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American foreign agent who cheated SL out of $ 6.5 mn gets 12-year jail term in US
* Zuberi, American of Pakistani and Indian descent was hired by SL embassy in US in 2014
A Los Angeles-based venture capitalist and political fundraiser who faced several felony charges related to his work as a foreign agent, including cheating the Sri Lankan government out of millions of dollars promising to rebuild the country’s image following the end of the LTTE war, was sentenced on Thursday (18) to 144 months in federal prison, foreign media reported.
Imaad Shah Zuberi, 50, of Arcadia, California, was sentenced by U.S. District Judge Virginia A. Phillips, who also ordered him to pay $ 15,705,080 in restitution and a criminal fine of $1.75 million.
The media, including the US-based ‘Sri Lanka Express’ quoted prosecutors as having said Zuberi had given illegal campaign contributions to Joe Biden, Lindsey Graham and a host of other US politicians.
Investigations revealed that Zuberi had received USD 6.5 mn in 2014 from the then Sri Lankan government after the conclusion of the war in May 2009 to thwart US moves against this country. The following year, the US had an accountability resolution passed at the UNHRC against Sri Lanka.
The sentencing took place less than a week ahead of the commencement of the 46th sessions of the Geneva-based United Nations Human Rights Council (UNHRC)
The UNP-led yahapalana government exposed Zuberi’s involvement in high profile Sri Lanka project, but baulked at initiating a probe.
In November 2019, Zuberi pleaded guilty to a three-count information charging him with violating the Foreign Agents Registration Act (FARA) by making false statements on a FARA filing, tax evasion, and making illegal campaign contributions. In June 2020, Zuberi pleaded guilty in a separate case to one count of obstruction of justice. His sentence today pertains to both cases.
The obstruction charge to which Zuberi pleaded guilty in June 2020 stemmed from a federal investigation into a $900,000 donation from Zuberi through his company to the Donald Trump presidential inaugural committee in late 2016. Some of the funds Zuberi donated to the committee came from other people, including one individual who gave him a $50,000 check.
“Zuberi turned acting as an unregistered foreign agent into a business enterprise,” said Assistant Attorney General for National Security John C. Demers in a press statement issued by the U.S. Justice Department . “He used foreign money to fund illegal campaign contributions that bought him political influence, and used that influence to lobby US officials for policy changes on behalf of numerous foreign principals.”
Demers said Zuberi, while concealing lucrative agreements with foreign principals, also made false statements about them in a FARA filing.
“After learning he was under investigation, Zuberi doubled down on his criminal conduct, obstructing justice by creating false records, destroying evidence, and attempting to purchase witnesses’ silence. This sentence should deter others who would seek to corrupt our political processes and compromise our institutions in exchange for foreign cash.”
Zuberi operated Avenue Ventures LLC, a San Francisco-based venture capital firm, and solicited foreign nationals and representatives of foreign governments with claims he could use his contacts in Washington, D.C. to change U.S. foreign policy and create business opportunities for his clients and himself.
In addition to consulting fees, his foreign clients advanced funds to Zuberi to make investments, or to fund campaign contributions. Zuberi hired lobbyists, retained public relations professionals, and made campaign contributions that gave him access to high-level U.S. officials, some of whom acted in support of his clients.
As evidence of his access and influence, Zuberi distributed to his clients photographs of himself discussing policy with elected officials.
Among the top-ranking politicians with whom Zuberi met were former President Obama, then Senator Biden, former President Bill Clinton, and Secretary of State Hillary Clinton.
“Through myriad international contacts and business partners, Imaad Shah Zuberi was able to raise money and gain influence among the highest political circles in the US. Zuberi used his status to solicit funds for lobbying, campaign contributions, and investments, but ultimately swindled his business partners and pocketed most of the funds for himself,” said Special Agent in Charge Ryan Korner of IRS-Criminal Investigation Los Angeles Field Office.
Korner accused Zuberi, Zuberi is a naturalized American of Pakistani and Indian descent, of being “an opportunist at his core” who used political figures across the aisle to lend an appearance of credibility to his “political charades.”
The Sri Lankan government through its embassy in Washington hired Zuberi in 2014 to boost the country’s image in the United States vis-a-vis various allegations.
The Justice Department said: “Zuberi promised to make substantial expenditures on lobbying efforts, legal expenses, and media buys, which prompted Sri Lanka to agree to pay Zuberi a total of $8.5 million over the course of six months in 2014. Days after Sri Lanka made an initial payment of $3.5 million, Zuberi transferred $1.6 million into his personal brokerage accounts and used another $1.5 million to purchase real estate.”
In total, Sri Lanka wired $6.5 million pursuant to the contract, and Zuberi used more than $5.65 million of that money to the benefit of himself and his wife. Zuberi paid less than $850,000 to lobbyists, public relations firms and law firms, and refused to pay certain subcontractors based on false claims that Sri Lanka had not provided sufficient funds to pay invoices.
On his 2014 tax return, Zuberi claimed income of $558,233 received as lobbying fees from the Sri Lankan government while failing to report more than $5.65 million paid by Colombo. “Zuberi’s tax evasion over the course of four years – 2012 through 2015 – caused tax losses ranging from $3.5 million to as much as $9.5 million.”
Zuberi was also accused of siphoning funds invested in U.S. Cares, a company set up to export humanitarian aid to Iran. In 2013 and 2014, Zuberi used more than 90 percent of the approximately $7 million investors deposited into U.S. Cares for his personal benefit, which included purchasing real estate, paying down debt such as mortgages and credit card bills, remodeling properties, investing in brokerage accounts, and donating $250,000 to a non-profit organization established by a former high-ranking elected official.
Zuberi violated the Federal Election Campaign Act in 2015 by making conduit contributions in the names of other people, reimbursing contributions made by others, and being reimbursed for contributions he made. Over a five-year period – 2012 through 2016 – he made or solicited more than $250,000 in illegal campaign contributions.
Zuberi is expected to report to prison May 25.
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PCoI on Easter Sunday attacks:
By Shamindra Ferdinando
Attorney General Dappula de Livera, PC is not bound by recommendations made by the Presidential Commission of Inquiry (P CoI) into the 2019 Easter Sunday carnage, or presidential directives in that regard, according to authoritative sources.
They said that the AG couldn’t under any circumstances initiate legal proceedings until he had received the full PCoI report.
President Gotabaya Rajapaksa received the PCoI report on Feb 1. The President’s Office delivered a set of PCoI reports to Speaker Mahinda Yapa Abeywardena on Feb 23, a day after the report was presented to the cabinet of ministers. The Island raised the matter with relevant authorities in the wake of a section of the media reporting the PCoI recommending punitive measures against former President Maithripala Sirisena, Defence Secretary Hemasiri Fernando, IGP Pujitha Jayasundera, Chief of State Intelligence Senior DIG Nilantha Jayawardena, Chief of National Intelligence retired DIG Sisira Mendis and All Ceylon Makkal Congress (ACMC) leader and Samagi Jana Balavegaya MP Rishad Bathiudeen et al over the Easter Sunday carnage.
Sources pointed out that due to the inordinate delay in sharing the PCoI report with the AG, the department hadn’t been able to take preliminary measures required to initiate the proceedings. Sources said that a team of officers would take at least six weeks or more to examine the report before tangible measures could be taken.
With the AG scheduled to retire on May 24, 2021, even if the AG Department received the P CoI it would be quite a tough task to initiate proceedings ahead of retirement, sources said. However, in terms of the 20th Amendment to the Constitution enacted in last October, both the AG and the IGP could receive extensions beyond 60 at the President’s discretion.
Dappula de Livera received an Acting appointment as the AG a week after the Easter Sunday carnage whereas his predecessor Jayantha Jayasuriya, PC, was elevated to Chief Justice.
Responding to another query, sources said that the Attorney General two weeks ago requested Secretary to the President for a copy of the P CoI. However, the AG was yet to receive one, sources said. In spite of the AG not receiving a P CoI copy, the AG had instructed the IGP to obtain a copy of the report when he requested the police to complete investigations into the Easter Sunday carnage. The AG issued specific instructions after having examined police files pertaining to the investigations.
The IGP, too, hadn’t received a copy so far though some sections of the report were in the public domain.
Agriculture Minister Mahindananda Aluthgamage displayed at a live political programme on Derana a copy of the P CoI report he received at the cabinet meeting earlier in the day.
Sources said that the Attorney General’s Department couldn’t decide on a course of action in respect of the Easter carnage on the basis of a section of the report. In terms of the Commission of Inquiry Act (Section 24), the AG enjoyed significant powers/authority in respect of investigations; sources said adding that the Department urgently required both the P CoI report and police investigations report. The Attorney General’s Department has raised the delay in receiving a P CoI report amidst the Catholic Church attacking the government over the same issue.
Sources said that ministerial committee appointed to study the P CoI report couldn’t decide on how to proceed with the recommendations and the matter was entirely in the hands of the AG. Sources pointed out that the delay on the part of the government to release the report had received the attention of sections of the international media, including the New York Times. Public Security Minister retired Rear Admiral Sarath Weerasekera having met Malcolm Cardinal Ranjith at the Bishop’s House on Dec 8, 2020 said that the AG would get a copy of the P CoI report once the President received it. Minister Weerasekera said that the CID had handed over the relevant files after having completed investigations into eight blasts. Referring to the Parliamentary Select Committee (PSC) report on the Easter Sunday carnage, the former Navy Chief of Staff said that all such documents would have to be brought to one place and considered before initiating legal proceedings. Acknowledging that there could be delays, lawmaker Weerasekera said that on the instructions of the Attorney General a 12-member team of lawyers was working on the case. The minister vowed to expose the mastermind behind the Easter Sunday attacks. Investigations continued while some of those wanted were overseas, the minister said.
The minister acknowledged that the Attorney General couldn’t proceed without the P CoI report. Minister Weerasekera reiterated that once the President received the P CoI report, it would be sent to the Attorney General. The minister said that there were documents two to three feet high that needed scrutiny. The minister assured comprehensive investigation. The minister said that investigations pertaining to eight blasts had been completed and the reports handed over to the AG. However, the Attorney General had found shortcomings in those investigations.
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By Saman Indrajith
The Presidential Commission of Inquiry on the Easter Sunday bombings had failed to identify the mastermind of , the JVP said yesterday.
Addressing the media at the party headquarters in Pelawatte, JVP Propaganda Secretary MP Vijitha Herath said that the PCoI report had levelled accusations against former President Maithripala Sirisena, former IGP and head of intelligence for their dereliction of duty, shirking of responsibilities and not taking action to prevent the attacks and negligence. There were reference to the causes of the terror attacks and actions to be taken to avoid such attacks and the influence of extremist organisations. “However, there is no mention of the mastermind of the attacks, the handlers of the attackers and those whose interests the carnage served. It is also not mentioned whether there has been any foreign or local organisation behind those attacks. As per the PCoI report the attack took place as a result of culmination of extremism.
“According to the PCoI the extremist activities were a result of the prevailing political situation then. The entire nation was waiting to see who was responsible and who masterminded those attacks. The PCoI has failed to identify the true culprits responsible for the terror attacks. The report says that the leader of the suicide cadres killed himself in the attacks and it was a puzzle. That means those who are actually responsible for the attacks are still at large. The report does not provide exact details of the sources of the attacks. The PCoI had sittings for one year and five months. It summoned various persons and got their statements but it has failed to shed any light on the terror attacks. Everybody knows that the top leaders of the government and heads of security and intelligence establishments failed in their duties. Ranil Wickremesinghe was the second in command and he too is bound by the responsibility but the PCoI report fails to identify him as one of the persons against whom legal action should be instituted. The PCoI has treated Wickremesinghe and former President Maithripala Sirisena differently. We are not telling that this report is a total failure but we cannot accept this as a complete report. The PCoI handed over its report to the President on Feb 1. After 23 days it was sent to Parliament. Now, a copy of the report is there in the parliamentary library for the perusal of MPs.”
Herath said that the PCoI did not have powers to take punitive action. “It only has powers to name those responsible and recommend action to be taken against those named.
