Plot Twist: Robert Mueller Now Investigating Tony Podesta, Podesta Group In Russia Investigation
Special Counsel Robert Mueller Now Investigating Tony Podesta, Podesta Group In Russia Probe

Brother of Clinton campaign chair steps down from lobbying firm amid reports of scrutiny from special counsel

Tony Podesta, founder of the Podesta Group and brother of former Hillary Clinton campaign chairman John Podesta, is resigning from his lobbying company.

Podesta and his lobbying firm were subjects of a federal investigation led by Special Counsel Robert Mueller.

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The Podesta Group was one of several firms that worked on a campaign called the European Centre for a Modern Ukraine. The campaign was led by Manafort and promoted Ukraine’s image in the West.

According to Politico, which first reported the story, Podesta will be handing over full operational and financial control to the company’s CEO Kimberly Fritts.

The investigation into Podesta and his firm grew out of investigators’ examination of Manafort’s finances. Manafort organized a PR campaign on behalf of a nonprofit called the European Centre for a Modern Ukraine. Podesta Group was one of several firms that were paid to do work on the PR campaign to promote Ukraine in the U.S.

Podesta Group filed paperwork with the Justice Department in April stating that it had done work for the European Centre for a Modern Ukraine that also benefited the same Ukrainian political party that Manafort once advised. Podesta Group said at the time it believed its client was a European think tank untethered to a political party.

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Podesta has long been a larger than life figure on K Street, growing his business from a boutique firm into a massive lobbying and public relations operation. He is well known for his flashy dressing, vast art collection, generous campaign donations across all levels of Democratic politics and, of course, for his brother John Podesta, Hillary Clinton’s campaign chairman.

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Podesta Group has struggled in the wake of the Mueller investigation. More than a dozen of its lobbying clients have cut ties with the firm this year, according to lobbying filings. Revenues have also declined: The firm brought in an estimated $4.8 million in the third quarter of 2017, down from $5.2 million in the second quarter of 2017 and from $6.1 million in the third quarter of 2016.