Southern California campaign fundraiser accused of falsifying records, evading taxes

Southern California campaign fundraiser accused of falsifying records, evading taxes

by Jonah Valdez, City News Service

Federal prosecutors have accused a Southern California campaign fundraiser of falsifying records to conceal his work as a foreign agent while lobbying U.S. government officials, authorities said Tuesday.

Criminal charges against Imaad Shah Zuberi, of Arcadia, also allege that he engaged in lobbying efforts that earned him millions of dollars, much of which was stolen from his clients, according to federal prosecutors..

In addition to alleged violations of the Foreign Agents Registration Act, the 49-year-old Zuberi is accused of  tax evasion and making illegal campaign contributions that included funneling money from foreign entities and individuals to influence U.S. elections.

Prosecutors said Zuberi has agreed to plead guilty to three counts in the case filed against him. A plea agreement filed Tuesday in U.S. District Court notes that Zuberi faces a maximum sentence of 15 years in federal prison.

Among the allegations, prosecutors said Zuberi promised the Sri Lankan government that he could help them improve their public image in the U.S. amid ongoing allegations of Sri Lanka’s persecution of their minority Tamil population. Zuberi did this, prosecutors said, to create business opportunities for Sri Lanka and other nations, and for himself.

Zuberi established a venture capital fund to profit off his lobbying efforts, prosecutors said. In 2014 he netted an estimated $5 million from Sri Lanka for his personal use.

He allegedly failed to disclose his work for the Sri Lankan government and his profits from the scheme, which included lobbying conversations with members of U.S. Congress.

“Mr. Zuberi was the primary organizer of paid political efforts to mold the opinion of political officials, including members of Congress, to benefit Sri Lanka. Instead, he used shell business entities to divert millions of dollars for his own personal use,” stated Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation’s Los Angeles Field Office.

Zuberi, who is expected to make his initial appearance in the case in downtown Los Angeles on Oct. 30,

According to court documents, clients gave Zuberi money for consulting fees, to make investments, or to fund campaign contributions. As part of his efforts to influence public policy, Zuberi hired lobbyists, retained public relations professionals and made campaign contributions — which gave him access to high-level U.S. officials, some of whom took action 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, the U.S. Attorney’s Office alleges.

While some U.S. officials were willing to take action on issues Zuberi put forward, most of his business efforts were unsuccessful and his clients suffered significant losses, according to prosecutors. Many of the lobbyists, public relations consultants and other subcontractors also suffered losses when Zuberi refused to pay them, according to the complaint.

Zuberi, on the other hand, became wealthy, primarily as the result of fraudulent representations about his background influence, and the use of client funds, much of which constituted an “outright conversion of client money for defendant Zuberi’s own personal benefit,” the complaint alleges.

“Mr. Zuberi’s multi-faceted scheme allowed him to line his pockets by concealing the fact that he was representing foreign clients, obtaining access for clients by making a long series of illegal contributions, and skimming money paid by his clients,” U.S. Attorney Nick Hanna alleged.

Zuberi is expected to make his initial appearance in the case in downtown Los Angeles on Oct. 30,

All credit goes to Jonah Valdez, City News Service
Originally published on https://www.dailynews.com