Government contracting experts said the depth of the ties between DHS leadership and the Strategy Group suggested major potential violations of ethics rules.
“It’s corrupt, is the word,” said Charles Tiefer, a leading authority on federal contract law and former member of the Commission on Wartime Contracting in Iraq and Afghanistan. He said that the Strategy Group’s role should prompt investigations by both the DHS inspector general and the House Oversight Committee.
“Hiding your friends as subcontractors is like playing hide the salami with the taxpayer,” Tiefer added.
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The contracts total $220 million so far, leading the DHS ad budget to triple in the most recent fiscal year, according to Bloomberg. The lion’s share of ad contracts is typically used to buy TV airtime or spots on social media. Advertising firms make money by taking an often-hefty commission. Federal records show the contracts have gone to two firms. One is a Republican ad company in Louisiana called People Who Think, which has been awarded $77 million.
But the majority of the money — $143 million — has gone to a mysterious LLC in Delaware. The company was created just days before it was awarded the deal.
Little is known about the Delaware company, which is called Safe America Media and lists its address as the Virginia home of a veteran Republican operative, Michael McElwain. McElwain has long had his own advertising company (separate from the Delaware one), but there’s little evidence that firm could handle a nine-figure federal contract on its own: It reported just five employees when it received COVID-19 relief money a few years ago.
How, where and to whom Safe America Media doled out the $143 million is unknown. Any subcontractors hired to do work on the DHS ads are not disclosed in federal contracting databases.
The office funding the ad contracts is listed as the DHS Office of Public Affairs, which is run by McLaughlin, contract records show. McLaughlin married Yoho, the Strategy Group CEO, earlier this year.