Super PACs meet solo PACs

By Jack Gillum

Associated Press

Published: Saturday, Oct. 20 2012 11:51 a.m. MDT

FILE - In this Sept. 13, 2012 file photo, New York City Mayor Michael Bloomberg speaks at a news conference in New York. The latest trend in an election year marked by gushers of money? Big spenders going solo to spread a message, with Bloomberg setting aside $10 million of his personal fortune to help elect moderate candidates around the country.

Seth Wenig, File, Associated Press

WASHINGTON — The latest trend in an election year marked by gushers of money? Big spenders going solo to spread a message.

A billionaire investment broker is doling out millions to run a minute-long national ad telling Americans that he's voting Republican because the country is on a march toward socialism. New York City Mayor Michael Bloomberg has set aside $10 million of his personal fortune to help elect moderate candidates around the country. The founder of a Pennsylvania waste collection company is bombarding his state with mailings and billboards ripping Democratic President Barack Obama.

"I'm tired of my money going in with a pool of others," said Scott Wagner, the founder of Penn Waste Inc. and a high-dollar GOP donor branching off on his own. "I don't need some other organization distorting or not really standing up for the same message. I want my message out there."

There's no shortage of portals for that money, especially with the explosion of third-party groups — commonly known as super political action committees — that are raising and spending jaw-dropping millions upon millions. Candidates and political parties are foraging for every dollar, too, to pay for organizers on the ground, get-out-the-vote calls, glossy literature and, of course, wall-to-wall TV ads.

Thanks to recent federal court decisions, lax campaign finance laws are allowing wealthy individuals to spend millions of dollars each to influence House, Senate and presidential races via super PACs this year. That cash, much of which has been spent on television advertising, has pushed the cost of the presidential race to nearly $2 billion. Congressional races also are racking up a hefty tab.

Still, the go-it-alone efforts are starting to stand out.

An Associated Press analysis of campaign finance data reported to the Federal Election Commission found more than 100 registered super PACs that reporting having only a few individual donors. For some of those groups, just one person accounts for most of the money it receives and then spends, either transferring the cash to other political groups or using it for pricey advertisements.

Interactive Brokers Group founder Thomas Peterffy, a Connecticut billionaire, said he'll sink between $5 million and $10 million into a broadcast campaign. His ad, which is airing mostly on cable and also on network stations in pivotal states, features him speaking while boyhood photos from his native Hungary flash over the screen and he sounds alarms over the path his adopted country is on.

"It seems like people don't learn from the past," Peterffy says in a thick accent, with subtitles on screen to drive the point home. "That's why I'm voting Republican and putting this ad on television."

Peterffy is no newbie to the big-dollar politics. He's given hundreds of thousands of dollars over the last decade to federal candidates and groups, on both sides of the spectrum but predominantly Republicans. He said he usually votes libertarian, but his 2012 giving includes maxed-out checks to Republican nominee Mitt Romney. Leaders of Republican-aligned super PACs are aggressively soliciting his money, but Peterffy said he's not in line with enough of their views.

"I am pro-choice. I am pro-environment," he told the AP last week. "As taxes are concerned, I would like to do away with all deductions and loopholes. To tell you frankly, I wouldn't mind paying a little higher rate if it leads to a balanced budget. This is a very different agenda than they seem to have. That's why I felt the need to go out on my own."

Because Peterffy is acting alone and doesn't mention any candidate, he said his lawyers advised him he won't have to report his spending to federal campaign regulators. Generally speaking, individuals have to report campaign ad expenses to federal regulators only if advocacy is tied to a specific candidate.

Other political freelancers aren't taking chances.

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