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FBI raids home, office of lobbyist Michael Esposito FBI raids home, office of lobbyist Michael Esposito
(about 7 hours later)
FBI agents investigating a lobbyist who has claimed close ties to President Trump and his family searched the man’s Northern Virginia home and D.C. office early Thursday morning looking for evidence of possible fraud, according to people familiar with the matter. FBI agents investigating a lobbyist who has claimed to have close ties to President Trump and his family searched the man’s Northern Virginia home and D.C. office early Thursday looking for evidence of possible fraud, according to people familiar with the matter.
Michael Esposito’s business has boomed in the Trump era, but Trump, White House officials and senior Republicans have said he greatly exaggerated his claims of access to the president and his inner circle.Michael Esposito’s business has boomed in the Trump era, but Trump, White House officials and senior Republicans have said he greatly exaggerated his claims of access to the president and his inner circle.
Following a Washington Post story in November on Esposito’s business, the FBI is investigating to see if Esposito may have defrauded his clients or engaged in any other type of financial fraud, the people said. Following a Washington Post story in November on Esposito’s business, the FBI is investigating to determine whether Esposito may have defrauded his clients or engaged in any other type of financial fraud, the people said.
Esposito did not respond to phone messages or emails requesting comment, and no one answered the door at his home in Sterling Friday morning. Esposito did not respond to phone messages or emails requesting comment, and no one answered the door at his home in Sterling on Friday morning.
Neighbors said about a half-dozen cars arrived at his home around 7 a.m. Thursday morning and didn’t leave for several hours. People wearing FBI jackets and suits came in and out of Esposito’s home. Neighbors said about half a dozen cars arrived at his home at about 7 a.m. Thursday and didn’t leave for several hours. People wearing FBI jackets and suits came in and out of Esposito’s home.
“They’re really nice people,” neighbor Richard Tate, who lives across the street, said of the Esposito family on Friday. “So I was surprised.”“They’re really nice people,” neighbor Richard Tate, who lives across the street, said of the Esposito family on Friday. “So I was surprised.”
Another couple who lives nearby, Sheza and Salman Mansoor, said they were unaware of the law enforcement activity but that they had often marveled at the luxury cars parked in Esposito’s driveway. Another couple who lives nearby, Sheza and Salman Mansoor, said that they were unaware of the law enforcement activity but that they had often marveled at the luxury cars parked in Esposito’s driveway.
On Friday, there were Rolls-Royce and Lincoln SUVs parked in front of Esposito’s house. On social media, Esposito has posted photos of himself in other luxury cars and wrote of the pleasure he takes in buying and selling Ferraris, Bentleys and Rolls-Royces.On Friday, there were Rolls-Royce and Lincoln SUVs parked in front of Esposito’s house. On social media, Esposito has posted photos of himself in other luxury cars and wrote of the pleasure he takes in buying and selling Ferraris, Bentleys and Rolls-Royces.
“Nobody in this neighborhood has cars like that, so they stood out,” Sheza Mansoor said. “Amazing cars.”“Nobody in this neighborhood has cars like that, so they stood out,” Sheza Mansoor said. “Amazing cars.”
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An FBI spokesperson declined to comment. Loudoun County Sheriff spokesman Colin Whittington said the sheriff’s office assisted with an FBI operation in Sterling Thursday morning but referred questions to the FBI. An FBI spokesperson declined to comment.
Colin Whittington, a spokesman for the Loudoun County Sheriff’s Office, said it assisted with an FBI operation in Sterling on Thursday morning but referred questions to the FBI.
Esposito’s firm, Federal Advocates, has offices at 1666 K St. NW, which were also subject to search, according to the people familiar with the matter, who spoke on the condition of anonymity because they were not authorized to discuss an ongoing investigation.Esposito’s firm, Federal Advocates, has offices at 1666 K St. NW, which were also subject to search, according to the people familiar with the matter, who spoke on the condition of anonymity because they were not authorized to discuss an ongoing investigation.
A spokesman for the D.C. police, Sean Hickman, said the District’s police force did not participate in the FBI operation at Esposito’s office. D.C. police spokesman Sean Hickman said the District’s police force did not participate in the FBI operation at Esposito’s office.
A person who answered the phone at Federal Advocates said the office was closed for the holidays and declined to say whether he was aware of the raid. A person who answered the phone at Federal Advocates said the office was closed for the holidays and declined to say whether he was aware of the raid. 
After the 2016 election, Esposito sought to join the crop of loyalists who follow every new administration in trying to climb to the top of the Washington influence machine. His ascent was particularly notable, however, because his connections to Trump world don’t hold up to scrutiny — and because he had previously represented himself as a Democrat. After the 2016 election, Esposito sought to join the crop of loyalists who follow every new administration in trying to climb to the top of the Washington influence machine. His ascent was particularly notable, however, because his connections to Trump’s world don’t hold up to scrutiny — and because he had previously represented himself as a Democrat.
After The Post’s story in November, Trump bluntly disputed Esposito’s claims to have a “strong personal and professional relationship with President Trump.” Trump tweeted: “I don’t know, to the best of my knowledge, a man named Michael Esposito. . . . I don’t like him using my name to build his consulting company, or whatever. Please advise his clients and Administration officials accordingly.” After The Post’s story in November, Trump bluntly disputed Esposito’s claims to have a “strong personal and professional relationship with President Trump.”
Federal Advocates collected $4.66 million from lobbying clients in 2018, up from $3.25 million in 2017 and $907,000 in 2016, according to the Center for Responsive Politics. The explosive growth led Bloomberg Government news service to dub Federal Advocates the top-performing lobbying firm in 2017. Trump tweeted: “I don’t know, to the best of my knowledge, a man named Michael Esposito. . . . I don’t like him using my name to build his consulting company, or whatever. Please advise his clients and Administration officials accordingly.”
Before the raid occurred, some of Esposito’s clients said they were reconsidering their relationship with him, while others have stuck with him. Federal Advocates collected $4.66 million from lobbying clients in 2018, up from $3.25 million in 2017 and $907,000 in 2016, according to the nonprofit Center for Responsive Politics. The explosive growth led Bloomberg Government news service to dub Federal Advocates the top-performing lobbying firm in 2017.
One client announced Friday that it had terminated its contract with Federal Advocates: the Premium Cigar Association, which paid the firm $90,000 during the first nine months of 2019.
Before the raid, some of Esposito’s clients said they were reconsidering their relationship with him, while others have stuck with him.
Polk County, Iowa, Esposito’s top-paying municipal client, is seeking new bids for a federal lobbyist for the first time since Federal Advocates landed the contract a decade ago. The contract, which expired at the end of the year, has been renewed annually in the past. The county paid the firm $60,000 a month.Polk County, Iowa, Esposito’s top-paying municipal client, is seeking new bids for a federal lobbyist for the first time since Federal Advocates landed the contract a decade ago. The contract, which expired at the end of the year, has been renewed annually in the past. The county paid the firm $60,000 a month.
“No county our size pays that much,” said Supervisor Matt McCoy, who said Esposito has boasted to him about his close ties to the Trump administration. “I think they were clearly lying to us and misrepresenting things, which puts us in a terrible position.” “No county our size pays that much,” said Matt McCoy, a county supervisor who said Esposito has boasted to him about his close ties to the Trump administration. “I think they were clearly lying to us and misrepresenting things, which puts us in a terrible position.”
Another Polk County supervisor, Robert Brownell, said the firm had effectively lobbied on the county’s behalf but that “compared to what other counties our size are paying, the contract is out of whack.” Another Polk County supervisor, Robert Brownell, said that the firm had effectively lobbied on the county’s behalf but that “compared to what other counties our size are paying, the contract is out of whack.”
Representatives of the National Cannabis Industry Association and Canndescent, a California-based company that sells luxury cannabis products, said they would reconsider contracting with Federal Advocates. “I can’t ignore the reporting that came out for sure,” said Canndescent chief executive Adrian Sedlin. “I want to hear his point of view.” Representatives of the National Cannabis Industry Association and Canndescent, a California-based company that sells luxury cannabis products, said they would reconsider contracting with Federal Advocates. “I can’t ignore the reporting that came out for sure,” said Canndescent’s chief executive Adrian Sedlin. “I want to hear his point of view.”
Other major clients, including the Premium Cigar Association and Chinese tech giant Huawei — which signed Federal Advocates to one of the largest lobbying contracts in Washington this year — said before news of the raid that they planned to remain clients of the firm. Federal Advocates collected $1.65 million from Huawei in a three-month period this year, according to lobbying records. Other major clients, including Chinese tech giant Huawei — which signed Federal Advocates to one of the largest lobbying contracts in Washington this year — said before news of the raid that they planned to remain clients of the firm. Federal Advocates collected $1.65 million from Huawei in a three-month period this year, according to lobbying records.
“We obviously vetted him and chose to work with him,” said Huawei spokesman Rob Manfredo. “ I haven’t heard any reason that we wouldn’t.” “We obviously vetted him and chose to work with him,” said Huawei spokesman Rob Manfredo. “I haven’t heard any reason that we wouldn’t.”
Huawei recently scored a minor victory when the Trump administration said it has begun issuing licenses allowing some companies to restart U.S. tech sales to the company despite its position on a trade blacklist. Trump has called the company a “national security threat,” and the U.S. government has limited Huawei’s ability to do business with American firms.
One client of Esposito’s that appears to have retained his services is the U.S. Brain Tumor Association, which paid his firm $550,000 in 2018 and another $50,000 in 2019 to push the federal government “to establish health standards for deployed communications technologies and its effect on health and safety,” according to lobbying records. The group has warned in news releases about what it says are the dangers of cellphones.
According to its website, the group “supports families where an individual has developed a brain tumor or neurological disorder.” It has not filed the federal tax form and it lists a Gmail address as contact information on its website.
A spokeswoman for the American Brain Tumor Association (ABTA), which was founded in 1973 and funds more than $1 million in research annually, said “not one single person” among ABTA experts was familiar with the group.
The group lists Kevin Mottus as its president and only staff. Reached briefly by phone, Mottus said he had a “two-way” nondisclosure agreement with Esposito that prevented him from discussing the contract. Asked to describe his organization and its mission Mottus said, “I’m not going to be able to do that. I can’t say anything.” He did not return additional calls for comment.
Rachel Weiner contributed to this report.Rachel Weiner contributed to this report.