TED CRUZ SLJHE |txA-5 DIRKSEN BUILDING WASHINGTON. DC: 2051-H305 4202} 224-5922 'ltlnitrd rifitntw 0%El]fltE January 22, 2014 Eric H. Holder, Jr. Attorney General of the United States United States Department of Justice 950 Ave., NW. Washington, D.C. 20530 Dear Attorney General Holder: Eight months ago, on May 14, 2013, the Treasury Inspector General for Tax Administration issued a report concluding that the used inappropriate criteria that identified for review Tea Party and other organizations applying for tax-exempt status based upon their names or policy positions instead of indications of potential political campaign intervention?' The misuse of the IRS to target political opponents is a serious charge. That day, the President called the IRS's improper targeting of conservative groups "intolerable and inexcusable," and he "directed [Treasury] Secretary Lew to hold those responsible for these failures accountable."2 The President also said that "Americans have a right to be angry about it, a11d I'm angry about it." He pledged to work "hand in hand" with Congress to investigate this matter.3 Also on May 14, you publicly stated that you were ordering the Department of Justice to conduct a criminal investigation into the IRS's inappropriate targeting of conservative organizations. You called this targeting "outrageous and unacceptable.' Since then, Lois Lerner, the former Director of the IRS's Exempt Organizations Office, has invoked her Fifth Amendment right against self-incrimination and refused to answer questions from the House Oversight and Government Reform Committee.5 I Treasury Inspector General for Tax Administration, Inappropriate Criteria Were Used to ldenrifi' Tu.r-Exempt Applications for Rewew, May 14, 2013. 2 The White House, Smremenr by the May I4, 2013. 3 Chelsea J. Carter, Drew Griffin 8: David Fitzpatrick, 'Angry' Obcnna IRS Ieader's ouster ufier eonservun've.r targeted, CNN.com, May 16, 2013. 4 Brett Logiurato, Amnwey Genera! Eric Holder Orders (J (.'rinn'na! Into The IRS Scandal, Business Insider, May 14, 2013. 5 CQ Congressional Transcripts, House Overs:'qln' and Gcwernnzenr Reform Comnn'!!ee Hoids Hearin_g on the IRS Invesligulicm Concerning CQ, May 22, 2013; Lauren French Kelsey Snell, Lerner IRS have not done wromg Politico, May 22, 2013. Before that, Lerner had publicly "apologized" for the agency's abuse of power at an American Bar Association meeting.6 253 days have passed since both you and President Obama professed outrage at the IRS's wrongful conduct. To date, no one has been indicted. And it has been reported that the FBI plans not to file any criminal charges? Astonishingly, we now discover that the investigation is being led by a partisan Democrat who "donated a combined $6,750 to President Obama's elections and the Democratic National Committee between 2004 and 201 2."3 The lawyer leading the investigation did not come from the Public Integrity Section. Instead, it appears she was hand-picked from the Civil Rights Division, historically the most politically charged division at DOJ. The Department of Justice has long served as a bulwark for rule of law. And Attorneys General--in both parties--have long had the integrity to stand up to political pressure even ifit meant political trouble for the President who appointed them. When President Nixon faced charges of abusing government power for partisan ends, Elliot Richardson appointed Archibald Cox as Special Prosecutor, to pursue justice and to insulate the investigation from political pressure. Likewise, when President Clinton faced charges of ethical improprieties, Janet Reno appointed Robert Fiske as Independent Counsel, to pursue justice and to insulate the investigation from political pressure. Sadly, the current Department of Justice has failed to live up to its storied history. It strains credulity to say that, out ofthe over 14,000 employees at the Department of Justice, the only possible choice to lead the investigation was a major political donor to President Obama. This, on its face, is a significant conflict of interest. At the same time, this Administration is actively pushing new IRS rules governing ?50l(c)(4) organizations that would effectively legalize future IRS scrutiny of these conservative groups, by forcing them to disclose their donors if they wished to engage in voter education. And it has been reported that, with the 2014 elections approaching, promulgating these rules are a top partisan objective of President Obama and Democrats seeking political advantage.9 6 Zachary A. Goldfarb Karen Tumulty, c:dnH'fs targeting for mu' scrim'mJ in 2012 e/ecrion, Washington Post, May I0, 20 I 3; Stephen Ohlemacher, /or Ta:-gating Tea Party Groups, Associated Press, May 10, 20l3; Rick lvlasen, 0fLm'.9 Lermir Remarks at 'l'u.r C0m'i'ove1'sv, Election Law Blog, May It, 20l3. 7 Devlin Barett, Cri'nH'm':/ in IRS Probe, Wall St. Journal, Jan. I3, 20l4. 8 Josh Hick, (_)brmm donur feuding Depurrmeni Washington Post, Jan. 9, 2014. 9 Kimberley A. Strassel, IRS Tc'u'geH'n_g and 2014, Wall St. Journal, Jan. 16, 2014. As matters currently stand, an impartial observer could reasonably conclude (1) that the "outrage" and "anger" expressed by both you and President Obama was less than sincere, (2) that the investigation was designed to brush the matter under the carpet and--especially--to avoid any facts coming to light that might implicate the White House, and (3) tl1c Administration intends to continue using the machinery of government to target its political opponents. Were it otherwise, why has no one been indicted? Why are no indictments planned? Wl1y has the Administration stonewalled Congress? Why has no effort been made to let the public find out the truth about "who knew what and when?" And why was the investigation led by a hand-picked major Obama donor? This is a sad state of affairs. The widespread perception of partisan bias, of manifest conflict of interest, besmirches the reputation ofthe Department of Justice. And it undermines confidence in rule of law. General Holder, you have served a substantial portion of your professional career at the Department. I ask you personally to demonstrate the independence that so many of your predecessors have demonstrated, and act to p1'ese1've the integrity of the Department of Justice. Specifically, I would ask you to immediately appoint a special prosecutor, with meaningful independence, to investigate the IRS's illegal targeting of conservative groups. That prosecutor should be given the latitude to follow the facts wherever they may lead, including the White House, and he or she should be charged both to prosecute any criminal conduct and to report to Congress and the American people as to what occurred, why it occurred, who knew about it, and what can be done to be sure it never happens again. This special prosecutor should be someone whose integrity is beyond reproach. And, at a minimum, he or she should not be a major financial backer of President Obama. Sincerely, 74%' Ted Cruz U.S. Senator