Thursday, September 22, 2022

Government’s first witness talks Gulf nations’ ‘soft power’ aspirations in second day of Barrack trial

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By Caitlin Oprysko

Presented by

the National Confectioners Association

With Daniel Lippman

SIGNING OFF FROM BROOKLYN: The first week of Trump ally and fundraiser Tom Barrack 's trial on charges of acting as an unregistered foreign agent of the United Arab Emirates and lying to the FBI wrapped up today after jurors heard testimony from the government's first two witnesses, Middle East political scholar Chris Davidson and Matthew Maguire of the State Department's Diplomatic Security Service.

— For several hours in the morning, Assistant U.S. Attorney Ryan Harris had Davidson walk the jury through the geopolitical landscape in the Persian Gulf, touching on Abu Dhabi Crown Prince Mohammed bin Zayed and Saudi Crown Prince Mohammed bin Salman's consolidation of power in their respective countries, as well as other members of their orbit who will feature in the case such as Sheikh Tahnoun bin Zayed , the Emirati national security adviser, and the status of the Emirati and Saudi relations with the U.S. during the timeline laid out in prosecutors' case.

— Harris also quizzed Davidson extensively on the machinations of the massive sovereign wealth funds controlled by Gulf leaders that poured millions of dollars into Barrack's investment firm, then called Colony Capital . Davidson testified that such funds have increasingly been wielded by nations like the UAE and Saudi Arabia to burnish their cultural reputations among Western countries and security partners, as leaders like MBZ and MBS seek to diversify their countries' economies.

— Barrack attorney James Bowman's cross examination sought to highlight Davidson's lack of personal dealings with or firsthand knowledge of the Emirati and Saudi governments, while downplaying Davidson's testimony about strained Gulf-U.S. ties or that former President Donald Trump's election represented a drastic change in fortunes for the UAE and Saudi Arabia.

— The cross examination featured White House and Pentagon press releases touting the close U.S. relationship with Gulf nations, along with photos of former Presidents Barack Obama and Bill Clinton, then-Vice President Joe Biden meeting with MBZ and MBS and a video of former Defense Secretary Jim Mattis praising the UAE that prosecutors later pointed out was produced by the UAE Embassy.

— Bowman also pointed out that even as Davidson appeared critical of the influx of funding from sovereign wealth funds flowing into universities and think tanks, Davidson himself had done work at universities and think tanks that had received funding from the sovereign wealth fund in Qatar, a regional rival.

— Bowman sought too to demonstrate that Barrack was far from the only American business leader to meet with officials like MBZ, who controls both of UAE's major sovereign wealth funds, and Sheikh Tahnoon, who also chairs the region's largest bank, showing photos of the leaders with UFC President Dana White, Apple CEO Tim Cook and the heads of Citibank, BlackRock and KKR.

Abbe Lowell, who represents Barrack's co-defendant and former aide Matthew Grimes , used his cross-examination to build on his portrayal of the charges against Grimes as far above Grimes' paygrade, questioning Davidson about how many Gulf leaders had 22-year-old assistants who were intimately involved in the affairs discussed that day. "I'd imagine they'd have more experience," Davidson posited of rulers' aides.

Good evening and welcome to PI , where we're hitting your inbox a little later than usual after spending the day at the Barrack and Grimes trial. The trial is off until next week, so we'll be back to our regular schedule tomorrow. As always, send tips: coprysko@politico.com. And be sure to follow me on Twitter: @caitlinoprysko.

 

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FLY-IN SZN CONTINUES: The American Trucking Associations ' moving and storage conference, which represents independent moving companies, large van lines and industry suppliers, held its first-ever fly-in today. More than three dozen movers were set to meet with dozens of offices including those of House Speaker Nancy Pelosi and Senate Minority Leader Mitch McConnell about issues like the moving expense deduction and fraud enforcement.

— Meanwhile, leaders from memory tech startup Solidigm were on the Hill this week to meet with lawmakers including home state Sen. Alex Padilla (D-Calif.) and Reps. Ami Bera (D-Calif.), Suzanne Bonamici (D-Ore.), and Doris Matsui (D-Calif.) about semiconductor policy. The Intel spin-off has recently added its first consultants, bringing on Forbes Tate Partners, Albright Stonebridge Group, and High Lantern Group.

GOP WAYS AND MEANS STAFFER MOVES TO BUSINESS ROUNDTABLE: The Business Roundtable has added Jennifer Thornton, the former trade counsel for Republicans on the House Ways and Means Committee, as vice president for trade and international. Before her time on the Hill, Thornton served as consulting counsel for international trade at Arent Fox, and as a senior policy adviser at USTR and an attorney for NAFTA issues at the State Department.

ELSEWHERE ON THE ARABIAN PENINSULA: LIV Golf might need a mulligan on Capitol Hill, our Andrew Desiderio reports, after the head of the Saudi-backed league ran into some headwinds in his Hill debut among Republican lawmakers who pressed the issue of whether the league should register as a foreign agent of the kingdom.

— That LIV CEO Greg Norman "even felt the need to meet with members of Congress underscores the public-relations toll already taken by allegations of improper foreign influence. Flanked by his lobbyist, former Rep. Ben Quayle (R-Ariz.), Norman did not deviate from his months-long messaging strategy: his insistence that LIV is all about 'growing the game of golf.' That pitch hasn't stuck, even on the GOP side of the aisle despite former President Donald Trump partnering with the new series."

— "'It was basically propaganda. They're just pushing their deal, and I don't care,' said Rep. Tim Burchett (R-Tenn.), who exited the room early as Norman met with the Republican Study Committee. … 'Honestly, this shouldn't be taking up our time. This is a conservative organization, and we ought to be dealing with what we've got to deal with in our country, not worried about a bunch of Saudis, a bunch of billionaire oil people. So I'm out.'"

— "Speaking with reporters after the GOP meeting, Norman indicated that the feedback he got behind closed doors was all positive. Jonathan Grella, a spokesperson for LIV, dismissed the criticisms and said Norman's 'message about the benefits of competition was very well received, even if a couple members of Congress say otherwise.'"

— "That's not entirely accurate. 'Don't come in here and act like you're doing some great thing while you're pimping a billion dollars of Saudi Arabian money,' lamented Rep. Chip Roy (R-Texas), who has been outspoken about LIV."

— "Lawmakers also used the meeting to push for LIV and its benefactors to register as foreign agents, pointing to Trump's own insistence that the enterprise itself is good PR for the Saudi kingdom. Multiple attendees told POLITICO that Norman did not attempt to explain away or defend the Saudis' actions."

 

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MAYBE NOT THE SHOUT OUT THEY WANTED: Fresh off Norman's rocky day in Washington, Davidson name dropped the Saudi golf league during his testimony in the Barrack trial while listing off major cultural institutions acquired by sovereign wealth funds, purchases Davidson said were widely viewed in academic circles as "potential vehicles" to boost Gulf countries' soft power abroad.

— Davidson also pointed to the Saudi fund's purchase of the Newcastle United soccer team and an Emirati fund's acquisition of Manchester City to argue that not every investment from their sovereign wealth funds were primarily connected to a guaranteed financial return, while Bowman countered that Paris Saint-Germain (the soccer club previously owned by Barrack's Colony Capital) had provided Qatar's sovereign wealth fund with a massive return on its investment.

SENATORS MOVE TO CLAMP DOWN ON FARA LDA EXEMPTION: A bipartisan pair of senators this week introduced legislation aimed at cracking down on entities seeking to skirt FARA registration by exploiting the statute's exemption for Lobbying Disclosure Act registrants.

— The bill from Senate Homeland Security Chair Gary Peters (D-Mich.) and Sen. Chuck Grassley (R-Iowa) would require lobbyists who want to claim FARA's LDA exemption — which allows operatives working for a foreign entity to conduct business under the LDA's less-stringent reporting requirements — to indicate that on their lobbying disclosure.

— The idea is that the measure would drastically shrink the pool of registrants DOJ's FARA Unit would need to sift through as it looks for potential violations, without adding too much of a burden on the registrants themselves.

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Jobs Report

Kristen McCaughan is joining Reservoir Communications Group as a director, and Elise Planchet and Cali Platt are joining as managing associate and associate, respectively. McCaughan was most recently a senior vice president at McGinn and Company and is an Obama HHS alum, and Planchet was most recently a federal affairs and policy analysis specialist at the Children's Hospital Association.

Jason Weller has joined JBS as global chief sustainability officer. He was most recently vice president at Land O'Lakes sustainability arm Truterra.

Maurice Perkins will be chief corporate affairs officer at Transamerica. He currently is senior vice president and global head of government and policy affairs there.

New Joint Fundraisers

BILIRAKIS LEE VICTORY FUND (Rep. Gus Bilirakis, Laurel Lee for Congress, Inc.)
Northwest Principles JFC (Lori Chavez-DeRemer for Congress, Smiley for Washington Inc.)

 

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New PACs

FFPA (Super PAC)
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New Lobbying Registrations

Acg Advocacy: Access Fund
Acg Advocacy: Alaska Wildernesses League
Armory Hill Advocates (Formerly Known As Rawlson Policy Group): Heights Dermatology
Invariant LLC: Waev Inc.
Lillian Hawkins: Organic Farmers Association
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Monument Advocacy: Lineage Logistics
Rowland Strategy Group LLC: Bristow Group, Inc
Team Hallahan LLC: Rowland Strategy Group LLC On Behalf Of Bristow Group
The Nia Vizyon Project: National Organization For Women

New Lobbying Terminations

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