In the spring of 2016, as Hillary Clinton neared the Democratic presidential nomination, the FBI investigated foreign donations to the Clinton Foundation while she was influencing U.S. foreign policy. Internal FBI communications indicated that field officers recommended questioning Clinton about the potential misuse of the foundation as a financial resource for her campaign. Despite these concerns, the investigation failed to progress, with FBI headquarters in Washington opting not to pursue the matter further.
Documents released to the Senate Judiciary Committee detail the FBI’s inquiries regarding the Clinton Foundation, codenamed “Cracked Foundation.” The investigation was sparked by a recorded conversation between Clinton and Indian hotelier Sant Singh Chatwal, discussing donations to the foundation and her campaign debts from 2008. Notably, Chatwal was already under scrutiny for his previous guilty plea in 2014 for laundering donations to Clinton’s 2008 campaign, raising questions about the integrity of the foundation’s funding.
Concerns Over Foreign Influence
Agents involved in the “Cracked Foundation” investigation expressed serious concerns regarding possible foreign bribery. They intended to question Clinton about Chatwal’s involvement in the 2008 Indo-U.S. nuclear agreement, which allowed India to receive American dual-use nuclear technology without adhering to the Nuclear Non-Proliferation Treaty. Chatwal had significant lobbying influence and was quoted as saying, “Even my close friend Hillary Clinton was not in favor of the deal [in 2006], but when I put the whole package together, she also came on board.”
The FBI had previously intercepted communications related to Chatwal and sought to expand their investigation into the Clinton Foundation. Internal documents reveal that field agents were frustrated by the lack of support from FBI headquarters, which ultimately decided not to pursue these leads. “We were trying to explore the Foundation, and we were told ‘NO’ by FBI HQ,” stated an assistant U.S. attorney from the Eastern District of New York in 2019.
In addition to the concerns surrounding Chatwal, investigators wanted to address the foundation’s acceptance of foreign funds while Clinton served as Secretary of State. Clinton had made a commitment to the Obama administration to limit foreign donations during her term. Yet, agents questioned whether the foundation had continued to accept contributions from countries where Clinton was actively involved in diplomatic negotiations.
Unanswered Questions and Ongoing Investigations
The FBI’s inquiries included specific questions about the ongoing financial relationship between the Clinton Foundation and foreign donors. One question sought clarification on whether donations to the foundation had been used for personal purposes or to settle campaign debts. This inquiry was based on information suggesting that Chatwal had helped retire Clinton’s 2008 campaign debt, despite a supposed agreement to disclose all foundation donations.
Despite these significant allegations, when Clinton met with the FBI in July 2016 regarding her use of a private email server in a separate investigation, she was not questioned about potential corruption involving the foundation. The lack of inquiry into these matters has led to ongoing debate over the foundation’s operations and Clinton’s connections to international donors.
As investigations continue, the Clinton Foundation has not publicly commented on the allegations. Chatwal, due to his past legal troubles and ties to the foundation, has also remained unreachable for comment.
The revelations from the FBI’s investigation highlight the complexities surrounding political fundraising and foreign influence in U.S. elections, raising questions about the integrity of the systems in place to regulate such interactions.
