Robert J. Cabelly, a D.C.-based lobbyist, has been indicted for violations, among other things, of the International Emergency Economic Powers Act in connection with lobbying and other activities he was alleged to have engaged in on behalf of the Government of Sudan. A copy of the indictment can be read by clicking here.

Under the Sudanese Sanctions Regulations, lobbying services can only be provided to the Government of Sudan under a license granted by the Office of Foreign Assets Control. The odd thing about this case is that Cabelly had applied for and obtained a license to provide such lobbying services. The violations alleged by the indictment related to services performed before and after the period of validity of the license as well as services performed during the validity of the license that allegedly exceeded the scope of the license.

In May 2005, Cabelly applied for an OFAC license seeking permission to provide “strategic counsel, public relations and government relations” services to Sudan. The application specifically noted that Cabelly would not be providing advice on trade and investment promotion “which is not appropriate at this time.” On July 11, 2005, OFAC issued the license which specifically stated that it did not authorize activities which involve “commercial projects in Sudan or any other activities which would benefit Sudan or persons located therein.”

The indictment’s allegation of pre-license activities seems to find its sole support in an email sent by Cabelly to Sudan two days after the license was issued. That email asked Sudan for a payment of $70,000 to compensate him for the past four months of work provided to the Government It seems reasonable to assume that Cabelly may have erroneously believed that a license was necessary only to cover payment for his services. This would explain why Cabelly waited until after the license was granted to discuss the compensation issue.

The activities during the validity of the license appear to involve, among other things, Cabelly’s assistance to various investors and companies interested in investing in oil exploration and production in Sudan. One of these companies, identified in the indictment only as “French Oil Company — Soudan” is thought to be, and likely was, French oil giant Total SA.

Once Cabelly’s activities in Sudan became known, he came under pressure to stop providing services to Sudan. A 2006 Washington Post article details leaflets that were stapled to trees in Cabelly’s Capitol Hill neighborhood taking him to task for his representation. Representative Frank Wolf got out his pitchfork and torch and joined the crowd of protestors, going so far as to write Condi Rice to complain about Cabelly being given the license to represent Sudan. Wolf was apparently unaware that the license came from OFAC, which is part of the Treasury Department, and not from the State Department. (Just because someone makes laws doesn’t mean that he actually has to understand them.)

In February 2007, Cabelly informed OFAC that his contract with Sudan was over and requested that his OFAC license be terminated. Even so, the indictment alleges that Cabelly continued to provide services to the Government of Sudan and to companies doing business in Sudan, including activities to assist Sudan Airways to acquire an aircraft from a “Bahrain aircraft acquisition company.”

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