FTX implosion sparks lobbying exodus from Bankman-Fried’s empire

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

Nov 15, 2022 View in browser   By Caitlin Oprysko Presented by With Daniel Lippman SBF'S EMPIRE BLEEDING LOBBYISTS: Lobbyists have raced to cut ties with Sam Bankman-Fried's crypto exchange — as well as the pandemic preparedness group seeded by the former FTX executive and run by his brother — in the days since FTX's collapse. The beneficiaries of his lavish political spending this year are also beginning to spurn FTX's campaign cash , leaving the crypto giant and newfound political donors with few allies in the Washington at a crucial moment. — Rich Feuer Anderson, which signed FTX's U.S. arm earlier this year, on Monday filed termination paperwork dated Nov. 11, the day FTX filed for bankruptcy and Bankman-Fried announced his resignation. — Conaway Graves Group , the lobbying firm founded by former House Agriculture Chair Mike Conaway and his chief of staff, severed ties with FTX early last week, Scott Graves told PI. The firm, which has signed a number of crypto clients, "will not be representing FTX in any capacity moving forward," Graves added. — CNBC's Brian Schwartz, who first reported that FTX had been dropped by Conaway Graves , also writes that the exchange's sole in-house lobbyist, Eliora Katz, is no longer with the company. Katz did not respond to requests for comment, but her bio page on the website for the Krach Institute for Tech Diplomacy at Purdue has been scrubbed of any mention of her work for FTX, according to an archived version. — FTX's sole remaining hired guns at Empire Consulting Group did not respond to questions about whether they will continue to represent the exchange. Washington's shunning has extended to the exchange's industry trade associations, including the Crypto Council for Innovation and the Chamber of Progress. — The fallout on K Street also hasn't been limited to just FTX. Ridge Policy Group, the firm run by former DHS Secretary Tom Ridge, confirmed to PI that it no longer represents Guarding Against Pandemics, the pandemic preparedness advocacy group started by Bankman-Fried's brother Gabe and funded by Sam. — The nonprofit had begun to ramp up its lobbying footprint last year, bringing on Van Scoyoc Associates, Ogilvy and Capitol Counsel. Last month, it hired Monument Advocacy. Van Scoyoc and Capitol Counsel both parted ways with the group earlier this year, and Ogilvy filed termination paperwork this week, though the termination date is listed as Oct. 19. Monument's Stewart Verdery declined to comment on the status of the firm's contract. FULCRUM ADDS A REPUBLICAN: Fulcrum Public Affairs has added its first Republican lobbyist as the party inches closer to clinching control of the House next year. Zack Laven has joined the firm as a vice president, the first of what Fulcrum co-founder Oscar Ramirez says is several GOP hires over the next few months. — Laven was most recently deputy chief of staff to Rep. Dave Schweikert (R-Ariz.), a Ways and Means subcommittee ranking member who narrowly eked out reelection in a race that was only called last night. Before that, Laven worked on trade issues in Dow Chemical's government relations shop. Good afternoon and welcome to PI. Keep your post-midterm takes coming: coprysko@politico.com . And be sure to follow me on Twitter: @caitlinoprysko . A message from the AAMC: What is academic medicine? Cutting-edge treatments and expert patient care start in innovative medical school classrooms, research labs, and bustling emergency rooms inside our network of over 150 medical schools and nearly 400 teaching hospitals and health systems across the U.S. In fact, patients treated at teaching hospitals have up to 20% higher odds of survival compared to those treated at non-teaching hospitals. Learn how academic medicine saves lives at whatstartshere.aamc.org.   CLICKER: The folks over at Marathon Strategies have put together a handy guide to next year's class of freshman lawmakers . The directory, which will be updated as races continue to be called, is sortable by state. TECH FOES LAUNCH LAME DUCK ANTITRUST PUSH: A coalition of smaller tech companies and the Tech Oversight Project is launching a six-figure ad blitz urging the Senate to take up stalled bipartisan legislation to prevent tech giants from preferencing their own products over competitors' on their platforms. — It's a last-ditch effort for advocates who have pressed Senate Majority Leader Chuck Schumer for months to schedule a floor vote on the measure before a likely Republican takeover in the House, where Minority Leader Kevin McCarthy has indicated he opposes the bill. — "With a more than likely Republican House to take over in January, the time to get this done is now," said Sacha Haworth, the Tech Oversight Project's executive director, pointing to the effort's White House backing . — The ad buy is being funded in part by DuckDuckGo, Yelp, Roku, Neeva, Proton, Andi and Kelkoo Group , a collection of tech firms that have long sought to challenge the dominance of bigger companies like Apple, Amazon and Google. — The spot casts the American Innovation and Choice Online Act as a "ticket to freedom" from tech monopolies and a vehicle to "unleash American competition." It will air through the end of the year on cable networks in Washington, "or until antitrust reform is passed," the coalition said. — The Computer and Communications Industry Association, a tech lobbying group whose members include Apple, Amazon, Meta and Google, and which has poured money into its own ad campaigns and lobbying to run out the clock on the bill, contended that it still does not have the votes to pass. — "Rather than wasting time on flawed legislation that's doomed to fail, Congress should spend the lame-duck prioritizing must-pass legislation with broad bipartisan support," said Katey McCutcheon, a spokesperson for CCIA's Don't Break What Works campaign. CONSERVATIVE GROUP LAUNCHES ANTI-ESG LOBBYING ARM: "A conservative group that has been at the forefront of red-state attacks on Wall Street's embrace of sustainable investment policies is looking to build on those efforts through a new nonprofit backed with millions of dollars," POLITICO'S Jordan Wolman reports. — "Will Hild, executive director of Consumers' Research, said the spinoff lobbying group, called Consumers' Defense , will help Republicans ramp up their battle against environmental, social and governance efforts that they decry as 'woke' investing." — "'We needed a vehicle by which we could be very explicit in the ways in which consumers' interests should be protected from ESG,' Hild said in an interview about the new group, which launched on Tuesday. 'We decided it made sense to launch a 501(c)4 that can endorse legislation, that can be very specific about how we talk to legislators and government officials.'" — It will "employ lobbyists in various states to help push legislation strengthening the fiduciary duty of pension fund managers or more aggressive 'energy boycott' bills that would direct state entities to divest from companies that they say are discriminating against fossil fuels. … The group also plans to be involved in the 2024 election cycle, where Hild said it will 'help amplify the ESG issue' through advertisements, billboards, a digital campaign and direct mail." FORMER NAACP HEAD WILL LEAD SIERRA CLUB: "Former NAACP President and CEO Ben Jealous was unanimously chosen to serve as the next executive director of the Sierra Club, which has struggled with race and equity issues in recent years," per our Catherine Morehouse. Jealous will be the first person of color to lead the environmental group, which has sought to "pivot toward including socioeconomic issues under its umbrella of environmentalism." — "Sierra Club's previous executive director, Mike Brune, resigned last year amid internal conflicts over how to address race and equity in the wake of protests following the murder of George Floyd. An internal investigation into the organization found widespread cultural problems , including the protection of abusive senior staff and volunteers against workplace harassment and discrimination allegations." NO FARA CHARGES FOR RUDY: "Rudy Giuliani, an attorney and adviser to former President Donald Trump, won't face criminal charges over his work on issues related to Ukraine , federal prosecutors said Monday" per our Josh Gerstein. — "The investigation of Giuliani grabbed headlines last May when the FBI raided the former New York mayor's home and office, carrying out a court-ordered search warrant seeking evidence of violations of the Foreign Agents Registration Act. The probe was believed to be focused on his efforts in 2019 and 2020 to prompt Ukraine to launch an investigation into the business dealings of Hunter Biden " in order to dent the presidential bid of his father Joe Biden. — "The FBI raids against Giuliani last year seemed to signal a particularly grave criminal investigation, since the sign-off of senior Justice Department officials is required for searches of premises used by lawyers." — "However, in recent months the probe seemed to have petered out. On Monday, Manhattan-based federal prosecutors overseeing the investigation told a federal judge there was no longer a need for a court-appointed special master to oversee the sifting of records from Giuliani's home and office because the investigation had essentially ended." WHOOPS: "On Feb. 2, 2021, the Hawaii State Senate issued an honorary certificate to Honolulu businesswoman Nickie Lum Davis for her 'public service and outstanding contributions to her community.' At the time, the proclamation seemed noncontroversial ," Honolulu Civil Beat's Nick Grube writes. — "What the certificate didn't say, however, was that Davis had pleaded guilty in August 2020 to federal charges and was awaiting sentencing in a complex criminal case. The U.S. Justice Department has accused her and others of secretly lobbying the Trump administration on behalf of Chinese and Malaysian interests," an omission that "has caught a handful of senators by surprise." — The certificate "was issued just two weeks after Davis was unsuccessful in securing a pardon from former President Donald Trump on his last day in office," and last month was submitted by Davis' Hawaii-based attorney "as part of an exhibit to a sentencing memo that sought to downplay his client's involvement in the influence campaign while at the same time highlighting her good deeds."   POLITICO APP USERS: UPGRADE YOUR APP BY DECEMBER 19! We recently upgraded the POLITICO app with a fresh look and improved features for easier access to POLITICO's scoops and groundbreaking reporting. Starting December 19, users will no longer have access to the previous version of the app. Update your app today to stay on top of essential political news, insights, and analysis from the best journalists in the business. UPDATE iOS APP – UPDATE ANDROID APP .     Jobs Report — Matthew Lenz, has joined BSA | The Software Alliance as senior director of state advocacy, where he will run BSA's 50-state advocacy program. He previously was director of state government affairs for the Entertainment Software Association. — The Coalition for Community Solar Access has added Rikkia Ramsey-Williams director of national programs. She most recently served as director of the Women Legislators' Lobby. — Nicole Burda joined Oak Street Health as director of government affairs. She was most recently on the government affairs health and family team at AARP and prior to that at the Academy of Nutrition and Dietetics, American Public Health Association and the Hill. — Jess Miers is the new legal advocacy counsel at Chamber of Progress. She was previously a senior public policy analyst with Google. Shannon Casey is the group's new operations manager. Shannon previously served as scheduler and office manager for Rep. Donald Payne (D-N.J.). — Melissa Young is now regional vice president for state relations at the American Council of Life Insurers. She was previously legislative and regulatory counsel for Allstate Insurance Company. — Beacon Global Strategies has added Kimberly Lehn as vice president and Bonnie Glaser as senior adviser. Lehn most recently was chief of staff of CIA's China Mission Center and Glaser was most recently director of the Asia Program at the German Marshall Fund. — Christin Fernandez is now director of strategic communications and media relations at Marriott International . She most recently was director of communications at Koch Industries. — Laura Black has joined Akin Gump Strauss Hauer & Feld as a senior counsel. She most recently was director of policy and international relations in the Office of Investment Security at Treasury. — Families USA has appointed Yael Lehmann as its new senior director of strategic partnerships. — Josh Drobnyk has joined FTI Consulting as a managing director in its strategic communications and public affairs practice. Drobnyk was most recently vice president for communications at Caribou and is a Robinhood alum. — Joe Chatham has joined the Federation for American Immigration Reform as a senior government relations manager. He most recently was chief counsel for Rep. Ken Buck (R-Colo.). — Adam Thierer is a new senior innovation and technology policy fellow at the R Street Institute. He was previously a senior technology research fellow at the Mercatus Center. — Jessica Floyd is taking over as executive director at The Hub Project. She previously was president at American Bridge and is a Hub Project and DCCC IE alum. — Luke Hilgemann is joining the International Order of T. Roosevelt as executive director. He previously was CEO of Americans for Prosperity and Hunter Nation. — Chad Metzler is now federal government relations director at Land O'Lakes. He was previously a special assistant to the president for legislative affairs on the Senate team at the White House.   A message from the AAMC:   New Joint Fundraisers KELLY JOINT FUNDRAISING COMMITTEE (Kelly for Congress, Southern States PAC, NRCC) New PACs BLUE RIDGE VICTORY FUND (Leadership PAC: Chuck Edwards) Make America Fair (Super PAC) Ron to the Rescue (Super PAC) Youth Medical Education Initiative (PAC) New Lobbying Registrations 535 Group, LLC: Technology Service Corporation Acg Advocacy: Muon Space Akin Gump Strauss Hauer & Feld: Gujarat Fluorochemicals Gmbh Akin Gump Strauss Hauer & Feld: North American Produce Coalition Birch, Horton, Bittner & Cherot: Great American Minerals Exploration (Game) Broydrick & Associates: Uico Burrell International Group LLC: Obrien Gentry & Scott LLC (On Behalf Of Elta N.A.) Capitol Tax Partners, LLP: Leeward Renewable Energy, LLC Crossroads Strategies, LLC: Electronic Payments Coalition Davidoff Hutcher & Citron, LLP: Silverseal Dla Piper LLP (US): Immunocore, LLC Emca, Inc.: Ag Consulting Group, L.L.C. Fgs Global (US) LLC (Fka Fgh Holdings LLC): H2U Technologies, Inc. Foley & Lardner LLP: Rapid Viral Detection Systems LLC Holland & Knight LLP: Institute Of Scrap Recycling Industries, Inc. Holland & Knight LLP: Scipher Medicine Corporation Invariant LLC: Cummins Inc. Kountoupes Denham Carr & Reid, LLC: Centrus Energy Kountoupes Denham Carr & Reid, LLC: Reflexion Medical Maverick Strategies, LLC: National Business Aviation Association Morgan Casner Associates: Affiliated Sante Group Pillsbury Winthrop Shaw Pittman LLP: Abilene Christian University Taras, LLC: Cynergy Composites Inc. W Strategies, LLC: Otsuka America Pharmaceutical, Inc.   DON'T MISS POLITICO'S 2nd ANNUAL DEFENSE SUMMIT ON 11/16: The United States is facing a defining moment in the future of its defense, national security and democratic ideals. The current conflicts and developments around the world are pushing Washington to reshape its defense strategy and how it cooperates with allies. Join POLITICO for our second annual defense summit, "At a Crossroads: America's Defense Strategy" on November 16 in person at the Schuyler DC or join online to hear keynote interviews and panels discussing the road ahead for America's national security. REGISTER HERE .     New Lobbying Terminations Argo Ai: Argo Ai Mr. Donald Brittingham: Industry Council For Emergency Response Technologies, Inc. Ogilvy Government Relations: Guarding Against Pandemics Rich Feuer Anderson: West Realm Shires Services, Inc. D/B/A Ftx US US Policy Strategies: Blue Cross Blue Shield Association A message from the AAMC: Academic medicine touches the lives of everyday Americans—every day. And it all starts in innovative medical school classrooms, cutting-edge research labs, and bustling emergency rooms across the country. Our network of over 150 medical schools and nearly 400 teaching hospitals and health systems never stop pushing toward a healthier tomorrow—from driving medical research and advancing expert patient care to promoting health equity and strengthening the physician workforce. Our member institutions and health systems work together to educate future health care professionals and discover research breakthroughs that give hope to patients, families, and communities nationwide. What starts in academic medicine improves the health of people everywhere. Learn more at whatstartshere.aamc.org     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.