Perry Willis -- Payroll, Travel, & Supplies -- 4/16/97 -- $2,419.08 Perry Willis -- Payroll, Travel, & Supplies -- 4/24/97 -- $713.36 Perry Willis -- Payroll, Travel, & Supplies -- 4/30/97 -- $2,419.08 Perry Willis -- Payroll, Travel, & Supplies -- 5/14/97 -- $2,419.08 Perry Willis -- Payroll, Travel, & Supplies -- 5/28/97 -- $2,419.08 Perry Willis -- Payroll, Travel, & Supplies -- 6/11/97 -- $2,419.08 Perry Willis -- Payroll, Travel, & Supplies -- 6/25/97 -- $2,419.08 Perry Willis -- Payroll, Travel, & Supplies -- 7/9/97 -- $2,419.08 Perry Willis -- Payroll, Travel, & Supplies -- 7/23/97 -- $2,419.08 Perry Willis -- Payroll, Travel, & Supplies -- 8/6/97 -- $2,419.08 Perry Willis -- Payroll, Travel, & Supplies -- 8/15/97 -- $2,500.00 Perry Willis -- Payroll, Travel, & Supplies -- 8/20/97 -- $2,419.08 Perry Willis -- Payroll, Travel, & Supplies -- 9/13/97 -- $2,419.08 Perry Willis -- Payroll, Travel, & Supplies -- 9/16/97 -- $2,500.00 Perry Willis -- Payroll, Travel, & Supplies -- 9/17/97 -- $2,419.08
[Perry Willis resigns as LP national director.]
Perry Willis -- Payroll, Travel, & Supplies -- 10/1/97 -- $2,419.08 Perry Willis -- Payroll, Travel, & Supplies -- 10/8/97 -- $1,500.00 Perry Willis -- Payroll, Travel, & Supplies -- 10/15/97 -- $2,419.08 Perry Willis -- Payroll, Travel, & Supplies -- 10/29/97 -- $2,609.85 Optopia -- Consulting -- 10/29/97 -- $10,000.00 Perry Willis -- Payroll, Travel, & Supplies -- 11/12/97 -- $5,795.00 Optopia -- Consulting -- 11/14/97 -- $3,076.80 Optopia -- Consulting -- 11/26/97 -- $3,076.80 Perry Willis -- Payroll, Travel, & Supplies -- 12/10/97 -- $5,843.87 Optopia -- Consulting -- 12/10/97 -- $2,103.80
1998
Optopia -- [blank] -- 1/7/98 -- $3,076.80 Optopia -- [blank] -- 1/22/98 -- $3,076.80 Optopia -- [blank] -- 2/2/98 -- $3,076.80 Optopia -- [blank] -- 2/18/98 -- $3,076.80 Optopia -- [blank] -- 3/4/98 -- $3,076.80 Stephanie Yanik -- Payroll -- 3/17/98 -- $169.50 Optopia -- [blank] -- 3/18/98 -- $3,076.80 Stephanie Yanik -- Payroll -- 3/18/98 -- $227.51 Stephanie Yanik -- Payroll -- 3/27/98 -- $174.00 Stephanie Yanik -- Payroll -- 4/1/98 -- $506.23 Optopia -- [blank] -- 4/14/98 -- $615.36 Stephanie Yanik -- Payroll -- 4/15/98 -- $505.85 Stephanie Yanik -- Payroll -- 4/29/98 -- $336.20 Optopia -- Consulting -- 4/30/98 -- $3,724.00 Optopia -- [blank] -- 6/30/98 -- $2,568.80
[David Bergland elected LP national chairman and Steve Dasbach appointed LP national director.]
Optopia -- Consulting -- 7/17/98 -- $4,219.76 Optopia -- Consulting -- 11/13/98 -- $4,172.09
1999
Optopia -- Direct Mail Consulting -- 3/1/99 -- $1,599.01 Optopia -- Direct Mail Consulting -- 6/29/99 -- $3,000.00 Optopia -- Direct Mail Consulting -- 7/27/99 -- $6,909.47
EXHIBIT B -- LP DISBURSEMENTS TO LIAMWORKS AND HARRY BROWNE
LiamWorks P.O. Box 2165 Great Falls, MT 59403
Harry Browne 2825 Sawyer Bend Road Franklin, TN 37069
Recipient -- Purpose of Disbursement -- Date -- Amount
[David Bergland elected LP national chairman and Steve Dasbach appointed LP national director, 7/5/98.]
LiamWorks -- Books -- 9/23/98 -- $2,306.78 LiamWorks -- Books -- 1/5/99 -- $1,711.20 LiamWorks -- Books -- 4/9/99 -- $1,025.05 LiamWorks -- Books -- 6/12/99 -- $2,000.00 LiamWorks -- Books -- 7/12/99 -- $372.00 LiamWorks -- Books -- 7/14/99 -- $1,718.45 LiamWorks -- Books -- 9/2/99 -- $1,718.45 LiamWorks -- Books -- 9/22/99 -- $328.00 LiamWorks -- Books -- 10/1/99 -- $36.00 LiamWorks -- Books -- 10/11/99 -- $873.40
Harry Browne -- Consulting -- 1/17/97 -- $600.00 Harry Browne -- Consulting -- 2/11/97 -- $100.00 Harry Browne -- Consulting -- 2/12/97 -- $400.00 Harry Browne -- Consulting -- 5/20/97 -- $1,226.22 Harry Browne -- Consulting -- 10/1/97 -- $128.00 Harry Browne -- Consulting -- 10/14/97 -- $371.65 Harry Browne -- Consulting -- 7/29/98 -- $328.73 Harry Browne -- Consulting -- 3/29/99 -- $386.00
EXHIBIT C -- LP DISBURSEMENTS TO ORPHEUS PUBLICATIONS
Orpheus Publications 1773 Bahama Place Costa Mesa, CA 92626
David Bergland 1773 Bahama Place Costa Mesa, CA 92626
Sharon Ayres 1773 Bahama Place Costa Mesa, CA 92626
Recipient -- Purpose of Disbursement -- Date -- Amount
1997
Orpheus Pub. -- Printing -- 2/11/97 -- $2,000.00 Orpheus Pub. -- Printing -- 4/2/97 -- $1,000.00 Orpheus Pub. -- Printing -- 6/9/97 -- $1,000.00 Orpheus Pub. -- Printing -- 7/1/97 -- $1,000.00 Orpheus Pub. -- Printing -- 7/29/97 -- $1,000.00 Orpheus Pub. -- Printing -- 8/26/97 -- $1,000.00 Orpheus Pub. -- Printing -- 9/4/97 -- $3,456.93 Orpheus Pub. -- Printing -- 9/11/97 -- $3,466.71
[Perry Willis resigns as LP national director.]
1998
Orpheus Pub. -- Printing -- 1/9/98 -- $1,282.00
[David Bergland elected LP national chairman and Steve Dasbach appointed LP national director.]
Orpheus Pub. -- Printing -- 8/19/98 -- $1,325.64 Orpheus Pub. -- Printing -- 11/09/98 -- $1,320.24
1999
Orpheus Pub. -- Printing -- 2/12/99 -- $2,200.40 Orpheus Pub. -- Printing -- 3/29/99 -- $1,759.44 Orpheus Pub. -- Printing -- 6/15/99 -- $8,661.13 Orpheus Pub. -- Printing -- 6/29/99 -- $436.82