Billionaire businessman Tom Barrack is facing criminal charges that are typically described as "illegal foreign lobbying," or violating "foreign lobbying" laws. A message seeking comment was sent to his attorney. Barrack, who never registered with the American government as an agent for the UAE, also is charged with obstruction of justice and making multiple false statements during a June 2019 interview with federal law enforcement agents. Matthew Grimes, an Aspen, Colorado resident who worked for Barrack's company Colony Capital, was arrested on the same day as his former boss and also pleaded not guilty. LOS ANGELES The chair of former President Donald Trumps 2017 inaugural committee was arrested Tuesday on charges alleging he secretly conspired to influence U.S. policy to benefit the United Arab Emirates, even while he was seeking a position as an American diplomat. Finalists announced for Aspens next police chief, Pitkin, Eagle counties formalize agreement for holding inmates, Preliminary hearing set for ex-day care worker accused of grooming, improper contact, Armie Hammer restraining order tossed in Pitkin County Court after parties fail to appear, All remaining charges against Basalt chiropractor dropped. A Division of NBCUniversal. U.S. Magistrate Judge Sanket Bulsara also approved a bond package. After Alshahhi sent Barrack a draft of Trumps planned energy policy speech in May 2016, Barrack forwarded the edited copy to Manafort with the cryptic warning that This is probably as close as I can get without crossing a lot of lines., The edits allegedly had originally singled out Saudi Crown Prince Mohammed Bin Salman and UAE Emir Mohammed Bin Zayed, referred to in the indictment as Emirati Official 1, for praise by name but Trumps final version included only a more general pledge to work with our Gulf allies. Which means this case is really about national security. and other data for a number of reasons, such as keeping FT Sites reliable and secure, Prosecutors also claim that Barrack and Grimes acquired a dedicated cell phone and secure messaging app for Barracks communications with senior UAE officials. He is the host of Law&Crime podcast "Objections: with Adam Klasfeld.". Get this delivered to your inbox, and more info about our products and services. He is not guilty and will be pleading not guilty.". Prosecutors said the "evidence of [Barrack's] guilt in this case is overwhelming. 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. In the fall of 2017, Barrack and Al Malik collaborated to scuttle plans for a future summit at Camp David between American, Emirati, Saudi and Qatari officials, aimed at ending a regional blockade of Qatar. He will have full discretion over the funds and those funds will be used to reimburse him for attorneys fees and any other fees and what not in costs associated with the defense.. WASHINGTON Billionaire businessman Tom Barrack is facing criminal charges that are typically described as "illegal foreign lobbying," or violating "foreign lobbying" laws. The government indicted the two together and planned one trial. By subscribing, I agree to the Terms of Use and Privacy Policy. That glittering life came to a halt when Grimes, 27, was arrested at around 6 a.m. on July 20 in Santa Monica, California. Got a confidential news tip? For the latest news, follow us on Facebook, Twitter, and Instagram. What should a secular society really look like? Change the plan you will roll onto at any time during your trial by visiting the Settings & Account section. Stone had worked with Manafort from approximately 1980 until the mid-1990s through various consulting and lobbying firms.. 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. Barrack served as an informal adviser to Trumps campaign in 2016 before becoming the inaugural committee chair. 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. At the time, his aides denied that he was working on behalf of foreign governments. The founder of Colony Capital and a close friend of former President Donald Trump, Barrack was arrested last Tuesday and charged with operating as an agent of the government of the United Arab Emirates without notifying the Justice Department. Thomas 'Tom' Barrack, founder of Colony Capital LLC and chairman of U.S. President-elect Donald Trump's inaugural committee, speaks to members of the media in the lobby of Trump Tower in New York, U.S., on Tuesday, Jan. 10, 2017. 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. Hecklers carried the same message for fellow Trump loyalists Paul Manafort and Roger Stone during their trials, CNBC noted. 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 Manafort and Barrack hoped their cooperation in 2016 would accrue to each man's benefit. 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.. Barrack is charged under the same statute used against Russian agent Maria Butina. Sign up for Deadline's Newsletter. The members of the 2010 spy ring never made inroads in the national security and economic circles they'd hoped to. He was also charged. As was Matthew Grimes, a California resident who worked for Barrack's investment firm. 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Which means this case is really about national security. 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.. The UAE opposed the summit, and prosecutors describe how Barrack sent an email to Trump's personal assistant, asking to speak to the president. Charged with the 74-old Barrack are Matthew Grimes, 27, of Aspen, Colorado, and a UAE national, Rashid Sultan Rashid Al Malik. offers FT membership to read for free. Grimes was arrested in California on Tuesday. Buryakov was sentenced to 2 years in prison but was granted early release and deported in 2017. They were charged with conspiring to violate Section 951, and they pleaded guilty shortly before they were sent back to Russia as part of an international prisoner swap. 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. Prosecutors say that Al-Malika UAE national whose full name is Rashid Sultan Rashid Al Malik Alshahhifled the United States three days after being interviewed by law enforcement in April 2018 and remains at large. Barrack sought to postpone their detention hearing after that, leading to the billionaires three-day jail stint before his current release. Contact Lance at 970-618-9335 lburwell@ alpineproperty.com, Do you want to enjoy going to work? Further, thousands of emails and text message communications obtained during the course of this investigation further confirm that the defendant and Barrack have a close, albeit asymmetrical, relationship., In November, the prosecution succeeded in having Grimes continue to wear an ankle monitor while he is free on $5 million bond. 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. Grimes worked directly under Barrack at Colony Capital, and together they frequently met with Alshahhi, a UAE agent, whom Barrack once referred to as the UAEs secret weapon in advancing its foreign policy goals in the U.S., the indictment states. "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. We want to hear from you. During your trial you will have complete digital access to FT.com with everything in both of our Standard Digital and Premium Digital packages. You may also opt to downgrade to Standard Digital, a robust journalistic offering that fulfils many users needs. 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. Send it to The Daily Beasthere. The indictment also claims that in December 2016, Barrack attended a meeting with Grimes, Alshahhi and senior UAE government officials, and Barrack advised them to create a wish list of U.S. foreign policy items that the UAE wanted from the incoming administration. All Rights Reserved. It does not appear to have closed any deals in the United States. Got a confidential news tip? The indictment noted that Barrack, 74, during that time covered by the indictment informally advised American officials on Middle East policy, and also sought appointment to a senior role in the U.S. government, including as special envoy to the Middle East. Premium Digital includes access to our premier business column, Lex, as well as 15 curated newsletters covering key business themes with original, in-depth reporting. Matthew Grimes Email Address "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.". Barrack made an initial court appearance in Los Angeles, where prosecutors were to ask a U.S. magistrate judge to bring him to New York. Questions about Barrack's foreign lobbying first came to light during Mueller's investigation, according to prosecutors. Contacts. View the profiles of professionals named "Matthew Grimes" on LinkedIn. Section 951 cases "generally involve espionage-like or clandestine behavior or an otherwise provable connection to an intelligence service, or information gathering or procurement-type activity on behalf of a foreign government," a Justice Department inspector general wrote in a 2016 audit of FARA enforcement. The defendant agreed.". In one example from May 2016, Barrack allegedly slipped positive language about the UAE in one of Trumps 2016 campaign speeches about U.S. energy policyand then emailed an advance draft of the speech to Alshahhi for delivery to senior UAE officials.. In the past Mr. Grimes was Managing Director at DigitalBridge Group, Inc. Part of the reason Barrack's actions are often described as illegal lobbying is because the language of Section 951 is similar to language of another law, the Foreign Agents Registration Act, or FARA. The conduct alleged in the indictment is nothing short of a betrayal of those officials in the United States, including the former President. His Dubai-based real estate fund has neither a website nor a physical address. 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. Thomas Barrack, a billionaire friend of Donald Trump who chaired the former president's inaugural fund, stands during his arraignment hearing at the Brooklyn Federal Courthouse in Brooklyn, New York, U.S., July 26, 2021 in this courtroom sketch. Read More About: For More . Federal prosecutors allege that the trio conspired to act as agents of the UAE between April 2016 and April 2018, using Barracks connections with the Trump administration to push for the countrys interests. During the 2016 campaign, prosecutors allege, Barrack inserted language praising the UAE in a Trump campaign speech about U.S. energy policy, and then emailed an advance draft to Alshahhi to be passed along to senior UAE officials. Matthew Grimes, a business associate, also pleaded not guilty. Former Aspen resident Matthew Grimes will have up to $2 million to mount his legal defense against federal criminal charges of foreign lobbying, and his former boss and co-defendant Thomas Barrack is footing the bill. 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. We want to hear from you. It's unclear from the indictment whether Barrack ever spoke to Trump. The Wharton School. When Barrack tried to get Trump to appoint him as either the U.S. ambassador to the UAE or as special envoy to the Middle East, he wrote al Malik that any such appointment would give ABU DHABI more power! It is that Mr. Barrack and the company (Colony Capital), we believe, have either voluntarily, or pursuant to obligation, the need to reimburse Mr. Grimes for acts that were taken when he was employed by them and in Mr. Barracks case, by the agreement they made. 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. Standard Digital includes access to a wealth of global news, analysis and expert opinion. 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His continued, imperial reign over the company damages its credibility and business prospects, and creates a tremendous overhang on the stock.. Barrack and Grimes are scheduled to be arraigned in Los Angeles on Tuesday afternoon. Matthew Grimes was an assistant to then-Colony Capital executive chairman Barrack during the time of an alleged scheme to secretly advance the United Arab Emirates' interests in the Trump . When Barracks indictment became public last week, his lawyer Mark Herrington announced his clients plans to contest the charges. 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. The effort failed, but it shocked American officials. Matthew Grimes Work Experience and Education According to ZoomInfo records, Matthew Grimes's professional experience began in 2012. Currently, Matthew Grimes occupies the position of President of Falcon Peak Acquisition Corp. Subscribe to Deadline Breaking News Alerts and keep your inbox happy. He is not guilty and will be pleading not guilty, a spokesperson said. Wendy Siegelman @WendySiegelman . But the federal statute under which Barrack was charged is used to prosecute spies, not lobbyists. Check if your All Rights Reserved. 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. Grimes was hired at Colony Capital as an intern, according to a person familiar with the arrangement, and was so successful that he kept his Colony email address and continued to do research. A spokesperson for Barrack did not immediately return a request for comment. He resigned as executive chairman of the firm in April. The indictment claims that Alshahhi worked as an agent of the UAE and was in frequent contact with Barrack and Grimes. Premium access for businesses and educational institutions. Throughout 2016 and 2017, Barrack and Grimes received talking points and feedback from senior UAE officials in connection with Barracks national press appearances, prosecutors said. Thomas Joseph Barrack Jr. (born April 28, 1947) [1] is an American private equity real estate investor and the founder and executive chairman [2] [3] of Colony Capital, a publicly traded real estate investment trust (REIT). After that, he continued to informally advise senior government officials on foreign policy in the Middle East. But the yearslong investigation by special counsel Robert Mueller put an end to the hopes of Barrack and Manafort to rise to positions of prominence in the Trump White House. First Capital, a specialized commercial finance company, announced that Matthew Grimes has joined the company as Senior Vice President and Western Region Asset-Based Lending Manager. Matthew Grimes, managing director and chief investment officer of Falcon Peak Partners, departs from criminal court in New York, US, on Monday, Oct. 3, 2022. ", A spokesman for Barrack said: "Mr. Barrack has made himself voluntarily available to investigators from the outset. Grimes worked directly under Barrack at Colony Capital, and together they frequently met with Alshahhi, a UAE agent, whom Barrack once referred to as the UAE's "secret weapon" in advancing its. ", Kappel added: "And he was providing that information through an individual who was on the payroll of a foreign intelligence service.". Barrack's case hints at the relative ease with which individuals close to Trump could influence his direction on major policy issues. 2023 CNBC LLC. Phone and email messages sent to the UAE Embassy in Washington were not immediately returned. The seven-count indictment also was unsealed read it here and was brought by federal prosecutors in New York. One of the spies, Anna Chapman, briefly gained notoriety as a TV personality. Grimes also was arrested Tuesday in California. It is not specific to me. 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