How Deep Are The Newsoms In It?

Authored by Stephen Green via PJMedia.com,

This deep...

It seems impossible — or just too revolting — to keep up with the financial hanky-panky of California Gov. Gavin Newsom and First Partner (gag) Jennifer Siebel Newsom. But thanks to a couple of investigative reporters with stronger stomachs than I have, let's see if I can't put everything you need to know into one easily digestible column.

I love it when other people do my dirty work for me, so let's get started.

"Today, my wife & I joined Donald Trump’s hit list," Newsom practically boasted on Monday.

"He has directed his Department of Justice to investigate us. They have not found a crime — they are simply trying to find one."

Well, let's see what Fox Business anchor Liz MacDonald and my old friend and Red State colleague Jen Van Laar have to say about that.

MacDonald said Tuesday that the DOJ probe "is about California Democrats’ modern-day machine politics," which she described as a "feedback loop of Sacramento-corporate lobbyists-governor/wife nonprofit-behested nonprofit donations-lucrative state contracts-Sacramento."

Don't bother writing all this down — there won't be a quiz at the end of today's column. You're welcome.

"The modern Sacramento machine trades corporate compliance and nonprofit funding/donations for policy access and state business," MacDonald added, and then explained how that grift (allegedly!) worked for the Newsoms:

According to IRS Form 990 disclosures, her nonprofit frequently buys from Siebel Newsom’s for-profit film company—Girls Club Entertainment LLC—writer, producer and director services and the licensing and production rights for her documentaries. Then it sells the docs to the state and public schools. 

 IRS records show that her nonprofit has paid her Girls Club Entertainment LLC roughly $1.64 million for these production and licensing rights since 2012, which includes a steady annual contracting fee of $150,000 since 2018.

TL;DR: Siebel Newsom produced unwatchable propaganda videos for children, for which Democrat-dominated schools then paid her handsomely. Or as MacDonald summed it up, "Over the past decade, Siebel Newsom has collected over $3.7 million in combined personal salary and LLC payouts funded by the nonprofit."

Then there are behested payments, which MacDonald explained are "a unique mechanism in California politics where an elected official asks a corporation, labor union, or wealthy individual to donate money to a specific charity, nonprofit, or government program." Unlike campaign donations, there are no caps.

As governor, Newsom requested a record $226 million in behested payments in one year.

"Hundreds of thousands of dollars went to the California Partners Project," MacDonald wrote, "a nonprofit founded by his wife."

"Many of the biggest donors were corporate giants (like health insurers and utility companies) actively bidding for lucrative state contracts or fighting state regulations."

One hand washes the other with filthy lucre, if you'll allow me to mix metaphors. 

Which brings us to Jen Van Laar, and her hip-deep-in-the-muck wade through the Newsoms' finances, going back years.

Way back in 2021, Jen asked, "Somebody Paid $3.7 Million Cash for CA Gov Newsom's Estate - But Who?" But couldn't come up with any satisfactory answers. That's because the Newsoms alternately claimed that "the Newsoms’ cash was used to purchase the home but was done through an LLC managed by his first cousin," or that "Newsoms obtained a loan… to purchase the home because the sale happened so quickly that they didn’t have time to obtain a mortgage."

Then, California's First Couple played similar LLC games, buying a second home for $9.1 million in ritzy Marin County. "Based on my examination of 15+ yrs of Newsom's financial disclosures, tax returns, and real estate transactions," Jenn explained in March, "they absolutely did not have $9.1M in cash."

Clearly, somebody did.

The shenanigans were so egregious that — no matter what TDS nonsense Newsom's social media team posts on X — the DOJ investigation began under the Biden administration. As I quipped on Instapundit this week, maybe Newsom needs to take a break from social media and lawyer up. 

Then there are the real-world effects, the fallout from personal corruption and statewide, one-party rule.

On Tuesday, Victor Davis Hanson wondered if California is "reaching critical mass," thanks to one-party rule creating a "neo-feudal society" that is "hardly democratic." The most egregious example was the fate of 2014's Proposition 1, a $7.12 billion water bond "designed to solve the state’s chronic water storage deficit."

Even though Prop 1 is an actual constitutional amendment, including "$2.7 billion specifically designated for new reservoirs," an alliance of bureaucracies, elected officials, and green activists still managed to block any new reservoir construction.

"Adding insult to injury," Hanson continued, "Governor Gavin Newsom instead used $250 million from the Proposition 1 fund to blow up four dams on the Klamath River."

Californians voted for more water infrastructure. Newsom's party blocked them, and Newsom himself had four dams destroyed that had "once provided storage, electrical generation, recreation, and flood control."

Tell me again about Muh Democracy™.

All of which is my long-winded way of concluding that, as corrupt as the Newsoms appear to be, they are merely a symptom of the progressive disease killing our once-greatest state.