While he had been building his business, some of Gingrich’s expensive lifestyle had been paid for by his nonprofit group, American Solutions for Winning the Future.
American Solutions spent $6.6 million on private air travel through Moby Dick Airways — a private charter service favored by many Republicans — during its four years of existence, amounting to about 13 percent of the group’s budget, according to a Washington Post analysis of disclosure records.
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)
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.
The former business associate of Gingrich’s, who was familiar with his finances, said Gingrich for at least two years insisted upon flying private charter jets everywhere he traveled, with most of the costs — ranging from $30,000 to $45,000 per trip — billed to American Solutions.
Gingrich aides would scramble to come up with American Solutions-related events to justify the billing, even if the actual reason for the trip was something connected to his health-care think tank, book sales or other profit-making venture, this source said.
The tab for private chauffeurs, primarily to ferry Gingrich and his wife, reached $200,000 to $300,000 per year, the source said.
“The unwritten rule was that Newt was doing everything he was doing for American Solutions, even though he clearly wasn’t,” the source said. “It was very excessive.”
Evans, however, disputed that, saying that Gingrich’s attorneys and accountants “flyspecked” every transaction to make sure that it was accounted for properly, and that the appropriate taxes were paid.
“If there was an American Solutions-paid-for plane, there was an American Solutions purpose and event,” Evans said.
The former speaker needed to charter aircraft because he could not make all his commitments on a commercial airline schedule, Evans said, adding that the high cost of his and his wife’s travel was “a product of how much they were going, not how they wanted to get there.”
Gingrich’s travel habits also contributed to his presidential campaign’s near-demise this summer. The campaign disclosed more than $1 million in debt in July, nearly half of which was owed to Moby Dick Airways.
For Gingrich, running for president has meant a big pay cut — and trimming back on luxuries. But in many ways, he suggested in an interview last month, it feels like a return to normal.
“I’ve been flying commercial my whole life,” Gingrich said. “I ran for Congress for five years and lost twice. Yeah, I lived off the land in the ’70s.”
And if the White House doesn’t work out, might he rebuild Newt Inc.?
“Sure,” he said. “I don’t know that I would do anything as big as the center. Certainly, I would have an adequate career.”
Staff writer Amy Gardner in Naples and staff researcher Lucy Shackelford contributed to this report.
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