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Strategist for Pro-Trump Super-PAC Convicted in Ron Paul Pay-for-Endorsement Scheme

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An Iowa jury found three political operatives with deep ties to Ron and Rand Paul guilty on Thursday of a scheme to pay an Iowa state senator for his endorsement of Ron Paul in the 2012 campaign.

All three men were key Ron Paul lieutenants in that campaign, and two, Jesse Benton and John Tate, went on to run a pro-Rand Paul super-PAC during his 2016 candidacy. After the younger Paul dropped out of the race, Benton began working last month with a pro-Donald Trump super-PAC. Along with Benton and Tate, operative Dimitri Kesari was also convicted.

The convictions stem from a plan to woo then-Iowa state Sen. Kent Sorenson away from the campaign of Michele Bachmann, whom Sorenson had already endorsed in late 2011. Sorenson testified during the trial that he was offered $25,000 to change his loyalties but, as emails presented by prosecutors to the jury showed, that plan was scrapped out of concern that a direct payment to Sorenson would show up on public disclosures. Instead, the campaign paid Sorenson roughly $73,000 by way of an audio-visual consultant in Maryland who testified that he never did any work for the campaign. The payments to the contractor were disguised on Federal Election Commission reports to hide the fact that Sorenson was being paid.

Sorenson took a plea deal in the case, admitting his role in the scheme and agreeing to testify against the three men.

It isn’t against federal law to pay a state senator for an endorsement. But it does violate Iowa Senate ethics rules, and prosecutors successfully argued that in trying to cover up the payments, the campaign ran afoul of federal election laws that require campaigns to disclose their expenses accurately.

The indictments against the men, which were filed in August 2015, shortly before the first Republican presidential debate, were among several blows to Rand Paul’s campaign, which attempted to distance itself from Benton and Tate. An earlier attempt by the Department of Justice to convict the three men met with mixed results. Before the trial even began in October, a judge tossed out the charges against Tate. The jury convicted Kesari of one charge and acquitted Benton of another but could not reach a verdict on the remaining charges. The jury that issued its verdict on Thursday, however, convicted all three men relatively quickly, returning a verdict within a few hours of closing arguments.

Tate and Benton ended up taking leaves from the super-PAC, America’s Liberty PAC, during their first trial. Benton—who changed lawyers between trials, after his first team of lawyers said he could no longer afford to pay them—picked up work with the pro-Trump super-PAC in early March. He also billed Marco Rubio’s campaign for $13,600 worth of work on March 25.

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Strategist for Pro-Trump Super-PAC Convicted in Ron Paul Pay-for-Endorsement Scheme

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Ron Paul Gives Fiery Testimony in Trial of Two Indicted Top Aides

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Former GOP presidential candidate Ron Paul took the stand in an Iowa federal courthouse this afternoon in the trial of two of his top aides from his 2012 presidential campaign. The aides have been accused of paying for the endorsement of an Iowa state senator and then trying to cover it up. Paul blasted prosecutors and the media while still testifying that he abhorred the concept of paying for endorsements.

Paul was called as a witness for the prosecution in the trial of Jesse Benton, his 2012 presidential campaign chairman who is also married to Paul’s granddaughter. Another longtime Paul family political operative, Dimitri Kesari, is also on trial. Kesari worked as deputy campaign manager in 2012.

The charges in the case stem from a scheme by Paul’s 2012 campaign to pay then-Iowa state Sen. Kent Sorenson more than $70,000 to endorse Paul in the days before the Iowa caucuses in late 2011. Four of the charges against Benton were dropped when a judge ruled that prosecutors had improperly handled the indictments. Benton still faces a count of making false statements to prosecutors after he denied any knowledge of the alleged plan when they asked him about it last summer. Kesari faces six charges, including federal conspiracy and campaign finance charges. Prosecutors also say Kesari attempted to convince Sorenson to not tell investigators everything he knew.

During his testimony, Paul switched between appearing almost politically naive—claiming he knew almost nothing of how his campaign paid expenses and telling a long folksy story of his dislike for political endorsements—and exhibiting fiery anger. Paul loudly denounced the prosecution for its case against Benton and the damage it has done to his son Rand’s 2016 presidential campaign.

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Ron Paul Gives Fiery Testimony in Trial of Two Indicted Top Aides

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Prosecutors Dealt a Setback in Trial of Rand Paul Aides

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An Iowa judge dealt a setback to prosecutors who have accused several Paul family political operatives of breaking campaign finance laws during Ron Paul’s 2012 presidential campaign. The judge ruled on Friday that all the charges filed against John Tate, a longtime Paul family operative who worked for both Ron and Rand Paul and for groups tied to the family’s political causes, should be dismissed. During the 2012 election, Tate was in charge of America’s Liberty PAC, a pro-Rand Paul super-PAC endorsed by the Kentucky senator. Several of the charges against Jesse Benton, who is married to Ron Paul’s granddaughter and also involved with America’s Liberty PAC, were also dropped. But Benton and a third Paul lieutenant, Dimitri Kesari, are still both scheduled to go to trial next week.

This case focuses on these operatives’ roles running the 2012 Ron Paul campaign and an apparent plan to pay an Iowa state senator to switch his endorsement from Michele Bachmann to Ron Paul. The state senator, Kent Sorenson, initially denied there was a scheme to pay him to back Ron Paul, but eventually he admitted that he took money from the Paul campaign through a third party (to cover the campaign’s tracks). He pleaded guilty last year to federal campaign finance charges and is awaiting sentencing. On Friday, federal judge John Jarvey, dismissed all the charges against Tate and all but one of the charges against Benton, saying that in presenting charges to the grand jury, prosecutors improperly included accusations that Benton and Tate lied about their involvement in the case during meetings with investigators and prosecutors.

The judge’s decision was apparently based on complaints by Benton and Tate’s respective lawyers that the government convinced a grand jury to indict them by using statements the men made when they were under the impression that prosecutors wouldn’t use these remarks against them. According to court documents, last summer, before a grand jury was convened, the two men met, separately, with investigators and prosecutors in what is known as “proffer sessions”—meetings in which the subject of the interview is usually given some immunity and a promise the government won’t use what they tell investigators against them. The one instance in which statements made during a proffer session can be used to prosecute the interviewee is when the government prosecutes the person directly for making false statements to federal investigators. The charges against Tate and Benton that were dismissed today were related to conspiracy and campaign finance violations. The judge ruled that it was improper for prosecutors to bring up what Benton and Tate said in the proffer sessions when accusing them of those crimes.

Benton is still charged with making false statements to federal investigators and Kesari still faces six charges relating to the case, including conspiracy and campaign finance charges. Prosecutors also claim he tried to convince Sorenson to not cooperate with investigators.

Neither Benton nor Tate’s attorney responded to requests for comment, but Peter Carr, a spokesman for the Department of Justice, said new charges may still be filed against Tate and Benton.

“The government is free to proceed to trial—and informed the court today that it will proceed to trial—on the remaining counts pertaining to Benton and Kesari,” Carr said. “The decision regarding the dismissed counts will be made at a later date post trial.”

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Prosecutors Dealt a Setback in Trial of Rand Paul Aides

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Rand Paul: Troll Me, and I’ll Track Your Phone

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Rand Paul’s campaign established itself as the cool internet campaign early when it hired Austin-based GOP digital hipster Vincent Harris to run a small social media empire heavy on memes. But the campaign’s latest effort to appeal to the youth seems mostly like an invitation to troll the struggling candidate—except that it’s also kind of creepy.

Paul took to Twitter this afternoon to announce the launch of his new official campaign app—available for free in Apple and Android stores—which promises the latest “insider” Rand Paul news and event listings, as well as “fun” features like a tool to take fake “selfies” with Paul and a hidden Space Invaders-style game in which Paul’s logo shoots at the logos of other candidates. (Sound fun?)

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Rand Paul: Troll Me, and I’ll Track Your Phone

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Rand Paul Attacks Trump for Praising Dems, but He Once Said Carter Was Better Than Reagan

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It had to happen: anti-Trump attack ads from the GOP side. One of the first Rs to launch a torpedo at the tycoon topping the polls is Sen. Rand Paul, the libertarian-ish Kentucky Republican whose campaign has yet to gain traction. In what can be taken as a sign of frustration—or desperation—this week Paul released a commercial assailing Donald Trump. The ammo is nothing new, with the spot focusing on old Trump statements and positions that ought to tick off Republicans. It shows Trump calling Hillary Clinton a “terrific woman” and remarking (in 2004) that he identified more as a Democrat than a Republican. Trump responded by pooh-poohing the attack, once again saying his views have evolved. And he added a dig at Paul: “Recently, Rand Paul called me and asked me to play golf. I easily beat him on the golf course and will even more easily beat him now, in the world in sic the politics. Senator Paul does not mention that after trouncing him in golf I made a significant donation to the eye center with which he is affiliated.”

Ouch.

It’s doubtful Paul is going to score many points with the ad. After all, of the GOPers running for president, Paul has perhaps the longest list of troublesome past comments, and he’s the most likely to be accused of heresy. For instance, he repeatedly asserted that Dick Cheney, as vice president, pushed for the Iraq War so Halliburton, the megamilitary contracting firm Cheney once led, would bag billions of dollars in profits.

Paul even once took a position similar to one of the Trump quotes in this new ad. His get-Trump spot excoriates the celebrity billionaire for having previously declared, “The economy does better under the Democrats than the Republicans.” Yet Paul used to repeatedly insist that President Jimmy Carter was better on the federal budget than President Ronald Reagan.

Last year, I reported on Paul’s habit of dumping on Reagan, noting that when Paul stumped for his father’s presidential bid in 2008 and ran for Senate in 2010, he routinely asserted that Carter had a better record on fiscal discipline than Reagan. So Paul was fine with criticizing the GOP when he was campaigning for or as a libertarian maverick. But now that he’s struggling to find his footing in the Republican presidential contest, he’s eager to attack Trump’s supposed blasphemy.

Here are the relevant portions of my reporting from last year:

In a variety of campaign appearances that were captured on video, Paul repeatedly compared Reagan unfavorably to Carter on one of Paul’s top policy priorities: government spending. When Paul was a surrogate speaker for his father, then-Rep. Ron Paul (R-Texas), during the elder Paul’s 2008 presidential quest, his sales pitch included dumping on Reagan for failing to rein in federal budget deficits. Standing on the back of a truck and addressing the crowd at the Coalition of New Hampshire Taxpayers picnic in July 2007, Rand Paul complained about Reagan and praised his father for having opposed Reagan’s budget:

The deficit went through the roof under Reagan. So how long did it take Ron Paul to figure out that the guy he had liked, endorsed, campaigned for, campaigned for him? The very first Reagan budget. Ron Paul voted “no” against the very first Reagan budget… Everybody loved this “great” budget. It was a $100 billion in debt. This was three times greater than Jimmy Carter’s worst deficit.

Paul’s speech apparently worked. His father won the straw poll held at the picnic, collecting 182 of the 294 votes cast, or 65 percent.

Appearing at a Montana GOP event in January 2008, Paul touted his dad’s conservative credentials—remarking that the elder Paul had even voted against gun safety measures backed by the NRA—and pointed out that deficits had mounted under Reagan and President George H.W. Bush: “Domestic spending went up more rapidly in the ’80s than it did under Carter.” And he took this swipe at Reagan:

You know, we wanted Reagan to veto a budget or to have balanced budgets and he didn’t do it. And it wasn’t anything personal against him. I think his philosophy was good. I just don’t know that he had the energy or the follow-through to get what we needed.

As a Senate candidate the following year, Paul continued to bad-mouth Reagan. Speaking at the University of Kentucky to Students for Liberty that spring, he noted that he and other small-government advocates had “high hopes” for Reagan that were “fairly quickly” dashed. “A lot of the things that we believed would happen didn’t,” Paul said. He explained:

People want to like Reagan. He’s very likable. And what he had to say most of the time was a great message. But the deficits exploded under Reagan. The Democrats said, “Well, the deficit’s going up because you reduced the tax rates and supply side economics doesn’t work.” But the interesting thing is, if you look at the numbers, tax rates went down in the early ’80s, tax revenue did rise. The reason the deficits exploded is they ignored spending. Domestic spending went up at a greater clip under Reagan than it did under Carter.

A few weeks earlier, talking to student Republicans at Western Kentucky University, Paul pointed to the dramatic rise in deficit spending under President George W. Bush and declared that Republicans had “become hypocrites” on spending and the deficits. GOPers, he maintained, had not “truly become fiscal conservatives.” He added, “We haven’t followed through on the message of fiscal conservatism that we said we had.” And he traced the problem back to Reagan:

Some say, well that’s fine, but there were good old days. We did at one time…When we had Reagan, we were fiscal conservatives. Well, unfortunately, even that wasn’t true. When Reagan was elected in 1980, the first bill they passed was called the Gramm-Latta bill of 1981, and Republicans pegged it as this great step forward. Well, Jimmy Carter’s last budget was about $34 or $36 billion in debt. Well, it turns out, Reagan’s first budget turned out to be $110 billion dollars in debt. And each successive year, the deficit rose throughout Reagan’s two terms.

And, he told the students, don’t venerate Reagan merely because he was a conservative: “Why did the deficit rise under Reagan? Because spending rose more dramatically under Reagan than it did under Carter. Well, you say, ‘Reagan’s a conservative, Carter’s a liberal.’ Not necessarily always what it seems.”

Speaking two months later to the Carroll County Republican Party, Paul forecasted that economic doom was soon to come—”1979 on steroids”—and advised that “everyone should have a percentage of their savings in gold,” noting it was possible that the United States could experience a “complete catastrophe” like the hyperinflation of the Weimar Republic. “I would be prepared,” Paul said. “There’s a coming calamity possibly.” Then he turned to a critique of the Republican Party:

As Republicans, it’s been very easy for us to say we’re fiscally conservative and we’re for balanced budgets. It’s never happened. We were in charge in the Reagan term, the next Bush’s term, this last Bush. The deficits were horrendous under the Republicans…During Reagan’s two terms, domestic spending went up faster than Jimmy Carter.

That same month, when he was addressing a gathering of local conservatives in Lexington, Kentucky, Paul contended that being only “a little bit conservative” was not sufficient and that his party, partly because of Reagan, had lost its credibility on fiscal matters:

We live in such bad times that if you don’t have somebody who truly believes that we need to take an ax to government, you’re not going to get anything done…Even when we elected Reagan. A lot of us loved the rhetoric of Reagan. My dad supported Reagan in 1976 when only four US congressmen would stand up for him. The deficit still exploded…The deficit exploded because domestic spending rose faster under Reagan, so did military, but domestic spending rose faster under Reagan than under Jimmy Carter…We have to admit our failings because we’re not going to get new people unless we become believable as a party again.

These days, Paul, who is stuck in a civil war within the GOP over foreign policy issues, is trying to Reaganize himself and demonstrate that he’s not outside the Republican mainstream. (His Senate office did not respond to requests for comment.) But not long ago, Reagan was a foil for Paul, who routinely pointed out that the GOP’s most revered figure actually had been a letdown. It’s no surprise that denigrating Ronald Reagan—and commending Jimmy Carter—is no longer common for Paul. Such libertarian straight talk would hardly help him become one of the successors to the last Republican president who retains heroic stature within the party Paul wants to win over.

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Rand Paul Attacks Trump for Praising Dems, but He Once Said Carter Was Better Than Reagan

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Indicted Ron Paul Aide Is Also the Target of a Police Investigation Into a Mysterious Burglary

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On Wednesday, a trio of conservative operatives with close ties to Rand Paul and his father were indicted for their alleged role in an effort to purchase an influential Iowa Republican’s endorsement of Ron Paul during his 2012 presidential bid. Mother Jones has learned that one of these operatives, Dimitri Kesari, is also a target of a police investigation into a mysterious burglary last year at the Rhode Island home of a Ron Paul staffer who died in 2013. All that was taken, according to local police, was the deceased staffer’s laptop.

Kesari, who served as Ron Paul’s deputy campaign manager during the 2012 campaign, faces federal conspiracy, campaign finance, and obstruction of justice charges for his alleged involvement in paying more than $70,000 to then-Iowa state senator Kent Sorenson to switch his endorsement from Michele Bachmann to Ron Paul ahead of the Iowa caucuses. The burglary case involves the childhood home of one of Kesari’s colleagues on Paul’s campaign team, a young and well-known libertarian activist named Jared Gamble, who died in 2013 at the age of 26. Gamble had worked on both of Ron Paul’s presidential campaigns, as well as on Rand Paul’s 2010 senate bid. He also had a connection to Sorenson, whose 2008 campaign for Iowa state senate Gamble had assisted. Sorenson eventually acknowledged taking money from both the Paul and the Michele Bachmann campaigns and resigned his Iowa state senate seat. He pleaded guilty to federal campaign finance charges last summer and is awaiting sentencing.

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Indicted Ron Paul Aide Is Also the Target of a Police Investigation Into a Mysterious Burglary

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Three Top Rand Paul Associates Were Just Indicted

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After years of investigation by the Department of Justice, three top Rand Paul associates, including the senator’s nephew-in-law, were indicted for their role in an alleged attempt to buy an influential Iowa state senator’s endorsement of Ron Paul during his 2012 presidential campaign. None of these operatives, who served as top Ron Paul campaign aides, is currently on the payroll of Rand Paul’s presidential campaign. But two of them—Jesse Benton, who is married to Paul’s niece, and John Tate—run a pro-Rand Paul super-PACs that has raised $3.1 million to support Paul’s presidential campaign.* The third man indicted, Dimitri Kesari, has served as an aide to both Rand Paul and his father.

Last year, former Republican Iowa state Sen. Kent Sorenson pleaded guilty to campaign finance charges accusing him of helping to cover up a scheme for the Ron Paul campaign to pay him more than $70,000 to switch his endorsement immediately before the 2012 Iowa caucus, from Michele Bachmann to Ron Paul. Sorenson has been awaiting sentencing pending his cooperation in a further investigation, but it hasn’t been clear who on Ron Paul’s staff would be caught up in the scandal. At the time Benton served as the campaign’s chairman, Tate as the campaign manager, and Kesari as the deputy campaign manager.

All three men were charged with criminal conspiracy and federal charges related to falsification of government records. Tate and Benton face charges of making false statements to federal investigators; Kesari was indicted on one count of obstruction of justice for allegedly trying to persuade Sorenson to deny the scheme when pressed by prosecutors.

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Three Top Rand Paul Associates Were Just Indicted

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Rand Paul Super-PAC Slams “Bailout Bu$h” in Bizarre Web Ad

Mother Jones

Here come the crazed attack ads. More than seven months out from the first votes in the 2016 presidential primaries, America’s Liberty, a super-PAC backing Sen. Rand Paul’s bid for the Republican nomination, has put out an online ad attacking Jeb “Bailout” Bush. It is…strange.

The video, which had more than 10,000 views as of Tuesday afternoon, is framed as an infomercial, with an exuberant, wild-bearded speaker named Max Power (perhaps borrowed from Homer Simpson, who took the same name from a hair dryer) serving as the pitchman. The ad offers a Bailout Bu$h action figure—which sadly does not actually seem to be for sale, probably because it appears to be a different action figure with an image of Bush’s face pasted on—as Power shouts about how Jeb worked for Lehman Brothers right before the crash and supported the Troubled Asset Relief Program. “This offer guarantees a presidential candidate cannot win a single primary state, let alone the general election,” a voice-over says at the end of the ad as Power bathes in a tub of money.

Per the Washington Times, America’s Liberty is spending in the five figures to run the ad online in early primary states, though it is also clearly running in DC, since I encountered it when it popped up before a music video on YouTube.

America’s Liberty has close connections to the Paul camp. The super-PAC’s founder and president is John Tate, who worked as Ron Paul’s presidential campaign manager in 2012 and currently also serves as president of Campaign for Liberty, a longtime Ron Paul organization.

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Rand Paul Super-PAC Slams “Bailout Bu$h” in Bizarre Web Ad

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Honduran President Decides That Going to an Event Called "Disrupting Democracy" Isn’t Such a Good Idea

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On Monday, Honduran President Juan Orlando Hernández was expected to appear in San Francisco to talk about his efforts to cede a chunk of his impoverished Central American nation to an international group of investors who want to create an autonomous, self-governing, libertarian paradise. There was one problem, however: His talk was part of a speaker series called Disrupting Democracy, which may be a better venue for someone like Rand Paul than the beneficiary of a military coup who won office using funds allegedly embezzled from the national social security system.

The brief, quixotic history of DIY micronations

Hernández and his deputies skipped Disrupting Democracy due to “civil unrest,” according the event’s organizers. On Sunday, 8,000 protesters had marched through the capital city of Tegucigalpa calling for his ouster.

“Before we begin, I would like to apologize for some confused messaging,” said panelist Randy Hencken, who directs the Seasteading Institute, which promotes the creation of floating technoutopian nation-states and cosponsored the event. “Here in Silicon Valley, when we want to improve something, we say ‘disrupt,'” Hencken continued. “Nobody in Honduras approved or even knew about that whimsical title, which, when translated from English into Spanish, could easily be construed in a negative and unintended light.”

At least a dozen anti-Hernández protesters showed up oustide the event, which was held at the South of Market headquarters of Lincoln Labs, a tech incubator cofounded by a former Mitt Romney campaign staffer.

The first Disrupting Democracy event, held in May, featured Paul discussing the growth of “a new generation of voter engagement.” Any subject that appeals to both libertarians and techies appears to interest Lincoln Labs, which was founded in 2013 to serve “liberty advocates living in Silicon Valley”—”a forgotten community that felt ostracized with no home.” Other Lincoln Labs events include its Reboot conferences and hackathons focusing on the technology of political campaigning.

Everyone at Monday’s event seemed to agree that the Honduran scheme, known as Zones for Employment and Economic Development, or ZEDEs, now seemed imperiled—a discouraging turn, given Hernández’s close cooperation with antitax crusader Grover Norquist and high-ranking representatives of the libertarian Cato and Hayek Institutes.

Yet the seasteaders were undeterred, even emboldened. If Honduras didn’t want to create a Hong-Kong style city on its coast, maybe it would host a floating city in its territorial waters. “That gets rid of complaints of ceding over large portions of land,” noted Seasteading Institute member Mike Doty, who had a long gray beard and a pirate-skull-patterned bandanna. “On the Pacific side, there’s a large bay there…They’ve done the engineering studies, the feasibility studies. We’re pretty far along.”

One thing that can never be disrupted, it seems, is the vision of a technolibertarian.

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Honduran President Decides That Going to an Event Called "Disrupting Democracy" Isn’t Such a Good Idea

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Rand Paul Blames the Baltimore Riots on Absentee Fathers

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As one of a growing number of GOP 2016 wannabes, Sen. Rand Paul has tried to sell himself as the best Republican candidate to reach out to African-American voters. He’s talked about the need for criminal justice reform. During the protests in Ferguson, Missouri, he called for demilitarizing police forces. Yet his response to the riots in Baltimore show that he has a long way to go. During an interview with conservative radio host Laura Ingraham on Tuesday, the Kentucky senator blamed the turmoil not on the police brutality that resulted in the death of Freddie Gray, but on absentee fathers and a breakdown in families.

“It’s depressing, it’s sad, it’s scary. I came through the train on Baltimore last night, I’m glad the train didn’t stop,” Paul said, laughing at his own unfunny joke. He then pontificated of the unrest: “The thing is that really there’s so many things we can talk about, it’s something we talk about not in the immediate aftermath but over time: the breakdown of the family structure, the lack of fathers, the lack of sort of a moral code in our society. And this isn’t just a racial thing, it goes across racial boundaries, but we do have problems in our country.”

By the way, a week ago, Paul’s 22-year-old son William was cited for driving while intoxicated after he was in a car crash.

Listen to the audio of the interview, recorded by Media Matters (hat tip to TPM):

Paul wasn’t the only presidential aspirant to comment on the riots. Hillary Clinton sent out a tweet on Monday calling for peace but supporting the protestors who were upset by Gray’s death.

Former Baltimore resident and likely presidential candidate Ben Carson pleaded with parents in the city to keep their children away from the disorder. “I urge parents, grandparents and guardians to please take control of your children and do not allow them to be exposed to the dangers of uncontrolled agitators on the streets,” Carson said in a statement.

Texas Sen. Ted Cruz lamented the school closures across the city. “No man, woman, or child should fear for his or her safety in America—not in their schools, not in their neighborhoods, not in their cities—but today families are scared,” the GOP contender said.

But long-shot Democratic candidate Martin O’Malley went further than just a simple statement. O’Malley, the former mayor of Baltimore, canceled a string of paid speeches in Europe to return home.

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Rand Paul Blames the Baltimore Riots on Absentee Fathers

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