San Francisco Chronicle

Journalist fired over ethical conflict

- By Jeff Horwitz, Jon Gambrell and Jack Gillum Jeff Horwitz, Jon Gambrell and Jack Gillum are Associated Press writers.

The Wall Street Journal fired its highly regarded chief foreign affairs correspond­ent Wednesday, after evidence emerged of his involvemen­t in prospectiv­e commercial deals — including one involving arms sales to foreign government­s — with an internatio­nal businessma­n who was one of his key sources.

The reporter, Jay Solomon, was offered a 10 percent stake in a fledgling company, Denx LLC, by Farhad Azima, an Iranian-born aviation magnate who has ferried weapons for the CIA. It was not clear whether Solomon ever received money or formally accepted a stake in the company.

“We are dismayed by the actions and poor judgment of Jay Solomon,” Wall Street Journal spokesman Steve Severingha­us wrote in a statement to the Associated Press. “While our own investigat­ion continues, we have concluded that Mr. Solomon violated his ethical obligation­s as a reporter, as well as our standards.”

Azima was the subject of an AP investigat­ive article published Tuesday. During the course of its investigat­ion, the AP obtained emails and text messages between Azima and Solomon, as well as an operating agreement for Denx dated March 2015, which listed an apparent stake for Solomon.

As part of its reporting, the AP had asked the Journal about the documents appearing to link Solomon and Azima. The relationsh­ip was uncovered in interviews and in internal documents that Azima’s lawyer said were stolen by hackers.

“I clearly made mistakes in my reporting and entered into a world I didn’t understand.” Solomon said Wednesday. “I never entered into any business with Farhad Azima, nor did I ever intend to. But I understand why the emails and the conversati­ons I had with Mr. Azima may look like I was involved in some seriously troubling activities. I apologize to my bosses and colleagues at the Journal, who were nothing but great to me.”

Two other Denx partners — ex-CIA employees Gary Bernsten and Scott Modell — told said that Solomon was involved in discussing proposed deals with Azima at the same time he continued to cultivate the businessma­n as a source for his stories for the Journal. Bernsten and Modell said Solomon withdrew from the venture shortly after business efforts began and that the venture never added up to much. They provided no evidence as to when Solomon withdrew.

The emails and texts reviewed by the AP — tens of thousands of pages covering more than eight years — included more than 18 months of communicat­ions involving the apparent business effort. Some messages described a need for Solomon’s Social Security number to file the company’s taxes, but there was no evidence Solomon provided it.

Denx was shuttered last year, according to Florida business registrati­on records.

In an April 2015 email, Azima wrote to Solomon about a proposal for a $725 million air-operations, surveillan­ce and reconnaiss­ance support contract with the United Arab Emirates that would allow planes to spy on activity inside nearby Iran. Solomon was supposed to ferry the proposal to UAE government representa­tives at a lunch the following day, the email said.

“We all wish best of luck to Jay on his first defense sale,” Azima wrote to Solomon, Bernsten and Modell.

Under the proposed UAE deal, Azima’s firms were to manage specially equipped surveillan­ce planes to monitor activity in Iran, Syria, Iraq and Yemen.

In October 2014, Solomon wrote to Azima in a text message: “Our business opportunit­ies are so promising.”

In another message that same month, Solomon asked Azima whether he had told a mutual friend about their business plans.

“Hell no!” Azima replied.

The emails show Solomon’s relationsh­ip with Azima began profession­ally, as the reporter cultivated the businessma­n as a source of informatio­n about Iranian money in a Georgian hotel deal and other matters. A review of Solomon’s published work over the past four years indicated Azima never appeared by name in the newspaper.

The hacked materials also demonstrat­e that Azima cultivated close relationsh­ips with fellow Western and American journalist­s, including those at the AP, and frequently communicat­ed with them by phone, text and email. None appeared to involve the same level of personal involvemen­t or referenced potential business deals.

Over decades, Azima has glided among different worlds, flying weapons to the Balkans, selling spy gear to Persian Gulf nations, dealing with a small Midwest bank and navigating Washington’s power circles. In an April 2016 memo, a public relations firm he worked with, Prime Strategies, suggested Solomon could be called upon to “write a feature story about Farhad” to help combat negative coverage.

In May 2015, Bernsten — using the alias “the Vicar” — emailed Azima with a plan to help a dissident member of the Kuwaiti royal family instigate public protests over corruption with the goal of bringing down the nation’s government. Though the Kuwaiti plan involved Denx, Solomon was not included in the emails and said he knew nothing about it. It does not appear the plans were ever executed, as 87-yearold Sheikh Sabah Al Ahmad Al Sabah remains in power.

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