Lincoln Project supporters can cut donations, Steve Schmidt resigns

The Lincoln Project, the group of conservatives that caused a stir with viral ads targeting former President Donald Trump, is at risk of losing financial support after one of its founders is accused of sexual misconduct.

Several wealthy donors are planning to cut their support for the political action committee, according to relatives of these financiers. They are paying particular attention to the results of an external investigation to determine if other executives were aware of allegations that co-founder John Weaver harassed several men, the people added.

Shortly after this article was published, Steve Schmidt, another co-founder of the group, resigned from the board after a controversy over the public disclosure of a private direct message on Twitter between the former Lincoln co-founder. Project, Jennifer Horn, and a reporter.

“This direct message should never have been made public. It is my job as a senior executive to accept responsibility for the huge error in judgment that led to it being published,” Schmidt said.

In a letter announcing his resignation, Schmidt apologized to Horn, who recently left the group, and revealed that he had been sexually assaulted by a doctor as a 13-year-old boy in a camp. scouts.

Schmidt, who has denied knowing about the allegations against Weaver until recently, said: “John Weaver put me back to this far away hut with Ray, my scout leader. I’m extremely angry about it. I’m upset. anger because I know the damage he has done to me, and I know the journey that awaits every young man who trusted, feared and was mistreated by John Weaver. “

Several people close to the group’s donors declined to be named because they were concerned about reprisals from Project Lincoln leaders and their allies.

Despite numerous reports to the contrary, The Lincoln Project – whose original members include Senator John McCain’s 2008 presidential campaign leader Schmidt, author and former George HW Bush campaign advisor Rick Wilson and the Conservative lawyer George Conway – has denied knowing about any allegations. misconduct against Weaver until recently. The group condemned Weaver’s behavior on January 31.

Weaver told the New York Times in January that he was a locked up gay man and that he “feels so sorry for these men and everyone and for letting so many people down.”

The Lincoln Project said Thursday that it “retains a leading external professional to review Mr. Weaver’s mandate within the organization and establish both accountability and future best practices for Project Lincoln.”

FBI is also investigating allegations against Weaver, independent says reporter Yashar Ali, who cited sources claiming to be contacted by agents.

The Lincoln Project did not respond to CNBC’s follow-up requests.

The group will need continued financial support if it is to continue to pursue its stated mission of targeting pro-Trump politicians and the former president. The group has reportedly sought to create a media company. He already has an online live show called “LPTV”. A representative of the United Talent Agency, who has reportedly been in talks to boost the group’s media presence, did not respond to a request for comment.

The PAC has raised more than $ 87 million, much of it from several Democratic megadonors. The organization’s leaders were so confident in their fundraising prowess that some organizers told CNBC in May that they were planning to approach billionaire and former presidential candidate Mike Bloomberg for a donation. Records show Bloomberg didn’t end up contributing.

Much of the expense of the Lincoln Project was spent on paying suppliers owned by its executives. The group was founded in December 2019.

Donor Jen Pritzker, a member of the wealthy and influential Pritzker family, has suggested she may stop donating money to the group in light of the allegations against Weaver. Pritzker has contributed to President Joe Biden’s joint fundraising committee and other Democratic groups.

“I believed in Project Lincoln’s mission and supported its efforts to prevent the re-election of Donald Trump,” Pritzker told CNBC in a statement. “As a donor, I believed my donation would be used to further support the goals of the organization. Sexual misconduct is something that cannot be tolerated by any organization. Anyone can be a victim and these allegations must be treated with respect for the law and human rights. “

A spokeswoman for Pritzker’s Tawani companies said Pritzker has yet to make a decision on whether to contribute in the future.

Pritzker donated $ 100,000 to the Lincoln Project in October, according to Federal Election Commission records. John Pritzker, another family member, also gave the group $ 100,000. He did not respond to a request for comment.

Asked by CNBC about whether Jeffrey Katzenberg would stop giving to the Lincoln Project, an advisor to the Hollywood power player didn’t rule him out. “It’s not our goal,” the advisor said in an email. Katzenberg donated $ 100,000 to PAC in August, according to records. Katzenberg was also an important Biden bundler.

Meanwhile, CNBC learned that two previous suppliers to the Lincoln Project would no longer work with the group.

Aaron, Thomas & Associates, who calls himself a political direct mail specialist, received more than $ 90,000 from the group in September, according to records. The company’s work with the group had ceased before Weaver’s allegations arose, but the company decided not to accept further business from the Lincoln Project.

“Absolutely not,” founder Fred Thomas said in response to CNBC’s request to see if he would work with the Lincoln Project again. “When we cited this work, we didn’t even know what it was or who it was about. We ended up selling it to someone else anyway,” he said. added, noting that his company “doesn’t bother to produce negative mail.”

Anedot, a campaign donation processor that was used by The Lincoln Project in the last election cycle, is closing his account with the group, according to a company official who declined to be named.

“Anedot was recently made aware of certain incidents which caused our accounts team to notify the account holder that the account would be closed,” the representative said.

The non-partisan Center for Responsive Politics said that Anedot received more than $ 3 million in fees during the 2020 cycle. Anedot’s representative said he is not disclosing the reasons for closing the accounts. .

As for The Lincoln Project, which grew its media business, CNBC reached out to Zeldavision, a live-streaming production company that has received more than $ 1 million from the group. The company promotes a partnership with the PAC. According to Zeldavision’s website, it also appears to help produce live content for the Lincoln Project.

The firm did not respond when asked if it would support PAC in the future.

Tara Setmayer, who qualifies on her Twitter page as a Senior Advisor and who hosts an LPTV show, said she was “appalled and disappointed” by recent events surrounding Project Lincoln.

“This cannot be tolerated. More to say soon,” Setmayer added.

—CNBC And manganese contributed to this report.