MISSOURI HOUSE OF REPRESENTATIVES SPECIAL INVESTIGATIVE COMMITTEE ON OVERSIGHT CHAIRMAN’S MEMO ON THE TEMPLETON FOUNDATION GRANT May 29, 2018 A. THE TEMPLETON FOUNDATION GRANT AND ITS RESTRICTIONS 1. On August 18, 2011, Washington University (University) received notice that the John Templeton Foundation had awarded Grant #20586, “Warriors, Humanitarians, and Survivors: An Investigation into the Production of Resilient Moral Character” (the project) to the University with Eric Greitens as the principal investigator.1 2. The most significant portion of the project was a book manuscript.2 This manuscript eventually became Greitens’ New York Times best selling book “Resillience.”3 3. The total grant award was for $362,083 budgeted, including $80,000 to be paid as salary to Eric Greitens, based on his assertion that he would spend 40 percent of his time working on the project as the principal investigator; $64,000 to Tim Ly as a research assistant, approximately $7,000 for general expenses such as travel, and $60,000 for electronic or media related expenses.4 B. MISREPRESENTATIONS ON HOURS WORKED ON THE GRANT 4. For spending “40 percent” of his time on the project, Greitens was paid $3,333.33 per month from grant funds for the time period of August 2011 to June 2013.5 5. Assuming a full-time position of 40 hours per week, 40 percent of his time on the project required Greitens to spend 16 hours per week working on the project. 6. In 2011, The Mission Continues’ IRS Form 990 listed Greitens as the CEO and stated he worked 50 hours per week for the organization.6 7. In 2012, The Mission Continues’ IRS Form 990 listed Greitens as the CEO and stated he again worked 50 hours per week for the organization.7 8. In 2013, The Mission Continues’ IRS Form 990 listed Greitens as the CEO and stated 1 WU00001-00022 WU00012 3 https://www.amazon.com/Resilience-Hard-Won-Wisdom-Living-Better/dp/0544705262 4 WU00016-00018, WU00072 (for Greitens, stating, “Salary based on a $100,000 twelve month appointment and adjusted to reflect that 40% of my total time will be spent on this project. Thus, my annual salary will be $100,000 x 40% = $40,000.) 5 WU00129. 6 See https://projects.propublica.org/nonprofits/organizations/208742553. 7 See https://projects.propublica.org/nonprofits/organizations/208742553. 2 he worked 40 hours per week for the organization.8 9. In addition to his role as CEO of The Mission Continues, Greitens worked significant hours giving speeches and presentations through The Greitens Group (TGG).9 10. Assuming he only worked 20 hours per week for TGG, Greitens would have been working 86 hours per week in 2011 and 2012, and 76 hours per week in 2013. C. USE OF GRANT FUNDS FOR POLITICAL PURPOSES 11. The grant contract specifically prohibits using “any part” of the grant “to influence the outcome of any specific public election” or “to undertake any activity for any purpose other than one specified in section 170(c)(2)(B)” of the IRS Code.”10 12. Greitens’ initial proposal for the grant and its marketing budget was to “achieve the widest distribution of our findings.”11 A further description of the project indicates that there will be a campaign to “help reach a board and diverse audience.”12 13. A one-page memo on marketing stated:13 14. Greitens engaged four firms for marketing: a. Rubenstein Public Relations, Inc. was described as: 8 See https://projects.propublica.org/nonprofits/organizations/208742553. Tr. AGO Proctor at 19:20 to 20: 3. 10 WU00004 at ¶4.3(b) and (d). 11 WU00073. 12 WU00066. 13 WU00436, WU00441, WU00446. 9 Page 1 of 6 b. MNS Publicity was described as: c. Brass Check Marketing was described as: d. Danny Laub’s company was described as: 15. On September 5, 2015, MNS Publicity sent a Memorandum to Krystal Taylor indicating the purpose of their work on Resilience was not broad or diverse publicity for the book and research. Instead, the memo stated: Page 2 of 6 16. The MNS Publicity Memorandum was agreed to by Eric Greitens himself on November 10, 2014 – with the understanding that their “conservative only” marketing would “begin[] in midFebruary 2015 and wrap[] … in early April[.]”14 This “conservative only” marketing coincided with the official formation of Greitens’ campaign committee and the formal start to campaign activity. 17. On December 1, 2014, Greitens hired political consultant Danny Laub, who testified that the vast majority of his work for Greitens was political in nature.15 18. Laub testified that he worked on a “book tour” for Resilience within the state of Missouri that was funded by a Templeton Grant.16 19. In December 2014. Laub was paid $5,000 directly from Eric Greitens LLC.17 20. In January 2015, Laub was also paid $5,000: $1,750 from Greitens18 and $3,250 from the Templeton grant.19 21. Emails relating to the “book tour” organized by Laub show that, at Greitens direction, his work was focused on political considerations – even regarding promotions of the book for which he was being paid through grant funds. a. In an email series regarding the book launch, Greitens asks Laub about “980,000 Conservatives in MO on Facebook and 640,000 Very Conservative” and “if there is some way to do some targeted advertising that makes sense politically.”20 b. In an email with another potential vendor, Laub states, “What I would like to see is a proposal for targeting Conservatives with whatever ads or combination of ads on 14 WU00438-WU00440 Tr. AGO Laub at 180:24 to 182:25. 16 Tr. AGO Laub at 181:15-21. 17 AGO Laub, Ex. 52; Tr.AGO Laub at 289:6 to 290:2. 18 AGO Laub, Ex. 52; Tr. AGO Laub at 293:4 to 295:12. 19 AGO Laub, Ex. 52; Tr. AGO Laub at 293:4 to 295:12. 20 AGO Laub ,Ex. 43 at 3. Email from Feb. 4, 2015. 15 Page 3 of 6 facebook is best.” He then adds, “My overarching goal is this: use his book + facebook in the most cost-effective way to get in front of eyeballs across Missouri.”21 22. Greitens’ book tour media events benefitted his campaign. For example, Greitens appeared on The Daily Show with Jon Stewart on April 16, 2015 as part of the book tour. At the end of the segment, Greitens announces his interest in running for governor: STEWART: And, I keep thinking to myself, he must be bored to death, isn’t it time, are you gonna, because you’re the type of guy that looks to me like that’s a guy I could see running for office if he didn’t think that that terrible, corrupt process would destroy him. Is that something that you would do? GREITENS: Yes. STEWART: You would do that? GREITENS: I would do that. And in fact we are gonna do it, Jon. I’ve set up an exploratory committee and we’re looking at the governor’s race in Missouri in 2016. Yes. STEWART: I’m excited for you. That’s really exciting. Resilience is on the bookshelves now. Future governor of Missouri Eric Greitens.22 23. On February 3, 2015, Greitens received the benefit of the following amounts paid by the Templeton Foundation for the putative purpose of marketing the book Resilience:23 a. Rubenstein was paid $10,000, for its work, that likely included the appearance with Jon Stewart on The Daily Show; b. MNS Publicity was paid $9,000 for its “conservative only media campaign;” c. Danny Laub was paid $3,250 for work he described as primarily political; and d. Brass Check was paid $6,000 for social media work;24 24. Greitens officially formed his campaign committee on February 25, 2015. 25. On March 26, 2015, Greitens received the benefit of the following amounts paid by the Templeton Foundation for the putative purpose of marketing the book Resilience:25 21 AGO Laub ,Ex. 45 at 1. Email from Feb. 5, 2015. http://www.cc.com/video-clips/xfcrme/the-daily-show-with-jon-stewart-exclusive---eric-greitens-extendedinterview-pt--2 23 WU00133 24 The contract with Brass Check included the name of Jimmy Soni, future speechwriter for Greitens. See WU00449. 25 WU00133 22 Page 4 of 6 a. Rubenstein was paid $20,000; b. MNS Publicity was paid $9,000 for its “conservative only media campaign;” c. Danny Laub was paid $3,250 for work he described as primarily political; d. Brass Check was paid $6,000 for social media work. D. MISREPRESENTATIONS OF INCOME FROM THE GREITENS GROUP IN CONFLICT OF INTEREST STATEMENTS TO WASHINGTON UNIVERSITY 26. Greitens did not disclose to The Templeton Foundation or Washington University with his initial grant application that he had a conflict of interest with The Greitens Group.26 27. In September 2011, Greitens emailed an employee of Washington University to represent that his income from The Greitens Group, which he stated to include a “base salary of $30,000” combined with a bonus that could “bring the total compensation above $50,000.”27 28. On July 12, 2012, Greitens’ conflict of interest form filed with Washington University stated that he earned a base salary of $60,000 annually from The Greitens Group.28 He further stated that he may be eligible for a bonus “contingent upon the profitability of the company” but that he did not “have an accurate estimate of what that amount could be or even if The Greitens Group would be profitable enough that a bonus would be possible for myself or the team.”29 29. On June 14, 2013, Greitens’ conflict of interest form filed with Washington University again stated that he earned a base salary of $60,000 annually from The Greitens Group.30 He further TGG paid “bonuses contingent upon the profitability of the company” but that he did not “have an accurate estimate of what that amount could be.”31 30. On June 30, 2014, Greitens’ conflict of interest form filed with Washington University again stated that he earned a base salary of $60,000 annual from The Greitens Group.32 And again, he stated that he did not have “an accurate estimate” of what his bonus could be.33 31. Greitens did not disclose his employment or income from The Mission Continues in the conflict of interest filing with Washington University. 32. Upon information and belief, Greitens’ income statements on the conflict of interest form 26 WU00476-WU00477. WU00478-WU00479. 28 WU00601-WU00602. 29 WU00601-WU00602. 30 WU00617-WU00618. 31 WU00617-WU00618. 32 WU00628 33 WU00628 27 Page 5 of 6 vastly understated the amount of income he received annually from TGG. In a conversation with former TGG employee Dave Whitman, Chairman Barnes, Ranking Member Mitten, Rep. Austin, and staff attorney Alex Curchin were told that TGG had annual revenues in excess of $1 million for several years. In addition, the Kansas City Star has reported that Greitens charged between $10,000 to $20,000 per speech at The Greitens Group, and former TGG employees Krystal Taylor and Jack Neyens told the Committee that Greitens was constantly traveling for TGG and TMC.34 E. UNKNOWN “OVERHEAD” PAYMENTS 33. In addition to the compensation set forth above, Greitens was paid “overhead” in varying amounts from the grant. This compensation included the following payments after Greitens’ campaign committee had officially been formed:35 Date March 4, 2015 April 3, 2015 May 5, 2015 Amount $4,237.50 $4,837.50 $900 34. Documents received from Washington University to date do not explain these amounts. Records Shine Light on Missouri Candidate Eric Greitens’ Income, Sources; Jason Hancock, Kansas City Star, Nov. 1, 2016, available at: https://www.kansascity.com/news/politics-government/article111904197.html. 35 WU00134 34 Page 6 of 6