NICOLA T. HANNA United S t a t e s Attorney BRANDON D. FOX A s s i s t a n t United S t a t e s A t t o r n e y C h i e f , C r i m i n a l D i v i s i o n DANIEL J . O'BRIEN ( C a l . Bar No. 141720) A s s i s t a n t United S t a t e s A t t o r n e y Deputy C h i e f , P u b l i c C o r r u p t i o n & C i v i l Rights Section
1500 United S t a t e s Courthouse 312 North Spring S t r e e t Los Angeles, C a l i f o r n i a 90012 Telephone: (213) 894-2468 F a c s i m i l e : (213) 894-2927 E- m a i l : [email protected]
ELISA FERNANDEZ ( C a l . Bar No. 172004) A s s i s t a n t United S t a t e s A t t o r n e y
1500 United S t a t e s Courthouse 312 North S p r i n g S t r e e t Los Angeles, C a l i f o r n i a 90012 Telephone: (213) 894-7383 F a c s i m i l e : (213) 894-2927
A t t o r n e y s f o r P l a i n t i f f UNITED STATES OF AMERICA
UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF California
UNITED STATES OF AMERICA,
P l a i n t i f f , '
v.
IMAAD SHAH ZUBERI,
Defendant.
m . ^CF
P L E A AGREEMENT
1. T h i s c o n s t i t u t e s the p l e a agreement between Imaad Shah
Zuberi ("defendant") and the United S t a t e s A t t o r n e y ' s O f f i c e f o r the
C e n t r a l D i s t r i c t of C a l i f o r n i a (the "USAO") i n the above-captioned
case. T h i s agreement i s l i m i t e d to the USAO and cannot b i n d any
other f e d e r a l , s t a t e , l o c a l , or f o r e i g n p r o s e c u t i n g , enforcement,
a d m i n i s t r a t i v e , or r e g u l a t o r y a u t h o r i t i e s ' .
DEFENDANT'S OBLIGATIONS
2. Defendant agrees t o :
a. Post a $3 m i l l i o n bond a t ar r a i g n m e n t s e c u r e d by $3
m i l l i o n t r a n s f e r r e d i n t o h i s a t t o r n e y ' s t r u s t account p r i o r t o
arra i g n m e n t and no l a t e r than October 25, 2019.
b. G i v e up the r i g h t t o i n d i c t m e n t by a grand j u r y and,
a t the e a r l i e s t o p p o r t u n i t y r e q u e s t e d by t h e USAO and p r o v i d e d by the
Cour t , appear and p l e a d g u i l t y t o a t h r e e - c o u n t i n f o r m a t i o n i n the
form a t t a c h e d t o t h i s agreement as E x h i b i t A or a s u b s t a n t i a l l y
s i m i l a r form, which charges defendant w i t h v i o l a t i o n s of the F o r e i g n
Agents R e g i s t r a t i o n A c t ("FARA") i n v i o l a t i o n o f 22 U.S.C. §§ 612,
6 1 8 ( a ) ( 2 ) , t a x e v a s i o n i n v i o l a t i o n o f 26 U.S.C. § 7201, and F e d e r a l
E l e c t i o n Campaign A c t ("FECA") o f f e n s e s a g g r e g a t i n g i n e x c e s s of
$25,000 i n v i o l a t i o n of 52 U.S.C. §§ 30116, 30118, 30121, 30122, and
3 0 1 0 9 ( d ) ( 1 ) .
c. Not c o n t e s t f a c t s agreed t o i n t h i s agreement.
d. Abide by a l l agreements r e g a r d i n g s e n t e n c i n g c o n t a i n e d
i n t h i s agreement.
e. Appear f o r a l l c o u r t appearances, s u r r e n d e r as or d e r e d
f o r s e r v i c e of s e n t e n c e , obey a l l c o n d i t i o n s o f any bond, and obey
any o t h e r ongoing c o u r t o r d e r i n t h i s m a t t e r .
f . Not commit any cr i m e ; however, o f f e n s e s t h a t would be
e x c l u d e d f o r s e n t e n c i n g purposes under U n i t e d S t a t e s S e n t e n c i n g
G u i d e l i n e s ("U.S.S.G." or " S e n t e n c i n g G u i d e l i n e s " ) § 4A1.2(c) a r e not
w i t h i n t h e scope o f t h i s agreement.
g. Be t r u t h f u l a t a l l t i m e s w i t h P r e t r i a l S e r v i c e s , t h e
U n i t e d S t a t e s P r o b a t i o n O f f i c e , and the Court.
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h. Pay the a p p l i c a b l e s p e c i a l a ssessments a t or b e f o r e
t h e time of s e n t e n c i n g .
PAYMENT OF TAXES OWED
3. Defendant admits he owes a d d i t i o n a l f e d e r a l income t a x e s
f o r the y e a r s 2012, 2013, 2014, and 2015 as r e f l e c t e d i n an I n t e r n a l
Revenue S e r v i c e ("IRS") c l o s i n g agreements ("the C l o s i n g Agreements")
e x e c u t e d by defendant and h i s spouse on September 17 and on October
4, 2019. Defendant agrees t o :
a. Pay the t a x d e f i c i e n c i e s , f r a u d p e n a l t i e s imposed by
t h e I n t e r n a l Revenue Code, and s t a t u t o r y i n t e r e s t o b l i g a t i o n s as
acknowledged i n the C l o s i n g Agreements, p r i o r to J a n u a r y 3 1 , 2020.
b. Acknowledge t h a t n o t h i n g i n t h i s agreement f o r e c l o s e s
or l i m i t s the a b i l i t y of t h e IRS t o examine and make adj u s t m e n t s t o
any t a x r e t u r n s f i l e d by defendant f o r any o t h e r y e a r .
i . I n t h e event defendant f a i l s t o pay t h e t a x
d e f i c i e n c i e s , f r a u d p e n a l t i e s , and s t a t u t o r y i n t e r e s t o b l i g a t i o n s
acknowledged i n the C l o s i n g Agreements by J a n u a r y 3 1 , 2020, agree the
I R S may f i l e and r e c o r d t h r e e q u i t c l a i m deeds e x e c u t e d by defendant
on September 17, 2019 on b e h a l f of the LLCs t h a t own p r o p e r t i e s i n
f a v o r of the defendant, f i l e and r e c o r d l i e n s on t h e s e p r o p e r t i e s ,
and s e l l the p r o p e r t i e s i n p a r t i a l or complete s a t i s f a c t i o n of t h e
debt i d e n t i f i e d i n the C l o s i n g Agreements. Any proceeds t h a t exceed
amounts owed under the C l o s i n g Agreements p l u s monetary o b l i g a t i o n s
imposed by the c o u r t r e g a r d i n g s p e c i a l a s s e s s m e n t s , r e s t i t u t i o n or
f i n e s a t s e n t e n c i n g s h a l l be r e t u r n e d t o defendant.
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c. Not f i l e any c l a i m f o r refund of ta x e s , p e n a l t i e s , or
i n t e r e s t f o r amounts a t t r i b u t a b l e to the r e t u r n s f i l e d i n connection
with t h i s p l e a agreement.
d. Give up any and a l l o b j e c t i o n s t h a t could be a s s e r t e d
to the Examination D i v i s i o n of the IRS r e c e i v i n g m a t e r i a l s or
inform a t i o n obtained during the c r i m i n a l i n v e s t i g a t i o n of t h i s
matter, i n c l u d i n g m a t e r i a l s and i n f o r m a t i o n obtained through grand
j u r y subpoenas.
e. Allow a l l funds posted as bond i n t h i s matter to be
a p p l i e d by the Court to pay, i n order of a p p l i c a t i o n , the tax
d e f i c i e n c i e s , f r a u d p e n a l t i e s , and s t a t u t o r y i n t e r e s t o b l i g a t i o n s
acknowledged i n the C l o s i n g Agreements, s p e c i a l assessments, c r i m i n a l
f i n e s , and c o s t s t h a t defendant i s r e q u i r e d to pay, and execute
papers as n e c e s s a r y to accomplish t h i s a p p l i c a t i o n .
FARA COMPLIANCE
4. Defendant agrees to s a t i s f y any and a l l o b l i g a t i o n s under
FARA p r i o r to sen t e n c i n g , i n c l u d i n g r e g i s t e r i n g f o r any and a l l
a c t i v i t y , p a s t or p r e s e n t , t h a t r e q u i r e s r e g i s t r a t i o n under FARA and
amending any d e f i c i e n c i e s i n e x i s t i n g FAFA f i l i n g s .
THE USAO'S OBLIGATIONS
5. The USAO agrees to:
a. Not c o n t e s t f a c t s agreed to i n t h i s agreement.
b. Abide by a l l agreements r e g a r d i n g s e n t e n c i n g contained
i n t h i s agreement.
c. Provided t h a t defendant demonstrates an acceptance of
r e s p o n s i b i l i t y f o r the charged o f f e n s e s as d e f i n e d i n U.S.S.G.
§ 1BE1.1, i n c l u d i n g as f u r t h e r e x p l a i n e d i n i t s a p p l i c a t i o n notes and
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i n p a r t i c u l a r Note 1(A), recommend a t w o - l e v e l r e d u c t i o n i n the
a p p l i c a b l e Sentencing G u i d e l i n e s o f f e n s e l e v e l , pursuant to U.S.S.G.
§ 3E1.1, and, i f n e c e s s a r y , move f o r an a d d i t i o n a l o n e - l e v e l
r e d u c t i o n i f a v a i l a b l e under t h a t s e c t i o n .
d. Not c r i m i n a l l y prosecute defendant f o r ( i ) wire f r a u d
or m a i l f r a u d during the p e r i o d 2012 through 2016 a r i s i n g out of
defendant's conduct as d e s c r i b e d i n the agreed-to f a c t u a l b a s i s or i n
the i n f o r m a t i o n f i l e d i n t h i s matter, ( i i ) F o r e i g n Bank and F i n a n c i a l
Account Report ("FBAR") v i o l a t i o n s f o r the t a x y e a r s 2012 through
2016, ( i i i ) money lau n d e r i n g , and ( i v ) o b s t r u c t i o n of j u s t i c e .
Defendant d i s p u t e s t h a t he committed any such crimes but understands
t h a t the USAO i s f r e e to argue, and t h a t the Court may consider, the
aforementioned a l l e g a t i o n s and any other uncharged conduct i n
determining a p p l i c a b l e Sentencing G u i d e l i n e s enhancements, the
Sentencing G u i d e l i n e range, the p r o p r i e t y and ex t e n t of any departure
from t h a t range, and the sentence to be imposed a f t e r c o n s i d e r a t i o n
of the Sentencing G u i d e l i n e s and a l l other r e l e v a n t f a c t o r s under 18
U.S.C. § 3 5 5 3 ( a ) .
e. Not c r i m i n a l l y prosecute defendant's spouse f o r any
c r i m i n a l o f f e n s e r e l a t e d to ( i ) her 2012 i n d i v i d u a l tax r e t u r n , ( i i )
the tax r e t u r n s she co-signed with defendant f o r the 2013, 2014, and
2015 c a l e n d a r y e a r s , and ( i i i ) any of the o f f e n s e s r e c i t e d i n
paragraph 5(d) above. Defendant d i s p u t e s t h a t h i s spouse committed
any such o f f e n s e s . Defendant acknowledges t h a t he has d i s c u s s e d w i t h
h i s a t t o r n e y and c a r e f u l l y c onsidered the p o s s i b l e advantages and
disadvantages to defendant of e n t e r i n g i n t o t h i s Agreement which
i n c l u d e s a package d e a l , t h a t i s , a non-prosecution agreement w i t h
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r e s p e c t to defendant's spouse. Defendant acknowledges t h a t he i s
e n t e r i n g i n t o t h i s Agreement as p a r t of the package d e a l f r e e l y and
v o l u n t a r i l y because defendant b e l i e v e s t h i s Agreement and the package
d e a l to be i n defendant's b e s t i n t e r e s t s . Defendant acknowledges
t h a t he i s not e n t e r i n g i n t o t h i s Agreement as p a r t of the package
d e a l because of t h r e a t s , c o e r c i o n , or o t h e r undue i n f l u e n c e by the
USAO, h i s spouse, t h e i r counsel, anyone a c t i n g on t h e i r b e h a l f , or
anyone e l s e .
f. Defendant understands t h a t the USAO i s f r e e to
c r i m i n a l l y p r o s e c u t e defendant f o r any other u n l a w f u l p a s t conduct or
any unlawful conduct t h a t occurs a f t e r the date of t h i s agreement.
NATURE OF THE OFFENSE
6. Defendant understands t h a t f o r defendant to be g u i l t y of
the crime charged i n count one, t h a t i s , FARA o f f e n s e s i n v i o l a t i o n
of 22 U.S.C. §§ 612, and 618(a) ( 2 ) , the f o l l o w i n g must be t r u e :
a. Defendant a c t e d i n the U n i t e d S t a t e s as an agent of a
f o r e i g n government or f o r e i g n n a t i o n a l ;
b. Defendant was r e q u i r e d to f i l e a r e g i s t r a t i o n
statement w i t h the U.S. Attorney General w i t h i n ten days of becoming
such an agent;
c. Defendant e i t h e r f i l e d , or caused to be f i l e d , a
r e g i s t r a t i o n statement, knowing t h a t the statement contained
m a t e r i a l l y f a l s e i nformation, omitted a m a t e r i a l f a c t r e q u i r e d to be
s t a t e d i n the r e g i s t r a t i o n statement, or w i t h h e l d m a t e r i a l f a c t s or
documents n e c e s s a r y to make the statement not m i s l e a d i n g ; and
d. Defendant a c t e d w i l l f u l l y .
7. Defendant understands t h a t f o r defendant to be g u i l t y of
the crime charged i n count two, t h a t i s , t a x eva s i o n , i n v i o l a t i o n of
T i t l e 26, Uni t e d S t a t e s Code, S e c t i o n 7201, the f o l l o w i n g must be
t r u e :
a. A s u b s t a n t i a l income t a x was due i n a d d i t i o n to t h a t
d e c l a r e d on the defendant's tax r e t u r n ;
b. The defendant attempted to evade or defeat t h i s
a d d i t i o n a l tax; and
c. The defendant a c t e d w i l l f u l l y .
8. Defendant understands t h a t f o r defendant to be g u i l t y of
the crime charge i n count t h r e e , FECA o f f e n s e s aggregating i n exc e s s
of $25,000, i n v i o l a t i o n of 52 Uni t e d S t a t e s Code §§ 30116, 30118,
30121, 30122, and 3 0 1 0 9 ( d ) ( 1 ) , the f o l l o w i n g must be t r u e :
a. Defendant s o l i c i t e d , aided, caused to be made, or made
FECA c o n t r i b u t i o n s ( i ) i n excess of q u a n t i t a t i v e l i m i t s , ( i i ) from
f o r e i g n n a t i o n a l s or e n t i t i e s , ( i i i ) i n the name of another person,
or ( i v ) through c o n d u i t s ;
b. Defendant knew the c o n t r i b u t i o n s were unlawful and
ac t e d w i l l f u l l y ; and
c. The aggregate v a l u e of the i l l e g a l c o n t r i b u t i o n s
exceeded $25,000 w i t h i n a c a l e n d a r y e a r .
PENALTIES AND RESTITUTION
9. Defendant understands t h a t the s t a t u t o r y maximum sentence
t h a t the Court can impose f o r a v i o l a t i o n of T i t l e 22, United S t a t e s
Code, S e c t i o n s 612 and 6 1 8 ( a ) ( 2 ) i s : f i v e - y e a r s imprisonment; a
t h r e e - y e a r p e r i o d of s u p e r v i s e d r e l e a s e ; a f i n e of $250,000 or twice
7
the gross g a i n or gr o s s l o s s r e s u l t i n g from the o f f e n s e , whichever i s
g r e a t e s t ; and a mandatory s p e c i a l assessment of $100.
10. Defendant understands t h a t the s t a t u t o r y maximum sentence
t h a t the Court can impose f o r a v i o l a t i o n of T i t l e 26, United S t a t e s
Code, S e c t i o n 7201, i s : f i v e - y e a r s imprisonment; a t h r e e - y e a r p e r i o d
of s u p e r v i s e d r e l e a s e ; a f i n e of $250,000 or tw i c e the gross g a i n or
gross l o s s r e s u l t i n g from the offe n s e , whichever i s g r e a t e s t ; and a
mandatory s p e c i a l assessment of $100.
11. Defendant understands t h a t the s t a t u t o r y maximum sentence
t h a t the Court can impose f o r a v i o l a t i o n of T i t l e 52, United S t a t e s
Code, S e c t i o n s 30116, 30118, 30121, 30122, and 30109(d)(1) i s : f i v e -
y e a r s imprisonment; a t h r e e - y e a r p e r i o d of s u p e r v i s e d r e l e a s e ; a f i n e
of $250,000 or tw i c e the gross g a i n or gross l o s s r e s u l t i n g from the
offen s e , whichever i s g r e a t e s t ; and a mandatory s p e c i a l assessment of
$100 .
12. Defendant understands, t h e r e f o r e , t h a t the t o t a l maximum
sentence f o r a l l o f f e n s e s to which defendant i s p l e a d i n g g u i l t y i s :
15-years imprisonment; a t h r e e - y e a r p e r i o d of s u p e r v i s e d r e l e a s e ; a
f i n e of $750,000 or t w i c e the gross g a i n or g r o s s l o s s r e s u l t i n g from
the o f f e n s e s , whichever i s g r e a t e s t ; and a mandatory s p e c i a l
assessment of $300.
13. Defendant understands and agrees t h a t the Court: (a) may
order defendant to pay r e s t i t u t i o n i n the form of any a d d i t i o n a l
tax e s , i n t e r e s t , and p e n a l t i e s t h a t defendant owes to the United
S t a t e s based upon the count of c o n v i c t i o n and any r e l e v a n t conduct;
and (b) must o r d e r defendant to pay the c o s t s of p r o s e c u t i o n , which
may be i n a d d i t i o n to the s t a t u t o r y maximum f i n e s t a t e d above.
14. Defendant agrees t h a t any FECA c o n t r i b u t i o n refunds
d i s b u r s e d from p o l i t i c a l campaign committees r e l a t i n g to o f f e n s e s
i d e n t i f i e d i n t h i s p l e a agreement or s e n t e n c i n g b r i e f s should be
made, by c e r t i f i e d check and/or money order, to " C l e r k , United S t a t e s
D i s t r i c t Court," r e f e r e n c e the case name and c a s e number, and be
d e l i v e r e d to the F i s c a l Department of the C l e r k ' s O f f i c e f o r the
C e n t r a l D i s t r i c t of C a l i f o r n i a a t 255 E a s t Temple S t r e e t , Room 1178,
Los Angeles, C a l i f o r n i a 90012. Cf. United S t a t e s v. Gaytan, 342 F.3d
1010 (9th C i r . 2003) . Defendant agrees t h a t i n the event he r e c e i v e s
any c o n t r i b u t i o n refunds p r i o r to s e n t e n c i n g he w i l l disgorge those
amounts by c e r t i f i e d check and/or money order as s e t f o r t h above.
Defendant agrees t h a t a t the time of sen t e n c i n g , r e s t i t u t i o n should
be ordered i n an amount equal to the disgorgements r e c e i v e d by the
C l e r k of the Court i n f a v o r of the F e d e r a l E l e c t i o n Commission.
Nothing i n t h i s agreement waives or l i m i t s i n any way the a u t h o r i t y
of the F e d e r a l E l e c t i o n Commission to seek c i v i l p e n a l t i e s or other
a d m i n i s t r a t i v e remedies f o r v i o l a t i o n s of FECA pursuant to T i t l e 52,
U nited S t a t e s Code, S e c t i o n 30109(a).
15. Defendant understands t h a t s u p e r v i s e d r e l e a s e i s a p e r i o d
of time f o l l o w i n g imprisonment during which defendant w i l l be s u b j e c t
to v a r i o u s r e s t r i c t i o n s and requirements. Defendant understands t h a t
i f defendant v i o l a t e s one or more of the c o n d i t i o n s of any s u p e r v i s e d
r e l e a s e imposed, defendant may be r e t u r n e d to p r i s o n f o r a l l or p a r t
of the term of s u p e r v i s e d r e l e a s e a u t h o r i z e d by s t a t u t e f o r the
o f f e n s e t h a t r e s u l t e d i n the term of s u p e r v i s e d r e l e a s e , which could
r e s u l t i n defendant s e r v i n g a t o t a l term of imprisonment g r e a t e r than
the s t a t u t o r y maximum s t a t e d above.
16. Defendant understands t h a t , by p l e a d i n g g u i l t y , defendant
may be g i v i n g up v a l u a b l e government b e n e f i t s and v a l u a b l e c i v i c
r i g h t s , such as the r i g h t to vote, the r i g h t to p o s s e s s a f i r e a r m ,
the r i g h t to h o l d o f f i c e , and the r i g h t to s e r v e on a j u r y .
Defendant understands t h a t once the co u r t a c c e p t s defendant's g u i l t y
p l e a , i t w i l l be a f e d e r a l f e l o n y f o r defendant to p o s s e s s a f i r e a r m
or ammunition. Defendant understands t h a t the c o n v i c t i o n i n t h i s
case may a l s o s u b j e c t defendant to v a r i o u s o t h e r c o l l a t e r a l
consequences, i n c l u d i n g but not l i m i t e d to r e v o c a t i o n of probation,
p a r o l e , or s u p e r v i s e d r e l e a s e i n another case and suspension or
r e v o c a t i o n of a p r o f e s s i o n a l l i c e n s e . Defendant understands t h a t
u n a n t i c i p a t e d c o l l a t e r a l consequences w i l l not s e r v e as grounds to
withdraw defendant's g u i l t y p l e a .
17. Defendant understands t h a t , i f defendant i s not a United
S t a t e s c i t i z e n , the f e l o n y c o n v i c t i o n i n t h i s case may s u b j e c t
defendant to: removal, a l s o known as d e p o r t a t i o n , which may, under
some c i r c u m s t a n c e s , be mandatory; d e n i a l of c i t i z e n s h i p ; and d e n i a l
of admission to the Un i t e d S t a t e s i n the f u t u r e . The court cannot,
and defendant's a t t o r n e y a l s o may not be a b l e to, a d v i s e defendant
f u l l y r e g a r d i n g the immigration consequences of the f e l o n y c o n v i c t i o n
i n t h i s c a s e . Defendant understands t h a t unexpected immigration
consequences w i l l not s e r v e as grounds to withdraw defendant's g u i l t y
p l e a .
FACTUAL BASIS
18. Defendant admits t h a t defendant i s , i n f a c t , g u i l t y of the
o f f e n s e s to which defendant i s agreeing to p l e a d g u i l t y . Defendant
and the USAO agree to the statement of f a c t s a t t a c h e d as E x h i b i t B
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and agree t h a t t h i s statement of f a c t s i s s u f f i c i e n t to support a
p l e a of g u i l t y to the charges d e s c r i b e d i n t h i s agreement and to
e s t a b l i s h the Sentencing G u i d e l i n e s f a c t o r s s e t f o r t h i n paragraph 2 0
below but i s not meant to be a complete r e c i t a t i o n of a l l f a c t s
r e l e v a n t to the u n d e r l y i n g c r i m i n a l conduct or a l l f a c t s known to
e i t h e r p a r t y t h a t r e l a t e to t h a t conduct.
SENTENCING FACTORS
19. Defendant understands t h a t i n determining defendant's
sentence the Court i s r e q u i r e d to c a l c u l a t e the a p p l i c a b l e Sentencing
G u i d e l i n e s range and to c o n s i d e r t h a t range, p o s s i b l e departures
under the Sentencing G u i d e l i n e s , and the o t h e r s e n t e n c i n g f a c t o r s s e t
f o r t h i n 18 U.S.C. § 3 5 5 3 ( a ) . Defendant understands t h a t the
Sentencing G u i d e l i n e s a r e a d v i s o r y only, t h a t defendant cannot have
any e x p e c t a t i o n of r e c e i v i n g a sentence w i t h i n the c a l c u l a t e d
Sentencing G u i d e l i n e s range, and t h a t a f t e r c o n s i d e r i n g the
Sentencing G u i d e l i n e s and the other § 3553(a) f a c t o r s , the Court w i l l
be f r e e to e x e r c i s e i t s d i s c r e t i o n to impose any sentence i t f i n d s
a p p r o p r i a t e up to the maximum s e t by s t a t u t e f o r the crime of
c o n v i c t i o n .
20. Defendant and the USAO agree to the f o l l o w i n g a p p l i c a b l e
Sentencing G u i d e l i n e s f a c t o r s :
Tax
Base l e v e l ( l o s s $3.5m - $9.5m) = 24 [U.S.S.G §2T1.1(a)(1); 2T4.1]
FECA
Base o f f e n s e l e v e l = 8 [U.S.S.G. §2C1.8(a)]
Value ($250,000 - $1,500,000) +12 or 14 [U.S.S.G. §2C1.8(b)(1)]
Number of t r a n s a c t i o n s (>30) +2 [U.S.S.G. §2C1.8(b)(4)]
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FARA
The defendant and the USAO agree t h a t the Sentencing G u i d e l i n e s do not c o n t a i n a g u i d e l i n e f o r a FARA v i o l a t i o n , but c a l l f o r the use of the most analogous g u i d e l i n e . U.S.S.G. §§ 2B1.2(a) and 2X5.1. Under the f a c t s of t h i s case, the p a r t i e s agree t h a t t h e r e i s no s u f f i c i e n t l y analogous g u i d e l i n e . Thus, the 3553 f a c t o r s s h a l l c o n t r o l , except t h a t any g u i d e l i n e s and p o l i c y statement t h a t can be a p p l i e d meaningfully s h a l l remain a p p l i c a b l e . U.S.S.G. § 2X5.1.
21. Defendant and the USAO agree t h a t the FECA and tax fr a u d
o f f e n s e s do not group f o r purposes of U.S.S.G § 3D1.2(d).
22. Defendant understands t h a t the USAO r e s e r v e s the r i g h t to
argue t h a t the f o l l o w i n g a d d i t i o n a l s p e c i f i c o f f e n s e c h a r a c t e r i s t i c s ,
adjustments, and de p a r t u r e s under the Sentencing G u i d e l i n e s are
ap p r o p r i a t e :
a. unreported income d e r i v e d from c r i m i n a l a c t i v i t y
exceeding $10,000 pursuant to U.S.S.G § 2 T 1 . 1 ( b ) ( 1 ) ;
b. t a x o f f e n s e i n v o l v i n g s o p h i s t i c a t e d means pursuant to
U.S.S.G § 2 T l . l ( b ) ( 2 ) ;
c. aggregate amount of FECA v i o l a t i o n s pursuant to
U.S.S.G § 2 C 1 . 8 ( b ) ( 1 ) ;
d. f o r e i g n sourced FECA c o n t r i b u t i o n s pursuant to U.S.S.G
§ 2 C 1 . 8 ( b ) ( 2 ) ; and
e. o b s t r u c t i o n or impeding the a d m i n i s t r a t i o n of j u s t i c e
pursuant to U.S.S.G § 3C1.1.
S u b j e c t to paragraph 3 6 below, defendant and the USAO agree not to
seek, argue, or suggest i n any way, e i t h e r o r a l l y or i n w r i t i n g , t h a t
any other s p e c i f i c o f f e n s e c h a r a c t e r i s t i c s , adjustments, or
departures r e l a t i n g to the of f e n s e l e v e l be imposed.
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23. Defendant understands t h a t t h e r e i s no agreement as to
defendant's c r i m i n a l h i s t o r y or c r i m i n a l h i s t o r y category.
Defendant and the USAO r e s e r v e the r i g h t to argue f o r a sentence
o u t s i d e the s e n t e n c i n g range e s t a b l i s h e d by the Sentencing G u i d e l i n e s
based on the f a c t o r s s e t f o r t h i n 18 U.S.C. § 3 5 5 3 ( a ) ( 1 ) , ( a ) ( 2 ) ,
(a) (3) , (a) (6) , and (a) (7) .
WAIVER OF CONSTITUTIONAL RIGHTS
24. Defendant understands t h a t by p l e a d i n g g u i l t y , defendant
g i v e s up the f o l l o w i n g r i g h t s :
a. The r i g h t to p e r s i s t i n a p l e a of not g u i l t y .
b. The r i g h t to a speedy and p u b l i c t r i a l by j u r y .
c. The r i g h t to be r e p r e s e n t e d by counsel -- and i f
n e c e s s a r y have the c o u r t appoint counsel -- a t t r i a l . Defendant
understands, however, t h a t , defendant r e t a i n s the r i g h t to be
re p r e s e n t e d by c o u n s e l -- and i f n e c e s s a r y have the court appoint
counsel -- a t ever y o t h e r stage of the proceeding.
d. The r i g h t to be presumed innocent and to have the
burden of proof p l a c e d on the government to prove defendant g u i l t y
beyond a reasonable doubt.
e. The r i g h t to confront and cross-examine w i t n e s s e s
a g a i n s t defendant.
f. The r i g h t to t e s t i f y and to p r e s e n t evidence i n
o p p o s i t i o n to the charges, i n c l u d i n g the r i g h t to compel the
attendance of w i t n e s s e s to t e s t i f y .
g. The r i g h t not to be compelled to t e s t i f y , and, i f
defendant chose not to t e s t i f y or p r e s e n t evidence, to have t h a t
c h o i c e not be used a g a i n s t defendant.
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h. Any and a l l r i g h t s to pursue any a f f i r m a t i v e defenses,
Fourth Amendment or F i f t h Amendment c l a i m s , and oth e r p r e t r i a l
motions t h a t have been f i l e d or could be f i l e d .
WAIVER OF STATUTE OF LIMITATIONS
25. Having been f u l l y a d v i s e d by defendant's a t t o r n e y regarding
a p p l i c a t i o n of the s t a t u t e of l i m i t a t i o n s to the o f f e n s e s to which
defendant i s p l e a d i n g g u i l t y , defendant hereby knowingly,
v o l u n t a r i l y , and i n t e l l i g e n t l y waives, r e l i n q u i s h e s , and g i v e s up:
(a) any r i g h t t h a t defendant might have not to be prosecuted f o r the
o f f e n s e s to which defendant i s p l e a d i n g g u i l t y because of the
e x p i r a t i o n of the s t a t u t e of l i m i t a t i o n s f o r those o f f e n s e s p r i o r to
the f i l i n g of the i n f o r m a t i o n a l l e g i n g those o f f e n s e s ; and (b) any
defense, c l a i m , or argument defendant could r a i s e or a s s e r t t h a t
p r o s e c u t i o n of the o f f e n s e s to which defendant i s p l e a d i n g g u i l t y i s
ba r r e d by the e x p i r a t i o n of the a p p l i c a b l e s t a t u t e of l i m i t a t i o n s ,
p r e -indictment delay, or any speedy t r i a l v i o l a t i o n .
WAIVER OF VENUE
26. Having been f u l l y a d v i s e d by defendant's a t t o r n e y regarding
the requirements of venue w i t h r e s p e c t to the o f f e n s e s to which
defendant i s p l e a d i n g g u i l t y , to the extent the o f f e n s e s to which
defendant i s p l e a d i n g g u i l t y were committed, begun, or completed
o u t s i d e the C e n t r a l D i s t r i c t of C a l i f o r n i a , defendant knowingly,
v o l u n t a r i l y , and i n t e l l i g e n t l y waives, r e l i n q u i s h e s , and g i v e s up:
(a) any r i g h t t h a t defendant might have to be pro s e c u t e d only i n the
d i s t r i c t where the o f f e n s e s to which defendant i s p l e a d i n g g u i l t y
were committed, begun, or completed; and (b) any defense, c l a i m , or
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argument defendant c o u l d r a i s e or a s s e r t based upon l a c k of venue
with r e s p e c t to the o f f e n s e s to which defendant i s p l e a d i n g g u i l t y .
WAIVER OF APPEAL OF CONVICTION
27. Defendant understands t h a t , w i t h the e x c e p t i o n of an appeal
based on a c l a i m t h a t defendant's g u i l t y p l e a was i n v o l u n t a r y , by
p l e a d i n g g u i l t y , defendant i s waiving and g i v i n g up any r i g h t to
appeal defendant's c o n v i c t i o n s on the o f f e n s e s to which defendant i s
p l e a d i n g g u i l t y . Defendant understands t h a t t h i s waiver i n c l u d e s any
and a l l c l a i m s t h a t the statement of f a c t s p rovided h e r e i n i s
i n s u f f i c i e n t to support defendant's p l e a of g u i l t y .
LIMITED MUTUAL WAIVER OF APPEAL OF SENTENCE
28. Defendant agrees t h a t , provided the Court imposes a t o t a l
term of imprisonment on a l l counts of c o n v i c t i o n w i t h i n or below the
range corresponding to an o f f e n s e l e v e l of 32 and the c r i m i n a l
h i s t o r y category c a l c u l a t e d by the Court, defendant g i v e s up the
r i g h t to appeal a l l of the f o l l o w i n g : (a) the procedures and
c a l c u l a t i o n s used to determine and impose any p o r t i o n of the
sentence; (b) the term of imprisonment imposed by the Court; (c) the
f i n e imposed by the c o u r t , provided i t i s w i t h i n the s t a t u t o r y
maximum; (d) to the e x t e n t p e r m i t t e d by law, the c o n s t i t u t i o n a l i t y or
l e g a l i t y of defendant's sentence, provided i t i s w i t h i n the s t a t u t o r y
maximum; (e) the term of pro b a t i o n or s u p e r v i s e d r e l e a s e imposed by
the Court, p r o v i d e d i t i s w i t h i n the s t a t u t o r y maximum; and (f) any
of the f o l l o w i n g c o n d i t i o n s of pro b a t i o n or s u p e r v i s e d r e l e a s e
imposed by the Court: the c o n d i t i o n s s e t f o r t h i n General Order 18-10
of t h i s Court; the drug t e s t i n g c o n d i t i o n s mandated by 18 U.S.C.
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§§ 3563(a)(5) and 3583(d); and the a l c o h o l and drug use c o n d i t i o n s
a u t h o r i z e d by 18 U.S.C. § 3 5 6 3 ( b ) ( 7 ) .
29. The USAO agrees t h a t , provided t h a t the Court imposes a
term of imprisonment w i t h i n the s t a t u t o r y maximum, to giv e up i t s
r i g h t to appeal any p o r t i o n of the sentence, w i t h the exception t h a t
the USAO r e s e r v e s the r i g h t to appeal the amount of r e s t i t u t i o n
ordered.
RESULT OF WITHDRAWAL OF GUILTY PLEA
30. Defendant agrees t h a t i f , a f t e r e n t e r i n g g u i l t y p l e a s
pursuant to t h i s agreement, defendant seeks to withdraw and succeeds
i n withdrawing defendant's g u i l t y p l e a s on any b a s i s other than a
c l a i m and f i n d i n g t h a t e n t r y i n t o t h i s p l e a agreement was
in v o l u n t a r y , then (a) the USAO w i l l be r e l i e v e d of a l l of i t s
o b l i g a t i o n s under t h i s agreement; and (b) should the USAO choose to
pursue any charge t h a t was e i t h e r d i s m i s s e d or not f i l e d as a r e s u l t
of t h i s agreement, then ( i ) any a p p l i c a b l e s t a t u t e of l i m i t a t i o n s
w i l l be t o l l e d between the date of defendant's s i g n i n g of t h i s
agreement and the f i l i n g commencing any such a c t i o n ; and
( i i ) defendant waives and g i v e s up a l l defenses based on the s t a t u t e
of l i m i t a t i o n s , any c l a i m of pre-indictment delay, o r any speedy
t r i a l c l a i m w i t h r e s p e c t to any such a c t i o n , except to the extent
t h a t such defenses e x i s t e d as of the date of defendant's s i g n i n g t h i s
agreement.
RESULT OF VACATUR, REVERSAL OR SET-ASIDE
31. Defendant agrees t h a t i f any count of c o n v i c t i o n i s
vacated, r e v e r s e d , or s e t a s i d e , the USAO may: (a) ask the Court to
resentence defendant on any remaining count of c o n v i c t i o n , w i t h both
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the USAO and defendant being r e l e a s e d from any s t i p u l a t i o n s r egarding
se n t e n c i n g c o n t a i n e d i n t h i s agreement, (b) ask the Court to v o i d the
e n t i r e p l e a agreement and v a c a t e defendant's g u i l t y p l e a on any
remaining count of c o n v i c t i o n , w i t h both the USAO and defendant being
r e l e a s e d from a l l t h e i r o b l i g a t i o n s under t h i s agreement, or
(c) l e a v e defendant's remaining c o n v i c t i o n , sentence, and p l e a
agreement i n t a c t . Defendant agrees t h a t the c h o i c e among these t h r e e
options r e s t s i n the e x c l u s i v e d i s c r e t i o n of the USAO.
EFFECTIVE DATE OF AGREEMENT
32. T h i s agreement i s e f f e c t i v e upon s i g n a t u r e and ex e c u t i o n of
a l l r e q u i r e d c e r t i f i c a t i o n s by defendant, defendant's counsel, and an
A s s i s t a n t United S t a t e s Attorney.
BREACH OF AGREEMENT
33. Defendant agrees t h a t i f defendant, a t any time a f t e r the
s i g n a t u r e of t h i s agreement and exec u t i o n of a l l r e q u i r e d
c e r t i f i c a t i o n s by defendant, defendant's c o u n s e l , and an A s s i s t a n t
U nited S t a t e s Attorney, knowingly v i o l a t e s or f a i l s to perform any of
defendant's o b l i g a t i o n s under t h i s agreement ("a b r e a c h " ) , the USAO
may d e c l a r e t h i s agreement breached. A l l of defendant's o b l i g a t i o n s
are m a t e r i a l , a s i n g l e breach of t h i s agreement i s s u f f i c i e n t f o r the
USAO to d e c l a r e a breach, and defendant s h a l l not be deemed to have
cured a breach without the express agreement of the USAO i n w r i t i n g .
I f the USAO d e c l a r e s t h i s agreement breached, and the Court f i n d s
such a breach to have occurred, then: (a) i f defendant has p r e v i o u s l y
entered a g u i l t y p l e a pursuant to t h i s agreement, defendant w i l l not
be a b l e to withdraw the g u i l t y p l e a , and (b) the USAO w i l l be
r e l i e v e d of a l l i t s o b l i g a t i o n s under t h i s agreement.
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34. F o l l o w i n g the Court's f i n d i n g of a knowing breach of t h i s
agreement by defendant, should the USAO choose to pursue any charge
t h a t was e i t h e r d i s m i s s e d or not f i l e d as a r e s u l t of t h i s agreement,
then:
a. Defendant agrees t h a t any a p p l i c a b l e s t a t u t e of
l i m i t a t i o n s i s t o l l e d between the date of defendant's s i g n i n g of t h i s
agreement and the f i l i n g commencing any such a c t i o n .
b. Defendant waives and g i v e s up a l l defenses based on
the s t a t u t e of l i m i t a t i o n s , any c l a i m of p r e - i n d i c t m e n t delay, or any
speedy t r i a l c l a i m w i t h r e s p e c t to any such a c t i o n , except to the
extent t h a t such defenses e x i s t e d as of the date of defendant's
s i g n i n g t h i s agreement.
c. Defendant agrees t h a t : ( i ) any statements made by
defendant, under oath, a t the g u i l t y p l e a h e a r i n g ( i f such a h e a r i n g
o c c u r r e d p r i o r t o the b r e a c h ) ; ( i i ) the agreed to f a c t u a l b a s i s
statement i n t h i s agreement; and ( i i i ) any evidence d e r i v e d from such
statements, s h a l l be a d m i s s i b l e a g a i n s t defendant i n any such a c t i o n
a g a i n s t defendant, and defendant waives and g i v e s up any c l a i m under
the United S t a t e s C o n s t i t u t i o n , any s t a t u t e , Rule 410 of the F e d e r a l
Rules of Evidence, Rule 1 1 ( f ) of the F e d e r a l Rules of C r i m i n a l
Procedure, or any o t h e r f e d e r a l r u l e , t h a t the statements or any
evidence d e r i v e d from the statements should be suppressed or are
i n a d m i s s i b l e .
COURT AND UNITED STATES PROBATION AND PRETRIAL SERVICES
OFFICE NOT PARTIES
35. Defendant understands t h a t the Court and the United S t a t e s
Probation and P r e t r i a l S e r v i c e s O f f i c e a r e not p a r t i e s to t h i s
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agreement and need not accept any of the USAO's se n t e n c i n g
recommendations or the p a r t i e s ' agreements to f a c t s or sentencing
f a c t o r s .
36. Defendant understands t h a t both defendant and the USAO are
f r e e to: (a) supplement the f a c t s by s u p p l y i n g r e l e v a n t i n f o r m a t i o n
to the United S t a t e s P r o bation and P r e t r i a l S e r v i c e s O f f i c e and the
Court, (b) c o r r e c t any and a l l f a c t u a l misstatements r e l a t i n g to the
Court's Sentencing G u i d e l i n e s c a l c u l a t i o n s and de t e r m i n a t i o n of
sentence, and (c) argue on appeal and c o l l a t e r a l review t h a t the
Court's Sentencing G u i d e l i n e s c a l c u l a t i o n s and the sentence i t
chooses to impose a r e not e r r o r , although each p a r t y agrees to
maintain i t s view t h a t the c a l c u l a t i o n s i n paragraph 20 a re
c o n s i s t e n t w i t h the f a c t s of t h i s c a s e . While t h i s paragraph permits
both the USAO and defendant to submit f u l l and complete f a c t u a l
i n f o r m a t i o n to the Uni t e d S t a t e s Probation and P r e t r i a l S e r v i c e s
O f f i c e and the Court, even i f t h a t f a c t u a l i n f o r m a t i o n may be viewed
as i n c o n s i s t e n t w i t h the f a c t s agreed to i n t h i s agreement, t h i s
paragraph does not a f f e c t defendant's and the USAO's o b l i g a t i o n s not
to c o n t e s t the f a c t s agreed to i n t h i s agreement.
37. Defendant understands t h a t even i f the Court ignores any
sentencing recommendation, f i n d s f a c t s or re a c h e s c o n c l u s i o n s
d i f f e r e n t from those agreed to, and/or imposes any sentence up to the
maximum e s t a b l i s h e d by s t a t u t e , defendant cannot, f o r that reason,
withdraw defendant's g u i l t y p l e a s , and defendant w i l l remain bound to
f u l f i l l a l l defendant's o b l i g a t i o n s under t h i s agreement. Defendant
understands t h a t no one -- not the pro s e c u t o r , defendant's attorney,
or the Court -- can make a binding p r e d i c t i o n or promise r e g a r d i n g
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the sentence defendant w i l l r e c e i v e , except t h a t i t w i l l be w i t h i n
the s t a t u t o r y maximum.
NO ADDITIONAL AGREEMENTS
38. Defendant understands t h a t , except as s e t f o r t h h e r e i n ,
there a r e no promises, understandings, or agreements between the USAO
and defendant or defendant's attorney, and t h a t no a d d i t i o n a l
promise, understanding, or agreement may be e n t e r e d i n t o u n l e s s i n a
w r i t i n g signed by a l l p a r t i e s or on the r e c o r d i n c o u r t .
PLEA AGREEMENT PART OF THE GUILTY PLEA HEARING
39. The p a r t i e s agree t h a t t h i s agreement w i l l be c o n s i d e r e d
p a r t of the r e c o r d of defendant's g u i l t y p l e a h e a r i n g as i f the
e n t i r e agreement had been read i n t o the r e c o r d of the proceeding.
AGREED AND ACCEPTED
UNITED STATES ATTORNEY'S OFFICE FOR THE CENTRAL DISTRICT OF CALIFORNIA
NICOLA United /Stafe*e"
^ANTEL J . O'BRIEI A s s i s t a n t U n i t e d S t a t e s Attorney
IMAAD SHAH: ZUBE-RI Def enda]
•• i i
8/ / <7 Date
\ ' t i 2- r 1 Q
Date
IS •7l< THOMAS/. P . O'BRIEN Date Attorney for/Defjendant Imaad Shah; Zuberfi
y l \ If I ' //
I f I ,. / } / •
3z: EVAN J . DAVIS / - Date Attorney for\Defendant Imaad Shah Z u b e r i
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CERTIFICATION OF DEFENDANT
I have rea d t h i s agreement i n i t s e n t i r e t y . I have had enough
time to review and c o n s i d e r t h i s agreement, and I have c a r e f u l l y and
thoroughly d i s c u s s e d every p a r t of i t w i t h my a t t o r n e y . I understand
the terms of t h i s agreement, and I v o l u n t a r i l y agree to those terms.
I have d i s c u s s e d the evidence w i t h my a t t o r n e y , and my at t o r n e y has
advised me of my r i g h t s , of p o s s i b l e p r e t r i a l motions t h a t might be
f i l e d , of p o s s i b l e defenses t h a t might be a s s e r t e d e i t h e r p r i o r to or
at t r i a l , of the s e n t e n c i n g f a c t o r s s e t f o r t h i n 18 U.S.C. § 3553(a),
of r e l e v a n t Sentencing G u i d e l i n e s p r o v i s i o n s , and of the consequences
of e n t e r i n g i n t o t h i s agreement. No promises, inducements, or
r e p r e s e n t a t i o n s of any k i n d have been made to me oth e r than those
contained i n t h i s agreement. No one has th r e a t e n e d or f o r c e d me i n
any way to e n t e r i n t o t h i s agreement. I am s a t i s f i e d w ith the
r e p r e s e n t a t i o n of my a t t o r n e y i n t h i s matter, and I am pl e a d i n g
g u i l t y because I am g u i l t y of the charges and wish to take advantage
of the promises s e t f o r t h i n t h i s agreement, and not f o r any other
reason.
— v { • < i \o\/-> I ZrM ( IMAAD SHAH ZUBERI ' . Date 1 I Defendant
CERTIFICATION OF DEFENDANT'S ATTORNEY
We are Imaad Shah Zuberi's a t t o r n e y s . We have c a r e f u l l y and
thoroughly d i s c u s s e d every p a r t of t h i s agreement w i t h our c l i e n t .
F u r t h e r , we have f u l l y a d v i s e d our c l i e n t of h i s r i g h t s , of p o s s i b l e
p r e t r i a l motions t h a t might be f i l e d , of p o s s i b l e defenses t h a t might
be a s s e r t e d e i t h e r p r i o r to or a t t r i a l , of the se n t e n c i n g f a c t o r s
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s e t f o r t h i n 18 U.S.C. § 3553(a), of r e l e v a n t Sentencing G u i d e l i n e s
p r o v i s i o n s , and of the consequences of e n t e r i n g i n t o t h i s agreement.
To our knowledge: no promises, inducements, or r e p r e s e n t a t i o n s of any
kin d have been made to our c l i e n t other than those contained i n t h i s
agreement; no one has thr e a t e n e d or f o r c e d our c l i e n t i n any way to
enter i n t o t h i s agreement; our c l i e n t ' s d e c i s i o n to en t e r i n t o t h i s
agreement i s an informed and v o l u n t a r y one; and the f a c t u a l b a s i s s e t
f o r t h i n t h i s agreement i s s u f f i c i e n t to support our c l i e n t ' s e n t r y
of a g u i l t y p l e a pursuant to t h i s agreement.
THOMAS P. O'BRIEN Date Attorney f o r Defendant Imaad Shah Z u b e r i ^
EVAN J . DAVIS •/ " Date Attorney f o r Defendant Imaad Shah Zuberi
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EXHIBIT A
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8 UNITED STATES DISTRICT COURT
9 FOR THE CENTRAL DISTRICT OF CALIFORNIA
10 UNITED STATES OF AMERICA, No. CR
11 P l a i n t i f f , I N F O R M A T I O N
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v.
IMAAD SHAH ZUBERI,
Defendant.
[22 U.S.C. §§ 612, 6 1 8 ( a ) ( 2 ) : V i o l a t i o n s of the F o r e i g n Agents R e g i s t r a t i o n A c t ; 26 U.S.C. § 7201: Tax E v a s i o n ; 52 U.S.C. §§ 30116, 30118, 30121, 30122, 3 0 1 0 9 ( d ) ( 1 ) : F o r e i g n , Conduit, and Other I l l e g a l Campaign C o n t r i b u t i o n s ]
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17 The U n i t e d S t a t e s A t t o r n e y c h a r g e s :
18 INTRODUCTORY ALLEGATIONS
19 A. Defendant's P o l i t i c a l & B u s i n e s s A c t i v i t i e s
20 1. From i n or about 2010 through t h e p r e s e n t , defendant IMAAD
21 SHAH ZUBERI o p e r a t e d an i n f o r m a l e n t i t y named Avenue V e n t u r e s , a
22 v e n t u r e c a p i t a l f i r m . As p a r t of h i s o p e r a t i o n o f Avenue V e n t u r e s ,
23 defendant ZUBERI t o l d f o r e i g n n a t i o n a l s , r e p r e s e n t a t i v e s of f o r e i g n
24 governments, and o t h e r s t h a t he c o u l d implement changes t o U n i t e d
25 // 26 // 27 // 28 DOB
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S t a t e s f o r e i g n p o l i c y by w i e l d i n g h i s i n f l u e n c e i n Washington, D.C.
Defendant ZUBERI t y p i c a l l y a d v e r t i s e d t h e s e p o l i t i c a l p o l i c y changes
as d e v i c e s t o c o n s t r u c t p r o f i t a b l e b u s i n e s s and i n v e s t m e n t
o p p o r t u n i t i e s f o r h i s c l i e n t s as w e l l as h i m s e l f .
2. Defendant ZUBERI and Avenue V e n t u r e s o b t a i n e d funds from
t h i s b u s i n e s s p l a n i n m u l t i p l e ways. Some of defendant ZUBERI's
c l i e n t s agreed t o pay him c o n s u l t i n g or r e t a i n e r f e e s . Other c l i e n t s
agreed t o t r a n s f e r money t o defendant ZUBERI t o i n v e s t i n s p e c i f i c
b u s i n e s s v e n t u r e s f o r the b e n e f i t o f t h e s e c l i e n t s . Other c l i e n t s
agreed t o t r a n s f e r money t o defendant ZUBERI t o fund p o l i t i c a l
campaign c o n t r i b u t i o n s i n an e f f o r t t o c r e a t e b u s i n e s s o p p o r t u n i t i e s
f o r t h e m s e l v e s .
3. Defendant ZUBERI used a p o r t i o n of t h e s e funds t o donate
c o n t r i b u t i o n s t o t h e p o l i t i c a l campaigns o f f e d e r a l and s t a t e
o f f i c i a l s . Between on or about September 1, 2011 and on or about
F e b r u a r y 24, 2017, t h e day when defendant ZUBERI became aware of t h e
U.S. Government's c r i m i n a l i n v e s t i g a t i o n , defendant ZUBERI made over
$3,000,000 i n c o n t r i b u t i o n s , i n e i t h e r h i s own name or t h a t of h i s
spouse, t o v a r i o u s Democratic and R e p u b l i c a n f e d e r a l e l e c t i o n
campaigns, and P r e s i d e n t i a l I n a u g u r a t i o n Committees. Between on or
about September 1, 2011 and on or about November 7, 2016, defendant
ZUBERI a l s o "bundled" over a m i l l i o n d o l l a r s of c o n t r i b u t i o n s from
v a r i o u s t h i r d p a r t i e s as a f u n d r a i s e r f o r campaigns f o r P r e s i d e n t i a l
e l e c t i o n s and s e v e r a l o t h e r c a n d i d a t e s f o r e l e c t e d o f f i c e .
4. Through t h e s e p o l i t i c a l c o n t r i b u t i o n s , defendant ZUBERI
o b t a i n e d a c c e s s t o h i g h - l e v e l U n i t e d S t a t e s o f f i c i a l s . Defendant
ZUBERI attempted t o persuade t h e s e p u b l i c o f f i c i a l s t o modify
e x i s t i n g U n i t e d S t a t e s p o l i c i e s and t a k e o t h e r a c t i o n s on b e h a l f o f ,
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and f a v o r a b l e t o , defendant ZUBERI's c l i e n t s . I n an e f f o r t t o
c o n v i n c e h i s c l i e n t s of h i s a b i l i t y t o w i e l d i n f l u e n c e , defendant
ZUBERI b r o a d c a s t t h i s a c c e s s by d i s t r i b u t i n g photographs of defendant
ZUBERI meeting w i t h h i g h - r a n k i n g e l e c t e d o f f i c i a l s and d e s c r i b i n g
c o n v e r s a t i o n s i n which t h e y p u r p o r t e d l y d i s c u s s e d p u b l i c p o l i c i e s of
i n t e r n a t i o n a l importance.
5. Defendant ZUBERI used a p o r t i o n of the funds from h i s
b u s i n e s s p l a n t o h i r e l o b b y i s t s and p u b l i c r e l a t i o n s c o n s u l t a n t s who
a s s i s t e d h i s e f f o r t s t o i n f l u e n c e and t r a n s f o r m p u b l i c p o l i c y and
o p i n i o n i n the U n i t e d S t a t e s .
6. Defendant ZUBERI's campaign c o n t r i b u t i o n s , p u b l i c r e l a t i o n s
work, and l o b b y i n g e f f o r t s g e n e r a t e d m a r g i n a l r e s u l t s . Some U n i t e d
S t a t e s o f f i c i a l s , however, were w i l l i n g t o adopt defendant ZUBERI's
r e q u e s t e d p o l i t i c a l p o s i t i o n s or o t h e r w i s e accommodate defendant
ZUBERI's w i s h e s .
7. Defendant ZUBERI's b u s i n e s s v e n t u r e s were l a r g e l y
u n s u c c e s s f u l f o r h i s c l i e n t s . Indeed, most of defendant ZUBERI's
c l i e n t s s u f f e r e d s i g n i f i c a n t monetary l o s s e s stemming from t h e i r
b u s i n e s s a s s o c i a t i o n s w i t h defendant ZUBERI. Many of the l o b b y i s t s ,
p u b l i c r e l a t i o n s c o n s u l t a n t s , and o t h e r s u b c o n t r a c t o r s a l s o s u f f e r e d
l o s s e s when defendant ZUBERI r e f u s e d t o pay them th e agreed-upon f e e s
f o r s e r v i c e s t h e y rendered.
8. I n c o n t r a s t t o t h e l o s s e s s u f f e r e d by h i s c l i e n t s and
s u b c o n t r a c t o r s , defendant ZUBERI g a i n e d s u b s t a n t i a l w e a l t h . T h i s
newfound w e a l t h was almost e n t i r e l y o b t a i n e d as a r e s u l t of (a)
f r a u d u l e n t r e p r e s e n t a t i o n s c o n c e r n i n g defendant ZUBERI's e d u c a t i o n ,
e x p e r i e n c e , f a m i l y w e a l t h , b u s i n e s s , employees, i n v e s t m e n t s u c c e s s e s ,
f i n a n c i a l c o n d i t i o n , p o l i t i c a l power, and the d i s p o s i t i o n of c l i e n t
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funds, and (b) t h e o u t r i g h t c o n v e r s i o n of c l i e n t money f o r defendant
ZUBERI's own p e r s o n a l b e n e f i t .
B. The F o r e i g n Agents R e g i s t r a t i o n A c t
9. The F o r e i g n Agents R e g i s t r a t i o n A c t ("FARA") was, and i s , a
d i s c l o s u r e s t a t u t e t h a t r e q u i r e s any person a c t i n g as "an agent of a
f o r e i g n p r i n c i p a l " t o r e g i s t e r w i t h t h e A t t o r n e y G e n e r a l of t h e
U n i t e d S t a t e s i n c o n n e c t i o n w i t h c e r t a i n t y p e s of a c t i v i t i e s , such as
p o l i t i c a l or p u b l i c r e l a t i o n s e f f o r t s on b e h a l f of t h e f o r e i g n
p r i n c i p a l . Such r e g i s t r a t i o n s a r e made to the U.S. Department o f
J u s t i c e , N a t i o n a l S e c u r i t y D i v i s i o n ' s FARA U n i t . I t i s a crime t o
knowingly and w i l l f u l l y f a i l t o r e g i s t e r , and t o make f a l s e and
m i s l e a d i n g s t a t e m e n t s or m a t e r i a l o m i s s i o n s i n documents s u b m i t t e d t o
the FARA U n i t under the law's p r o v i s i o n s .
10. One purpose o f FARA i s t o c r e a t e t r a n s p a r e n c y r e g a r d i n g t h e
e x i s t e n c e and e x t e n t of t h e r e l a t i o n s h i p between i n d i v i d u a l s
o p e r a t i n g i n t h e U n i t e d S t a t e s and t h e i r f o r e i g n p r i n c i p a l s . Proper
r e g i s t r a t i o n under the s t a t u t e a l l o w s t he U.S. government and t h e
American people t o e v a l u a t e t he s t a t e m e n t s and a c t i v i t i e s of
i n d i v i d u a l s who a r e s e r v i n g as agents of f o r e i g n p r i n c i p a l s . Among
ot h e r t h i n g s , a FARA r e g i s t r a t i o n r e v e a l s t h e i d e n t i t y of t h e f o r e i g n
p r i n c i p a l on whose b e h a l f a r e g i s t r a n t performs s e r v i c e s , t h e typ e o f
s e r v i c e s the r e g i s t r a n t p r o v i d e s the f o r e i g n p r i n c i p a l , t he sour c e
and amount of compensation the r e g i s t r a n t r e c e i v e s from t h e f o r e i g n
p r i n c i p a l , and p o l i t i c a l campaign c o n t r i b u t i o n s made by t h e
r e g i s t r a n t w h i l e t he r e g i s t r a n t was a c t i n g as an agent o f t h e f o r e i g n
p r i n c i p a l . The Government of S r i Lanka, a c o u n t r y i n South A s i a ,
was, and i s , a f o r e i g n p r i n c i p a l under FARA.
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C. The F e d e r a l E l e c t i o n Campaign A c t
11. The F e d e r a l E l e c t i o n Campaign A c t ("FECA") governed, and
governs, c o n t r i b u t i o n s t o c a n d i d a t e s , t h e i r campaign committees, and
p o l i t i c a l committees i n U n i t e d S t a t e s e l e c t i o n s .
12. FECA r e q u i r e s t h a t f e d e r a l c a n d i d a t e s f o r p u b l i c o f f i c e
d e s i g n a t e a p r i n c i p a l campaign committee t o s o l i c i t , a c c e p t , and
r e c e i v e c o n t r i b u t i o n s and t o make e x p e n d i t u r e s f o r t h e campaign.
FECA a l s o p e r m i t s the e s t a b l i s h m e n t of o t h e r p o l i t i c a l committees,
such as n a t i o n a l p a r t y committees, s t a t e p a r t y committees, and
p o l i t i c a l a c t i o n committees, which can s o l i c i t , a c c e p t , and r e c e i v e
c o n t r i b u t i o n s and make e x p e n d i t u r e s f o r c a n d i d a t e s and p o l i t i c a l
p a r t i e s .
13. FECA r e q u i r e s t h a t each t r e a s u r e r of a p o l i t i c a l committee
t h a t p a r t i c i p a t e s i n f e d e r a l e l e c t i o n s f i l e p e r i o d i c r e p o r t s t o t h e
F e d e r a l E l e c t i o n Commission ("FEC") i d e n t i f y i n g c o n t r i b u t o r s by name,
a d d r e s s , and o c c u p a t i o n , and t h e c o n t r i b u t i o n s p r o v i d e d by t h o s e
c o n t r i b u t o r s by date and amount.
14. FECA p r o h i b i t s :
a. C o n t r i b u t i o n s from f o r e i g n n a t i o n a l s , meaning
i n d i v i d u a l s who a r e n e i t h e r c i t i z e n s o f t h e U n i t e d S t a t e s nor
permanent r e s i d e n t s of t h e U n i t e d S t a t e s , d i r e c t l y or through any
ot h e r person, i n c o n n e c t i o n w i t h any f e d e r a l , s t a t e , or l o c a l
e l e c t i o n or any p r e s i d e n t i a l i n a u g u r a l ;
b. C o n t r i b u t i o n s from f o r e i g n or domestic c o r p o r a t i o n s ,
p a r t n e r s h i p s , a s s o c i a t i o n s , or o r g a n i z a t i o n s i n c o n n e c t i o n w i t h any
f e d e r a l e l e c t i o n f o r f e d e r a l o f f i c e ;
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c. Conduit c o n t r i b u t i o n s , c o n t r i b u t i o n s i n the name of
another, or u s i n g one name to e f f e c t a c o n t r i b u t i o n by another i n
c o n n e c t i o n w i t h any f e d e r a l e l e c t i o n f o r f e d e r a l o f f i c e ;
d. C o n t r i b u t i o n s from any person ( i ) i n e x c e s s of $2,500
d u r i n g the 2012 e l e c t i o n c y c l e , $2,600 d u r i n g the 2014 e l e c t i o n
c y c l e , and $2,700 d u r i n g the 2016 e l e c t i o n c y c l e t o any c a n d i d a t e ' s
a u t h o r i z e d p o l i t i c a l committee per f e d e r a l e l e c t i o n ; ( i i ) i n e x c e s s
of $30,800 d u r i n g the 2012 e l e c t i o n c y c l e , $32,400 d u r i n g the 2014
e l e c t i o n c y c l e , and $33,400 d u r i n g t h e 2016 e l e c t i o n c y c l e p e r y e a r
t o any n a t i o n a l p a r t y committee; ( i i i ) i n e x c e s s of $10,000 p er y e a r
t o any s t a t e , d i s t r i c t , and l o c a l p a r t y committee, and ( i v ) i n e x c e s s
of $5,000 per y e a r t o any o t h e r p o l i t i c a l committee.
D. I n d i v i d u a l s , E n t i t i e s , & N o n - E x i s t e n t Person
15. Person A was a f o r e i g n n a t i o n a l , namely, a c i t i z e n o f both
Saudi A r a b i a and the U n i t e d Kingdom who r e s i d e d i n the U n i t e d Kingdom
and S w i t z e r l a n d . Person A was t h e chairman o f Company A, a f o r e i g n
c o r p o r a t i o n h e a d q u a r t e r e d i n Riy a d h , Saudi A r a b i a . Person A's
spouse, Person B, was a c i t i z e n of t h e U n i t e d S t a t e s .
16. Person C was a c i t i z e n o f both Lebanon and the U n i t e d
S t a t e s , r e s i d i n g i n Kuwait. Person C was the C h i e f E x e c u t i v e O f f i c e r
o f Company B, a f o r e i g n c o r p o r a t i o n h e a d q u a r t e r e d i n Kuwait C i t y ,
K u w a i t . Person C s spouse, Person D, was a f o r e i g n n a t i o n a l , namely,
a c i t i z e n and r e s i d e n t o f Kuwait.
17. Person E was a f o r e i g n n a t i o n a l , namely, a c i t i z e n of
Venezuela who r e s i d e d i n Saudi A r a b i a and was employed by Company A.
Person E's spouse, Person F, was a f o r e i g n n a t i o n a l , namely, a
Venezuelan c i t i z e n r e s i d i n g i n Saudi A r a b i a .
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18. Person G was a c i t i z e n o f the U n i t e d S t a t e s . Person G's
spouse, Person H, was a f o r e i g n n a t i o n a l , namely, a c i t i z e n of
B r a z i l .
19. Person I was a n o n - e x i s t e n t person c r e a t e d by defendant
ZUBERI t o a i d i n h i s schemes.
20. U.S. C a r e s , LLC ("U.S. C a r e s " ) , a l s o known as America
C a r e s , was a Delaware l i m i t e d l i a b i l i t y c o r p o r a t i o n , c r e a t e d a t the
d i r e c t i o n of defendant ZUBERI on or about December 13, 2013. On or
about November 24, 2014, defendant ZUBERI s u b m i t t e d an a p p l i c a t i o n on
b e h a l f o f U.S. Cares f o r a l i c e n s e from the O f f i c e of F o r e i g n A s s e t s
C o n t r o l ("OFAC") t o a l l o w U.S. Cares t o e x p o r t h u m a n i t a r i a n i t e m s ,
i n c l u d i n g food, medicine, and m e d i c a l s u p p l i e s , t o I r a n .
2 1 . Person J was a f o r e i g n n a t i o n a l , namely, a c i t i z e n o f
B a h r a i n , e x e c u t i v e of Company C, and Chairman of Company D, both
f o r e i g n e n t i t i e s . I n or about August 2013, Company D i n v e s t e d i n
U.S. C a r e s .
22. Person K was a f o r e i g n n a t i o n a l , namely, a c i t i z e n o f t h e
U n i t e d Arab E m i r a t e s and Singapore and Managing P a r t n e r o f Company E,
a f o r e i g n e n t i t y . I n or about August 2013, Company E i n v e s t e d i n
U.S. C a r e s .
23. Person L was a f o r e i g n n a t i o n a l , a c i t i z e n of U n i t e d Arab
E m i r a t e s and C h i e f E x e c u t i v e O f f i c e r of Company F, a f o r e i g n e n t i t y .
I n or about October 2013, Company F i n v e s t e d i n U.S. Ca r e s . On or
about A p r i l 29, 2014, OFAC d e s i g n a t e d both Person L and Company F as
S p e c i a l l y D e signated N a t i o n a l s . T h i s d e s i g n a t i o n p r o h i b i t e d U n i t e d
S t a t e s persons from engaging i n b u s i n e s s w i t h , b l o c k e d the a s s e t s o f ,
and imposed o t h e r r e s t r i c t i o n s a g a i n s t Person L and Company F. I n or
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about November 2014, Company F s o l d i t s s h a r e s i n U.S. Cares t o
Company D.
24. Person M was a f o r e i g n n a t i o n a l , namely, a c i t i z e n o f
Kuwait and p r i n c i p a l of Company G, a f o r e i g n e n t i t y . I n or about
December 2013, Company G i n v e s t e d i n U.S. C a r e s .
25. Person N was a f o r e i g n n a t i o n a l , namely, a c i t i z e n o f I n d i a
and p r i n c i p a l of Company H, a f o r e i g n e n t i t y . I n or about December
2013, Company H i n v e s t e d i n U.S. C a r e s .
26. From on or about A p r i l 9, 2009 through J u l y 14, 2014, WR
Group was an i n f o r m a l e n t i t y . On or about A p r i l 19, 2009, Person 0
opened a Bank of America account i n the name of WR Group ("WR"), w i t h
h e r s e l f as s o l e s i g n a t o r y , i n which she d e s c r i b e d WR as a s o l e
p r o p r i e t o r s h i p .
27. Person P was a former c o l l e g e c l a s s m a t e of defendant
ZUBERI. From J a n u a r y 2014 through October 2015, defendant ZUBERI
p a i d Person P $5,000 per month t o p e r f o r m a v a r i e t y o f t a s k s on
b e h a l f of defendant ZUBERI and Avenue V e n t u r e s . On or about J u l y 14,
2014, a t the d i r e c t i o n o f defendant ZUBERI, Person P o b t a i n e d a
c e r t i f i c a t e of o r g a n i z a t i o n i n Washington, D.C. d e s i g n a t i n g WR Group
as a l i m i t e d l i a b i l i t y company ("WR, L L C " ) .
28. On or about May 23, 2014, a t t h e d i r e c t i o n of defendant
ZUBERI, Person P i n c o r p o r a t e d B e l t w a y Government S e r v i c e s , I n c .
("BGS"). That same day, Person P opened s e v e r a l W e l l s Fargo bank
accou n t s (the "BGS a c c o u n t s " ) i n which he i d e n t i f i e d h i m s e l f as owner
and s o l e s i g n a t o r y .
29. Person Q was an a s s o c i a t e of defendant ZUBERI. From J u l y
2014 through September 2014, defendant ZUBERI d i r e c t e d Person P t o
pay $2,500 per month out of the BGS accounts t o the b e n e f i t o f Person
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Q i n r e t u r n f o r h i s agreement t o a c t as a second s i g n a t o r y on t h e BGS
ac c o u n t s .
30. Throughout the e x i s t e n c e of WR LLC and BGS, Person P
n o m i n a l l y governed both e n t i t i e s but t h e y were a c t u a l l y a l w a y s
s u b j e c t t o the c o n t r o l of defendant ZUBERI. Defendant ZUBERI
d i r e c t e d Person P t o s i g n c o n t r a c t s , i s s u e i n v o i c e s , t r a n s f e r f unds,
pay expenses, and f o r e b e a r from p a y i n g expenses. Person P f o l l o w e d
defendant ZUBERI's i n s t r u c t i o n s w i t h r e s p e c t t o how t o op e r a t e t h e s e
e n t i t i e s .
3 1 . Person R was a b u s i n e s s a s s o c i a t e o f defendant ZUBERI and a
c a n d i d a t e f o r f e d e r a l e l e c t i v e o f f i c e d u r i n g the 2016 e l e c t i o n c y c l e .
32. Person S was a f o r e i g n n a t i o n a l , namely, a c i t i z e n of
B a h r a i n , and h i g h - r a n k i n g o f f i c i a l o f the B a h r a i n government.
E. Conduit Campaign C o n t r i b u t i o n s
33. From on or about A p r i l 27, 2012 through on or about October
26, 2016, defendant ZUBERI p a i d f o r campaign c o n t r i b u t i o n s donated i n
the name of o t h e r i n d i v i d u a l s by making the f o l l o w i n g o n l i n e payments
w i t h c r e d i t c a r d s b e l o n g i n g t o defendant ZUBERI and h i s spouse:
Date Campaign Contributor Amount 4/27/12 Campaign A Person BB $2,500 4/27/12 Campaign A Person CC $2,500 4/27/12 Campaign A Person DD $2,500 10/26/12 Campaign B Person EE $5,000 4/5/13 Campaign C Person FF $2,600 4/14/13 Campaign C Person FF $2,600 4/22/13 Campaign D Person B $2,600 4/22/13 Campaign D Person B $2,600 5/31/13 Campaign C Person B $2,600 5/31/13 Campaign C Person B $2,600 5/31/13 Campaign C Person C $2,600 5/31/13 Campaign C Person C $2,600 12/23/13 Campaign E Person FF $2,600 12/23/13 Campaign E Person FF $2,600
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12/26/13 Campaign F Person FF $2,600 12/26/13 Campaign F Person FF $2,600 1/27/14 Campaign C Person GG $2,400 1/27/14 Campaign F Person GG $2,600 1/27/14 Campaign C Person GG $2,600 1/27/14 Campaign F Person GG $2,600 1/27/14 Campaign C Person P $2,400 1/27/14 Campaign F Person P $2,600 1/27/14 Campaign C Person P $2,600 1/27/14 Campaign F Person P $2,600 4/19/14 Campaign G Person FF $2,600 4/19/14 Campaign G Person FF $2,600 5/14/14 Campaign G Person FF $2,600 5/14/14 Campaign G Person HH $2,600 9/25/14 Campaign H Person FF $2,600 2/3/15 Campaign I Person C $5,200 3/3/15 Campaign J Person B $2,700 3/3/15 Campaign J Person FF $2,700 3/3/15 Campaign J Person A $2,700 3/3/15 Campaign J Person C $2,700 5/27/15 Campaign C Person B $5,400 9/28/16 Campaign J Person C $400 9/28/16 Campaign J Person B $2,700 9/28/16 Campaign J Person B $2,700 9/28/16 Campaign J Person A $2,700 9/28/16 Campaign J Person A $2,700 9/28/16 Campaign J Person I I $2,700 9/28/16 Campaign J Person I I $2,700 10/26/16 Campaign K Person B $2,700
34. From on or about F e b r u a r y 26, 2013 through on or about
October 28, 2016, defendant ZUBERI p a i d f o r campaign c o n t r i b u t i o n s
donated i n the name of Person AA, a f a m i l y member who passed away on
or about A p r i l 2, 2016, by making the f o l l o w i n g o n l i n e payments w i t h
c r e d i t c a r d s b e l o n g i n g t o defendant ZUBERI:
Date Campaign Contributor Amount 4/22/13 Campaign D Person AA $2,600 4/22/13 Campaign D Person AA $2,600 12/6/13 Campaign E Person AA $2,600 12/6/13 Campaign E Person AA $2,600 12/26/13 Campaign F Person AA $2,600
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12/26/13 Campaign F Person AA $2,600 1/3/14 Campaign L Person AA $2,600 1/15/14 Campaign M Person AA $2,600 1/15/14 Campaign M Person AA $2,600 2/19/14 Campaign N Person AA $2,600 2/19/14 Campaign N Person AA $2,600 2/28/14 Campaign 0 Person AA $2,600 2/28/14 Campaign B Person AA $2,600 2/28/14 Campaign B Person AA $2,600 2/28/14 Campaign 0 Person AA $2,600 3/21/14 Campaign L Person AA $2,600 3/21/14 Campaign L Person AA $2,600 4/19/14 Campaign 0 Person AA $2,600 4/19/14 Campaign 0 Person AA $2,600 4/19/14 Campaign P Person AA $2,600 4/19/14 Campaign L Person AA $2,600 4/19/14 Campaign G Person AA $2,600 4/19/14 Campaign G Person AA $2,600 6/14/14 Campaign Q Person AA $2,600 7/3/14 Campaign R Person AA $2,600 7/3/14 Campaign R Person AA $2,600 7/3/14 Campaign S Person AA $2,600 7/3/14 Campaign S Person AA $2,600 8/16/14 Campaign J Person AA $2,600 1/23/15 Campaign F Person AA $2,600 1/23/15 Campaign F Person AA $2,600 2/3/15 Campaign I Person AA $5,200 2/5/15 Campaign T Person AA $5,000 3/3/15 Campaign J Person AA $2,700 3/9/15 Campaign C Person AA $2,700 3/9/15 Campaign C Person AA $2,700 3/21/15 Campaign U Person AA $2,700 3/21/15 Campaign U Person AA $2,700 3/22/15 Campaign V Person AA $2,700 3/22/15 Campaign V Person AA $2,700 4/12/15 Campaign W Person AA $2,700 6/12/15 Campaign X Person AA $2,700 12/16/15 Campaign Y Person AA $2,700 12/16/15 Campaign Y Person AA $2,700 10/28/16 Campaign Z Person AA $2,700
35. Although Person AA s h a r e d c e r t a i n j o i n t bank acco u n t s w i t h
defendant ZUBERI, none of those j o i n t a ccounts f i n a n c e d t h e above-
r e f e r e n c e d c o n t r i b u t i o n s i n Person AA's name, Person AA l a c k e d
s u f f i c i e n t income t o pay f o r a l l the c o n t r i b u t i o n s made i n Person
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AA's name, and a t t h e time the October 28, 2016 c o n t r i b u t i o n was made
i n Person AA's name, Person AA was deceased.
36. From on or about A p r i l 1, 2014 through on or about May 17,
2015, defendant ZUBERI reimbursed t h e f o l l o w i n g c o n d u i t s f o r campaign
c o n t r i b u t i o n s t h e y had donated a t defendant ZUBERI's d i r e c t i o n :
Date Campaign Contributor Amount 4/1/14 Campaign E Person P $400 4/1/14 Campaign E Person P $2,600 5/5/15 Campaign W Person J J $2,700 5/17/15 Campaign W Person KK $1,350
37. From on or about September 27, 2013 through on or about
A p r i l 14, 2016, defendant ZUBERI s o l i c i t e d and r e c e i v e d t h e f o l l o w i n g
reimbursements f o r campaign c o n t r i b u t i o n s , or p o r t i o n s of campaign
c o n t r i b u t i o n s , defendant ZUBERI had donated i n h i s own name:
Date Campaign Source of Funds Amount 9/27/13 S t a t e Campaign AA Person J $25,000 9/16/14 Campaign BB Person L L $16,000 4/14/16 Campaign CC Person L L $35,000
F. F o r e i g n Sources of Campaign C o n t r i b u t i o n s
38. B e g i n n i n g on or about May 2, 2012 and c o n t i n u i n g t o on or
about F e b r u a r y 1 1 , 2016, i n response t o defendant ZUBERI's
s o l i c i t a t i o n s , Person A and Person C caused Company A and Company B
t o i s s u e the f o l l o w i n g w i r e t r a n s f e r s i n t o a f o r e i g n bank account i n
th e name of defendant ZUBERI ("the I Z B a r c l a y s Dubai account") t h a t
e i t h e r funded or r e i m b u r s e d c o n t r i b u t i o n s t o t h e f o l l o w i n g p o l i t i c a l
campaigns and a F E C A - r e g u l a t e d event ("Event E E " ) :
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Company A to Company B
Date Company B to Zuberi
Date Zuberi Acct, Purpose
$136,600 5/1/12 Z u b e r i B a r c l a y s Dubai
Campaign B & Campaign DP
$71,600 6/11/12 Z u b e r i B a r c l a y s Dubai
Campaign DD
$90,000 9/26/12 Z u b e r i B a r c l a y s Dubai
Campaign DD
$180,000 10/10/13 $180,000 10/1/12 Z u b e r i B a r c l a y s Dubai
Campaign DD
$100,000 10/21/12 Z u b e r i B a r c l a y s Dubai
Campaign DD
$100,000 11/12/12 Z u b e r i B a r c l a y s Dubai
Event EE
$500,000 12/10/12 Z u b e r i B a r c l a y s Dubai
Event EE
$150,000 1/16/13 $150,000 1/14/13 Z u b e r i B a r c l a y s Dubai
Event EE
$100,000 5/2/13 $100,000 2/27/13 Z u b e r i B a r c l a y s Dubai
Event EE photos
$5,000 4/30/13 Z u b e r i B a r c l a y s Dubai
Campaign D
$100,200 2/11/16 Avenue V e n t u r e s W e l l s Fargo US
Campaign DD
39. Defendant ZUBERI caused Avenue V e n t u r e s t o i s s u e i n v o i c e s
t h a t d i s g u i s e d t he n a t u r e o f t h e s e f o r e i g n c o n d u i t campaign
c o n t r i b u t i o n s , t y p i c a l l y by f a l s e l y c h a r a c t e r i z i n g t h e t r a n s f e r s as
" i n t e r n a t i o n a l c o n s u l t i n g . "
40. These f o r e i g n , c o n d u i t c o n t r i b u t i o n s were donated i n t h e
names o f Person A, Person B, Person C, Person D, Person E, Person F,
Person I , Person 0, Person AA, and defendant ZUBERI.
41 . From on or about A p r i l 14, 2 015 through on or about May 5,
2015, defendant ZUBERI a l s o s o l i c i t e d , and caused t h e f o l l o w i n g
campaign committees t o r e c e i v e , t he f o l l o w i n g d i r e c t c o n t r i b u t i o n s
from f o r e i g n n a t i o n a l s knowing t h a t t h e y were f o r e i g n n a t i o n a l s :
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Date Campaign Contributor Amount 4/14/15 Campaign W Person D $2,700 4/19/15 Campaign W Person A $2,700 5/5/15 Campaign W Person H $2,700
G. C o n v e r s i o n of Funds I n t e n d e d f o r P o l i t i c a l Campaigns
42. C o n t r a r y t o the r e p r e s e n t a t i o n s made by defendant ZUBERI t o
Person A and Person C, defendant ZUBERI d i r e c t e d o n l y a p o r t i o n of
the money w i r e d by Company A and Company B to p o l i t i c a l campaigns and
Event EE and c o n v e r t e d the r e m a i n i n g amounts t o h i s p e r s o n a l b e n e f i t :
Wire to Zuberi
Date Intended Campaign Amounts Donated to Campaign
Amounts Converted
$136,600 5/1/12 Campaign B & Campaign DD
$100,000 $36,600
$71,600 6/11/12 Campaign DD $0 $71,600 $90,000 9/26/12 Campaign DD $89,000 $1,000 $180,000 10/1/12 Campaign DD $40,000 $140,000 $100,000 10/21/12 Campaign DD $0 $100,000 $100,000 11/12/12 Event EE $0 $100,000 $500,000 12/10/12 Event EE $62,500 1 $437,500 $150,000 1/14/13 Event EE $35,000 $115,000 $100,000 2/27/13 Event EE (photos) $0 $100,000 $100,200 2/11/16 Campaign CC $100,000 $200 T o t a l T o t a l Converted
by ZUBERI $1,101,900
43. For example, on or about September 24, 2012, i n c o n n e c t i o n
w i t h h i s s o l i c i t a t i o n o f t h e $90,000 and $180,000 w i r e t r a n s f e r s ,
defendant ZUBERI f a l s e l y i nformed Person C and Person E t h a t he had
i n c u r r e d expenses of $270,000 by making c o n t r i b u t i o n s on t h e i r
b e h a l f . D e l i b e r a t e l y u s i n g t h e name of a f i c t i t i o u s employee,
defendant ZUBERI se n t an e m a i l from [email protected]
t h a t f a l s e l y s t a t e d :
1 From on or about December 27, 2012 through on or about J a n u a r y 15, 2013, defendant ZUBERI made c o n t r i b u t i o n s o f $62,500, $62,500, $62,500, $35,000 and $35,000, t o t a l i n g $257,500, and t h e r e a f t e r o b t a i n e d r e f u n d s from t h e i n a u g u r a t i o n committee of $160,000, making the a c t u a l expenses i n c u r r e d o n l y $97,500.
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P l e a s e get me the forms and the w i r e as soon as p o s s i b l e because t h e r e a r e l i m i t e d number of s e a t s a v a i l a b l e . I have used American E x p r e s s of Imaad t o pay f o r everyone's dues. We need t o put the names through v e t t i n [ s i c ] p r o c e s s as w e l l . A f t e r the w i r e i s done, p l e a s e e m a i l me so we can move i t i n t o the c o r r e c t sub-account. Thanks Rob
44. That same day, defendant ZUBERI f a l s e l y informed Person C
t h a t defendant ZUBERI was approaching the c r e d i t l i m i t on h i s
American E x p r e s s c a r d because of the $270,000 i n c o n t r i b u t i o n
expenses i n c u r r e d , and a t t a c h e d a n o t i c e from American E x p r e s s t o
p u r p o r t e d l y c o n f i r m t h a t a s s e r t i o n . I n f a c t , defendant ZUBERI
f r a u d u l e n t l y p r e p a r e d t h e American E x p r e s s n o t i c e t o i n f l a t e h i s
o u t s t a n d i n g b a l a n c e from a p p r o x i m a t e l y $3,943 t o $279,998 and h i s
c r e d i t l i m i t from $19,000 t o $300,000.
45. From on or about September 27, 2012 through on or about
October 12, 2012, defendant ZUBERI c o n v e r t e d a p p r o x i m a t e l y $141,000
of the $270,000 he r e c e i v e d as p a r t of t h i s scheme and used t h e
m a j o r i t y of t h o s e funds t o (a) pay o f f a $68,679 mortgage b a l a n c e on
h i s p e r s o n a l r e s i d e n c e , (b) t r a n s f e r $40,000 t o a b u s i n e s s o p e r a t e d
by h i s spouse and her c l o s e r e l a t i v e , and (c) withdraw $5,000 i n c a s h
f o r h i m s e l f .
46. On or about J a n u a r y 2 1 , 2013, defendant ZUBERI f a l s e l y
i nformed Person A, Person C, and Person E t h a t t h e r e was a s h o r t f a l l
i n t h e i r c o n t r i b u t i o n s t o Event EE and t h a t a h o l d had been p l a c e d on
t h e i r photographs w i t h t h e P r e s i d e n t and V i c e - P r e s i d e n t , w r i t i n g :
[ Y ] o u guys were supposed t o t a k e o n l y two people f o r t h e photo. These were $250,000 per person w i t h P r e s i d e n t and V i c e P r e s i d e n t . I t o l d you by m i s t a k e t h e y had put wrong names on t h e photo l i n e . When the photo ( s i c ) a r e out t h e y w i l l match i t w i t h who went t o the photo l i n e v e r s u s who p a i d f o r them or how many p a i d . I t won't t a k e long f o r them to f i g u r e t h i s out. There were f o u r people i n s t e a d of two. I t w i l l make me look l i k e I am t r y i n g t o p l a y a f a s t one w i t h them. I do not want t o t a k e chance w i t h my
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r e p u t a t i o n f o r a couple hundred thousand d o l l a r s . I t i s not worth i t f o r me and I have too much t o l o s e . I t o l d them t h e r e was a m i s t a k e made and t o h o l d our photo u n t i l I t e l l them which one t o r e l e a s e and not r e l e a s e . You need t o t e l l me which two people photo you want r e l e a s e d . L e t me make i t c l e a r , e x c e p t f o r [Person C ] , both [Person E] and [Person A] have not p a i d enough f o r t h i s s p e c i f i c photo.
47. I n f a c t , as defendant ZUBERI knew, t h e r e was no s h o r t f a l l
i n c o n t r i b u t i o n s t o Event EE and, i n the weeks ahead, defendant
ZUBERI a c t u a l l y r e c e i v e d r e f u n d s f o r some c o n t r i b u t i o n s defendant
ZUBERI had made t o Event EE.
48. From on or about J a n u a r y 22, 2013 through or about F e b r u a r y
25, 2013, defendant ZUBERI f a l s e l y informed Person C t h a t defendant
ZUBERI p e r s o n a l l y p a i d $250,000 f o r the a d d i t i o n a l photo and t h a t
defendant ZUBERI e x p e c t e d Person A t o reimburse him f o r t h a t expense
or e l s e he would i n f o r m b u s i n e s s a s s o c i a t e s not t o work w i t h Person
A. U l t i m a t e l y , defendant ZUBERI informed Person A t h a t he would
a c c e p t t h e reduced amount of $100,000 from Person A f o r t h e p u r p o r t e d
reimbursement.
H. Income From a n t i - B a h r a i n Lobbying E f f o r t
49. I n or about F e b r u a r y 2013, Person J informed defendant
ZUBERI t h a t he was engaged i n a f i n a n c i a l d i s p u t e w i t h Person S.
A c c o r d i n g to Person J , Person S won a monetary a r b i t r a t i o n award
a g a i n s t Person J f o r s e r v i c e s rendered i n c o n n e c t i o n w i t h t he
development of the A l Areen P a l a c e & Spa ("Al A r e e n " ) , a master
planned development i n s o u t h e r n B a h r a i n . A c c o r d i n g t o Person J , as a
r e s u l t o f t h i s d i s p u t e w i t h Person.S, t h e Government of B a h r a i n had
f r o z e n Person J ' s p e r s o n a l a s s e t s and d e l a y e d f u r t h e r development o f
A l Areen, which was c a u s i n g s i g n i f i c a n t f i n a n c i a l harm t o Person J .
50. To remedy Person J ' s f i n a n c i a l d i s p u t e , defendant ZUBERI
proposed t o use h i s c o n n e c t i o n s w i t h c u r r e n t and former h i g h - r a n k i n g
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U.S. Government o f f i c i a l s t o d i s s u a d e the B a h r a i n i government from
engaging i n conduct a n t i t h e t i c a l t o Person J ' s f i n a n c i a l i n t e r e s t s
("the a n t i - B a h r a i n l o b b y i n g e f f o r t " ) .
5 1 . Defendant ZUBERI f u r t h e r proposed t h a t he and Person J
convey t h e appearance t h a t Avenue V e n t u r e s was i n v e s t i n g i n A l Areen.
By i n j e c t i n g a U.S. " i n v e s t o r " i n t o the p r o j e c t , defendant ZUBERI
b e l i e v e d he c o u l d c o n v i n c e h i g h - r a n k i n g U.S. Government o f f i c i a l s t o
a p p l y p o l i t i c a l p r e s s u r e on the B a h r a i n government i n t o s t o p p i n g i t s
i n t e r f e r e n c e i n t h e A l Areen development because of i t s a d v e r s e
f i n a n c i a l impact on a U.S. e n t i t y . Defendant ZUBERI proposed a
c i r c u l a r scheme through which the appearance of a U.S. i n v e s t m e n t
would be c r e a t e d : (a) Person J would i n v e s t i n a U.S. company; (b)
the U.S. company would i n v e s t i n Avenue V e n t u r e s ; and (c) Avenue
V e n t u r e s would then i n v e s t i n an A l Areen H o l d i n g Company ("AHC")
t h a t p u r p o r t e d l y owned A l Areen.
52. From on or about March 3, 2013 through on or about May 28,
2013, defendant ZUBERI e n l i s t e d the support of a former h i g h - r a n k i n g
U.S. o f f i c i a l t o speak w i t h members of the B a h r a i n government, U.S.
S t a t e Department o f f i c i a l s , and a Member of Congress i n f u r t h e r a n c e
of t h e a n t i - B a h r a i n l o b b y i n g e f f o r t s .
53. From on or about March 12, 2013 through on or about March
5, 2014, defendant ZUBERI e n l i s t e d the support of a h i g h - r a n k i n g U.S.
S t a t e Department o f f i c i a l i n B a h r a i n t o v i s i t A l Areen, meet w i t h
members of the B a h r a i n government, and speak w i t h Members of Congress
i n f u r t h e r a n c e of t h e a n t i - B a h r a i n l o b b y i n g e f f o r t .
54. From on or about March 15, 2013 through on or about June 1,
2013, defendant ZUBERI d i s c u s s e d w i t h Members of Congress and t h e i r
s t a f f s how to e n l i s t t h e support of the U.S. S t a t e Department i n
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f u r t h e r a n c e o f the a n t i - B a h r a i n l o b b y i n g e f f o r t and a r r a n g e d f o r
t h e s e Congresspersons t o meet w i t h B a h r a i n government o f f i c i a l s .
55. On or about A p r i l 29, 2013, defendant ZUBERI s t a g e d a
p u b l i c event i n Los A n g e l e s , C a l i f o r n i a , a t which Person J and o t h e r
i n d i v i d u a l s p u r p o r t e d t o s i g n a p a r t n e r s h i p agreement i n which Avenue
V e n t u r e s a c q u i r e d a 35% s t a k e i n AHC i n r e t u r n f o r i t s h a v i n g made a
s i z a b l e U.S. f o r e i g n i n v e s t m e n t i n A l Areen. I n f a c t , no such
agreement was e x e c u t e d .
56. Defendant ZUBERI s o l i c i t e d Person J f o r money i n r e t u r n f o r
a c t i n g as an u n r e g i s t e r e d f o r e i g n agent of Person J . On or about
August 3, 2013, defendant ZUBERI t o l d Person J and o t h e r s :
I t has been s e v e r a l months s i n c e the A l - A r e e n p r e s s c o n f e r e n c e . We need t o put c l o s u r e on t h i s by Thursday August 15. We have been asked about t h i s p r o j e c t by [ S t a t e Department O f f i c i a l ] and o t h e r s i n c l u d i n g c a l l s from [ B a h r a i n government o f f i c i a l s . . .] I f i t i s not moving f o r w a r d then we w i l l l e t US S t a t e Department know t h a t we a r e not moving f o r w a r d w i t h t h i s p r o j e c t . . . .
57. On or about August 18, 2013, defendant ZUBERI warned
Person J :
Next week we need t o e i t h e r get documents s i g n e d or we need to have a p r e s s r e l e a s e t h a t we agreed not t o move f o r w a r d t h e r e b y d i s e n g a g i n g . I t has been over 5-6 months which i s way too long. Tomorrow, i f someone c h a l l e n g e d t h i s t h en what document do I have to prove t h i s i s a r e a l t r a n s a c t i o n ?
58. On or about August 26, 2013, Person J e x e c u t e d a c o n t r a c t
w i t h Avenue V e n t u r e s on b e h a l f of Company D. Under t h e terms of t h e
c o n t r a c t , Avenue V e n t u r e s would p r o v i d e c o n s u l t a n c y s e r v i c e s t o
f u r t h e r Company D's attempts t o e n t e r i n t o b u s i n e s s r e l a t i o n s h i p s
throughout the w o r l d on an as-needed b a s i s . I n r e t u r n , Company D
would pay Avenue V e n t u r e s a r e t a i n e r of $250,000 per y e a r p l u s
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a d d i t i o n a l r e t a i n e r s and s u c c e s s f e e s as p r o j e c t s were r e a l i z e d , as
w e l l as expenses.
59. Defendant ZUBERI f a i l e d t o r e g i s t e r under FARA as an agent
of Person J , a f o r e i g n n a t i o n a l , and r e c e i v e d income f o r a c t i n g as an
u n r e g i s t e r e d agent of Person J . For example, i n or about August
2013, Avenue Ven t u r e s i s s u e d an i n v o i c e t o Company D s e e k i n g $250,000
per t he "2013 c o n t r a c t . " On or about August 29, 2013, Avenue
V e n t u r e s i s s u e d an i n v o i c e t o Company D f o r $27,900 f o r expenses
i n c u r r e d i n r e l a t i o n t o t h e a n t i - B a h r a i n l o b b y i n g e f f o r t . On or
about September 2013, Company D w i r e d $277,858 t o t h e IZ B a r c l a y s
Dubai account i n payment on those i n v o i c e s r e l a t e d t o defendant
ZUBERI's a n t i - B a h r a i n l o b b y i n g e f f o r t s .
60. From on or about J a n u a r y 15, 2 014 through on or about March
5, 2014, defendant ZUBERI p r e v a i l e d upon Members of Congress t o i s s u e
o f f i c i a l l e t t e r s t o t h e F o r e i g n M i n i s t e r of B a h r a i n i n support o f the
a n t i - B a h r a i n l o b b y i n g e f f o r t s . I n o r d e r t o a c h i e v e t h i s g o a l ,
defendant ZUBERI f a l s e l y informed Members of Congress:
[A] major i n v e s t m e n t by a US company i n B a h r a i n i s e x p e r i e n c i n g s i g n i f i c a n t i n t e r f e r e n c e from B a h r a i n i a u t h o r i t i e s a c t i n g on b e h a l f of a member of t h e r o y a l f a m i l y . . . . [Avenue V e n t u r e s ] i s s e e k i n g support from i t s government f o r a c e s s a t i o n o f i n t e r f e r e n c e i n i t s p r o j e c t i n B a h r a i n .
61. I n f a c t , Avenue Ven t u r e s had not i n v e s t e d any money or
a c q u i r e d any s t a k e i n e i t h e r AHC or A l Areen and t h e t r u e purpose of
the l o b b y i n g e f f o r t s was t o f i n a n c i a l l y b e n e f i t Person J .
62. From on or about J a n u a r y 15, 2014 through on or about March
5, 2014, i n response t o t h e l o b b y i n g e f f o r t s of defendant ZUBERI on
b e h a l f o f Person J , t w e l v e Members of Congress i s s u e d o f f i c i a l
l e t t e r s t o the F o r e i g n M i n i s t e r of B a h r a i n c i t i n g t h e p u r p o r t e d
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"harassment" o f "U.S. i n v e s t o r s " and a s k i n g t h a t h i s government stop
i t s " i n t e r f e r e n c e . "
I . C o n v e r s i o n of Funds/Income R e c e i v e d From U.S. Cares I n v e s t o r s
63. From on or about August 12, 2013 through on or about
J a n u a r y 27, 2014, defendant ZUBERI s o l i c i t e d Person J , Person K,
Person L, Person M, and Person N t o i n v e s t i n U.S. Cares and caused
Avenue Ven t u r e s t o e n t e r i n t o an o p e r a t i n g agreement w i t h t h e i r
r e s p e c t i v e companies.
64. The o p e r a t i n g agreement t h a t d e f i n e d the investm e n t
a s s i g n e d the f o l l o w i n g ownership p e r c e n t a g e s i n t h e v e n t u r e : Avenue
V e n t u r e s ( 2 8 . 5 % ) , Company D ( 2 0 % ) , Company F ( 9 . 5 % ) , Company E ( 2 % ) ,
Company G ( 2 0 % ) , and Company H ( 2 0 % ) . The agreement r e q u i r e d t he
e s t a b l i s h m e n t o f a c a p i t a l account w i t h r e s p e c t t o each member's
c a p i t a l c o n t r i b u t i o n s .
65. From on or about September 28, 2013 through on or about
March 1 1 , 2014, the U.S. Cares i n v e s t o r s w i r e d a p p r o x i m a t e l y
$7,000,000 i n t o t h e I Z B a r c l a y s Dubai account, an i n d i v i d u a l E m i r a t e s
Bank account i n the name of defendant ZUBERI l o c a t e d i n Dubai ("the
IZ E m i r a t e s Dubai a c c o u n t " ) , and a Bank of America account i n t h e
U n i t e d S t a t e s h e l d j o i n t l y i n the name of defendant ZUBERI and h i s
spouse ("the IZ/WR BofA a c c o u n t " ) .
66. C a p i t a l i n v e s t m e n t s from Person N and h i s b u s i n e s s , Company
H, and Person M's b u s i n e s s , Company G, were w i r e d t o defendant ZUBERI
as f o l l o w s :
T r a n s f e r Date T r a n s f e r Amount Payor Zuberi Account 12/10/2013 $500,000 Person N IZ/WR BofA US 12/12/2013 $490,070 Person N IZ E m i r a t e s Dubai 12/22/2013 $245,031 Person N IZ E m i r a t e s Dubai 12/24/2013 $500,000 Company H IZ/WR BofA US 1/27/2014 $2,000,000 Company G IZ E m i r a t e s Dubai
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67. Defendant ZUBERI d i d not t r a n s f e r any of the funds r e c e i v e d
from U.S. Cares i n v e s t o r s i n t o a U.S. Cares c a p i t a l account as
r e q u i r e d by the o p e r a t i n g agreement. I n s t e a d , from on or about
December 5, 2013 through on or about October 12, 2015, defendant
ZUBERI used over 90% of t h e i n v e s t o r funds t o (a) purchase r e a l
e s t a t e i n the names of v a r i o u s l i m i t e d l i a b i l i t y companies owned
e n t i r e l y by h i m s e l f and h i s spouse ("IZ/WR R e a l P r o p e r t y L L C s " ) , (b)
pay down mortgages owed by IZ/WR R e a l P r o p e r t y L L C s , (c) remodel
p r o p e r t y owned by IZ/WR R e a l P r o p e r t y LLCs, (d) i n v e s t i n brokerage
a c c o u n t s i n the names of defendant ZUBERI and h i s spouse, (e) donate
$250,000 t o a n o n - p r o f i t o r g a n i z a t i o n e s t a b l i s h e d by a former h i g h -
r a n k i n g e l e c t e d o f f i c i a l , and ( f ) pay down p e r s o n a l c r e d i t c a r d debt,
most of which was i n c u r r e d t o pay campaign c o n t r i b u t i o n s and t r a v e l ,
meal, e n t e r t a i n m e n t , and p e r s o n a l expenses.
68. Out of a p p r o x i m a t e l y $7,000,000 w i r e d t o defendant ZUBERI
by U.S. Cares i n v e s t o r s , l e s s t h a n $250,000 was spent i n f u r t h e r a n c e
of defendant ZUBERI's a d v e r t i s e d b u s i n e s s purpose. On or about
October 7, 2013 and on or about December 9, 2013, defendant ZUBERI
i s s u e d two $90,000 checks t o a law f i r m i n c o n n e c t i o n w i t h t h e
c r e a t i o n of U.S. Cares and p r e p a r i n g a l i c e n s e a p p l i c a t i o n t o OFAC.
From i n or about October 2013 through i n or about F e b r u a r y 2016,
defendant ZUBERI p a i d another a t t o r n e y a p p r o x i m a t e l y $20,000 i n
c o n n e c t i o n w i t h t h e U.S. Cares l i c e n s e a p p l i c a t i o n .
69. I n or about J a n u a r y 2016, U n i t e d S t a t e s s a n c t i o n s a g a i n s t
I r a n were l i f t e d , which impacted OFAC r e g u l a t i o n s p e r t a i n i n g t o U.S.
C a r e s .
70. On or about F e b r u a r y 22, 2016, OFAC responded t o U.S. Cares
l i c e n s e a p p l i c a t i o n , s t a t i n g t h a t ". . . the A p p l i c a n t ' s proposed
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t r a n s a c t i o n s r e l a t e d t o the e x p o r t a t i o n and r e e x p o r t a t i o n of the
goods as d e s c r i b e d i n the a p p l i c a t i o n appear t o be g e n e r a l l y
a u t h o r i z e d [ . ] "
71. A f t e r t h e OFAC response, defendant ZUBERI took no f u r t h e r
a c t i o n w i t h r e s p e c t t o the l i c e n s e a p p l i c a t i o n , nor d i d he use any c
the c o n v e r t e d funds t o engage i n the planned d i s t r i b u t i o n of
h u m a n i t a r i a n s u p p l i e s t o I r a n .
J . C o n v e r s i o n of Funds/Income R e c e i v e d From S r i Lankan Government
72. From on or about November 28, 2013 through on or about
March 5, 2014, defendant ZUBERI met w i t h h i g h - r a n k i n g o f f i c i a l s of
the Government of S r i Lanka and n e g o t i a t e d an agreement whereby
Avenue V e n t u r e s , or a s p e c i a l - p u r p o s e company c r e a t e d by Avenue
V e n t u r e s , would engage i n l o b b y i n g and p u b l i c r e l a t i o n s e f f o r t s t o
r e h a b i l i t a t e S r i Lanka's image i n the U n i t e d S t a t e s . T h i s proposed
l o b b y i n g and p u b l i c r e l a t i o n s e f f o r t f o c u s e d on m o d i f y i n g U n i t e d
S t a t e s p o l i c i e s , p a r t i c u l a r l y through the i s s u a n c e o f C o n g r e s s i o n a l
r e s o l u t i o n s , and improving p u b l i c p e r c e p t i o n r e l a t i n g to S r i Lanka's
a l l e g e d p e r s e c u t i o n o f i t s m i n o r i t y T a m i l p o p u l a t i o n .
73. On or about March 5, 2014, defendant ZUBERI pledged t o
expend $2,250,000 per q u a r t e r i n support of t h i s e f f o r t w i t h
$1,500,000 per q u a r t e r f o r l o b b y i n g expenses, $500,000 per q u a r t e r
f o r l e g a l expenses, and $250,000 per q u a r t e r f o r media buys.
Defendant ZUBERI t o l d S r i Lankan o f f i c i a l s t h a t t h e e f f o r t would
i n c l u d e i n t r o d u c i n g S r i Lankan o f f i c i a l s t o e x e c u t i v e branch
a d m i n i s t r a t i o n o f f i c i a l s , S e n a t o r s , and Congresspersons, and
r e c r u i t i n g S r i Lankan e x p a t r i a t e s t o engage i n p o l i t i c a l o r g a n i z i n g
i n t he U n i t e d S t a t e s .
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74. On or about A p r i l 26, 2014, WR e n t e r e d i n t o a c o n t r a c t ,
e f f e c t i v e May 1, 2014, w i t h the C e n t r a l Bank of S r i Lanka ("the S r i
Lanka-WR c o n t r a c t " ) . The S r i Lanka-WR c o n t r a c t d e s c r i b e d WR's
s e r v i c e s as " ( i ) s t r a t e g i c a d v i c e r e l a t e d t o commercial and p u b l i c
p o l i c y c o n s i d e r a t i o n s r e l a t e d t o the US and o t h e r p a r t i e s ; " and ( i i )
" i d e n t i f i c a t i o n of c o n s u l t a n t s or o t h e r l e g a l or n o n - l e g a l a d v i s o r s
t o [ S r i Lanka] and the C e n t r a l Bank as may e f f e c t u a t e S r i Lanka's
commercial and d i p l o m a t i c o b j e c t i v e s . " I n r e t u r n , the S r i Lanka-WR
c o n t r a c t r e q u i r e d t h e payment of $8,500,000 i n accordance w i t h the
f o l l o w i n g s c h e d u l e : $3,500,000 on May 1, 2014, and f i v e payments of
$1,000,000 per month from June through October 2014.
75. On or about May 9, 2014, a t defendant ZUBERI's r e q u e s t , t h e
C e n t r a l Bank of S r i Lanka w i r e d $3,500,000 t o t h e IZ/WR BofA account.
76. I n or about May 2014, defendant ZUBERI t r a n s f e r r e d
$1,600,000 of t h e S r i Lankan money i n t o h i s p e r s o n a l brokerage
a c c o u n t s , $1,500,000 t o escrow accounts f o r t h e purchase o f r e a l
p r o p e r t y i n the name of an IZ/WR R e a l P r o p e r t y LLC, $300,000 t o pay
debt on p e r s o n a l c r e d i t c a r d a c c o u n t s , and most of the r e m a i n i n g
$100,000 i n t o bank accounts h e l d by IZ/WR R e a l P r o p e r t y LLCs ("IZ/WR
R e a l P r o p e r t y LLC a c c o u n t s " ) .
77. On or about June 18, 2014, a t defendant ZUBERI's r e q u e s t ,
t h e C e n t r a l Bank o f S r i Lanka w i r e d $1,000,000 t o the IZ/WR BofA
account.
78. I n or about June 2014, defendant ZUBERI t r a n s f e r r e d
a p p r o x i m a t e l y $650,000 o f S r i Lanka money i n t o h i s brokerage a c c o u n t s
and almost $200,000 o f S r i Lanka money i n t o IZ/WR R e a l P r o p e r t y LLC
acc o u n t s .
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79. I n or about J u l y 2014, S r i Lankan o f f i c i a l s i n s i s t e d t h a t
the payments i n c o n n e c t i o n w i t h the S r i Lanka-WR c o n t r a c t be
d i s b u r s e d t o the c o n t r a c t i n g p a r t y , WR, r a t h e r than t o defendant
ZUBERI's p e r s o n a l bank account. I n a d d i t i o n , S r i Lankan o f f i c i a l s
r e q u e s t e d r e c e i p t s from WR w i t h r e s p e c t t o t h e w i r e t r a n s f e r s a l r e a d y
made.
80. On or about J u l y 9 and 10, 2014, defendant ZUBERI d i r e c t e d
Person P to i s s u e f r a u d u l e n t r e c e i p t s on b e h a l f of WR f o r t h e
$3,500,000 and $1,000,000 w i r e t r a n s f e r s , d e s p i t e the funds h a v i n g
been r e c e i v e d i n t o defendant ZUBERI's p e r s o n a l bank account and spent
f o r defendant ZUBERI's p e r s o n a l b e n e f i t .
81 . On or about J u l y 18, 2014, t h e C e n t r a l Bank of S r i Lanka
w i r e d $1,000,000 i n t o a WR bank account.
82. From i n or about J u l y 2014 through i n or about September
2014, defendant ZUBERI d i r e c t e d Person P t o t r a n s f e r over $500,000 of
S r i Lankan money from WR t o c o r p o r a t e e n t i t i e s c o n t r o l l e d by
defendant ZUBERI and h i s spouse, i n c l u d i n g Avenue C a p i t a l Group, LLC
("ACG"), ISZ 9 LLC ( " I S Z " ) , F o u n t a i n , LLC ( " F o u n t a i n " ) , and C l a r y LLC
( " C l a r y " ) . Defendant ZUBERI then t r a n s f e r r e d most of the S r i Lankan
money i n t o the IZ/WR BofA account, which were then used f o r defendant
ZUBERI's p e r s o n a l b e n e f i t , i n c l u d i n g brokerage account i n v e s t m e n t s ,
r e a l e s t a t e i n v e s t m e n t s , and t o pay debt on h i s p e r s o n a l c r e d i t
c a r d s . The t r a n s a c t i o n s a r e summarized below:
1 s t T r a n s f e r >nd T r a n s f e r J r d T r a n s f e r B e n e f i c i a r y $250,000 t o ISZ 9
$225,000 t o IZ/WR BofA
$100,000 t o E t r a d e IZ/WR $100,000 t o E t r a d e IZ/WR
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$250,000 t o F o u n t a i n
$225,000 t o IZ/WR BofA
$113,484 t o American E x p r e s s IZ/WR $100,000 t o E t r a d e IZ/WR
$250,000 t o C l a r y
$240,000 t o A I S
$135,000 t o BGS BGS $50,000 t o American C t r l Escrow IZ/WR $50,000 t o American C t r l Escrow IZ/WR
$200,000 t o ACG
$149,000 t o BGS BGS $25,000 t o Person R PERSON R $25,000 t o Person R PERSON R
$40,000 t o BGS BGS $5,000 t o BGS BGS $5,000 t o Person P PERSON P
83. On or about September 10, 2014, t h e C e n t r a l Bank o f S r i
Lanka w i r e d $1,000,000 i n t o a WR bank account.
84. From i n or about September 2014 through i n or about October
2014, defendant ZUBERI d i r e c t e d Person P t o t r a n s f e r a p p r o x i m a t e l y
$725,000 of S r i Lankan money from WR to c o r p o r a t e e n t i t i e s c o n t r o l l e d
by defendant ZUBERI, i n c l u d i n g ACG and Avenue Investment S e r v i c e s ,
LLC ( " A I S " ) . Defendant ZUBERI then t r a n s f e r r e d most of t h e funds
i n t o the IZ/WR BofA account, which were then used f o r defendant
ZUBERI's p e r s o n a l b e n e f i t , i n c l u d i n g brokerage account i n v e s t m e n t s
and t o pay debt on h i s p e r s o n a l c r e d i t c a r d s . The t r a n s a c t i o n s a r e
summarized below:
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1 s t T r a n s f e r 2 n d T r a n s f e r 3 r d T r a n s f e r B e n e f i c i a r y $475,000 t o $390,000 t o $36,674 t o ACG (2 c k s ) IZ/WR BofA American E x p r e s s IZ/WR
$100,000 t o E t r a d e IZ/WR $100,000 t o Schwab IZ/WR $100,000 t o Schwab IZ/WR
$35,000 t o Nelson M u l l i n s NM $13,500 t o BGS BGS
$475,000 t o $355,000 t o $100,000 t o A I S (2 c k s ) IZ/WR BofA E t r a d e IZ/WR
$100,000 t o E t r a d e IZ/WR $100,000 t o E t r a d e IZ/WR $66,674 t o American E x p r e s s IZ/WR
$50,000 t o BGS BGS $6, 000 t o BGS BGS
$24,750 t o BGS BGS $8,750 t o BGS BGS $16,500 t o Person P PERSON P
85. Out of t h e $6,500,000 w i r e d from S r i Lanka p u r s u a n t t o t h e
S r i Lanka-WR c o n t r a c t , defendant ZUBERI d i r e c t e d over $5,650,000 t o
the b e n e f i t of defendant ZUBERI and h i s spouse.
86. Out of t h e $6,500,000 w i r e d from S r i Lanka p u r s u a n t t o the
S r i Lanka-WR c o n t r a c t , l e s s t han $850,000 was p a i d t o l o b b y i s t s ,
p u b l i c r e l a t i o n s f i r m s , law f i r m s , and o t h e r s u b c o n t r a c t o r s
i d e n t i f i e d by defendant ZUBERI and r e t a i n e d by BGS.
87. At defendant ZUBERI's d i r e c t i o n , Person P f a i l e d t o pay
c e r t a i n i n v o i c e s i s s u e d by t h e s e s u b c o n t r a c t o r s . Defendant ZUBERI
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f a l s e l y r e p r e s e n t e d t o t h e s e unpaid s u b c o n t r a c t o r s t h a t S r i Lanka had
p r o v i d e d i n s u f f i c i e n t funds t o make payment and t h a t BGS and Person P
were i n p o s s e s s i o n of funds r e c e i v e d from S r i Lanka when, i n f a c t ,
defendant ZUBERI had d i r e c t e d Person P t o t r a n s f e r the S r i Lankan
funds t o b e n e f i t defendant ZUBERI p e r s o n a l l y .
K. Income R e c e i v e d i n 2015
88. On or about March 27, 2015, Company I , a U k r a i n i a n f o r e i g n
e n t i t y , w i r e d $1,000,000 t o the IZ/WR BofA account as payment on an
i n v o i c e f o r c o n s u l t i n g s e r v i c e s i s s u e d by defendant ZUBERI.
89. Defendant ZUBERI used the m a j o r i t y of the Company I funds
f o r h i s p e r s o n a l b e n e f i t as f o l l o w s : $650,000 t o defendant ZUBERI's
p e r s o n a l brokerage a c c o u n t s , $174,000 t o pay debt on h i s p e r s o n a l
c r e d i t c a r d , $39,500 t o purchase a BMW automobile, and $22,408 t o pay
t a x e s he owed t o the C a l i f o r n i a F r a n c h i s e Tax Board.
90. On or about August 4, 2015, Person J w i r e d $1,000,000 t o an
ACG bank account f o r " C o n s u l t a n c y Fees from A l - A r e e n p r o j e c t . "
91. On or about August 5, 2015, defendant ZUBERI used t h e
m a j o r i t y of t h e funds r e c e i v e d from Person J t o i s s u e a $770,000
check t h a t he d e p o s i t e d i n t o the IZ/RW BofA account. These funds
were combined w i t h o t h e r funds t o w i r e $3,183,800 t o an escrow
company i n c o n n e c t i o n w i t h the purchase of a p r o p e r t y i n the name of
an IZ/WR R e a l P r o p e r t y LLC.
92. On or about October 26, 2015, Company C w i r e d $999,980 t o
an ACG bank account f o r an "Engagement Fee." The f e e c o n s t i t u t e d a
r e t a i n e r f o r Avenue V e n t u r e s to p r o v i d e c o n s u l t a n c y s e r v i c e s t o
a s s i s t Company C t o engage i n b u s i n e s s r e l a t i o n s h i p s w i t h government
e n t i t i e s and p r i v a t e companies throughout t h e w o r l d on an as-needed
b a s i s .
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93. On or about October 28, 2015, defendant ZUBERI's spouse
used the m a j o r i t y of the funds r e c e i v e d from Company D t o purchase a
$626,000 c a s h i e r ' s check payable to an escrow company i n c o n n e c t i o n
w i t h t h e purchase of a p r o p e r t y i n the name of an IZ/WR R e a l P r o p e r t y
LLC.
L. Unreported Income
94. Defendant ZUBERI had a l e g a l o b l i g a t i o n t o f i l e an U.S.
I n d i v i d u a l Income Tax R e t u r n , IRS Form 1040 ("Form 1040") f o r t h e
2012 c a l e n d a r y e a r because, a t a minimum, defendant ZUBERI r e c e i v e d
a p p r o x i m a t e l y $886,700 from Company B f o r campaign c o n t r i b u t i o n s t h a t
defendant ZUBERI i n s t e a d c o n v e r t e d to h i s own b e n e f i t .
N o t w i t h s t a n d i n g t h i s o b l i g a t i o n , defendant ZUBERI d i d not f i l e a Form
1040 r e p o r t i n g income he r e c e i v e d d u r i n g t h e 2012 c a l e n d a r y e a r .
95. On or about A p r i l 15, 2014, defendant ZUBERI and h i s spouse
caused the e l e c t r o n i c f i l i n g of a Form 1040 f o r t h e 2013 c a l e n d a r
y e a r . Defendant ZUBERI f a l s e l y r e p o r t e d on l i n e 22 of t h a t t a x
r e t u r n a t o t a l income of $182,211. T h i s amount was u n d e r s t a t e d
because, a t a minimum, the Form 1040 f a i l e d t o account f o r (a)
a p p r o x i m a t e l y $215,000 defendant ZUBERI r e c e i v e d from Company B f o r
c o n t r i b u t i o n s t o E v ent EE t h a t defendant ZUBERI i n s t e a d c o n v e r t e d t o
h i s own b e n e f i t and (b) a p p r o x i m a t e l y $2,223,000 defendant ZUBERI
c o n v e r t e d from U.S. Cares i n v e s t o r s d u r i n g t h e 2013 c a l e n d a r y e a r .
96. On or about A p r i l 15, 2015, defendant ZUBERI and h i s spouse
caused t h e e l e c t r o n i c f i l i n g of a Form 1040 f o r the 2014 c a l e n d a r
y e a r . Defendant ZUBERI f a l s e l y r e p o r t e d on l i n e 22 of t h a t t a x
r e t u r n a t o t a l income of $558,233. T h i s amount was u n d e r s t a t e d
because, a t a minimum, t h e r e t u r n f a i l e d t o account f o r (a)
a p p r o x i m a t e l y $5,650,000 defendant ZUBERI r e c e i v e d e i t h e r d i r e c t l y
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from S r i Lanka or i n d i r e c t l y from S r i Lanka through WR i n c o n n e c t i o n
w i t h t h e S r i Lanka-WR c o n t r a c t and which defendant ZUBERI expended
f o r h i s own p e r s o n a l b e n e f i t and (b) a p p r o x i m a t e l y $2,200,000
defendant ZUBERI c o n v e r t e d from U.S. Cares i n v e s t o r s d u r i n g t h e 2014
c a l e n d a r y e a r .
97. On or about October 14, 2016, defendant ZUBERI and h i s
spouse caused the e l e c t r o n i c f i l i n g of a Form 1040 f o r t h e 2015
c a l e n d a r y e a r . Defendant ZUBERI f a l s e l y r e p o r t e d on l i n e 22 of t h a t
t a x r e t u r n a t o t a l income of $1,959,992. T h i s t a x amount was
u n d e r s t a t e d because the r e t u r n f a i l e d t o account f o r (a) $1,000,000
r e c e i v e d from Company I by ACH, which s h o u l d have been accounted f o r
on defendant ZUBERI's Form 1040 as b u s i n e s s income, and (b)
a p p r o x i m a t e l y $1,000,000 defendant ZUBERI c o n v e r t e d from U.S. Cares
i n v e s t o r s d u r i n g t h e 2015 c a l e n d a r y e a r .
M. Defendant Z u b e r i ' s Lobbying and P u b l i c R e l a t i o n A c t i v i t i e s
Conducted a t the D i r e c t i o n and C o n t r o l of t h e S r i Lankan
Government
98. From i n or about December 2013 through i n or about October
2014, defendant ZUBERI d i r e c t e d and p e r s o n a l l y engaged i n l o b b y i n g
and p u b l i c r e l a t i o n s a c t i v i t i e s t a r g e t i n g U n i t e d S t a t e s e l e c t e d
o f f i c i a l s and t h e i r s t a f f , a t t h e d i r e c t i o n and c o n t r o l o f S r i Lanka.
Defendant ZUBERI (a) s o l i c i t e d , on b e h a l f of S r i Lanka, Members of
Congress t o a c c e p t a l l - e x p e n s e s - p a i d t r i p s t o S r i Lanka, (b) authored
e m a i l s and wrote p r o p o s a l s f o r S r i Lanka s e t t i n g f o r t h t h e s t r a t e g y
o f the i n f l u e n c e campaign, (c) i n t e r v i e w e d , recommended, and
n e g o t i a t e d s u b c o n t r a c t s w i t h l o b b y i s t s f o r S r i Lanka, (d) o r g a n i z e d
c o n f e r e n c e c a l l s w i t h l o b b y i s t s t o s e t f o r t h t h e i r r e s p o n s i b i l i t i e s ,
(e) c o o r d i n a t e d a s e r i e s of meetings i n Washington, D.C. between S r i
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Lankan o f f i c i a l s and U n i t e d S t a t e s S e n a t o r s , Congresspersons, and
t h e i r s t a f f , ( f ) p e r s o n a l l y i n t r o d u c e d members of a S r i Lanka
d e l e g a t i o n t o Members of Congress, and (g) p a r t i c i p a t e d i n meetings
w i t h U n i t e d S t a t e s Government o f f i c i a l s a t which the g o a l s of t h e S r i
Lanka d e l e g a t i o n were d i s c u s s e d .
99. From on or about A p r i l 26, 2014 through on or about J u l y
14, 2014, defendant ZUBERI d i r e c t e d Person P t o s i g n the S r i Lanka-WR
c o n t r a c t , c r e a t e BGS and WR, and open bank accounts f o r t h o s e
companies to i n s u l a t e and c o n c e a l defendant ZUBERI's c o n t r o l o f t h e
S r i Lanka l o b b y i n g and p u b l i c r e l a t i o n s e f f o r t , and defendant
ZUBERI's p e r s o n a l r e c e i p t of money from S r i Lanka. I n r e a l i t y , BGS
and WR a c t e d as a l t e r egos of defendant ZUBERI and a l l e f f o r t s
u ndertaken by those e n t i t i e s were, i n f a c t , d i r e c t e d by defendant
ZUBERI.
100. B e g i n n i n g on or about June 2, 2014, defendant ZUBERI
i n s t r u c t e d Person P t o s i g n c o n t r a c t s on b e h a l f of BGS i n which i t
r e t a i n e d v a r i o u s l o b b y i s t s t o support t h e S r i Lanka-WR c o n t r a c t .
Defendant ZUBERI i n s t r u c t e d Person P when t o pay l o b b y i s t s and o t h e r
s u b c o n t r a c t o r s on b e h a l f of BGS and WR. Defendant ZUBERI i n s t r u c t e d
Person P not t o pay c e r t a i n l o b b y i s t s , d e s p i t e t h e i r r e n d e r i n g of
s e r v i c e s .
N. FARA V i o l a t i o n s P e r t a i n i n g t o S r i Lanka
101. From i n or about December 2013 through i n or about October
2014, defendant ZUBERI was the agent o f S r i Lanka, and t h e r e f o r e had
p e r s o n a l r e g i s t r a t i o n o b l i g a t i o n s under FARA.
102. Defendant ZUBERI f a i l e d t o r e g i s t e r w i t h the Department of
J u s t i c e as a f o r e i g n agent of S r i Lanka p r i o r t o a c t i n g on S r i
Lanka's b e h a l f .
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103. I n an e f f o r t t o c o n c e a l h i s conduct a t t h e d i r e c t i o n and
c o n t r o l o f S r i Lanka, defendant ZUBERI d i r e c t e d Person P t o r e g i s t e r
BGS, r a t h e r t h a n defendant ZUBERI h i m s e l f . On or about June 2, 2014,
Person P f i l e d a FARA r e g i s t r a t i o n statement f o r BGS as an agent o f
S r i Lanka. On or about August 14, 2014, BGS f i l e d a supplemental
r e g i s t r a t i o n statement. I n each o f t h e s e 2014 r e g i s t r a t i o n
s t a t e m e n t s , BGS f a i l e d t o r e p o r t any of t h e money i t r e c e i v e d from
S r i Lanka, the money d i s b u r s e d t o companies under defendant ZUBERI's
c o n t r o l , or t h e money d i s b u r s e d t o v a r i o u s s u b c o n t r a c t o r s t h a t had
engaged i n the S r i Lanka l o b b y i n g and p u b l i c r e l a t i o n s e f f o r t .
104. On or about June 2, 2014, Person P f i l e d a " s h o r t - f o r m "
FARA r e g i s t r a t i o n s t a t e m e n t , i d e n t i f y i n g h i m s e l f as a d i r e c t o r o f
BGS.
105. On or about June 2, 2014, a t defendant ZUBERI's d i r e c t i o n ,
Person Q f i l e d a s h o r t - f o r m FARA r e g i s t r a t i o n s tatement, i d e n t i f y i n g
h i m s e l f as a d i r e c t o r o f BGS.
106. On or about August 14, 2014, defendant ZUBERI f i l e d a
s h o r t - f o r m FARA r e g i s t r a t i o n s tatement, c l a i m i n g t h a t BGS c o n t r a c t e d
w i t h him t o p r o v i d e c o n s u l t i n g work on b e h a l f o f S r i Lanka.
107. Defendant ZUBERI's s h o r t - f o r m statement c o n t a i n e d m a t e r i a l
f a l s e s t a t e m e n t s and o m i t t e d m a t e r i a l f a c t s . These i n c l u d e d , but
were not l i m i t e d t o , t h a t defendant ZUBERI w i l l f u l l y and f a l s e l y
c l a i m e d t h a t (a) BGS r e t a i n e d him as a c o n s u l t a n t when, i n f a c t , he
o r c h e s t r a t e d a l l of BGS's a c t i v i t i e s , (b) he engaged i n no p o l i t i c a l
a c t i v i t y on b e h a l f o f S r i Lanka, when, i n f a c t , he l o b b i e d t h e U n i t e d
S t a t e s Congress on b e h a l f o f S r i Lanka, ( c ) he m e r e l y r e c e i v e d a
s a l a r y from BGS " [ n ] o t based s o l e l y on s e r v i c e s r e n dered t o the
f o r e i g n p r i n c i p a l , " when, i n f a c t , he r e c e i v e d not a s a l a r y from BGS,
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but r a t h e r over $5,650,000 of S r i Lanka funds, and (d) he had made no
p o l i t i c a l c o n t r i b u t i o n s on h i s own b e h a l f d u r i n g t he p e r i o d b e g i n n i n g
60 days p r i o r t o the date of h i s o b l i g a t i o n t o r e g i s t e r t o t h e time
of t h e f i l i n g of the s h o r t - f o r m FARA r e g i s t r a t i o n statement, when, i n
f a c t , defendant ZUBERI made c o n t r i b u t i o n s t o dozens of e l e c t i o n
campaigns d u r i n g t h i s timeframe. I n a d d i t i o n , i n t h a t s h o r t - f o r m
s t a t e m e n t , defendant ZUBERI d i d not d i s c l o s e t he $3,500,000 and
$1,000,000 w i r e t r a n s f e r s he had r e c e i v e d i n t o t h e IZ/WR BofA account
i n May and June 2014, or the $500,000 i n S r i Lanka funds he had
c o n v e r t e d from WR to h i s own b e n e f i t i n J u l y 2014.
108. N o t w i t h s t a n d i n g WR's c o n t r a c t w i t h S r i Lanka, WR d i d not
r e g i s t e r under FARA a t any time d u r i n g t h e 2014 c a l e n d a r y e a r .
109. The net r e s u l t o f defendant ZUBERI's f a i l u r e t o r e g i s t e r
under FARA and the 2014 FARA f i l i n g s c o n t a i n i n g m a t e r i a l f a l s e
s t a t e m e n t s and m a t e r i a l o m i s s i o n s was t h a t the American p u b l i c was
unaware o f m i l l i o n s of d o l l a r s r o u t e d by S r i Lanka t o defendant
ZUBERI and the scope of h i s c o n c e r t e d and f o r e i g n - f u n d e d e f f o r t s t o
t r a n s f o r m U n i t e d S t a t e s f o r e i g n p o l i c y and p u b l i c o p i n i o n t o t h e
b e n e f i t of t h a t f o r e i g n government.
110. I n or about l a t e J u l y 2015, defendant ZUBERI was c o n t a c t e d
by a r e p o r t e r f o r an o n l i n e magazine, who u l t i m a t e l y p u b l i s h e d an
a r t i c l e r e p o r t i n g t h a t defendant ZUBERI had r e c e i v e d m i l l i o n s of
d o l l a r s from t h e former Government of S r i Lanka, f a i l e d t o make
r e q u i s i t e FARA d i s c l o s u r e s , and was the s u b j e c t of an i n v e s t i g a t i o n
by t h e U.S. Department of J u s t i c e i n Washington, D.C.
111. A f t e r h i s c o n t a c t w i t h t h e r e p o r t e r , but p r i o r t o t h e
p u b l i c a t i o n o f the a r t i c l e , defendant ZUBERI d i r e c t e d Person P t o
f i l e FARA r e g i s t r a t i o n m a t e r i a l p r e p a r e d by an a t t o r n e y r e t a i n e d by
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defendant ZUBERI. On or about August 1 1 , 2015, Person P i s s u e d a
l e t t e r t o NSD t o " d i s c l o s e v o l u n t a r i l y a r e l a t i o n s h i p between FARA
r e g i s t r a n t [BGS and WR], which was not on BGS's FARA r e g i s t r a t i o n . "
The l e t t e r f a l s e l y a s s e r t e d t h a t :
[WR] i s a US b u s i n e s s c o n s u l t i n g e n t i t y which performed s e r v i c e s f o r t h e Government of S r i Lanka [ ] i n c l u d i n g c o n s u l t i n g , r e s e a r c h , and r e l a t e d s e r v i c e s . [WR] d i d not p e rform any l o b b y i n g s e r v i c e s . [WR] a p p o i n t e d BGS t o h e l p i d e n t i f y and engage w i t h c o n s u l t a n t s who c o u l d advance [ S r i Lanka] p u b l i c p o l i c y i n t e r e s t s i n t h e US. There was no w r i t t e n c o n t r a c t or s p e c i f i c correspondence t o d i s c l o s e on E x h i b i t B to BGS' R e g i s t r a t i o n Statement. A d d i t i o n a l l y , t h e r e was no s e t f e e f o r t h e s e s e r v i c e s , and t h e r e was no s p e c i f i c term f o r t h e s e a c t i v i t i e s . The a c t i v i t y has ended and BGS has s i n c e f i l e d i t s t e r m i n a t i o n s tatement.
112. On or about September 9, 2015, over 20 months a f t e r h a v i n g
begun working a t t h e d i r e c t i o n and c o n t r o l of S r i Lanka, defendant
ZUBERI f i l e d a FARA r e g i s t r a t i o n s t a t e m e n t , i n c l u d i n g an a t t a c h e d
supplemental statement. I n the f i l i n g , defendant ZUBERI d i s c l o s e d
h i s r e c e i p t of $3,500,000 on May 9, 2014, and $1,000,000 on June 18,
2014, f o r " b u s i n e s s c o n s u l t i n g s e r v i c e , i n c l u d i n g n o n - s p e c i f i e d
amount f o r p u b l i c a f f a i r s . " Defendant ZUBERI a l s o d i s c l o s e d t h e S r i
Lanka-WR c o n t r a c t , defendant ZUBERI's p e r s o n a l campaign c o n t r i b u t i o n s
d u r i n g t h e r e l e v a n t timeframe, and d i s b u r s e m e n t s t o v a r i o u s l o b b y i s t s
and o t h e r s u b c o n t r a c t o r s .
113. Defendant ZUBERI's September 2015 FARA f i l i n g n e v e r t h e l e s s
c o n t a i n e d m a t e r i a l f a l s e s t a t e m e n t s and o m i t t e d m a t e r i a l f a c t s .
These i n c l u d e d , but were not l i m i t e d t o , t h a t defendant ZUBERI
w i l l f u l l y and f a l s e l y c l a i m e d t h a t he p r o v i d e d no s e r v i c e s to S r i
Lanka a f t e r September 2014. I n f a c t , on October 15, 2014, defendant
ZUBERI r e p o r t e d t o S r i Lanka o f f i c i a l s a pledge from a Member of
Congress to v i s i t S r i Lanka i n J a n u a r y 2015. I n a d d i t i o n , on
December 4, 2014, defendant ZUBERI promised a S r i Lanka o f f i c i a l t h a t
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he would " e x t e n d [ ] t he c u r r e n t c o n t r a c t up to March 2015 a t no c o s t
t o [ S r i L a n k a ] . "
114. Defendant ZUBERI's September 2015 FARA f i l i n g was
accompanied by a l e t t e r from h i s a t t o r n e y t h a t f a l s e l y d e s c r i b e d h i s
invo l v e m e n t as m e r e l y p r o v i d i n g b u s i n e s s c o n s u l t i n g s e r v i c e s t o S r i
Lanka and fu n d i n g t o BGS f o r p u b l i c a f f a i r s c o n s u l t i n g purposes. The
l e t t e r f a l s e l y s t a t e d t h a t FARA r e g i s t r a t i o n was not r e q u i r e d because
defendant ZUBERI engaged i n n o n - p o l i t i c a l work i n f u r t h e r a n c e o f
commerce, the S r i Lanka-WR c o n t r a c t was o n l y a b u s i n e s s c o n s u l t i n g
c o n t r a c t t h a t d i d not c a l l f o r l o b b y i n g by defendant ZUBERI or WR,
and defendant ZUBERI h i m s e l f d i d not conduct or p l a n to conduct any
l o b b y i n g or p u b l i c r e l a t i o n s work f o r S r i Lanka. I n f a c t , defendant
ZUBERI was the p r i m a r y o r g a n i z e r of p a i d p o l i t i c a l e f f o r t s t o mold
the o p i n i o n o f Members of Congress and e x e c u t i v e branch
a d m i n i s t r a t i o n o f f i c i a l s , a t the d i r e c t i o n and c o n t r o l of S r i Lanka.
115. On or about September 15, 2015, more t h a n 16 months a f t e r
WR c o n t r a c t e d w i t h S r i Lanka, WR f i l e d i t s i n i t i a l FARA r e g i s t r a t i o n
statement and a s s o c i a t e d forms. The f i l i n g d i s c l o s e d the two
$1,000,000 w i r e t r a n s f e r s WR r e c e i v e d from S r i Lanka i n J u l y 2014 and
September 2014. The f i l i n g f a l s e l y d e c l a r e d t h a t most o f WR's
a c t i v i t i e s were not r e p o r t a b l e p u r s u a n t t o FARA because o n l y a
p o r t i o n of the money d i r e c t e d t o BGS was f o r p u b l i c a f f a i r s
c o n s u l t i n g t h a t had been p r e v i o u s l y d i s c l o s e d by r e g i s t e r e d e n t i t i e s .
116. On or about September 15, 2015, BGS f i l e d supplemental FARA
r e g i s t r a t i o n s t a t e m e n t s . The BGS f i l i n g r e p o r t e d t h a t BGS had
engaged i n " g e n e r a l c o n s u l t a t i v e s e r v i c e s r e l a t e d t o some of f o r e i g n
p r i n c i p a l ' s work on government a f f a i r s " and f i n a l l y r e p o r t e d t h e
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money r e c e i v e d from defendant ZUBERI and WR as w e l l as d i s b u r s e m e n t s
t o v a r i o u s l o b b y i s t s and o t h e r s u b c o n t r a c t o r s .
117. These I n t r o d u c t o r y A l l e g a t i o n s a r e i n c o r p o r a t e d i n t o each
count of the I n f o r m a t i o n .
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COUNT ONE
[22 U.S.C. §§ 612, 618 (a) ( 2 ) ]
On or about August 14, 2014 and September 9, 2015, i n Los
Angeles County, w i t h i n the C e n t r a l D i s t r i c t of C a l i f o r n i a , defendant
IMAAD SHAH ZUBERI knowingly and w i l l f u l l y made and caused t o be made
f a l s e s t a t e m e n t s of m a t e r i a l f a c t , w i l l f u l l y o m i t t e d m a t e r i a l f a c t s
r e q u i r e d t o be s t a t e d t h e r e i n , and w i l l f u l l y o m i t t e d m a t e r i a l f a c t s
n e c e s s a r y to make the stat e m e n t s t h e r e i n and t h e c o p i e s o f documents
f u r n i s h e d t h e r e w i t h not m i s l e a d i n g , i n documents f i l e d w i t h and
f u r n i s h e d t o the A t t o r n e y G e n e r a l under the p r o v i s i o n s of t h e F o r e i g n
Agent R e g i s t r a t i o n A c t . S p e c i f i c a l l y :
I n box 11 of t h e s h o r t - f o r m r e g i s t r a t i o n statement f i l e d on or
about August 14, 2014, defendant ZUBERI f a l s e l y s t a t e d t h a t he was a
" C o n s u l t a n t t o B e l t w a y Government S t r a t e g i e s . " I n f a c t , as defendant
ZUBERI knew a t time he made the statement, he c r e a t e d and c o n t r o l l e d
B e l t w a y Government S t r a t e g i e s .
I n box 12 of the s h o r t - f o r m r e g i s t r a t i o n statement f i l e d on or
about August 14, 2014, defendant ZUBERI f a l s e l y s t a t e d t h a t h i s
s e r v i c e s t o the Government of S r i Lanka d i d not i n c l u d e p o l i t i c a l
a c t i v i t y , as d e f i n e d by FARA. I n f a c t , as defendant ZUBERI knew a t
the time he made the statement, ZUBERI's s e r v i c e s t o the Government
of S r i Lanka i n c l u d e d an e x t e n s i v e amount of p o l i t i c a l a c t i v i t y .
I n box 14 of the s h o r t - f o r m r e g i s t r a t i o n statement f i l e d on or
about August 14, 2014, i n response t o the q u e s t i o n , "What
compensation or t h i n g of v a l u e have you r e c e i v e d t o date or w i l l you
r e c e i v e f o r t h e above s e r v i c e s ? " , defendant ZUBERI f a l s e l y s t a t e d
t h a t he r e c e i v e d a s a l a r y from BGS " [ n ] o t based s o l e l y on s e r v i c e s
r e n d e r e d t o the f o r e i g n p r i n c i p a l " and i n t e n t i o n a l l y o m i t t e d t h a t he
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r e c e i v e d $3,500,000 i n May 2014 and $1,000,000 i n June 2014 s o l e l y
based on l o b b y i n g s e r v i c e s r e ndered t o S r i Lanka.
I n box 15 of the s h o r t - f o r m r e g i s t r a t i o n statement f i l e d on or
about August 14, 2014, defendant ZUBERI s t a t e d t h a t he had made no
p o l i t i c a l c o n t r i b u t i o n s on h i s own b e h a l f d u r i n g the p e r i o d b e g i n n i n
60 days p r i o r t o the date of h i s o b l i g a t i o n t o r e g i s t e r t o t h e time
of t h e f i l i n g of the s h o r t - f o r m FARA r e g i s t r a t i o n s tatement. I n
f a c t , as defendant ZUBERI knew a t t h e time he made the state m e n t , he
had c o n t r i b u t e d t o dozens of e l e c t i o n campaigns d u r i n g t h i s
t imeframe.
I n box 7 of the supplemental statement f i l e d on or about
September 9, 2015, defendant ZUBERI l i s t e d "09/30/2014" as t h e date
when h i s c o n n e c t i o n w i t h the Government of S r i Lanka t e r m i n a t e d .
S i m i l a r l y , i n box 14( a ) of t h e supplemental statement f i l e d on or
about September 9, 2015, defendant ZUBERI s t a t e d t h a t h i s
r e l a t i o n s h i p w i t h t he Government o f S r i Lanka "ended i n September
2014." I n f a c t , as defendant ZUBERI knew a t the time he made t h e s e
s t a t e m e n t s , he c o n t i n u e d t o a c t as an agent f o r the Government o f S r
Lanka a f t e r September 30, 2014.
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COUNT TWO
[26 U.S.C. § 7201]
From on or about May 9, 2014, t o on or about A p r i l 15, 2015, i n
Los Angeles County, w i t h i n t he C e n t r a l D i s t r i c t of C a l i f o r n i a ,
defendant IMAAD SHAH ZUBERI, a r e s i d e n t of E l Monte, C a l i f o r n i a ,
w i l l f u l l y attempted to evade and d e f e a t the assessment and payment of
the income t a x due and owing by him and h i s spouse t o the U n i t e d
S t a t e s of America f o r t h e c a l e n d a r y e a r 2014, by committing t h e
f o l l o w i n g a f f i r m a t i v e a c t s , among o t h e r s :
a. D i v e r t i n g over $5,650,000 r e c e i v e d f o r the purposes of
the S r i Lanka-WR c o n t r a c t t o the b e n e f i t of defendant ZUBERI and h i s
spouse; and
b. Causing t o be f i l e d w i t h t h e D i r e c t o r , I n t e r n a l
Revenue S e r v i c e C e nter, a t Fresno, C a l i f o r n i a , a f a l s e and f r a u d u l e n t
j o i n t U.S. I n d i v i d u a l Income Tax R e t u r n , Form 1040 t h a t s t a t e d t h e
j o i n t t o t a l income of defendant ZUBERI and h i s spouse f o r the
c a l e n d a r y e a r was $558,233 and t h a t t h e amount of t a x due and owing
t h e r e o n was $52,069. I n f a c t , as defendant ZUBERI then knew, t h e i r
j o i n t t o t a l income f o r t h e c a l e n d a r y e a r 2014 was i n e x c e s s o f
$5,650,000, and, upon t h e a d d i t i o n a l t a x a b l e income, an a d d i t i o n a l
t a x was due and owing t o the U n i t e d S t a t e s o f America.
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COUNT THREE
[52 U.S.C. §§ 30116, 30118, 30121, 30122, 3 0 1 0 9 ( d ) ( 1 ) ]
D u r ing the c a l e n d a r y e a r 2015, i n Los Angeles County, w i t h i n t h e
C e n t r a l D i s t r i c t of C a l i f o r n i a , defendant IMAAD SHAH ZUBERI knowingly
and w i l l f u l l y v i o l a t e d the F e d e r a l E l e c t i o n Campaign A c t , i n amounts
a g g r e g a t i n g a t l e a s t $25,000 d u r i n g t h a t c a l e n d a r y e a r , by (a) making
c o n t r i b u t i o n s i n th e names o f o t h e r i n d i v i d u a l s , (b) r e i m b u r s i n g
c o n t r i b u t i o n s made by o t h e r i n d i v i d u a l s , ( c) r e c e i v i n g reimbursements
from o t h e r i n d i v i d u a l s f o r c o n t r i b u t i o n s he made, (d) s o l i c i t i n g
c o n t r i b u t i o n s made by f o r e i g n n a t i o n a l s , and (e) making c o n t r i b u t i o n s
w i t h money r e c e i v e d from, or reimbursed by, f o r e i g n n a t i o n a l s and
f o r e i g n e n t i t i e s .
NICOLA T. HANNA Un i t e d S t a t e s A t t o r n e y
BRANDON D. FOX A s s i s t a n t U n i t e d S t a t e s A t t o r n e y C h i e f , C r i m i n a l D i v i s i o n
MACK E. JENKINS A s s i s t a n t U n i t e d S t a t e s A t t o r n e y C h i e f , P u b l i c C o r r u p t i o n &
C i v i l R i g h t s S e c t i o n
DANIEL J . O'BRIEN A s s i s t a n t U n i t e d S t a t e s A t t o r n e y Deputy C h i e f , P u b l i c C o r r u p t i o n &
C i v i l R i g h t s S e c t i o n
E L I S A FERNANDEZ A s s i s t a n t U n i t e d S t a t e s A t t o r n e y P u b l i c C o r r u p t i o n & C i v i l R i g h t s S e c t i o n
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EXHIBIT B - FACTUAL BASIS
FARA V i o l a t i o n s
Between November 28, 2013 through March 5, 2014, defendant met w i t h h i g h - r a n k i n g o f f i c i a l s of the Government of S r i Lanka ( " S r i Lanka") and n e g o t i a t e d an agreement whereby Avenue V e n t u r e s , or a s p e c i a l purpose company c r e a t e d by Avenue V e n t u r e s , would engage i n l o b b y i n g and p u b l i c r e l a t i o n s e f f o r t s t o r e h a b i l i t a t e S r i Lanka's image i n the U n i t e d S t a t e s . T h i s proposed l o b b y i n g and p u b l i c r e l a t i o n s e f f o r t f o c u s e d on m o d i f y i n g U.S. Government p o l i c i e s , p a r t i c u l a r l y through th e i s s u a n c e of C o n g r e s s i o n a l r e s o l u t i o n s , and improving p u b l i c p e r c e p t i o n r e l a t i n g t o S r i Lanka's a l l e g e d p e r s e c u t i o n of i t s m i n o r i t y T a m i l p o p u l a t i o n .
On A p r i l 26, 2014, WR Group ("WR") e n t e r e d i n t o a c o n t r a c t , e f f e c t i v e May 1, 2014, w i t h t he C e n t r a l Bank of S r i Lanka ( " S r i Lanka-WR c o n t r a c t " ) . The S r i Lanka-WR c o n t r a c t d e s c r i b e d WR's s e r v i c e s as " ( i ) s t r a t e g i c a d v i c e r e l a t e d t o commercial and p u b l i c p o l i c y c o n s i d e r a t i o n s r e l a t e d t o the US and o t h e r p a r t i e s ; " and ( i i ) " i d e n t i f i c a t i o n o f c o n s u l t a n t s or o t h e r l e g a l or n o n - l e g a l a d v i s o r s t o [ S r i Lanka] and C e n t r a l Bank as may e f f e c t u a t e S r i Lanka's commercial and d i p l o m a t i c o b j e c t i v e s . " I n r e t u r n , S r i Lanka-WR c o n t r a c t r e q u i r e d t he payment of $8,500,000 i n accordance w i t h t h e f o l l o w i n g s c h edule: $3,500,000 on May 1, 2014, and f i v e payments o f $1,000,000 per month from June through October.2014.
Defendant knowingly and w i l l f u l l y a c t e d as an u n r e g i s t e r e d agent o f S r i Lanka by t a k i n g t h e f o l l o w i n g a c t i o n s :
Between A p r i l 26, 2014 through J u l y 14, 2014, defendant d i r e c t e d P erson P t o s i g n the S r i Lanka-WR c o n t r a c t , c r e a t e B e l t w a y Government S t r a t e g i e s ("Beltway") and, l a t e r , WR t o engage i n l o b b y i n g and p u b l i c r e l a t i o n s s e r v i c e s , open bank acco u n t s f o r those companies, s i g n c o n t r a c t s on b e h a l f of B e l t w a y w i t h v a r i o u s l o b b y i s t s and p u b l i c r e l a t i o n s f i r m s , and d i r e c t e d whom Person P was t o pay and not pay on b e h a l f o f B e l t w a y and WR, a l l t o i n s u l a t e and c o n c e a l defendant's own invol v e m e n t w i t h B e l t w a y and WR. I n r e a l i t y , B e l t w a y and WR a c t e d as a l t e r egos of defendant and e f f o r t s u ndertaken by those e n t i t i e s were d i r e c t e d by defendant.
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From December 2013 through October 2014, defendant knowingly and w i l l f u l l y a c t e d as an u n r e g i s t e r e d agent of t h e GOSL. Defendant s o l i c i t e d , on b e h a l f of S r i Lanka, Members of the U.S. Congress t o ac c e p t a l l - e x p e n s e s - p a i d t r i p s t o S r i Lanka, authored e m a i l s and wrote p r o p o s a l s f o r S r i Lanka s e t t i n g f o r t h t h e s t r a t e g y of t h e campaign, i n t e r v i e w e d , recommended, and n e g o t i a t e d c o n t r a c t s w i t h l o b b y i s t s f o r GOSL, and c o o r d i n a t e d and p a r t i c i p a t e d i n a s e r i e s o f meetings i n Washington, D.C. between a GOSL d e l e g a t i o n and members of the U.S. Congress and t h e i r s t a f f .
On May 9, 2014 and June 18, 2014, S r i Lanka w i r e d $3,500,000 and $1,000,000, r e s p e c t i v e l y , i n t o defendant's p e r s o n a l bank account f o r s e r v i c e s r e l a t e d t o the S r i Lanka-WR c o n t r a c t . On each o f J u l y 18, 2014 and September 10, 2014, S r i Lanka w i r e d $1,000,000 i n t o a WR bank account. At defendant's d i r e c t i o n , Person P t r a n s f e r r e d t he m a j o r i t y of t h e s e funds i n t o a c c o u n t s c o n t r o l l e d by defendant, which defendant then used f o r h i s p e r s o n a l b e n e f i t .
Defendant knowingly and w i l l f u l l y f a i l e d t o r e g i s t e r under FARA, as r e q u i r e d by law. I n s t e a d , on June 2, 2014, he caused Person P t o f i l e FARA r e g i s t r a t i o n statement i d e n t i f y i n g B e l t w a y as an agent o f i t s p r i n c i p a l , S r i Lanka, when i n f a c t he was the agent of S r i Lanka. The r e g i s t r a t i o n statement c o n t a i n e d m a t e r i a l f a l s e s t a t e m e n t s and o m i t t e d m a t e r i a l f a c t s . On August 14, 2014, defendant caused Person P t o f i l e a supplemental statement on b e h a l f o f B e l t w a y , which a l s o c o n t a i n e d m a t e r i a l f a l s e s t a t e m e n t s and o m i t t e d m a t e r i a l f a c t s . At defendant's d i r e c t i o n , t h e s e two 2014 FARA r e g i s t r a t i o n f i l i n g s f a i l e d t o r e p o r t any of the money B e l t w a y r e c e i v e d from S r i Lanka, the money d i s b u r s e d t o companies under defendant's c o n t r o l , or the money d i s b u r s e d t o s u b c o n t r a c t o r s t h a t had engaged i n the S r i Lankan l o b b y i n g and p u b l i c r e l a t i o n s e f f o r t .
Defendant knew t h a t he, p e r s o n a l l y , was l e g a l l y r e q u i r e d t o f i l e w i t h the A t t o r n e y G e n e r a l a r e g i s t r a t i o n statement p u r s u a n t t o FARA because he had a c t e d as the agent of a f o r e i g n p r i n c i p a l , s p e c i f i c a l l y S r i Lanka. Defendant a l s o knew t h a t i t was u n l a w f u l t o f i l e a FARA r e g i s t r a t i o n statement c o n t a i n i n g m a t e r i a l f a l s e s t a t e m e n t s or m a t e r i a l o m i s s i o n s of f a c t .
Defendant knowingly and w i l l f u l l y f a i l e d t o f i l e a FARA R e g i s t r a t i o n as r e q u i r e d by law. I n s t e a d , on August 14, 2014, defendant f i l e d
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w i t h the A t t o r n e y G e n e r a l a s h o r t - f o r m FARA r e g i s t r a t i o n s t a t e m e n t , and a f f i r m e d t h e t r u t h and a c c u r a c y of t h e statement under p e n a l t y of p e r j u r y . Defendant knowingly and w i l l f u l l y f i l e d t h e s h o r t - f o r m FARA r e g i s t r a t i o n t h a t c o n t a i n e d m a t e r i a l l y f a l s e s t a t e m e n t s and o m i t t e d m a t e r i a l f a c t s . I n p a r t i c u l a r , defendant r e p r e s e n t e d i n s e c t i o n 7 t h a t he was m e r e l y a c o n s u l t a n t of B e l t w a y , when, i n f a c t , defendant d i r e c t e d a l l o f the a c t i v i t i e s of B e l t w a y . I n a d d i t i o n , defendant r e p r e s e n t e d i n s e c t i o n 14 t h a t he mer e l y r e c e i v e d a s a l a r y from B e l t w a y t h a t was " [ n ] o t based s o l e l y on s e r v i c e s rendered t o t h e f o r e i g n p r i n c i p a l . " I n f a c t , defendant r e c e i v e d not a s a l a r y from B e l t w a y , but $6,500,000 m i l l i o n from the f o r e i g n p r i n c i p a l , GOSL, i n r e t u r n f o r l o b b y i n g and p u b l i c r e l a t i o n s s e r v i c e s rendered t o GOSL. F i n a l l y , i n s e c t i o n 15, defendant r e p r e s e n t e d t h a t , f o r the p e r i o d b e g i n n i n g 60 days p r i o r t o the date of h i s o b l i g a t i o n t o r e g i s t e r t o the time of t h e s h o r t - f o r m , he had not made any c o n t r i b u t i o n s of money or o t h e r t h i n g s of v a l u e from h i s own funds on h i s own b e h a l f i n c o n n e c t i o n w i t h any e l e c t i o n t o p o l i t i c a l o f f i c e or i n c o n n e c t i o n w i t h any p r i m a r y e l e c t i o n , c o n v e n t i o n or caucus h e l d t o s e l e c t c a n d i d a t e s f o r any p o l i t i c a l o f f i c e . I n t r u t h , between F e b r u a r y 26, 2014 and August 14, 2014, defendant had made dozens of c o n t r i b u t i o n s of money from h i s own funds i n c o n n e c t i o n w i t h e l e c t i o n s t o p o l i t i c a l o f f i c e or p r i m a r y e l e c t i o n s t o s e l e c t c a n d i d a t e s f o r p o l i t i c a l o f f i c e . Defendant knowingly and w i l l f u l l y made t h e s e m a t e r i a l f a l s e s t a t e m e n t s and m a t e r i a l o m i s s i o n s on t h e s h o r t - f o r m FARA r e g i s t r a t i o n s t a t e m e n t .
On September 9, 2015, defendant f i l e d a FARA r e g i s t r a t i o n s tatement and an a t t a c h e d supplemental statement f o r h i m s e l f p e r s o n a l l y , which a l s o c o n t a i n e d m a t e r i a l l y f a l s e s t a t e m e n t s and o m i t t e d m a t e r i a l f a c t s . I n the f i l i n g , defendant w i l l f u l l y and f a l s e l y c l a i m e d t h a t he p r o v i d e d no s e r v i c e s t o S r i Lanka a f t e r September 2014. I n f a c t , on October 15, 2014, defendant r e p o r t e d t o GOSL o f f i c i a l s a pledge from a U n i t e d S t a t e s Congressman t o v i s i t S r i Lanka i n J a n u a r y 2015. I n a d d i t i o n , on December 4, 2014, defendant promised a GOSL o f f i c i a l t h a t he would " e x t e n d [ ] t h e c u r r e n t c o n t r a c t up t o March 2015 a t no c o s t t o t h e [GOSL]." Defendant's September 2015 f i l i n g was accompanied by a l e t t e r from h i s a t t o r n e y t h a t f a l s e l y d e s c r i b e d h i s inv o l v e m e n t as mer e l y p r o v i d i n g b u s i n e s s c o n s u l t i n g s e r v i c e s t o S r i Lanka and f u n d i n g t o B e l t w a y f o r p u b l i c a f f a i r s c o n s u l t i n g purposes. The l e t t e r f a l s e l y s t a t e d t h a t FARA r e g i s t r a t i o n was not r e q u i r e d because defendant engaged i n n o n - p o l i t i c a l work i n f u r t h e r a n c e of
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commerce. I n f a c t , defendant was the p r i m a r y o r g a n i z e r of p a i d p o l i t i c a l e f f o r t s t o mold the o p i n i o n of Members of Congress and Obama A d m i n i s t r a t i o n o f f i c i a l s , a l l a t the d i r e c t i o n and c o n t r o l o f , and t o b e n e f i t , S r i Lanka.
Tax V i o l a t i o n s
On A p r i l 15, 2015, defendant caused the e l e c t r o n i c f i l i n g of an IRS Form 1040, U.S. I n d i v i d u a l Income Tax R e t u r n f o r the 2014 c a l e n d a r y e a r , f o r h i m s e l f and h i s spouse. L i n e 22 of t h e t a x r e t u r n showed t o t a l income of $558,233 and l i n e 44 of the t a x r e t u r n showed a t a x amount o f $238,105. The t o t a l income and t a x amounts were u n d e r s t a t e d , because t h e r e t u r n f a i l e d t o account f o r payments of $3,500,000 and $1,000,000 w i r e d i n t o defendant's p e r s o n a l bank account and two payments of $1,000,000 each w i r e d i n t o a WR bank account by S r i Lanka f o r s e r v i c e s r e ndered i n accordance w i t h t h e S r i Lanka-WR c o n t r a c t . These amounts, l e s s any unclaimed b u s i n e s s expenses, should have fl o w e d through t o defendant's t a x r e t u r n as b u s i n e s s income. As a r e s u l t , Mr. Z u b e r i owed s u b s t a n t i a l l y more f e d e r a l income t a x f o r t h e 2014 c a l e n d a r y e a r t h a n was d e c l a r e d due on h i s income t a x r e t u r n f o r 2014.
When defendant caused t h e t a x r e t u r n t o be e l e c t r o n i c a l l y f i l e d , he knew t h a t t he S r i Lankan w i r e t r a n s f e r s were not i n c l u d e d i n the i n f o r m a t i o n p r o v i d e d to the t a x r e t u r n p r e p a r e r t o prep a r e t h e r e t u r n and, as a r e s u l t , t h a t more t a x was owed t h a n was d e c l a r e d due on h i s income t a x r e t u r n . By f i l i n g t h i s f a l s e r e t u r n , defendant attempted t o evade and d e f e a t t h i s a d d i t i o n a l t a x and he d i d so w i l l f u l l y , i n t h a t he knew f e d e r a l t a x law r e q u i r e d t h a t he f i l e a c c u r a t e t a x r e t u r n s and r e p o r t a c c u r a t e t a x due amounts, and he i n t e n t i o n a l l y and v o l u n t a r i l y caused the f i l i n g of a t a x r e t u r n t h a t he knew c o n t a i n e d u n d e r s t a t e d t a x due amounts.
Defendant r e c e i v e d g r o s s income i n 2012 t h a t r e q u i r e d him t o f i l e an income t a x r e t u r n w i t h t h e I R S . Defendant w i l l f u l l y f a i l e d t o f i l e a t a x r e t u r n f o r 2012 d e s p i t e knowing of h i s o b l i g a t i o n t o f i l e .
Defendant knowingly and w i l l f u l l y attempted t o evade and d e f e a t an income t a x by p r o v i d i n g i n a c c u r a t e numbers t o h i s t a x r e t u r n p r e p a r e r f o r 2013 and 2015 t h a t r e s u l t e d i n a s u b s t a n t i a l income t a x due and
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owing from the defendant i n a d d i t i o n t o t h a t d e c l a r e d i n h i s income t a x r e t u r n .
The t o t a l amount of t a x l o s s f o r the 2012 through 2015 t a x y e a r s i s between $3.5 m i l l i o n and $9.5 m i l l i o n .
FECA V i o l a t i o n s
D u r i ng t h e c a l e n d a r y e a r 2015, defendant knowingly and w i l l f u l l y (a) made c o n t r i b u t i o n s i n the names of o t h e r i n d i v i d u a l s , (b) reimbursed c o n t r i b u t i o n s made by o t h e r i n d i v i d u a l s , and (c) r e c e i v e d reimbursements from o t h e r i n d i v i d u a l s f o r c o n t r i b u t i o n s he made i n an amount a g g r e g a t i n g $25,000 and more, i n c o n n e c t i o n w i t h f e d e r a l e l e c t i o n s .
Defendant knowingly and w i l l f u l l y made campaign c o n t r i b u t i o n s i n t h e name of o t h e r i n d i v i d u a l s by making o n l i n e c o n t r i b u t i o n s w i t h c r e d i t c a r d s b e l o n g i n g t o h i m s e l f and h i s spouse. Defendant knew t h a t t h e names of the o t h e r i n d i v i d u a l s were not the t r u e s o u r c e s o f the money used f o r the c o n t r i b u t i o n s because he used h i s own money as the whole or p a r t i a l source o f those c o n t r i b u t i o n s . Defendant a l s o knew t h a t i t was u n l a w f u l t o make t h e s e c o n t r i b u t i o n s i n the names of o t h e r i n d i v i d u a l s u s i n g h i s own money.
Defendant knowingly and w i l l f u l l y s o l i c i t e d and reimbursed c o n d u i t c o n t r i b u t o r s f o r campaign c o n t r i b u t i o n s they had made. Defendant knew t h a t i t was u n l a w f u l t o make co n d u i t c o n t r i b u t i o n s or reimburse t h e c o n t r i b u t i o n s o f o t h e r s .
Defendant knowingly and w i l l f u l l y s o l i c i t e d and a c c e p t e d reimbursements from o t h e r i n d i v i d u a l s f o r campaign c o n t r i b u t i o n s defendant ZUBERI had made.
From 2012 through 2016, defendant made or s o l i c i t e d more th a n $250,000 but l e s s t han $1,500,000 i n campaign c o n t r i b u t i o n s i n v i o l a t i o n of the F e d e r a l E l e c t i o n Campaign A c t .
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Recommended
