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Morain: Still pays to follow the money

Tony Russo and Jeff Miller cooked up a grand idea. To carry it off, they needed money, lots of it.

For the same reason Willie Sutton visited banks, Russo and Miller went to the network controlled by David and Charles Koch. That's where the money is. The billionaire industrialist brothers fund many of the most conservative organizations and campaigns, especially if they are aimed at unions.

In 2011, Russo and Miller were looking for a project for the 2012 election and conjured up a plan they called the California Comeback. The goal was break labor's ability to raise campaign money.

To carry it out, Russo and Miller tapped donors in California but also enlisted the aid of anti-union organizations and individuals in Virginia, Iowa and Arizona that were part of what they called the Koch network.

Details of their plan became public Thursday when the California Fair Political Practices Commission and attorney general settled a yearlong investigation into the source of a mystery $11 million contribution last October to boost Proposition 32, the failed 2012 initiative that sought to restrict labor's ability to raise campaign money.

California authorities levied $500,000 fines on the Center to Protect Patient Rights and Americans for Responsible Leadership, both in Arizona and both part of the Koch brothers' network.

Outgoing FPPC Chairwoman Ann Ravel said she does not know whether the Koch brothers actually spent money in California. State and federal law protects the identities of donors to such groups. But in his deposition given in July, Russo said he was convinced that he was dealing with the Koch network.

"We thought we were dealing with the Koch network," Russo said under questioning by attorneys from the FPPC and the attorney general's office. "I mean, availability of funds never crossed our mind." Russo, no neophyte, has worked for the Irvine Co., the major Orange County landowner, and consulted for the California Chamber of Commerce and Business Roundtable. He's now a consultant in Sacramento.

Miller is one of the most prolific Republican fundraisers in California, though he has moved to Austin, Texas, where he helps Texas Gov. Rick Perry raise money and lure California companies to the Lone Star state.

Russo told the lawyers that a donor to the Koch organizations introduced him to Sean Noble, the Koch's "outside consultant." The point was made clear in the California Comeback, the brochure Miller and Russo handed to potential donors.


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