Thomas Barrack, owner of Happy Canyon Vineyard, was indicted on seven counts: two alleging that he acted as an unregistered agent of the United Arab Emirates, and five alleging that he lied to the FBI about it. Tom Barrack, the former CEO of Colony Capital who chaired President Donald Trumps inauguration in 2017, was arrested Tuesday on charges that he sought to influence the campaign and the Trump administration while acting as an unregistered agent of the United Arab Emirates. (Photo By Tom Williams/CQ Roll Call) (CQ Roll Call via AP Images), Tom Sizemore Dies: 'Saving Private Ryan' & 'Black Hawk Down' Star Was 61; Reactions + Career In Photos, Ron DeSantis Appointee To Disney World Special District Pushed Conspiracy Theory That Tap Water May Be Turning People Gay Report, Joe Biden Had Basal Cell Cancerous Tissue Removed From Chest, His Doctor Says, Second Gentleman Doug Emhoff To Headline Starz and MPA Event On Importance Of Women Leaders In Government And Entertainment. But this only serves to make Barrack's level of influence, wealth, trust, and direct access to Trump and the Emirati royal family look all the more extraordinary. The New York Times reported in 2019 that investigators had interviewed Barrack. Barrack, who was charged with two other men in a seven-count indictment in Brooklyn, New York, federal court, was chairman of Trump's 2017 inaugural fund. In the past Mr. Grimes was Managing Director at DigitalBridge Group, Inc. A century later, Section 951 is still being used to prosecute covert foreign agents. Serving Brick & Mortar and e-Commerce Liked by Matt Grimes Encina. 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After Trump was elected president, Barrack allegedly sat down with UAE officials and told them to come up with a wish list of policy items they wanted to accomplish at various points of the Trump administration. Barracks exit came on the heels of a campaign by activist investor Blackwells Capital to oust him from the business as his political connections and role in Trumps 2016 inauguration came under increased scrutiny. Matthew Grimes Email Address . WASHINGTON Billionaire businessman Tom Barrack is facing criminal charges that are typically described as "illegal foreign lobbying," or violating "foreign lobbying" laws. One of the events that caught their attention was a speech about energy policy that Trump gave as a candidate for president in May 2016. The three communicated secretly with senior UAE officials using a dedicated cell phone and a secure messaging application, according to the indictment. Sketches from the hearing at US District Court in DC for Maria Butina, September 10, 2018. FARA is a regulatory reporting rule that applies to anyone representing a "foreign principal." A friend of Trump's for decades, Barrack emerged as an early backer of Trump's presidential bid long before many on Wall Street considered the real estate developer a serious contender for the White House. Bill Coffield, an attorney for al Malik who was not in custody Tuesday said his client had cooperated extensively with the office of special counsel Robert Mueller and that there was nothing new here. He said al Malik had simply tried to foster a good relationship between the country where he was born and the U.S., where he lived and worked for years, both of which he loves.. Federal prosecutors also charged Matthew Grimes, a former Colony executive who reported directly to Barrack, and Rashid Al Malik, a UAE national who was living in California on a student. One Colony NorthStar employee - Matthew Grimes. Before entering federal court in Brooklyn, Barrack was pursued by a man holding a placard with the word TRAITOR in black block caps. Prosecutors allege that starting in April 2016, Barrack and Matthew Grimes, a junior employee at Colony Capital, conspired with Emirati national Rashid Sultan Rashid Al Malik Alshahhi to leverage Barrack's access to Trump in order to carry out directives they received from top Emirati government officials. Signup for Breaking News Alerts & Newsletters. ", For the next two years, prosecutors allege, Barrack "sought and received direction and feedback, including talking points, from senior UAE officials in connection with national press appearances Barrack used to promote the interests of the UAE.". Theres a provision in the agreement that in which both parties agree to negotiate in good faith to increase the amount, provided I need to do so although theres no obligation by any party in the agreement to increase the amount, responded Grimes. A trial is set for both Grimes and Barrack in Brooklyn federal court on Sept. 7, which is when jury selection is scheduled to begin. But there could be a good reason for this. Compare Standard and Premium Digital here. Defense lawyers for Grimes, who started as an intern and eventually traveled the world with Barrack, argued in a court filing Monday that they now have competing trial strategies with the Barrack team. The indictment charges that Barrack "inserted language praising the UAE" into the speech, and "emailed an advance draft of the speech to [Al Malik] for delivery to senior UAE officials. "What Section 951 does, really, is divide the world into diplomats and spies: Diplomats present their credentials and they are officially recognized as representatives of a foreign government. Federal prosecutors have been investigating Barrack's alleged work on behalf of the UAE for at least two years. Prosecutors also claim that Barrack and Grimes acquired a dedicated cell phone and secure messaging app for Barracks communications with senior UAE officials. This documentary-style series follows investigative journalists as they uncover the truth. All Access Digital offer for just 99 cents! The origins of Section 951 predate those of the FARA rules, tracing back to the early years of World War I. There are 200+ professionals named "Matthew Grimes", who use LinkedIn to exchange information, ideas, and opportunities. 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Through this indictment, we are putting everyoneregardless of their wealth or perceived political poweron notice that the Department of Justice will enforce the prohibition of this sort of undisclosed foreign influence.. Previously a reporter for Courthouse News, he has appeared as a guest on NewsNation, NBC, MSNBC, CBS's "Inside Edition," BBC, NPR, PBS, Sky News, and other networks. We want to hear from you. Barrack and Stone are the men credited with recommending Manafort to Trumps campaign team. Barrack, the founder of investment firm Colony Capital and a longtime Trump ally, was also charged with obstructing justice and making false statements. Tom Barrack made himself voluntarily available to investigators from the outset, Herrington wrote in an email. Data is a real-time snapshot *Data is delayed at least 15 minutes. Trump ally Tom Barrack arrested on foreign lobbying charges. We support credit card, debit card and PayPal payments. The indictment claims that Barrack, an informal adviser to Trumps campaign, sought an appointment to a senior government role as Trump took office, including that of special envoy to the Middle East. In 1917, Section 951's precursor was enacted as part of the Espionage Act. In 2018, Maria Butina pleaded guilty to conspiracy to violate Section 951 after she was indicted for trying to infiltrate conservative political organizations, most notably the National Rifle Association, on behalf of the Russian government. Thomas Barrack, a private equity investor, was arrested with two other men on charges related to illegally lobbying his close friend former President Donald Trump for the United Arab Emirates while Trump was running for and serving as president. Also charged for illegal lobbying were Matthew Grimes, 27, of Aspen, Colorado, along with a UAE national, Rashid Sultan Rashid Al Malik Alshahhi, aka Rashid Al Malik and Rashid AlMalik, 43.. Indictment Topic (s): Foreign Corruption National Security Component (s): USAO - New York, Eastern Contact: John Marzulli United States Attorney's Office (718) 254-6323 Updated July 20, 2021 But the federal statute under which Barrack was charged, Section 951 of the U.S. Criminal Code, is used by the Justice Department to prosecute spies, not lobbyists. Read More About: For More . The chairman of former President Donald Trumps 2017 inaugural fund has been arrested on federal charges for illegally lobbying on behalf of the United Arab Emirates, the Department of Justice announced Tuesday. Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, What Led to Europes Deadliest Train Crash in a Decade, This Week in Crypto: Ukraine War, Marathon Digital, FTX. This is not like I had represented Mr. Barrack in the past or whatever, Lowell told the judge. ", Prosecutors also said that Barrack had met with and assisted senior leaders of the Kingdom of Saudi Arabia, which is a close UAE ally, and that he "provided UAE government officials 'with sensitive non-public information about developments within the Administration, including information about the positions of multiple senior United States government officials with respect to the Qatari blockade conducted by the UAE and other Middle Eastern countries.'". His reporting on the trial of Ghislaine Maxwell was featured on the Starz and Channel 4 documentary "Who Is Ghislaine Maxwell?" All Rights Reserved. Also charged in a seven-count indictment were Matthew Grimes, 27, of Aspen, Colorado, who is a former executive at Barrack's company, and Rashid al Malik, 43, a businessman from the United Arab . He is an accomplished and a highly experienced global infrastructure investor, bringing more than two decades of relevant industry and transaction expertise to DigitalBridge. The defendants repeatedly capitalized on Barracks friendships and access to a candidate who was eventually elected President, high-ranking campaign and government officials, and the American media to advance the policy goals of a foreign government without disclosing their true allegiances, said acting Assistant Attorney General Mark Lesko of the Justice Departments National Security Division. Matthew Grimes, an Aspen, Colorado resident who worked for Barracks company Colony Capital, was arrested on the same day as his former boss and also pleaded not guilty. In 2010, the FBI arrested 10 Russian nationals across New Jersey, New York and Virginia, and accused them of living in the United States illegally, some for more than a decade, and posing as Americans in order to gather intelligence on behalf of Russia's intelligence service, the SVR. Both have pleaded not guilty to charges they covertly worked as agents on behalf of United Arab Emirates, from April 2016 to April 2018, to influence President Trumps foreign policy. (Photo by Michael M. Santiago/Getty Images), Have a tip we should know? They both apply to people working on behalf of noncommercial foreign entities, and they both contain disclosure requirements. His continued, imperial reign over the company damages its credibility and business prospects, and creates a tremendous overhang on the stock.. Also charged for illegal lobbying were Matthew Grimes, 27, of Aspen, Colorado, along with a . Those plans were delayed in the lead-up to a bail hearing. Authorities arrested both Barrack, 74, and Grimes, 28, in California on July 20 following grand jury indictments. According to emails and text messages contained in the indictment, Barrack also passed intelligence via Al Malik back to UAE government officials about internal discussions taking place in the White House. Charged with Barrack are Matthew Grimes, 27, of Aspen, Colorado, and a 43-year-old UAE national, Rashid Sultan Rashid Al Malik Alshahhi, who remains at large. Simply log into Settings & Account and select "Cancel" on the right-hand side. Barrack then sought to advise Trump against holding the summit, which never happened. His Dubai-based real estate fund has neither a website nor a physical address. For the latest news, follow us on Facebook, Twitter, and Instagram. Grimes has a "close personal relationship" with Barrack, has taken more than 50 international trips on Barrack's private plane, and lists Barrack's $15 million home in Aspen as his primary residence, prosecutors said in a court filing. Swipe is only available in chrome dev tools mobile mode. In 2019, The Intercept news site reported that Al Malik had been on the payroll of the National Intelligence Services of the UAE, which reportedly paid him tens of thousands of dollars a month in 2017 to gather information on the Trump administration. Tom Barrack, once an informal adviser to Donald Trump and former CEO of Colony Capital, . Get our latest storiesin the feed of your favorite networks. The indictment claims that Alshahhi worked as an agent of the UAE and was in frequent contact with Barrack and Grimes. Noting that Forbes estimated his net worth at $1 billion in March 2013 and his access to a private plane, prosecutors called him an extremely wealthy and powerful individual with substantial ties to Lebanon, the UAE, and the Kingdom of Saudi Arabia who poses a serious flight risk in a letter filed prior to his appearance. He is the host of Law&Crime podcast "Objections: with Adam Klasfeld.". He served just under two years in prison and was released in June of last year. By subscribing, I agree to the Terms of Use and Privacy Policy. Experience is a plus but not required for the right, NOW HIRING Electricians (Apprentices & Journeyman) Service Technicians Work is in the Basalt/Aspen Area We Offer: Excellent Pay, ATLANTIC AVIATION Aircraft Refueler/ Line Service Tech Customer Service Agent Starting pay $22/hr 4 day work week! Barrack was ordered detained in Los Angeles pending a bail hearing next Monday. The cap is $2 million, which will be wired into an account that will be overseen by Mr. Lowell, my attorney. Do you understand that?, Replied Grimes: Your honor, very respectfully, I dont think theres a conflict or risk whatsoever, but I understand what you are saying.. analyse how our Sites are used. Also charged in a seven-count indictment were Matthew Grimes, 27, of Aspen, Colorado, who is a former executive at Barracks company, and Rashid al Malik, 43, a businessman from the United Arab Emirates who prosecutors said acted as a conduit to that nations rulers. Jan 2001 - Nov 202120 years 11 months. Try for free at rocketreach.co . "Barrack is surreptitiously providing the U.S. government with information that the UAE wants the government to hear, but he's also providing back to the UAE confidential information about what he learned was going on within the federal government. Barrack served as an informal adviser to Trumps campaign in 2016 before becoming the inaugural committee chair. By the spring of 2016 when Trump began to sweep primaries, Barrack and Trump's daughter, Ivanka Trump, convinced him that he needed to hire a real campaign manager. "But they can prove this person was operating under the direction of a foreign government, and did not inform U.S. authorities that they were in this role.". Also charged for illegal lobbying were Matthew Grimes, 27, of Aspen, Colorado, along with a UAE national, Rashid Sultan Rashid Al Malik Alshahhi, aka Rashid Al Malik and Rashid AlMalik, 43.. 2023 CNBC LLC. The hearing was prompted by a Dec. 23-dated letter from federal prosecutors in New York requesting the judge to query Grimes about the potential for a conflict of interest. Matthew Grimes, an assistant to Barrack at his company Colony Capital, was charged along with Barrack in July with acting as a back channel for the United Arab Emirates to influence US policy. You can still enjoy your subscription until the end of your current billing period. In 2010, Colony Capital was among the investment firms that purchased Miramax from The Walt Disney Co., and Barrack served as chairman of the indie unit until it was sold in 2016. Contact Lance at 970-618-9335 lburwell@ alpineproperty.com, Do you want to enjoy going to work? Matthew Grimes, an assistant to Colony Capital LLC founder Tom Barrack, asked a judge for a separate trial from his boss on charges they were unregistered agents who tried to influence the President Donald Trump administration on behalf of the United Arab Emirates. "The prosecutors may not be able to prove espionage, which has a very high bar," he said. Which means this case is really about national security. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. As was Matthew Grimes, a California resident who worked for Barrack's investment firm. He was J.P. and Deputy Lieutenant of Surrey. During your trial you will have complete digital access to FT.com with everything in both of our Standard Digital and Premium Digital packages. He understands the risk and possible consequences of the potential conflict and then he nevertheless wants to proceed with Mr. Lowell and his attorneys for his case.. "I think that's one of the reasons why they chose 951 is because you have both pieces, trying to influence U.S. foreign and domestic policy, and sharing information back with a foreign government," he said. "The summit never happened.". Section 951, on the other hand, is focused on whom the agent is doing it for: a foreign government. Barrack is charged under the same statute used against Russian agent Maria Butina. Thomas Joseph Barrack, 74, of Santa Monica, California; Matthew Grimes, 27, of Aspen, Colorado; and Rashid Sultan Rashid Al Malik Alshahhi, aka Rashid Al Malik and Rashid AlMalik, 43, a UAE national, are accused of acting and conspiring to act as agents of the UAE between April 2016 and April 2018. He is not guilty and will be pleading not guilty.". Barrack pressed Trump to bring on Paul Manafort, a longtime Washington fixture and Republican lobbyist. As alleged in the indictment, the defendants used Barracks status as a senior outside advisor to the campaign and, subsequently, to senior U.S. government officials, to advance the interests of and provide intelligence to the UAE while simultaneously failing to notify the Attorney General that their actions were taken at the direction of senior UAE officials, a DOJ press release states. organisation The UAE signed onto the 2020Abraham Accords, which took steps toward normalizing relations between a handful of Middle East nations, including Israel. Summary. He was released on a $5 million bond on . Barrack spoke at the Republican National Convention in 2016 about his friendship with Trump, even quipping that the candidate, in a business deal, played me like a Steinway Piano. In 2010, Colony Capital was among the investment firms that purchased Miramax from The Walt Disney Co., and Barrack served as chairman of the indie unit until it was sold in 2016. Text messages and emails between Barrack and former Trump campaign chairman Paul Manafort obtained by the House Oversight Committee in 2019 shed additional light on the exchanges recounted in the indictment. The indictment said that in December 2016, a month after Trump's election, Barrack attended a meeting with Grimes, Al Malik and senior UAE government officials, where he advised them to create a "wish list" of U.S. foreign policy items that the UAE wanted to be accomplished during different time spans in the new administration. But after Trump won the White House, Trump's son-in-law, Jared Kushner, intervened, and Barrack did not get the job. Barrack was also charged with conspiracy, obstruction of justice and lying to federal agents. One of the spies, Anna Chapman, briefly gained notoriety as a TV personality. Matthew Grimes lived in Barracks home, took trips with boss, Prosecutors likely to pressure Grimes to turn on his mentor. Last November, then-Secretary of State Mike Pompeo announced that the Trump administration would sell more than $23 billion worth of military equipment to the UAE "in recognition of our deepening relationship" and the nation's "need for advanced defense capabilities to deter and defend itself against heightened threats from Iran.". Yet if the objective of these Russian spying operations was to infiltrate the halls of power and gain access to state secrets, they all failed. He was also charged. Prosecutors describe in court documents the breathtaking lengths the trio went in their attempt to sway the Trump White Houses Middle East agenda. Get Morning Report and other email newsletters, By Brian Melley and Larry Neumeister | Associated Press. The indictment also said that in the following March, Barrack and the other two men agreed to promote the candidacy of a person favored by top UAE officials for the position of U.S. ambassador to that country. Prosecutors allege that although that didnt happen, Barrack continued to try to use his influence with administration officials on behalf of the UAE. The seven-count indictment also was unsealed read it here and was brought by federal prosecutors in New York. Sir Thomas Grimes or Grahme was an English politician who sat in the House of Commons between 1614 and 1624.. Grimes was the son of Thomas Grimes, citizen and haberdasher of London and of Peckham and his wife Jane Muschamp daughter and co-heir of Thomas Muschamp, of Peckham. Got a confidential news tip? Matthew Grimes - President/Partner - The Armstrong Company | LinkedIn Matthew Grimes Operations Management/Strategic Planning/Business Development/Contract Negotiation/Business. Prosecutors said that Barrack in communications with Al Malik "framed his efforts to obtain an official position within the Administration as one that would enable him to further advance the interests of the UAE, rather than theinterests of the United States.". The members of the 2010 spy ring never made inroads in the national security and economic circles they'd hoped to. Both are charged with acting as unregistered foreign agents, Grimes cites competing strategies for September trial. At the time, the White House referred questions from The Intercept about Al Malik to the CIA. Barrack and Grimes also solicited direction from senior UAE officials in advance of the publication of an op-ed authored by Barrack, which Fortune magazine published in 2016. All Rights Reserved. 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