Southland Campaign Fundraiser Pleads Guilty in L.A. to Federal Charges
Southland Campaign Fundraiser Pleads Guilty in L.A. to Federal Charges
by Contributing Editor
A Southland venture capitalist who donated $900,000 to President Donald Trump’s inaugural committee pleaded guilty Friday to federal campaign finance violations and tax evasion.
In his plea, Imaad Zuberi, who ran a venture capital firm called Avenue Ventures, admitted soliciting money from foreign nationals, funneling some of that money to American political campaigns, falsifying records in order to conceal his work as a foreign agent from the Department of Justice, and failing to report millions of dollars in income he earned from a foreign government.
Zuberi, 49, of Arcadia, entered his plea in Los Angeles federal court to submitting false statements to the DOJ about his foreign lobbying efforts, tax evasion and violating campaign finance law — charges that could bring up to 15 years in prison at a Feb. 10 sentencing hearing.
Despite the plea, federal prosecutors in New York may file new charges against Zuberi, according to defense papers filed Thursday in Los Angeles. Zuberi’s lawyers wrote in a request to delay the change of plea hearing that New York prosecutors have indicated they intend to charge Zuberi with obstruction of justice and failing to register as a foreign agent.
“Mr. Zuberi wants to put his conduct behind him, make amends, and be sentenced, but he also wants finality,” defense attorneys Evan Davis and Tom O’Brien wrote in the filing.
At the same time, Los Angeles prosecutors warned Zuberi that if he did not go forward with the guilty plea hearing, they would seek a Jan. 7 trial date and file an updated indictment charging, among other allegations, wire fraud, violations of the Foreign Agents Registration Act, and money laundering.
Federal prosecutors told the court Friday that Zuberi collected millions of dollars for consulting fees, supposed investments and campaign contributions, but kept much of the money. Individuals and companies that work for foreign governments are required to register their activities with the DOJ.
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. To trumpet evidence of his supposed access and influence, Zuberi distributed to his clients photographs of himself discussing policy with elected officials, according to the U.S. Attorney’s Office.
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 DOJ.
Federal prosecutors said Zuberi accepted money from two foreign companies with promises that the funds would be used to contribute to political campaigns, but took the majority of the money — more than $1.1 million — for his own personal use.
“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 said last month when Zuberi was charged.
“Mr. Zuberi circumvented laws designed to insulate U.S. policy and our election process from foreign intervention,” Hanna said. “This investigation has halted his illegal conduct, will result in several felony convictions, and could send him to prison for a lengthy period of time.”
>> Want to read more stories like this? Get our Free Daily Newsletters Here!
All credit goes to Contributing Editor
Originally published on https://mynewsla.com
