lobbying

Good morning, and welcome to L.A. on the Record — our City Hall newsletter. It’s Noah Goldberg, with an assist from Connor Sheets, giving you the latest on city and county government.

As Los Angeles city officials deal with the fallout from last month’s Lineage warehouse fire, one powerful lobbying firm has been at the center of the efforts.

M Strategic Communications took on Lineage as a client two days after the fire ignited at the company’s cold storage facility in Boyle Heights, spewing toxic smoke for miles. A putrid odor from 85 million pounds of rotting food remains a concern.

The company said in a filing to the city’s Ethics Commission that it would be lobbying the mayor and other city officials and would also handle “crisis communications and work related to impact of facility fire.”

Shortly after the fire started, Lineage CEO Greg Lehmkuhl got on the phone with Mayor Karen Bass, and the mayor suggested that Lineage give money to the nonprofit California Community Foundation to disburse to local organizations, according to Jeff Rivera, the company’s chief operating officer.

California Community Foundation has also hired M Strategic Communications to lobby the mayor and other city officials related to reforms to the city’s mansion tax.

After Bass’ suggestion, M Strategic Communications put its two clients, Lineage and CCF, in touch. By that point, according to M Strategic, CCF had already created a fund to help with the emergency.

The lobbying firm also has close ties to Bass. One of its two principals is Shannon Murphy, who was a deputy chief of staff to Bass when Bass was speaker of the State Assembly more than a decade ago. Murphy remains a close confidant of Bass, according to a source with knowledge of the mayor’s office.

M Strategic Communications subcontracted some of the work in its June 19 contract with Lineage to Yusef Robb, who was an unpaid advisor and spokesperson to the mayor until early June.

Robb initially continued to serve as an unpaid, unofficial advisor to the mayor, though no longer as a spokesperson. After The Times and other outlets reported on his work for Lineage last Saturday, Robb said he would no longer serve as an unpaid advisor.

CCF has been paying out the $2 million in funds to more than 20 groups to provide relief to Boyle Heights residents.

During a raucous town hall in Boyle Heights last week, where residents booed the officials who spoke, Bass noted that Airbnb was providing short-term rental assistance for people who live close to the fire.

As it turns out, Airbnb is also a client of M Strategic Communications, which was brought on to help legalize vacation home rentals in the city.

Airbnb has provided more than 1,000 nights of free housing to local residents since the fire, the company said.

“We are grateful that so many of those we work with step up when Los Angeles is in need,” said Chris Modrzejewski, a principal at M Strategic Communications.

Whither auditors?

L.A. City Controller Kenneth Mejia investigates inefficiencies, fraud and other issues in the city’s more than 40 departments, whose budgets add up to more than $46 billion per year.

He employs eight auditors and five fraud, waste and abuse investigators, which he says is far from enough. He has requested more staff, to no avail.

On Thursday, Mejia endorsed Councilmember Nithya Raman for mayor, arguing that she would better fund his department and would be more open and transparent with information than Bass’ office has been.

“Nithya believes in the power of transparency and accountability as a tool,” Mejia said during a press conference with Raman.

Raman did not provide specific numbers on how many people she would hire for Mejia’s team.

“I’ve committed to ensuring that we’re fully funding that fraud, waste and audit team,” she said. “The other piece is not standing in the way, but actually opening the door when the controller asks for information about various programs and departments.”

Bass did not immediately respond to a request for comment.

Fire funds

Local leaders aren’t happy that Congress still hasn’t appropriated supplemental funding to assist with recovery from the Palisades and Eaton fires.

The catastrophic fires were extinguished more than a year-and-a-half ago, but federal lawmakers have yet to fund a combined request for $15.7 billion from the L.A. city and county governments.

That’s different from what happened after past disasters, such as Hurricane Katrina and Superstorm Sandy, when Congress appropriated large portions of the amounts that were requested.

The federal money would go toward projects like restoring and rebuilding infrastructure, parks, schools and senior centers, as well as housing and residential support.

The delays have slowed the recovery process and hamstrung reconstruction efforts, according to Bass and L.A. County Supervisor Kathryn Barger.

This week, the pair sent joint letters to congressional leaders and members of the county’s congressional delegation, calling on them to fund the requests.

They also lamented the fact that the Trump administration’s recent $87.6 supplemental funding request did not detail support for fire victims.

Bass and Barger called on Congress to appropriate supplemental funds “to cover the infrastructure and rebuilding needs associated with the Eaton and Palisades fires.”

State of play

— ROBB JOBS: While serving as a top informal advisor to Bass, Yusef Robb was also working as a crisis communications consultant for Lineage, the company whose cold storage warehouse in Boyle Heights erupted in flames last month. Robb stepped down as an advisor to the mayor following The Times and other outlets’ reporting.

— FREE AND FOR SALE: Robb worked for the mayor as an unpaid spokesperson and advisor for months earlier this year, at the same time that he had a $587,500 contract with Los Angeles World Airports.

— ANOTHER ONE GONE: A top spokesperson for Los Angeles Mayor Karen Bass departed Monday after a brief tenure, joining a growing list of communications aides who have left over the last nine months. Kolby Lee, who started as Bass’ director of communications in February, said he was resigning to spend time with family and loved ones.

— AIRING GRIEVANCES: The contractor for Los Angeles International Airport’s long-awaited automatic people mover train filed a lawsuit against the city, amid ongoing disputes over project delays.

— PROJECT NIXED: The state has rescinded a $73.4-million grant for a new mental health and drug treatment facility in San Pedro, putting the future of the controversial project in jeopardy. Neighbors had picketed outside the property at 2100 S. Western Ave. and packed a town hall in April to oppose the project, with some expressing fears about drug users coming to the area.

—TO FLOCK OR NOT TO FLOCK: Less than a week after the Los Angeles Police Department halted its relationship with Flock Safety over concerns about how the company shares data from automated license plate readers, police officials said they are working out a new agreement — this time with more protections.

— HEAT WAVE: The Bass administration has appointed a new chief heat officer. Daniela Simunovic took on the role on May 31 after the administration discreetly fired Marta Segura, the first person to hold the position. Simunovic served as Bass’ senior director of climate and sustainability for three years.

QUICK HITS

• Where is Inside Safe? This week, the mayor’s signature homelessness program went to Chatsworth in City Councilmember John Lee‘s district, bringing 22 people inside.
• On the docket next week: The L.A. City Council remains on recess next week.

Stay in touch

That’s it for this week! Send your questions, comments and gossip to LAontheRecord@latimes.com. Did a friend forward you this email? Sign up here to get it in your inbox every Saturday morning.

Reporting from Sacramento — Susan Kennedy, the former top aide to Gov. Arnold Schwarzenegger, has agreed to pay $32,500 in fines for shadow lobbying, or advocating for clients before a state agency without registering as a lobbyist, according to documents released Monday.

The state Fair Political Practices Commission’s enforcement staff says Kennedy failed to register though she attempted to influence the California Public Utilities Commission from 2012 through 2014 on behalf of her clients, Lyft Inc. and San Gabriel Valley Water Co. Kennedy was paid $201,000 for the lobbying work.

Kennedy served on the California Public Utilities Commission from 2003 to 2006. She was chief of staff to Schwarzenegger from 2007 to 2011 before she became a consultant.

She signed an agreement with the FPPC enforcement staff admitting to the violations of the state Political Reform Act.

“In this case, the violations were serious since the public and other interested parties were not informed of Kennedy’s lobbying activity,” the agreement says. “While Kennedy maintains she did not intend to qualify as a lobbyist, given her experience and sophistication, she should have been aware at the time that her activity qualified as lobbying.”

The agreement and fines are expected to be approved by the Fair Political Practices Commission on Feb. 15.

The panel has been investigating shadow lobbying for years at the state Capitol and has fined others who have tried to secretly influence state government.

The state defines a lobbyist as someone who receives $2,000 or more in a calendar month to communicate directly, or through an agent, with state officials for the purpose of influencing legislative or administrative action. Such people must register as lobbyists with the state and periodically report who is paying them, how much and for what purpose.

Kennedy failed to register and disclose her payments, resulting in eight violations of the Political Reform Act. In 2012, Lyft Inc. gave Kennedy a $15,000-a-month contract to help “strategic management” of Lyft’s public policy interests, the report said.

Lyft and other ride-hailing firms including Uber were under the scrutiny of the PUC for operating without its approval at the time, and Lyft agreed to pay a fine of $20,000 for operating without the agency’s authority.

After being retained by Lyft, Kennedy contacted CPUC President Michael Peevey, Executive Director Paul Clanon and other staff to convince them that the state should work with the ride-hailing firms, not shut them down.

At Kennedy’s prodding, the California Public Utilities Commission decided to adopt rules on the new industry regarding liability insurance, driver licensing and background checks, driver training programs and vehicle inspections.

James C. Harrison, an attorney for Kennedy, said she “moved immediately once the discrepancy was identified to provide the necessary information requested by the FPPC. Integrity and character are hallmark principles in how Kennedy conducts herself in business, which is why she is acting swiftly and looks forward to its resolution.”

Updates from Sacramento »

patrick.mcgreevy@latimes.com

Twitter: @mcgreevy99

UPDATES:

3:15 p.m.: This article was updated to provide total amount of fines and a comment from Kennedy’s attorney, James C. Harrison.

This article was originally posted at 2:20 p.m.

Mérida, May 7, 2026 (venezuelanalysis.com) – A federal jury in Miami found former US Congressman David Rivera guilty on charges related to an undisclosed lobbying campaign on behalf of the Venezuelan government of Nicolás Maduro.

The guilty verdict was issued on Friday, May 1. Rivera was convicted of acting as an unregistered agent of a foreign government, conspiracy to commit money laundering, and tax evasion. The final decision concluded a six-week trial that featured testimony from Secretary of State Marco Rubio, a former roommate and close friend of the defendant.

Rivera, a Republican who represented Florida’s 25th district in the US House of Representatives from 2011 to 2013, was accused by the Justice Department of securing a $50 million contract to secretly lobby senior US officials to improve relations and ease sanctions on Caracas during the first Trump administration.

The indictment, unsealed in 2022, alleged that the former congressman and an associate, political consultant Esther Nuhfer, manipulated political connections to advance the interests of the Maduro government at a time when Washington was ramping up regime-change efforts against the Caribbean nation.

“The ultimate goal of these efforts was to garner political support in the United States for a normalization of relations,” prosecutors argued, detailing how Rivera allegedly tried to arrange meetings for then-Foreign Minister Delcy Rodríguez, now Venezuela’s acting president, with White House officials and members of Congress.

The conviction rested on a series of meetings and communications in 2017. The lobbying efforts proved unsuccessful as the Trump administration introduced its “maximum pressure” sanctions campaign beginning in August 2017.

One of the main highlights of the trial was the testimony of Secretary of State Marco Rubio. In an unusual move for a sitting cabinet member, Rubio took the stand in a Miami federal courthouse on March 24 to detail his interactions with Rivera.

According to reports, Rubio testified that Rivera approached him in July 2017 with an urgent plan. Rivera claimed to be working with Venezuelan media magnate Raúl Gorrín on an alleged scheme to convince Maduro to voluntarily resign and step down as president in exchange for guarantees for himself and his inner circle.

“He provided me with insight into some of the key phrases that regime insiders would have wanted to hear to know this was serious,” Rubio told the jury, referencing talking points he later used in a Senate floor speech about non-retribution. “No vengeance, no retribution.”

However, Rubio, who was serving as a Florida Senator at the time, insisted he was unaware that Rivera had been hired by the Maduro government to lobby. He claimed to have been “skeptical” of the plan, which he eventually labeled a “total waste of my time” after Gorrín failed to produce a promised letter from Maduro to Trump. Had he known Rivera was working directly for Caracas, Rubio stated, he never would have agreed to deliver a rare televised address to Venezuela on Gorrín’s Globovisión network.

The back-channel talks reportedly collapsed as the Trump administration escalated unilateral coercive measures and regime-change efforts.

Rivera’s defense team, led by attorney Ed Shohat, claimed that their client had not acted as a foreign agent but rather as a “promoter of democracy.” They contended the contract focused on commercial work, specifically luring Exxon Mobil back to Venezuela, which they argued is generally exempt from the Foreign Agents Registration Act (FARA).

Furthermore, Rivera latched onto Rubio’s testimony to argue that his actions were aimed at ousting Maduro. “Marco Rubio made it abundantly clear today that everything we worked on together in 2017 was meant to remove Maduro from power in Venezuela,” Rivera said in a statement following Rubio’s testimony.

The former congressman was taken into custody immediately after the verdict and faces a potentially lengthy prison sentence. He also faces additional federal charges in Washington, D.C., related to a separate foreign lobbying case.

Rivera’s trial came amid a fast-tracked rapprochement between Washington and Caracas. Diplomatic relations, which had been severed in 2019 after Trump recognized self-proclaimed “Interim President” Juan Guaidó as Venezuela’s legitimate leader, were reestablished in March.

The White House also recognized Rodríguez as Venezuela’s “sole leader” and lifted personal sanctions against her. Rodríguez took over the Venezuelan presidency after US special forces kidnapped Maduro on January 3.

The Trump administration has also seized control over the South American country’s oil revenues and has sought to force the return of Western corporations into Venezuela’s energy and mining sectors under privileged conditions.

Venezuelan authorities have not commented on Rivera’s trial and conviction. A government social media account labeled a report from investigative portal La Tabla on the alleged Maduro resignation plan as “fake,” but officials offered no further explanations.

Edited by Ricardo Vaz in Caracas.

May 1 (UPI) — Former U.S. Rep. David Rivera, R-Fla., was found guilty on Friday of being paid to secretly lobby elected U.S. officials to ease sanctions against Venezuela.

Rivera and a co-conspirator were each found guilty of taking payment from Nicholas Maduro to try to repair ties between the South American nation and the United States but never registering as an agent of a foreign country, The Miami Herald and NBC News reported.

A 12-person jury found the former Miami-Dade congressman and consultant Esther Nuhfer guilty of lobbying Secretary of State Marco Rubio and Rep. Pete Sessions, R-Texas, and attempting to set meetings up for Delcy Rodriguez, Venezuela’s then-foreign minister and current acting president.

Rivera was also found guilty of conspiring to commit money laundering and tax evasion.

Rivera had long been friends with his former roommate Rubio and became friends with Sessions when he was in Congress, and after Maduro gave him a $50 million contract he attempted to leverage those relationships.

Both Rivera and Nuhfer were caught having not registered themselves of lobbying for the federal government on behalf of another nation.

The convictions come after a 5-week trial that saw Rubio, who was in the Senate in 2017, when he met with Rivera and was told a plan to convince Maduro to step down was afoot.

Rivera denied that he was working on behalf of Maduro and the Venezuelan government, insisting that he was working to overthrow the now-deposed ruler rather than to promote his interests.

Nuhfur was released on bond ahead of her sentencing, while Rivera was judged to be a flight risk and will remain in jail until he is sentenced.

Rivera also still faces charges in another foreign lobbying case, as well.

MIAMI — A former Miami congressman and longtime friend of U.S. Secretary of State Marco Rubio was convicted Friday in connection with a secret $50-million lobbying campaign on behalf of Venezuela during the first Trump administration.

Jurors found Republican David Rivera and an associate, Esther Nuhfer, guilty on all counts, including failing to register as a foreign agent with the Justice Department and conspiracy to commit money laundering as part of their work for former President Nicolás Maduro’s government.

The seven-week trial offered a rare glimpse into Miami’s role as a crossroads for foreign influence campaigns aimed at shaping U.S. policy toward Latin America, one highlighting the city’s reputation as a magnet for corruption and anti-Communist crusaders among its sizable exile population.

It included testimony from Rubio, Texas Congressman Pete Sessions and a top Washington lobbyist — all of whom testified that they were shocked to learn belatedly of Rivera’s consulting contract with a U.S.-based affiliate of Venezuela’s state oil company, PDVSA.

In an 11-count indictment unsealed in 2022, prosecutors alleged that Rivera was tapped by then Foreign Minister Delcy Rodríguez — now Venezuela’s acting president — to work Republican connections from Rivera’s time in Congress to get the first Trump administration to abandon its hard-line stance and ease crippling sanctions on Venezuela.

As part of the charm offensive, prosecutors alleged, Rivera and Nuhfer, a political consultant, manipulated influential friends, including Rubio and Sessions, like “pawns on a chess board.” The goal: to try to normalize relations with the new Trump administration at a time when the Maduro government was buffeted by serious accusations of human rights violations.

“As long as the money kept coming in, they didn’t care from where,” prosecutor Roger Cruz said of the defendants during closing arguments.

‘Massive secret’ threatened to damage Rivera’s political career

But the two held onto the “massive secret” and didn’t disclose their lobbying work as required, for fear it would have ended Rivera’s political career as an anti-Communist stalwart, Cruz said.

To hide his work, prosecutors allege, Rivera also set up an encrypted chat group called MIA — for Miami — with his main conduit to the Maduro government: Venezuelan media tycoon Raúl Gorrín, who was subsequently charged in the U.S. with bribing top Venezuelan officials.

Members of the group used playful code words to discuss their activities: Maduro was the “bus driver,” Sessions “Sombrero,” Rodríguez “The Lady in Red,” and millions of dollars “melons,” according to copies of text messages presented to the jury.

“It was all about la Luz,” Cruz said, referring to the Spanish word for light, which Rivera and others repeatedly used to discuss payments from Caracas.

Attorneys for Rivera and Nuhfer said the two acted in good faith and believed they were under no requirement to disclose their work. The three-month, $50-million contract with Rivera’s one-man consulting firm, they say, was focused exclusively on luring oil giant ExxonMobil back to Venezuela — commercial work that is generally exempt from the Foreign Agents Registration Act.

Wholly distinct from that consulting work, they say, were Rivera’s meetings with Rubio and Sessions, which occurred after the consulting contract had expired and was focused on ushering in leadership in Venezuela that would be less hostile to the U.S.

“He was working every possible angle to get Nicolás Maduro out,” defense attorney Ed Shohat said during closing arguments. “There was not a word in the chats about normalizing relations.”

Nuhfer’s attorney, David Oscar Markus, likened the government’s case to the 17th century Salem witch trials, presuming ill intent that was belied by the flimsiest of evidence.

“My client does not have a dark heart,” he said.

Exxon meetings for Rodríguez

Prosecutors said Rivera used the contract with New York-based PDV USA as cover for illegal lobbying.

Once exposed, the partners tried to hide the work — backdating documents and coming up with sham agreements like one to justify a wire transfer of $3.75 million to a South Florida company that maintained Gorrín’s luxury yacht.

The political activity included setting up meetings for Rodríguez in New York, Caracas, Washington and Dallas. As part of the effort, the two roped in Sessions, who later tried to broker a meeting for Rodríguez with the CEO of ExxonMobil that had succeeded Trump’s then-secretary of State, Rex Tillerson. After a secret meeting in Caracas with Maduro, Sessions also agreed to deliver a letter from the Venezuelan president to Trump.

The outreach quickly unraveled, however. Within six months of taking office, Trump sanctioned Maduro and labeled him a “dictator,” launching a “maximum pressure” campaign to unseat the president.

However, nearly a decade later, Rodríguez has emerged as the second Trump administration’s trusted partner after the U.S. military’s ousting of Maduro.

Before being elected to Congress in 2010, Rivera was a high-ranking Florida legislator. During that time, he shared a Tallahassee home with Rubio, who eventually became the Florida House speaker.

Rivera has previously faced controversy, including allegations that he secretly funded a Democratic spoiler candidate in a 2012 congressional race. Last year, federal prosecutors dropped the case after an appeals court threw out a sizable fine imposed by a lower court. Rivera was also investigated — but never charged — for alleged campaign finance violations and a $1-million contract with a gambling company while serving in the Florida legislature.

Goodman writes for the Associated Press.