Congress is currently investigating allegations that Gurbir Grewal, a former New Jersey attorney general, may have been influenced by Senator Bob Menendez to secure a favorable deal for an associate.
This associate is now embroiled in a controversy involving Sam Bankman-Fried, the beleaguered founder of FTX.
Grewal, who currently serves as the head of enforcement for the Securities and Exchange Commission (SEC), was New Jersey's attorney general when he allegedly met with Menendez twice to discuss a case involving Jose Uribe. Uribe, a former insurance agent, is now one of three individuals accused of bribing Menendez and his wife with cash and gold bars, as revealed in a shocking federal indictment last month.
In 2019, Uribe's employee and an associate were under investigation by the New Jersey attorney general's office for alleged insurance fraud. Prosecutors claim that Menendez reached out to Grewal twice to exert pressure on him. Grewal, referred to as "Official-2" in the indictment, reportedly did not agree to intervene. However, after Menendez's intervention, the associate was offered a no-jail plea deal, which prosecutors describe as "more favorable" than a previous deal. The employee was not charged.
In return, Uribe allegedly gifted a $60,000 Mercedes convertible to Arslanian, who was then Menendez's girlfriend and is now his wife. This gift was reportedly given after Arslanian lost her car in an accident in which she killed a pedestrian in Bogota, NJ, in December 2018. This case is also being re-investigated.
Uribe, Arslanian, and Menendez reportedly celebrated the non-prosecution and plea deal with a champagne dinner.
In a separate investigation, members of the House Financial Services Committee are probing whether the timing of Bankman-Fried's arrest was intended to prevent him from testifying before Congress. They have demanded all correspondence between Grewal and others at the SEC and the Department of Justice (DOJ) related to the timing of Bankman-Fried's arrest in the Bahamas on December 12, 2022 the day before he was scheduled to testify before the Committee.
The Committee's letter, dated February 2023, highlights Grewal's statement that the SEC had authorized separate charges against Bankman-Fried. It states, "The timing of the charges and his arrest raise serious questions about the SECs process and cooperation with the Department of Justice."
Thomas Anderson, a government watchdog and publisher of a Washington DC newsletter, supports the claim that the arrest may have been timed by the SEC and prosecutors. He said, "GOP congressmen have good reason to investigate how the SEC enforcement division worked with the DOJ to arrest Sam Bankman-Fried on the day before he was supposed to give sworn testimony before Congress. What prosecutor or investigator gives up an opportunity to have the subject of their investigation grilled under oath on international TV?"
Bankman-Fried is currently on trial for fraud in Manhattan federal court following the collapse of his FTX cryptocurrency exchange in November 2022, which resulted in investors losing billions. He denies all charges.
Bankman-Fried's super PAC, Protect Our Future, donated $250,000 in 2022 to support Rob Menendez, the senator's son, who is a New Jersey Democratic congressman.
Republicans in the New Jersey Senate have called for an immediate inquiry into the relationship between Grewal, his family, and Menendez. New Jersey Republican Senator Michael Testa said, "As details about this case unfold, the reported linkage between Menendez and the Grewal family raises serious questions that demand action from the legislature."
The Grewal family has reportedly donated $40,000 to Menendez's campaigns. Grewal's cousin, Balpreet Grewal-Virk, is the vice chair of the Democratic Committee of Bergen County. She and her husband Yogi Virk contributed $19,900 to Menendezs campaigns, and other family members gave a Menendez political action committee an additional $19,000, according to public records.
Grewal-Virk was present when Menendez proposed to his now-wife in May 2019 on a Congressional trip to India. She can be seen in the Facebook video of the proposal.
A spokesperson for the SEC told The Post that SEC action is "stayed pending resolution" of criminal matters. They added, "The decision to institute an enforcement action was made by the Commission and not any individual member of the staff. As a federal agency, we cant comment on what campaigns any staff members or their families might have supported."
Last week, Menendez, his wife Nadine Menendez, and co-accused New Jersey businessman Wael Hana were hit with fresh charges accused of acting as foreign agents for Egypt. They all deny all charges.
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