Officially, Paul Manafort resigned as Donald Trump’s campaign chairman because the Donald felt Manafort had become a “distraction.” Well, we may have a good idea about what that “distraction” was. CNN reports that Manafort’s lobbying firm has been ensnared in a federal investigation into what role American entities played in the corruption of Ukraine’s former pro-Russian president.
According to multiple federal law enforcement officials, the FBI and Justice Department want to know if former Ukrainian president Viktor Yanukovych used American companies and the American financial system to aid in his corrupt dealings. Among other things, investigators are taking a close look at the work Manafort’s firm, DMP International, did for Yanukovych and his Party of Regions.
Manafort himself is not a target–yet. However, on the face of it, all roads lead to the veteran Republican operative. After all, the investigation came to light less than 24 hours after the Associated Press revealed that Manafort orchestrated a secret, and potentially illegal, lobbying campaign to improve Yanukovych’s image in Washington.
In case you missed it, Manafort’s business partner, Rick Gates, directed two American lobbying firms to set up a meeting between a Ukrainian official and American lawmakers. The official didn’t want to use the Ukrainian embassy in Washington as a go-between. Gates orchestrated this meeting from his email account at DMP. Manafort was well aware of this, and in fact oversaw the operation over the phone.
Earlier, the AP learned that those two firms got $2.2 million from the European Centre for a Modern Ukraine, a nonprofit that, by Gates’ own admission, was a front for the Party of Regions. And before then, it emerged that Manafort received $12.7 million in under-the-table payments from the Party of Regions.
Add it all up, and Manafort should have a lawyer on speed dial. This activity could potentially amount to an egregious violation of the Foreign Agents Registration Act, which requires lobbyists working for foreign politicians and political parties to register with the Justice Department. Manafort’s failure to disclose his activities could potentially get him up to five years in prison.
This investigation is going to be slow-moving, and would be even if this issue wasn’t so politically sensitive. But there’s a chance that we may learn more details sooner than we think. The two lobbying firms ensnared in this illicit campaign, the Democratic-leaning Podesta Group and the Republican-leaning Mercury Group, have both retained outside counsel to look into their potential involvement. Podesta Group has asked Caplin & Drysdale to conduct an internal review of its Ukraine work. Mercury has retained Skadden, Arps, Meagher and Flom to review its role in the affair.
Podesta Group, whose founder is the brother of Hillary Clinton campaign chairman John Podesta, issued a statement that all but accused the Centre of a cynical campaign of deceit.
“When the Centre became a client, it certified in writing that ‘none of the activities of the Centre are directly or indirectly supervised, directed, controlled, financed or subsidized in whole or in part by a government of a foreign country or a foreign political party.’ We relied on that certification and advice from counsel in registering and reporting under the Lobbying Disclosure Act rather than the Foreign Agents Registration Act. We will take whatever measures are necessary to address this situation based on Caplin & Drysdale’s review, including possible legal action against the Centre.”
That statement can only be described as a shot across Manafort’s bow. After all, it’s very likely that said legal action will shed a lot of light on what Manafort knew and when he knew it.
For the better part of the summer, Trump has ranted on Twitter about the need to stop “Crooked Hillary” from getting into the White House. And now it turns out that his former campaign chairman may be one of the most corrupt individuals in the history of American politics. Karma is so sweet, isn’t it?
