Lincoln Project supporters can cut donations, Steve Schmidt gives up

In this archival photo from January 20, 2016, John Weaver is shown on a campaign bus in Bow, NH The Lincoln Project was launched in November 2019 as a super PAC that allowed its leaders to raise and spend unlimited amounts of money.

Charles Krupa | AP

The Lincoln Project, the group of conservative operatives that succeeded in viral ads targeting former President Donald Trump, is in danger of losing financial support after one of its founders was accused of sexual misconduct.

Several wealthy donors are considering cutting their support for the political action committee, according to people close to these funders. They are paying special attention to the results of an external investigation into whether other leaders were aware of the allegations that co-founder John Weaver harassed several men, they added.

Shortly after the publication of this article, Steve Schmidt, another co-founder of the group, resigned after the controversy over the public disclosure of a direct private message on Twitter between former Lincoln Project co-founder Jennifer Horn and a reporter.

“This direct message should never have been made public. It is my job as a senior leader to accept responsibility for the tremendous mistake of spreading it,” said Schmidt.

In a letter announcing his resignation, Schmidt apologized to Horn, who recently left the group, and revealed that he had been sexually molested by a doctor when he was a 13-year-old boy in a Boy Scout camp.

Schmidt, who previously denied knowing about the charges against Weaver until recently, said “John Weaver put me back in that distant hut with Ray, my scout leader. I am very angry about this. I am angry because I know the damage he has done to me. , and I know the journey that lies ahead of every young man who has trusted, feared and been abused by John Weaver. “

Several people close to the group’s donors declined to be named because they were concerned about the retribution of Project Lincoln leaders and their allies.

Despite several reports to the contrary, The Lincoln Project – whose original members include Schmidt, head of the late Senator John McCain’s presidential campaign in 2008, George HW Bush author and former campaign adviser Rick Wilson and conservative lawyer George Conway – denied being aware of any allegations of misconduct against Weaver until recently. The group condemned Weaver’s behavior on January 31.

Weaver told The New York Times in January that he was a closeted gay man and “is sorry for these men and everyone and for disappointing so many people.”

The Lincoln Project said Thursday which is “to retain a first-class outside professional to review Mr. Weaver’s management of the organization and establish responsibility and best practices for the Lincoln Project”.

The FBI is investigating the charges against Weaver, too, according to journalist Yashar Ali, who cited sources who claim to be contacted by agents.

The Lincoln Project did not respond to CNBC’s follow-up requests for comment.

The group will need continued financial support if it intends to continue to fulfill its stated mission to target pro-Trump politicians and the former president. Reportedly, the group has sought to form a media business. You already have a live online program called “LPTV”. A United Talent Agency representative, who was reportedly in talks to build the group’s media presence, did not respond to a request for comment.

PAC raised more than $ 87 million, much of it from several Democratic mega donors. The organization’s leaders were so confident in their fundraising capacity that some organizers told CNBC in May that they planned to request a donation from billionaire and former presidential candidate Mike Bloomberg. Records show that Bloomberg did not end up contributing.

A large portion of the Lincoln Project’s spending went to paying suppliers owned by its leaders. The group was founded in December 2019.

Donor Jen Pritzker, a member of the wealthy and influential Pritzker family, suggested that she stop giving money to the group due to the charges against Weaver. Pritzker contributed to the joint fundraising committee of President Joe Biden and other Democratic groups.

“I believed in the Lincoln Project’s mission and supported its efforts to prevent Donald Trump’s re-election,” Pritzker told CNBC in a statement. “As a donor, I trusted that my gift would be used to further support the organization’s goals. Sexual misconduct is something that cannot be tolerated by any organization. Anyone can be a victim and these allegations must be treated with respect for the law. , and human rights. “

A spokeswoman for Pritzker’s Tawani Enterprises said Pritzker had not yet made a decision on whether it would contribute in the future.

Pritzker gave $ 100,000 to the Lincoln Project in October, the records of the Federal Election Commission show. John Pritzker, another family member, also gave the group $ 100,000. He did not respond to a request for comment.

When asked by CNBC whether Jeffrey Katzenberg would stop contributing to The Lincoln Project, a consultant to the powerful Hollywood player did not rule out. “It is not our focus,” said the consultant by email. Katzenberg gave PAC $ 100,000 in August, records said. Katzenberg was also a great packer for Biden.

Meanwhile, CNBC has learned that two previous Lincoln Project suppliers will not work with the group again.

Aaron, Thomas & Associates, who calls himself a political direct mail specialist, received more than $ 90,000 from the group in September, the records show. The company’s work with the group had ceased before Weaver’s claims emerged, but the company decided not to accept any more business from the Lincoln Project.

“Absolutely not,” said founder Fred Thomas in response to CNBC’s question about whether it would work with the Lincoln Project again. “When we cited how to do this job, we didn’t even know what it was or for who it was. We ended up negotiating with someone else anyway,” he added, noting that his company “doesn’t care about producing negative match results.”

Anedot, a campaign donor processor that was used by The Lincoln Project in the last election cycle, is closing its account with the group, according to a company representative who declined to be identified.

“Anedot was recently informed of certain incidents that led our Account team to notify the account holder that the account would be closed,” said the representative.

The non-partisan Center for Responsive Politics says Anedot received more than $ 3 million in fees during the 2020 cycle. Anedot’s representative said he did not disclose the reasons for closing the accounts.

As for Lincoln Project building its media business, CNBC turned to Zeldavision, a livestreaming producer that received more than $ 1 million from the group. The deal promotes a partnership with PAC. According to the Zeldavision website, it also appears to be helping to produce the Lincoln Project’s live content.

The company did not respond when asked whether it will keep the PAC going forward.

Tara Setmayer, who labels herself on her Twitter page as a senior consultant and has already hosted an LPTV show, said she was “discouraged and disappointed” by the recent events surrounding the Lincoln Project.

“It cannot be tolerated. More to say soon,” added Setmayer.

—CNBC’s Dan Mangan contributed to this report.

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