Stansberry & Associates, an investment research firm catering to right-wing audiences' fears of President Barack Obama, has been fined $1.5 million for engaging in "deliberate fraud" and profiting from "false statements." Despite its shoddy history, numerous conservative outlets and personalities including Newt Gingrich, Fox Business, Glenn Beck, Mike Huckabee, Alex Jones, WND, and The Washington Times, have helped legitimize the firm and its wild investment schemes. The firm has also enlisted the help of former Fox News contributor Dick Morris, who has frequently promoted the firm in sponsored video pitches.
Stansberry & Associates was founded in 1999 by Porter Stansberry and claims to have "been predicting the most promising emerging trends and the most influential economic forces affecting the market - with uncanny accuracy - for the past 13 years." Stansberry advertises its services to right-wing audiences with attacks on President Obama and warnings about a forthcoming apocalyptic type collapse of the American government and financial system. Stansberry emails carry subject lines like, "A Survival Secret That Could Save Your Life."
In 2007, Stansberry and his firm -- then called Pirate Investor LLC -- were ordered by a district court to pay $1.5 million in restitution and civil penalties as a result of a Securities and Exchange Commission complaint. As reported by the Baltimore Sun, Stansberry was accused of "disseminating false stock information and defrauding public investors through a financial newsletter ... They claimed investors could double their money if they paid $1,000 for a stock tip involving Bethesda energy company USEC Inc. In total, 1,217 people purchased the report, although 215 of them got their money back after complaining."
A judge in 2007 ruled that Stansberry's activity "undoubtedly involved deliberate fraud" and "making statements that he knew to be false." An appeals court later found that "it would take an act of willful blindness to ignore the fact that Appellants profited from the false statements." Stansberry's defense of his actions can be found here, and a group of publishers, including The New York Times ("The Right to Be Wrong"), defended Stansberry's case on First Amendment grounds.
The Social Security Administration's Office of the Inspector General announced on September 12, 2011, that Stansberry & Associates "agreed to pay a $55,000 civil monetary penalty to the Social Security Administration" to settle an allegation it violated the Social Security Act. The firm settled the case by paying the fine while not admitting a violation. SSA's complaint alleged that Stansberry advertised it services by claiming to have information from "insiders" on how to increase your Social Security check, and "the SSA OIG believed that the characterization of Stansberry's SSA contacts as 'insiders' falsely implied that the information was not available to the public. The claimed 'insider' information was, in fact, available to anyone upon request."
National Rifle Association board member Ted Nugent continued his ongoing racial tirade, appearing on conspiracy theorist Alex Jones' radio show to claim that that African-Americans could fix "the black problem" if they just put their "heart and soul into being honest, law-abiding, [and] delivering excellence at every move in your life."
Nugent has faced criticism over the past two days for a pair of columns he wrote for conservative websites WND and Rare that variously termed deceased Florida teenager Trayvon Martin as a "dope smoking, racist gangsta wannabe," an "enraged black man-child" and a "Skittles hoodie boy."
During his appearance on The Alex Jones Show, Nugent used the acquittal of George Zimmerman in the shooting death of Martin as a platform to offer advice to black America and make a number of unfounded claims about racism.
From the July 16 edition of The Alex Jones Show:
Internet radio host Adam Kokesh, who obtained notoriety this year for organizing armed marches with the goal of overthrowing the federal government, appeared on conspiracy theorist Alex Jones' radio show to revive his call for protestors who wish to "end the federal government" to march on Washington, D.C., on Independence Day 2014.
From the July 8 edition of The Alex Jones Show:
In May, Kokesh cancelled plans for a similar July 4 armed march on Washington, and instead called on his supporters to organize marches at state capitols nationwide in order to effectuate an "orderly dissolution of the federal government."
Kokesh has since reinstated his original plans, hoping that a "critical mass" of protesters will allow him to organize a march from nearby Northern Virginia into Washington, D.C., on July 4, 2014.
Kokesh laid out plans for the 2014 march, stating, "It's time to plant the flag for next year and Alex, I know a lot of people in your audience will join us in this, and I hope you will endorse it too, because it's going to happen with or without me now. We invite anybody to join us who for whatever reason wants to end the fed entirely, to join us on Independence Day of next year." According to Kokesh, the route would be the same as the tabled 2013 march, with plans to pass by the United States Capitol, the Supreme Court and the White House.
History announced the premiere of a new series, God, Guns & Automobiles, that will feature Erich "Mancow" Muller, a far-right radio host who has engaged in a plethora of conspiracy theories -- including the claim that President Obama was born outside the United States -- and has suggested that an armed revolution will occur in America.
God, Guns & Automobiles will document Mancow and his brother Mark Muller's operation of Max Motors, a car dealership located in rural Missouri that "embodies the values and the spirit of the heartland of America." The series is slated to premiere on History, formerly called The History Channel, on Monday, July 8 at 10 p.m. EST. Mark Muller, the founder of Max Motors, has frequently incorporated firearms into his car business. Since at least 2008, Max Motors has given away firearms -- often AK-47 assault weapons -- with the purchase of certain vehicles. A typical newspaper clipping appearing on the Max Motors website states that "The Nation's Outlaw Car Dealer Is Doing It Again!" and offers a "free AK-47" with the purchase of any truck.
According to Mark Muller, his promotions have engendered controversy. In comments published at Human Events in 2011, Muller said that a past AK-47 giveaway had drawn scrutiny from the Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as a bank that provided Max Motors with financing. Muller also said that General Motors threatened to rescind his dealership agreement because of the promotion. In 2008, Mancow highlighted his brother's promotion with a post on his website that warned "you'll need a gun to protect yourself from the violent masses during the coming depression." In his posting, Mancow also repeated the falsehood that Germany's gun laws were responsible for the Holocaust.
On April 13, Max Motors hosted its "1st Annual Great Gun Buyback," offering $50 to $10,000 to purchase firearms from the public. According to an ad on the Max Motors website, "We'll take any and all guns with no limit to the number you can bring in!" A contemporaneous Facebook posting added, "There will also be a camera crew here that day. Come in for a chance to be on TV!!"
From the May 30 edition of Genesis Communication Network's The Alex Jones Show:
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Gun Owners of America Execuive Director Larry Pratt is happy to appear on talk shows hosted by conspiracy theorists who believe 9/11 was an inside job, think white Christians should arm themselves for the coming race war, or want to shoot Hillary Clinton in the vagina.
Pratt told Media Matters in a lengthy interview this week that outlandish, discredited claims by the likes of talk show hosts Alex Jones and Pete Santelli do not bother him as long as his interviewer "has an audience and he provides a microphone for us to reach that audience."
"As long as I have a chance to present what Gun Owners of America is doing ... ideally seek support for Gun Owners of America, get [people] on our alert list, receive the alerts, then that's all good," Pratt said.
In the interview, Pratt also defended conspiratorial claims he had made on extremist programs, including his suggestion that the government might have been involved in the 2012 mass shooting at a movie theater in Aurora, Colorado.
Pratt's organization has become an important player in the gun debate, with The New York Times in April heralding their role as an "increasingly potent group" that was "emerging as an influential force" over then-pending Senate gun legislation. This high-profile role has come in spite of Pratt's long record of extremism.
As Media Matters has documented, discredited conspiracies and outlandish and offensive statements are the stock-in-trade of several radio talk show hosts whose regular guests have included Pratt, as well as gun advocates Ted Nugent and former NRA President David Keene.
Among the radio shows that Pratt has frequented are those hosted by Jones, Santelli, and Stan Solomon and Gary Franchi.
Solomon, a race-baiting host who is convinced a war between a "black force" and a "white resistance" is set to break out at any moment, also believes the December 2012 mass shooting at the Sandy Hook elementary school was a "programmed event" designed to help pass gun legislation.
Franchi is an avid conspirator who drew unwanted attention when NBC News highlighted his history of promoting conspiracy theories, including his extensive involvement in the "9-11 truth" movement and his belief that the government is secretly building FEMA concentration camps to round up American citizens.
Jones believes the government actively carried out or was otherwise involved in the 9-11 attacks, the Space Shuttle Columbia disaster, the Oklahoma City bombing, and the mass shooting in Newtown. (He also recently suggested a government "weather weapon" could possibly have created the devastating tornado in Oklahoma.)
Santelli in recent weeks has been in the news for repeatedly expressing his desire to shoot Hillary Clinton "in the vagina" over her supposed treasonous acts.
Asked if he agrees with these hosts or finds any problem with their views, Pratt stated, "If they will provide an audience, we're happy to speak to their audience."
As the debate over gun legislation has raged in recent months, prominent gun activists have been appearing on the radio and TV shows of fringe conspiracy theorists to push their message.
The hosts of these shows believe in a range of absurd conspiracies, including that the U.S. government perpetrated the 9-11 attacks; that the recent mass shootings in Newton and Aurora were somehow staged; and that impoverished black men are gearing up to kill "white heterosexual Christians."
Despite regularly uniting with fringe conspiracy theorists -- and often joining them in espousing outlandish conspiracies -- Gun Owners of America executive director Larry Pratt, longtime National Rifle Association board member Ted Nugent, and former NRA president David Keene represent organizations that still wield considerable influence in the debate over gun legislation.
The NRA says that it has millions of members and annual revenues in excess of $200 million, and their annual meetings regularly draw leading Republican presidential candidates. Pratt's group Gun Owners of America has also become an important player in the gun debate; an April article by The New York Times highlighted how GOA was "emerging as an influential force" over then-pending Senate gun legislation, while ignoring Pratt's own record of extremism.
In recent weeks, extremist radio host Pete Santilli has made headlines for violent comments he made about Hillary Clinton, President Obama, and the Bush family. (Santilli's inflammatory comments include saying the he wants to shoot Clinton "in the vagina and let her suffer right before my eyes" over her supposed "treason.")
While it's tempting to dismiss Santilli as just another crackpot with a microphone and an Internet connection, his show has been validated by appearances from major gun activists like Pratt and Nugent.
Nugent and Pratt's appearances on Santilli's show are not an aberration; they're symptomatic of how prominent gun activists have teamed up with fringe conspiracy theorists to oppose gun legislation and spin fantastical theories about the government disarming (or going to war with) American citizens.
Working with these fringe hosts may be a deliberate strategy; during an appearance with infamous conspiracy theorist Alex Jones last year, Pratt praised Jones for helping increase GOA's exposure, saying "thank you for having me on, because we have a much bigger voice because of you, my friend." (During that same interview, Pratt suggested the government may have been behind the mass shooting in Aurora.)
In this report, we look at gun activists' appearances with:
Less than 24 hours after Alex Jones theorized that a "weather weapon" could have been used to cause the devastating Oklahoma tornado, conservative gossip Matt Drudge returned to his pattern of promoting the conspiracy theorist.
On May 21, Jones told a caller that the government has the ability to "create and steer groups of tornadoes" and that if people spotted helicopters and small aircraft "in and around the clouds, spraying and doing things" in Oklahoma, it could be evidence that a "weather weapon" was used.
Today Drudge prominently links to a story on Jones' website Infowars in the upper left hand corner of his site. The linked story claims that "armed Homeland Security guards" were "policing free speech" by appearing outside an IRS building in St. Louis during a Tea Party protest.
Drudge later changed the headline, linking to the same story:
Media Matters has previously documented that Drudge has linked to Jones at least 244 times in the last two years, and that Drudge contributor Joseph Curl worked with Jones to "crash" a party being held by former Bush staffers.
Jones hailed Drudge for pushing "into the mainstream media" his conspiracy theory that the Department of Homeland Security was stockpiling ammunition for use against American citizens while Drudge said 2013 would be the "year of Alex Jones."
Conspiracy theorist radio host Alex Jones explained to his audience today how the government could have been behind the devastating May 20 tornado in Oklahoma.
On the May 21 edition of The Alex Jones Show, a caller asked Jones whether he was planning to cover how government technology may be behind a recent spate of sinkholes. After laying out how insurance companies use weather modification to avoid having to pay ski resorts for lack of snow, Jones said that "of course there's weather weapon stuff going on -- we had floods in Texas like fifteen years ago, killed thirty-something people in one night. Turned out it was the Air Force."
Following a long tangent, Jones returned to the caller's subject. While he explained that "natural tornadoes" do exist and that he's not sure if a government "weather weapon" was involved in the Oklahoma disaster, Jones warned nonetheless that the government "can create and steer groups of tornadoes."
According to Jones, this possibility hinges on whether people spotted helicopters and small aircraft "in and around the clouds, spraying and doing things." He added, "if you saw that, you better bet your bottom dollar they did this, but who knows if they did. You know, that's the thing, we don't know."
Republican congressmen are giving credibility to Alex Jones and his conservative fringe website Infowars.com, which popularized a conspiracy theory that DHS is stockpiling ammunition for nefarious purposes. The conspiracy theory has now inspired legislation known as the AMMO Act of 2013, which seeks to limit the ammunition purchasing power of the Department of Homeland Security (DHS), even though the underlying theory was based on flawed math and a mischaracterization of the facts.
Conspiracy theorist Alex Jones went on a rambling, transphobic rant during his radio show, warning that protecting the rights of transgender people will cause them to start "vomiting and crapping all over the place."
During the April 30 edition of his radio show, Jones launched a screed against the "globalist mafia," which he blamed for efforts to reduce discrimination against transgender people. After claiming that he isn't bothered by transgender people - but that their "fake rights" don't exist - Jones warned that "transvestites" would "throw up all over the walls" in public bathrooms. He continued by peddling a number of outrageous, damaging stereotypes about transgender people:
JONES: They're saying in high schools, in junior highs now, they're going to have - men can decide to be in the women's bathroom if they want. You're like 'well big deal, that's their gender.' It's all about these fake rights that don't exist versus my basic liberty being taken. It's not that I'm against people that think they're a woman or a man or whatever. I don't even care. Give me a break. It's not even on my radar screen. I could care less. I care about people.
I dealt at Access TV with a famous Austin transvestite, who died a few years ago, who they're talking about building a statue to, going in the bathroom, men and women, and vomiting all over the walls when they would do whatever they were doing in there. I mean, I'm talking about several transvestites cramming their way into the men's bathroom, the women's bathroom. You'd go in there to comb your hair before you went on air, there they were. And they finally got thrown out of there because of it and said it was because of discrimination because they were transvestites. No. It was because whatever they were injecting in there made them throw up all over - I mean imagine every week throw up all over the walls. And then I had an office by this guy. The bad luck is I had an office where we would look down, turned out he lived around the block, and I would have to watch him every day in the cheerleader outfit, through my office window, on the air, doing deals and stuff in cars and stumbling around everywhere. And then I'm not a trendy because I don't bow down. I had to go in there store, there was a grocery store next door... you know with crap dripping down his leg, stinking. And I'm supposed to just go 'oh, you're a trendy with rotten teeth hanging out of your head, and a weird bald head, you're in a dress. Here, here, here, here, please, please more diarrhea running down your leg.
I don't want my daughters growing up in a country where some transvestite comes walking into the thing hopped out of their brain on drugs vomiting and crapping all over the place. [emphasis added]
From the April 30 edition of MSNBC's Martin Bashir:
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The ties between conspiracy theorist Alex Jones and right-wing megaphone Matt Drudge remain strong, with Jones revealing that he spent time yesterday with one of Drudge's employees and crediting Drudge with pushing one of his conspiracy theories "into the mainstream media."
Matt Drudge, who has described 2013 as the "year of Alex Jones," promoted Jones' website, Infowars, 244 times over the last two years and 50 times since the year began on The Drudge Report. Conservatives have urged Drudge to stop linking to Jones after the latter suggested the Boston Marathon bombings were a "false flag" attack perpetrated by the federal government.
On his radio show today, Jones said he was "hanging out" with The Drudge Report's Joseph Curl at a hotel in Houston, Texas where the pair tried "to crash the private Bush-Cheney party" being held in concert with the dedication ceremony for President George W. Bush's presidential library.
Matt Drudge has long been conspiracy theorist Alex Jones' biggest ally. According to a Media Matters review, the heavily-trafficked Drudge Report has promoted at least 50 separate articles at Jones' Infowars website in 2013, and has linked to at least 244 different articles on the site in the past two years.
Drudge announced this week that he had privately told friends that 2013 would be the "year of Alex Jones." Considering Drudge's penchant for promoting Jones and his Infowars website, those comments are more of a promise than a prediction.
Alex Jones is a radio host famous for pushing absurd conspiracy theories about a host of issues, including that the U.S. government perpetrated or was otherwise involved in the 9-11 attacks, the Sandy Hook elementary school massacre, the Oklahoma City bombing, the Space Shuttle Colombia disaster, and the Aurora movie theater shooting.
Jones has lately made headlines for his most recent conspiracy that the Boston Marathon bombings were a "false flag" attack staged by the government. Drudge has provided several links to Jones' site in the days since Jones started floating Boston conspiracies, including an article highlighting the father of the bombing suspects claiming his sons had been set up.
The links to Jones' site in the wake of the Boston bombings are not surprising; he has sent a steady stream of traffic there in 2013.
Among the fifty Infowars pieces promoted by Drudge so far in 2013: a story mulling over claims that Venezuelan President Hugo Chavez may have been "surreptitiously" given cancer, possibly by the U.S. government; numerous articles promoting conspiracies about supposedly ominous ammunition purchases made by the Department of Homeland Security; and a story comparing Obama to "other tyrants" -- including Stalin, Hitler, and Mao -- that have "used kids as props."
Drudge has been consistently linking to Jones' site for years (Drudge Report also features two permanent links to the Infowars mainpage). Among the 244 Infowars articles Drudge has promoted since April 2011:
The right wing media's promotion of a widely-debunked Alex Jones conspiracy theory about the Department of Homeland Security's (DHS) ammunition acquisitions prompted House Republicans to hold a hearing to investigate. The theory, which assigns some sinister motivation behind the recent ammo purchases, first gained traction on the websites of conspiracy theorist Alex Jones before finding its way to Fox News and Fox Business and finally to the halls of Congress.
On April 25, Republican Reps. Jim Jordan (OH) and Jason Chaffetz (UT) held a joint hearing "to examine the procurement of ammunition by the Department of Homeland Security and Social Security Administration Office of Inspector General." The hearing followed right wing media reports speculating about the reasons for the acquisitions.
The conspiracy theory picked up steam in March 2012 after a series of reports were posted to Alex Jones' InfoWars.com, including one that claimed "it's not outlandish" to conclude that the government, "is purchasing the bullets as part of preparations for civil unrest." An opinion piece at The Daily Caller cited the reports to suggest that the Obama administration is planning to kill thousands of American citizens. The DHS purchases were brought up on Fox News, prompting Fox and Friends co-host Brian Kilmeade to ask, "why they need all those bullets." And while covering the story, Fox Business host Lou Dobbs wondered why the government was "arming up" while trying to "disarm American citizens."
Forbes contributor Ralph Benko wrote that "It's Time For A National Conversation," and called for Congressional action:
If Obama doesn't show any leadership on this matter it's an opportunity for Rep. Darrell Issa, chairman of the House Oversight and Government Reform Committee, and Rep. Michael McCaul, chairman of the House Committee on Homeland Security, to summon Secretary Napolitano over for a little national conversation. Madame Secretary? Buying 1.6 billion rounds of ammo and deploying armored personnel carriers runs contrary, in every way, to what "homeland security" really means.
Reps. Jordan and Chaffetz answered that call.
As Media Matters has previously noted, the claim that DHS is stockpiling ammunition for some ominous purpose is simply wrong. In reality, the Associated Press reported that while DHS did buy 1.6 billion rounds of ammunition, the government bought the bullets in bulk to save money on ammunition used in training and in the field. As the AP noted, "More than 90 federal agencies and 70,000 agents and officers used the department's training center last year." On a separate occasion, Media Matters reported that DHS responded that ammunition purchases are lower than in previous years and that while the law allows DHS to set purchase contracts of billions of rounds in order to reduce prices and save money, the government hasn't actually purchased nearly that many rounds.
Alex Jones, who has called President Obama the "global head of Al Qaeda," and claimed that the terrorist attacks in Boston, New York City, and Oklahoma City were carried out or sponsored by the government, has gained influence with the right wing media. Recently, Drudge Report's Matt Drudge promised that 2013 would be "year of Alex Jones."
UPDATE: The hearing on Alex Jones' conspiracy theory inspired new legislation that's now before Congress. On April 26, U.S. Sen. Jim Inhofe (R-OK) and Rep. Frank Lucas (R-OK) introduced bills in both chambers of Congress in order to limit federal agencies from stockpiling ammunition. From Inhofe's statement (emphasis added):
"President Obama has been adamant about curbing law-abiding Americans' access and opportunities to exercise their Second Amendment rights," said Inhofe. "One way the Obama Administration is able to do this is by limiting what's available in the market with federal agencies purchasing unnecessary stockpiles of ammunition. As the public learned in a House committee hearing this week, the Department of Homeland Security has two years worth of ammo on hand and allots nearly 1,000 more rounds of ammunition for DHS officers than is used on average by our Army officers. The AMMO Act of 2013 will enforce transparency and accountability of federal agencies' ammunition supply while also protecting law-abiding citizens access to these resources."