The New York Times reports: The case of Sergei L. Magnitsky, the Russian tax lawyer who was imprisoned in 2008 on false charges and died in jail, began as a tragedy. But now, after years of sanctions, countersanctions, bitter feuds and one noteworthy meeting in Trump Tower, the case seems to be entering the realm of farce.
Mr. Magnitsky, who worked for William F. Browder, a hedge fund manager who was once the largest foreign portfolio investor in Russia, was jailed on tax evasion charges while unraveling a $230 million government tax “refund” that Russian officials had fraudulently granted themselves. He died in prison after being beaten and denied medical care, earning the Kremlin widespread condemnation.
Mr. Browder, who was living in London at the time, began lobbying Western governments to punish those responsible for Mr. Magnitsky’s death, an effort that bore fruit when the United States, Estonia and most recently, Canada, imposed sanctions on Russians involved in Mr. Magnitsky’s death.
That campaign touched off a nasty confrontation with the Kremlin, and the two sides have been trying ever since to undermine the credibility of the other. Recently, however, Russian prosecutors have taken that effort to a remarkable new level, claiming that Mr. Magnitsky was actually murdered by Mr. Browder.
A powerful law enforcement organization, the Investigative Committee of the Prosecutor General’s Office, is investigating Mr. Magnitsky’s death as a murder, presenting as evidence what it says are intercepted communications from Western intelligence agencies.
The theory was first floated in a documentary broadcast on Russian state television last year, but widely brushed off as crude propaganda. It seemed aimed, as with many Russian disinformation campaigns, at muddying the waters around the issue without necessarily claiming to be credible.
It seems the prosecutors have been assembling the case since last year, but their activities came to light just this month when a lawyer representing Mr. Magnitsky’s family gained access to the court docket containing the information presented as evidence by the prosecutors. [Continue reading…]
Author Archives: News Sources
Kurds defeated, displaced and divided after Iraq reclaims oil-rich Kirkuk
Martin Chulov reports: When the guns fell silent on the Kirkuk-Erbil road, just after noon on Friday, a fresh border had been scythed through the oil-rich soil – and a new line of influence carved across northern Iraq.
Their gun barrels still hot, vanquished peshmerga forces began another withdrawal a few miles closer to the seat of government in the now shrunken boundaries of Iraqi Kurdistan. A few miles south, closer to Kirkuk, Iraqi forces were digging in, their conquest of the entire province complete, and their five-day sweep through the rest of the north having seized up to 14,000 sq km from the Kurds, with a minimum of bother.
Baghdad has now reasserted its authority over territory that the Kurds occupied outside their mandated borders, most of which they had claimed during the three-year fight against the Islamic State (Isis) terrorist group.
The extraordinary capitulation – which followed an indepedence referendum that was supposed to strengthen their hand – has not only shattered Kurdish ambitions for at least a generation; it has also laid bare an evolving power struggle in Iraq, and a regional dynamic that is fast taking shape in the wake of the shattered so-called caliphate declared by the Isis leader, Abu Bakr al-Baghdadi, in mid-2014.
Lining up to claim the rout of the Kurds were Iraq’s prime minister, Haider al-Abadi, and Iran’s omnipresent general, Qassem Suleimani, whose influence in the days before last weekend’s attack was key to shaping the aftermath even before a shot had been fired. [Continue reading…]
Scores of bodies are found in Syrian town after ISIS retreats
The New York Times reports: As pro-government troops drove Islamic State fighters from a central Syrian town over the weekend, the retreating militants killed scores of civilians, dumping some bodies into wells and leaving others in the street, local residents and the Syrian state-run news media said on Monday.
The apparent mass killing is the latest example of the brutal reprisals that have taken place when territory changes hands in Syria’s multisided war, with civilians often bearing the brunt of the pain.
The carnage showed how the Islamic State can still spread havoc even as it loses major parts of its territory that once included large areas of Syria and Iraq.
At least 67 bodies had been identified in the town, Qaryatayn, northeast of Damascus, the capital, by Monday afternoon, according to local activists who posted an online list of the victims’ names. [Continue reading…]
Pressure from China on return of fugitive businessman Guo Wengui sparks frantic response from Washington
Chinese fugitive Guo Wengui tweets meetings with Steve Bannon https://t.co/pgKGKk1Zly via @SCMP_News
— Frederik Balfour (@Frederikbalfour) October 12, 2017
Bannon met Wang QiShan who is heavily invested in the US. Guo Wengui says he is the most corrupt official in China https://t.co/23YzFIM9AD
— LarsManwaring (@LManwaring) October 5, 2017
The Wall Street Journal reports: Guo Wengui, a wealthy Chinese businessman, sat in the sun room of his apartment on the 18th-floor of the Sherry-Netherland Hotel on New York’s Fifth Avenue. With him were four officials from China’s Ministry of State Security, whom Mr. Guo had agreed to meet.
For many months, Mr. Guo, from his self-imposed exile, had been using Twitter to make allegations of corruption against senior Chinese officials and tycoons. During the hourslong conversation, the officials urged him to quit his activism and return home, after which the government would release assets it had frozen and leave his relatives in peace.
Liu Yanping, the lead official, said he had come on behalf of Beijing “to find a solution,” according to Mr. Guo and a partial audio recording Mr. Guo said he made of the May encounter and posted online in September.
Mr. Liu’s demeanor made clear this wasn’t a friendly negotiation, and he hinted at the risks for Mr. Guo. “You can’t keep doing this forever,” Mr. Liu can be heard telling Mr. Guo on the audio recording, reviewed by The Wall Street Journal. “I’m worried about you, to tell you the truth.”
The dramatic meeting sparked an unresolved debate within the Trump administration over the Guo case and laid bare broader divisions over how to handle the U.S.’s top economic and military rival, according to people familiar with the matter. U.S.-China relations have been upset by disagreements over trade, cyberespionage and policy toward North Korea, and Mr. Guo’s New York stay is only adding to the tension.
The Chinese officials, who were in the U.S. on visas that didn’t allow them to conduct official business, caught the attention of the Federal Bureau of Investigation, which wanted to move against them, according to people familiar with the matter. The bureau’s effort ran into friction with other U.S. officials, including those at the State Department, who have tended to favor a less-confrontational approach, according to the people.
Some U.S. national security officials view Mr. Guo, who claims to have potentially valuable information on top Chinese officials and business magnates and on North Korea, as a useful bargaining chip to use with Beijing, the people said.
The episode took a twist when President Donald Trump received a letter from the Chinese government, hand-delivered by Steve Wynn, a Las Vegas casino magnate with interests in the Chinese gambling enclave of Macau. Mr. Trump initially expressed interest in helping the Chinese government by deporting Mr. Guo, but other senior officials worked to block any such move, according to people familiar with the matter.
Beijing officials tell their American counterparts they are justified in engaging in such activities because the U.S. carries out similar operations on foreign soil as well, U.S. law-enforcement officials say.
In June, U.S. officials revisited the JFK incident during a policy coordination meeting that grew heated.
Ezra Cohen-Watnick, then senior director for intelligence programs at the National Security Council, confronted Susan Thornton, an East Asia expert who serves as Acting Assistant Secretary of State, charging her agency was improperly hindering law-enforcement efforts to address China’s repeated violations of U.S. sovereignty and law, according to people familiar with the discussion.
State department officials criticized the FBI for not seeking permission from them before initially engaging the Chinese officials, the people said.
State Department official Laura Stone said she was already facing retaliation from Beijing, saying Chinese officials had allegedly confiscated her notebook as she was trying to leave the country, the people said.
The FBI’s assistant director of the counterintelligence division, Bill Priestap, deadpanned in response: “Was it because you had been trying to kidnap and extort someone in China?”
Separately, at a June meeting in the Oval Office, counterintelligence officials briefed President Trump on Beijing’s alleged efforts to steal cutting-edge research from labs and trade secrets from U.S. companies, according to people familiar with the meeting.
The president, surrounded by his top aides, including Vice President Mike Pence, his son-in-law Jared Kushner, his former chief strategist Steve Bannon and other national security and economic advisers, asked to see policy options in 90 days. In the meantime, he said he knew of at least one “Chinese criminal” the U.S. needed to immediately deport, according to the people.
“Where’s the letter that Steve brought?” Mr. Trump called to his secretary. “We need to get this criminal out of the country,” Mr. Trump said, according to the people. Aides assumed the letter, which was brought into the Oval Office, might reference a Chinese national in trouble with U.S. law enforcement, the people said.
The letter, in fact, was from the Chinese government, urging the U.S. to return Mr. Guo to China.
The document had been presented to Mr. Trump at a recent private dinner at the White House, the people said. It was hand-delivered to the president by Mr. Wynn, the Republican National Committee finance chairman, whose Macau casino empire cannot operate without a license from the Chinese territory. [Continue reading…]
In an age in which the line between news and entertainment has never before been so blurred, all I can say about the following analysis from China Uncensored is that it is certainly entertaining — how objective and reliable, I don’t have time to determine:
The Korean missile crisis
Scott D. Sagan writes: It is time for the U.S. government to admit that it has failed to prevent North Korea from acquiring nuclear weapons and intercontinental ballistic missiles that can reach the United States. North Korea no longer poses a nonproliferation problem; it poses a nuclear deterrence problem. The gravest danger now is that North Korea, South Korea, and the United States will stumble into a catastrophic war that none of them wants.
The world has traveled down this perilous path before. In 1950, the Truman administration contemplated a preventive strike to keep the Soviet Union from acquiring nuclear weapons but decided that the resulting conflict would resemble World War II in scope and that containment and deterrence were better options. In the 1960s, the Kennedy administration feared that Chinese leader Mao Zedong was mentally unstable and proposed a joint strike against the nascent Chinese nuclear program to the Soviets. (Moscow rejected the idea.) Ultimately, the United States learned to live with a nuclear Russia and a nuclear China. It can now learn to live with a nuclear North Korea.
Doing so will not be risk free, however. Accidents, misperceptions, and volatile leaders could all too easily cause disaster. The Cold War offers important lessons in how to reduce these risks by practicing containment and deterrence wisely. But officials in the Pentagon and the White House face a new and unprecedented challenge: they must deter North Korean leader Kim Jong Un while also preventing U.S. President Donald Trump from bumbling into war. U.S. military leaders should make plain to their political superiors and the American public that any U.S. first strike on North Korea would result in a devastating loss of American and South Korean lives. And civilian leaders must convince Kim that the United States will not attempt to overthrow his regime unless he begins a war. If the U.S. civilian and military leaderships perform these tasks well, the same approach that prevented nuclear catastrophe during the Cold War can deter Pyongyang until the day that communist North Korea, like the Soviet Union before it, collapses under its own weight.
The international relations scholar Robert Litwak has described the current standoff with North Korea as “the Cuban missile crisis in slow motion,” and several pundits, politicians, and academics have repeated that analogy. But the current Korean missile crisis is even more dangerous than the Cuban one. For one thing, the Cuban missile crisis did not involve a new country becoming a nuclear power. In 1962, the Soviet Union was covertly stationing missiles and nuclear warheads in Cuba when U.S. intelligence discovered the operation. During the resulting crisis, Cuban Prime Minister Fidel Castro feared an imminent U.S. air strike and invasion and wrote to Soviet Premier Nikita Khrushchev advocating a nuclear strike on the United States “to eliminate such danger forever through an act of clear legitimate defense, however harsh and terrible the solution would be.” When Khrushchev received the message, he told a meeting of his senior leadership, “This is insane; Fidel wants to drag us into the grave with him!” Luckily, the Soviet Union maintained control of its nuclear weapons, and Castro did not possess any of his own; his itchy fingers were not on the nuclear trigger.
Kim, in contrast, already presides over an arsenal that U.S. intelligence agencies believe contains as many as 60 nuclear warheads. Some uncertainty still exists about whether North Korea can successfully mount those weapons on a missile capable of hitting the continental United States, but history cautions against wishful thinking. The window of opportunity for a successful U.S. attack to stop the North Korean nuclear program has closed. [Continue reading…]
McCain hits Trump where it hurts, attacking ‘bone spur’ deferments in Vietnam
The Washington Post reports: After a week in which President Trump endured not-so-veiled criticisms from his two predecessors as president and Sen. John McCain (R-Ariz.), McCain delivered another broadside that seems clearly aimed at Trump — in the most personal terms yet.
McCain, whose status as a war hero Trump publicly and controversially doubted as a 2016 presidential candidate, appeared to retaliate in kind against the president in a C-SPAN interview about the Vietnam War airing Sunday night. In the interview, McCain pointed to wealthy Americans who were able to get out of being drafted into service in the conflict in which he spent years as a prisoner of war. And he pointed to a very specific type of deferment which Trump just happened to use.
“One aspect of the conflict, by the way, that I will never ever countenance is that we drafted the lowest-income level of America, and the highest-income level found a doctor that would say that they had a bone spur,” McCain said. “That is wrong. That is wrong. If we are going to ask every American to serve, every American should serve.” [Continue reading…]
U.S. preparing to put nuclear bombers back on 24-hour alert not seen since the Cold War
Defense One reports: The U.S. Air Force is preparing to put nuclear-armed bombers back on 24-hour ready alert, a status not seen since the Cold War ended in 1991.
That means the long-dormant concrete pads at the ends of this base’s 11,000-foot runway — dubbed the “Christmas tree” for their angular markings — could once again find several B-52s parked on them, laden with nuclear weapons and set to take off at a moment’s notice.
“This is yet one more step in ensuring that we’re prepared,” Gen. David Goldfein, Air Force chief of staff, said in an interview during his six-day tour of Barksdale and other U.S. Air Force bases that support the nuclear mission. “I look at it more as not planning for any specific event, but more for the reality of the global situation we find ourselves in and how we ensure we’re prepared going forward.”
Goldfein and other senior defense officials stressed that the alert order had not been given, but that preparations were under way in anticipation that it might come. That decision would be made by Gen. John Hyten, the commander of U.S. Strategic Command, or Gen. Lori Robinson, the head of U.S. Northern Command. STRATCOM is in charge of the military’s nuclear forces and NORTHCOM is in charge of defending North America.
Putting the B-52s back on alert is just one of many decisions facing the Air Force as the U.S. military responds to a changing geopolitical environment that includes North Korea’s rapidly advancing nuclear arsenal, President Trump’s confrontational approach to Pyongyang, and Russia’s increasingly potent and active armed forces. [Continue reading…]
Czech mogul faces tough cabinet talks after election triumph
Bloomberg reports: Czech billionaire Andrej Babis hit his first obstacle to forming a new cabinet after dominating the country’s parliamentary elections, with potential coalition partners declining to join him in government as long as he’s facing criminal fraud charges.
After promising to run the state like a business, fight Muslim immigration and oppose deeper integration with the European Union, Babis’s ANO party won 29.6 percent of ballots on Saturday. The euro-skeptic Civic Democrats were second, followed by two anti-establishment parties, the Pirates and the anti-Muslim SPD. Mainstream and pro-EU political forces suffered heavy losses.
As the second-richest Czech, Babis has drawn comparisons to Donald Trump and Silvio Berlusconi. He took credit for one of the fastest economic expansions in the EU and the bloc’s lowest unemployment, but his opponents have accused him of conflicts of interest tied to his agriculture and media businesses. A month before the vote, he was charged with fraud. He has rejected the allegations, but his current coalition partners, the Social Democrats and the Christian Democrats, said they won’t join him in power as long as the case remains open. [Continue reading…]
The tragic legacy of Raqqa Is Being Slaughtered Silently
David Remnick writes: Nearly two years ago, I met a group of young Syrian journalists at a dive bar around Times Square. We spoke for hours, and their stories of human cruelty were detailed and beyond appalling. These were all refugees from the city of Raqqa and, in concert with other young men and women who were still living in Syria, they formed the core of Raqqa Is Being Slaughtered Silently, a kind of underground reporting squadron, citizen journalists who, at tremendous risk to their lives, used every possible tool to smuggle out to the world words and images describing life under isis rule. Foreign journalists found that their reports were as reliable as they were sickening. On their Web site, the R.B.S.S. journalists posted reports of mass shootings, crucifixions, beheadings, sexual abuse, and other crimes. These brave reporters, who have been honored by the Committee to Protect Journalists and portrayed in Matthew Heineman’s excellent documentary, “City of Ghosts,” worked under constant threat of death; ten of their colleagues, friends and family members, both inside Raqqa and in Turkey, were hunted down by ISIS forces and executed for the crime of committing journalism.
When news came this week that ISIS had been flushed out of Raqqa by coalition air strikes, I called Abdalaziz Alhamza, perhaps the most eloquent of the young men and women I met that night in Times Square. He and I came to know each other at other events, and it was immediately clear to me that he was feeling no sense of relief, gratitude, or liberation.
“How are you?”
“Pretty terrible,” he said. “This is a liberation in the media. Not in Raqqa.” Alhamza felt no immediate sense of relief or happiness. His city was in ruins. He and everyone he knew had lost friends and family. After speaking on the phone, we decided to have a conversation by e-mail and what follows are his responses to my questions, edited for clarity and space, about his life and about Raqqa, its tragedy, and its future. [Continue reading…]
More than 1 billion ‘invisible people’ worldwide have no proof of identity
AFP reports: More than 1.1 billion people worldwide officially don’t exist — going about their daily lives without proof of identity.
The issue leaves a significant fraction of the global population deprived of health and education services.
Among these “invisible people” — many of whom live primarily in Africa and Asia — more than one-third are children susceptible to violence whose births have not been registered, the World Bank’s “Identification for Development” (ID4D) program recently warned.
The problem is particularly acute in geographical areas whose residents face poverty, discrimination, epidemics or armed conflicts.
Vyjayanti Desai, who manages the ID4D program, said the issue arises from a number of factors, but cited the distance between people and government services in developing areas as major.
For populations near the Peruvian Amazon, for example, traveling to an administrative service can take some five days of transit by boat, according to Carolina Trivelli, Peru’s former development minister.
Many families are also simply not informed about the importance of birth registration — and the consequences of non-registration, which can include the denial of basic rights and benefits, or an increased likelihood of marrying or entering into the labor force underage.
And even if parents are aware of the need to declare a birth, costs can be crippling, said Anne-Sophie Lois, representative at the United Nations in Geneva and director of the children’s aid organization Plan International.
As a result, millions of children in Africa and Asia first encounter the administration only once they reach school age.
But “birth certificates are often needed to enroll in school” or take national exams, Lois said. [Continue reading…]
Wild is the wind: The resource that could power the world
Paula Cocozza reports: The wind rips along the Humber estuary in Hull. It’s the kind that presses your coat to your back and pushes you on to your toes. “A bit too windy,” shouts Andy Sykes, before his words are swept away. He is the head of operational excellence at the Siemens Gamesa factory, which supplies blades – the bits that turn – to windfarms in the North Sea. At 75 metres long, they are hard to manoeuvre when it’s gusting.
Inside the vast factory hall, the blades lie in various states of undress. Several hundred layers of fibreglass and balsa wood are being tucked into giant moulds by hand. There are “naked” blades that require paint and whose bodies have the patina of polished tortoiseshell. Look through the hollow blades from the broadest part, and a pale green path, the tinge of fibreglass, snakes down the long tunnel, tapering to a small burst of daylight at its tip.
“Alice in Wonderland,” Sykes says. “That’s how I feel. That’s the emotion coming through. It’s 75 metres long. We know that. But stood here the perspective is just fantastic. It’s my favourite view.” Down this strange green rabbithole is a glimpse of a greener future, the possibility of a world powered by wind.
This is not as fanciful a vision as it once seemed. In the UK, the wind energy industry is celebrating. Last month, the cost of renewable energy dropped dramatically to undercut by almost half the government’s projections for 2025. At £57.50 per megawatt-hour (MWh), it is far cheaper than the state-backed price of £92.50 awarded in 2016 to Hinkley nuclear power station. The speed of wind’s progress is extreme and inarguable.
Emma Pinchbeck, executive director of RenewableUK, and a former climate change activist, can’t keep the happiness from her voice. But she is happy for new reasons. What’s really exciting, she says, is the fact that she “is not having to talk to officials about decarbonisation any more as a starting point. Windfarms are low carbon. But that’s not why we want to build them. We want to build them because they’re bloody cheap!” [Continue reading…]
The world keeps installing renewable energy at record rates
Earther reports: The Trump administration may be doing everything in its power quell the tide of renewable energy, but the world is ready to ride the wave. According to a new report from the International Energy Agency (IEA), a combination of falling prices, rising investments and stronger government support outside the U.S. have sent solar and wind installations skyrocketing.
Last year, the IEA reports that more solar photovoltaic generating capacity was added to the globe’s energy mix than coal, gas or any other energy source. That strong growth helped ensure that renewables accounted for two-thirds of all capacity added to the world’s grid. That’s the equivalent of enough generating capacity to power 31 million American homes.
While fossil fuel plants continue to be added to the grid, they’re lagging behind wind and solar additions. Not only that, older coal and natural gas plants are being shuttered. The net result is that renewables now account for 24% of the world’s electricity generating capacity. [Continue reading…]
John Kelly and the language of the military coup
Masha Gessen writes: Consider this nightmare scenario: a military coup. You don’t have to strain your imagination—all you have to do is watch Thursday’s White House press briefing, in which the chief of staff, John Kelly, defended President Trump’s phone call to a military widow, Myeshia Johnson. The press briefing could serve as a preview of what a military coup in this country would look like, for it was in the logic of such a coup that Kelly advanced his four arguments.
Argument 1. Those who criticize the President don’t know what they’re talking about because they haven’t served in the military. To demonstrate how little lay people know, Kelly provided a long, detailed explanation of what happens when a soldier is killed in battle: the body is wrapped in whatever is handy, flown by helicopter, then packed in ice, then flown again, then repacked, then flown, then embalmed and dressed in uniform with medals, and then flown home. Kelly provided a similar amount of detail about how family members are notified of the death, when, and by whom. He even recommended a film that dramatized the process of transporting the body of a real-life marine, Private First Class Chance Phelps. This was a Trumpian moment, from the phrasing—“a very, very good movie”—to the message. Kelly stressed that Phelps “was killed under my command, right next to me”; in other words, Kelly’s real-life experience was recreated for television, and that, he seemed to think, bolstered his authority.
Fallen soldiers, Kelly said, join “the best one per cent this country produces.” Here, the chief of staff again reminded his audience of its ignorance: “Most of you, as Americans, don’t know them. Many of you don’t know anyone who knows any of them. But they are the very best this country produces.”The one-per-cent figure is puzzling. The number of people currently serving in the military, both on active duty and in the reserves, is not even one per cent of all Americans. The number of veterans in the population is far higher: more than seven per cent. But, later in the speech, when Kelly described his own distress after hearing the criticism of Trump’s phone call, the general said that he had gone to “walk among the finest men and women on this earth. And you can always find them because they’re in Arlington National Cemetery.” So, by “the best” Americans, Kelly had meant dead Americans—specifically, fallen soldiers.
The number of Americans killed in all the wars this nation has ever fought is indeed equal to roughly one per cent of all Americans alive today. This makes for questionable math and disturbing logic. It is in totalitarian societies, which demand complete mobilization, that dying for one’s country becomes the ultimate badge of honor. Growing up in the Soviet Union, I learned the names of ordinary soldiers who threw their bodies onto enemy tanks, becoming literal cannon fodder. All of us children had to aspire to the feat of martyrdom. No Soviet general would have dared utter the kind of statement that’s attributed to General George S. Patton: “The object of war is not to die for your country but to make the other bastard die for his.” [Continue reading…]
Fraud: How every investor lost money on Trump Tower Toronto while Trump made millions
The Toronto Star reports: Let’s say you’re Donald Trump.
It’s 2002 and you’ve agreed to have your name emblazoned across the top of the tallest residential tower in Canada, a $500-million, five-star condo-hotel in downtown Toronto.
Here’s the thing: Only months into the project, your lead developer is publicly exposed in the pages of the Toronto Star as a fugitive fraudster on the run from U.S. justice. Your major institutional partner — the Ritz-Carlton Hotel Company — bails shortly after.
Your remaining partners in the deal — a group of investors assembled by the criminal who was just outed — include a New York camera store owner, a former Chicago nursing-home administrator, two small-time landlords in Britain and a little-known Toronto billionaire who earned a fortune in the former Soviet Union.
The one thing they all have in common — no experience in condo tower development.
Do you pull out? For Trump, the answer was no. The billionaire dug in, repeatedly told the world he was investing his own money in the project — claims that would prove false — and gushed about its spectacular promise, knowing his profits were guaranteed.
“Nothing like this has ever been built in Toronto,” Trump said in 2004 as he relaunched the stalled project. “It is going to be the ultimate destination for business, pleasure and entertainment.”
Fast forward to 2016 and Trump’s Toronto tower is built but bankrupt — a rare failure in Toronto’s booming downtown condo market.
In the last decade, more than 400 condominium towers of 14 storeys or more have been successfully built in Toronto, according to records at City Hall. Among those, the half-dozen industry insiders and analysts interviewed for this story could identify only one that went bankrupt after completion: the Trump International Hotel and Tower Toronto.
An investigation by the Toronto Star and Columbia Journalism Investigations in New York reveals the tower that until recently bore the U.S. president’s name was so hamstrung by inexperienced partners and an unorthodox foreign financing deal that it couldn’t be saved by Trump’s public assurances of excellence.
“It’s pretty hard to make a mess of a real-estate investment (in Toronto),” said Toronto lawyer Marc Senderowitz, who represented four of the project’s minority investors. “In retrospect, I could have taken their money, bought a small commercial building and sat on it for 15 years … Things just went off the rails.”
A review of bankruptcy documents and public records in three countries, as well as interviews with the rotating cast of players involved in the deal over more than a decade provides new insights about Trump’s business approach, the unconventional partners he works with and the risks for those who bet on the Trump brand.
In the end, every investor lost money on Toronto’s Trump Tower. Everyone except Trump, who walked away with millions.
“Trump never put money in; he just took money out,” said John Latimer, a former Toronto developer who worked briefly for the project.
Now that Trump is U.S. president, his conduct during the Toronto project gives an indication of how he might manage challenges with far higher stakes than a mere real estate deal.
“As I understand it, in Toronto, Trump made inaccurate statements” that may have influenced people who invested in the project, said Kathleen Clark, a law professor at Washington University in St. Louis who specializes in legal and government ethics. “He has shown a willingness to speak inaccurately and encourages people to rely on his inaccuracies, even when that ends up causing harm to them.”
“In the case of the Toronto deal, the harm was financial. In the case of the presidency,” she said, it could be “apocalyptic.” [Continue reading…]
Trump pledges at least $430,000 of his own money to help cover aides’ legal costs related to Russia probes
The Washington Post reports: President Trump plans to spend at least $430,000 of his personal funds to help cover the mounting legal costs incurred by White House staff and campaign aides related to the ongoing investigations of Russian meddling in last year’s election, a White House official said.
The Washington Post reported last month that the Republican National Committee had spent roughly that amount to pay lawyers representing Trump and his eldest son, Donald Trump Jr., in the multiple investigations.
The White House official said Trump’s pledge is not meant as a reimbursement to the RNC, but that it does not preclude Trump from doing that at a later time or for increasing the amount available for his aides.[Continue reading…]
John Kelly and the dangerous moral calculus of working for Donald Trump
Ryan Lizza writes: Anyone in politics or government who works for Donald Trump, whether on the payroll or in some other supporting role, is forced to make a sacrifice. Working for Trump means that one’s credibility is likely to be damaged, so there is a kind of moral calculation that any Trump supporter must make: Does working for him serve some higher purpose that outweighs the price of reputational loss?
There is a hierarchy of justifications for backing Trump. At the bottom are the spokespeople and purely political officials who are almost instantly discredited, because they are forced to defend the statements of a President who routinely lies and manufactures nonsensical versions of events. Sean Spicer learned this on his first day on the job, when Trump sent him into the White House briefing room to tell the press lies about Inauguration-crowd sizes. He never recovered. But there was also no higher purpose for which Spicer could claim he was serving Trump, except that he was a political-communications official, and being the White House spokesman is the top prize in that profession.
Republicans in Congress are a little farther up the pyramid. Many privately say that they believe Trump is a disaster of a President, an embarrassment to the G.O.P., and, as Bob Corker recently said publicly, echoing what he claimed were the views of most Republican senators, setting America “on the path to World War III.” They justify their support by noting that Trump will implement the core Republican agenda, and that alone is worth the price of a person at least some of them believe is unfit to be President. They may be privately embarrassed by Trump, the agreement goes, but at least he has appointed a reliable conservative to the Supreme Court, almost repealed Obamacare (and still might), and has a decent chance at signing a big tax cut into law. How morally justifiable one believes this argument is depends a lot on how bad one believes Trump is for the country and the world, though a Third World War seems like it would be a steep price to pay for Neil Gorsuch. [Continue reading…]
There’s a dangerous bubble in the fossil-fuel economy, and the Trump administration is making it worse
Carolyn Kormann writes: Last year, shortly after the election, the coal baron Robert Murray received a phone call from President-elect Donald Trump. “He said, ‘Tell your coal miners I got their backs,’ ” Murray later reported to Fox News. “Then he said, ‘I love you, man.’ ” Murray, who is the chairman and C.E.O. of Murray Energy, the largest private coal company in the country, was one of the first fossil-fuel executives to support Trump’s candidacy. Prior to the Republican National Convention, he hosted a fund-raiser for Trump in Charleston, West Virginia, attracting nearly five hundred thousand dollars in donations and contributing hundreds of thousands more from his own pocket. “It was eight years of pure hell under the Democrat Party and Obama,” Murray recently told “Frontline.” He added, laughing into the camera, “But we won! It’s a wonderful victory!”
Now Murray and his ilk have scored another victory. Last Tuesday, Scott Pruitt, the head of the Environmental Protection Agency, filed a proposal with the Federal Register to formally repeal the Obama Administration’s Clean Power Plan. Finalized in 2015, the C.P.P. was designed to hasten state utilities’ adoption of renewable energy, improve air quality and public health across the nation, and, most notable, insure that the United States met its commitments under the Paris climate accord—a minimum twenty-six-per-cent reduction in greenhouse-gas emissions by 2025, based on 2005 levels. In a statement on the proposed repeal, Pruitt criticized the plan’s “devastating effects” on the American people. “The CPP ignored states’ concerns and eroded longstanding and important partnerships,” he said. The day before, in a speech to a group of miners in Hazard, Kentucky, Pruitt had echoed Murray’s triumphalist tone, declaring, “The war on coal is over.”
There is little doubt that one of the “important partnerships” Pruitt had in mind was with Murray Energy. His current second-in-command at the E.P.A., Andrew Wheeler, was a lobbyist for the company until mid-August, and when Pruitt was attorney general of Oklahoma, Murray was a top donor to his super pac. The C.E.O. was also a co-plaintiff in eight of the fourteen lawsuits that Pruitt brought against the E.P.A. before Trump put him in charge of the agency. One involved the C.P.P. According to Murray and Pruitt’s interpretation, the plan was a classic case of governmental overreach; the E.P.A., they claimed, did not have the regulatory authority to impose emissions targets on individual states. Thanks largely to their efforts, the C.P.P. never actually went into effect. It remains tied up in federal court. [Continue reading…]
Trump plans to release JFK assassination documents despite concerns from federal agencies
The Washington Post reports: President Trump announced Saturday morning that he planned to release the tens of thousands of never-before-seen documents left in the files related to President John F. Kennedy’s assassination held by the National Archives and Records Administration.
“Subject to the receipt of further information, I will be allowing, as President, the long blocked and classified JFK FILES to be opened,” Trump tweeted early Saturday.
Experts have been speculating for weeks about whether Trump would disclose the documents. The 1992 Kennedy Assassination Records Collection Act required that the millions of pages, many of them contained in CIA and FBI documents, be published in 25 years — by Thursday. Over the years, the National Archives has released most of the documents, either in full or partially redacted.
But one final batch remains, and only the president has the authority to extend the papers’ secrecy past the deadline. [Continue reading...]