The Democratic Attorney General of Washington, D.C., Brian Schwalb, has launched an investigation into conservative judicial activist Leonard Leo and his network. The investigation was reportedly prompted by a complaint from the Campaign for Accountability, a left-wing organization, alleging that Leo has enriched himself through consulting fees within his network of for-profit and nonprofit organizations. The complaint alleges that Leo diverted $73 million in nonprofit cash to his for-profit companies between 2016 and 2021.
Leo, who co-chaired the Federalist Society and served as former President Donald Trump’s judicial adviser, has been a target of Democrats due to his role in shaping conservative judicial appointments.
Leo’s attorney, David Rivkin, has characterized the investigation as politically motivated and without legal or factual grounds.
The Campaign for Accountability, previously a project at the Arabella Advisors-managed Hopewell Fund, has received millions of dollars in funding from groups within the Arabella-managed network. This network includes several funds that act as fiscal sponsors for liberal nonprofits, raising substantial sums of anonymous donor money.
While the complaint against Leo’s organizations focuses on consulting fees, critics have pointed out that Arabella Advisors and its affiliated funds also generate significant revenue through consulting services provided to their nonprofit clients.
The investigation has raised questions about potential conflicts of interest and political motivations, as some involved parties have previous links to left-wing organizations or have targeted Leo due to his conservative affiliations.
Leo’s lawyers have argued that the investigation infringes on constitutional rights, including the First Amendment and equal protection under the law.
Additionally, Democratic senators Sheldon Whitehouse and Dick Durbin have demanded information from Leo and others related to a ProPublica report alleging a luxury fishing vacation involving Justice Samuel Alito and Leo, among others. This demand for information has been met with legal objections from Leo’s lawyers.
Overall, the investigation into Leonard Leo and his network has sparked political and legal debates, with concerns about potential bias and political motivations on both sides.