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Arabia
Did Saudis Deceptively Finance Ad Campaign? yes
2004-12-16
The Justice Department is investigating whether a Washington PR firm violated federal law on foreign-sponsored propaganda. The politically sensitive probe could embarrass the Saudi government and the White House.

The Justice Department has opened a politically sensitive investigation into allegations that the Saudi government, working through a prominent Washington public-relations firm, deceptively financed an advertising campaign promoting Crown Prince Abdullah's Middle East peace plan, NEWSWEEK has learned.

Federal prosecutors are seeking to determine whether the Saudi Embassy's PR firm, Qorvis Communications, made false statements to the Justice Department and violated the Foreign Agents Registration Act (FARA)—a 1938 law requiring full disclosure of foreign-sponsored propaganda in the United States, according to sources familiar with grand-jury subpoenas issued in the case.

The probe into the 2002 radio ad campaign supposedly paid for by an obscure group called the Alliance for Peace and Justice [a hastily arranged and now dormant group consisting of well-established Washington organizations active in Middle East issues], explains last week's startling raid by the FBI on the downtown Washington offices of Qorvis, a well-connected PR group that began representing the Saudis in the aftermath of the September 11 terror attacks. snip The ad campaign "was done in the name of the Alliance, but it was done without the board's knowledge and approval," said Chris Johnson, a lawyer for John Duke Anthony, who served as the group's chairman. Johnson confirmed that Anthony, who is also the president of the National Council on U.S.-Arab Relations, appeared before the grand jury last week and turned over subpoenaed documents relating to the Alliance. snip

The Justice Department focused on ... the interconnections between the Alliance, Qorvis and the Saudi government. Sources familiar with the campaign say the Alliance was put together in March 2002 and consisted of representatives of a number of Washington-based groups, including the American-Arab Anti-Discrimination Committee, the American Task Force for Lebanon and the Middle East Policy Council. The board met a couple of times and endorsed the "concept" of a radio campaign that was proposed by Petruzzello, said one source familiar with the Alliance's activities. It was unclear why the other board members thought that Petruzzello was there, however, other than his role as head of the PR firm representing the Saudi government.

Qorvis then farmed out the job of developing the spots to Sandler-Innocenzi, a political advertising firm that has done extensive work for the Republican National Committee and House Majority Leader Tom Delay. The ads were initially financed by a "bridge loan" of about $640,000 from the Saudi Embassy, the Alliance source said. Within a few weeks, the loan was repaid by funds solicited by al-Jubeir in Saudi Arabia from businesses associated with the Chambers of Commerce in Saudi Arabia and believed to be close to the Saudi government, the source said. snip

Whatever the outcome, the Qorvis probe appears to underscore an increased level of seriousness within the Justice Department toward FARA—which has been rarely enforced. Justice spokesman Sierra said a growing number of FARA cases are arising out of terrorism-related investigations. The Patriot Act also enhanced criminal penalties (up to 10 years in prison) for FARA violations.snip
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