Whitaker’s ascent stunned investigators
FTC emails show surprise over central figure in fraud probe
WASHINGTON — As Federal Trade Commission lawyers investigated a Miami company accused of defrauding thousands of customers, they were stunned to learn last year about a new job for a figure in their inquiry, Matthew Whitaker: He had been named chief of staff to Attorney General Jeff Sessions.
“You’re not going to believe this... Matt Whitaker is now chief of staff to the Attorney General. Of the United States,” James Evans, an FTC lawyer, wrote to colleagues in an email Oct. 24, 2017.
The emails were part of a trove of files the trade commission made public Friday in response to Freedom of Information Act requests for documents about its investigation into the company, World Patent Marketing. Whitaker sat on its advisory board.
In early November, President Donald Trump fired Sessions and installed Whitaker as the acting attorney general. His appointment immediately prompted outcry in part because Whitaker had sharply criticized the special counsel investigation into Russia’s election interference and possible ties to Trump associates, which he now oversees as the nation’s top law enforcement officer. Democrats have expressed alarm and vowed to investigate Whitaker when they take over the House of Representatives in January.
Long before most Americans had heard of Whitaker, the FTC had been scrutinizing his connections to World Patent Marketing. The company had promised investors lucrative patent agreements but instead brazenly ripped them off, according to the agency. Its investigation prompted a federal judge to shut down the firm in March 2017, and it was later fined nearly $26 million.
Marketing scheme figure
Whitaker served on the company’s advisory board from 2014 to 2017 and played a central role in its marketing scheme, the newly disclosed files showed. He was paid nearly $10,000.
The Justice Department did not respond to a request for comment on the FTC files, but in the past, Kerri Kupec, a department spokeswoman, has said that “acting attorney general Matt Whitaker has said he was not aware of any fraudulent activity. Any stories suggesting otherwise are false.”
Whitaker has tried to play down his role with World Patent Marketing. He told Evans, the trade commission investigator, that he “acted as an outside lawyer from time to time” for the company and never emailed or wrote to customers, according to the files. As for his time on the advisory board, Whitaker said he never attended a meeting and traveled only once to Miami for a tour and dinner, which he described as a waste of time.
But the newly disclosed documents shed light on the origins and nature of Whitaker’s involvement with the company — including how little time he took to evaluate proposals by its president, Scott Cooper, for work he wanted Whitaker to do.
FTC staff: OMG
Among the files released Friday were an email and a voicemail message to Whitaker from Evans, in which he noted it was his second attempt to reach Whitaker. Evans said he needed four or five minutes of Whitaker’s time by phone to discuss his relationship with World Patent Marketing.
A second voicemail made public was Whitaker’s response to Evans. He said he had not been aware of the subpoena previously, and then he shared his news: “I am now at the Department of the Justice here in Washington, D.C., as the chief of staff to the attorney general. So I want to be very helpful.”
Evans was stunned. He wrote his email to colleagues expressing his shock — “you’re not going to believe this” — and attached a voicemail message, apparently the one from Whitaker.
Three minutes later, Evans sent a follow-up email containing a link to a Sept. 22, 2017, HuffPost article about the announcement that Whitaker would become Sessions’ chief of staff. The article focused on Whitaker’s numerous statements denigrating the investigation by Robert Mueller, the special counsel.
“O.M.G.,” one of Evans’ colleagues responded. The colleague, Jody Goodman, cited Whitaker’s criticism of Mueller’s inquiry and compared it with his work for World Patent Marketing, adding a screenshot of a patent firm marketing material in which Whitaker said: “As a former U.S. attorney, I would only align myself with a first class organization. World Patent Marketing goes beyond making statements about doing business ‘ethically’ and translates them into action.”
The next day, another trade commission lawyer responded to both messages: “OMG is right!”