Two Singham-linked nonprofits are formally fighting House Ways and Means subpoenas over CCP-linked funding, accusing lawmakers of McCarthy-era tactics as Chairman Jason Smith vows to force compliance.
Two nonprofits tied to Shanghai-based tech mogul Neville Roy Singham are formally fighting House subpoenas, accusing lawmakers of McCarthy-era tactics in an investigation into Chinese Communist Party-linked funding of American tax-exempt groups. Attorneys for BreakThrough News and The People's Forum Inc. filed written objections this week arguing the subpoenas violate the First Amendment and demanding the House Ways and Means Committee back off. The committee is not backing down.
Chairman Jason Smith, R-Mo., made clear the panel intends to use every tool available to force compliance. "Make no mistake: Compliance with a congressional subpoena isn't optional," Smith said. The fight is the latest escalation in a probe that has already drawn in the Justice Department and exposed what investigators describe as a sprawling network of shell companies and donor-advised funds moving foreign money into U.S. politics.
In letters from their attorneys, BreakThrough News, a pro-China media outlet based in New York City, and The People's Forum Inc., a socialist activist group, argued the subpoenas are aimed at punishing their speech and political activity rather than investigating tax law. Both organizations used identical language in their filings, declaring that "a witch-hunt is not a valid legislative purpose."
The attorneys compared the committee's investigation to the House Un-American Activities Committee of the 1940s and 1950s, accusing lawmakers of reviving "Red Scare" tactics. They argued the demands are so broad they would expose journalism, political activity, donors and associations protected by the First Amendment, and claimed the organizations "cannot be required to respond" to a process that "seeks to punish, silence, expose, and condemn protected expression."
The objections echo a public campaign launched after the subpoenas became public, with far-left influencers including Hasan Piker rallying supporters around what they called "the McCarthy trials."
The Ways and Means Committee issued subpoenas to BreakThrough News, The People's Forum and Tricontinental: Institute for Social Research after months of document requests that the panel says produced "a single responsive document" -- nothing. The cover letters detail $40.3 million in funding that flowed from Singham's network to the three organizations, routed through shell companies and donor-advised funds that investigators say were designed to obscure the original source of the money.
Singham, a 72-year-old American who sold his software company ThoughtWorks for an estimated $785 million in 2017 and now lives in Shanghai, has directed at least $278 million into six core nonprofits that promote socialist, communist and pro-China causes, according to the committee. The breakdown includes $22.44 million to The People's Forum, $16.76 million to Tricontinental and $1.098 million to BreakThrough BT Media Inc., the parent of BreakThrough News.
The committee says the investigation is examining whether existing tax laws adequately protect against foreign influence and whether Congress needs to strengthen them. Tricontinental submitted a response by the Aug. 7 deadline, according to a source familiar with the probe, while the other two groups chose to fight.
The congressional fight is running parallel to a federal grand jury investigation in Manhattan into alleged financial crimes involving Singham and the organizations he funded. The probe, launched by U.S. Attorney Jay Clayton for the Southern District of New York, is examining possible wire fraud, bank fraud and money laundering, according to sources familiar with the matter.
The committee has not accused the subpoenaed organizations of criminal wrongdoing, and it has emphasized that its inquiry is directed at financing arrangements and organizational structure rather than the groups' speech or political viewpoints. But lawmakers have warned the network's layered financial architecture is precisely the kind of arrangement that allows foreign actors to hide their influence operations inside the U.S. tax-exempt sector.
The standoff now moves toward a decision point. The organizations have refused to comply as the subpoenas are presently framed, and the committee has signaled it will push forward regardless. If the groups continue to withhold documents, the panel could pursue contempt proceedings, which would send the fight to the House floor and potentially the courts.
For now, the committee is holding the line on oversight of foreign-linked money in American politics. The question is whether the nonprofits' First Amendment objections hold up in a legal battle -- or whether the full scope of the Singham network's financing is about to come into view.
Two Singham-linked nonprofits are formally fighting House Ways and Means subpoenas over CCP-linked funding, accusing lawmakers of McCarthy-era tactics as Chairman Jason Smith vows to force compliance.
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