In this February 26, 2007 file photograph, Charles Koch, head of Koch Industries, talks passionately about his new book on Market Based Management.
Bo Rader | Tribune News Service | Getty Images
The libertarian political advocacy group Americans for Prosperity, which is backed by billionaire industrialist Charles Koch, has been rocked by an alleged extramarital affair involving a departing leader, as well as an exodus of key network donors while the organization undergoes major changes.
CNBC also has learned that Arlington, Virginia-based Americans for Prosperity, which has more than 3 million volunteers spread across 35 states, recently quietly settled a lawsuit alleging gender discrimination and retaliation in the group's North Carolina branch.
In response to this story, the group's spokesman Bill Riggs told CNBC that they found an "amicable resolution" in the lawsuit and defended the organization's workplace environment as "respectful, rewarding, and inclusive."
This week, Tim Phillips announced he was resigning as president of Americans for Prosperity after 15 years at the helm, citing what he called "challenging personal matters."
Phillips is said to have had what's described as an extramarital affair with a Virginia-based Republican official, according to multiple people familiar with the matter. These people declined to be named in order to speak freely about a private matter.
Claims of the affair came after Americans for Prosperity announced it had conducted an internal investigation into Phillips.
The group would not confirm or deny to CNBC what it had uncovered during the probe of Phillips. Instead, it provided the same statements that it to the Washington Examiner, which first reported Phillips was quitting.
Phillips said in a statement provided by the group: "This morning, I announced my resignation as president of Americans for Prosperity in order to focus on some challenging personal matters that require my full attention. It is difficult to leave this organization, but doing so now is in everyone's best interest."
Phillips did not return repeated requests for comment from CNBC.
"While the underlying issues were personal in nature,it was a matter of integrity that violated our principles," said a person within AFP who is familiar with the matter.
"AFP's internal investigation did not uncover any financial malfeasance. This was a personal issue and did not, to our knowledge, impact anyone else internally at AFP," the person said.
This person chose to speak on the condition of anonymity in order to openly discuss broad themes of what Phillips allegedly did.
With Phillips gone, there remain only two board members listed on the 501(c)(4) nonprofit group's website, including Mark Holden, who is listed as chairman. The group's CEO, Emily Seidel, is also a member of the board. AFP's 2020 990 tax disclosure lists at least six board members prior to the resignations.
In an internal announcement late last year, which has gone previously unreported, the organization said that two board members resigned from AFP's board. Frayda Levy, one of the board members who resigned, had been listed as the board's chair on previous tax disclosure forms. Jim Miller, who has ties to the Koch-backed Citizens for a Sound Economy, also resigned from the AFP board.
The announcement said that Levy would continue as a donor partner and active participant in AFP's New Jersey branch. Those leaving the board were moving on to have an active role on a formal advisory committee.
Several major donors have stepped away from financing Koch backed organizations as they have adjusted their political messaging during the administration of former President Donald Trump.
AFP has been backed by Koch and Republican-leaning donors for more than 15 years.
Its 990 tax filing for 2020 shows the group raised just over $58 million that year and had net assets of about $3 million by the end of it. AFP, like other similar nonprofits, does not publicly disclose the names of its donors. It finished 2020 with more than $64 million in revenue compared with about $54 million it received in 2019.
The Stand Together Chamber of Commerce, another Koch-backed group, disclosed in its 2020 990 form that it donated $40 million to Americans for Prosperity.
The group's spokesman told CNBC that AFP is gearing up for the upcoming 2022 elections.
"AFP has grown into a world-class organization with hundreds of staff across 35 state chapters with more donors and more resources than we've ever had before. In 2020, AFP and AFP Action engaged in and won more races than ever before, and we fully expect to exceed those numbers in 2022," Riggs said in an emailed statement.
During former President Barack Obama's administration, the group ran ads targeting the Affordable Care Act, his signature health care law that became known as Obamacare.
The group also saw major victories under Trump, including reformations to the tax code and the appointment of three Supreme Court Justices whom AFP openly supported.
But AFP also clashed with Trump when it came to trade issues such as the implementation of tariffs that the then-president imposed.
And since the start of Trump's administration in 2017, AFP has publicly said it is open to working with Democrats as well as Republicans.
However, during the 2020 election, the group's related but separate super PAC largely backed GOP contenders at the federal level, according to data from the nonpartisan Center for Responsive Politics. This year, it supported Glenn Youngkin in his victory over Democrat Terry McAuliffe in the Virginia gubernatorial race.
Some donors who have previously supported Koch-backed entities have signaled that they are not interested in supporting AFP or Koch-linked groups in the future.
Wealthy businesspeople such as Randy Kendrick, Diane Hendricks, David Humphreys, Bob Luddy and Chris Rufer have suggested to allies that they have no immediate plans to contribute to a Koch-backed group, according to a person briefed on the matter.
Kendrick could not be reached for comment.
The other donors did not respond to emails seeking comment.
AFP's controversies aren't limited to the departure of Phillips and some donors.
Last year, former AFP official Anna Beavon Gravely sued the group in North Carolina state court for gender discrimination, retaliation and wrongful discharge.
A spokesman for AFP said that the two parties settled the lawsuit amicably.
"We reached an amicable resolution in each matter. AFP is committed to a respectful, rewarding, and inclusive work environment," Riggs said.
Gravely claimed that she did not get a promotion to North Carolina state director in 2018 despite her clear qualifications for the job, which was given to a man with less experience, according to a copy of the complaint obtained by CNBC.
Gravely was eventually fired by the same man who got the job she was gunning for, the suit says.
The complaint takes aim at Phillip Joffrion, who was once a regional director at AFP. The group's public 990 form from 2016 lists Joffrion and says he was paid just over $125,000 that year. He is not listed on subsequent forms.
Joffrion, the suit says, was the authorized hiring manager for jobs that included the group's North Carolina state director post, the job that Gravely hoped to secure permanently after filling it in an acting capacity.
Gravely "was made aware of the existence of prior complaints sounding in gender discrimination and/or sexual harassment," the suit says.
The complaint highlighted a 2017 dinner during which Joffrion allegedly ridiculed Gravely for having a "rigid" personality and critiqued her for being too "process-focused."
Joffrion later told Gravely that one of the reasons she did not get the job was because of a concern related to her humility, according to the lawsuit.
The lawsuit also refers to a separate class-action lawsuit filed against the organization for workplace discrimination.
It is unclear where that purported other suit was filed. The now-former AFP official who is said to be part of that complaint is based in Arkansas.
Shortly after Gravely's lawsuit was filed, AFP moved to have the complaint transferred to North Carolina federal court.
After the case was transferred there, AFP said in a court filing that the group "specifically denies that [Gravely] was subjected to any discriminatory or retaliatory conduct."
Court filings show that Gravely dismissed her lawsuit, with the consent of AFP, dismissed her lawsuit "with prejudice" in late September.
Such dismissals, which bar a plaintiff from refiling the same kind of suit against a defendant, are routinely done in cases where the parties have reached an out-of-court settlement of claims.
Gravely declined to comment to CNBC. Her attorney did not return a request for comment.
View original post here:
- Opinion | 100 Days of Javier Milei - The New York Times - March 27th, 2024 [March 27th, 2024]
- Robert F. Kennedy Jr. flirts with the Libertarian nomination - POLITICO - March 27th, 2024 [March 27th, 2024]
- RFK Jr. in talks to run on the Libertarian Party ticket to ease ballot challenges - Washington Examiner - March 27th, 2024 [March 27th, 2024]
- One Hundred Days of Libertarian Populism in Argentina - The American Conservative - March 27th, 2024 [March 27th, 2024]
- Bylaws and Rules Committee and Platform Committee Survey (Part One) - Libertarian Party - March 27th, 2024 [March 27th, 2024]
- When Will the Libertarian Party Have Its Moment? - Econlib - March 27th, 2024 [March 27th, 2024]
- RFK Jr. in talks to run on the Libertarian Party ticket to ease ballot challenges - Colorado Springs Gazette - March 27th, 2024 [March 27th, 2024]
- RFK Jr. aligned with the Libertarian Party on capitalism stance - NewsNation Now - March 6th, 2024 [March 6th, 2024]
- RFK Jr. fuels talk of switching to the Libertarian Party - Fox News - March 6th, 2024 [March 6th, 2024]
- RFK JR still flirting with Libertarian Party run? Third parties seek ballot access - The Hill - March 6th, 2024 [March 6th, 2024]
- RFK Jr. sparks speculation of switch to Libertarian Party for greater ballot access - Washington Examiner - March 6th, 2024 [March 6th, 2024]
- Nate Silver: Libertarians Are the Real Liberals - Reason - March 6th, 2024 [March 6th, 2024]
- Even immigration is no free lunch - Washington Examiner - March 6th, 2024 [March 6th, 2024]
- Interview with NC Libertarian governor candidate Shannon Bray - Fox Carolina - March 6th, 2024 [March 6th, 2024]
- Libertarians Call for 'Food Freedom' in Response to Amos Miller Farm Search - Lancaster Farming - March 6th, 2024 [March 6th, 2024]
- Where Does the Term Libertarian Come From Anyway? | Jeffrey A. Tucker - Foundation for Economic Education - March 6th, 2024 [March 6th, 2024]
- Here are the 10 Libertarian candidates in the 2024 NC Presidential Primary - Fox Carolina - March 6th, 2024 [March 6th, 2024]
- 2024 Presidential Primary Information: Ballots Have Other Races, See Where to Vote - Watertown News - March 6th, 2024 [March 6th, 2024]
- Argentina's libertarian President Milei warns parliament that he will govern 'with or without' political support - Le Monde - March 6th, 2024 [March 6th, 2024]
- Madison County Introduces First-Ever Libertarian Primary on Super Tuesday - BNN Breaking - March 6th, 2024 [March 6th, 2024]
- Musician and libertarian writer who works for 'The Blaze' arrested on Jan. 6 charges - NBC News - March 6th, 2024 [March 6th, 2024]
- RFK Jr. says he didn't read Alabama IVF ruling, won't say when life begins - The Washington Post - February 26th, 2024 [February 26th, 2024]
- Argentina touts libertarian social justice to Blinken before Javier Milei visits CPAC - Washington Examiner - February 26th, 2024 [February 26th, 2024]
- Robert F. Kennedy Jr.'s Delicate Dance: Navigating Reproductive Rights and Libertarian Principles - BNN Breaking - February 26th, 2024 [February 26th, 2024]
- Javier Milei and the Spanish Tradition of Liberty - Quillette - February 26th, 2024 [February 26th, 2024]
- The Weekly Wrap: Poilievre proves hes more than a live-and-let-live libertarian - The Hub - February 26th, 2024 [February 26th, 2024]
- Why have authoritarianism and libertarianism merged? A political psychologist on 'the vulnerability of the modern self' - The Conversation - January 5th, 2024 [January 5th, 2024]
- Argentina's Javier Milei what are his plans and will they work? - MoneyWeek - January 5th, 2024 [January 5th, 2024]
- Tucker Carlson Issues Scathing Indictment of 'Libertarian Economics' - Reason - December 20th, 2023 [December 20th, 2023]
- Tucker Carlson: "Libertarian Economics Was A Scam Perpetrated By The Beneficiaries Of The Economic System" - RealClearPolitics - December 20th, 2023 [December 20th, 2023]
- A Legacy of Resistance to Unjust Taxation - Libertarian Party - December 20th, 2023 [December 20th, 2023]
- The Croatian Invasion of the Micronation of Liberland - Reason - October 9th, 2023 [October 9th, 2023]
- As RFK Jr. Readies an Announcement Monday, Speculation Is ... - The New York Sun - October 9th, 2023 [October 9th, 2023]
- The libertarian think tank that helped build the 'No' case - The Saturday Paper - October 9th, 2023 [October 9th, 2023]
- Fox Chapel Area voters will choose among two candidates for District 3 school board seat - Yahoo News - October 9th, 2023 [October 9th, 2023]
- Far-right party may hold keys to next Polish government, sets tone in talks with Ukraine - Yahoo News - October 9th, 2023 [October 9th, 2023]
- Aella: Is Porn Too Pervasive? - Reason - October 9th, 2023 [October 9th, 2023]
- Massie: McCarthy Speakership Showdown a 'Referendum' on ... - Reason - October 9th, 2023 [October 9th, 2023]
- ESPN's Pablo Torre explains how Harvard classmate Vivek Ramaswamy was 'That Guy' in school - Yahoo News - October 9th, 2023 [October 9th, 2023]
- DeFi has not followed through on its privacy promises yet - Blockworks - October 9th, 2023 [October 9th, 2023]
- At 50, 'The Machinery of Freedom' Remains an Anarcho-Capitalist ... - Reason - October 9th, 2023 [October 9th, 2023]
- Building the World's First Private Libertarian City - Reason - July 13th, 2023 [July 13th, 2023]
- Libertarian candidates say they were not asked for money to run - Buenos Aires Herald - July 13th, 2023 [July 13th, 2023]
- David Schmidtz and My Dad on Asking the Right Questions - Econlib - July 13th, 2023 [July 13th, 2023]
- Indiana governor's race grows more crowded with addition of ... - The Statehouse File - July 13th, 2023 [July 13th, 2023]
- Revealed: The EU lobbying of the so-called 'Consumer Choice Center' - EUobserver - July 13th, 2023 [July 13th, 2023]
- Why do voters have to pick a Republican or a Democrat in the US? - kinyradio.com - July 13th, 2023 [July 13th, 2023]
- Review: Choose Your Own Adventure in 'American Futures' Book - Reason - July 13th, 2023 [July 13th, 2023]
- Twitter users slam Kamala Harris for airplane bathroom demand amid the ongoing border crisis: 'Really?' - Yahoo News - July 13th, 2023 [July 13th, 2023]
- Fundraisers revel in gutted N.J. pay-to-play law - POLITICO - July 13th, 2023 [July 13th, 2023]
- Utah Gov. Spencer Cox wants to spare kids from their phones - Salt Lake Tribune - July 13th, 2023 [July 13th, 2023]
- Kari Lake in Tucson: "I'm actually eyeing the Senate race" - KGUN 9 Tucson News - July 13th, 2023 [July 13th, 2023]
- Q&A with Gary Swing | Veteran minor party candidate advocates for ... - coloradopolitics.com - July 13th, 2023 [July 13th, 2023]
- Jonah Goldberg: A NeverTrumper's Take on the 2024 Election - Reason - July 13th, 2023 [July 13th, 2023]
- Gov. Lombardo one of few republicans to sign abortion protections ... - KTNV 13 Action News Las Vegas - June 2nd, 2023 [June 2nd, 2023]
- Review: 'Land and Liberty' Charts Henry George's Influence - Reason - June 2nd, 2023 [June 2nd, 2023]
- Polish ref cleared of wrongdoing, will take charge of Champions ... - TVP World - June 2nd, 2023 [June 2nd, 2023]
- The Taliban 20's McCarthy Red Line - Puck - June 2nd, 2023 [June 2nd, 2023]
- Morris: Property: Imagine it anew - Greenfield Daily Reporter - June 2nd, 2023 [June 2nd, 2023]
- Weekend Reading on Women's Representation: Stereotypes Can ... - Ms. Magazine - June 2nd, 2023 [June 2nd, 2023]
- Fox Business Shuts Down Kennedy, Will Replace With Kudlow Reruns - Yahoo Entertainment - June 2nd, 2023 [June 2nd, 2023]
- The 11th commandment | News | vcreporter.com - Ventura County Reporter - June 2nd, 2023 [June 2nd, 2023]
- The Long Afterlife of Libertarianism - The New Yorker - May 31st, 2023 [May 31st, 2023]
- Can McCarthy Pass the Debt Deal and Keep His Job? - The New York Times - May 31st, 2023 [May 31st, 2023]
- McCarthy-Biden Debt Limit Deal Clears First Hurdle in Key House ... - The New York Sun - May 31st, 2023 [May 31st, 2023]
- Libertarian Party of Wisconsin: Libertarians to voters: Let's go ... - WisPolitics.com - April 25th, 2023 [April 25th, 2023]
- How the pandemic challenged libertarianism | Canada's National ... - Canada's National Observer - April 25th, 2023 [April 25th, 2023]
- Colorado falls to 43rd in national highway ranking - The Durango Herald - April 25th, 2023 [April 25th, 2023]
- Are We Stuck In a Plutocratic Formal Organization? An Analysis of ... - Trincoll.edu - April 25th, 2023 [April 25th, 2023]
- Why Is Tucker Carlson Leaving Fox News? - Reason - April 25th, 2023 [April 25th, 2023]
- Despite SCOTUS Ruling Limiting Its Authority, EPA Tries To ... - Reason - April 25th, 2023 [April 25th, 2023]
- Biden's "freedom" pitch and the coming political realignment - The.Ink - April 25th, 2023 [April 25th, 2023]
- Informal dollar reaches AR$497, Fernndez and Massa blame ... - Buenos Aires Herald - April 25th, 2023 [April 25th, 2023]
- Crack-Up Capitalism by Quinn Slobodian review the economic anarchy of Liz Trusss dreams - The Guardian - April 25th, 2023 [April 25th, 2023]
- 2024 Libertarian Presidential Candidates - Who's Running in 2024? - March 2nd, 2023 [March 2nd, 2023]
- 5 things the Libertarian Party stands for | The Hill - February 18th, 2023 [February 18th, 2023]
- Most Libertarian States 2022 - worldpopulationreview.com - December 25th, 2022 [December 25th, 2022]
- Gun Ownership | Libertarian Party - December 25th, 2022 [December 25th, 2022]
- Libertarian Party | History, Beliefs, & Facts | Britannica - December 18th, 2022 [December 18th, 2022]
- The Education of a Libertarian | Cato Unbound - December 18th, 2022 [December 18th, 2022]