• Last Update 2021-09-27 16:09:00

US fixer that defrauded Sri Lanka of US$ 6.5mn sentenced to 12 years in prison

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Venture capitalist and political fundraiser Imaad Shah Zuberi, 60, was sentenced on Thursday to 12 years in a federal prison for falsifying records to conceal his work as a foreign agent while lobbying high-level US Government officials, evading the payment of millions of dollars in taxes, making illegal campaign contributions, and obstructing a federal investigation into the source of donations to a presidential inauguration committee.

One of the offences he was tried for is stealing money from the Sri Lankan Government which hired Zuberi in 2014 to rehabilitate the country’s image in the United States, which had suffered because of allegations that its minority Tamil population had been persecuted, a statement from the US Department of Justice said. Zuberi had promised to make substantial expenditures on lobbying efforts, legal expenses, and media buys. This prompted Sri Lanka to agree to pay Zuberi a total of $8.5 million over the course of six months in 2014.

“Days after Sri Lanka made an initial payment of $3.5 million, Zuberi transferred $1.6 million into his personal brokerage accounts and used another $1.5 million to purchase real estate,” the statement said.

In total, Sri Lanka wired $6.5 million pursuant to the contract, and Zuberi used more than $5.65 million of that money to the benefit of himself and his wife, the statement said. Zuberi paid less than $850,000 to lobbyists, public relations firms and law firms, and refused to pay certain subcontractors based on false claims that Sri Lanka had not provided sufficient funds to pay invoices.

Relatedly, Zuberi failed to report on his 2014 tax return millions of dollars in income he received from the Sri Lankan government. While his 2014 federal income tax return claimed income of $558,233, Zuberi failed to report more than $5.65 million he received in relation to the Sri Lanka lobbying effort. Zuberi’s tax evasion over the course of four years – 2012 through 2015 – caused tax losses ranging from $3.5 million to as much as $9.5 million.

Zuberi was sentenced by US District Judge Virginia A Phillips, who also ordered him to pay $15,705,080 in restitution and a criminal fine of $1.75 million.

In November 2019, Zuberi pleaded guilty to a three-count information charging him with violating the Foreign Agents Registration Act (FARA) by making false statements on a FARA filing, tax evasion, and making illegal campaign contributions. In June 2020, Zuberi pleaded guilty in a separate case to one count of obstruction of justice. His sentence today pertains to both cases.

Zuberi operated Avenue Ventures LLC, a San Francisco-based venture capital firm, and solicited foreign nationals and representatives of foreign governments with claims he could use his contacts in Washington, DC, to change U.S. foreign policy and create business opportunities for his clients and himself.

Clients gave Zuberi money for consulting fees, to make investments, or to fund campaign contributions. As part of his efforts to influence public policy, Zuberi hired lobbyists, retained public relations professionals, and made campaign contributions that gave him access to high-level U.S. officials, some of whom acted in support of his clients. As evidence of his access and influence, Zuberi distributed to his clients photographs of himself discussing policy with elected officials.

 While Zuberi had a limited degree of success with some U.S. officials, most of his business efforts failed and his clients suffered significant financial losses. Many of the lobbyists, public relations consultants, and other subcontractors also suffered losses when Zuberi refused to pay them. Meanwhile, Zuberi became wealthy, largely through his theft of client funds and unlawful lobbying on behalf of foreign interests.

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