LNC Motion to Cancel Freedom Calls Contract Amid Concerning Allegations

Jodi Cole

SLEC Member
I wanted to bring to your attention a motion currently sponsored by our Region 3 Representative, Paul Darr, to cancel the contract between the Libertarian National Committee and Freedom Calls LLC. Given the gravity of the allegations surrounding this contract, I think it’s important for us to understand the situation and its implications for the party’s commitment to transparency and accountability.

For those who may not be aware, Jake Porter has detailed the matter in his recent Substack article, which provides context on the issue. I encourage everyone to review it here: Jake Porter’s Substack.

Paul, could you fill us in on what’s going on and what led to this motion? I’m sure a lot of us would appreciate more context so we can make informed decisions moving forward.
 
Yeah, this came to my attention a few days ago from a former member of my county, and I encouraged him to go to Paul Darr because he is level-headed and may know more. To be really frank, in the tense climate that the party exists in I'm skeptical of any reports of internal corruption from anyone. Not to say this one is false, there are just high tensions that can lead to unconnected dots getting connected into conspiracy theories. On the other hand I trust Paul to be fair and level-headed, and if Paul thinks this is worth diving deeper into, I trust his judgment on the matter. I'm glad we have him to represent us, and I look forward to whatever he has to add to the conversation.
 
I wanted to add something to the conversation about the LNC’s contract with Freedom Calls LLC. A lot of what we’re seeing seems tied to a bigger problem we’ve been hearing about for a while: trust in leadership. Donors are questioning whether their money is being used wisely, and it’s starting to show in some key areas.

For example, here in Texas, our Legislative Action Fund hasn’t been raising as much as we’d hoped. While there are likely multiple reasons for this, it’s worth considering whether concerns about transparency or the handling of funds at higher levels are contributing to donor hesitation. When trust is shaky, it can impact fundraising across the board.

On top of that, we’ve heard from several candidates who’ve struggled to get the resources they need to run effective campaigns. Too often, they’re left footing the bill themselves. It’s frustrating because these are the folks doing the hard work of spreading our message, and they need more support.

Anything that potentially shakes our donor and volunteer base, should be seriously discussed, as those two are the lifeblood of this party.

First and foremost, who actually owns Freedom Calls, LLC? Does the LNC know?
 
Let me preface this by saying that a full investigation by a committee would be necessary to substantiate the events being reported but I will do my best to share what I know of events.

Austin Padgets contract was one of the first items we discussed when I joined the LNC. At that time he had been getting directly reimbursed as a fundraiser by the LNC. With the conflict of interest being reported sometime after he had been working for the LNC. It was determined to end his contract in January 2024.

Mr. Porter has reported that Freedom Calls LLC began being paid for fundraising expenses beginning in February 2024. Reporting from February to November shows Freedom Calls LLC has been paid approximately $4,000 per month totaling $45,600 from February 2024 to November 2024.The Delaware Certificate of incorporation as an LLC shows Austin Padget as the registered agent of Freedom Calls LLC.

Up to this time I have seen no reporting accrediting fundraising from Freedom Calls LLC to the LNC. On that grounds alone I feel it is appropriate to terminate the contract. In addition, I believe there is sufficient information present to show the need to form an Investigatory Committee to substantiate all the claims. If substantiated, this would be sufficient grounds for action by the LNC as the LNC explicitly terminated the contract the following contract is alleged to have been used to circumvent.

I would appreciate any support of the LNC in performing the investigation of these very serious accusations. I do ask people to keep questions professional and understand the restraints I am working with when discussing such a potentially damaging and sensitive matter.
 
Let me preface this by saying that a full investigation by a committee would be necessary to substantiate the events being reported but I will do my best to share what I know of events.

Austin Padgets contract was one of the first items we discussed when I joined the LNC. At that time he had been getting directly reimbursed as a fundraiser by the LNC. With the conflict of interest being reported sometime after he had been working for the LNC. It was determined to end his contract in January 2024.

Mr. Porter has reported that Freedom Calls LLC began being paid for fundraising expenses beginning in February 2024. Reporting from February to November shows Freedom Calls LLC has been paid approximately $4,000 per month totaling $45,600 from February 2024 to November 2024.The Delaware Certificate of incorporation as an LLC shows Austin Padget as the registered agent of Freedom Calls LLC.

Up to this time I have seen no reporting accrediting fundraising from Freedom Calls LLC to the LNC. On that grounds alone I feel it is appropriate to terminate the contract. In addition, I believe there is sufficient information present to show the need to form an Investigatory Committee to substantiate all the claims. If substantiated, this would be sufficient grounds for action by the LNC as the LNC explicitly terminated the contract the following contract is alleged to have been used to circumvent.

I would appreciate any support of the LNC in performing the investigation of these very serious accusations. I do ask people to keep questions professional and understand the restraints I am working with when discussing such a potentially damaging and sensitive matter.
Has the LNC Chair, made any comments since the revelations, confirming or denying, if the Austin Padget on the incorporating documents is the same Austin Padget that is her significant other? While not as common as John Smith, I feel that should be easily spoken on.
 
Has the LNC Chair, made any comments since the revelations, confirming or denying, if the Austin Padget on the incorporating documents is the same Austin Padget that is her significant other? While not as common as John Smith, I feel that should be easily spoken on.
The LNC Chair has declined or ignored multiple inquiries from members of the LNC to clarify if any of the facts are incorrect or bear further explanation.
 
I wanted to add something to the conversation about the LNC’s contract with Freedom Calls LLC. A lot of what we’re seeing seems tied to a bigger problem we’ve been hearing about for a while: trust in leadership. Donors are questioning whether their money is being used wisely, and it’s starting to show in some key areas.

For example, here in Texas, our Legislative Action Fund hasn’t been raising as much as we’d hoped. While there are likely multiple reasons for this, it’s worth considering whether concerns about transparency or the handling of funds at higher levels are contributing to donor hesitation. When trust is shaky, it can impact fundraising across the board.

On top of that, we’ve heard from several candidates who’ve struggled to get the resources they need to run effective campaigns. Too often, they’re left footing the bill themselves. It’s frustrating because these are the folks doing the hard work of spreading our message, and they need more support.

Anything that potentially shakes our donor and volunteer base, should be seriously discussed, as those two are the lifeblood of this party.

First and foremost, who actually owns Freedom Calls, LLC? Does the LNC know?
To date there have been zero concerns expressed to leadership about the handling of funds or transparency at LPTexas in any way that could connect to what we're seeing at national. What has been expressed here over time rather vocally on both sides of the aisle is concern about specific donors dropping out over factional political differences with specific decisions made by leadership. That's a much different problem/solution issue.

Candidates' perceived struggles are also a different issue. LPTexas historically has never done much directly for candidates; in several conversations with people who have been here longer than I have I've been told specifically that it is 'not our job'. The rationale for that is that candidates have to have some kind of pre-existing intrinsic support to even be viable campaigns, and it would be a futile gratuitous waste of resources for us to throw time and treasure at what are basically paper candidates (whether they realize that or not). There is also a legal limit to how much we can "coordinate" with campaigns that becomes an issue. Bottom line though is that candidates need to be able to raise money from their constituents outside the very small bubble of existing LP donors that are trying to keep the party active or they're not viable candidates.

What we can provide for candidates is training, infrastructure, and exposure, and I see our existing staff doing more and having more in the pipeline on that front than I've seen in eight years, so we have that going for us.

On another note, the expectation that LPTexas is supposed to be doing a lot for candidates (leading to disappointment that the expectation wasn't met) is from my perspective a relatively recent development—a bigger issue this term, when we're doing more than usual, than it has been in the past. I supposed that's consistent with previous general agreement with the prior policy that it's not the party's job to support candidates directly, coupled with new sources of dissatisfaction within the party and a generally grumpy culture around us for context.

Finally, as a significant donor to the party and to several campaigns, I would much rather donate to specific candidates that I choose to support at the level at which I choose to support them than give the same amount of money to the party to decide what to do with it. I can't claim to speak for all major donors here, but I can speak for a few, and they also prefer to make their own decisions about who to support and how much.

We need to get this thread back to the evolving situation at national, but y'all please feel free to call me to discuss any of this at the state level if you want more background information, and please remember Chesterton's Gate! ;)
 
Mr. Porter has reported that Freedom Calls LLC began being paid for fundraising expenses beginning in February 2024. Reporting from February to November shows Freedom Calls LLC has been paid approximately $4,000 per month totaling $45,600 from February 2024 to November 2024.The Delaware Certificate of incorporation as an LLC shows Austin Padget as the registered agent of Freedom Calls LLC.

Up to this time I have seen no reporting accrediting fundraising from Freedom Calls LLC to the LNC. On that grounds alone I feel it is appropriate to terminate the contract.


Thank you, Paul.

Questions...
LNC financial reports (budgets, quarterly P&Ls, etc):
1. Are they available to us and how would I acquire/view them? Is there a link you could provide?
2. Do the reports include vendor information? LPTexas financial reporting shows any significant vendor being paid within the budget category line item... and I'm hoping their reports do something similar.
3. Wich budget category was this expense classified under?
Contract with Freedom Calls:
1. You mentioned the current contract is being alleged as replacing the one the LNC canceled. Has the LNC seen this current contract?
2. Can I see it? If so, how?
3. Who are the signatories on it?
4. What are the obligations of the parties (and terms)?
5. How does a contract like this typically get executed on the LNC? (Does the LNC typically vote on it, does the executive director or chair handle them, etc). I'm a bit confused by how money could have been flowing to the chair's boyfriend for an entire year without anyone on the LNC being aware of it.

Also, you said you felt that as there was no reporting back from Freedom Calls, that was justification for ending the contract on its own. I would agree, assuming that was an obligation set forth in that contract.

Conflict of interest:
1. Can you explain how conflicts of interest are supposed to be handled per the LNC rules?
2. Was it handled properly in this case?

The mere fact that Austin Paget is shown as the incorporator constitutes a conflict of interest that should have been reported to meet commonplace ethical obligations regardless of whether or not any requirement existed within the rules that govern LNC action.

Lots of moving parts here. Were I on the LNC and I found the chair refusing to communicate on this issue and Freedom Calls failing to meet their contractual obligations, I'd make contact with Oliver Hall to discuss possible suit against Freedom Calls for non-performance. Just fyi, such a suit should allow for pre-suit depositions and discovery (depending upon the laws of the state in which the suit takes place).
 
This will be my last answer on the subject for a while. I have been advised by council to limit discussion on this matter. I will give more in depth responses when it is feasible.

LNC financial reports (budgets, quarterly P&Ls, etc):
1. Are they available to us and how would I acquire/view them? Is there a link you could provide?

I will inquire about this. It was previously posted publicly but has since been posted on the closed list.

2. Do the reports include vendor information? LPTexas financial reporting shows any significant vendor being paid within the budget category line item... and I'm hoping their reports do something similar.

The LNC does not currently post that level of detail to all members. The Treasurer receives enough information from staff to file reports. Access beyond that I will need to inquire about.

3. Which budget category was this expense classified under?
Contract with Freedom Calls:

I will need to inquire on that as individual expenses are not reported to that detail.The categories are just not what it falls under.

1. You mentioned the current contract is being alleged as replacing the one the LNC canceled. Has the LNC seen this current contract?

No, the entire LNC has not.

2. Can I see it? If so, how?

I will inquire about that.

3. Who are the signatories on it?

I believe that will be released later.

4. What are the obligations of the parties (and terms)?

That will be released later. I will say they are not up to our standards.

5. How does a contract like this typically get executed on the LNC? (Does the LNC typically vote on it, does the executive director or chair handle them, etc). I'm a bit confused by how money could have been flowing to the chair's boyfriend for an entire year without anyone on the LNC being aware of it.

Also, you said you felt that as there was no reporting back from Freedom Calls, that was justification for ending the contract on its own. I would agree, assuming that was an obligation set forth in that contract.

With the previous contract we did have regular updates on the success of the staffer. There are policies set for handling of contracts.

Conflict of interest:
1. Can you explain how conflicts of interest are supposed to be handled per the LNC rules?
2. Was it handled properly in this case?

Policy manual excerpt:
Any proposed contracts or agreements for financial remuneration with a closely related
party (legal relative, domestic partner, business associate) to a sitting LNC member or
staff member shall be disclosed to the LNC prior to execution and shall be approved by a 2/3 vote of the Executive Committee or a majority vote of the LNC. This relation shall
also be disclosed on the LNC’s member’s listing of potential conflicts of interest.
 
This will be my last answer on the subject for a while. I have been advised by council to limit discussion on this matter. I will give more in depth responses when it is feasible.

LNC financial reports (budgets, quarterly P&Ls, etc):
1. Are they available to us and how would I acquire/view them? Is there a link you could provide?

I will inquire about this. It was previously posted publicly but has since been posted on the closed list.

2. Do the reports include vendor information? LPTexas financial reporting shows any significant vendor being paid within the budget category line item... and I'm hoping their reports do something similar.

The LNC does not currently post that level of detail to all members. The Treasurer receives enough information from staff to file reports. Access beyond that I will need to inquire about.

3. Which budget category was this expense classified under?
Contract with Freedom Calls:

I will need to inquire on that as individual expenses are not reported to that detail.The categories are just not what it falls under.

1. You mentioned the current contract is being alleged as replacing the one the LNC canceled. Has the LNC seen this current contract?

No, the entire LNC has not.

2. Can I see it? If so, how?

I will inquire about that.

3. Who are the signatories on it?

I believe that will be released later.

4. What are the obligations of the parties (and terms)?

That will be released later. I will say they are not up to our standards.

5. How does a contract like this typically get executed on the LNC? (Does the LNC typically vote on it, does the executive director or chair handle them, etc). I'm a bit confused by how money could have been flowing to the chair's boyfriend for an entire year without anyone on the LNC being aware of it.

Also, you said you felt that as there was no reporting back from Freedom Calls, that was justification for ending the contract on its own. I would agree, assuming that was an obligation set forth in that contract.

With the previous contract we did have regular updates on the success of the staffer. There are policies set for handling of contracts.

Conflict of interest:
1. Can you explain how conflicts of interest are supposed to be handled per the LNC rules?
2. Was it handled properly in this case?

Policy manual excerpt:
Any proposed contracts or agreements for financial remuneration with a closely related
party (legal relative, domestic partner, business associate) to a sitting LNC member or
staff member shall be disclosed to the LNC prior to execution and shall be approved by a 2/3 vote of the Executive Committee or a majority vote of the LNC. This relation shall
also be disclosed on the LNC’s member’s listing of potential conflicts of interest.
Where can we see the "LNC's member's listing of potential conflicts of interest"?

Was the proposed contract (and conflict) in question discolsed to the LNC? And did the executive committee or the LNC vote on it?
 
Well, well....

1737833365866.webp
 
I think the criminal investigation he's referring to is the internal Investigative Committee that the issue has been referred to.
Oh, I see... Yeah her departure from office definitely doesn't change the committee's charge. I mean case and point a committee was formed for JBH, he left office, and they still finish and Pat Dixon delivered the report so this wouldn't even be the first time.
 
Wait are the feds involved in this LLC thing now now or is there a criminal investigation for something else?
I am not saying that the Feds are involved. Just suggesting that with documented crimes, no one really cares about bylaws or RONR. I would not be surprised if there were multiple allegations referred to grand juries.
 
Although Secret Service would likely be interested given the financial allegations (they handle financial crimes for the Feds).
 
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