Menendez allegations took place during lobbying lull for Egypt

From: POLITICO Influence - Friday Sep 22,2023 09:48 pm
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By Caitlin Oprysko

Presented by

the American Cancer Society Cancer Action Network

With Daniel Lippman

MENENDEZ ALLEGATIONS CAME DURING LOBBYING LULL FOR EGYPT: Senate Foreign Relations Chair Bob Menendez’s indictment this morning on corruption charges including accepting bribes to take actions benefiting the Egyptian government alleges activities that took place during a lull for Cairo’s footprint on K Street, according to PI’s analysis of FARA filings.

— The charges unveiled against Menendez, his wife and multiple businesspeople allege that between 2018 up until at least 2022, Menendez “provided sensitive U.S. Government information and took other steps that secretly aided the Government of Egypt,” including “‘with respect to foreign military sales and foreign military financing’ — matters over which Menendez had significant influence” as the top Democrat on the powerful Foreign Relations Committee, our Erica Orden and Matt Friedman note.

— In exchange, prosecutors said Menendez and his wife received hundreds of thousands of dollars in cash, gold, home mortgage payments and more. Menendez dismissed the charges as “baseless allegations,” saying prosecutors had “misrepresented the normal work of a Congressional office,” but stepped down from his role as Foreign Relations chair in the meantime.

— Just before the activities in question, DOJ filings show the Egyptian government went on somewhat of a hiring spree in anticipation of the incoming Trump administration. Cairo hired three new lobbying firms throughout 2017 to represent Cairo alongside what was then called Glover Park Group, who had been working for Egypt since 2013.

— But those contracts lasted a little over a year at most, and when Glover Park Group (now called FGS Global) split with Egypt in January 2019, only Hill and Knowlton Strategies, which began working for Egypt's foreign investment ministry in 2017, was registered under FARA to advocate for Cairo.

— Egypt’s hiring in Washington picked up after Joe Biden won the 2020 election, including the Ministry of Foreign Affairs’ signing of Brownstein Hyatt Farber Schreck — and Menendez’s former House GOP counterpart Ed Royce — to a $65,000-per-month contract just days after Biden was projected to be president-elect. Brownstein continues to represent Cairo, along with subcontractor Holly Strategies Incorporated.

— During the period covered by the indictment, “Egypt was among the largest recipients in the world of U.S. military aid,” despite concerns about the government’s human rights record — an image at least some of Egypt’s lobbyists worked to help shed. Egypt’s lobbyists also tried to nudge Washington to help break a stalemate in negotiations over a dam project important to the government — a mantle the indictment alleges Menendez also took up at the behest of Egyptian officials.

TGIF and welcome to PI. Drop me a line: coprysko@politico.com. And be sure to follow me on X, the platform formerly known as Twitter: @caitlinoprysko.

 

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LONG HEADING BACK TO BGR: "Ryan Long, a senior health policy staffer for Speaker Kevin McCarthy, is rejoining top lobbying firm BGR Group," POLITICO's Megan Wilson reports. "Long, who is slated to start the new role next month, has spent most of his 25-year Washington career on Capitol Hill."

— "He joined McCarthy’s Republican leadership office in 2021 from the House Energy and Commerce Committee, where he'd served as its GOP staff director."

— "During his stint at BGR Group from 2013 to 2018, his client roster included the leading drugmaker lobby — the Pharmaceutical Research and Manufacturers of America — insurer Centene, patient group Kidney Care Partners and AdvaMed, the industry group that represents medical device manufacturers. Before that, Long worked as chief health counsel on the House Energy and Commerce Committee."

TECH GROUP ASKS DOJ FOR DEI ASSURANCE: Following the Supreme Court’s ruling this summer striking down affirmative action for colleges, the tech industry is urging the Biden administration to weigh in on corporate diversity, equity and inclusion hiring practices — seen as newly vulnerable as part of a campaign on the right against corporations taking stances on social issues.

— “In the face of a political attack on diversity efforts in the private sector, we urge the Civil Rights Division of the Department of Justice to issue guidance to the private sector expressly affirming that corporate diversity, equity, and inclusion policies in hiring remain protected,” the Chamber of Progress — which counts Meta, Apple, Amazon, Uber, Google and more among its partners — said in a letter today to DOJ civil rights chief Kristen Clarke and Associate Attorney General Vanita Gupta.

— The group pointed to a missive last month from more than a dozen Republican state attorneys general warning the heads of top corporations that they could face “serious legal consequences” as a result of corporate diversity efforts, which the officials argued is unlawful under the same basis as the Supreme Court’s affirmative action ruling.

— “It is important that private employers be advised that the legal arguments underpinning the Republican attorneys general letter fall apart under scrutiny,” Jess Miers, the group’s legal advocacy counsel, added, noting that the court’s opinions in SFFA v. Harvard and SFFA v. UNC addressed only race-conscious admissions practices in higher education, and even then exempted military academies like West Point.

— Miers also pointed to resources on the rulings DOJ issued to colleges in its aftermath, arguing that the department should issue similar guidance for the private sector, where the tech industry had been a vocal advocate for corporate diversity programs. “[T]he reality is that the threat of liability will have a chilling effect on companies’ readiness to develop diversity and inclusion initiatives, regardless of the benefit such practices have for a company’s bottom line,” Miers wrote.

CFTC SCRAPS ELECTION BETTING BID: “Wall Street's top derivatives regulator has rejected a controversial bid to open up U.S. elections to the world of political gambling,” POLITICO’s Declan Harty reports.

— “The Commodity Futures Trading Commission on Friday said it has blocked a proposal by Kalshi Inc. to give investors, day traders and political junkies a new way to legally bet on which party will control Congress, following a more than yearlong lobbying blitz by the derivatives exchange startup.”

— “In a statement, CFTC Chair Rostin Behnam said the agency found that Kalshi's plans would have constituted gaming and run afoul of the public interest. Behnam also said the contracts would have included activity — betting on elections — that is illegal in several states. The CFTC voted 3-1 to turn down Kalshi's plan, with Commissioner Caroline Pham sitting out the vote.”

— “Kalshi CEO Tarek Mansour said in an email that the company ‘fundamentally’ disagrees with the CFTC's decision.” The plan saw support from parties from former Obama White House economic adviser Jason Furman to Jeff Yass's Susquehanna International Group, among others, but even recently ran “into a wall of pushback from Capitol Hill … as lawmakers fret about the potential implications for U.S. elections.”

KEEPING UP WITH THE KOCHS: ProPublica’s latest revelations on Supreme Court justices’ ties to deep-pocketed interests with issues before the court feature the Koch network. Joshua Kaplan, Justin Elliott and Alex Mierjeski unearthed Justice Clarence Thomas’ previously undisclosed participation in at least two Koch donor summits over the years, including attending a private dinner with donors in 2018.

— “That puts Thomas in the extraordinary position of having served as a fundraising draw for a network that has brought cases before the Supreme Court, including one of the most closely watched of the upcoming term,” they write. A spokesperson for Stand Together denied that Thomas had been involved in any fundraising discussions and that his presence indicated anything nefarious.

— Still, the revelation comes ahead of a term during which the court will hear a case that “could give the network a historic victory: limiting federal agencies’ power to issue regulations in areas ranging from the environment to labor rights to consumer protection. After shepherding the case to the court, Koch network staff attorneys are now asking the justices to overturn a decades-old precedent. (Thomas used to support the precedent but flipped his position in recent years.)”

 

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Jobs Report

— The National Automobile Dealers Association has hired Kristen Prather as director of policy and grassroots advocacy. She was previously state director of grassroots programs at the Credit Union National Association.

Neil Quinter has joined the News/Media Alliance as senior vice president of global government affairs, Morning Tech reports. Quinter has previously worked as chief counsel to Sen. Dianne Feinstein (D-Calif.) and as minority chief counsel and staff director of the Senate Judiciary Technology, Terrorism and Government Information Subcommittee.

Patrick Sweeney is now vice president for political and public affairs at Content Creative Media. He previously founded Targeted Strategies.

Mark Adams will be vice president for external relations and resource development at the International Foundation for Electoral Systems. He previously was director of institutional fundraising at Population Services International.

 

GO INSIDE THE CAPITOL DOME: From the outset, POLITICO has been your eyes and ears on Capitol Hill, providing the most thorough Congress coverage — from political characters and emerging leaders to leadership squabbles and policy nuggets during committee markups and hearings. We're stepping up our game to ensure you’re fully informed on every key detail inside the Capitol Dome, all day, every day. Start your day with Playbook AM, refuel at midday with our Playbook PM halftime report and enrich your evening discussions with Huddle. Plus, stay updated with real-time buzz all day through our brand new Inside Congress Live feature. Learn more and subscribe here.

 
 
New Joint Fundraisers

None.

New PACs

None.

New Lobbying REGISTRATIONS

Brownstein Hyatt Farber Schreck, LLP: Lake Charles Exports, LLC

Brownstein Hyatt Farber Schreck, LLP: University Of Colorado Health

Desimone Consulting, LLC: City Of Olympia, Wa

Ejk, LLC: Weitzman National Museum Of American Jewish History

Integrated Solutions Group: National Minority Quality Forum Action Network

Ipolicy Solutions: Cellino Biotech Inc.

Mindset Advocacy, LLC: Manufactured Housing Institute

The Madison Group: Paret Mining LLC

New Lobbying Terminations

Ice Miller Strategies LLC: Lit Communities

K&L Gates, LLP: National Association Of Chapter Thirteen Trustees (Nactt)

Prairie Road, LLC (Fka Mr. Robert Powers): Ortho Molecular Products, Inc.

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Fight Cancer. Make Time.

 
 

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