Contributions raise concerns over foreign attempts to influence U.S. governments

ALBANY — Two federal indictments last month has raised concern about the influence of foreign governments in New York State and prompted questions about how effective safeguards are in preventing other countries from trying to influence elections directly and through lobbyists, records and interviews show.

Federal prosecutors have accused Linda Sun, a former high-ranking aide to Govs. Kathy Hochul and Andrew M. Cuomo, and New York City Mayor Eric Adams of taking compensation from foreign governments for official actions. 

Federal law bans foreign countries, their companies and representatives from making campaign contributions to try to influence U.S. elections and governments. The Foreign Agents Registration Act was passed in 1938 to require groups spreading fascist propaganda to register with the U.S. Department of Justice.

The law known as FARA bans political contributions “directly or indirectly by or from foreign nationals in connection with any federal, state or local election.”

The law, however, doesn’t prohibit campaign contributions by U.S.-based lobbyists, public relations and related firms whose clients include foreign interests or work with foreign interests.  And there is growing concern over whether some lobbyists are being used as conduits for clients from foreign countries to make illegal campaign contributions.

“Foreign agents and lobbyists representing foreign interests are continuing to pour big money into political contributions,” said Anna Massoglia of the nonprofit watchdog group Open Secrets in Washington, D.C. “It is not uncommon for lobbyists working for foreign clients to give to the same lawmakers they meet with on behalf of their client. Since the start of 2023, registered foreign agents have made more than $10 million in political contributions to groups operating at the state and federal levels.”

In New York State, at least 27 of these lobbying and related firms working for 24 countries and other foreign entities have contributed more than $65,000 to at least 31 Democratic and Republican candidates and campaign committees since 2020, according to Justice Department records.

Tom Moore of the nonpartisan, Washington, D.C.-based Center for American Progress Institute said it’s difficult to track whether funds legally paid by a foreign entity to its American lobbyists was used for illegally contributing to campaigns.

“The basic problem is the fungibility of money,” Moore said. “I don’t think there’s any way to draw a real strong connection here … as long as no one wrote on the memo line, ‘Please spend this on campaigns.’ ’’

Robert Kelner, an attorney based in Washington, D.C., who defends people accused of illegal political activities under the law, said the Justice Department is finding it difficult to bring cases under the FARA statute.

“Fundamentally, I think it comes down to juries and judges want to see that when someone acted, they weren’t acting on their own but as a servant of a foreign government,” Kelner said. “They have to show he was acting for the foreign government and they can point to gifts, but in the absence of a written agreement, it may be hard to prove to a jury there is a connection.”

A spokesperson for the Federal Election Commission did not immediately respond to a request for comment.

 A state bill aims to strengthen the 86-year-old federal law.

The bill, called the “democracy preservation act,” would ban contributions in New York from far more companies. It would cover any company with as little as 1% ownership by a foreign investor, which would include most of the nation’s large global companies. The companies and their hired lobbying and public relations firms would have to sign a statement that the campaign donation isn’t coming from a foreign-influenced client banned from making political donations.

The Foreign Agents Registration Act focuses on companies that are owned or devoted primarily to serving a foreign country.

The intent of the state bill in part is to prompt companies and their lobbying firms that aren’t registering publicly as required under FARA to make their ownership and intent public. The state bill would force more companies and firms to report when and how they are trying to influence elections and government on behalf of foreign interests or face a Class E felony, according to the bill sponsored by Sen. Michael Gianaris (D-Queens) and Assemb. Latrice Walker (D-Brooklyn).

A violation would be punishable by up to five years in prison, a $10,000 fine and a penalty equal to the campaign contributions. Violation of the federal Foreign Agents Registration Act can result in a fine of $250,000 or up to 5 years in prison.

“We already ban foreign individuals from participating in our democratic process, and there is no reason why corporations that are under foreign influence should be exempted from that,” Gianaris told supporters of the measure.

Sponsors of the proposed bill said they hope current investigations into accusations of foreign influence in New York State and city government will boost its support in the State Legislature. Three investigations this year have helped focused attention on foreign influence in government:

On Sept, 3, Linda Sun was indicted and accused of using her position as deputy chief of staff under Govs, Kathy Hochul and Andrew M, Cuomo to influence state government and public opinion in favor of China over Taiwan in their escalating conflict, She has pleaded not guilty, On Sept, 26, New York City Mayor Eric Adams was charged with allegedly taking lavish gifts and violating campaign finance laws that limit contributions in exchange for aiding the Turkish government to open its new consulate, Kelner noted Adams, a Democrat, wasn’t charged last month under FARA, but under bribery and campaign law laws, Adams has pleaded not guilty, On July 16, a federal jury found former U,S, Sen, Robert Menendez, a Democrat, guilty of corruption charges, including bribery and acting as a foreign agent, to lobby for favorable treatment for Egypt and Qatar for compensation that included gold bars and cash,.

Lobbying for a foreign country has been an element in seven FARA cases since 2007, five of them in the last six years, according to Justice Department records.

The New York bill, sponsored by Gianaris, the deputy majority leader, passed the Senate this year as it had in 2022 and 2021. But it hasn’t been voted out of committee in the Assembly. Both chambers are controlled by Democrats.

The bill has been opposed by American businesses, which could find their campaign contributions restricted under the measure.

A 2010 U.S. Supreme Court decision, known as Citizens United, allows corporations, unions and wealthy individuals to have outsized influence on federal, state and local elections through nearly limitless funding of political action committees. While state election law limits corporate donations to individual candidates to $5,000, the Citizens United decision allows near limitless spending for or against a candidate as long as no coordination with the candidate can be proven.

Kathryn Wylde, president and CEO of the Partnership for New York City whose members are among the city’s big global leaders, said the bill would take away the freedom of speech that the Supreme Court said the Citizens United decision was all about.

“Most companies are happy to be precluded from campaign contributions, but this also skews influence in the direction of candidates who do not have relationships in or knowledge of business and the economy,” Wylde said. “That does not strike me as a good thing.”

Opposition to the state bill was led in 2023 by the Charter Communications, the parent of the Spectrum cable TV and internet company, according to state lobbing records. Charter and its political action committee have contributed more than $364,000 over the past two years, mostly to Democratic campaigns and Senate and Assembly Democratic committees, according to records.

A spokeswoman for Charter didn’t immediately respond to a request for comment.