Prominent Lobbyist and Political Consultant Agree to Deferred Prosecution for FARA Violations for Undisclosed Work for Foreign Government

            WASHINGTON – A Virginia lobbyist and a New Jersey political consultant have entered into Deferred Prosecution Agreements (DPAs) to resolve the government’s investigation into violations of the Foreign Agents Registration Act (FARA) and related offenses.

            Barry P. Bennett, 60, of Alexandria, Virginia, owned and operated Avenue Strategies Global LLC, a lobbying and consulting firm in Washington, D.C. Douglas Watts, 73, of Jersey City, New Jersey, is a former presidential campaign consultant who founded and ran a public relations company.

            The charges arise from a scheme to wage a lobbying and public relations campaign designed to benefit one of Avenue Strategies’ clients—the government of a foreign country (Country A)—while concealing the foreign government’s connection to the effort. In 2017, Bennett signed a contract for Avenue Strategies to perform lobbying services for the embassy of  Country A. As part of his lobbying strategy on behalf of Country A and for and in the interest of Country A, Bennett covertly operated Company A, a limited liability company founded by Watts at Bennett’s direction. As directed by Bennett and managed by Watts, Company A ran a lobbying and public relations campaign designed to cast one of Country A’s rivals in a negative light for its conduct, and thereby to improve Country A’s standing with the U.S. government and public relative to this rival.

            Through the DPA, Bennett consented to the filing of a two-count criminal information charging him with a scheme to falsify, conceal, and cover up material facts from the Justice Department’s FARA Unit and with making false statements and material omissions in FARA filings. The information will be dismissed with prejudice after Bennett complies with the DPA’s terms, which include payment of a $100,000 fine, for 18 months.

            Through the DPA Watts signed, he consented to the filing of a three-count criminal information charging him with acting as an agent of a foreign principal without registering under FARA and with making false statements to the FBI. The information will be dismissed with prejudice after Watts complies with the DPA’s terms, which include payment of a $25,000 fine, for 12 months.

            Country A paid Bennett’s Avenue Strategies $2.1 million between September 2017 and December 2017 for lobbying services, and approximately 27% of those funds (i.e., approximately $773,000) financed the operations of Company A. In return, Company A conducted a social media campaign, published opinion articles in major newspapers, produced a documentary that was distributed through a national television network, sent direct mailings to American citizens, and lobbied Congress and the former president.

            Company A took credit for directing 3,000 phone calls to members of the U.S. House of Representatives encouraging them to discontinue U.S. involvement in a coalition of Country A’s rivals. The House of Representatives eventually voted overwhelmingly to “deauthorize” U.S. involvement with the coalition.

            Neither Watts nor Company A was registered under FARA.

            FARA was enacted in 1938 to counter propaganda and promote transparency and disclosure. The Department of Justice recently described the purpose of the law to Congress as means of ensuring “that the American public and our lawmakers know the source of information that is provided at the behest of a foreign principal, where that information may be intended to influence U.S. public opinion, policy, and laws.”

            Bennett’s consulting company, Avenue Strategies, failed to disclose in its FARA filings its creation of Company A. In addition, Avenue Strategies failed to disclose Bennett’s and Avenue Strategies’ affiliation with Company A, Avenue Strategies’ disbursements to Company A, and Watts’ work on behalf of Company A and Country A. These omissions thwarted FARA’s disclosure requirements.

            During two separate interviews in February 2020, Watts made false and materially misleading statements to the FBI about his knowledge of Company A’s formation, its purpose and activities, and its connection to Country A.

            If the case had gone to trial, the government would have sought to prove that Bennett engaged in a scheme to falsify, conceal, and cover up material facts from the Department of Justice’s FARA Unit. The government also would have sought to prove that Bennett made false statements and material omissions in filings under FARA.

            In addition, the government would have sought to prove that Watts acted as an unregistered agent of a foreign principal and made false statements or representations to a department or agency of the United States.

            The FBI’s Washington Field Office investigated the case.

            Assistant U.S. Attorney Jolie F. Zimmerman for the District of Columbia and Deputy Chief Evan N. Turgeon of the National Security Division’s Counterintelligence and Export Control Section are handling the case, with valuable assistance from Assistant U.S. Attorney Jason McCullough for the District of Columbia.

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