Judge hands DOJ another FARA setback

Delivered daily, Influence gives you a comprehensive rundown and analysis of all lobby hires and news on K Street.

Oct 12, 2022 View in browser   By Caitlin Oprysko DOJ'S LATEST FARA SETBACK: A federal judge today dismissed the Justice Department's effort to force Las Vegas casino magnate Steve Wynn to acknowledge a stint as an agent of the Chinese government, contending that the government has no power to require such disclosure after the purported foreign relationship had ended, our Josh Gerstein and Kyle Cheney report. — U.S. District Court Judge James Boasberg expressed reservations with his own ruling but suggested that long-standing appeals court precedent bars DOJ from requiring foreign agents to retroactively register once they are no longer performing that work — a prospect that swiftly prompted concern from FARA lawyers and former DOJ officials who warned that if left to stand, the ruling could neuter one of the department's main tools for inducing compliance with the statute and undercut its aims for increased transparency. — "This is astonishing and problematic," Josh Rosenstein , a partner at Sandler Reiff Lamb Rosenstein & Birkenstock who advises clients on FARA compliance, said in an interview. "DOJ is now left with a statute that it is virtually unable to enforce, particularly if foreign influence campaigns are well-hidden while they're occurring." — Boasberg's 20-page ruling focused on a 1987 opinion by the D.C. Circuit Court, which held in a criminal FARA case that an obligation to register "expires when the agent ceases activities on behalf of the foreign principal." — "While the goals of FARA are laudable, this Court is bound to apply the statute as interpreted by the D.C. Circuit. And that requires dismissal," he wrote, noting that he had made no determination on whether Wynn had actually met the criteria of acting as an agent for a foreign government. — The Wynn lawsuit was the department's first of its kind in three decades, and DOJ, which has not yet said whether it will appeal Boasberg's ruling, still has other tools to enforce FARA at its disposal. "They're gonna keep doing this and I don't think anyone should think, 'Oh, they've had a few losses and they're gonna go under a rock,'" said Thomas Spulak, a partner at King & Spalding specializing in FARA compliance. "I absolutely don't think that's the case." — Now, though, a lobbyist, PR firm or other entity "could narrow the Department of Justice's enforcement options by, you know, the second a relationship comes to light [saying], 'Ah, we're ending the relationship, we've ended the relationship,'" argued Matthew Sanderson, an attorney at Caplin & Drysdale who advises clients on FARA. "And that, I think, doesn't sit well with the court," he said, adding the ruling is "almost inviting" a DOJ appeal. — David Laufman, a partner at Wiggin and Dana who previously oversaw FARA enforcement at the Justice Department, called the decision "a considerable setback" for the government's aggressive pursuit of illicit foreign influence operations in the U.S. that will require a reversal in the courts or a legislative fix. "Like so many provisions of FARA, this provision, too, is hobbled by ambiguity," he said of the language on which Wynn's defense hinged and of Boasberg's painstaking syntactical analysis of the statute. — Several FARA experts contended the ruling could manage to spur Congress into action. "I think this is potentially disruptive enough to the department's ability to enforce FARA that it could in fact be the precipitating factor for FARA reform," Brandon Van Grack, DOJ's most recent FARA chief, said in an interview. "It is an opinion that has significant impacts beyond just the case before Judge Boasberg," said Van Grack, who is now a partner at Morrison Foerster. Good afternoon and welcome to PI. Send tips: coprysko@politico.com. And be sure to follow me on Twitter: @caitlinoprysko.   LISTEN TO POLITICO'S ENERGY PODCAST: Check out our daily five-minute brief on the latest energy and environmental politics and policy news. Don't miss out on the must-know stories, candid insights, and analysis from POLITICO's energy team. Listen today.     INDUSTRY COALITION PRESSES ITS CASE FOR LAME-DUCK TAX RELIEF: Nearly 400 trade associations and corporations on Tuesday made their pitch to lawmakers for restoring a prized tax policy when Congress returns to Washington next month. — The groups are pushing for Congress to once again allow companies to immediately deduct their research and development expenses, reversing a policy that went into effect at the beginning of the year forcing them to write off those expenses over five years instead of taking an annual deduction, which results in lower taxes. — The broad coalition of signatories includes the U.S. Chamber of Commerce and National Association of Manufacturers as well as drugmakers, telecom and tech companies, automakers, apparel companies and major defense firms that have made the issue a top legislative priority. "Failing to reverse this change will cost well-paying jobs and reduce future innovation-directed R&D," the coalition warned in a letter to congressional leaders. — They also argued the amortization requirement threatens U.S. economic competitiveness as well as national security, pointing to an assessment from the National Science and Technology Council that R&D investments "'are essential to ensure that the United States remains able to secure and protect the American people in the face' of other countries increasing support for R&D." — The issue will undoubtedly be a top target in any year-end tax extenders package, though lobbyists have been wary of predicting such a deal with certainty without seeing how the midterms shake out, and some Democrats have threatened to hold up any deal without reviving the expanded Child Tax Credit. AHLA'S TOP LOBBYIST DEPARTS TO LEAD BEER INSTITUTE: Brian Crawford is leaving the American Hotel & Lodging Association after almost a decade to become the president and chief executive of one of the beer industry's top trade groups, the Beer Institute. Crawford was previously the hospitality trade association's top lobbyist and helmed the group's advocacy efforts amid the proliferation of the short-term rental market and the industry's recovery from the coronavirus pandemic. Prior to joining AHLA, Crawford served as chief of staff to former Rep. Tom Rooney (R-Fla.) GOP WAYS AND MEANS FRONTRUNNERS HOOVER UP K STREET CASH: "The three Republicans vying for their party's top spot on the House Ways and Means panel in the next Congress have raised nearly $4.1 million combined this cycle from K Street lobbyists and their companies' affiliated PACs," Roll Call's Kate Ackley and Ryan Kelly report on the race to potentially lead a panel "critical to business interests." — "Florida Rep. Vern Buchanan, who is seeking his ninth term and is currently the second-ranking Republican on the panel, raised the most of the three contenders from the K Street sector with nearly $2.1 million donated during the 2021-2022 election cycle, according to lobbying contribution reports filed with Congress covering donations through June 30." — "He's followed by Missouri Rep. Jason Smith, who is seeking his sixth term, with $1 million from registered federal lobbyists and affiliated PACs. Smith serves as the top Republican on the House Budget Committee, and he ranks fifth in seniority among Republicans on Ways and Means. In third is Nebraska Rep. Adrian Smith , who collected almost $1 million, about $981,000, from K Street sources." — "Some lobbyists and business PACs donated to all three of the contenders, the filings show. The PAC of Akin Gump Strauss Hauer & Feld, one of the city's largest lobbying practices, reported donations in equal amounts of $2,500 to Buchanan, Adrian Smith and Jason Smith in the first half of this year." — "Health insurer Cigna, too, disclosed donations to all three this year, as did Lockheed Martin and Honeywell. Lobbyist Kirsten Chadwick, whose lobbying areas include tax and trade issues at the firm Fierce Government Relations, reported donations to all three, as did health care lobbyist Jeffrey Kimbell of Jeffrey J. Kimbell and Associates." ADELSON SAYS SHE WON'T PLAY IN 2024 PRIMARY: "Former President Donald Trump and a host of other Republicans are preparing to run for the White House in 2024. But the party's most prominent megadonor wants nothing to do with the fight," our Alex Isenstadt reports. — "Republican benefactor Miriam Adelson has told would-be GOP presidential candidates that she doesn't intend to get involved in the party's 2024 primary, according to two people with direct knowledge of the discussions. With prospective candidates already maneuvering to win over donors, Adelson's decision takes off the board the party's most sought-after funder." — The widow of the late Las Vegas casino titan Sheldon Adelson "has spoken to an array of potential candidates over the last year and has relayed that she will be sitting out the primary, regardless of who is seeking the nomination," despite being "bombarded with requests from Republican politicians looking to get face time with her," some of whom "have made pilgrimages to her Las Vegas home." — "Adelson's lieutenants say her decision is driven by a desire to stay out of what could be a bitter fight for the nomination. After supporting former House Speaker Newt Gingrich in 2012, Adelson and her late husband sat out the 2016 primary. They later became major contributors to Trump, spending over $100 million to support his campaigns."   SUBSCRIBE TO POWER SWITCH: The energy landscape is profoundly transforming. Power Switch is a daily newsletter that unlocks the most important stories driving the energy sector and the political forces shaping critical decisions about your energy future, from production to storage, distribution to consumption. Don't miss out on Power Switch, your guide to the politics of energy transformation in America and around the world. SUBSCRIBE TODAY.     Jobs Report — CNA Financial, a subsidiary of Loews Corp., has opened a D.C. office and added Nick Sanders as its director of federal government relations. He was most recently assistant vice president for federal government relations at Primerica and is a SIFMA alum. — Gary Nuzzi has joined CVS Health as vice president of public and government affairs. He was most recently senior vice president for public affairs at Adfero. — Scott O'Brien has joined Reliable Robotics as vice president of legislative affairs. He most recently was senior director of public policy and advocacy at the National Business Aviation Association. — Michael Reynolds is now senior public policy advisor at Baker, Donelson, Bearman, Caldwell & Berkowitz. He most recently was the minority deputy policy director for aviation and space at the Senate Commerce Committee. — Johan Hassel is now a senior fellow with the Center for American Progress' Global Progress initiative. He currently is the international secretary of Sweden's Social Democratic Party. — Brittany Bramell Punaro, former head of public affairs for the CIA, and Lauren Claffey Tomlinson, former head of strategic communications for DHS, are launching Steer PR, a strategic communications and critical issue advisory firm. — Natalie Giordano is joining Invariant as director of external communications. She previously was at Purple Strategies. — Ali Gormley is joining Coca-Cola Consolidated as director of government relations covering the Indiana/Ohio region. She most recently was vice president of federal affairs at the Wine & Spirits Wholesalers of America. — Kelly McCone has joined the American Academy of Neurology as senior congressional affairs manager. McCone was most recently a government relations manager for the Society of Thoracic Surgeons and is a Mark Pocan alum. New Joint Fundraisers None. New PACs CFE Action Fund (Super PAC) Colorado Dawn (Super PAC) End Corruption Now (PAC) Frontiers of Freedom Action, Inc. (Super PAC) LifeMark PAC (PAC) MCTX Victory Committee (PAC) Oil Export Club (Super PAC) Professional Firefighters for Arizona (Super PAC) Protect Our Rights PAC (PAC) Republican People of COLOR Advocacy (Super PAC) Together We Win (Super PAC) New Lobbying Registrations Alpha Strategies, LLC: Tigerswan Anndyl Policy Group, LLC: Mission Data Blank Rome Government Relations: Natives Of Kodiak, Inc. Cornerstone Government Affairs, Inc.: Avangrid Management Company, LLC Dla Piper LLP (US): Samsung Sdi America, Inc Efb Advocacy, LLC: Centerline Action, Inc. Faegre Drinker Biddle & Reath LLP: National Academy Of Elder Law Attorneys Foley & Lardner LLP: Borgwarner, Inc. Gregory Brock: Invest In Education Coalition Krl International LLC: Flutterwave Inc. Lewis-Burke Associates, LLC: North Dakota State University Miller Strategies, LLC: Angel Protection System Miller Strategies, LLC: Flint Cooper, LLC Miller Strategies, LLC: United States Tennis Association Ogilvy Government Relations: Mr. Christopher Catrambone Sandler, Travis & Rosenberg, P.A.: Sanmar Corporation Squire Patton Boggs: Pace Association The Federal Group, Inc.: Ecri The Federal Group, Inc.: Javara Research The Federal Group, Inc.: Redsense Medical Tiber Creek Group: Grid United LLC Tiber Creek Group: University Of Arizona Foundation Van Scoyoc Associates: Fort Pierce Utilities Authority New Lobbying Terminations American Association Of Colleges Of Pharmacy: American Association Of Colleges Of Pharmacy Balzano Associates, Inc.: Huntington Ingalls Industries, Inc. Continental Strategy, LLC: Grupo Aldecasa Diamond Foundry: Diamond Foundry Ernst & Young LLP (Washington Council Ernst & Young): Alliance For Market Solutions Action Inc Hackney Government Affairs Group (Formerly Clint Hackney & Company): One Call Concepts Hannegan Landau Poersch & Rosenbaum Advocacy: Mammoth Mountain Ski Area John Ladd & Associates, Inc.: Old North State Medical Society Kindred Healthcare D/B/A Scionhealth: Kindred Healthcare King & Spalding LLP: Boehringer Ingelheim Pharmaceuticals, Inc. Leavitt Partners, LLC: 510(K) Coalition Nwg Advocacy LLC: Hecho De Puerto Rico Polsinelli Pc: Arkansas River Power Authority Polsinelli Pc: Lmi Aerospace, Inc. Richard Burness: Brownstein Hyatt Farber Schreck, LLP Obo Heineken USa Richard Burness: Brownstein Hyatt Farber Schreck, LLP Obo Royal Gold Schagrin Associates: Coalition For American Products In Renewable Energy (Capre) Smart USa Co: Smart USa Co Squire Patton Boggs: Bike Bentonville LLC Squire Patton Boggs: James Campbell Company Squire Patton Boggs: Ligado Networks LLC The Federal Group, Inc.: United Safety Technology The Federal Group, Inc.: Young Innovations The Franken Group, LLC: Inda, Association Of The Nonwoven Fabrics Industry Upstream Consulting, Inc.: Arizona State University   Follow us

To change your alert settings, please log in at https://www.politico.com/_login?base=https%3A%2F%2Fwww.politico.com/settings This email was sent to rouf@idiot.cloudns.cc by: POLITICO, LLC 1000 Wilson Blvd. Arlington, VA, 22209, USA Please click here and follow the steps to unsubscribe.