By Philip Jankowski and Joseph Morton
https://www.dallasnews.com
WASHINGTON – U.S. Rep Henry Cuellar and his wife were indicted Friday on federal charges accusing them of receiving almost $600,000 in bribes to advance the interests of the former Soviet republic of Azerbaijan and a bank in Mexico.
The 68-year-old Laredo Democrat and his wife, Imelda Cuellar, 67, were accused in 14 federal charges of participating in schemes involving bribery, illegal foreign influence and money laundering, the Justice Department said.
The most serious charges carry a maximum penalty of 20 years in federal prison.
According to the Justice Department, the Cuellars accepted bribes from an oil and gas company that is controlled by the government of Azerbaijan and from a bank based in Mexico City. In exchange, Cuellar agreed to work to further the interests of the Eastern European country and the financial institution, agency officials said.
The Cuellars made their first appearance in a Houston courtroom Friday and were taken into custody, The Associated Press reported.
Before the indictment became public, Cuellar issued a statement saying he and his wife were innocent and he still plans to seek reelection in November.
“Everything I have done in Congress has been to serve the people of South Texas,” he said.
According to the Justice Department, the government of Azerbaijan paid Cuellar and his wife through “sham contracts” laundered through a series of shell companies owned by Imelda Cuellar, who did little to no work for the money.
In exchange, the Justice Department said, Henry Cuellar allegedly used his office to influence U.S. foreign policy in Azerbaijan’s favor.
According to the 54-page indictment, Cuellar was paid to influence the U.S. position toward a territorial dispute between Azerbaijan and Armenia. Cuellar worked to undermine fellow members of Congress in the Armenian Caucus, including working against legislation that would have paid $1.4 million to remove mines from the disputed Nagorno-Karabakh region.
The Mexican bank allegedly paid the Cuellars $236,390. In exchange, Cuellar allegedly agreed to “advise and pressure” high-ranking U.S. officials to take steps favorable to the bank, the agency said.
Specifically, Cuellar inserted language favorable to the bank into a committee report and at least one bill. Cuellar also worked to pass a bill that would prevent federal oversight of payday loan businesses, the indictment said. The unnamed bank owned one such business.
Payments passed through several intermediaries and included one adult child of the Cuellars and an unnamed person identified as Cuellar’s campaign manager, the indictment alleged.
The FBI raided Cuellar’s home and campaign office in Laredo on Jan. 19, 2022. ABC News reported the raid was tied to “a wide-ranging federal probe relating to the former Soviet state of Azerbaijan and several U.S. businessmen.”
Cuellar has been co-chair of the Congressional Azerbaijan Caucus.
Six weeks after the raid, Cuellar fell short of winning his primary by about 700 votes, although he won the runoff.
Cuellar said in his statement that he had sought advice from the House Ethics Committee and a national law firm before taking actions described in the indictments.
“The actions I took in Congress were consistent with the actions of many of my colleagues and in the interest of the American people,” he said.
Cuellar said he had requested a meeting with prosecutors, but they refused to discuss the case or hear his side of the story.
“Imelda and I have been married for 32 years. On top of being an amazing wife and mother, she’s an accomplished businesswoman with two degrees. She spent her career working with banking, tax, and consulting,” Cuellar said. “The allegation that she is anything but qualified and hard working is both wrong and offensive.”
Cuellar, who has been in Congress since 2005, is a senior member of the House Appropriations Committee.
A spokesperson for U.S. Rep. Hakeem Jeffries, House minority leader, said in a statement that rules require Cuellar to take leave as ranking member of the Homeland Security Appropriations Subcommittee while the charges are pending.
“Like any American, Congressman Cuellar is entitled to his day in court and the presumption of innocence throughout the legal process,” spokesperson Christie Stephenson said.
The National Republican Congressional Committee called on Cuellar’s Democratic colleagues to pressure him to resign.
“If not – they are hypocrites whose statements about public service aren’t worth the paper they’re written on,” committee spokeswoman Delanie Bomar said in a statement.
Cuellar represents a South Texas swing district that has helped determine which party controls the U.S. House.
He is among the most moderate Democrats in the House, breaking with his party at times on issues such as border security and abortion rights. Those positions have drawn the fire of progressives who have tried unsuccessfully to dislodge him with primary challenges.
Correction at 8:10 p.m. May 3, 2024: A quote originally attributed to U.S. Rep. Hakeem Jeffries was from spokesperson Christie Stephenson.
