Progressive lobbying firm the Podesta Group is on the verge of collapse. According to a report at CNN, the company’s CEO announced this week that employees would be out of work next week and the entire company would fold by the end of the year.
Employees were asked to clear out their desks and were told they may not be paid beyond November 15, multiple sources said.
The company will try to provide healthcare to the end of the year.
A report at Bloomberg suggests things aren’t all that bad. CEO Kimberly Fritts apparently plans to take the Podesta Group’s clients and much of its staff and start a new firm.
Tony Podesta stepped down two weeks ago on the knowledge that special counsel Robert Mueller was investigating the firm’s work in conjunction with Paul Manafort on behalf of the European Centre for a Modern Ukraine which supported Ukrainian President Yanukovych.
Manafort received information from Ukraine President Viktor Yanukovych and passed it on to the Podesta Group and Mercury, neither of which registered as foreign agents. This is what the special counsel nailed Manafort for – violation of FARA, the Foreign Agents Registration Act.
Prosecution under FARA is usually reserved for foreign spies. Mueller decided to extend its use.
Podesta is gone but the group will just re-establish itself under a new name.