WASHINGTON, Nov.11, 2009

Can a Donation Buy Legislation?

Lots of Cash Has been Raised for Rep. Stephen Buyer's Scholarship Foundation, but So Far No Scholarships Have been Awarded

  • Play CBS Video Video Questions Rise Over Congressman's Charity

    Sharyl Attkisson spoke with Rep. Stephen Buyer (R-Ind.), whose non-profit organization "Frontier Foundation" has yet to award its first scholarship to an Indiana student since its creation 6 years ago, even though it has received hundreds of thousands of dollars in donations.

  • Video Lawmaker's Non-profit Probed

    Rep. Steve Buyer (R-Ind.) is tied to the controversial Frontier Foundation, a 7-year-old scholarship foundation which has yet to actually offer even a single scholarship. Sharyl Attkisson investigates.

  • Rep. Stephen Buyer answers questions about his non-profit scholarship foundation.

    Rep. Stephen Buyer answers questions about his non-profit scholarship foundation.  (CBS)

(CBS)  After repeated requests, Congressman Stephen Buyer finally agreed to sit down for a brief interview with CBS News Investigative Correspondent Sharyl Attkisson.

The subject: a small non-profit he founded in 2003. Who's paying for it and what are they getting in return?

Sharyl Attkisson: Where did the $25,000 to start the foundation come from?

Rep. Stephen Buyer: You know what? I was asked that question and I don't recall.

Attkisson: How can you not know where the $25,000 came from?

Buyer: I don't. Serious. I don't recall.

In fact, six years after the Frontier Foundation started, it's collected more than $800,000. Yet it hasn't spent a penny on scholarships.

It can be difficult to know where Buyer's re-election campaign ends and his Frontier Foundation begins. His campaign and Foundation shared office space. Until August, his campaign manager also ran his Foundation - inviting select donors to golf outings with Buyer at posh resorts.

When nobody from the Frontier Foundation returned our calls, we went to the address listed on their tax forms in Monticello, Indiana and found an empty office.

So we visited Buyer's local Congressional office and staffers there said the Foundation and campaign had just relocated next door.

We knocked on that door, but couldn't get the woman inside to answer.

Buyer told us the Foundation no longer has a physical address.

"I was so focused on making sure that we were legal, that I probably didn't pay as close attention as I should have on, quote, appearances," Buyer said.

Part of that "appearance" problem has to do with the nature of the Foundation's donors.

Attkisson: From what I can tell, all of the donors have interests before committees that you sit on in Congress.

Buyer: Well, the committees in which were, uh, the committees, the corporations in which provided support, like I said, were those original companies. Please do not assume that if a company contributes to the foundation that that's somehow some type of influence upon what I'm about to do.

But that's exactly what Buyer's critics suggest. Consider that he sits on Committees that oversee drugs, tobacco and telecommunications. All of his Foundation donors are from those industries.

After his Foundation received hundreds of thousands of dollars from pharmaceutical interests, Buyer took up a number of pharmaceutical industry priorities and sponsored bills they supported.

After tobacco interests gave generously, Buyer opposed a bill giving the FDA authority to regulate tobacco.

Attkisson: You instead sponsored an RJ Reynolds supported alternative. And RJ Reynolds is a donor to your foundation.

Buyer: I created this. RJ Reynolds didn't create that. Steve Buyer created that.

And then there's his controversial support of smokeless tobacco.

He says it nothing to do with donations from US Smokeless Tobacco Company.

"Trying to match up legislation like that is erroneous," Buyer said. "You should do that Sharyl. I think that it's, I think it's wrong."

As evidence that donors aren't buying his favor, Buyer points out he's against health care reform, which the pharmaceutical industry supports.

But he says he wants to clear up any misunderstanding.

"If any process mistakes were made, I am sorry and I will correct them," Buyer said.

We would have asked more questions but Buyer had to rush out to a Congressional meeting.

After our interview, a Foundation spokesman emailed us to fill in the blank on where the $25,000 to start Buyer's Foundation came from: the pharmaceutical lobby PhRMA.

As for awarding scholarships--the whole point of Foundation-- they say they're waiting until they raise a million dollars and are self-sustaining.


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by cbsblogger November 24, 2009 12:12 AM EST
Why aren't we seeing much more of this on the media instead of hearing 50 times a day that Oprah is retiring?
Reply to this comment
by chadalenduff November 18, 2009 11:44 AM EST
I heard about this on CBS News, but heard nothing from local media such as WLFI News Channel 18, The CBS Affiliate based in Lafayette, Indiana, or the Lafayette paper: The Journal and Courier. How about sending a Tape to WLFI, as not many people know about this, and it needs to get out there here locally, so people know!!! Here is WLFI-TV's Address: 2605 Yeager Road, West Lafayette, Indiana 47906; or call them at (765)463-1800!!!
Reply to this comment
by wakeupall November 18, 2009 12:39 AM EST
Why has no one investigated the Robert Wood Johnson Foundation? They were created by the founder of Johnson and Johnson with JnJ stock. They buy laws with grants that force the need for their products (smoking bans=Nicoderm/Nicorette, obesity=Splenda/Ethicon Endo Bariatric Surgery Company). CEO Risa Lavizzo-Mourey has seen more of President Obama than his kids have since he's taken office. The Baucus bill has buried in it a 1 billion dollar tax break for drug companies in New Jersey (bingo) yet where's the pay czar on J&J CEO William Weldon's TAKE HOME SALARY LAST YEAR OF 29.4 MILLION DOLLARS. Johnson and Johnson made 63.7 BILLION dollars and they get a tax break? Who do you think is THICK in the health insurance overhaul? My God, people. Wake up. Foundations are created to funnel "grants" to others to do lobbying. RWJF gave the ACS "grant" money to get Medicaid (or Medicare) to pay for their patches and gum (which, by the way they have the market cornered on). Why do you think nicotine REPLACEMENT patches and gum were in the stimulus bill? PAYBACK. Why are we getting emails telling us to tell Congress to pay for the PATCHES and GUM?

Get a clue. Foundations are nothing more than money laundering operations. And then they pressure Congress to give them more money. Make them start spending more of THEIR precious money on the reasons they were tax exempt in the first place. Which brings me to another question. Why is it the American Cancer Society pays no property taxes? They lobby for laws. How does that give them tax exempt status?

I'm just asking....
Reply to this comment
by TJphoto November 16, 2009 10:55 AM EST
If you give money to anyone, do you not expect something in return for it? These people are no different. They know if they do not take the money and do want these "interests" want, the money will go to someone who will and more than likely that someone is running against them. Why are we so shocked at this? It will take an act of Congress to eliminate money from politics and that's not going to happen unless we the voters demand it by voting them all out at the same time.
Reply to this comment
by Virgil-1 November 13, 2009 10:15 AM EST
This donation word is used more than the F word!
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by b-radleyriley November 13, 2009 3:02 AM EST
Amazing reporting! More amazing reports by Ms. Attkisson please!

Best investigative journalism I have seen in a long time. Great job.
Reply to this comment
by b-radleyriley November 13, 2009 3:01 AM EST
Amazing reporting! More amazing reports by Ms. Attkisson please!

Best investigative journalism I have seen in a long time. Great job.
Reply to this comment
by lucymercer November 12, 2009 10:46 PM EST
I just saw CBS's answer to Rachel Maddow on RACHEL MADDOW! Maddow showed excerpts from CBS's Sheryl Attikkison's interview with Buyer and she is absolutely amazing! She definitely kept probing and probing him when a lesser person would have folded and changed the subject. Attkisson (sp?) could certainly lure me away from cable news. She is just the most impressive interviewer I have seen since well, since Rachel Maddow. DO something with her. You have a potential young, female Mike Wallace on your hands. DO something with her. Wow!
Reply to this comment
by foundation3 November 12, 2009 9:54 PM EST
It?s not a Democrat or Republican problem; it is a fundamental flaw in the ?Foundation? system. Basically you set up a ?community Foundation? under the umbrella of a state ?community Foundation? you them get to ?donate? tax free funds and assets to your foundation. Then you can ?grant? funds to other ?foundations or not for profits? where there is no accounting or oversight on how the funds are spent. Obama?s plan to raise taxes on higher incomes will drive more funds into the ?Foundation? tax shelter scheme. By using sub-contractors to perform services for ?not for profits? it is the perfect vehicle to move money with no accountability. If you look at the stimulus bill and the Health care bill you will see billions going to ?other partners and not for profits?. Check back and see how much Acorn was going to get for census work, multiply that by 500 and you will get an idea of how much money will be dropped into the unregulated ?foundation? washing machine. See http://community.kmtr.com/forums/821/ShowForum.aspx ? under Foundation Trilogy for a long narration on how in Oregon a Lane County Commissioner, Faye Stewart, used his position as board member of a ?not for profit and Lane County Commissioner with ties to the ?Community Foundation? system to hinder investigation into ?invoicing the federal government for services not rendered?. The ?not for profit? that he sat on the board was granted federal housing funds by the board of county commissioners that he sat on. Lane County used 2 known bogus documents to remove a disabled minority woman from the federal funded housing program. Then the landlord started shooting at her. 14 times over a 2 week period with a shot gun. Video online at http://www.youtube.com/watch?v=nQQ4ystsAWo
The Lane County DA?s office, funded by the commissioners, refused to prosecute even though they had a video and a statement from the landlord?s lawyer stating that he was shooting at the tenant. The ?investigation? of fraud by the ?not for profit? was conducted by the people who granted the federal money. They investigated themselves and decided that they did not break the law. That same setup of counties setting up ?not for profits? and then funneling federal funds into them with no oversight is what Obama is fighting so hard to get into the health care bill. If you are one of the chosen you can get federal funds to set up an medical information ?not for profit? have a local politician push your 501c3 status through fast and be in business to get massive health care money to operate a website that refers to other on-line information. The funds, which will be given in a lump sum, will be put into a ?community Foundation? pooled investment account. Do a google search on ?community foundation? and any state name and you will see a pyramid structure with over 100 ?not for profits? and hundreds of ?family fortunes? that will be replenished with fed funds. If this scheme is actually being practiced it would be the answer to how to keep a ponzi scheme going, replenish the pool with federal funds and tax sheltered money. This is all speculation until after the RICO based trial I am in the process of filing in Oregon.
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by purduepete80 November 12, 2009 9:39 PM EST
Isn't it funny that anytime you blog anything in opposition the paid bloggers jump into the fray? No deerbre, ksmith, and all you others out there, I am not a paid Buyer blogger. No I am not a lobbyist just someone who has lived in one of the towns he represents. My largest complaint is the difference between what was shown on national tv and what is on this website. The lead shown on the evening news was nothing short of a hook and totally sensational - congratulations CBS you captured my interest enough to come to your website. And now while I've got yours - how's about the money trail leaving Tony Rezko's house? Or is it just another case of Chicago (or as we say here in Indiana - Lake County) politics?
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by deerbre November 12, 2009 8:09 PM EST
Congressman Buyer made a term limit pledge when he was first elected in 1992. Three term limit. Untruthful from the start.
Reply to this comment
by deerbre November 12, 2009 8:04 PM EST
Congressman Buyer--"It's not my Foundation." But it is.
Congressman Buyer--"My family members have not been paid by the Foundation"--But your daughter was.
Congressman Buyer--"I was called to active duty in Iraq in 2003"--But you weren't ever called to active duty. You just took a paid leave of absence from Congress in your home in Monticello.
Congressman Buyer--"I didn't enjoy the golf." Two golf outings with lobbyists paid by the charity in 2008 to get only 6 donations for the Foundation.
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by lucymercer November 12, 2009 10:51 PM EST
Buyer was busted by Attkisson, totally and irredeemably. She is a star waiting to be discovered!
by jskul November 12, 2009 7:21 PM EST
if he wanted to wait until he got one million dollars to make his foundation self sustaining,why didnt he explain that to the public so there would not be any misunderstanding? sounds to me like another devious scum bag.
Reply to this comment
by lightningF November 12, 2009 2:59 PM EST
another Dumb Democrat? I thought Chris Dodd was Stupid,for saying he did not know that VIP treatment was special,but now I am beginning to wonder how many Dumb Democrats there are in Washington?
Reply to this comment
by mizerello November 12, 2009 10:06 PM EST
Excuse me lightningF but Buyer is a republican. And, I congratulate Attkisson for doing her job as a reporter. The facts usually don't bode well for the right and it's then that you all start screaming that the "liberal media" is after you. The fact is that this man is a player, plain and simple.
by gapeach123 November 13, 2009 12:43 AM EST
Sorry....He's an Republican(IN-district 4)....you mean another dumb republican..!!!
by mollydtt November 12, 2009 2:56 PM EST
Of course! Politicians have mastered the art of the interview. They can lie and almost make you believe they aren't crooks.
They are really good at it.
Reply to this comment
by Oregon_State_OSU November 12, 2009 2:41 PM EST
Can a Donation Buy Legislation?

ASK ANY REPUBLICAN AND THE ANSWER IS,,,,,,,YES

Just look at the Big Drug Companys and look at who is getting donations and look how they vote on the health care bill, its the same with Big OIL.
Reply to this comment
by Oregon_State_OSU November 12, 2009 2:43 PM EST
Sorry Have to Be Fair > Democrats also have their hand in the Cookie Jar but Republicans usually get busted for it lately.
by antoniof123 November 12, 2009 2:49 PM EST
The reason why the Republicans are getting bustted for it is because so many are involved in it. Democrats are too stupid to do it right. I mean this guy is a joke does he really belive he doesn't know where the money came from or that he is in bed with the major corporations of the country.

Hey thats facism, what else is new when business have more rights and protection then people.
by lightningF November 12, 2009 2:56 PM EST
You must be a Charlie Rangel Fan?
by endurorob_5 November 12, 2009 11:13 AM EST
I have to commend CBS on some real investigative jounalism. This guy needs to go but he is just a small fish. How about tackling some of the big fish like say, John Murtha.
Reply to this comment
by mizerello November 12, 2009 10:14 PM EST
Both parties are involved in this garbage because we don't publicly fund our elections. In addition, we should make it illegal for anyone serving in the Congress and their staff to ever work as a lobbyist after they've served. I'd give you my last month's salary that the only people who would choose to run would actually care about getting something done. Having said that however, to suggest that the Republicans are getting picked on by the media is ridiculous. The fact is that they were in control of Congress from 1994-2007. The number of scandals they were involved in far outpaced the number that the Democrats were involved in over a much longer time and the media fell all over themselves to be nice to them. The media has for years treated the Dems way more harshly than the Republicans. Probably because the right wing echo chamber has been so effective in pushing the propaganda line that the media is liberal. Yeah right! Facts don't seem to bode well for the right and when they're caught, they automatically accuse the media of being liberal. They are forever victims of someone.

I wish that the media would go back to reporting the facts--and stop with the equivalency bull they've engaged in since Reagan. I guarantee you CBS will now include a report on some Democrat and I doubt he or she will have done anything to the degree that Buyer has obviously engaged in. He's a hypocrite and opportunist, plain and simple.
by lakota2012 November 12, 2009 10:56 AM EST
"But that's exactly what Buyer's critics suggest. Consider that he sits on Committees that oversee drugs, tobacco and telecommunications. All of his Foundation donors are from those industries."
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While it is past obvious that this representative is just like many from both parties, beholden to special interests, it only proves how corrupt the entire system has become with money from corporations greasing the wheels. WE THE PEOPLE continue to be the losers!
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by msimamaji November 12, 2009 10:36 AM EST
Who is beyers trying to fool???? BigPharma is opposed to health care reform, and so is Beyers. Look at the people who oppose health care reform. All of them get donations form BigPharma and the health insurance industry. This is another example of the way the GOP is nothing but a bunch of Greedy Old Prostitutes.
Reply to this comment
by endurorob_5 November 12, 2009 11:15 AM EST
And what happend in those closed door meetings Obama had with big pharma. They probably just had a beer or two. Right?
by skyk-2009 November 12, 2009 9:58 AM EST
Wow! Of all the rip offs thought up by the Confederate Party THIS has to top the heap!!
Reply to this comment
by endurorob_5 November 12, 2009 11:14 AM EST
Wow! Another liberal that lives in the fantasy land where only republicans are corrupt.
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