An investigation referred to Justice Department prosecutors by
Special Counsel Robert Mueller earlier this year into possible criminal
activity by Clinton-linked Washington insider Tony Podesta and former
Obama White House Counsel Greg Craig is heating up, according to a new
report that underscores federal authorities' increasing enforcement of
laws governing foreign business relationships.
The inquiries
center not only on Craig and Podesta -- a Democratic lobbyist and
co-founder of the onetime lobbying powerhouse known as the Podesta Group
-- but also on Vin Weber, a former GOP congressman from Minnesota.
The
probes had been quiet for months since Mueller referred them to
authorities in New York City because they fell outside his mandate of
determining whether the Trump campaign coordinated with Russia.
But
in a flurry of new activity, Justice Department prosecutors in the last
several weeks have begun interviewing witnesses and contacting lawyers
to schedule additional questioning related to the Podesta Group and
Mercury Public Affairs, people familiar with the inquiry
anonymously told the Associated Press.
The apparent ramp-up comes
as multiple reports and indications suggest that the Mueller probe into
possible collusion in 2016 between the Russian government and President
Trump's campaign is winding down.
The New York work underscores
the broad effects of Mueller's investigation, extending well beyond that
collusion question. Mueller has made clear he will not turn away if he
discovers alleged crimes outside the scope of his inquiry; instead, he
refers them out in investigations that may linger on even after the
special counsel's work concludes. Other Justice Department referrals
from Mueller have ended in guilty pleas, including the hush money
payment case of Trump's former lawyer Michael Cohen.
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The
investigation reflects how Mueller, in latching onto an obscure law,
has shined a light on high-dollar lobbying practices that have helped
foreign governments find powerful allies and advocates in Washington.
It's a practice that has spanned both parties and enriched countless
former government officials, who have leveraged their connections to
influence American politics.
In New York,
Mueller's referral prompted a fresh look at the lobbying firms of
Podesta and Weber, who have faced scrutiny for their decisions not to
register as foreign agents for Ukrainian lobbying work directed by
ex-Trump campaign chairman Paul Manafort.
Fox News first reported, and court filings later confirmed, that Podesta was
offered "use immunity" by Mueller
this summer to testify in the Washington, D.C., trial of Manafort that
was planned at the time -- separate from the Virginia case in which he
was convicted on bank and fraud charges.
Prosecutors typically
offer witnesses immunity to legally prevent them from asserting their
Fifth Amendment right against self-incrimination to avoid testifying.
"Use immunity" means prosecutors agreed not to use any statements
Podesta would make on the witness stand against him in court.
"Use
immunity" is not as expansive as "transactional immunity" -- which
would have protected Podesta more broadly from being prosecuted on the
subject matter of his testimony, even if prosecutors could independently
confirm relevant details and didn't need to use his statements on the
stand.
Manafort averted the D.C. trial
by pleading guilty to two federal counts
in September and agreeing to cooperate with the Mueller probe, meaning
Podesta did not have to testify at all. That development seemingly
rendered the immunity deal moot as to any potential future prosecutorial
action involving Podesta.
An attorney for Greg Craig claims his client “was not required to register under the Foreign Agent Registration Act."
(Facebook)
Mueller's team
has since said Manafort violated that agreement,
and the Special Counsel's office is set to file a sentencing memorandum
in Manafort's case on Friday that is expected to include
prosecutors' recommended sentence for him.
Podesta is a longtime
Democratic operative whose brother, John Podesta, ran Hillary Clinton's
2016 presidential campaign; Weber is a former Republican congressman
from Minnesota. Neither man has been charged with any crimes. Their
firms have defended the decisions by saying they relied on the advice of
outside attorneys.
Mueller's referral also involved Craig, a
former White House counsel for President Barack Obama. Craig supervised a
report authored on behalf of the Ukrainian government, and Mueller's
team has said Manafort helped Ukraine hide that it paid more than $4
million for the work. CNN reported in September that prosecutors were
weighing charges against Craig.
MUELLER MEMO SAYS EX-NATIONAL SECURITY ADVISER PROVIDED 'SUBSTANTIAL ASSISTANCE' TO INVESTIGATORS ON MULTIPLE PROBES
It's unclear if the renewed interest will produce charges or if prosecutors are merely following up on Mueller's referral.
Lawyers
for Weber and Craig and a spokeswoman for Podesta declined to comment.
The U.S. attorney's office in Manhattan didn't return an email seeking
comment.
Mercury spokesman Michael McKeon said the firm has
"always welcomed any inquiry since we acted appropriately at every step
of the process, including hiring a top lawyer in Washington and
following his advice. We'll continue to cooperate as we have
previously."
Foreign lobbying work was central to Mueller's case
against Manafort and his longtime associate Rick Gates, two high-profile
Trump campaign officials who pleaded guilty earlier this year and have
been interviewed extensively by prosecutors.
The Podestas have
been frequent targets of Trump and his associates, who have repeatedly
demanded to know why Tony Podesta has not been arrested and charged.
Trump confidant Roger Stone, for instance, has insisted a 2016 tweet of
his that appeared to presage the release by WikiLeaks of John Podesta's
emails — "Trust me, it will soon the Podesta's time in the barrel" — was
instead a reference to the brothers' foreign connections getting them
into the hot seat.
ROGER STONE TO PLEAD FIFTH TO AVOID TESTIFYING, PROVIDING DOCS TO SENATE JUDICIARY COMMITTEE
Stone's
legal team announced in a letter Tuesday that Stone would assert his
Fifth Amendment right not to testify or provide documents to a Senate
committee investigating potential collusion between the president's team
and Russia.
"Mr. Stone's invocation of his Fifth Amendment
privilege must be understood by all to be the assertion of a
Constitutional right by an innocent citizen who denounces secrecy,"
Stone's attorney, Grant Smith, said in the statement. He also called the
Senate Judiciary Committee's requests a "fishing expedition" that
is "far too overboard, far too overreaching, far too wide-ranging."
In
September, Manafort admitted to directing Mercury and the Podesta
Group to lobby in the U.S. on behalf of a Ukrainian political party and
Ukraine's government, then led by President Viktor Yanukovych,
Manafort's longtime political patron.
Tony Podesta's firm is facing scrutiny from the Robert Mueller probe.
(Facebook)
While doing the lobbying,
neither the Podesta Group nor Mercury registered as foreign agents under
a U.S. law known as the Foreign Agents Registration Act, or FARA, which
requires lobbyists to declare publicly if they represent foreign
leaders, governments or their political parties.
LAWYER WITH OBAMA, CLINTON TIES MAY FACE FEDERAL CHARGES
The
Justice Department has rarely prosecuted such cases, which carry up to
five years in prison, but has taken a more aggressive tack lately.
To
secretly fund the lobbying and to avoid registration with the Justice
Department, Manafort said he along with unidentified "others" arranged
for the firms to be hired by a Brussels-based nonprofit, the European
Centre for a Modern Ukraine, rather than the Ukrainian political
interests directly.
Mercury and Podesta, which were paid a
combined $2 million on the project, then registered under a less
stringent lobbying law that doesn't require as much public disclosure as
FARA.
Both firms have said they registered under the Lobbying
Disclosure Act, rather than FARA, on the advice of lawyers at Skadden,
Arps, Slate, Meagher & Flom, Craig's former firm.
Gates
admitted in his plea deal that he lied to Mercury's attorneys about the
project, a fact the lobbying firm has publicly highlighted. The Podesta
Group has said it was misled by the European Centre for a Modern
Ukraine, citing a written certification from the nonprofit stating it
wasn't directed or controlled by the Ukrainian Party of Regions, one of
Manafort's clients.
Both firms have since registered under FARA.
But in court papers filed alongside Manafort's plea agreement, Mueller's
prosecutors suggested the firms were aware they were working on
Ukraine's behalf.
Prosecutors say employees of both companies
"referred to the client in ways that made clear they knew it was
Ukraine." One Mercury employee said the nonprofit was the client "in
name only," likening the situation to "Alice in Wonderland." A Podesta
employee referred to the nonprofit's certification that it wasn't
related to the Ukrainian political party as a "fig leaf on a fig leaf."
Mueller's
team also noted that "the head of" the Podesta Group, an apparent
reference to Tony Podesta, told his team to think the president of
Ukraine is the client.
