Newt Gingrich Inc.: How the GOP hopeful went from political flameout to fortune

Anyone who doesn’t believe in an afterlife must not live in Washington. Rarely, however, has reincarnation been so lucrative as it has for the man who now tops some polls for the 2012 Republican presidential nomination.

Former House speaker Newt Gingrich transfigured himself from a political flameout into a thriving business conglomerate. The power of the Gingrich brand fueled a for-profit collection of enterprises that generated close to $100 million in revenue over the past decade, said his longtime attorney Randy Evans.

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Republican presidential candidate Newt Gingrich has acknowledged receiving personal compensation from Freddie Mac. The former House speaker left open the possibility that his consulting firm received between $1.6 million and $1.8 million. (Nov. 16)

Republican presidential candidate Newt Gingrich has acknowledged receiving personal compensation from Freddie Mac. The former House speaker left open the possibility that his consulting firm received between $1.6 million and $1.8 million. (Nov. 16)

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After leaving Congress under a cloud in 1999, Newt Gingrich transformed himself into an entrepreneur, building an empire of companies and nonprofits that took in about $150 million over the past decade. The former House speaker disentangled himself from most of the firms to run for president. Since then, some of the organizations have changed in his absence.
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After leaving Congress under a cloud in 1999, Newt Gingrich transformed himself into an entrepreneur, building an empire of companies and nonprofits that took in about $150 million over the past decade. The former House speaker disentangled himself from most of the firms to run for president. Since then, some of the organizations have changed in his absence.

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Among Gingrich’s moneymaking ventures: a health-care think tank financed by six-figure dues from corporations; a consulting business; a communications firm that handled his speeches of up to $60,000 a pop, media appearances and books; a historical documentary production company; a separate operation to administer the royalties for the historical fiction that Gingrich writes with two co-authors; even an in-house literary agency that has counted among its clients a presidential campaign rival, former senator Rick Santorum (R-Pa.).

Separate from all of that was his nonprofit political operation, American Solutions for Winning the Future. Before it disintegrated this summer in Gingrich’s absence, American Solutions generated another $52 million and provided some of the money that allowed the former speaker to travel by private jet and hired limousine.

Along the way, Gingrich has become a wealthy man, earning $2.5 million in personal income last year, according to his financial disclosure form.

As unforgiving as Washington can be, it has long had a soft spot for its has-beens, even those who gave up power in defeat or disgrace.

There is a well-trodden path from Capitol Hill to downtown law and lobbying firms, where former members of Congress can earn a far better living than they did when they were on the taxpayer’s dime — and still have afternoons free for golf.

But that would be a narrow and confining existence for a man who has always considered himself a transformational figure, and even a historic one.

“He just had a vision for being a great citizen,” said Evans, who set up Gingrich’s business operation and served as its chairman. “He looked for ways to participate in the dialogue that was going on.”

In advance of his presidential run, Gingrich disentangled himself from his business empire. His presidential campaign even had to pay $8,400 to Gingrich Productions for the right to use the domain name www.newt.org.

However, some of his dealings have come under new scrutiny as Gingrich’s campaign, which collapsed in June, has experienced a resurrection of its own.

Most controversial has been up to $1.8 million he collected in consulting fees from Freddie Mac, a government-backed firm whose lending practices conservatives blame for creating the conditions that enabled the housing crisis.

Gingrich and his allies portray his financial success as a natural result of a penchant for coming up with big ideas and his flair for selling them. They contend — and there is no evidence to the contrary — that Gingrich has never engaged in lobbying.

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