Menendez hit with foreign agent charge

From: POLITICO Influence - Thursday Oct 12,2023 10:25 pm

Oct 12, 2023

With Daniel Lippman

FEDS TACK ON FOREIGN AGENT CHARGE: Embattled New Jersey Sen. Bob Menendez is facing new allegations of covertly acting as a foreign agent of Egypt while serving as the top Democrat on the Senate Foreign Relations Committee, according to a superseding indictment unveiled this afternoon.

— The senator, who was indicted on corruption charges last month for allegedly accepting bribes of cash, gold and a luxury car in exchange for taking actions to benefit the Egyptian government, is now also charged with conspiracy for a public official to act as a foreign agent, along with his wife and an Egyptian-American businessman also charged in the initial indictment, POLITICO’s Erica Orden writes.

— In addition to allegedly using his immense sway over the flow of foreign military aid and arms sales to act for Egypt’s benefit in exchange for bribes, prosecutors say Menendez “promised to take and took a series of acts on behalf of Egypt, including on behalf of Egyptian military and intelligence officials” in breach of his official duty.

— While FARA is a mostly civil statute with its primary objective being transparency (it’s not illegal to act as a foreign agent, only to act as an unregistered foreign agent) the new charge against Menendez and his circle cites a related criminal statute that altogether prohibits officials like members of Congress from acting in a way that would require FARA registration.

— A conspiracy charge might also be easier for prosecutors to prove at trial, especially given the Justice Department’s checkered record on prosecuting foreign agent cases — though Josh Rosenstein, a lawyer at Sandler Reiff Lamb Rosenstein & Birkenstock who advises clients on FARA compliance, noted that FARA charges have often historically been brought “as an adjunct to other criminal allegations,” rather than the core of prosecutors’ cases, oftentimes adding pressure on defendants to strike a plea deal.

— One major hurdle for prosecuting FARA violations is proof that a defendant knowingly and willingly did so, an element prosecutors hit at in the updated indictment, even if it’s unclear whether that would be necessary to prove in Menendez’s case.

— In any event, during the time period covered by the indictment, Menendez showed he had a clear grasp of the statute. The document highlights a letter sent by Menendez in 2020 to the then-head of DOJ’s National Security Division, which oversees FARA, urging the department to investigate a former member of Congress for potential FARA violations.

— “The Act is clear that acting directly or indirectly in any capacity on behalf of a foreign principal triggers the requirement to register under FARA,” Menendez wrote in the letter, which is still available on the Foreign Relations Committee’s website.

— Menendez reiterated his call for a FARA probe of former Rep. David Rivera in a letter to Attorney General Merrick Garland last year, writing that if an investigation found Rivera had acted as an unregistered foreign agent of the Maduro regime in Venezuela, “it is imperative that the Justice Department ensure he is held to account.” (Rivera was arrested last December on a string of charges including failure to register as a foreign agent of Venezuela.)

— “It would be hard for him to say he was completely ignorant about the legal obligations under FARA” given those letters, said Rosenstein.

Happy Thursday and welcome to PI. What else is going on out there? 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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ONLINE KIDS SAFETY LAWS RUN INTO LITIGATION BUZZ SAW: “Last fall, California lawmakers passed a sweeping online children’s privacy law aimed at regulating how some of the most popular social media and video game platforms treat minors. Many children’s groups heralded the measure, the first of its kind in the United States,” The New York Times’ Natasha Singer reports.

— “But last month, after a lawsuit filed by a tech industry group whose members include Meta and TikTok, a federal judge in California preliminarily blocked the law, saying it ‘likely violates’ the First Amendment.”

— “The judge’s decision was a blow to lawmakers, governors, children’s groups and parents across the United States hoping to curb the lure that platforms like TikTok, Instagram and YouTube hold for many children and teenagers. It was the latest courtroom setback for backers of new state laws designed to limit how online services are allowed to interact with young people.”

ANNALS OF FUNDRAISING DOWN ON THE BAYOU: “House speaker candidate Steve Scalise represents a Louisiana district where energy is a major economic driver. That’s helped him forge longstanding close ties to the oil and gas industry, with Koch Industries Inc. and Valero Energy Corp. among his recent top political action committee donors,” Bloomberg’s Kate Ackley reports.

— “Four of the five largest PAC donors to the Louisiana Republican’s joint fundraising committee, known as the Scalise Leadership Fund, hail from the sector and already this year have cut big checks to the sitting House majority leader, Federal Election Commission records show.”

— “The political fundraising of Scalise and his main competitor, House Judiciary Chairman Jim Jordan (R-Ohio), has grabbed a new spotlight because filling the party’s coffers is a major part of the job for modern-day Speakers. House Republicans voted behind closed doors Wednesday to nominate Scalise to be the next speaker, giving him more votes than Jordan.”

— “Oil and gas industry representatives view Scalise, who formerly served on the House Energy and Commerce Committee, as an ally, though they’re not making a public endorsement in the race. A Scalise spokesperson and a fundraising consultant didn’t respond to a request for comment.”

— “Former Scalise congressional aides represent oil and gas interests. Kelley Hudak, who managed business and outside coalitions efforts for Scalise’s whip team, joined the industry’s main lobbying group, American Petroleum Institute, earlier this year. The group’s outside lobbyists include former close Scalise aides Matt Bravo and Martin Reiser of the S-3 Group. API donated $5,000 to Scalise’s campaign earlier this year; it hadn’t disclosed any donations to Jordan’s campaign as of June 30, according to FEC records.”

CHIP LOBBY NABS MCCAUL AIDE: A top staffer to House Foreign Affairs Chair Michael McCaul (R-Texas) is headed back to K Street to join the Semiconductor Industry Association, one of the largest trade groups of chipmakers. Zach Isakowitz has joined SIA as a director of government affairs after about three years in McCaul’s office, most recently as his legislative director.

— Before that, Iskowitz held several roles at the Treasury Department and interned for former Sen. Rob Portman and Glover Park Group and Fierce, Isakowitz and Blalock, the predecessors of FGS Global and Fierce Government Relations, respectively.

— McCaul was a vocal champion of last year’s CHIPS and Science Act, and an original co-sponsor of the domestic manufacturing incentives bill that served as its foundation. Still, the China hawk has also supported export controls preventing the sale of technology for advanced semiconductors, with some chipmakers successfully pushing back on restrictions for semiconductor companies with a presence in China.

SPOTTED at a reception to mark the opening of Northeastern University's Capitol Hill office, per a tipster: Jack Cline of Northeastern University, Patrick Lyden of CurrentStrategic LLC, Randy Nuckolls of Dentons, Scott Sudduth of Washington Navigators, Toby Smith of the Association of American Universities, Michael Ledford of Lewis-Burke Associates, Anna Quider of The Quider Group, Sarah Spreitzer of the American Council on Education, Paul Weinberger of the University of Illinois, Robert Knotts of Georgia Tech, Tony Gibson of the University of Pittsburgh, Stan Skocki and Bill Couch of Ohio State University, Ian Grubman of Rutgers University, John Latini of the University of Alaska, Kristin Dini of Old Dominion University, Dianne Miller of Cornell University, Sarah Walter of Michigan State University, Jacob Dowd of Washington State University, Kola Akindele and Bogdan Vernescu of Worcester Polytechnic Institute and Julia Rowe of Northern Illinois University.

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Jobs Report

— Jessica Mackler will serve as interim president of EMILY’s List as the group looks for a new president to replace now-Sen. Laphonza Butler (D-Calif.). Mackler currently is senior vice president of campaigns.

— Retired Army Col. Derrick Lee joined SOSi as director for intelligence programs, per Morning Defense. He was the inspector general for U.S. Army Europe and Africa and before that assistant chief of staff for intelligence at NATO Allied Land Command.

— Ryan Jackson will join the American Chemistry Council as vice president of federal affairs, Morning Energy reports. He will succeed Ross Eisenberg, who is now leading the trade group's plastics division.

New Joint Fundraisers

None.

New PACs

77 Strong Committee (Super PAC)

Kennedy Independent (Super PAC)

Victory Includes Accountability Believability Leadership and Electability PAC (VIABLE PAC) (Super PAC)

New Lobbying REGISTRATIONS

Arentfox Schiff LLP: Donohoe Commercial Real Estate, LLC

Bridgebio Pharma, Inc.: Bridgebio Pharma, Inc.

Brownstein Hyatt Farber Schreck, LLP: American Security Fund

Cornerstone Government Affairs, Inc.: Scale Ai, Inc.

Mark Rey: South 32 Hermosa, Inc