Takeaways from investigation that turned up gold bars, a luxury car and cash at a US senator’s home

WASHINGTON — Democratic U.S. Sen. Bob Menendez and his spouse are accused of taking bribes of gold bars, a luxurious automotive and money in alternate for utilizing his outsized sway in overseas affairs to assist the federal government of Egypt — and others — in addition to different corrupt acts, in keeping with an indictment unsealed Friday.

Investigators say they discovered practically $500,000 in money hidden in clothes and closets in addition to $100,000 in gold bars in a search of the house the 69-year-old senator from New Jersey shares along with his spouse. Menendez serves because the highly effective chairman of the Senate International Relations Committee.

The indictment, the second in eight years towards Menendez, and comes after a yearslong investigation that delved into his relationships with rich New Jersey businessmen.

Menendez says he has been falsely accused however “won’t be distracted” from work within the Senate, accusing prosecutors of misrepresenting “the traditional work of a congressional workplace.” Within the meantime, he stepped down from his chairmanship, as Senate guidelines say he should.

A lawyer for Menendez’s spouse, Nadine, stated she “denies any prison conduct and can vigorously contest these fees in court docket.”

USING HIS INFLUENCE AS CHAIRMAN

Menendez is going through bribery, fraud and extortion fees. The indictment features a scathing listing of alleged favors exchanged between the businessmen and Menendez, who’s chairman of the Senate International Relations Committee and has powers and entry to data that different senators don’t.

Utilizing his place, Menendez took steps to secretly help the federal government of Egypt in alternate for bribes, the indictment says. And as chairman, he had distinctive affect over overseas navy gross sales and overseas navy financing. The indictment notes that Egypt is likely one of the largest recipients of U.S. navy help, together with navy gear and grants of greater than $1 billion a 12 months. In recent times, the U.S. has withheld some help resulting from considerations over human rights violations.

The indictment fees that Menendez disclosed nonpublic data to the businessmen about U.S. navy help and the quantity and nationality of staff on the U.S. Embassy in Cairo. That data was then forwarded to Egyptian officers. Prosecutors stated Menendez additionally secretly ghost-wrote a letter on behalf of Egypt to different senators requesting launch of a maintain on $300 million in help. He additionally at one level texted his spouse to inform one of many businessmen that he was going to “log out” on a sale of navy gear to Egypt.

The State Division sometimes seeks the enter of the chairperson and high minority senator on the International Relations panel in relation to overseas navy financing and overseas navy gross sales, and the division typically won’t go ahead if one of many two senators objects.

Egypt’s ministry of overseas affairs didn’t instantly reply to a request for remark.

MAIN PLAYERS

Menendez has held public workplace constantly since 1986, when he was elected mayor of Union Metropolis, New Jersey. The son of Cuban immigrants, he served as a state legislator and spent 14 years within the U.S. Home of Representatives. He was first appointed to his Senate seat in 2006.

His spouse, beforehand often known as Nadine Arslania, 56, was unemployed earlier than they met in 2018, however the next 12 months she integrated a brand new consulting firm, Strategic Worldwide Enterprise Consultants LLC., the indictment states. A foreclosures case towards her was closed quickly after.

After their marriage in 2020, she got here into possession of a considerable amount of gold, a few of which she later bought for between $200,000 and $400,000, in keeping with the senator’s monetary disclosure stories. Her lawyer David Schertler, didn’t reply to a request for remark about his shopper’s worldwide enterprise work or how she acquired the gold bars.

The couple is accused of accepting lots of of 1000’s of {dollars} in bribes from three enterprise associates: Wael Hana, Jose Uribe and Fred Daibes.

Hana is a buddy of Nadine Menendez and the Egyptian-American founding father of a enterprise that certifies beef imported into Egypt meets Islamic spiritual requirements. He had no earlier expertise in Halal certification, however in 2019 the Egyptian authorities gave his firm a monopoly.

He is accused of placing collectively and paying for conferences and dinners with Menendez and Egyptian officers the place navy gross sales and financing have been mentioned, in keeping with the indictment. He additionally helped pay Nadine Menendez’ mortgage, the indictment states.

Fred Daibes is a rich developer in Edgewater, New Jersey, who pleaded responsible to financial institution fraud fees final April and is predicted to be sentenced to probation in October. He was additionally a longtime fundraiser for Menendez, who’s accused of attempting to make use of his affect to strain the president to appoint a U.S. lawyer for New Jersey who would shield Daibes.

Jose Uribe can also be a New Jersey businessman within the trucking and insurance coverage enterprise who was associates with Hana, in keeping with the indictment. Hana and Uribe acquired Nadine Menendez a Mercedes convertible after the senator referred to as a authorities official about one other case involving an affiliate of Uribe, in keeping with the indictment.

“Congratulations mon amour de la vie, we’re the proud homeowners of a 2019 Mercedes,” Nadine Menendez texted her husband, together with a coronary heart emoji.

Hana’s spokesperson stated the fees had “completely no benefit.”

Messages in search of remark have been left for attorneys for Daibes and Uribe.

PREVIOUS INDICTMENT

This seems to be the primary time in U.S. historical past {that a} sitting senator has been indicted twice in two unrelated circumstances, in keeping with the Senate Historic Workplace.

Menendez was as soon as charged with bribery, fraud and conspiracy, accused of accepting lavish items to strain authorities officers on behalf of a Florida physician and buddy. He was accused of pressuring authorities officers to resolve a Medicare billing dispute in favor of Dr. Salomon Melgen in addition to securing visas for the physician’s girlfriends and serving to shield a contract to offer port-screening gear to the Dominican Republic.

Menendez has all the time maintained his innocence. His attorneys stated marketing campaign contributions and items — which included journeys on his personal jet to a resort within the Dominican Republic and a trip in Paris — have been tokens of their longtime friendship, not bribes. Melgen was convicted of well being care fraud in 2017, however President Donald Trump commuted his jail sentence.

A jury deadlocked at trial and prosecutors dropped the case. Menendez was rebuked by the Senate Ethics Committee, however New Jersey voters returned him to the Senate months later. He defeated a well-financed challenger in a midterm election that broke a Republican lock on energy in Washington.

Menendez faces reelection subsequent 12 months in a bid to increase his three-decade profession in Washington as Democrats maintain a slender majority within the Senate.

NEXT STEPS IN THE SENATE

Based on guidelines within the Senate Democratic caucus, Menendez has to step down as chairman of the International Relations Committee. Majority Chief Chuck Schumer stated he would relinquish the place “till the matter has been resolved.” Sen. Ben Cardin, D-Md., is predicted to switch him as chairman, as he did between 2015 and 2018 the final time Menendez confronted federal fees and a trial.

Given the severity of this indictment and that Menendez is charged with utilizing his position on the panel to profit himself personally, Schumer may additionally ask Menendez to depart the committee altogether. Schumer has not but made any feedback on the indictment.

Schumer may additionally name on Menendez to resign from the Senate, however that turns into extra difficult as Democrats have solely a one-seat majority. Whereas New Jersey Gov. Phil Murphy would seemingly appoint a Democrat to switch Menendez, Schumer might not wish to create any uncertainty concerning the stability of energy.

And even when Schumer referred to as on Menendez to resign, he wouldn’t should. The seat is his till the following election, and Menendez has not but stated whether or not he’s operating once more. In an announcement, Menendez struck a defiant tone: “I’m assured that this matter will probably be efficiently resolved as soon as the entire information are offered and my fellow New Jerseyans will see this for what it’s.”