Billionaire Harlan Crow Bought Property From Clarence Thomas. The Justice Didn’t Disclose the Deal.

This story first appeared at ProPublica. ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.

In 2014, one of Texas billionaire Harlan Crow’s companies purchased a string of properties on a quiet residential street in Savannah, Georgia. It wasn’t a marquee acquisition for the real estate magnate, just an old single-story home and two vacant lots down the road. What made it noteworthy were the people on the other side of the deal: Supreme Court Justice Clarence Thomas and his relatives.

The transaction marks the first known instance of money flowing from the Republican megadonor to the Supreme Court justice. The Crow company bought the properties for $133,363 from three co-owners — Thomas, his mother and the family of Thomas’ late brother, according to a state tax document and a deed dated Oct. 15, 2014, filed at the Chatham County courthouse.

The purchase put Crow in an unusual position: He now owned the house where the justice’s elderly mother was living. Soon after the sale was completed, contractors began work on tens of thousands of dollars of improvements on the two-bedroom, one-bathroom home, which looks out onto a patch of orange trees. The renovations included a carport, a repaired roof and a new fence and gates, according to city permit records and blueprints.

A federal disclosure law passed after Watergate requires justices and other officials to disclose the details of most real estate sales over $1,000. Thomas never disclosed his sale of the Savannah properties. That appears to be a violation of the law, four ethics law experts told ProPublica.

The disclosure form Thomas filed for that year also had a space to report the identity of the buyer in any private transaction, such as a real estate deal. That space is blank.

“He needed to report his interest in the sale,” said Virginia Canter, a former government ethics lawyer now at the watchdog group CREW. “Given the role Crow has played in subsidizing the lifestyle of Thomas and his wife, you have to wonder if this was an effort to put cash in their pockets.”

Thomas did not respond to detailed questions for this story.

In a statement, Crow said he purchased Thomas’ mother’s house, where Thomas spent part of his childhood, to preserve it for posterity. “My intention is to one day create a public museum at the Thomas home dedicated to telling the story of our nation’s second black Supreme Court Justice,” he said. “I approached the Thomas family about my desire to maintain this historic site so future generations could learn about the inspiring life of one of our greatest Americans.”

Crow’s statement did not directly address why he also bought two vacant lots from Thomas down the street. But he wrote that “the other lots were later sold to a vetted builder who was committed to improving the quality of the neighborhood and preserving its historical integrity.”

ProPublica also asked Crow about the additions on Thomas’ mother’s house, like the new carport. “Improvements were also made to the Thomas property to preserve its long-term viability and accessibility to the public,” Crow said.

Ethics law experts said Crow’s intentions had no bearing on Thomas’ legal obligation to disclose the sale.

The justice’s failure to report the transaction suggests “Thomas was hiding a financial relationship with Crow,” said Kathleen Clark, a legal ethics expert at Washington University in St. Louis who reviewed years of Thomas’ disclosure filings.

There are a handful of carve-outs in the disclosure law. For example, if someone sells “property used solely as a personal residence of the reporting individual or the individual’s spouse,” they don’t need to report it. Experts said the exemptions clearly did not apply to Thomas’ sale.

The revelation of a direct financial transaction between Thomas and Crow casts their relationship in a new light. ProPublica reported last week that Thomas has accepted luxury travel from Crow virtually every year for decades, including private jet flights, international cruises on the businessman’s superyacht and regular stays at his private resort in the Adirondacks. Crow has long been influential in conservative politics and has spent millions on efforts to shape the law and the judiciary. The story prompted outcry and calls for investigations from Democratic lawmakers.

In response to that reporting, both Thomas and Crow released statements downplaying the significance of the gifts. Thomas also maintained that he wasn’t required to disclose the trips.

“Harlan and Kathy Crow are among our dearest friends,” Thomas wrote. “As friends do, we have joined them on a number of family trips.” Crow told ProPublica that his gifts to Thomas were “no different from the hospitality we have extended to our many other dear friends.”

It’s unclear if Crow paid fair market value for the Thomas properties. Crow also bought several other properties on the street and paid significantly less than his deal with the Thomases. One example: In 2013, he bought a pair of properties on the same block — a vacant lot and a small house — for a total of $40,000.

In his statement, Crow said his company purchased the properties “at market rate based on many factors including the size, quality, and livability of the dwellings.”

He did not respond to requests to provide documentation or details of how he arrived at the price.

Thomas was born in the coastal hamlet of Pin Point, outside Savannah. He later moved to the city, where he spent part of his childhood in his grandfather’s home on East 32nd Street.

“It had hardwood floors, handsome furniture, and an indoor bathroom, and we knew better than to touch anything,” Thomas wrote of the house in his memoir, “My Grandfather’s Son.”

He inherited his stake in that house and two other properties on the block following the death of his grandfather in 1983, according to records on file at the Chatham County courthouse. He shared ownership with his brother and his mother, Leola Williams. In the late 1980s, when Thomas was an official in the George H.W. Bush administration, he listed the addresses of the three properties in a disclosure filing. He reported that he had a one-third interest in them.

Thomas was confirmed to the Supreme Court in 1991. By the early 2000s, he had stopped listing specific addresses of property he owned in his disclosures. But he continued to report holding a one-third interest in what he described as “rental property at ## 1, 2, & 3” in Savannah. He valued his stake in the properties at $15,000 or less.

Two of the houses were torn down around 2010, according to property records and a footnote in Thomas’ annual disclosure archived by Free Law Project.

In 2014, the Thomas family sold the vacant lots and the remaining East 32nd Street house to one of Crow’s companies. The justice signed the paperwork personally. His signature was notarized by an administrator at the Supreme Court, ​​Perry Thompson, who did not respond to a request for comment. (The deed was signed on the 23rd anniversary of Thomas’ Oct. 15 confirmation to the Supreme Court. Crow has a Senate roll call sheet from the confirmation vote in his private library.)

Thomas’ financial disclosure for that year is detailed, listing everything from a “stained glass medallion” he received from Yale to a life insurance policy. But he failed to report his sale to Crow.

Crow purchased the properties through a recently formed Texas company called Savannah Historic Developments LLC. The company shares an address in Dallas with Crow Holdings, the centerpiece of his real estate empire. Its formation documents were signed by Crow Holdings’ general counsel. Business records filed with the Texas secretary of state say Savannah Historic Developments is managed by a Delaware LLC, HRC Family Branch GP, an umbrella company that also covers other Crow assets like his private jet. The Delaware company’s CEO is Harlan Crow.

A Crow Holdings company soon began paying the roughly $1,500 in annual property taxes on Thomas’ mother’s house, according to county tax records. The taxes had previously been paid by Clarence and Ginni Thomas.

Crow still owns Thomas’ mother’s home, which the now-94-year-old continued to live in through at least 2020, according to public records and social media. Two neighbors told ProPublica she still lives there. Crow did not respond to questions about whether he has charged her rent. Soon after Crow purchased the house, an award-winning local architecture firm received permits to begin $36,000 of improvements.

Crow’s purchases seem to have played a role in transforming the block. The billionaire eventually sold most of the other properties he bought to new owners who built upscale modern homes, including the two vacant lots he purchased from Thomas.

Crow also bought the house immediately next door to Thomas’ mother, which was owned by somebody else and had been known for parties and noise, according to property records and W. John Mitchell, former president of a nearby neighborhood association. Soon the house was torn down. “It was an eyesore,” Mitchell said. “One day miraculously all of them were put out of there and they scraped it off the earth.”

“The surrounding properties had fallen into disrepair and needed to be demolished for health and safety reasons,” Crow said in his statement. He added that his company built one new house on the block “and made it available to a local police officer.”

Today, the block is composed of a dwindling number of longtime elderly homeowners and a growing population of young newcomers. The vacant lots that the Thomas family once owned have been replaced by pristine two-story homes. An artisanal coffee shop and a Mediterranean bistro are within walking distance. Down the street, a multicolored pride flag blows in the wind.

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PBS Joins NPR, Becomes Second Major News Org To Stop Using Twitter Over Musk Label

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Garland Says DOJ Will Seek Emergency Relief From Supreme Court After 5th Circuit Mifepristone Ruling

Attorney General Merrick Garland said Thursday in a statement that the Justice Department will appeal to the Supreme Court after the Fifth Circuit Court of Appeals reimposed restrictions on mifepristone that the Food and Drug Administration (FDA) had lifted. 

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DeSantis Tries To Stop Florida GOP From Endorsing Trump: ‘Calls Have Been Made’

As he gears up for an expected 2024 presidential bid, Gov. Ron DeSantis (R) is trying to convince Florida Republican members of Congress to support his campaign—and away from Trump’s, NBC News first reported.

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The Surreal, Absurd and Possibly True Story of the Latest Classified Leak

Late yesterday evening, The Washington Post published the first detailed look at just how the currently unfolding and massive leak of classified U.S. intelligence happened. It’s an almost literally incredible story and some of it does strain credulity. The gist of the story is that an early-to-mid 20s member of the U.S. military with wide-ranging access to highly classified intelligence set up a Discord chat group made up of pandemic-bored gamers in which he operated as something between a guru and a cult leader. The group was a few dozen men, many of them teens and some from abroad. The Post describes him as a “young, charismatic gun enthusiast.”

He sketched out a quasi-paranoid anti-statist worldview, and mixed garden variety far-right and racist memes with emotional support and guidance. Gun worship was also central. He claimed to be able to foretell events and in some cases appeared able to do so. At the center of his enterprise was sharing classified material, which, over the last month, started spreading from the original Discord server and shaking up international relations around the world. The classified documents were the validator of his inside status, his role at the center of the overbearing American state. In a sense he was running his own private Q cult, with a small group of bored-depressed gamer teens. Only in this case, “OG,” as he was called in this tiny community, really did have access to some of the U.S. government’s most closely guarded secrets.

If this sounds unreal, you’ve got it about right. One surreal passage in the Post story describes getting the permission of the parents of one of its sources since the source is still a minor and apparently came into “OG’s” orbit as a young teen.

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Senate Democrats Ask DOJ To Probe Expulsions Of Tennessee State Legislators

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Jack Smith Barrels Toward An Epic Confrontation With Donald Trump

A lot of things happened. Here are some of the things. This is TPM’s Morning Memo.

Shit Is Getting Real

Over the past several days, the full scope, scale and speed of Special Counsel Jack Smith’s investigations of Donald Trump have come more fully into focus. The daily drip of accounts from witnesses, defense lawyers, and others almost certainly not associated with the government provides a somewhat skewed but still clarifying view into the legal jeopardy the former president faces at the federal level.

A few takeaways:

  • Speed: Smith is moving as fast as the legal system will allow and doesn’t appear encumbered by lack of resources or institutional support. We don’t know exactly how many grand juries he’s overseeing in DC, but, as was reaffirmed yesterday by the WaPo, at least two of them “are meeting every week about Trump and his advisers on multiple fronts.” Trump and others are putting up various fights over executive privilege, attorney-client privilege, and the Speech or Debate Clause, which must be litigated and that necessarily takes time. But the courts are moving quickly (for them), allowing Smith to speed those arguments through the appeals process, where for the most part he keeps winning. The clock is ticking, though, with a pressing need to make charging decisions before the 2024 campaign season is in full swing.
  • Scope: The most self-contained probe involves the Mar-a-Lago documents case. The Jan. 6 probe is much more wide-ranging (more on that in a moment). But the thoroughness and aggressiveness with which Smith picked up from the original DOJ components handling these cases suggests a clear understanding of the stakes, the risks, and the historic significance of what is unfolding.
  • Scale: The Jan. 6 investigations of the higher ups, especially when coupled with the hundreds of criminal prosecutions of the rioters, which the Justice Department has already called the biggest probe in its history, appears to be as sweeping and all-encompassing as it deserves. We still don’t know the exact contours of this probe, but it ranges from the fake electors scheme, to the financing of the Jan. 6 rallies, to the bogus fundraising the Trump campaign was doing off the Big Lie, to the connections between Trump World and the leading edge of the provocateurs at the Capitol. In other words, the investigation seems to rise to the historic moment.

If it sounds like I’m cheerleading Jack Smith and certain outcomes of his investigations, I’m not. The point all along hasn’t been to send Trump to jail, or to win indictments, or to punish those responsible. The point has been to investigate it with the speed, scale and scope the democracy-rending scheme deserves and then let the facts and the law lead where they may. For a time in 2021, it looked alarmingly unlikely that a proper investigation was ever going to happen. That is no longer the case.

Smith Eyes Trump’s Bogus Fundraising Off The Big Lie

WaPo adds to what CNN has been reporting for a while: The Big Lie-focused fundraising between Election Day 2020 and Inauguration Day 2021 is a specific focus of Jack Smith’s investigation:

  • Smith has sent subpoenas since the beginning of March about the fundraising angle to Trump advisers and former campaign aides, Republican operatives and other consultants involved in the 2020 presidential campaign, according to the report.
  • “[P]rosecutors are said to be interested in whether anyone associated with the fundraising operation violated wire fraud laws, which make it illegal to make false representations over email to swindle people out of money.”
  • “The subpoenas seek more specific types of communications so that prosecutors can compare what Trump allies and advisers were telling one another privately about the voter-fraud claims with what they were saying publicly in appeals that generated more than $200 million in donations from conservatives, according to people with knowledge of the investigation.”

Tell Me More About The Map, Please!

In the Mar-a-Lago documents investigation, Jack Smith has zeroed in on a sensitive map containing intel that Trump took with him when he left office and allegedly showed off to aides and visitors, the NYT reports.

The story is full of new nuggets:

  • “One person briefed on the matter said investigators have asked about Mr. Trump showing the map while aboard a plane.”
  • “A third person with knowledge of the investigation said the map might also have been shown to a journalist writing a book.”
  • Investigators are also reportedly looking at whether Trump delayed his annual departure from Mar-a-Lago last year and sifted through boxes between the May grand jury subpoena for the return of documents and a June 3 visit from DOJ officials to retrieve them. Not all the sought-after documents were returned then, leading to the FBI search of MAL in August.

Abortion Pill Case Looks Headed To SCOTUS

The overnight ruling in the big Texas abortion pill case by the Fifth Circuit Court of Appeals was frankly a disaster.

You probably woke up to alerts that the appeals court issued a stay, which is true, but it’s only a partial stay and it’s reasoning is flawed in numerous ways.

This will almost surely force the Justice Department to go the conservative Supreme Court to try to obtain a more thorough stay blocking the lower court decision. I know that may sound like a fool’s errand, but these decisions are so bad that even the six-justice conservative majority may have trouble swallowing them. Either way, DOJ doesn’t have much choice and better to know the legal terrain as it is rather than as we might guess or imagine it to be.

TPM’s Kate Riga has a closer look at the late-night ruling.

Fox News Is In A World Of Hurt

The rapid-fire developments in the Dominion Voting Systems v. Fox landmark defamation case were nothing short of startling:

  • The judge imposed sanctions against Fox for withholding evidence from Dominion and misleading the court.
  • Angry about the conduct of Fox’s high-powered and respected legal team, the judge signaled he would appoint a special master to investigate the withholding of evidence and related matters, including it appears the failure to reveal that Rupert Murdoch is an officer of Fox News.
  • As if that weren’t enough, MSNBC’s Alex Wagner obtained some of the allegedly withheld evidence: audio tapes made by a former senior Fox News producer Abby Grossberg who is now suing the network. Here’s that segment:

Navarro Has To Cough Up Presidential Docs

For real now, Peter.

Madness

Donald Trump sues Michael Cohen – the lead witness in the New York state criminal cases against him – in federal court in Florida for half a billion dollars.

Trump Begs To Delay Carroll Defamation Trial

All Trump’s criming is going to make it hard for him to get a fair trial on E. Jean Carroll’s defamation case against him in New York. Okay, that’s not exactly Trump’s argument, but it’s laughable, especially with the prospect of more indictments soon in Georgia and DC.

Trump To Be Deposed Today In NY

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Feinstein Machinations

Amid new calls from Democratic elected to step down, Sen. Dianne Feinstein (D-CA) announced last night that she was stepping away from the Senate Judiciary Committee indefinitely. This allows Majority Leader Chuck Schumer (D-NY) to fill her seat on the committee and resume confirming federal judges. Judicial confirmations have been at a standstill for some two months on the closely divided committee as Feinstein was in poor health in California and unable to fulfill her duties.

Amazing Story

WaPo homes in on the Discord leaker.

Who Needs A Dog Whistle Anymore?

I hope you will become a TPM member!