Update: McCain’s developing campaign bundler scandal

Posted by AzBlueMeanie:

On Friday, the McCain campaign announced that it would be returning $50,000 in campaign contributions raised by Mustafa Abu Naba’a, a Jordanian citizen, from members of a single extended family in California, the Abdullahs, along with several of their friends. The Raw Story | McCain campaign to return 50K in donations ; McCain Campaign Returning $50,000 From Fla. Bundler – washingtonpost.com

"We thought it was an issue that there were people giving to the campaign who had no intention of supporting or voting for John McCain," said Brian Rogers, a campaign spokesman. "So we thought it was an appropriate measure at this point."

The contributions raised by Abu Naba’a were "bundled" and submitted instead by McCain campaign bundler, Harry Sargeant III.  This kind of thing raises red flags.

At the same time, the campaign sent a letter to everyone whose donations went through Sargeant, reminding them that federal law bars campaigns from accepting contributions from foreign nationals and that all donations must come from their own funds, without reimbursement.  The Raw Story | McCain campaign to return 50K in donations

Greg Sargent at Talking Point Memo reports that Campaign Money Watch will request an investigation by the U.S. Department of Justice into the McCain campaign bundling activities, not just by Harry Sargeant III but also Hess Oil executives. TPM Election Central | Talking Points Memo | Group To Ask Justice Department To Probe McCain’s Bundlers

David Donnelly of Campaign Money Watch confirms to me that they’ll make the formal request on Monday, and MoveOn also is demanding a Federal probe in an email that just went out to supporters. Donnelly says that his group’s request is being triggered by McCain’s letter to the donors whose contributions had been bundled by Sargeant.

Donnelly said that the letter, which advised the donors of the legal ins-and-outs of such contributions, didn’t go far enough in trying to determine what had happened.

"What he didn’t say was, `Tell us who was responsible for giving you money to give to me, and we’ll urge the authorities to prosecute to the fullest extent of the law,’" Donnelly said. "The letter raises the question, ‘Is the McCain campaign covering for his bundlers?’"

Asked why Sargeant, whose company holds a huge contract to deliver fuel to military bases in Iraq, merited an investigation, Donnelly said: "An executive from a company that has a billion dollar contract to deliver oil to U.S. bases in Iraq possibly violated election law to funnel contributions to McCain. We think that warrants an investigation."

And on the Hess matter, Donnelly said: "An office manager for an oil company that stands to gain millions in profits from offshore drillingmakes donations for the first time this cycle to McCain, and did it at the same time nine other Hess donors do. That’s worth an investigation."

Moreover, Sam Stein at the Huffington Post reports yet another lobbyist connection to the McCain campaign on behalf of a company owned by Harry Sargeant III. McCain Bundler Turned To McCain-Friendly Lobbyist In Contract Dispute:

Harry Sargeant, who has raised more than $500,000 for the McCain from a host of unlikely donors, owns a refinery and fuel supply company that has spent large sums of money lobbying the government since 2000. Moreover, in 2006 the company, Trigeant Petroleum, brought on board a lobbyist with strong connections to McCain in an effort to win congressional support in its fight over a terminated contract with the Department of Defense.

It could not be immediately determined whether McCain or any other member of Congress intervened on Trigeant’s behalf. The Arizona Republican’s office did not return request for comment. The company ultimately succeeded in settling its suit with DoD for several million dollars. But the widening extent of Sargeant’s business interests adds another layer of intrigue to concerns that he was bundling cash for the presumptive Republican nominee in hopes of future political favors.

* * *

Started by Sargeant in 1985, Trigeant Petroleum quickly became a player in the energy supply industry. In April 2004, the company was contracted by the Department of Defense to provide diesel and motor fuel to the Iraqi populace after a Jordanian company failed in the task. The deal was worth $76,956,988 over the course of a year. Several months into the contract, however, the Iraqi government asked for the arrangement to be terminated.

* * *

When the Department of Defense acquiesced to the Iraqi government’s wishes, Trigeant was left with fuel literally in transit. Not willing to simply take the hit, the company filed a suit saying that as part of their contract, the U.S. government had to cover the costs of the material they had already lifted.

In 2006, Trigeant hired Otto Reich Associates at $60,000-a-year to build congressional support for the firm’s claim that it should be compensated for losses.  The choice of lobbyists seemed logical. The firm touts its capacity to deal with international economics…

But Reich Associates also advertised another asset: proximity to power. On the firm’s website, in the "About Us" section, is a picture of the founder Ambassador Otto J. Reich shaking hands with none other than John McCain. Below is a quote from the Senator praising the lobbyist…

* * *

In addition to exchanging rhetorical pleasantries, Reich has been a prominent endorser of the presumptive Republican nominee, is reportedly advising McCain on Latin American affairs, and has donated $30,000 to committees supporting the Senator.

According to forms filed with Congress, Reich wrote that he was paid to "inform members of Congress and other senior government officials of the existence of Trigeant, Ltd.’s claim against the Defense Industry Support Center of the Defense Logistics Agency, of the Department of Defense, and to seek their support for a favorable resolution of the dispute."

Which members Reich met with and what type of advocacy he did on behalf of Trigeant is difficult to quantify. The lobbying firm did not return requests for comment.

But around that time, Trigeant’s suit with the Department of Defense was finally settled, with the company awarded $3.25 million for the costs it incurred at the end of its contract. McCain’s Senate office did not return a request for comment as to whether or not he was contacted about the case.

* * *

"[Sargeant] had nothing to do with John McCain until he started making these campaign contributions," he said. "I’m not sure [he] even knew who John McCain was at the time."

Indeed, a review of campaign contribution records shows that Sargeant’s support of McCain did indeed start only during this election cycle. Prior to bundling for the Arizona Republican, he raised cash on behalf of former New York City Mayor Rudy Giuliani as well as Hillary Clinton.

Once the primary ended, Sargeant came fully on board. Moreover his brother Dan, who serves as vice president of Trigeant, also raised cash on behalf of the presumptive Republican nominee, donating $4,600 in late January. On March 5, 2008, both Sargeants served as an "Event Chairman" for a "Floridians For McCain reception," an event that raised an estimated $400,000 plus for McCain. McCain is now reviewingdonations brought in by Sargeant.

For the card carrying members of "The John McCain Protection Society," the McMedia who are not reporting this developing scandal, Marc Ambinder at The Atlantic asks you this pointed question Marc Ambinder (August 08, 2008) – Just Asking…

If there were a group of questionable donations all with the name Abdullah

that were funneled through a guy in Jordan

who is a Jordanian national

who is under investigation for war profiteering

and it were Barack Obama

instead of John McCain

would this be a bigger deal?