As Jeffrey St. Clair commented some months ago when the Manafort indictment was announced, if the laws on foreign lobbying were truly enforced the D.C. gravy train would come to a halt. Now Mueller has referred cases involving three big names --Tony Podesta, Vin Weber and Greg Craig (two of whom are prominent Democrat lobbyists) -- to the U.S. attorney's office in Manhattan:
Under American law, anyone who lobbies or conducts public relations on behalf of a foreign interest in the United States must register with the Justice Department. The law carries stiff penalties, including up to five years in prison. But it had rarely been enforced, and thus widely ignored, until recently.
Now, it appears to have become a weapon for prosecutors. Michael T. Flynn, the former national security adviser, was facing possible charges of violating the law over his secret work for the Turkey during the campaign before he agreed to cooperate with Mr. Mueller last year.
The three cases referred to prosecutors in New York appear to be another sign that the Justice Department intends to more strenuously enforce the law.
Yet, as the cases show, such investigations often confront prosecutors with interlaced financial arrangements that can prove difficult to untangle.
The Podesta Group, Mr. Podesta’s firm; Mercury Public Affairs, where Mr. Weber worked; and Skadden, where Mr. Craig practiced, were all recruited by Mr. Manafort to assist with his work in Ukraine on behalf of that country’s president at the time, Viktor F. Yanukovych, who was considered a Kremlin ally.
But two of the firms — the Podesta Group and Mercury Public Affairs — were retained through a nonprofit group in Brussels, the European Center for a Modern Ukraine. The nonprofit was directed by Mr. Manafort, and the firms lobbied in Washington on behalf of the nonprofit for what Mr. Manafort billed as Mr. Yanukovych’s efforts to move Ukraine into the West.
The firms were paid more than $1.1 million each for the work. But they did not initially register to lobby with the Justice Department as foreign agents. Doing so would have required them to make detailed disclosures of the lobbying activity they had performed.
They instead had filed less detailed lobbying reports with Congress, based at least partly on misleading characterizations that Mr. Manafort’s deputy later admitted to providing. The firms retroactively registered to lobby for foreigners with the Justice Department in 2017. The Podesta Group collapsed in part because of the scrutiny from the case.
Skadden was hired directly by Mr. Yanukovych’s government to analyze the prosecution of one of Mr. Yanukovych’s leading political rivals, former Prime Minister Yulia V. Tymoshenko. Led by Mr. Craig, the firm published a report in 2012 that was used — mostly without success — to try to allay concerns about Mr. Yanukovych’s leadership in Washington.
Skadden also did not register its activity under lobbying rules, despite Mr. Craig himself being involved in promoting the report to journalists and members of Congress — activity that experts said should have prompted registration requirements.
Mr. Craig left Skadden in April as investigators made inquiries about his work with Mr. Manafort. While the departure was presented as voluntary, a lawyer familiar with the situation said that Mr. Craig was forced out.
Mr. Mueller’s team repeatedly referenced the work of the firms in his filings in Mr. Manafort’s case, including accusing Mr. Manafort and his longtime deputy of using an offshore account to “funnel $4 million to pay for the report” from Skadden.
Mr. Mueller’s team also indicted a Skadden lawyer who worked with Mr. Manafort on the report. The lawyer pleaded guilty to lying to investigators about his communications with a former Trump campaign aide, and has already completed a jail sentence.
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