Category Archives: corruption

Mueller expands probe to Trump business transactions

Bloomberg reports: The U.S. special counsel investigating possible ties between the Donald Trump campaign and Russia in last year’s election is examining a broad range of transactions involving Trump’s businesses as well as those of his associates, according to a person familiar with the probe.

FBI investigators and others are looking at Russian purchases of apartments in Trump buildings, Trump’s involvement in a controversial SoHo development in New York with Russian associates, the 2013 Miss Universe pageant in Moscow and Trump’s sale of a Florida mansion to a Russian oligarch in 2008, the person said.

The investigation also has absorbed a money-laundering probe begun by federal prosecutors in New York into Trump’s former campaign chairman Paul Manafort.

John Dowd, one of Trump’s lawyers, said on Thursday that he was unaware of the inquiry into Trump’s businesses by the two-months-old investigation and considered it beyond the scope of what Special Counsel Robert Mueller should be examining.

“Those transactions are in my view well beyond the mandate of the Special counsel; are unrelated to the election of 2016 or any alleged collusion between the Trump campaign and Russia and most importantly, are well beyond any Statute of Limitation imposed by the United States Code,” he wrote in an email. [Continue reading…]

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Exxon sues U.S. over fine levied for Russia deal under Tillerson

Reuters reports: Exxon Mobil Corp sued the U.S. government on Thursday, blasting as “unlawful” and “capricious” a $2 million fine levied against it for a three-year-old oil joint venture with Russia’s Rosneft.

The U.S. Treasury Department on Thursday morning slapped the world’s largest publicly traded oil producer with the fine for “reckless disregard” of U.S. sanctions in dealings with Russia in 2014 when Secretary of State Rex Tillerson was Exxon’s chief executive.

The lawsuit and the Treasury’s unusually detailed statement on Exxon’s conduct represented an extraordinary confrontation between a major American company and the U.S. government, made all the more striking because Exxon’s former CEO is now in President Donald Trump’s Cabinet.

Exxon took the government to court despite the fact that the fine, the maximum allowed, would have a minor impact on the company, which made $7.84 billion in profit last year.

The fine came after a U.S. review of deals Exxon signed with Rosneft, Russia’s largest oil producer, weeks after Washington imposed sanctions on Moscow for annexing Ukraine’s Crimea region. [Continue reading…]

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Manafort was in debt to pro-Russia interests, Cyprus records show

The New York Times reports: Financial records filed last year in the secretive tax haven of Cyprus, where Paul J. Manafort kept bank accounts during his years working in Ukraine and investing with a Russian oligarch, indicate that he had been in debt to pro-Russia interests by as much as $17 million before he joined Donald J. Trump’s presidential campaign in March 2016.

The money appears to have been owed by shell companies connected to Mr. Manafort’s business activities in Ukraine when he worked as a consultant to the pro-Russia Party of Regions. The Cyprus documents obtained by The New York Times include audited financial statements for the companies, which were part of a complex web of more than a dozen entities that transferred millions of dollars among them in the form of loans, payments and fees.

The records, which include details for numerous loans, were certified as accurate by an accounting firm as of December 2015, several months before Mr. Manafort joined the Trump campaign, and were filed with Cyprus government authorities in 2016. The notion of indebtedness on the part of Mr. Manafort also aligns with assertions made in a court complaint filed in Virginia in 2015 by the Russian oligarch, Oleg V. Deripaska, who claimed Mr. Manafort and his partners owed him $19 million related to a failed investment in a Ukrainian cable television business.

After The Times shared some of the documents with representatives of Mr. Manafort, a spokesman, Jason Maloni, did not address whether the debts might have existed at one time. But he maintained that the Cyprus records were “stale and do not purport to reflect any current financial arrangements.”

“Manafort is not indebted to Mr. Deripaska or the Party of Regions, nor was he at the time he began working for the Trump campaign,” Mr. Maloni said. “The broader point, which Mr. Manafort has maintained from the beginning, is that he did not collude with the Russian government to influence the 2016 election.” (Mr. Manafort resigned as campaign manager last August amid questions about his past work in Ukraine.)

Still, the Cyprus documents offer the most detailed view yet into the murky financial world inhabited by Mr. Manafort in the years before he joined the Trump campaign. [Continue reading…]

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Deutsche Bank, key to Trump’s finances, faces new scrutiny

The New York Times reports: During the presidential campaign, Donald J. Trump pointed to his relationship with Deutsche Bank to counter reports that big banks were skeptical of doing business with him.

After a string of bankruptcies in his casino and hotel businesses in the 1990s, Mr. Trump became somewhat of an outsider on Wall Street, leaving the giant German bank among the few major financial institutions willing to lend him money.

Now that two-decades-long relationship is coming under scrutiny.

Banking regulators are reviewing hundreds of millions of dollars in loans made to Mr. Trump’s businesses through Deutsche Bank’s private wealth management unit, which caters to an ultrarich clientele, according to three people briefed on the review who were not authorized to speak publicly. The regulators want to know if the loans might expose the bank to heightened risks.

Separately, Deutsche Bank has been in contact with federal investigators about the Trump accounts, according to two people briefed on the matter. And the bank is expecting to eventually have to provide information to Robert S. Mueller III, the special counsel overseeing the federal investigation into the Trump campaign’s ties to Russia.

It was not clear what information the bank might ultimately provide. Generally, the bank is seen as central to understanding Mr. Trump’s finances since it is the only major financial institution that continues to conduct sizable business with him. Deutsche Bank has also lent money to Jared Kushner, the president’s son-in-law and senior adviser, and to his family real estate business.

Although Deutsche Bank recently landed in legal trouble for laundering money for Russian entities — paying more than $600 million in penalties to New York and British regulators — there is no indication of a Russian connection to Mr. Trump’s loans or accounts at Deutsche Bank, people briefed on the matter said. The bank, which declined to comment, scrutinizes its accounts for problematic ties as part of so-called “know your customer” banking rules and other requirements.

And with one of its most famous clients headed to the White House, the bank designed a plan for overseeing the accounts of Mr. Trump and Mr. Kushner and presented it to regulators at the New York State Department of Financial Services early this year. The plan essentially called for monitoring the accounts for red flags such as exceptionally favorable loan terms or unusual partners. [Continue reading…]

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Trump Tower rental space leased to White House military office for $2.39 million, far above market value

The Wall Street Journal reports: The U.S. government is paying more than $130,000 a month to lease space in Trump Tower for the military office that supports the White House, even though Donald Trump hasn’t spent a night at the New York skyscraper since becoming president.

The government signed a $2.39 million lease to rent a 3,475 sq. ft. space in the building for the military from Apr. 11, 2017 to Sept. 30, 2018, nearly 18 months in total, according to lease documents that The Wall Street Journal obtained through a freedom of information request.

The government agreed to pay $180,000 for the last 20 days of April 2017 and $130,000 a month thereafter, according to the contract released by the General Services Administration, the agency that negotiates office space agreements for the government.

The GSA redacted large portions of the lease, including the name of the person who owns the Trump Tower space the government is renting. A Pentagon official wrote in a letter seen by the Journal that the space is owned privately by someone unaffiliated with the Trump Organization and that the department sees no way in which Mr. Trump can benefit from the rent money.

The military’s lease in Trump Tower puts the space far above market rate for similarly sized apartments in the luxury high rise market and makes it one of the most expensive residential rentals in Manhattan. [Continue reading…]

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Outgoing ethics chief: U.S. is ‘close to a laughingstock’

The New York Times reports: Actions by President Trump and his administration have created a historic ethics crisis, the departing head of the Office of Government Ethics said. He called for major changes in federal law to expand the power and reach of the oversight office and combat the threat.

Walter M. Shaub Jr., who is resigning as the federal government’s top ethics watchdog on Tuesday, said the Trump administration had flouted or directly challenged long-accepted norms in a way that threatened to undermine the United States’ ethical standards, which have been admired around the world.

“It’s hard for the United States to pursue international anticorruption and ethics initiatives when we’re not even keeping our own side of the street clean. It affects our credibility,” Mr. Shaub said in a two-hour interview this past weekend — a weekend Mr. Trump let the world know he was spending at a family-owned golf club that was being paid to host the U.S. Women’s Open tournament. “I think we are pretty close to a laughingstock at this point.” [Continue reading…]

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Huge Manafort payment reflects murky Ukraine politics

The New York Times reports: Paul J. Manafort, President Trump’s former campaign chairman, recently filed financial reports with the Justice Department showing that he earned nearly $17 million for two years of work for a Ukrainian political party with links to the Kremlin.

Curiously, that was more than the party itself reported spending in the same period for its entire operation — the national political organization’s expenses, salaries, printing outlays and other incidentals.

The discrepancies show a lot about how Mr. Manafort’s clients — former President Viktor F. Yanukovych of Ukraine and his Party of Regions — operated.

And in a broader sense, they underscore the dangers that lurk for foreigners who, tempted by potentially rich payoffs, cast their lot with politicians in countries that at best have different laws about money in politics, and at worst are, like Ukraine in those years, irredeemably corrupt.

Mr. Yanukovych was driven from office in the Maidan Revolution of 2014, after having stolen, according to the current Ukrainian government, at least $1 billion. In the years before his fall, Mr. Manafort took lavish payments to burnish the image of Mr. Yanukovych and the Party of Regions in Washington, even as the party acknowledged only very modest spending.

In 2012, for example, the party reported annual expenses of about $11.1 million, based on the exchange rate at the time, excluding overhead. For the same year, Mr. Manafort reported income of $12.1 million from the party, the Justice Department filing shows. [Continue reading…]

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Trump’s Russian laundromat

Craig Unger writes: In 1984, a Russian émigré named David Bogatin went shopping for apartments in New York City. The 38-year-old had arrived in America seven years before, with just $3 in his pocket. But for a former pilot in the Soviet Army—his specialty had been shooting down Americans over North Vietnam—he had clearly done quite well for himself. Bogatin wasn’t hunting for a place in Brighton Beach, the Brooklyn enclave known as “Little Odessa” for its large population of immigrants from the Soviet Union. Instead, he was fixated on the glitziest apartment building on Fifth Avenue, a gaudy, 58-story edifice with gold-plated fixtures and a pink-marble atrium: Trump Tower.

A monument to celebrity and conspicuous consumption, the tower was home to the likes of Johnny Carson, Steven Spielberg, and Sophia Loren. Its brash, 38-year-old developer was something of a tabloid celebrity himself. Donald Trump was just coming into his own as a serious player in Manhattan real estate, and Trump Tower was the crown jewel of his growing empire. From the day it opened, the building was a hit—all but a few dozen of its 263 units had sold in the first few months. But Bogatin wasn’t deterred by the limited availability or the sky-high prices. The Russian plunked down $6 million to buy not one or two, but five luxury condos. The big check apparently caught the attention of the owner. According to Wayne Barrett, who investigated the deal for the Village Voice, Trump personally attended the closing, along with Bogatin.

If the transaction seemed suspicious—multiple apartments for a single buyer who appeared to have no legitimate way to put his hands on that much money—there may have been a reason. At the time, Russian mobsters were beginning to invest in high-end real estate, which offered an ideal vehicle to launder money from their criminal enterprises. “During the ’80s and ’90s, we in the U.S. government repeatedly saw a pattern by which criminals would use condos and high-rises to launder money,” says Jonathan Winer, a deputy assistant secretary of state for international law enforcement in the Clinton administration. “It didn’t matter that you paid too much, because the real estate values would rise, and it was a way of turning dirty money into clean money. It was done very systematically, and it explained why there are so many high-rises where the units were sold but no one is living in them.” When Trump Tower was built, as David Cay Johnston reports in The Making of Donald Trump, it was only the second high-rise in New York that accepted anonymous buyers.

In 1987, just three years after he attended the closing with Trump, Bogatin pleaded guilty to taking part in a massive gasoline-bootlegging scheme with Russian mobsters. After he fled the country, the government seized his five condos at Trump Tower, saying that he had purchased them to “launder money, to shelter and hide assets.” A Senate investigation into organized crime later revealed that Bogatin was a leading figure in the Russian mob in New York. His family ties, in fact, led straight to the top: His brother ran a $150 million stock scam with none other than Semion Mogilevich, whom the FBI considers the “boss of bosses” of the Russian mafia. At the time, Mogilevich—feared even by his fellow gangsters as “the most powerful mobster in the world”—was expanding his multibillion-dollar international criminal syndicate into America.

Since Trump’s election as president, his ties to Russia have become the focus of intense scrutiny, most of which has centered on whether his inner circle colluded with Russia to subvert the U.S. election. A growing chorus in Congress is also asking pointed questions about how the president built his business empire. Rep. Adam Schiff, the ranking Democrat on the House Intelligence Committee, has called for a deeper inquiry into “Russian investment in Trump’s businesses and properties.”

The very nature of Trump’s businesses—all of which are privately held, with few reporting requirements—makes it difficult to root out the truth about his financial deals. And the world of Russian oligarchs and organized crime, by design, is shadowy and labyrinthine. For the past three decades, state and federal investigators, as well as some of America’s best investigative journalists, have sifted through mountains of real estate records, tax filings, civil lawsuits, criminal cases, and FBI and Interpol reports, unearthing ties between Trump and Russian mobsters like Mogilevich. To date, no one has documented that Trump was even aware of any suspicious entanglements in his far-flung businesses, let alone that he was directly compromised by the Russian mafia or the corrupt oligarchs who are closely allied with the Kremlin. So far, when it comes to Trump’s ties to Russia, there is no smoking gun.

But even without an investigation by Congress or a special prosecutor, there is much we already know about the president’s debt to Russia. A review of the public record reveals a clear and disturbing pattern: Trump owes much of his business success, and by extension his presidency, to a flow of highly suspicious money from Russia. Over the past three decades, at least 13 people with known or alleged links to Russian mobsters or oligarchs have owned, lived in, and even run criminal activities out of Trump Tower and other Trump properties. Many used his apartments and casinos to launder untold millions in dirty money. Some ran a worldwide high-stakes gambling ring out of Trump Tower—in a unit directly below one owned by Trump. Others provided Trump with lucrative branding deals that required no investment on his part. Taken together, the flow of money from Russia provided Trump with a crucial infusion of financing that helped rescue his empire from ruin, burnish his image, and launch his career in television and politics. “They saved his bacon,” says Kenneth McCallion, a former assistant U.S. attorney in the Reagan administration who investigated ties between organized crime and Trump’s developments in the 1980s. [Continue reading…]

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New details emerge on Moscow real estate deal that led to the Trump-Kremlin alliance

Michael Isikoff reports: While in Moscow for the Miss Universe pageant in November 2013, Donald Trump entered into a formal business deal with Aras Agalarov, a Russian oligarch close to Vladimir Putin, to construct a Trump Tower in the Russian capital. He later assigned his son, Donald Trump Jr., to oversee the project, according to Rob Goldstone, the British publicist who arranged the controversial 2016 meeting between the younger Trump and a Kremlin-linked lawyer.

Trump has dismissed the idea he had any business deals in Russia, saying at one point last October, “I have nothing to do with Russia.”

But Goldstone’s account, provided in an extensive interview in March in New York, offers new details of the proposed Trump project that appears to have been further along than most previous reports have suggested, and even included a trip by Ivanka Trump to Moscow to identify potential sites.

According to the publicist, the project — structured as a licensing deal in which Agalarov would build the tower with Trump’s name on it — was only abandoned after the Russian economy floundered. The economic downturn resulted in part from sanctions imposed by the U.S. and the European Union following Russia’s intervention in Ukraine. [Continue reading…]

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Jared Kushner tried and failed to get a half-billion-dollar bailout from Qatar

The Intercept reports: Not long before a major crisis ripped through the Middle East, pitting the United States and a bloc of Gulf countries against Qatar, Jared Kushner’s real estate company had unsuccessfully sought a critical half-billion-dollar investment from one of the richest and most influential men in the tiny nation, according to three well-placed sources with knowledge of the near transaction.

Kushner is a senior adviser to President Trump, and also his son-in-law, and also the scion of a New York real estate empire that faces an extreme risk from an investment made by Kushner in the building at 666 Fifth Avenue, where the family is now severely underwater.

Qatar is facing an ongoing blockade led by Saudi Arabia and the United Arab Emirates and joined by Egypt and Bahrain, which President Trump has taken credit for sparking. Kushner, meanwhile, has reportedly played a key behind-the-scenes role in hardening the U.S. posture toward the embattled nation.

That hard line comes in the wake of the previously unreported half-billion-dollar deal that was never consummated. Throughout 2015 and 2016, Jared Kushner and his father, Charles, negotiated directly with a major investor in Qatar, Sheikh Hamad bin Jassim al-Thani, known as HBJ for short, in an effort to refinance the property on Fifth Avenue, the sources said.

Trump himself has unsuccessfully sought financing in recent years from the Qataris, but it is difficult to overstate just how important the investment at 666 Fifth Avenue is for Kushner, his company, and his family’s legacy in real estate. Without some outside intervention or unforeseen turnaround in the market, the investment could become an embarrassing half-billion-dollar loss. It’s unclear precisely how much peril such a loss would put Jared’s or his family’s finances in, given the opacity of their private holdings. [Continue reading…]

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U.S. government ethics chief resigns, with parting shot at Trump

The Guardian reports: The top ethics watchdog in the federal government announced his resignation on Thursday, taking a parting shot at Donald Trump as he did so.

Walter Shaub, head of the independent Office of Government Ethics (OGE), said in his resignation letter to Trump that he would step down in mid-July, six months before the end of his term, in order to take a job at the Campaign Legal Center, a not-for-profit good-government group.

Leading the OGE had been “the great privilege and honor of my career”, he wrote.

In a separate statement from the center, Shaub said: “In working with the current administration, it has become clear to me that we need improvements to the existing ethics program. I look forward to working toward that aim at Campaign Legal Center, as well as working on ethics reforms at all levels of government.”

Shaub is a longtime federal bureaucrat who was appointed to the OGE by Barack Obama in 2013 and confirmed by a voice vote in the US Senate.

Since Trump’s victory in the 2016 election, Shaub has strongly criticized the president over his failure to divest from his business holdings, saying he was “extremely troubled” that Trump simply turned over his investments to his two oldest sons.

Shaub also clashed with the White House over whether lobbyists working in the Trump administration should have to disclose ethics waivers, and over aide Kellyanne Conway’s controversial suggestion that Americans should buy products sold by Ivanka Trump, the president’s daughter.

In his resignation letter, he also took one more opportunity to goad Trump on his approach to government ethics policies, putting in italics “public service is a public trust” – the first of 14 principles of public service promulgated by George HW Bush in a 1989 executive order.

OGE staff, he wrote, were “committed to protecting the principle that public service is a public trust, requiring employees to place loyalty to the constitution, the laws, and ethical principles above private gains”. [Continue reading…]

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What makes America exceptional?

David Frum writes: America’s uniqueness, even pre-Trump, was expressed as much through negative indicators than positive. It is more violent than other comparable societies, both one-on-one and in the gun massacres to which the country has become so habituated. It has worse health outcomes than comparably wealthy countries, and some of them most important of them are deteriorating further even as they improve almost everywhere else. America’s average levels of academic achievement lag those of other advanced countries. Fewer Americans vote—and in no other democracy does organized money count for so much in political life. A century ago, H.L. Mencken observed the American “national genius for corruption,” and (again pre-Trump) Transparency International’s corruption perceptions index ranks the U.S. in 18th place, behind Hong Kong, Belgium, Australia, Canada, the Netherlands, the United Kingdom, Germany—never mind first-place finishers Denmark and New Zealand.

As I said: pre-Trump. Now the United States has elected a president who seems much more aligned with—and comfortable in the company of—the rulers of Turkey, Hungary, Uzbekistan, and the Philippines than his counterparts in other highly developed countries.

That result forces a reshaping of the question of American exceptionalism.

“Why was the United States vulnerable to such a person when other democracies have done so much better?” Part of the answer is a technical one: The Electoral College, designed to protect the country from demagogues, instead elected one. But then we have to ask: How did Trump even get so far that the Electoral College entered into the matter one way or another?

Thinking about that question forces an encounter with American exceptionalism in its most somber form. If, as I believe, Donald Trump arose because of the disregard of the American political and economic elite for the troubles of so many of their fellow-citizens, it has to be asked again: How could the leaders of a democratic country imagine they could get away with such disregard? [Continue reading…]

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Trump campaign chief’s firm got $17 million from pro-Russia party

The New York Times reports: Paul Manafort, who was forced out as President Trump’s campaign chairman last summer after five months of infighting and criticism about his business dealings with pro-Russian interests, disclosed Tuesday that his consulting firm had received more than $17 million over two years from a Ukrainian political party with links to the Kremlin.

The filing serves as a retroactive admission that Mr. Manafort performed work in the United States on behalf of a foreign power — Ukraine’s Party of Regions — without disclosing it at the time, as required by law. The Party of Regions is the political base of former President Viktor F. Yanukovych, who fled to Russia during a popular uprising in 2014.

The disclosure hints at the vast fortunes available to top American political consultants plying their trade in other countries.

It was not immediately clear if Mr. Manafort would be required to pay any fines for the late filing. He has maintained that a majority of his work for Mr. Yanukovych was political consulting in Ukraine, where his firm, Davis Manafort International, operated an office at the time. [Continue reading…]

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Kushner firm’s $285 million Deutsche Bank loan came just before Election Day

The Washington Post reports: One month before Election Day, Jared Kushner’s real estate company finalized a $285 million loan as part of a refinancing package for its property near Times Square in Manhattan.

The loan came at a critical moment. Kushner was playing a key role in the presidential campaign of his father-in-law, Donald Trump. The lender, Deutsche Bank, was negotiating to settle a federal mortgage fraud case and charges from New York state regulators that it aided a possible Russian money-laundering scheme. The cases were settled in December and January.

Now, Kushner’s association with Deutsche Bank is among a number of financial matters that could come under focus as his business activities are reviewed by special counsel Robert S. Mueller III, who is examining Kushner as part of a broader investigation into possible Russian influence in the election.

The October deal illustrates the extent to which Kushner was balancing roles as a top adviser to Trump and a real estate company executive. After the election, Kushner juggled duties for the Trump transition team and his corporation as he prepared to move to the White House. The Washington Post has reported that investigators are probing Kushner’s separate December meetings with the Russian ambassador to the United States, Sergey Kislyak, and with Russian banker Sergey Gorkov, the head of Vnesheconombank, a state development bank. [Continue reading…]

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Vladimir Putin is suddenly on the defensive against corruption

Stephen Sestanovich writes: For years now, Putin has claimed — with brazen but disarming candor — to be fighting hard against corruption and the abuse of state power. In his 2015 speech to parliament, he complained that the bullying of legitimate businesses by bribe-seeking officials was a blight on the Russian economy. In his April 2016 call-in, he took questions about shakedowns by government inspectors, about real estate scams enabled by the courts, about the enslavement of workers in a fish cannery (ignored by the police), about the illegal seizure of a Moscow research institute by officials who wanted its land, and more. Putin has said that without fundamental reforms, the country’s economic growth will “hover around zero.” Last summer he told parliamentary candidates of his own party, United Russia, that they had to work harder to win the people’s trust.

Most of this was, of course, meaningless rhetoric. Any serious follow-through would threaten the system Putin has created.

But that’s why we should pay attention when he changes course. On the program last week, Putin announced that corruption is simply “not among the top” issues bothering Russians. When an earnest high school student complained about light punishment meted out to corrupt officials, the president’s initial, prickly response was to suggest that someone else had written the question. His lame concluding plea: “Let us rely on the work of the judicial system.”

Dismissing corruption and the abuse of power didn’t keep Putin from playing his usual role as national problem solver. Was a young teacher paid too little? The president said he’d look into it. Was a single mother in Siberia homeless after forest fires? Putin said he’d talk to the governor of her region. And the woman who lost her home to floods in southern Russia? Again, he promised to talk to her governor.

Yet through all this Putin kept repeating that there was something “strange” about the problems being raised. After all, money had been budgeted to help victims of natural disasters. Maybe, he volunteered, one of the governors was just new on the job? He steered consistently clear of the need for systemic reform or stronger anti-corruption initiatives. Sure, officials at all levels sometimes made wrong decisions, Putin admitted, adding, “I will reprimand them for this” (a typical response). And when asked what he did when people cheated him, the president modeled acceptance: “I try not to make a fuss.”

It’s obvious why Putin has gotten nervous about the corruption issue. His most visible political opponent, Alexei Navalny, has made it the centerpiece of hugely popular online videos and of recent rallies against the “crooks and thieves” of the current regime. It was always a bit shocking that Putin thought he could claim to be a champion of clean government, but somehow he got away with it. Now, apparently, he worries that even talking about corruption will validate Navalny’s critique. [Continue reading…]

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Trump appointee is a Saudi government lobbyist

The Center for Public Integrity reports: One of President Donald Trump’s newest appointees is a registered agent of Saudi Arabia earning hundreds of thousands of dollars to lobby on the kingdom’s behalf, according to U.S. Department of Justice records reviewed by the Center for Public Integrity.

Since January, the Saudi Arabian foreign ministry has paid longtime Republican lobbyist Richard Hohlt about $430,000 in exchange for “advice on legislative and public affairs strategies.”

Trump’s decision to appoint a registered foreign agent to the President’s Commission on White House Fellowships clashes with the president’s vow to clean up Washington and limit the influence of special interests.

Trump singled out lobbyists for foreign governments for special criticism, saying they shouldn’t be permitted to contribute to political campaigns. Hohlt is himself a Trump donor, though his contributions came before he registered to represent Saudi Arabia. [Continue reading…]

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Wall Street Journal fires chief foreign affairs correspondent, Jay Solomon, over ethics conflict

The Associated Press reports: The Wall Street Journal on Wednesday fired its highly regarded chief foreign affairs correspondent after evidence emerged of his involvement in prospective commercial deals — including one involving arms sales to foreign governments — with an international businessman who was one of his key sources.

The reporter, Jay Solomon, was offered a 10 percent stake in a fledgling company, Denx LLC, by Farhad Azima, an Iranian-born aviation magnate who has ferried weapons for the CIA. It was not clear whether Solomon ever received money or formally accepted a stake in the company.

“We are dismayed by the actions and poor judgment of Jay Solomon,” Wall Street Journal spokesman Steve Severinghaus wrote in a statement to The Associated Press. “While our own investigation continues, we have concluded that Mr. Solomon violated his ethical obligations as a reporter, as well as our standards.”

Azima was the subject of an AP investigative article published Tuesday. During the course of its investigation, the AP obtained emails and text messages between Azima and Solomon, as well as an operating agreement for Denx dated March 2015, which listed an apparent stake for Solomon.

As part of its reporting, the AP had asked the Journal about the documents appearing to link Solomon and Azima. The relationship was uncovered in interviews and in internal documents that Azima’s lawyer said were stolen by hackers. [Continue reading…]

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