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Inside the shocking Menendez indictment

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Sep 22, 2023 View in browser
 

By Eli Okun

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Sen. Bob Menendez (D-N.J.) is facing new corruption allegations. | Mariam Zuhaib, file/AP Photo

NOT GREAT, BOB — Federal authorities today unveiled stunning criminal corruption charges against Sen. BOB MENENDEZ (D-N.J.) and his wife, NADINE, which will immediately upend his political career and likely force him to step down as Senate Foreign Relations chair.

The allegations document corruption so brazen it looks like something out of a movie — or at least a bygone era of New Jersey politics — and with significant international implications. The Menendezes stand accused of taking large sums of money to sway American foreign policy more favorably toward Egypt and benefit three Jersey businessmen. More from Erica Orden and Matt Friedman … Joe Gould and Eric Bazail-Eimil dive into the indictment

When law enforcement searched Menendez’s home, they turned up $480,000 in cash hidden away, $70,000 more in Nadine’s safe deposit box and $100,000 worth of gold bars — and yes, there are photos in the 39-page indictment, including one of bundles of cash found inside a Menendez-monogrammed jacket. In just one of many incredible details, prosecutors allege that Menendez returned from an Egypt trip in 2021 and searched online for “how much is one kilo of gold worth.” Authorities say Menendez also received payments on his mortgage and a luxury car as bribes.

The official charges for the couple are conspiracy to commit bribery, conspiracy to commit honest services fraud and conspiracy to commit extortion. The businessmen were also charged. All are set to appear in a Manhattan courtroom Wednesday and are, of course, innocent until proven guilty.

In a defiant statement, Menendez defended himself against “baseless allegations” and theorized that he was being targeted by “the powers that be” because “they see me as an obstacle in the way of their broader political goals.”

He also harked back to his 2018 acquittal on unrelated corruption charges to warn that there’s another side to the story. Now as then, he suggested prosecutors have “misrepresented the normal work of a Congressional office” and mischaracterized “longstanding friendships.”

“They wrote these charges as they wanted; the facts are not as presented,” he said. “Prosecutors did that the last time and look what a trial demonstrates.”

Still, the new set of allegations are much more dire and well documented than the prior case, which centered around trips and campaign contributions. Per the indictment, prosecutors say that Menendez:

  • “provided sensitive U.S. Government information and took other steps that secretly aided the Government of Egypt,” including plans to keep “foreign military sales and foreign military financing” flowing despite human rights worries that might have cut them off;
  • tried to intervene in a criminal investigation into one of the businessmen;
  • recommended a nominee for U.S. attorney in New Jersey whom he thought he could sway on a different businessman’s prosecution; and 
  • tried to influence the Department of Agriculture to benefit one of the businessmen.

“The Senate Historical Office says Menendez appears to be the first sitting senator in U.S. history to have been indicted on two unrelated criminal allegations,” AP’s Jake Offenhartz reports. While most New Jersey pols and Democratic Party leaders have been quiet so far, Citizens for Responsibility & Ethics in Washington has called on Menendez to resign.

If Menendez does resign, New Jersey Gov. PHIL MURPHY would appoint his replacement. There’s no shortage of ambitious Democratic politicians in the state. Menendez was planning to run for reelection next year, and though he survived easily in 2018 after his last scandal, Republicans would love to take him on again now.

Speaking of scandal-plagued Garden State pols: Former Gov. JIM McGREEVEY is laying the groundwork for a comeback bid for Jersey City mayor, NYT’s Tracey Tully reports.

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WAR IN UKRAINE

BIG MOVE — President JOE BIDEN told Ukrainian President VOLODYMYR ZELENSKYY that the U.S. will start providing a small number of the long-range Army Tactical Missile Systems Kyiv has sought, NBC’s Courtney Kube, Julie Tsirkin, Monica Alba and Gabe Gutierrez scooped.

THE ECONOMY

STRIKE WATCH — The United Auto Workers is ramping up its strike: The union announced today that it will expand the walk-off to 38 more GM and Stellantis facilities across the country, per Nick Niedzwiadek. Ford was spared, as UAW President SHAWN FAIN said they were making more progress in those talks. The facilities are mostly small, but several thousand more workers are now set to strike. Read the UAW’s status report

Fain also officially invited Biden to come join the picket line in comments on Facebook Live, WaPo’s Jeanne Whalen, Lauren Kaori Gurley and Jeff Stein report.

A LITTLE TOO CONFIDENT — From D.C. to Wall Street, everybody’s feeling better these days that the U.S. will avoid tipping into a recession. But the unison could make economists or policymakers complacent — and the threat of something going wrong is rising, Sam Sutton reports. From strikes to a shutdown to student loan payments to gas prices to borrowing costs, plenty of potential economic disruptions are looming.

CONGRESS

NEW — “Schumer in talks with McConnell as shutdown fears grow: ‘We may now have to go first,’” by CNN’s Manu Raju

LATEST FROM McCARTHY — Speaker KEVIN McCARTHY is now planning to strip $300 million in funds for training of Ukrainians from the Defense spending bill as he tries to get it passed, a concession to Rep. MARJORIE TAYLOR GREENE (R-Ga.) and other hard-liners, per Punchbowl’s Jake Sherman. That will go up for a separate vote. The rule for the Defense bill is aiming for a Tuesday vote, per Jordain Carney. He also plans to try to pass a partisan stopgap bill next week.

BRACING FOR SHUTDOWN — As Washington careens toward a government shutdown, WaPo’s Tony Romm diagrams how the funding lacuna would hurt not only federal workers but Americans across the country. Among the interruptions that could mess up people’s lives: Some food safety and drinking water inspections would stop. Older people could struggle with getting new Medicare cards or resolving benefits issues. Aid programs for disasters like the Maui wildfires could stumble. Closed passport offices may ruin travel plans. And safety net programs will march toward running out of money. That’s to say nothing of the millions of federal employees who would go without pay.

 

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2024 WATCH

BENDING THE RULES — “Nevada Republicans brace for confusion as party eyes election rules that may favor Trump,” by AP’s Michelle Price and Gabe Stern in Reno: “The state GOP, which is led by [DONALD] TRUMP allies, is insisting on moving forward with a presidential caucus on Feb. 8 despite a new state law that set a primary election two days earlier. …

“But the party is poised to go further on Saturday when it’s expected to approve plans that some Nevada Republicans and Trump rivals argue would confuse and anger voters and further tilt the caucus for the former president. The proposed rules … include provisions to bar any candidate from the caucus if they’re on the primary ballot. They would also restrict super PACs, like the one Florida Gov. RON DeSANTIS is relying on, from trying to bolster support for candidates in a caucus.”

UP FOR DEBATE — The Democratic counterprogramming to next week’s GOP presidential debate in California will include Gov. GAVIN NEWSOM, DNC Chair JAIME HARRISON and Biden campaign manager JULIE CHÁVEZ RODRIGUEZ holding events centered on Latino voters, the L.A. Times’ Courtney Subramanian reports.

SURVEY SAYS — A new CNN/University of New Hampshire poll finds Biden leading Trump 52% to 40%, a notably stronger result for the president in a swing state than he’s been getting in most polls lately, Jennifer Agiesta and Ariel Edwards-Levy report. But Granite Staters aren’t enthusiastic about either — or about any of their primary competitors. Warning sign for the GOP: In hypothetical matchups between Biden and other top Republicans, between 9% and 16% of voters volunteer that they’d defect and cast a ballot for Trump instead in the general.

MORE POLITICS

BIG CHANGE — Dallas Mayor ERIC JOHNSON, a longtime Democrat who was just reelected to the nonpartisan office earlier this year, announces in a new WSJ op-ed that he’s switching to the GOP: “The future of America’s great urban centers depends on the willingness of the nation’s mayors to champion law and order and practice fiscal conservatism.”

 

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AMERICA AND THE WORLD

HOW IT HAPPENED — The five Americans released from Iran almost got tripped up by last-minute hurdles from Tehran that U.S. diplomats had to navigate, CNN’s Jennifer Hansler reports. In the final days, Iran threatened to release only some of the detainees without extra concessions from the U.S., but they backed down after the Americans held firm. Other interruptions — like the central bank head not being around to sign a document or Iran wanting everybody to have lunch together at the airport before the departure — promised delays. But ultimately ABRAM PALEY, ROGER CARSTENS and Qatari officials got the Americans home.

TAI’S BIND — USTR KATHERINE TAI today is delivering a speech to the World Trade Organization that seeks to reassure the world of America’s commitment to the body while also calling for major reforms, Gavin Bade reports. “The speech is part of a campaign from the Biden administration to convince a skeptical world that the U.S. wants to revive the moribund WTO. One of the international organization’s most critical functions, adjudicating trade disputes, has been incapacitated since Trump blocked new judges.”

IMMIGRATION FILES — As high levels of migrants keep arriving at the U.S. border, more are on the way: There are record numbers of Venezuelans currently crossing through Panama’s Darién Gap, WSJ’s Santiago Pérez reports.

JUDICIARY SQUARE

SCOTUS WATCH — “Coerced, censored, shut down: How will Supreme Court manage social media's toxic sludge?” by USA Today’s John Fritze and Jessica Guynn: “Legal experts say the Supreme Court term that begins next month could also be the most important in decades in determining the extent of the government’s power to regulate … online content.”

POLICY CORNER

LEAVING A LEGACY — Going further than he has before, Education Secretary MIGUEL CARDONA tells AP’s Collin Binkley and Carole Feldman that he’d consider using federal funding as a lever to get universities to drop legacy preferences in admissions.

 

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PLAYBOOKERS

IN MEMORIAM — “Dick Clark, a Democrat who won a US Senate seat by walking across Iowa, dies at 95,” by the Des Moines Register’s Stephen Gruber-Miller: “His work on the Foreign Relations Committee included chairing a subcommittee overseeing Africa, where he advocated for the end of apartheid in South Africa. … Clark then became a senior fellow and director of the congressional program at the Aspen Institute, where he organized seminars to educate members of Congress on policy issues.”

SPOTTED: Michael Wolff at Michael’s in NYC for lunch with Andy Stein.

OUT AND ABOUT — SPOTTED at a fundraiser at Ali and Charlie Whitley’s home for Changemakers, the PAC founded by Emily Lampkin with Ellen Walter to support Virginia Gov. Glenn Youngkin flipping the state Senate and holding the state House: Barry Bennett, Brooks Brunson-Pitts, Kristyn and Wally Burnett, Karrie and Aaron Cohen, Julie Conway, Marlene Colucci, Chris Cox, Gina and Rick Dearborn, Lee Dunn, Lavin Gartland, Cathy and Ed Gillespie, and Zac Moffatt.

— SPOTTED last night at a happy hour hosted by Hart Research for women in the polling industry: Laurie Yang, Molly O’Rourke, Alicia Simmons, Claire Chen, Alana Jenis, Maya Mosley, Nina Bajracharya, Kelly Schmitz, Uchenna Ijezie, Livia Baer-Bositis, Kat Ignatova and Celinda Lake.

— The ASCAP Foundation hosted a “We Write the Songs” event and dance party at the Library of Congress on Wednesday night, ahead of an advocacy day urging Congress to protect music creators’ rights. SPOTTED: Sens. Marsha Blackburn (R-Tenn.), Rand Paul (R-Ky.), Bill Hagerty (R-Tenn.), Cynthia Lummis (R-Wyo.) and Jacky Rosen (D-Nev.), and Reps. Madeleine Dean (D-Pa.), Darrell Issa (R-Calif.), Derek Kilmer (D-Wash.), Ro Khanna (D-Calif.), Mary Gay Scanlon (D-Pa.), Debbie Wasserman Schultz (D-Fla.), Mark Green (R-Tenn.), Hank Johnson (D-Ga.), Judy Chu (D-Calif.), Jerry Nadler (D-N.Y.), Ted Lieu (D-Calif.), Ben Cline (R-Va.), Raul Ruiz (D-Calif.), Gary Palmer (R-Ala.), Tim Burchett (R-Tenn.), Bruce Westerman (R-Ark.), Debbie Lesko (R-Ariz.), Tom Kean Jr. (R-N.J.), Brian Babin (R-Texas), Lloyd Doggett (D-Texas), Morgan Griffith (R-Va.), John Joyce (R-Pa.), Doug Lamborn (R-Colo.), Jake LaTurner (R-Kan.), Laurel Lee (R-Fla.), Teresa Leger Fernandez (D-N.M.), Debbie Lesko (R-Ariz.), Nancy Mace (R-S.C.), Chellie Pingree (D-Maine), Jan Schakowsky (D-Ill.), Jason Smith (R-Mo.), Michael Turner (R-Ohio) and Tim Walberg (R-Mich.).

— SPOTTED at SK Group’s U.S. Senate Korea Caucus reception, hosted at the Invariant townhouse: Sens. Bill Hagerty (R-Tenn.) and Jon Ossoff (D-Ga.), Grace Kim, Allen Jamerson, Kelsey Flora, Monica Trauzzi, Nicole Venable, Landon Stropko, Josh Altman, Rey Benitez, Kelly Boyer and Mary-Eileen Manning.

— Jeffrey J. Kimbell & Associates hosted a happy hour reception on their Penn Quarter office rooftop Wednesday evening. SPOTTED: Reps. Blake Moore (R-Utah), Mariannette Miller-Meeks (R-Iowa) and Greg Murphy (R-N.C.), Conor Sheehey, Gable Brady, Natalie Burkhalter, Grace Graham, Taylor Hittle, Seth Waugh, Elliott Guffin, Alex Stepahin and Sarah Gilbert. At the after-party at Hill Country Barbecue, John Ray got the crowd going to Def Leppard’s “Pour Some Sugar on Me.”

TRANSITIONS — Dave McCormick’s Pennsylvania Senate campaign has added Matt Gruda as campaign manager, Elizabeth Gregory as comms director and Nathaniel Sizemore as press secretary. Gruda most recently was political director for Sen. Marco Rubio’s (R-Fla.) reelect. Gregory most recently was comms director for Rubio’s reelect. Sizemore most recently was comms director for Sen. Deb Fischer (R-Neb.). … Steve Tilton is now SVP of federal advocacy at PhRMA. He previously was head of U.S. government affairs at Takeda. …

… Patrick Sweeney is now VP for political and public affairs at Content Creative Media. He previously founded Targeted Strategies. … Sarah Hummell is launching a new firm, Retail Politics, with tailored training, one-on-one coaching and staffing solutions. She most recently was a VP at the Sexton Group, and is a DCCC alum. … Mark Adams will be VP for external relations and resource development at the International Foundation for Electoral Systems. He previously was director of institutional fundraising at Population Services International.

ENGAGED — Austin Maslyn, a cybersecurity engineer at Guidepoint Security, and Savannah Behrmann, Senate correspondent at National Journal and a USA Today and CNN alum, got engaged Sept. 7 during sunrise in Madeira, Portugal. They met in college at George Mason. Pic … Another pic

BONUS BIRTHDAY: Elizabeth Markus of House Appropriations

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