Catastrophe (28 page)
Authors: Dick Morris
DLA Piper also has offices and clients in Egypt, Abu Dhabi, Kuwait, and Oman and an affiliation with a law firm in Saudi Arabia. Could this be a problem for the new Middle East envoy?
It’s something to think about.
The sheikh, Dubai, and the Embassy of Turkey were formally withdrawn as DLA Piper clients in a filing with the Justice Department just two days after Obama’s inauguration, when Mitchell’s new post had already been announced. Was this an attempt by Mitchell to distance himself and the firm from their longtime clients?
But DLA Piper was registered as a foreign agent for the United Arab Emirates in December 2008.
Coincidentally, Mitchell visited both Turkey and Abu Dhabi on his second trip to the Middle East, in February 2009. This was doubtless helpful to DLA Piper and its clients in the region—even though Mitchell did nothing to benefit them. Just being able to point to the enormous influence of their former partner (who might someday return) is valuable.
As a foreign envoy for the U.S. government, George Mitchell has a staggering number of potential conflicts of interests. Just look at the amazing scope of DLA Piper’s lobbying client list for 2008:
DLA PIPER LOBBYING CLIENTS AND FEES, 2008
Total Lobbying Income, 2008: $11,670,000
Client | Total |
|---|---|
Akbar Nikooie (Iran human rights) | $80,000 |
Amazon.com | $40,000 |
American Council of Life Insurers | $200,000 |
American International Group | $0 |
AON Corp. | $30,000 |
Arnouse Digital Devices | $0 |
Assn of Pool & Spa Professionals | $30,000 |
Bba Aviation Services Group | $10,000 |
BDO International | $0 |
BP | $0 |
Bristol-Myers Squibb | $20,000 |
Canfor Corp. | $880,000 |
Cape Wind Assoc | $120,000 |
Career Builder.com | $60,000 |
Charles Schwab & Co. | $40,000 |
Check Free Corp. | $0 |
Citizens Financial Group | $280,000 |
Comcast Corp. | $160,000 |
Corradino Group | $60,000 |
Dewey Square Group | $0 |
Diageo | $720,000 |
DLA Piper | $100,000 |
Dubai Group (re Foreign Investment) | $110,000 |
Dubai—Executive Office | $480,000 |
eBay | $10,000 |
Emirates Investment & Development | $90,000 |
Experian Group | $60,000 |
Federal Home Loan Bank of Indianapolis | $230,000 |
First Kuwaiti Gen Trading & Contracting | $240,000 |
Gemological Institute of America | $80,000 |
General Cigar Holdings | $200,000 |
Genesee County Drain Commissioner | $200,000 |
Ghaemi, Saied (Iran human rights) | $150,000 |
Globe Metallurgical | $430,000 |
Greenhunter Energy | $190,000 |
Home Buyers Warranty | $30,000 |
I Have a Dream Foundation | $0 |
Independent Fuel Terminal Operators Association | $120,000 |
Ingersoll-Rand | $0 |
Interactive Gaming Council | $180,000 |
Irving Oil | $140,000 |
JD Irving | $0 |
Jones Lang LaSalle | $150,000 |
Kerzner International Resorts | $0 |
Kiawah Resort Association | $180,000 |
Kopin Corp. | $0 |
Kraft Foods | $410,000 |
Lane Hospitality | $0 |
Lebanon Renaissance Institute | $530,000 |
Lehman Brothers | $70,000 |
Limited Brands | $30,000 |
Lloyd’s of London | $0 |
Lockheed Martin | $100,000 |
Magna Entertainment | $90,000 |
Maine Veterans Homes | $60,000 |
Marriott International | $0 |
Masefield America | $40,000 |
Medicines Co. | $1,530,000 |
Merrill Lynch | $210,000 |
Metropolitan Health Networks | $10,000 |
Morgan Stanley | $50,000 |
National Coalition on E-Commerce & Privacy | $190,000 |
National Employment Opportunities Network | $160,000 |
National Fraternal Congress of America | $200,000 |
Northville Industries Corp. | $70,000 |
Ocean Duke Corp. | $0 |
Parkwood Corp. | $60,000 |
PGA Tour | $150,000 |
Professional Warranty Service Corp. | $30,000 |
Qualcomm | $290,000 |
Raytheon Co. Military Funding | $390,000 |
Recording Industry Association of America | $120,000 |
Rite Aid Corp. | $160,000 |
Sanofi-Aventis | $160,000 |
SleepMed | $20,000 |
Snoqualmie Indian Tribe | $50,000 |
Snowsports Industries America | $30,000 |
Staples | $0 |
Starwood Hotels & Resorts Worldwide | $320,000 |
The Interactive Gaming Council | $190,000 |
TiVo | $0 |
Tokyo Electric Power | $0 |
Towson University | $30,000 |
Tronox | $10,000 |
Verizon Communications | $280,000 |
Vista Print | $10,000 |
Sources:
Center for Responsive Politics; Foreign Agent Registration, U.S. Justice Department.
The almost $12 million in lobbying fees listed above represent only a minute part of the revenues to DLA Piper. With offices all over the Middle East, the company’s legal fees from businesses in that area are obviously soaring.
All of which raises a simple question: Doesn’t President Obama’s new special envoy have an unquestionable conflict of interest—one that violates Obama’s own rules?
ANOTHER MAJORITY LEADER TURNED LOBBYIST: TRENT LOTT
In late December 2007, the Washington political world was shocked when then-senator Trent Lott announced that he was resigning from the Senate. For decades, Lott had held a series of leadership positions in the Senate, including majority leader, minority leader, and whip. Several weeks after his resignation, he announced that he was forming a lobbying firm with another former senator, John Breaux.
By resigning in early January, Lott managed to circumvent the new lobbying law that prohibited members of Congress from actively lobbying for
two years after they leave office. Since he resigned from the Senate days before the new law went into effect in January 2008, Lott was required to wait for only a year before he became a registered lobbyist.
In the meantime, Lott has followed in the footsteps of his fellow Senate leaders, becoming a stealth lobbyist. Here’s the list of clients who have flocked to his new firm in its first year:
BREAUX LOTT LEADERSHIP GROUP
Total Lobbying Income, 2008: $8,045,000
Client | Total |
|---|---|
Algenol Biofuels | $210,000 |
Association of American Railroads | $600,000 |
AT&T | $600,000 |
Charter Brokerage | $50,000 |
Chevron Corp. | $75,000 |
ChevronTexaco | $450,000 |
Coalition for Patent Fairness | $100,000 |
DaVita | $100,000 |
Delta Air Lines | $575,000 |
Entergy Corp. | $450,000 |
FedEx | $300,000 |
JM Family Enterprises | $170,000 |
LHC Group | $100,000 |
National Association for Home Care | $135,000 |
Nissan North America | $500,000 |
Northrup Grumman | $500,000 |
Pharmaceutical Research and Manufacturers of America | $350,000 |
Plains Exploration & Production Co. | $600,000 |
Raytheon Co. | $225,000 |
Shaw Group | $370,000 |
Shell Oil | $500,000 |
Southern Shrimp Alliance | $300,000 |
TECO Energy | $100,000 |
Tyson Foods | $225,000 |
United Space Alliance | $300,000 |
Source:
Center for Responsive Politics.
What’s amazing is the number of Breaux Lott clients who paid more than half a million dollars in fees in their first year of representation (indicated in the entries that are bolded in the chart above). And these are all heavy-duty clients: AT&T, Shell Oil, Delta Air Lines. Compare this, for example, with Daschle’s firm: not one of Alston & Bird’s clients paid the firm half a million dollars or more in a single year. And even the megalobbying firm DLA Piper had only three clients that paid half a million or more. Yet seven Breaux Lott clients paid the big bucks.
In its initial year, Breaux Lott made just as much as Alston & Bird. Next year should be even better.
The new boys in town are shaking things up.
So far, Trent Lott himself has not registered as a lobbyist, but his one-year prohibition is now up. So let’s watch and see whether he becomes a publicly declared lobbyist or remains a stealth lobbyist.
BOB LIVINGSTON, THE DEFINITELY NOT STEALTH LOBBYIST
Former senators aren’t the only ones raking in the big lobbying bucks. After leaving office, members of the House of Representatives are equally prone to delving into the lobbying universe.
Take Bob Livingston, the former House majority leader. He’s not a stealth lobbyist. To the contrary: he’s an in-your-face, way-out-there lobbyist, making deals wherever he can.
Livingston resigned from Congress after he was outed for his extramarital affairs, which were publicized right after he criticized Bill Clinton about Monica Lewinsky. (What a coincidence!) Instead of becoming speaker of the House, as he had anticipated, he became a major lobbyist.
Here’s a summary of his clients and fees:
