U.S. Justice Department headquarters in Washington, D.C. Credit: Diego M. Radzinschi

The U.S. Justice Department's intensified scrutiny of foreign influence campaigns in the U.S. in recent years has driven an influx of disclosures revealing advocacy for overseas powers and also provided insight into political activity and even the billing rates of some of Washington's largest law firms.

The Foreign Agents Registration Act, a decades-old disclosure law, requires law firms, lobby shops and public relations firms to disclose certain work for foreign countries, and in recent years, as DOJ approached disclosure with renewed fervor, filings have risen.

Indeed, FARA, as the law is widely known, returned to prominence thanks in part to prosecutions brought by the special counsel, Robert Mueller III, including a case against former Trump campaign chairman Paul Manafort.

With that attention has come increased awareness of disclosure obligations connected to work for foreign governments—and heightened caution. In recent months, the Justice Department has continued to actively press for disclosure of influence work for foreign governments. And the government has started more broadly issuing guidance to help better inform lawyers, lobbyists and consultants about the requirements of the law.

What follows are a few new and notable engagements and policy developments related to FARA:

>> A team from Steptoe & Johnson LLP is now advising the HM Treasury, the U.K.'s economic and finance ministry, according to a recent disclosure. The Steptoe team said it will assist the HM Treasury about how to engage with the United States amid a U.S. Trade Representative investigation of digital service taxes that have been adopted, or are being considered, in various countries.

"President Trump is concerned that many of our trading partners are adopting tax schemes designed to unfairly target our companies," USTR Robert Lighthizer said in a statement in June announcing the investigation. "We are prepared to take all appropriate action to defend our businesses and workers against any such discrimination."

Phil West, chairman of Steptoe, is billing at $1,700 hourly, the new filing stated. "I bill in one-hour increments, although I do not generally bill time to a client for a given day if my services for that client during that day consist of only a brief phone call, consultation, or the like," West wrote.

Philip West, chairman of Steptoe & Johnson LLP. Photo by Diego M. Radzinschi/ALM

New Steptoe partner Jeff Weiss, who joined the firm in March as co-leader of the international trade policy team, is billing at $1,300 hourly, according to Steptoe's filings. Weiss, who will be a leading attorney on the U.K. contract, spent more than 15 years "in senior legal, policy, diplomatic, negotiation, and political roles in the US government across three administrations," the firm said in announcing his arrival.

Other Steptoe lawyers on the work include: Robert Rizzi, a tax partner; John Cobb, a tax associate; Luke Tillman, a trade associate; Elizabeth Burks, managing director of the firm's government affairs and public policy team; and Kate Jensen, a government affairs associate.

>> A team from Linklaters, including partner Adam Lurie, head of the firm's dispute resolution practice in the U.S. and the Americas, is advising the U.K.'s Department for International Trade. The firm first noted in February, shortly after the United Kingdom completed its so-called "Brexit" from the European Union, that it was working with the country in connection with negotiations over a bilateral trade deal with the United States. But, in a more recent filing, Linklaters revealed that its work for the U.K. began in 2018 with an analysis of U.S. laws that could be relevant to such a deal.

"This preliminary work was not construed as registrable under FARA at the time," Linklaters said. The firm added that its new disclosure "does not change Linklaters' view that the previous work that Linklaters carried out for [the Department of International Trade] in 2018-2019 should not be construed as 'political activities,'" as defined by FARA. "Nevertheless, Linklaters acknowledges that it is uncertain whether the FARA Unit would so conclude and, therefore, in the interest of full disclosure and transparency, is voluntarily effecting this Amendment with respect to its prior work for DIT."

Lurie declined to comment further on the engagement and on the firm's decision to disclose its work for the United Kingdom dating back to 2018. The disclosures show Linklaters reported receiving $368,265 in May 2019 from the Department for International Trade.

>> Arnold & Porter Kaye Scholer's Thomas Shannon, a senior international policy adviser, and partner Raul Herrera have registered as advocates for Argentina. The Arnold & Porter team said it will "provide strategic advice and assistance" to Argentina on its relationship with the United States and that the firm anticipates meeting with U.S. officials on the country's behalf. Shannon served in the Obama administration as the U.S. ambassador to Brazil and later as undersecretary of state for political affairs. The firm said it would charge nearly $2 million for the advocacy over the course of 12 months.

>> More broadly, the Justice Department has pressed forward with an aggressive crackdown on secret foreign influence, driving lobby shops and other firms to disclose their work for overseas powers. For the past several months, DOJ has made that push largely behind the scenes, with letters asserting that firms and consultants need to disclose their activities under FARA.

The Justice Department has occasionally voiced expansive views of the activities that fall within the scope of FARA, according to lawyers familiar with the department's efforts. In one recent letter, for instance, the Justice Department took the position that lawyers could be required to register for helping prepare public talking points in connection with court litigation and for attending meetings that include a foreign client's lobbyists.

 

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