RT employees hit with FARA charges

Sep 04, 2024

With Daniel Lippman, James Bikales

RT EMPLOYEES HIT WITH FARA CHARGES: The Justice Department today unveiled several moves to crack down on a sweeping Russian disinformation campaign ahead of November’s election, our Josh Gerstein, Betsy Woodruff Swan and Maggie Miller write. That includes new charges against two employees of the state-owned media network RT for allegedly funneling money to a U.S. media company where the employees directed the dissemination of Kremlin propaganda without registering under FARA.

— According to an indictment unsealed today, RT and employees including Kostiantyn Kalashnikov and Elena Afanasyeva allegedly steered nearly $10 million through various shell companies to launch a U.S.-based outlet that enlisted prominent content creators and pushed out English-language videos on various platforms.

— Since its launch last November, the company posted almost 2,000 videos that reached more than 16 million views on YouTube alone, according to the indictment, all the while obscuring the source of the outlet’s funding and editorial direction.

— RT, which was forced to register as a foreign agent as a result of the investigation into Russian meddling in the 2016 elections, was effectively knocked off the air in major Western countries following Russia’s invasion of Ukraine in 2022.

— In its new venture, RT went so far as to create a fictional investor named "Eduard Grigoriann" to establish credibility in negotiations with prospective talent, several of whom signed contracts worth six figures per month or per video, according to the indictment.

— “While the views expressed in the videos are not uniform, the subject matter and content of the videos are often consistent with the Government of Russia’s interest in amplifying U.S. domestic divisions in order to weaken U.S. opposition to core Government of Russia interests, such as its ongoing war in Ukraine,” the indictment says.

— While the media company and its talent are not named in the indictment, its description appears to match an outlet called Tenet Media, which boasts a roster of conservative commentators including Benny Johnson and Dave Rubin. Tenet Media, which was still posting content on X this afternoon — including related to yesterday’s arrest of a former top aide to New York Gov. Kathy Hochul on foreign agent charges — did not respond to a request for comment.

— In addition to the FARA charges against Kalashnikov, who is described as one of RT’s leaders; and Afanasyeva, who is described as a producer for RT; DOJ announced that it seized 32 web domains and found Facebook pages spoofing prominent news outlets like The Washington Post and CNN, aiming to trick readers into consuming content produced by Russians. Treasury announced new sanctions, including on RT’s editor-in-chief, and the State Department announced new visa restrictions targeting RT and its parent company.

— Taken together, the legal moves are the latest indication that DOJ’s broader crackdown on foreign influence efforts is not slowing down. The FARA charges were unsealed the day after Linda Sun — a former prominent aide to Hochul and her predecessor Andrew Cuomo — was arrested on charges of illegally acting as an agent of China.

— In July, the feds accused foreign policy expert Sue Mi Terry of acting as an agent of South Korea while separately securing a conviction against former Sen. Bob Menendez (D-N.J.) for acting as an agent of Egypt — to name just a few high-profile FARA cases this year.

Happy Wednesday and welcome back to PI. Send tips: coprysko@politico.com. And be sure to follow me on X: @caitlinoprysko.

WHICH K STREETERS SHOWED UP FOR WALZ: A fundraiser last week thrown by former Virginia Gov. Terry McAuliffe and featuring Democratic vice presidential nominee Tim Walz drew more than 100 attendees and raised more than $1.2 million for a joint fundraising vehicle for the Harris campaign, the DNC and various state Democratic parties, according to a lobbyist in attendance.

— The event in McLean, Virginia, on Friday was co-hosted by prominent D.C. attorney and philanthropist David Frederick and his wife, Sophie Lynn, and drew a number of K Streeters (President Joe Biden’s 2020 campaign and reelection campaign did not accept donations from lobbyists, and neither does the Harris campaign, according to language on the fundraiser's invite, but the DNC does).

— Among the K Street types in attendance, according to PI’s tipster, were former House Democratic leader Dick Gephardt, Jonathan Mantz of BGR Group, Jay Dunn of FTI Consulting, SMART Union President Mike Coleman and political director Steve Dodd, Patrick O'Neill of Public Strategies, David Jones of Capitol Counsel, Peter O'Keefe of Paladin Capital Group, Doug Bunch and Steve Toll of Cohen Milstein and Jonathan Aberman of Ruxton Ventures.

HALEY, BAUCUS JOIN EDELMAN: Former U.N. Ambassador and GOP presidential candidate Nikki Haley is joining the public affairs arm of global PR and crisis comms giant Edelman, the firm announced today. Haley will be a vice chair of Edelman Global Advisory, while former Senate Finance Chair and Chinese Ambassador Max Baucus will join the consultancy as a senior adviser.

— Edelman has represented such household names as eBay, Dove/Unilever, AstraZeneca, Exxon and Equifax, while its roster of foreign clients has included Saudi Arabia’s Ministry of Culture, the United Arab Emirates’ state-owned renewable energy company Masdar, Hong Kong’s economic development body and Panama’s Ministry of Commerce and Industries.

MEANWHILE, IN DES MOINES: “Iowa Lt. Gov. Adam Gregg resigned his position Tuesday after serving more than seven years in office to take the helm of the state’s bankers association,” per the Associated Press’ Hannah Fingerhut.

— “Gregg said in a statement that ‘my time in public service must come to a close.’ Also Tuesday, the Iowa Bankers Association announced Gregg as its incoming president and CEO, effective Oct. 1.

— “The new job is likely to come with a significant pay increase for Gregg, whose salary remained by law at $103,212 throughout his tenure.” The association’s outgoing head, John Sorensen, “received a total compensation package valued at more than $620,000 in 2022, the banking group’s most recent tax filing shows.”

— “Sorensen was registered as a lobbyist for the current General Assembly, but Iowa law specifies a statewide elected official ‘shall not within two years after the termination of service or employment become a lobbyist.’ ‘We plan to follow the law as it relates to lobbying efforts,’ Iowa Bankers Association spokesperson Jenica Lensmeyer said in an email, when asked about Gregg.”

API WANTS TO MEET WITH HARRIS: The American Petroleum Institute on Tuesday asked Vice President Kamala Harris to sit down with energy company CEOs as they seek clarity on her stances on the industry if elected in November.

— The executives would like to “discuss our shared commitment to addressing the persistently high rate of inflation on the American people and the energy security challenges facing the nation,” API CEO Mike Sommers wrote in a letter. “Our industry stands ready to work with you and your team on a sustained vision for U.S. energy leadership.”

— API representatives attended a meeting of energy executives with GOP nominee Donald Trump earlier this year, where he asked them for $1 billion in campaign donations. The trade group has defended the meeting as nothing out of the ordinary, noting it also requested a meeting with Biden in May.

WELCOME BACK CONGRESS: The National Association of Manufacturers has rolled out the latest wave of its seven-figure ad campaign taking aim at pharmaceutical benefit managers and urging Congress to crack down on the industry.

— NAM, whose members include drugmakers seeking to deflect policymakers’ ire over rising drug costs, is targeting lawmakers in D.C. and nine states that will be key to each party’s control of Congress or are home to members of congressional leadership: Nevada, Pennsylvania, Wisconsin, Kentucky, North Carolina, New York, Montana, Louisiana and Massachusetts. The ads will direct viewers to a NAM resource center making the case for passing a PBM overhaul.

— The new spots are the latest volley in a lobbying blitz that’s drawn in independent and chain pharmacies in favor of passing new restrictions on the pharmaceutical middlemen, and the PBM industry, which is seeking to fend off a crackdown in the lame duck.

Jobs report

— Brent Panzenhagen is now chief financial officer and senior vice president of finance at the American Clean Power Association. He previously was vice president of finance and controller for the National Association of Broadcasters.

— Mary Elizabeth Taylor is now vice president for global government and external affairs at Robinhood. She was previously vice president and head of international government and external affairs and is a State Department and Mitch McConnell alum.

— Sarah Amick is now special counsel in Wiley Rein’s environment and product regulation group. She previously was senior vice president and senior counsel at the U.S. Tire Manufacturers Association.

— Laura Howard Kilfoyle is now development principal at the Foundation to Combat Antisemitism. She most recently was vice president of development at Sentinel Strategic Advisors.

— Justin McCarthy is now a partner in DGA Group’s U.S. government relations practice. He most recently was a senior adviser at Akin Gump Strauss Hauer & Feld, and is a Pfizer and Bush White House alum.

— Jamie Lawrence is now director of government affairs and public policy at Adobe. She most recently was deputy assistant secretary for private sector at the Department of Homeland Security.

— Marie Sylla Dixon has joined Exelon as senior vice president of federal affairs. She most recently served as senior vice president of government and external affairs at Albertsons Companies.

— Chris Paulitz is joining Disability Specialists as an executive. He previously was head of strategic initiatives at the Financial Services Institute.

— Amazon Web Services has added Susan Buikema-Miller as head of public sector communications and Sydney Erhardt as PR specialist for U.S. public sector. Buikema-Miller most recently was director of public affairs for government affairs at Lockheed Martin, and is a CIA and ODNI alum. Erhardt most recently was a press officer at the FBI.

— Tamar Epps is now a government affairs senior associate at the National Head Start Association. She previously was a legislative aide for Rep. Ann McLane Kuster (D-N.H.).

— Adam Myers is rejoining Ervin Graves Strategy Group as an associate in its government affairs practice. He recently graduated law school and is a Mike Braun alum.

— Theo LeCompte is joining Leaders on the Fast Track as executive director of the new LOFT Fellowship program. He previously was an independent strategy consultant, including for the 2024 Democratic National Convention, and is a Veho, Uber and Obama Commerce Department alum.

— Jonay Foster Holkins is joining Public Private Strategies as senior adviser. She previously was senior director of policy and corporate initiatives at Business Roundtable.

— Alison Centofante is now vice president of public relations and communications at Americans United for Life. She most recently was a communications consultant and is a Live Action and Alliance Defending Freedom alum.

— Sean Simons is joining Gates Ventures to work on media relations and communications. He previously was senior director of communications and content strategy at Bono’s (RED).

— Joseph Orlando and Kelly Montgomery are joining Avoq. Orlando will be vice president and lobbyist on the government relations team and previously was a professional staff member for the House Energy & Commerce Committee. Montgomery will be account leadership director for the comms team and previously was comms manager for the National Restaurant Association.

— Anna Makanju is now vice president for global impact at OpenAI, moving from her previous role as vice president for global affairs.

— Kerry Sheehan is now legal advocacy counsel for the Chamber of Progress. She previously worked on tech policy for Meta, iFixit, the Internet Law & Policy Foundry, EFF and Public Knowledge.

— Camila Thorndike has joined the Harris campaign as its climate engagement director. She was previously senior director of public engagement at Rewiring America.

— Diana Banks Thompson has been promoted to vice president and assistant general counsel at Discover Financial.

— LSG has added Liz Cassin as a director in D.C. and Stephanie Kruger as a senior director in Houston. Cassin was most recently with Issue One and Kruger was most recently with Griffin Communications Group.

New Joint Fundraisers

GROWING THE MAJORITY THROUGH NY (Reps. Mike Johnson, Anthony D’Esposito, Andrew Garbarino, Nick LaLota, Mark Lawler, Marc Molinaro, Brandon Williams, Esposito For Congress, NRCC)