Middleman helped Saudi give to Obama inaugural
When President Barack Obama was reelected in 2012, a Saudi tycoon and his business associate sent hundreds of thousands of dollars to the U.S. to help pay for the inaugural celebration and get a picture with the president, according to court documents and an analysis of campaign finance records by The Associated Press.
U.S. election law prohibits foreign nationals from making those sorts of political contributions. But the donations Sheikh Mohammed Al Rahbani tried to send to Obama’s inaugural committee were funneled through a seasoned straw donor, the records and the AP analysis show.
That intermediary, Imaad Zuberi, agreed this month to plead guilty to making illegal campaign contributions to several American political candidates on behalf of foreign nationals. He is also set to plead guilty to concealing his work as a foreign agent as he lobbied high-level U.S. government officials.
The prosecution by the U.S. attorney in Los Angeles is the latest in a string of cases that highlight the prevalence of banned foreign money in American politics and the often lax approach campaigns take in vetting contributions.
Zuberi, a jet-setting fundraiser and venture capitalist, has raised millions of dollars for Democrats and Republicans alike over the years. Prosecutors say he has worked on behalf of several foreigners, not just Rahbani.
He served as a top fundraiser for both Obama and Hillary Clinton during their presidential runs, including stints on both of their campaign finance committees, before switching his support to President Donald Trump immediately after his 2016 victory, pumping nearly $1 million into the Republican’s inaugural committee.
Federal Election Commission records show hundreds of donations from Zuberi and his family to Republican and Democratic national committees, the presidential campaigns of Trump and Clinton, and dozens of congressional candidates across the political spectrum. Zuberilinked donations often went to lawmakers who are influential or outspoken on foreign policy issues, like Sen. Lindsey Graham and Democratic Rep. Eliot Engel, chairman of the House Foreign Affairs Committee.
Only Zuberi has been charged in the case, and prosecutors have not alleged that any campaign that received money from him was aware that at least some of his donations were financed by foreigners.
Zuberi’s case raises questions about the degree to which political committees vet donors. One campaign, not identified by name, accepted donations made in the name of one of Zuberi’s dead relatives, prosecutors said. Another political committee took donations from a person Zuberi invented.
Some donations reported by political campaigns were made in Rahbani’s and others’ names but were paid for with credit cards belonging to Zuberi or his wife, prosecutors said.
Requests for comment were sent to representatives for Graham, Clinton and Engel.
Steve Kerrigan, CEO of Obama’s 2013 inauguration committee, said it had a very thorough vetting process that included requiring donors to certify that their contributions complied with the law. He declined to comment further on the specifics of Zuberi’s donations.
As a middleman, Zuberi was deeply flawed.
Zuberi, 49, admitted in a plea agreement that only $97,500 of the $850,000 that he was supposed to deliver to the Obama inaugural committee on Rahbani’s behalf actually made it into the committee’s hands. The rest, he skimmed for himself.
Rahbani declined to comment through an assistant. Zuberi’s attorneys and the U.S. Attorney’s Office in Los Angeles all declined to comment.
The criminal case against Zuberi doesn’t explain why Rahbani would have wanted to contribute to American political campaigns.
His company SAFID — a manufacturer of air conditioning-related products — is active throughout the Middle East and says on its website that it has worked on projects financed by the Saudi government.
Rahbani, in a few past interviews, has talked about his support of Obama. He posted pictures on his website of himself and his wife standing with Obama, former Vice President Joe Biden and their spouses at a 2013 inaugural event. The website was taken down shortly after Zuberi’s plea was made public.
Prosecutors said $100,000 from Rahbani’s company meant for the inaugural committee was earmarked for “photos.”
It isn’t unusual for political fundraisers to offer photo sessions with candidates in exchange for donations and such practices are legal — although the ban on donations from foreign nationals would apply.
Zuberi, however, tried to get Rahbani and one of his business associates to donate even more money by falsely claiming they had taken too many people to a photo session with Obama and Biden and owed more money as a result, prosecutors said.
“I’m deeply concerned about foreigners trying to intervene in our elections, and I don’t think we’re doing enough to try to stop it,” FEC chairwoman Ellen Weintraub told the AP. “They don’t get a say in who we elect — or at least they’re not supposed to.”