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Tony Podesta Lobbied For Russia’s ‘Uranium One’ And Did Not File As A Foreign Agent


Reported by Richard Pollock | Reporter | 7:57 PM 11/05/2017

WASHINGTON, DC – JUNE 19: Federal Bureau of Investigation (FBI) Director Robert Mueller testifies during a hearing before the Senate Judiciary Committee June 19, 2013 on Capitol Hill in Washington, DC. Mueller confirmed that the FBI uses drones for domestic surveillance during the hearing on FBI oversight. (Photo by Alex Wong/Getty Images)

Tony Podesta’s lobbying firm, the Podesta Group, represented the Russian-owned company Uranium One during former President Barack Obama’s administration and did not register under the Foreign Agents Registration Act, The Daily Caller News Foundation has determined.

Podesta collected lobbying fees of $180,000 from Uranium One, according to the non-partisan Center for Responsive Politics, that discloses lobbying documents filed with Congress. The uranium company states on its web site it is a “wholly owned subsidiary” of RUSANO, the Russian State Corporation for Nuclear Energy.

Special Counsel Robert Mueller already is scrutinizing Podesta and his firm for allegedly failing to register as a lobbyist for the European Center for a Modern Ukraine, a Ukrainian government entity.  His role there is tied up with former Trump campaign chairman Paul Manafort who was indicted on 12 counts on Oct. 30, including the failure to register under the Foreign Agents Registration Act (FARA).

A cabinet-led federal committee that included former Secretary of State Hillary Clinton, approved the sale of Uranium One to RUSANO in 2010, that permitted Russia to acquire twenty percent of America’s uranium reserves.

The sale of Uranium One to Russia today is the subject of at least three separate congressional committee investigations trying to determine if Bill Clinton and the Clinton Foundation received large financial gifts from Russians and from Uranium One’s owner and CEO. The committees are trying to determine if the gifts paved the way for the sale.

The committees also are looking into new reports that an FBI informant obtained damaging criminal activity information on the Russian side of the sale which was never passed on to the Committee on Foreign Investment in the United States (CIFIUS), the cabinet-level committee that had to approve sales of U.S. companies and strategic assets to foreign countries.

The committees investigating Uranium One are the House Permanent Select Committee on Intelligence, the House Oversight and Government Reform Committee, and the Senate Judiciary Committee.

The Podesta Group lobbied on behalf of Uranium One for part of 2012 and in 2014 and 2015, according to the Center for Responsive Politics. The Podesta Group was not listed as a lobbyist for Uranium One during its sale to ROSATOM in 2010.

The Podesta Group did not file under FARA during any of the years when it lobbied both Congress and the executive branch, according to the Justice Department website.

Reporting requirements under FARA demand far more rigorous public disclosure requirements — including contract information — than reports filed under congressional lobbying disclosure rules.

“The Podesta Group takes legal compliance seriously, and it complied with the law here,” a Podesta Group company spokesman told TheDCNF.

GOP Rep. Devin Nunes of Calif., who chairs the House intelligence committee, told TheDCNF he is concerned about the Podesta’s lobbying activities for Uranium One and its decision not to file under FARA.

“This would be yet another unusual and concerning development around the Uranium One issue that Congress will be looking into,” Nunes said in a statement.

The question of whether companies representing foreign government entities should file under FARA got a jolt on Oct. 30 when Mueller issued an indictment of Manafort and Richard Gates, Manafort’s long-time business associate. The Special Counsel’s action raised FARA compliance to a new level with his charge that Manafort and Gates should have registered under FARA.

“From in and about and between 2008 and 2014, both dates being approximate and inclusive, within the District of Columbia and elsewhere, the defendants Paul J. Manafort, Jr., and Richard W. Gates III knowingly and willfully, without registering with the Attorney General as required by law, acted as agents of a foreign principal, to wit, the Government of Ukraine,” the indictment stated.

GOP Sen. Chuck Grassley of Iowa, the chairman of the Senate Judiciary Committee — another committee looking into the Uranium One sale — hailed Mueller’s decision to go after FARA violators.

“It’s good to see the Justice Department taking seriously its responsibility to enforce the Foreign Agents Registration Act,” Grassley said in a statement issued after the Manafort indictment. “I’ve been raising concerns about lackluster enforcement of this foreign influence disclosure law for years now, regardless of administration or political party.”

“The dirty little secret is that lots of people across the political spectrum in Washington have skirted their FARA registration obligations for years with little to no accountability,” he added.

The Podesta Group is referred to throughout the Manafort indictment as “Company B,” according to NBC News, citing three unnamed sources with knowledge of the investigation.

Mueller is “sending a signal” about getting tough on FARA enforcement, Scott MacGriff, who left the Justice Department last November after eight years as a fraud attorney and now serves the law firm of Dickinson Wright, told TheDCNF.

“It may be that Mueller is trying to send a signal that it’s no longer going to be observed in the breach and FARA filings can no longer be an afterthought,” MacGriff said in an interview with TheDCNF. “It’s a signal and a reminder that companies have an affirmative obligation to take a closer look at their responsibilities under FARA.”

Former U.S. Attorney Joseph diGenova agreed. “The FARA filings are very, very important as witnessed by the Manafort indictment. And they’re viewed that way now by the government apparently with some rigor,” he told TheDCNF.

The Special Counsel has subpoenaed Podesta to testify and has requested records from the Podesta Group, according to The New York Times. The Special Counsel’s office would not provide to TheDCNF deadlines facing Podesta and his company.

Feeling pressure from the Special Counsel’s deepening probe, however, on Oct 30 Podesta took the dramatic step to resign from the lobbying giant he co-founded with his brother John Podesta in 1988. His brother served as Hillary Clinton’s national 2016 campaign chairman, served as chief of staff in Bill Clinton’s White House and served as “special counselor” to Obama.

In the Manafort case, the Podesta Group did not file under FARA after years of lobbying for the European Center which supported Viktor Yanukovych, Ukraine’s pro-Russian president. Yanukovych fled to Russia after he was deposed by its parliament as unruly street demonstrations rocked the country.

Only in April of this year did the Podesta Group retroactively register as a foreign agent for the European Center. Manafort belatedly registered as a foreign agent in June as well. The retroactive registration did not help Manafort and he was indicted by the Special Counsel.

Uranium One touched Bill and Hillary Clinton along with their long-time friend Frank Giustra who was the owner of Uranium One. Bill received $500,000 for a speaking engagement in Moscow only three weeks after ROSATOM announced its bid for Uranium One. Bill and Giustra co-founded the Clinton-Giustra Enterprise Partnership. The Clinton Foundation’s website reports that Giustra donated more than $25 million. Peter Schweizer, author of “Clinton Cash” found nine Uranium One investors donated $145 million to the Clinton Foundation.

Uranium One burst back into national news on Oct. 25 in the wake of reports from The Hill and Circa that an FBI informant possessed corruption information concerning the Russian parties that was withheld from Congress, as well as from the CIFIUS board.

Despite the FBI’s critical information, in 2010 the Obama administration — including Clinton — approved the sale to ROSATOM. The sale effectively handed over 20 percent of America’s uranium reserves to Moscow.

As Secretary of State, Clinton voted to approve the sale of Uranium One before CIFIUS. So did Attorney General Eric Holder whose FBI  held the information of criminal activity.

The Podesta Group defended its decision not to file under FARA regarding Uranium One, saying they were exempt from FARA under a Justice Department rule in 28 CFR 5.304 paragraph C.

The Podesta Group “complied with the law here by following a Department of Justice rule that is specifically intended to cover firms that represent any business ‘owned in whole or in part by a foreign government,’” a Podesta spokesman told TheDCNF.

The paragraph in question exempts firms from FARA registration that engage in political activities on behalf of a foreign corporation — “even if owned in whole or in part by a foreign government” — as long as the corporation is not directed by a foreign government or foreign political party, and as long as the activities do not “directly promote” the public or political interests of a foreign government or foreign political party.

Dan Pickard, an attorney at Wiley Rein who handles FARA issues, told TheDCNF he believes the Podesta Group should have registered under FARA.

“It is important to note that exemptions are not applicable where the foreign principal is either a government of a foreign country or a foreign political party,” Pickard told TheDCNF in an interview.

DiGenova agrees. “If you are representing a foreign government, person or entity, you have to register under FARA,” he said, adding: “The failure to file a FARA registration would require some scrutiny.”

MacGriff says Section 22 of the U.S. Code provides guidance to companies about whether or not they should register under FARA.

“An Agent of a foreign principal is defined by statute at 22 U.S.C. section 611(c) to include any person whose activities are directly or indirectly supervised, directed, controlled, financed or subsidized in whole or in major part by a foreign principal,” he told TheDCNF.

“Where there is uncertainty as to whether a foreign government directly or indirectly ‘supervised, directed, controlled, financed or subsidized in whole or in major part’ the underlying activities, prudence dictates making a FARA filing in an overabundance of caution,” MacGriff said.

ROSATOM’s chairman is Boris Gryzlov, who is a senior Kremlin insider. He served as Speaker of the Duma from 2003 to 2011. He also was a member of the Russian Federation Security Council, according to Bloomberg News.

ROSATOM is “often compared with a government ministry, it has a clout in Moscow matched only by oil and gas giants Rosneft and Gazprom,” the Financial Times reported.

EXCLUSIVE: Tony Podesta Made $500K Lobbying For Chinese Firm Convicted Of Illegal Sales To Iran


Reported by Photo of Richard Pollock Richard Pollock | Reporter | 9:46 PM 03/27/2017

Tony Podesta (Youtube screen grab)

Democratic super-lobbyist Tony Podesta grossed more than $500,000 to represent a Chinese company criminally convicted in March of sending illegal shipments of telecom equipment to Iran, The Daily Caller News Foundation’s Investigative Group has learned.

The seriousness of the illegal sales to Iran were so extreme and continued for so long — from 2010 to last year — the Department of Justice (DOJ) imposed a record $1.19 billion fine on the ZTE Telecommunications company, making it the largest penalty ever imposed in a U.S. sanctions case.

The Chinese firm hired the Podesta Group, one of Washington’s biggest and best-connected lobbying companies in the nation’s capital, in January 2016. ZTE retained Podesta’s personal help as negotiations intensified for a final resolution with DOJ during the final year of President Barack Obama’s tenure in the White House.

The Shenzhen-based company pleaded guilty on March 7 to violating a 22-year-old ban on shipments to Iran, including “conspiring by illegally shipping … U.S.-origin items to Iran, obstructing justice and making a material false statement,” according to the DOJ.

The Department of Commerce also released other documents showing ZTE executives had “ongoing projects in all five major embargoed countries — Iran, Sudan, North Korea, Syria and Cuba.”

“We are putting the world on notice: The games are over,” said Commerce Secretary Wilbur L. Ross when the guilty plea settlement was announced. “Those who flout our economic sanctions and export control laws will not go unpunished — they will suffer the harshest of consequences.”

The ZTE equipment included network servers, optical devices and other telecommunication equipment, but also shipped surveillance software that could be used to spy on Iranian dissidents, DOJ said.

While Podesta was lobbying the Obama administration, his brother, John Podesta, was campaign chairman of former Secretary of State Hillary Clinton’s 2016 presidential run. The brothers’ relationship meant Tony had special clout within the Obama administration as ZTE’s negotiations with DOJ progressed.

Podesta also had personal connections throughout the Democratic Party. He was former President Bill Clinton’s presidential campaign director and worked for four prior Democratic candidates, including former Sens. George McGovern, Edward Kennedy and Walter Mondale, as well as former Massachusetts Gov. Michael Dukakis.

ZTE paid Podesta $35,000 per month as negotiations peaked in 2016, according to data provided by the Center for Responsive Politics. The payments to the Podesta Group began in January 2016 and continue to this day, according to his company’s lobbying disclosure forms. Podesta’s lobbying firm grossed $530,000 from ZTE through the first quarter of 2017.

The firm reported its activities to the clerk of the U.S. Senate, including actively lobbying officials at the departments of Justice, Commerce, Treasury and State, as well as the White House National Security Council (NSC). Podesta did not report his representation of ZTE to DOJ under the Foreign Agents Registration Act (FARA), and reports to the Senate clerk are much less detailed than those required under FARA. Last year, Podesta also avoided FARA regulations with another foreign-based client, Sberbank, Russia’s largest bank. Podesta received $170,000 for six months of work as he sought to lift U.S. economic sanctions then weighing on the Russian bank, but did not report it under FARA, as reported by TheDCNF on March 6 and March 7.

ZTE’s problems did not occur overnight but have been known throughout the nation’s capital since 2012. The case broke that year when the House Intelligence Committee released a scathing report that criticized the national security risks posed by ZTE and its Chinese competitor Huawei. The House Intelligence Committee concluded that “Huawei and ZTE have failed to assuage the committee’s significant security concerns presented by their continued expansion into the US … In fact, given their obstructionist behavior, the committee believes addressing these concerns have become an imperative for the country.” Huawei eventually abandoned the U.S. market after intelligence officials alleged it was a national security threat to the United States as a potential cyber mole for the Chinese government.

Podesta also represented ZTE in 2013 to encourage the departments of Defense and State to maintain “open and transparent markets in U.S.-China trade relations,” according to a Reuters report that estimated ZTE paid Podesta $1.44 million in fees though March 2016.

Podesta organized a team in January 2016 comprised of 11 lobbyists to defend ZTE in the criminal investigation. Ten members of the team previously worked at either the departments of State, Defense or Commerce, or the NSC, including David Adams, who was the assistant secretary of state under Hillary Clinton. Another team member was Mark Tavlarides, who served as a special assistant for international security affairs at the Defense Department and at NSC under former President Bill Clinton.

ZTE’s stonewalling of federal agencies has been considered legendary. The UK’s Guardian, which covered the case, reported the company “refused to provide any documents on its activities in Iran, but did provide a list of 19 individuals who serve on the Chinese Communist Party committee within the company.” ZTE tried to keep documents from federal prosecutors by citing China’s secrecy laws. The DOJ reported that “ZTE’s most senior managers constructed an elaborate scheme to evade detection by U.S. authorities.”

Matthew Whitaker, a former U.S. attorney who founded the nonprofit government watchdog group Foundation for Accountability and Civic Trust (FACT), told TheDCNF, “ZTE clearly understood what they were doing.  The extreme level of deception of their lawyers and their consultants is why the U.S. Government used such a heavy hand.”

Another lawyer who represented one of the U.S. companies affected by ZTE’s illegal activities told TheDCNF that they are persona non-grata within the government because of the intelligence concerns that have been raised in the past.”

The attorney, who requested anonymity, said he wasn’t surprised by ZTE’s hiring of Podesta. “When you have a desperate client, a desperate client goes to desperate means. And Podesta was so close to the prior administration,” he said.

TheDCNF sought comments from ZTE, its attorneys and the Podesta Group but none were received.

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