An investigation has recently been launched by Washington D.C. Attorney General Brian Schwalb into Leonard Leo’s network of organizations, according to a report by Politico. Leo, a leading member of the Federalist Society, has been identified as a key influence in shaping the federal judiciary over the years. His associations and his participation in non-profit and for-profit organizations have come under scrutiny, amid questions about his growing personal wealth.[1]
Highlighting the uncertainty surrounding the investigation, it has been revealed that one of Leo’s non-profits had paid his for-profit company tens of millions of dollars since he joined the company. This revelation has lead to calls for scrutiny into whether Leo used charities for personal enrichment.[2]
There are several connected entities with whom Leo has had involvement. For instance, Leo was part of the formation or reorganization of two for-profit businesses – CRC Advisors and BH Group – who did work with non-profits associated with Leo. Over five years, BH Group brought in $15 million from the non-profits. Notably, during this time, Leo worked full-time as a vice president at the Federalist Society. This has led to concerns about potential conflicts of interest.
It’s also been reported that many groups receiving contributions from Leo’s “dark money” network hold considerable contracts with his firm, CRC Advisors. In particular, the Federalist Society, paid CRC $3.1 million between 2020 and 2021 for “media training”. The Federalist Society is famous as the preeminent conservative debating society where Leo was executive vice president and still serves as co-chairman.[3]
In a recent development, The 85 Fund, a non-profit fund aligned with Leo, filed paperwork to transition from a non-profit entity in the D.C. region to a for-profit entity in Texas. This move, however, might not necessarily end the investigation.
The result of this probe into Leo’s network of organizations will be of significant interest to legal professionals and stakeholders across the globe.