Karl Rove was ambitious this past election. He spent hundreds of millions of dollars in an attempt to sway people into thinking Mitt Romney was going to win. He was so confident in his ability he even threw a tantrum on air. And now he is under attack by his own party, being thrown under the bus in a blame game. And now it turns out, Karl may have broken the law in his eagerness.
Think Progress has uncovered that Rove’s Crossroads Grassroots Policy Strategies (GPS) is, for lack of a better term, not-legal. Not saying that they’re illegal, but they failed to file the necessary legal paperwork to even exist in the first place.
Crossroads GPS was filed with the IRS as a 501(c)(4) “social welfare organization” located in Virginia. This kind of corporate structure is commonly called a dark money group due to its design to shield donors from any fallout associated with the donations. However, when you check with the state of Virginia, no such organization exists in their database. Per the law in Virginia, any such organization which is to collect $1 million or more in donations must file the proper paperwork and fees before starting operation with the Virginia Department of Agriculture and Consumer Services Office of Charitable and Regulatory Programs. Crossroads GPS did neither.
As a result, the shield which Crossroads GPS was to provide their donors may not apply at all. Failure by Karl Rove to cross his Ts and dot his Is might open him, and all of his donors, up to a legal nightmare scenario. He may have to return all of the money, and even then all the donors would become public knowledge, and he may be facing jail time for illegal solicitation of millions of dollars of donor money. People have gone to jail for far less severe a crime.
Karl Rove appears to have been so assured of victory that trivialities like legal paperwork appear to have not registered with him. Without a Romney presidency, Rove now may be facing an IRS auditor in his future, along with numerous complaints and other legal filings. The story of Karl Rove may make a good movie one day, discussing the hubris of greed and the failings of Objectivism. For now, it is clear that Rove is finished.