Crossroads GPS: “Forgot”

Crossroads GPS once again attempts to portray Heidi Heitkamp as corrupt, this time in an ad that relies on citations from a right-wing radio host’s website and a Rupert Murdoch-owned editorial page. Crossroads claims Heitkamp engaged in a “pay to play” scheme with “an out-of-state trial lawyer,” but the reality is both less interesting and less insidious than Crossroads suggests. Heitkamp and several other state attorneys general negotiated a multi-state settlement with tobacco companies following years of litigation conducted by private law firms. Those firms did not charge up front for thousands of hours and millions in costs, in exchange for a percentage of any payout they succeeded in winning for the states. Heitkamp’s office did not pay attorney Jack McConnell for his work on the settlement, but he receives a portion of the percentage the states agreed to pay his firm. And while GPS’ biased source claims she ducked questions about the matter, Heitkamp was quite willing to speak to reporters at an actual newspaper in the state.

“Out-Of-State Lawyer” Worked On Tobacco Case For Several States

McConnell Was Outside Counsel To Multiple Attorneys General During Multi-State Negotiations With Big Tobacco

McConnell Worked Directly For States’ Negotiating Team That Included AGs Of Washington, North Carolina, Oklahoma, Pennsylvania, California, Colorado, And New York, In Addition To Heitkamp In North Dakota. From John McConnell’s letter to Sen. Jeff Sessions (R-AL) during his confirmation process:

mcconnell-letter-states

[McConnell Letter via Archive.org, 7/7/10]

Tobacco Settlements Pay Plaintiff’s Law Firms Handsomely, Because Those Firms Bore All The Costs And Risk

Private Law Firms Agreed To Foot The Bill Of Tobacco Litigation, In Exchange For A Percentage Of Amount Recovered If They Won. According to the New York Times, McConnell’s firm “invested thousands of hours and spent $20 million to $30 million to sue tobacco companies on behalf of states, a gamble that looked shaky when the state lawsuits started in 1994. […] In return, state officials signed contracts guaranteeing Ness, Motley and affiliated firms 15 to 25 percent of any recovery.” [New York Times, 12/22/98]

McConnell Received Portion Of The Fees Paid To His Firm, But Was Never Paid By North Dakota. Heidi Heitkamp’s letter appointing John McConnell special assistant attorney general for North Dakota specifies that “you are to serve in this capacity without compensation from this office or the State of North Dakota.” Two oaths of office signed by McConnell also specify he would work “without compensation from the Office of Attorney General.” From John McConnell’s letter to Sen. Jeff Sessions (R-AL) during his confirmation process:

mcconnell-letter-compensation

[McConnell Oath of Office, 1/26/00; McConnell Oath of Office, 4/17/01; McConnell Letter via Archive.org, 7/7/10]

North Dakota Has Received $328 Million Of The $99.5 Billion In Actual Payments To States Under Master Settlement Agreement Since 1998. [Campaign for Tobacco-Free Kids, 9/19/11]

GPS Ad Cites Wall Street Journal Editorial And Right-Wing Website Operated By Talk Radio Host

The ad cites an April 2009 Wall Street Journal editorial as the narrator says “It’s called pay to play.”

Unsigned Wall Street Journal Editorial Acknowledges That “Law Firms Front The Costs Of Litigation,” Alleges Such Deals “Inevitably Raise Questions Of Pay To Play.” From the Wall Street Journal editorial: “Mr. McConnell and his firm helped pioneer the practice of soliciting public officials to bring lawsuits in which the private lawyers are paid a percentage of any judgment or settlement. The law firms front the costs of litigation and are compensated if the suit is successful. But such contingency-fee arrangements inevitably raise questions of pay to play. And private lawyers with state power and a financial stake in the outcome of a case can’t be counted on to act in the interest of justice alone.” [Wall Street Journal, 4/24/09]

The ad cites the Plains Daily on May 4, 2011, three separate times.

PlainsDaily.com Is Part Of Talk Radio Host Scott Hennen’s “Freedom Force Communications.” PlainsDaily.com does not have an “About” page, but according to a May 2011 post on the site: “A long-time entrepreneur in broadcasting and media, Hennen started Freedom Force Communications last August, a rapidly expanding company focusing on communications across a broad spectrum of media, including the PlainsDaily.com news site and the SayAnythingBlog’s opinion and commentary in addition Facebook, Twitter, and of course, ScottHennen.com. Freedom Force Communications is dedicated to the publications and promotion of news and political commentary reaching out across North Dakota, Minnesota, South Dakota and beyond.” [PlainsDaily.com, 5/23/11]

Scott Hennen’s Website Features Links To Concerned Women For America Bus Tour, Radio Interviews With Conservative Media Figures And Congressmen. ScottHennen.com identifies Hennen as “Chairman of the Common Sense Club,” and lists the schedule for his radio show as well as links to previous interviews. On August 16, 2012, the site indicated he would be interviewing Rep. Tom Price (R-GA) “on Democrat attacks on the Ryan budget,” as well as officials of the “ND Family Alliance,” Bill Kristol of the Weekly Standard, and CWA president Penny Nance. Below is a screenshot of the link to CWA’s bus tour from Hennen’s site:

hennen-screenshot

[ScottHennen.com, accessed 8/16/12]

Heitkamp Did Not ‘Refuse To Answer Questions’ About The Case

Crossroads GPS quotes Plains Daily‘s allegation that “Heitkamp is refusing to answer questions” from May 4, 2011, but a Grand Forks Herald article from May 5, 2011, includes numerous quotes from Heitkamp.

Heitkamp Provided 11 Pages Of Documents Showing John McConnell’s Services As Special Assistant On Tobacco Case Was “Without Compensation From The Office Of Attorney General.” According to the Grand Forks Herald: “On Wednesday, Heitkamp provided the pages of the master settlement agreement that refer to ‘Designation of Outside Counsel.’ While other states have outside lawyers named to receive compensation for representation, next to North Dakota is the word ‘none.’ ‘Jack McConnell didn’t receive a dime for any legal work that he ever did for the state of North Dakota,’ Heitkamp said. ‘He served without compensation.’ No one outside of the North Dakota Attorney General’s Office was compensated for the legal work, she said. She said McConnell was appointed special assistant as he was in other states and the appointment carried over under Republican Attorney General Wayne Stenehjem. Stenehjem’s office confirmed Wednesday that McConnell continued as a special assistant until 2009. The office provided 11 related pages of paperwork. Included are oaths of office that state ‘without compensation from the Office of Attorney General’ and are signed by McConnell.” [Grand Forks Herald via NewsLibrary.com, 5/5/11]

  • The Documents Heitkamp Provided On Her Office’s Agreement With McConnell Are Available Online. [NorthDakota.AreaVoices.com, accessed 8/16/12]

AP: After Sen. John Cornyn (R-TX) Accused Her Of “Political Favors” On Senate Floor, Heitkamp Called Allegations “Absolutely Ridiculous.” According to the Associated Press: “A former North Dakota attorney general and governor candidate says a man confirmed by the U.S. Senate as a federal judge in Rhode Island didn’t profit from his work as a special North Dakota assistant in a lawsuit against the tobacco industry. Texas Sen. John Cornyn said John McConnell made contributions to Heidi Heitkamp and her party during the Democrat’s 2000 race for governor after Heitkamp appointed McConnell as a special assistant. Cornyn said there’s nothing wrong with political contributions as long as they aren’t made ‘in connection with no-bid contracts or apparent political favors.’ Heitkamp has documents showing McConnell was not to receive any compensation for his work. She said questions about the matter raised during Senate debate over McConnell’s confirmation were ‘absolutely ridiculous.'” [Associated Press via Nexis, 5/5/11]

[NARRATOR:] What else is Heidi hiding? As attorney general, Heitkamp appointed an out-of-state trial lawyer whose firm got paid millions. Then the trial lawyer’s firm donated tens of thousands of dollars to Heitkamp’s campaign. Now they’re her biggest contributor. It’s called pay-to-play. First Heitkamp dodged questions on the deal, then said the state didn’t pay him. So the lawyer got millions, she got tens of thousands in campaign cash. That’s not the North Dakota way. Crossroads GPS is responsible for the content of this advertising. [Crossroads GPS via YouTube.com, 8/15/12]