Former U.S. official’s work for Chinese clients raises concerns about disclosure vulnerabilities | Wilnesh News

When a Chinese drone company came under U.S. government scrutiny over alleged ties to the Chinese military, the company turned to one of America’s preeminent lawyers: Loretta Lynch, the former attorney general in the Obama administration.

Lynch headed the U.S. Department of Justice from 2015 to 2017 and is now a partner at the law firm Paul, Weiss. In July last year, she sent a letter to senior officials of the Ministry of National Defense on behalf of Shenzhen DJI Technology Co., Ltd., demanding that her client be removed from the list of Chinese military industrial companies.

It is legal to defend foreign clients, and U.S. law includes a public disclosure exemption for attorneys.

But the letter seen by Reuters is an example of what transparency advocates and some members of Congress, dozens of whom supported the rule-changing bill, say are legal loopholes that allow lawyers and lobbyists, including former officials, to avoid Disclosure Information They provide support to companies that may be subject to U.S. sanctions.

Law firm Paul Weiss declined to comment on the letter, and Lynch did not respond to an email from Reuters. DJI also declined to comment, but has previously said it is not a military company and is prepared to formally challenge being included on the list.

The Foreign Agents Registration Act (FARA) is a decades-old law that requires public disclosure of work performed on behalf of non-U.S. entities, including a series of exemptions, including business activities and legal representation.

Work done by a former top U.S. law enforcement official on behalf of a company the Defense Department said constituted “Threats to national securityIt comes as U.S. agencies warn companies with ties to the Chinese Communist Party and lawmakers push to tighten disclosure requirements under the Foreign Agents Registration Act.

The U.S. Departments of Treasury and Commerce said DJI supports biometric surveillance and tracking of China’s Muslim Uyghur minority.

The Defense Department did not respond to a request for comment on Lynch’s letter. When updated in late January, DJI was still on the Pentagon’s list.

The Justice Department also declined to comment on the letter and FARA enforcement more broadly.

Nearly a dozen critics of the Foreign Agents Registration Act told Reuters that loopholes in the law have led to less transparency at other companies with alleged ties to the Chinese military, including surveillance technology firm Hikvision and biotech firms WuXi AppTec.

Jim Risch, the top Republican on the Senate Foreign Relations Committee, said given the blurred lines between many Chinese companies and the Chinese government, the law needs to be reformed and prevent former members of the U.S. government from effectively lobbying on their behalf.

“It is alarming that former senior U.S. officials would use their relationships to serve the interests of U.S. adversaries,” Reish said.

However, the American Civil Liberties Union (ACLU) and other groups claim that expanding disclosure requirements could become a barrier to legally protected free speech.

In 2022, the American Civil Liberties Union and 13 other groups wrote to the Justice Department expressing their concerns and warning that the legal issues could “lead to selective enforcement for malicious or malicious reasons.”

Others argue that stricter FARA disclosure rules could provide cover for authoritarian states like Russia and China to suppress free speech.

Jonathan Turley, a professor at George Washington University Law School, said some countries, such as Russia, label citizens and journalists as foreign agents to limit their activities.

“I do have concerns about some of the past investigations and prosecutions that have targeted individuals who appeared to be involved in First Amendment activities,” Turley told Reuters.

The Pentagon added DJI to a list of Chinese military industrial companies in 2022, a designation intended to warn of the risks of doing business with these entities.

In a letter written on behalf of DJI to Assistant Secretary of Defense Laura Taylor-Kyle, Lynch urged the Department of Defense to immediately remove the drone manufacturer.

“The widespread use and reliance on DJI products by various U.S. stakeholders reinforces the importance and urgency of removing DJI from the list,” Lynch wrote.

DJI requested “a meeting to discuss the matter,” she added. Reuters could not confirm whether the meeting took place.

Also signing the letter, marked “Confidential Requested,” were former Assistant U.S. Attorney Michael Gertzman and Roberto Gonzalez, an assistant White House counsel during the Obama administration. They are both now partners at Paul, Weiss.

Goetzman and Gonzalez did not respond to requests for comment.

In recent years, the Department of Justice has strengthened FARA enforcement sue Some individuals have done work on behalf of Chinese interests and promoted the registration of some law firms.

Attorney Paul Weiss acknowledged that China-related enforcement efforts are increasing.

in a 2022 Memo On U.S. court’s rejection of Foreign Agents Registration Act (FARA) cases against casino tycoons Steve Wynn, Lynch, Gonzalez and Paul Weiss, among others FARA) case wrote to clients: “The Department of Justice’s targeting of lobbying efforts on behalf of China is further evidence that the Biden Administration intends to use all legal tools at its disposal in a multi-pronged strategy to counter the threat posed by China.”

Paul Weiss did not respond to questions about the memo, and a White House spokesman did not immediately respond to a request for comment.

in the Ministry of Justice RequireSidley Austin Law Firm 2022 Retrospective register their lobbying On behalf of Hikvision, the United States said the company was involved in human rights abuses against Uyghurs.

Sidley Austin declined to comment on its registration. While the company did not initially file under the Foreign Agents Registration Act, it disclosed under the Lobbying Disclosure Act, which has less stringent disclosure requirements, according to the Justice Department.

The Department of Justice is calling for the repeal of the LDA exemption for FARA filings.

Hikvision did not respond to a request for comment but has previously denied reports that the company is involved in human rights abuses.

Pressure on Congress began to mount again.

On March 5, the House Select Committee on China requested that the Department of Justice review Trade association Biotech Innovation is lobbying on behalf of Chinese biotech company WuXi AppTec over possible FARA requirements.

BIO told Reuters its initiative was fulfilling its duty to inform Congress and patients about the impact of potential policies “and nothing more.”

When Reuters asked WuXi about the House committee’s request, the company said it opposed “inaccurate assertions and preemptive actions against our company without due process,” adding that it was confident lawmakers would view it as trustworthy. one’s business Patner.

Some experts, including those concerned about expanding FARA’s scope, believe the law is vague and creates special challenges for attorneys.

David Laufman, a partner at Wiggin and Dana who oversaw FARA enforcement for the Justice Department, said that while attorneys may not need to register under FARA if they avoid discussing policy with government officials, the only way to know for sure is to seek approval from the Justice Department. Opinion.

“In the meantime, life as a lawyer goes on. We have to represent our clients,” he said.

Reform of the law will be decided by Congress. Several bipartisan bills have been introduced aimed at closing loopholes in FARA.

One, introduced in the House and Senate last year, could require anyone acting as an “agent for a foreign principal” to register retroactively under the Foreign Agents Registration Act.