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Gabe Kaminsky, Investigative Reporter


NextImg:Liberal dark money-linked Supreme Court group slapped with IRS complaint

EXCLUSIVE — A liberal dark money-linked advocacy group calling for Supreme Court "transparency" is being accused by a conservative watchdog in an IRS complaint of unlawfully overpaying its executive director.

Senate Judiciary Committee Republicans have alleged hypocrisy after Gabe Roth of Fix the Court, a nonprofit group helping to lead a campaign demanding Supreme Court justices disclose more about their finances, panicked after unwittingly leaking his group's 2021 and 2022 donors to the Washington Examiner. But because Fix the Court's 2022 tax forms revealed Roth was paid "a whopping 82% of the nonprofit's total revenue," the National Legal and Policy Center is urging the IRS to launch an investigation and revoke the group's tax-exempt status, according to a complaint Friday to the agency.

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"Fix the Court is in need of fixing itself," Paul Kamenar, counsel to the conservative watchdog and filer of the complaint, told the Washington Examiner. "The compensation to its executive director, Gabe Roth, of $167,000, is over 80% of their revenue and double what he was paid in 2021. The IRS should revoke their tax-exempt status or impose a tax on Roth and the board of directors for the excess benefit."

Fix the Court launched in 2014 and was a project of the New Venture Fund, a nonprofit group managed by the for-profit Arabella Advisors, the largest left-wing dark money network in the United States. It became a stand-alone charity in 2021, a year that it paid Roth $79,700 while also pulling in $111,000 from the New Venture Fund and about $290,000 in revenue, tax forms show.

However, Roth's salary ballooned in 2022. While Fix the Court pulled in just over $195,500 in revenue, the executive director was paid more than $162,100. Other board members, including its president Joshua Cohen, a former Democratic National Committee employee, and vice president Michelle Kuppersmith, executive director of the liberal watchdog Campaign for Accountability, were not paid.

Tax-exempt entities "are prohibited from paying their officers and directors an unreasonable or excessive compensation," NLPC alleged in its Friday complaint, which cited Roth's 2022 pay. The complaint also said that Fix the Court apparently had no policy in place for "independent persons" to review and approve compensation for officers during 2022.

"Under IRS rules, that payment constitutes an Excessive Benefit Transaction (EBT) and the recipient must pay an excessive benefit tax of 25%," the watchdog's complaint said. "Moreover, other managers or directors of the nonprofit who approved the payment are liable to personally pay a 10% tax."

The complaint comes weeks after Roth accidentally provided the Washington Examiner with the names of Fix the Court's 2021 and 2022 donors. The director had told the Washington Examiner, "I'm not a good fundraiser. I'm not a good CPA," and later described how he is a "klutz."

"I mean, basically, I've tried to donate money; I have failed," Roth previously said. "I tried to raise money; I have failed. I have only two foundations that give me money, and if their names become public, they're never going to talk to me again, and Fix the Court is over. My screwup this morning probably cost me my job."

The combined 2021 and 2022 donors, whose names are either already public or will be public once other groups share their 2022 financial disclosures, included the New Venture Fund, the William and Flora Hewlett Foundation, which has donated large sums to pro-abortion causes, the Rockefeller Brothers Fund, a liberal group that has bankrolled climate initiatives, as well as the Lebowitz-Aberly Family Foundation and Weinberg McCann Foundation.

Roth's panicked reaction to releasing Fix the Court's contributors was slammed by the likes of Sens. Ted Cruz (R-TX) and Mike Lee (R-UT), who pointed out that Fix the Court has rebuked Justice Clarence Thomas for not disclosing certain gifts, particularly from Texas billionaire and real estate mogul Harlan Crow.

Fix the Court has been cited in a variety of stories on flights that Thomas took on Crow's jet in recent years, and obtained security records in connection to one 2016 trip, according to ProPublica. However, the Supreme Court only tightened gift disclosure rules on March 14, 2023, making it unclear whether Thomas may have violated federal law.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

"This guy is just mad that now we know the identities of some of the people who are trying to delegitimize the Supreme Court and are funding parts of the smear campaign against Justice Thomas," Cruz tweeted on May 18.

Roth did not return a request for comment.