Monthly Archives: October 2017

How a master grifter taught the FBI to crack open the art of the deal

Christopher Dickey writes: David Howard’s Chasing Phil tells the story of two young FBI agents who go undercover in the 1970s to expose a relatively minor con and get taken in, in every sense, by one of the great grifters of the last century, a master of multi-million-dollar scams involving multiple offshore banks—some of them legit, some of them shells—and a collection of accomplices around the world.

Back then, the bureaucrats at tbe Federal Bureau of Investigation headquarters in D.C., just recently free of J. Edgar Hoover, but still in his mold, really didn’t like this kind of undercover operation. They wanted to nail commies and Dillingers, not guys in suits with global connections in high finance. But the young agents, who to their amazement were accepted as apprentice con-men, kept jumping on planes to Hawaii and Geneva, Hong Kong, the Bahamas and Frankfurt with their new buddy Phil Kitzer. Eventually, they were having a ball, and they might well have wondered where their loyalties lay (althought they insisted they always knew).

As Chasing Phil sketches the multiple layers of fraud in multi-million-dollar cons and describes the personality of Phil Kitzer, the central scam artist, one can’t help but think of another man who still likes to brag about “the art of the deal”:
“Phil was hard to read, partly because he was a skilled, habitual liar. He lied to con his marks, of course, but in the past seven weeks they’d watched him fib to just about everyone else—including them. … If he didn’t want to go outside, he would say that it was raining [even if it wasn’t]. He routinely offered letters of credit for 10 percent of face value, and after a client agreed, he would say he’d calculated wrong and jack the price up another few thousand dollars. One of his mottos was, Don’t tell the truth if you can avoid it.”

But Kitzer had a lot more class and a lot more charm than Donald Trump, and to the extent there is a link between the two, it is the fact that without Kitzer and the agents pursuing him, the FBI would have taken a lot longer to develop the expertise in fraud and finance that now is central to the Trump investigations headed by Robert Mueller, a former FBI director. [Continue reading…]

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Trump team drawing up fresh plans to bolster U.S. nuclear arsenal and widen opportunities for its use

The Guardian reports: The Trump administration is working on a nuclear weapons policy that is intended to mark a decisive end to the era of post-cold war disarmament, by bolstering the US arsenal and loosening the conditions under which it would be used.

A draft of the new Nuclear Posture Review (NPR) was presented in September at a White House meeting between Donald Trump and his top national security advisers. Congress and US allies have been briefed on the progress of the new draft.

The document is still being debated with a target for completion by the end of this year or the beginning of next. Among the new elements under consideration are a low yield ballistic missile intended primarily to deter Russia’s use of a small nuclear weapon in a war over the Baltic states; a sea-launched cruise missile; a change in language governing conditions in which the US would use nuclear weapons; and investments aimed at reducing the time it would take the US to prepare a nuclear test.

Trump has frequently voiced his intention to build up the US arsenal. According to one report, he was outraged at a meeting with military leaders in July when he was shown a downward sloping graph of the US weapons stockpile since the cold war, and had to be talked out of ordering a tenfold increase.

The White House denied the report but it has repeatedly made clear it aims to adopt a more aggressive nuclear stance.

“You can … be assured that our administration is committed to strengthen and modernise America’s nuclear deterrent,” Mike Pence, the vice-president, said on Friday on a morale-boosting visit to Minot air force base in North Dakota, home to Minuteman III intercontinental ballistic missiles and B-52 strategic bombers.

“History attests the surest path to peace is through American strength. There’s no greater element of American strength, there’s no greater force for peace in the world than the United States nuclear arsenal.”

Like much else about Trump’s presidency, the new policy is aimed at erasing the legacy of his predecessor. Barack Obama began his administration with a major speech in Prague in April 2009, committing the US to disarmament and the eventual elimination of nuclear weapons globally.

A year after the speech, the US and Russia signed the New Start agreement, restricting both sides to 1,550 deployed strategic warheads and bombs, down by about 30% from previously agreed limits.

However, the “Prague agenda” petered out. Aspirations to cut the strategic stockpile by another third, unilaterally if necessary, were abandoned in the face of congressional resistance, North Korea’s growing nuclear weapons programme and worsening relations with Russia. [Continue reading…]

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Trump team’s response to Russia news: Focus on Clinton, leaks or anything else

Politico reports: The White House has been anticipating for months that special counsel Robert Mueller would eventually file criminal charges in his Russia investigation. But President Donald Trump, his lawyers and senior administration officials were all caught off guard by the news.

Two of Trump’s top lawyers were traveling out of town when the first report broke Friday night that a federal grand jury had approved the first indictment in the probe into Russian interference in the 2016 election. One of Trump’s personal attorneys, Ty Cobb, was relaxing on his deck in South Carolina, while the entire team was still working to confirm the veracity of the CNN report over the weekend.

The lack of information, on a case that could have major ramifications for the president, left many current and former Trump advisers livid, focusing their rage on how the information leaked and on a forever target: Hillary Clinton.

“It is unusual for prosecutors to file indictments under seal and then have it leak out,” said Mark Corallo, a former spokesman for Trump’s legal team, noting that the only people in the loop would be the prosecutors and agents on Mueller’s team, the grand jurors and the judge. “This was an ill-advised leak of information,” Corallo added. “I’m disgusted by the tactics of the prosecutors to leak the information.”

That leak, he said, left the White House in an uncomfortable position. “All you can do is wait and see,” he said.

The latest news came at a point of low morale in the West Wing, where many officials see the one-year mark of the administration approaching and are starting to consider their graceful departures. [Continue reading…]

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Trump can play golf but he can’t hide

The Hill reports: President Trump traveled to his Virginia golf club on Saturday for the fourth consecutive weekend.

Trump left the White House shortly after 10 a.m. Saturday wearing a white hat, a dark jacket, a white shirt and golf shoes, according to pool reports.

Trump’s motorcade arrived at Trump National Golf Club in Virginia shortly after 10:50 a.m.

One protestor greeted Trump’s motorcade at the entrance to his golf club holding a sign that read “Impeach,” according to pool reports.

Trump has no public events scheduled for this weekend. His staff says he regularly takes meetings or does work while at his golf clubs.

Last weekend, Trump traveled to his Virginia golf club on both Saturday and Sunday. [Continue reading…]

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EU nationals in UK face threats from government

The Obsever reports: The Home Office is warning EU nationals held in detention centres that they should leave the UK to “avoid becoming destitute”, in the latest instance of a hardened tone towards citizens from European countries.

A government letter, written on behalf of home secretary Amber Rudd and seen by the Observer, also advises EU nationals that they should consider leaving because they have the “right to travel freely across the EU and can visit, live, study and in most cases work in any other EU member state” – an observation that appears to preempt the UK’s departure from the union.

The letter, dated 18 October and written by officials from the Home Office’s immigration section, tells a Romanian national in an immigration detention centre that his request for emergency accommodation has been rejected and he should consider another country. It states: “You could avoid becoming destitute by returning to Romania or another EU member state where you could enjoy access to all your ECHR [European Convention on Human Rights] without interference.”

The ECHR protects the human rights and freedoms of individuals in 47 countries belonging to the Council of Europe and prohibits a range of unfair and harmful practices.

Detentions and enforced removals of EU citizens from the UK have risen sharply since the Brexit vote, prompting critics to claim that the Home Office is deliberately targeting EU nationals as part of the “hostile environment” Theresa May pledged for those she believes should not be in the country. [Continue reading…]

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Refusing Weinstein’s hush money, Rose McGowan calls out Hollywood

The New York Times reports: In late September, just as multiple women were days away from going on the record with reports of Harvey Weinstein’s sexual misconduct, one of his alleged assault victims, Rose McGowan, considered an offer that suggested just how desperate the Hollywood producer had become.

Ms. McGowan, who was working on a memoir called “Brave,” had spoken privately over the years about a 1997 hotel room encounter with Mr. Weinstein and hinted at it publicly. Through her lawyer, she said, someone close to Mr. Weinstein offered her hush money: $1 million, in exchange for signing a nondisclosure agreement.

In 1997, Ms. McGowan had reached a $100,000 settlement with Mr. Weinstein, but that agreement, she learned this summer, had never included a confidentiality clause. Ms. McGowan, who was most widely known for her role as a witch on the WB show “Charmed,” had recently developed a massive following as a fiery feminist on Twitter, but she was now, at 44, a multimedia artist, no longer acting, her funds depleted by health care costs for her father, who died eight years ago.

“I had all these people I’m paying telling me to take it so that I could fund my art,” Ms. McGowan said in an interview. She responded by asking for $6 million, part counteroffer, part slow torture of her former tormentor, she said. “I figured I could probably have gotten him up to three,” she said. “But I was like — ew, gross, you’re disgusting, I don’t want your money, that would make me feel disgusting.” [Continue reading…]

Ronan Farrow reports: In March, Annabella Sciorra, who received an Emmy nomination for her role in “The Sopranos,” agreed to talk with me for a story I was reporting about Harvey Weinstein. Speaking by phone, I explained that two sources had told me that she had a serious allegation regarding the producer. Sciorra, however, told me that Weinstein had never done anything inappropriate. Perhaps she just wasn’t his type, she said, with an air of what seemed to be studied nonchalance. But, two weeks ago, after The New Yorker published the story, in which thirteen women accused Weinstein of sexual assault and harassment, Sciorra called me. The truth, she said, was that she had been struggling to speak about Weinstein for more than twenty years. She was still living in fear of him, and slept with a baseball bat by her bed. Weinstein, she told me, had violently raped her in the early nineteen-nineties, and, over the next several years, sexually harassed her repeatedly.

“I was so scared. I was looking out the window of my living room, and I faced the water of the East River,” she said, recalling our initial conversation. “I really wanted to tell you. I was like, ‘This is the moment you’ve been waiting for your whole life. . . .’ ” she said. “I really, really panicked,” she added. “I was shaking. And I just wanted to get off the phone.”

All told, more than fifty women have now levelled accusations against Weinstein, in accounts published by the New York Times, The New Yorker, and other outlets. But many other victims have continued to be reluctant to talk to me about their experiences, declining interview requests or initially agreeing to talk and then wavering. As more women have come forward, the costs of doing so have certainly shifted. But many still say that they face overwhelming pressures to stay silent, ranging from the spectre of career damage to fears about the life-altering consequences of being marked as sexual-assault victims. “Now when I go to a restaurant or to an event, people are going to know that this happened to me,” Sciorra said. “They’re gonna look at me and they’re gonna know. I’m an intensely private person, and this is the most unprivate thing you can do.” [Continue reading…]

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Trump lawyers scramble to prepare for new stage of Russia probe

Politico reports: President Donald Trump’s White House and personal lawyers scrambled Saturday to learn where the knife might fall in the investigation by special counsel Robert Mueller, triggering a guessing game among aides after days of trying to turn attention away from allegations of collusion with Russia during the election.

Attorneys involved in the case said their cellphones have been ringing nonstop as they connected with each other, and with reporters, trying to gather more concrete details after a CNN report Friday night that a federal grand jury had approved the first charges in the Russia investigation.

While the report did not cite names, attorneys close to the case said they were discussing whether the indictment was for two known Mueller targets: former campaign chairman Paul Manafort or former White House national security adviser Michael Flynn.

Several attorneys who said they were in touch with the Manafort and Flynn lawyers said they had not been notified of any matter related to an indictment — which is customary in a white-collar criminal investigation — leading them to believe it wasn’t either of those two former high-ranking Trump aides. An attorney for Manafort did not respond to a request for comment. Michael Flynn’s attorney, Robert Kelner, declined to comment. [Continue reading…]

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Will Congress ever limit the forever-expanding 9/11 war?

The New York Times reports: A Navy SEAL, killed alongside civilians in a January raid on a village in Yemen. Another SEAL, killed while accompanying Somali forces on a May raid. And now four Army soldiers, dead in an ambush this month in Niger.

These American combat deaths — along with those of about 10 service members killed this year in Afghanistan and Iraq — underscore how a law passed shortly after the Sept. 11, 2001, terrorist attacks has been stretched to permit open-ended warfare against Islamist militant groups scattered across the Muslim world.

The law, commonly called the A.U.M.F., on its face provided congressional authorization to use military force only against nations, groups or individuals responsible for the attacks. But while the specific enemy lawmakers were thinking about in September 2001 was the original Al Qaeda and its Taliban host in Afghanistan, three presidents of both parties have since invoked the 9/11 war authority to justify battle against Islamist militants in many other places.

On Monday, Defense Secretary Jim Mattis and Secretary of State Rex W. Tillerson will testify before the Senate Foreign Relations Committee as lawmakers renew a debate over whether they should update and replace that law, revitalizing Congress’s constitutionally assigned role of making fundamental decisions about going to war.

But even as the Trump administration moves to ease some Obama-era constraints on counterterrorism operations, political obstacles to reaching a consensus on new parameters for a war authorization law look more daunting than ever. [Continue reading…]

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Canning O’Reilly and other media men won’t change a thing. Here’s what would

Margaret Sullivan writes: So, now that the dam has burst on sexual misconduct at media companies, we’re good, right?

Don’t believe that for a moment.

The appalling behavior that’s been in the headlines for weeks isn’t going to stop just because some high-profile men have fallen from grace.

Yes, maybe, after this month of eye-popping revelations about influential media figures such as Bill O’Reilly, Mark Halperin and Leon Wieseltier, news organizations will do a better job of taking internal complaints seriously. For a while.

And maybe high-powered men will keep their pants zipped and their hands to themselves so that they won’t lose their positions atop the totem pole. For a time.

The revelations do matter. But something deeper — more difficult — has to happen, too.

Media companies have to address the deep-seated gender inequality that’s at the root of this mess.

“It shouldn’t be forgotten that sexual harassment is often more about abuse of power than sex,” wrote former New York Times executive editor Jill Abramson, who with journalist Jane Mayer chronicled Anita Hill’s sexual harassment claims against Clarence Thomas during his 1991 Supreme Court confirmation hearings in their book, “Strange Justice.”

When Abramson was top Times editor — the first woman to hold that coveted post — she promoted talented, qualified women so that half of her “masthead” was female. Good thing she moved fast; Abramson was fired after less than three years.

That kind of equity makes a difference. Having a critical mass of women decision-makers, rather than a token presence, allows ideas to bubble up and voices to be heard in new ways. This is, of course, true for racial diversity, too.

It’s rare, though — and not just in media-management ranks. [Continue reading…]

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Russia is furious. That means the sanctions are working

Anne Applebaum writes: In yet another display of spitting fury, the Russian state this week put Bill Browder on the Interpol list, an international register of “most wanted” criminals. This was the fifth time Russia had issued an international arrest warrant for Browder, a businessman who once worked in the country. Wearily, Interpol lifted the warrant on Thursday. But the gesture once again confirmed something few have yet acknowledged: The sanctions on Russia are working.

Browder’s real “crime”? He persuaded another government, this time the Canadians, to pass a “Magnitsky Act,” a bill applying sanctions on Russian tax officials and police involved in a vast scam, one that involved changing the names of companies, hijacking their bank accounts and using them to steal money from the Russian state. Browder’s lawyer, Sergei Magnitsky, discovered the scam. He was investigated and imprisoned, beaten and deprived of medical care until he died. Ever since, Browder has crusaded to punish those responsible by depriving them of access to Western banks, Western vacation homes and Western educations for their children.

As I’ve argued before, the Russian government really, really hates the Magnitsky sanctions, and it hates them with disproportionate fury. Recently, the Russian president, Vladimir Putin, jeered at Browder during a news conference. The Russian lawyer who met with Jared Kushner, Paul Manafort and Donald Trump Jr. in June 2016 — the one whose fixer dangled the tantalizing offer of “official documents and information that would incriminate” Hillary Clinton — was seeking to have the Magnitsky sanctions lifted, too. [Continue reading…]

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Trump donor asked Cambridge Analytica if it could better organize hacked emails

The Wall Street Journal reports: Trump donor Rebekah Mercer in August 2016 asked the chief executive of a data-analytics firm working for Donald Trump’s presidential campaign whether the company could better organize the Hillary Clinton -related emails being released by WikiLeaks, according to a person familiar with their email exchange.

The previously undisclosed details from the exchange between Ms. Mercer and Cambridge Analytica CEO Alexander Nix show how an influential Trump supporter was looking to leverage the hacked Clinton-related messages to boost Mr. Trump’s campaign.

Earlier this week, The Wall Street Journal reported that Mr. Nix emailed Ms. Mercer and some company employees that he had reached out to WikiLeaks founder Julian Assange to offer help organizing the Clinton-related emails the website was releasing. The new details shed light on the timing of Mr. Nix’s outreach to Mr. Assange, which came before his company began working for the Trump campaign.

On Aug. 26, 2016, roughly a month after Mr. Trump formally became the Republican nominee, Ms. Mercer passed along to Mr. Nix an email she had received from a person she met at an event supporting Sen. Ted Cruz (R., Texas), whose presidential campaign she had initially supported during the GOP primaries, the person familiar with the exchange said. The email’s author suggested to Ms. Mercer that the Trump campaign or an allied super PAC ought to better index the WikiLeaks emails to make them more searchable, the person said. [Continue reading…]

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Catalan leader vows ‘peaceful resistance’ as Madrid takes control of region

The Guardian reports: The Catalan leader has issued a defiant response to Madrid’s decision to take direct control of Catalonia, calling for “democratic opposition” to the takeover.

In a brief video message issued on Saturday afternoon, Carles Puigdemont vowed to continue working to build “a free country”.

“We must do so resisting repression and threats, without ever abandoning, at any time, civic and peaceful conduct,” he said, adding that his government did not have or want “the argument of force”.

Madrid reacted to the Catalan parliament’s unilateral declaration of independence on Friday by firing the regional government and dismissing the head of the local police force.

Puigdemont and his cabinet were formally removed from their posts, and their powers and responsibilities taken over by central government in notices posted to the official state bulletin on Saturday morning. [Continue reading…]

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National Weather Service ‘on the brink of failure’ due to job vacancies, says union

The Hill reports: The National Weather Service (NWS) is dealing with hundreds of vacant positions in the wake of a series of extreme weather events that have plagued the U.S.

“The National Weather Service … for the first time in its history is close to teetering on the brink of failure,” the NWS’s labor union, the NWS Employees Organization, said in a statement earlier this week.

The union went on to slam NWS leadership, saying it “has been incapable of placing their budget priorities correctly, spending money on Management conferences and blended models rather than on filling the nearly 700 vacant forecast positions.” [Continue reading…]

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Mattis says threat of nuclear attack by North Korea accelerating

The Washington Post reports: U.S. Defense Secretary Jim Mattis said Saturday the threat of nuclear missile attack by North Korea is accelerating.

In remarks in Seoul with South Korean Defense Minister Song Young-moo at his side, Mattis accused the North of illegal and unnecessary missile and nuclear programs — and vowed to defeat any attack.

Mattis said North Korea engages in “outlaw” behavior and that the U.S. will never accept a nuclear North.

He added that regardless of what the North might try, it is overmatched by the firepower and cohesiveness of the decades-old U.S.-South Korean alliance.

“North Korea has accelerated the threat that it poses to its neighbors and the world through its illegal and unnecessary missile and nuclear weapons programs,” he said, adding that U.S.-South Korean military and diplomatic collaboration thus has taken on “a new urgency.”

“I cannot imagine a condition under which the United States would accept North Korea as a nuclear power,” he said. [Continue reading…]

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Manafort realtor testified before grand jury in Russia probe

Politico reports: The Realtor who helped former Trump campaign chairman Paul Manafort buy the Virginia condo that was recently raided by the FBI testified last week before the federal grand jury hearing testimony in Robert Mueller’s Russia probe, POLITICO has learned.

The real estate agent, Wayne Holland of Alexandria, Virginia-based McEnearney Associates, appeared before the Washington-based grand jury after a federal judge rejected the firm’s lawyer’s bid to quash subpoenas for testimony and records about various real estate transactions.

The broker’s appearance before the grand jury is one of few concrete indications of the leads Mueller’s prosecutors are pursuing as they investigate Russian meddling in last year’s presidential election. The investigation encompasses lobbying work done by Manafort as well as possible collusion between the Trump campaign and Russian officials.

Manafort spokesman Jason Maloni was called before the grand jury on Sept. 15, but few other witnesses have been publicly identified. [Continue reading…]

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