Tuesday, April 25, 2023

Former Biden aide signs Japan

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Apr 25, 2023 View in browser
 
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By Caitlin Oprysko

With help from Daniel Lippman 

theGROUP SIGNS JAPAN: Japan’s government has tapped one more former aide to a 2024 contender, adding its second new lobbying firm in a month as its new administration seeks to boost the country’s ties with the U.S. amid heightened geopolitical maneuvering in the Pacific.

theGROUP D.C.’s Sudafi Henry, who served as director of legislative affairs for Joe Biden during his vice presidency, will provide Japan’s D.C. Embassy strategic counsel “that maintains and enhances the bilateral relationship between” the two countries, especially “given the Asia region’s geopolitical volatility,” Henry told PI in a statement. His work will have “an emphasis on the Biden-Harris Administration and the U.S. Congress,” Henry added.

— The three-month contract is worth $75,000, according to a copy filed with the Justice Department last week, and gives Tokyo additional inroads with Biden, who formally launched his reelection campaign this morning, as tension between the U.S. and China as well as North Korea remains high, making Tokyo a key regional defense partner for Washington.

— Japan is also set to host G-7 leaders including Biden next month in Hiroshima, and like the U.S., is part of the 13-nation pact negotiating an Indo-Pacific free trade deal. More recently Japan struck a narrower trade deal with the U.S. on critical minerals, opening the door to eligibility for the Inflation Reduction Act’s electric vehicle tax credit for batteries made with components sourced from Japan.

— In addition to Biden, Henry’s firm also has close ties with congressional leadership, and often fundraises for members like House Minority Leader Hakeem Jeffries and Minority Whip Katherine Clark. Japan is the first foreign government signed by the firm outside of the Caribbean.

— The politically connected hire also comes on the heels of the Japanese government’s freshly inked contract with Ballard Partners lobbyists who previously served as top aides to Florida Gov. Ron DeSantis. DeSantis, who is likely to jump into the 2024 race at any moment, is wrapping up a trip to Tokyo today.

Happy Tuesday and welcome to PI. Send any hot lobbying gossip you pick up during parties this week: coprysko@politico.com. And be sure to follow me on Twitter: @caitlinoprysko.

 

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SCAM PAC MASTERMIND GETS 10 YEARS: A prolific scam PAC operator was sentenced to 10 years behind bars Monday, while one of his associates got seven years, in what appear to be the stiffest prison sentences handed down as the government tries to crack down on fraud in political fundraising. Matt Tunstall and two associates pleaded guilty last year to a range of charges from conspiracy to wire fraud to money laundering, stemming from a pair of PACs they ran during the 2016 election ostensibly raising money to boost the presidential candidacies of both Donald Trump and Hillary Clinton.

— Instead, according to prosecutors, Tunstall, Robert Reyes Jr. and Kyle Davies pocketed the vast majority of the more than $3 million they took in from unwitting donors, using some of it to fund additional fundraising robocalls and much of it to fund lavish lifestyles. Reyes and Davies were sentenced earlier today to seven years in prison and five years of probation, respectively.

— Tunstall’s sentence, handed down by U.S. District Judge Lee Yeakel in a federal court in Austin, is less than the roughly 15-20 years the government had asked for earlier this month — pointing in part to the fact that Tunstall continued to operate additional PACs well beyond the activity covered in the indictment — including after his 2021 arrest.

— His “actions show calculated and callous disregard to exploit the democratic political process, to conceal his actions, and to evade the enforcement of federal laws,” prosecutors argued in their sentencing memo.

— “In an era of increasing political stratification and mistrust, the defendant applied his knowledge of mass-marketing to profit off those passions,” they said of Tunstall, who they described as “the mastermind behind the scheme and its undisputed leader” and accused of explicitly targeting the elderly in fundraising appeals.

— Defense attorneys for Tunstall, meanwhile, requested that their client be sentenced to serve two years of home confinement followed by three years of supervised release. They argued that some of his PACs’ expenditures did in fact benefit the candidates whose names and likeness the PACs used. They also pointed to previous sentences for scam PAC operators or other similar cases in which defendants received anywhere from 22 months to 46 months behind bars.

— Tunstall’s case is part of a widespread proliferation of fraud and self-dealing in political fundraising, with scam PAC activity becoming pervasive enough to warrant a warning from the FBI about the threat several years ago. The FEC has also received recommendations from a working group on how to rein in scam PACs, but asked Congress for a legislative fix at the end of last year.

FLYING IN: The International Union of Elevator Constructors is meeting with lawmakers this week to rally support for labor investments and overhauls like the PRO Act and National Apprenticeship Act. They’re set to meet with at least a dozen members from both sides of the aisle including Reps. Claudia Tenney (R-N.Y.), Donald Norcross (D-N.J.), Nicole Malliotakis (R-N.Y.), Chris Deluzio (D-Pa.), Jan Schakowsky (D-Ill.) and Steve Cohen (D-Tenn.).

— The National Beer Wholesalers Association is bringing around 600 beer and beverage distributors to D.C. for its annual legislative conference, where members are slated to meet with more than 400 offices.

— They’re also set to meet with Sens. Shelley Moore Capito (R-W.Va.), Jacky Rosen (D-Nev.), and Jerry Moran (R-Kan.) and Reps. Elise Stefanik (R-N.Y.), Bennie Thompson (D-Miss.), Abigail Spanberger (D-Va.), Sylvia Garcia (D-Texas) and Ways and Means Chair Jason Smith (R-Mo.) and House Budget Chair Jodey Arrington (R-Texas). The wholesalers will talk labor and workforce issues and stress the need for “tax certainty.”

— The National Ocean Industries Association has also flown in executives from more than 25 companies to call for lawmakers to enact “all-of-the-above” offshore energy permitting reform and discuss other policy issues affecting energy operators in the Gulf and Atlantic regions.

COINBASE SUES GENSLER:Coinbase, the largest U.S. cryptocurrency exchange, sued the SEC on Monday in a bid to get the Wall Street regulator to formally say whether it will promulgate rules for the $1 trillion market,” POLITICO’s Declan Harty reports — marking “a new front in the legal battle between Coinbase and the SEC, a standoff that could ultimately determine the market’s future in the U.S. as both sides dig in.”

— “In a 31-page complaint, Coinbase — potentially the subject of looming SEC charges — asked a federal court to force the agency to say whether it will take up a nine-month-old petition for new rules tailored to digital assets that are akin to stocks and bonds.”

— “SEC Chair Gary Gensler says the crypto market is primarily made up of unregistered securities that don’t need to be carved out from the rules overseeing the rest of Wall Street. But Coinbase Chief Legal Officer Paul Grewal said the SEC has yet to formally respond to the rule-making request, robbing the company of a chance to challenge the SEC in court if the agency declines to pursue new rules.”

— “‘The SEC has through its public statements and actions made clear it knows what its answer is,’ Grewal said in an interview Monday. ‘It just won’t give us notice of that in a way that would allow us to punch our ticket to go to court.’”

BROAD COALITION PUSHES FOR SITE-NEUTRAL PAYMENT REFORM: “An ideologically diverse group of think tanks and individual policy experts are launching a coalition Tuesday that will push for site-neutral payments in Medicare and hospital transparency legislation,” Axios Victoria Knight reports.

— “The coalition — which doesn’t have a name yet — is sending a letter to the House Energy and Commerce and the Education and Workforce committees urging them to ‘advance reforms that promote site-neutral payments in Medicare and site of service billing transparency in commercial health insurance.’”

— “The coalition includes the Koch-led Americans for Prosperity, the center-left Progressive Policy Institute and high-profile health policy scholars like Brookings Institution’s Loren Adler and the American Enterprise Institute’s Brian Miller. … Legislation on site-neutral payments and physician-owned hospitals, such as the Patient Access to Higher Quality Healthcare Act, are going to be discussed during Wednesday’s Energy and Commerce health transparency hearing.”

Jobs Report

SPOTTED at a surprise birthday party last night for Rep. Rob Wittman’s (R-Va.) chief of staff Carolyn King at Scarlet Oak, per a tipster: Josh Grogis of Rep. Tom Cole’s (R-Okla.) office, Jonas Miller of Rep. John Carter’s (R-Texas) office, Bart Reising of House Majority Leader Steve Scalise’s office, Cesar Gonzalez of Rep. Mario Diaz-Balart’s (R-Fla.) office, Nikki Rapanos of Rep. Nick LaLota’s (R-N.Y.) office, Kirsten Borman Dougherty of KB Strategic Group, Doug Ritter of General Dynamics, Amelia Litynski of House Majority Whip Tom Emmer’s (R-Minn.) office, Sarah Newsome of Wittman’s office, Steve Stombres of Harbinger Strategies, Jeff Green of J.A. Green, Matt Green of Leonardo DRS, Ryan Rusbuldt of the National Association of Realtors and Meredith Allen of Congressional Leadership Fund.

— And at a WHCD party hosted by UPS Malcolm Berkley and the Cigar Association of America’s David Ozgo and Frank Coleman at the UPS townhouse, per a tipster: Mongolian Ambassador Bat Ulziidelger, U.S. Court of Federal Claims Judge Loren Smith, Pennsylvania Avenue Baptist Church’s Rev. Kendrick Curry, USDA’s Brian Mabry, the American Gaming Association’s Casey Clark and Wine & Spirits Wholesalers of America’s Michael Bilello.

Jessica Hatcher has joined Invariant. She was most recently legislative director and principal health care policy adviser for Rep. Jake Auchincloss (D-Mass.). She’ll work on issues related to prescription drug prices, price transparency, and the supply chain as well as AI regulation.

Michael Best Strategies and Michael Best & Friedrich have added Joe Keeley as a partner and senior counsel in the intellectual property practice group and Nicole Vele as senior counsel in the regulatory practice group. Keeley previously was chief counsel and deputy staff director of the Senate Budget Committee. Vele previously was an Air Force judge advocate general.

Izzy Olive is now press secretary at Brady. She most recently was a senior account manager at Trident DMG, and is an Eric Swalwell alum.

Laura Esquivel is now a senior legislative representative at Earthjustice, focusing on federal oil and gas issues. She previously was vice president for federal policy at the Hispanic Federation.

Capitol Counsel is adding John Martin as a partner. He was most recently vice president of government affairs at Pardes Biosciences and is an FDA and Tom Cotton alum. The firm also recently added Michelle Mathy as principal. She was most recently head of federal affairs at Otsuka America Pharmaceutical.

Heidi Crebo-Rediker is now a general partner and executive vice president of America’s Frontier Fund. She most recently was CEO of International Capital Strategies and is a State Department alum.

Ronit Feifer has joined Akin Gump Strauss Hauer & Feld as business development manager for their lobbying and public policy practice group. She previously was a member of the business development teams at Dentons Global Advisors-Albright Stonebridge Group and at Covington & Burling.

Joe Guy is now chief of staff for Rep. Brandon Williams (R-N.Y.). He most recently was director of programs at the Club for Growth Foundation, and is a Trump USAID alum.

Courtney Alexander is now national press secretary at the Republican Governors Association. She previously was strategic media adviser at the Republican Main Street Partnership and is a Congressional Leadership Fund alum.

Bernadette Carrillo is now a managing director at Tusk Strategies. She most recently was director of intergovernmental affairs at Commerce, and is a Biden White House alum.

Sezaneh Seymour is joining active cyber insurance company Coalition as vice president and head of regulatory risk and policy. She most recently was a deputy assistant U.S. trade representative.

New Joint Fundraisers

Battleground Arizona (Sen. Mark Kelly, Arizona Democratic Party)
Ezell Victory Fund (Rep. Mike Ezell, EW Sheriff PAC, NRCC)
Team Nunn (Rep. Zach Nunn, Call To Service PAC, NRCC)

New PACs

AI Super PAC LLC (Super PAC)
Citizens for the Eradication of Sexual Human Trafficking for Lawmaking and Governance (PAC)
Common Sense (Hybrid PAC)
Fuel The World FTW PAC (Super PAC)
Government Services PAC (PAC)
LAW AND ORDER PAC (Super PAC)
Longleaf PAC (Leadership PAC: Valerie Foushee)
Michiganders for Economic Prosperity (Super PAC)
PARENTS’ VOICES MATTER (Super PAC)
Peace, Prosperity and Purpose for the People (Super PAC)

New Lobbying REGISTRATIONS

2359 Strategies: Drake State Community And Technical College
Albertine Enterprises, Inc.: T4 Solutions, LLC
Blue Mountain Strategies: Swingtree LLC
Ct Group Fka Ctf Global LLC: Comtech
Ct Group Fka Ctf Global LLC: Machina Labs
Ct Group Fka Ctf Global LLC: Xcimer Energy
Dbw Strategies, LLC: American Fisheries Society
Dbw Strategies, LLC: Stronger America Through Seafood
Earth & Water Group: American Forest And Paper Association
Gibson, Dunn & Crutcher LLP: Binance Holding Limited
Invariant LLC: Pearson Education, Inc.
Libertas Consulting: Miramar Health
Lsn Partners, LLC: City Of North Miami, Florida
Ml Strategies, LLC: Harbor Freight Tools USa, Inc.
Ml Strategies, LLC: Molecular Testing Labs
Ms. Tami Wahl: Mood Product Group LLC
Mz Advising, LLC: Roosevelt Group LLC (On Behalf Of Greater Miami Chamber Of Commerce)
Mz Advising, LLC: Roosevelt Group LLC (On Behalf Of Matrix Design Group On Behalf Of State Of Ar)
Mz Advising, LLC: Roosevelt Group LLC (On Behalf Of Riada)
New Century Government Affairs (F/K/A Terrence C. Wolfe): The Childrens Trust
Payne Shea & Associates: City Of Chesapeake, Virginia
Ravensafe LLC: Ravensafe LLC
The Fiorentino Group: Dive Equipment & Marketing Association
Thorn Run Partners: Oxy Low Carbon Ventures LLC
Tower 19: Astranis Space Technology Corporation
Tower 19: Oceantherm USa
Townsend Public Affairs, Inc: American Veterans Assistance Group
Townsend Public Affairs, Inc: City Of Monterey Park
Townsend Public Affairs, Inc: City Of Newport Beach
Townsend Public Affairs, Inc: City Of Palo Alto
Townsend Public Affairs, Inc: City Of Tracy
Townsend Public Affairs, Inc: East Bay Community Energy Authority
Townsend Public Affairs, Inc: Global Clean Energy
Townsend Public Affairs, Inc: Hesperia Recreation And Parks District
Townsend Public Affairs, Inc: Mount San Jacinto Winter Park Authority
Townsend Public Affairs, Inc: Yosemite Community College District

New Lobbying Terminations

Caresource Management Services LLC Fka Caresource Management Group Co.: Caresource Management Services LLC Fka Caresource Management Group Co
Federal Hall Policy Advisors, LLC: United Natural Foods Inc.
Forbes-Tate: Alivecor, Inc.
Justice For Jake: Justice For Jake
Pace, LLP: American International Automobile Dealers Association
Sinha Associates LLC: Dragos
Summit Strategies Government Affairs LLC: Ascend Performance Materials LLC
Summit Strategies Government Affairs LLC: Autodesk, Inc
The Strategy Group, Inc.: We Work For Health

 

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