Obama's 1st transportation secretary admits to hiding payment from Lebanese-Nigerian billionaire


The Justice Department said Wednesday that Ray LaHood, when he was U.S. transportation secretary, accepted a $50,000 check that he "understood at the time" came from Lebanese-Nigerian billionaire Gilbert Chagoury, purposefully failed to disclose the "loan" as required on two government ethics forms, then "made misleading statements to FBI agents investigating Chagoury about the check and its source."
LaHood, a Republican former congressman from Illinois, served in President Barack Obama's Cabinet from 2009 to 2013. He initially denied receiving the loan in a 2017 interview with the FBI, Politico reports, but he acknowledged the payment when agents showed him a copy of the check. Under a December 2019 non-prosecution agreement, the Justice Department disclosed Wednesday, LaHood agreed to pay back the $50,000 he got in June 2012, pay a $40,000 fine, and cooperate with the government's investigation of Chagoury.
The Justice Department also said Thursday that Chagoury had agreed to pay $1.8 million to avoid prosecution over $180,000 in illegal campaign contributions he funneled to U.S. politicians through an associate in Virginia, Toufic Baaklini. Chagoury gained notoriety for donating to the Clinton Foundation, but all the payments though Baaklini appear to have gone to Republicans, including $100,000 to Mitt Romney's 2012 presidential campaign, Politico reports.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Baaklini also wrote the personal check to LaHood, but that was a "separate and unrelated matter" from the campaign finance violations, the Justice Department said. In 2015, Baaklini did chip in $2,700 to the campaign of LaHood's son Darin, who now holds his father's old seat in Congress, Axios notes.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
The IDF's manpower problem
The Explainer Israeli military's shortage of up to 12,000 troops results in call-up for tens of thousands of reservists
-
Quiz of The Week: 16 – 22 August
Quiz Have you been paying attention to The Week's news?
-
Can Soho House get its edge back?
Talking Point The private members' club has lost its exclusive appeal – but a £2 billion buy-out could offer a fresh start
-
Trump halts Gaza visas as Israelis protest war
Speed Read Laura Loomer voiced her concerns over injured Palestinian kids being brought to the US for treatment and a potential 'Islamic invasion'
-
Russia tries Ukraine land grab before Trump summit
Speed Read The incursion may be part of Putin's efforts to boost his bargaining position
-
US, China extend trade war truce for 90 days
Speed Read The triple-digit tariff threat is postponed for another three months
-
Europe counters Putin ahead of Trump summit
Speed Read President Trump will meet with Russian President Vladimir Putin in Alaska this week for Ukraine peace talks
-
Israeli security cabinet OKs Gaza City takeover
Speed Read Netanyahu approved a proposal for Israeli Defense Forces to take over the largest population center in the Gaza Strip
-
How China uses 'dark fleets' to circumvent trade sanctions
The Explainer The fleets are used to smuggle goods like oil and fish
-
Thailand, Cambodia agree to ceasefire in border fight
Speed Read At least 38 people were killed and more than 300,000 displaced in the recent violence
-
Israel 'pauses' Gaza military activity as aid outcry grows
Speed Read The World Health Organization said malnutrition has reached 'alarming levels' in Gaza