Resolute abruptly lays off staff

From: POLITICO Influence - Thursday Nov 16,2023 11:27 pm

Nov 16, 2023

Presented by CTIA Wireless Foundation

With Daniel Lippman and James Bikales

RESOLUTE ABRUPTLY LAYS OFF STAFF: At 3:30 p.m. on Tuesday, a Teams invite popped onto the calendars of nearly a dozen employees of Illinois-based Resolute Public Affairs, including the members of its Washington office: There was a call in an hour, and everyone invited had to be on it.

— On the call, Resolute CEO Greg Goldner told the group that “business development hasn’t gone the way we expected it,” and after a series of tough meetings with the firm’s founder and COO, Dave Smolensky, everyone on the call would be laid off — effective immediately, according to a person at the meeting.

— The group was told that their health insurance ends at midnight, and they’d be getting a letter with details on COBRA coverage. Their emails were shut off within hours, and they were told they’d be getting their last paychecks in the mail, but a former employee noted that the firm’s leadership had offered to serve as references for the staff being laid off.

— Before the brief call ended, Smolensky told the group: It was great working with you all. I’m sure I’ll see you around town. Thanks for your service.

— In total, 10 of the firm’s roughly 16 employees were laid off, former employees said, which included several senior employees in the D.C. office as well as staff in offices in Portland and Chicago.

— “Unfortunately, we had to make the tough decision to layoff our DC team because of consistent underperformance in the market,” Goldner said in a statement to PI.

— Adam Wilczewski, a former Commerce Department official who was laid off, disputed Goldner’s characterization of the firm’s performance. “That’s interesting because I have millions of dollars of proposals on his desk right now. That’s not what happened. That’s not what we were told,” he said. “People are shocked because they didn’t get phone calls, including all the clients in D.C. I wish him well in the next iteration in what he decides to do. There’s just some really good people who are really hurt by the way this went down.”

— The former employee, granted anonymity to describe their experience at the firm, said that while there had been talks recently about the need to bring in more business, they were unaware of any formal discussion about what sufficient performance looked like.

— The firm mostly does public affairs work that doesn’t trigger lobbying registration. Resolute-DC, the name of the firm’s Washington outpost, recently signed two new clients: An AI-driven drug company called Model Medicines and Rivada Networks, a communications company with a satellite business.

Happy Thursday and welcome to PI. We know you’re all smelling jet fumes, but PI must carry on next week, so send tips and tidbits about what the lack of a year-end omnibus means for your clients: coprysko@politico.com. And be sure to follow me on X, the platform formerly known as Twitter: @caitlinoprysko.

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FIRST IN PI — COALITION ASKS SBA TO RETHINK BIG BUSINESS PARTNERSHIPS: A coalition of small and independent business groups is calling on the Small Business Administration not to reup partnerships with major companies targeted by antitrust regulators as sponsors of the agency’s National Small Business Week.

— “In 2023 and preceding years, the financial sponsors for NSBW included corporations targeted by policymakers and regulators for their predatory tactics and harms to smaller competitors and consumers,” Small Business Rising, an anti-corporate monopoly group that has called for breaking up Amazon, wrote in a letter today to SBA Administrator Isabel Guzman and Major Clark, the deputy chief counsel of SBA’s advocacy office.

— The coalition, which includes the American Booksellers Association, American Independent Business Alliance, the Institute for Local Self-Reliance and Main Street Alliance, noted that Amazon, one of Small Business Week’s past sponsors, has been targeted by antitrust regulators at the FTC as well as state attorneys general, while another former sponsor, Visa, is being targeted by a bill in Congress aimed at disrupting the company’s partial dominance of the credit card market.

— “We urge the agency to enlist partners who are aligned with the SBA’s mission to ‘help Americans start, grow, and build resilient businesses,’ not mega-corporations that use their power and dominance in the market to stifle competition from smaller competitors,” the groups wrote.

— “While Amazon celebrates its small business partners every day, National Small Business Week gives us a special opportunity to honor them and demonstrate our steadfast commitment to their success,” Amazon spokesperson Tim Doyle told PI. “We share the same goal as SBA and that is for the continued success of small businesses in every community across the country,” Doyle added, saying that Amazon was proud to sponsor Small Business Week.

FIRST IN PI II — BERGMAN DOUBLES DOWN: Rep. Jack Bergman’s (R-Mich.) interest in a Qatari sovereign wealth fund’s $200 million investment into Monumental Sports & Entertainment, the parent company of the Washington Wizards and the Washington Capitals, has intensified, as he continues to scrutinize the deal, Daniel reports. Earlier this week, Bergman sent a trio of follow-up letters to MSE, the NBA and the NHL, clapping back at what he felt were dismissive replies to his first set of letters, which were sent late last month.

— In the letters Bergman asks a different set of questions of MSE, the NBA, and NHL concerning the particulars of the Qatari investment, and he seems to suggest that he is suspicious about the official response that the investment has been "closed." (A person familiar with his thinking confirmed that this is the case.)

— The person said that Bergman's suspicions include that the NHL gave no indication of the deal being completed in their response letter to him last month and although the NBA said the deal “closed” it didn't state that the deal had been finalized, meaning the money had been transferred.

— The letters appear to have been prompted by news that MSE is seeking $600 million in taxpayer funding for renovations to Capital One Arena, a project which MSE's spokesperson recently said was the reason for Qatar's $200 million investment. Spokespeople for MSE, the NBA, the NHL and the Qatar Investment Authority didn't respond to requests for comment.

AVIATION, ENERGY GROUPS LAUNCH SUSTAINABLE FUELS GROUP: Aviation, energy and agricultural interests are launching the Americans for Clean Aviation Fuels Coalition today to advocate for expanding the use of sustainable aviation fuels. Delta Air Lines, Airbus, ExxonMobil, Growth Energy, Corteva Agriscience, National Business Aviation Association, Indiana Soybean Alliance, Iowa Soybean Association, Missouri Soybeans and the Ohio Soybean Council are the founding members.

FLYING IN: Hundreds of HR leaders were on the Hill today for a fly-in organized by the Society for Human Resource Management. The HR professionals had meetings scheduled with DOL Wage and Hour Division Deputy Administrator Patricia Davidson, EEOC Chair Charlotte Burrows, NLRB Chair Lauren McFerran and Rep. Stephanie Bice (R-Okla.), with whom they planned to discuss AI issues, workplace development, immigration and workplace flexibility and leave — as well as the need for civility in Washington ahead of next year’s elections, according to the group.

— Meanwhile, dozens of small business owners were in town earlier this week to lobby against a proposal to increase capital requirements for large banks. Participants of the fly-in, which was organized by Goldman Sachs’ 10,000 Small Businesses Voices initiative, were set to meet with more than 40 lawmakers in both chambers of Congress from more than a dozen different states, as well as senior Fed officials.

— The fly-in was timed to a comment letter signed by more than 3,000 business owners warning the so-called Basel III Endgame standard would exacerbate businesses’ difficulty getting access to capital.

ICYMI WEDNESDAY — WHAT SIXTEEN THIRTY FUND SPENT: “The Sixteen Thirty Fund, a financial hub for liberal political activity in Washington and around the country, spent $196 million last year backing state ballot measures on abortion rights and helping Democrats to a better-than-expected result in the 2022 midterm elections, among other efforts,” NBC News’ Scott Bland reports.

— “The big spending, detailed in a new tax filing obtained by NBC News, reflects the massive growth in anonymously funded, big donor-fueled political groups on the left since Donald Trump was elected president in 2016.”

— “The Sixteen Thirty Fund, which is registered as a nonprofit and does not have to disclose its funders, has exploded in size since then, and it spent even more in 2022 than the $141 million it disbursed in 2018, the Trump-era midterm election. By comparison, the group spent $11 million in 2014.”

— “Yet the numbers, while large, may also show how money in politics has tightened up somewhat in the last few years after a period of rapid growth. Political nonprofits often see their spending jump significantly in election years, but Sixteen Thirty Fund's outlays in 2022 were similar to its levels in 2021.”

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BANKING DEMS WANT MORE LOBBYING DEETS: Democrats on the Senate Banking Committee are asking the SEC to require greater disclosure from public companies about what they’re lobbying on, The Hill’s Taylor Giorno reports.

— Sens. Elizabeth Warren (D-Mass.), Jon Tester (D-Mont.), Tina Smith (D-Minn.), John Fetterman (D-Pa.) and Banking Chair Sherrod Brown (D-Ohio) want the agency to craft rules that “require registered companies to disclose, as relevant, any lobbying strategy, the aggregate amount of direct or indirect contributions to registered state and federal lobbyists, and any material risks related to or arising from the registrant’s lobbying strategy and expenditures.”

— “Federal lobbying expenditures hit $4.1 billion in 2022, the highest level since 2010, according to disclosures analyzed by the money-in-politics research group OpenSecrets,” per Giorno, and this year’s spending is on pace to exceed that. “While these figures are staggering, they provide little insight into the interests that companies spend millions each year to advance,” the senators wrote to SEC Chair Gary Gensler.

HOUSE ETHICS DROPS SANTOS REPORT: “A bipartisan ethics report concludes there is ‘substantial evidence’ that George Santos violated federal criminal laws, which will almost certainly trigger another attempt to expel him from the House,” POLITICO’s Katherine Tully-Mcmanus, Sarah Ferris and Olivia Beavers write.

— “The explosive report released Thursday by the House Ethics Committee found that Santos spent campaign funds on Botox treatments and lavish Atlantic City trips with his husband. It also details the New York Republican’s efforts to obscure his money trail, as he sought to build a ‘fictional’ financial narrative on official records, according to the 55-page report.”

— “‘At nearly every opportunity, he placed his desire for private gain above his duty to uphold the Constitution, federal law, and ethical principles,’ the report reads. ‘Santos sought to fraudulently exploit every aspect of his House candidacy for his own personal financial profit.’”

— The report does not issue any recommendations for sanctions, with its authors citing the need to finish their probe quickly, but it does call for Santos to be publicly condemned. Meanwhile the freshman lawmaker, who has pleaded guilty to nearly two dozen federal fraud and campaign finance charges, announced this morning that he would not run for reelection, even as he blasted the salacious ethics report.

SPOTTED at a 16th anniversary party for Capitol Counsel at their new offices, per a tipster: Sens. Joe Manchin (D-W.Va.), Chris Coons(D-Del.), Bob Casey (D-Pa.), Liz Johnson, Reps. Gabe Amo (D-R.I.), Richard Neal (D-Mass.), Andrea Salinas (D-Ore.), Carol Miller (R-W.Va.), Jim McGovern (D-Mass.) and Frank Pallone (D-N.J.); Tiffany Guarascio of the House Energy and Commerce Committee, Sam Whitfield and Colin Carr of the Consumer Bankers Association, Rob Griner of U.S. Bank, Pedro Pablo Permuy of Green T Advisors, Allison Shuster of TransUnion, Jamie Gillespie of Fox Corp., Gerry Harrington of Capitol City Group, David Leiter of Plurus Strategies, Ashley Forrester of Samsung Electronics America, Sally McAuliffe of Better Way PAC, Matt Gorman and Patrick Gorman of Gorman Strategy Group, Tucker Knott of Sen. Ted Budd’s (R-N.C.) office, James Min of Rep. Kevin McCarthy’s (R-Calif.) office, James Decker of Rep. Burgess Owens’ (R-Utah) office, Jack Lincoln of Rep. Ken Calvert’s (R-Calif.) office and Shannon Finley, John Rafaelli, David Jones, Denise Morrisey, Pat Roberts, Ann Jablon, Jeff Carroll, Warren Tryon, Jonathan Kott and Lyndon Boozer of Capitol Counsel.

— And at the U.S. Travel Association’s congressional reception following the Future of Travel Mobility summit at Union Station, per a tipster: Sens. Amy Klobuchar (D-Minn.), Rick Scott (R-Fla.) and Budd, Reps. Debbie Wasserman Schultz (D-Fla.), Rick Larsen (D-Wash.), William Timmons (R-S.C.), Marc Molinaro (R-N.Y.) and Mark Alford (R-Mo.); Chris Nassetta of Hilton and Geoff Freeman, Tori Emerson Barnes and Erik Hansen of U.S. Travel.

— And at an event celebrating diversity hosted by Forbes Tate Partners, per a tipster: Reps. Hank Johnson (D-Ga.), Jonathan Jackson (D-Ill.) and Nanette Barragán (D-Calif.) and Amo; Koby Koomson, former ambassador to the U.S. for Ghana, Hope Goins of the House Homeland Security Committee, Marcus Garza of Johnson’s office, Marvin Figueroa of Sen. Laphonza Butler’s (D-Calif.) office, Brianna Walker of Sen. Cory Booker’s (D-N.J.) office, Will Reese and Didier Barjon of Senate Majority Leader Chuck Schumer’ s office, Jeyben Castro of the House Office of Diversity, Justin Oh of the House Democratic Caucus, Symone Sanders-Townsend of MSNBC, Alivia Roberts of the Motion Picture Association, Dan Turton of Tyson Foods, Zach Sentementes of PhRMA, Crystal Riley of AbbVie, John Mason of Altria, Winta Menghis of Amgen, Lillian German of Blue Cross Blue Shield, William Cunningham of Match Group, Dileep Srihari of Sony PlayStation, Jimmie Williams of Washington Literacy Center, Jonathan Martinez of Haleon, Erin Darbouze of Fight Colorectal Cancer, Chris DeVore of the Alliance of Community Health Plans, Lauren Lyles-Stolz of the National Association of Chain Drug Stores, Adrian Boafo of Oracle and Vince Evans of the Congressional Black Caucus.

A message from CTIA Wireless Foundation:

Jobs Report

— Elana Broitman has joined the Roosevelt Group as a senior adviser. She was previously senior vice president of public affairs at Jewish Federations of North America.

— New Heights Communications has hired Erika Gulija as a director. She previously was a principal for Fireside Campaigns.

— Ethan Sorcher is now a legislative assistant for foreign affairs for Rep. Josh Gottheimer’s (D-N.J.). He was previously the domestic affairs coordinator at the Israeli Embassy.

New Joint Fundraisers

MCGUIRE VICTORY FUND (Mcguire for Virginia, Seal Team PT PAC)

Ohio Senate Victory 2024 (DSCC, Sen. Sherrod Brown)

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New PACs

Better America Project (Hybrid PAC)

equityandvision (PAC)

Garden State Integrity (Super PAC)

Latinos for America (Hybrid PAC)\

REWILDING PAC (PAC)

SEAL TEAM PT PAC (Leadership PAC: John McGuire)

Texas Democratic Alliance Political Action Committee (Hybrid PAC)

New Lobbying REGISTRATIONS

Alston & Bird LLP: Balsam Brands, Inc.

Baker & Hostetler LLP: Southern Research

Brownstein Hyatt Farber Schreck, LLP: Policy And Taxation Group

Dinino Associates, LLC: Mayer Brown LLP Obo Circle Internet Financial, Inc.

Hj Tobin Policy Consulting: Family Equality

Jones Walker, LLP: Fairwinds Technologies

Kelsay Strategies LLC: Computer & Communications Industry Association

Lsn Partners, LLC: Wall'S Gator Farm Ii, LLC

S-3 Group: Sandoz Inc.

The Nickles Group, LLC: Hanwha Q Cells America Inc.

The Nickles Group, LLC: Healthcare Workforce Coalition

Venn Strategies: Brainfutures

Venn Strategies: Cala Health

Venn Strategies: Pnm Resources

Venn Strategies: U.S. Battery Machine Builders

New Lobbying Terminations

Faegre Drinker Biddle & Reath LLP: Step One Foods

K&L Gates, LLP: Abpro Corporation

Michael Haridopolos: Bell Legal Group

Phoenix Strategies Inc.: The Washington Consulting Group, Inc.

A message from CTIA Wireless Foundation:

Innovative social entrepreneurs are taking advantage of the power of wireless and 5G’s speed, efficiency, and versatility to create groundbreaking solutions. CTIA Wireless Foundation’s Catalyst program awards over $200,000 each year to social entrepreneurs using wireless for good. The Catalyst 2023 Winners – ReThink, Dope Nerds and Healium – are using 5G to combat online harassment, provide STEM education to underserved students and deliver veteran mental health services. CTIA Wireless Foundation is committed to supporting social entrepreneurs that may face barriers to accessing capital, and the Catalyst 2023 winners have lived experiences with the issues they are working to solve, giving them the perspective and passion needed to make a difference. CTIA Wireless Foundation is proud to support the trailblazing, mobile-first work of the 2023 Catalyst Winners. Learn more.