Category Archives: corruption

Trump, Russia and a shadowy business partnership

Timothy L. O’Brien writes: Trump has repeatedly labeled Comey’s and Mueller’s investigations “witch hunts,” and his lawyers have said that the last decade of his tax returns (which the president has declined to release) would show that he had no income or loans from Russian sources. In May, Trump told NBC that he has no property or investments in Russia. “I am not involved in Russia,” he said.

But that doesn’t address national security and other problems that might arise for the president if Russia is involved in Trump, either through potentially compromising U.S. business relationships or through funds that flowed into his wallet years ago. In that context, a troubling history of Trump’s dealings with Russians exists outside of Russia: in a dormant real-estate development firm, the Bayrock Group, which once operated just two floors beneath the president’s own office in Trump Tower.

Bayrock partnered with the future president and his two eldest children, Donald Jr. and Ivanka, on a series of real-estate deals between 2002 and about 2011, the most prominent being the troubled Trump Soho hotel and condominium in Manhattan.

During the years that Bayrock and Trump did deals together, the company was also a bridge between murky European funding and a number of projects in the U.S. to which the president once leant his name in exchange for handsome fees. Icelandic banks that dealt with Bayrock, for example, were easy marks for money launderers and foreign influence, according to interviews with government investigators, legislators, and others in Reykjavik, Brussels, Paris and London. Trump testified under oath in a 2007 deposition that Bayrock brought Russian investors to his Trump Tower office to discuss deals in Moscow, and said he was pondering investing there.

“It’s ridiculous that I wouldn’t be investing in Russia,” Trump said in that deposition. “Russia is one of the hottest places in the world for investment.” [Continue reading…]

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Michael Flynn, Russia and a grand scheme to build nuclear power plants in Saudi Arabia and the Arab world

Jeff Stein reports: By the time Michael Flynn was fired as President Donald Trump’s national security adviser in February, he had made a lot of bad decisions. One was taking money from the Russians (and failing to disclose it); another was taking money under the table from the Turks. But an overlooked line in his financial disclosure form, which he was forced to amend to detail those foreign payments, reveals he was also involved in one of the most audacious—and some say harebrained—schemes in recent memory: a plan to build scores of U.S. nuclear power plants in the Middle East. As a safety measure.

In 2015 and 2016, according to his filing, Flynn was an adviser to X-Co Dynamics Inc./Iron Bridge Group, which at first glance looks like just another Pentagon consultancy that ex-military officers use to fatten their wallets. Its chairman and CEO was retired Admiral Michael Hewitt; another retired admiral, Frank “Skip” Bowman, who oversaw the Navy’s nuclear programs, was an adviser. Other top guns associated with it were former National Security Agency boss Keith Alexander and retired Marine Corps General James “Hoss” Cartwright, a former vice chairman of the Joint Chiefs of Staff whose stellar career was marred when he was prosecuted last year for lying to the FBI during a leak investigation.

In June 2015, knowledgeable sources tell Newsweek, Flynn flew to Egypt and Israel on behalf of X-Co/Iron Bridge. His mission: to gauge attitudes in Cairo and Jerusalem toward a plan for a joint U.S.-Russian (and Saudi-financed) program to get control over the Arab world’s rush to acquire nuclear power. At the core of their concern was a fear that states in the volatile Middle East would have inadequate security for the plants and safeguards for their radioactive waste—the stuff of nuclear bombs.

But no less a concern for Flynn and his partners was the moribund U.S. nuclear industry, which was losing out to Russian and even South Korean contractors in the region. Or, as Stuart Solomon, a top executive along with Hewitt at his new venture, IP3 (International Peace, Power and Prosperity), put it in a recent speech to industry executives, “We find ourselves…standing on the sidelines and watching the competition pass us by.” [Continue reading…]

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Using texts as lures, Mexican government spyware targets journalists and their families

The New York Times reports: Mexico’s most prominent human rights lawyers, journalists and anti-corruption activists have been targeted by advanced spyware sold to the Mexican government on the condition that it be used only to investigate criminals and terrorists.

The targets include lawyers looking into the mass disappearance of 43 students, a highly respected academic who helped write anti-corruption legislation, two of Mexico’s most influential journalists and an American representing victims of sexual abuse by the police. The spying even swept up family members, including a teenage boy.

Since 2011, at least three Mexican federal agencies have purchased about $80 million worth of spyware created by an Israeli cyberarms manufacturer. The software, known as Pegasus, infiltrates smartphones to monitor every detail of a person’s cellular life — calls, texts, email, contacts and calendars. It can even use the microphone and camera on phones for surveillance, turning a target’s smartphone into a personal bug.

The company that makes the software, the NSO Group, says it sells the tool exclusively to governments, with an explicit agreement that it be used only to battle terrorists or the drug cartels and criminal groups that have long kidnapped and killed Mexicans.

But according to dozens of messages examined by The New York Times and independent forensic analysts, the software has been used against some of the government’s most outspoken critics and their families, in what many view as an unprecedented effort to thwart the fight against the corruption infecting every limb of Mexican society. [Continue reading…]

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Trump’s business ties in Persian Gulf raise questions about his allegiances

The New York Times reports: President Trump has done business with royals from Saudi Arabia for at least 20 years, since he sold the Plaza Hotel to a partnership formed by a Saudi prince. Mr. Trump has earned millions of dollars from the United Arab Emirates for putting his name on a golf course, with a second soon to open.

He has never entered the booming market in neighboring Qatar, however, despite years of trying.

Now a feud has broken out among these three crucial American allies, and Mr. Trump has thrown his weight firmly behind the two countries where he has business ties, raising new concerns about the appearance of a conflict between his public role and his financial incentives.

Mr. Trump has said he is backing Saudi Arabia and the United Arab Emirates because Qatar is “a funder of terror at a very high level.” But his stance toward Qatar, which is host to the largest American air base in the region, has differed sharply from the positions of the Pentagon and State Department. The secretaries of defense and state have stayed neutral, urging unity against the common enemy of the Islamic State.

Mr. Trump is the first president in 40 years to retain his personal business interests after entering the White House. Other senior officials in the executive branch are required to divest their assets. Critics say his singular decision to hold on to his global business empire inevitably casts a doubt on his motives, especially when his public actions dovetail with his business interests. [Continue reading…]

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From Russia with blood

BuzzFeed reports: The London square was still and cold when the body fell, dropping silently through the moonlight and landing with a thud. Impaled through the chest on the spikes of a wrought iron fence, it dangled under the streetlamps as blood spilled onto the pavement. Overhead, a fourth-floor window stood open, the lights inside burning.

The dead man was Scot Young. The one-time multimillionaire and fixer to the world’s super-rich had been telling friends, family, and the police for years that he was being targeted by a team of Russian hitmen – ever since his fortune vanished overnight in a mysterious Moscow property deal. He was the ninth in a circle of friends and business associates to die in suspicious circumstances. But when the police entered his penthouse that night, they didn’t even dust for fingerprints. They declared his death a suicide on the spot and closed the case.

A two-year investigation by BuzzFeed News has now uncovered explosive evidence pointing to Russia that the police overlooked. A massive trove of documents, phone records, and secret recordings shows Young was part of a circle of nine men, including the exiled oligarch Boris Berezovsky, who all died suspiciously on British soil after making powerful enemies in Russia. The files reveal that Young lived in the shadow of the Russian security services and mafia groups after fronting for Berezovsky – a sworn enemy of the state – in a series of deals that enraged the Kremlin, including the doomed Russian property deal known as Project Moscow. British police declared the deaths of all nine men in Berezovsky’s circle non-suspicious, but BuzzFeed News can now reveal that MI6, Britain’s secret intelligence service, asked its US counterparts for information about each one of them “in the context of assassinations”. [Continue reading…]

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Trump’s business deals, now cloaked in secrecy, provide open door to corruption

USA Today reports: Since President Trump won the Republican nomination, the majority of his companies’ real estate sales are to secretive shell companies that obscure the buyers’ identities, a USA TODAY investigation has found.

Over the last 12 months, about 70% of buyers of Trump properties were limited liability companies – corporate entities that allow people to purchase property without revealing all of the owners’ names. That compares with about 4% of buyers in the two years before.

USA TODAY journalists have spent six months cataloging every condo, penthouse or other property that Trump and his companies own – and tracking the buyers behind every transaction. The investigation found Trump’s companies owned more than 430 individual properties worth well over $250 million.

Since Election Day, Trump’s businesses have sold 28 of those U.S. properties for $33 million. The sales include luxury condos and penthouses in Las Vegas and New York and oceanfront lots near Los Angeles. The value of his companies’ inventory of available real estate remains above a quarter-billion dollars.

Profits from sales of those properties flow through a trust run by Trump’s sons. The president is the sole beneficiary of the trust and can withdraw cash any time.

The increasing share of opaque buyers comes at a time when federal investigators, members of Congress and ethics watchdogs are asking questions about Trump’s sales and customers in the U.S. and around the world. Some Congressional Democrats have been asking for more detail about buyers of Trump’s domestic real estate since USA TODAY’s initial report.

Their concern is that the secretive sales create an extraordinary and unprecedented potential for people, corporations or foreign interests to try to influence a President. Anyone who wanted to court favor with the President could snap up multiple properties or purposefully overpay, without revealing their identity publicly.

The real estate cache, which Trump has never fully revealed and is not required by law to disclose, offers unique opportunity for anyone to steer money to a sitting President. [Continue reading…]

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D.C. and Maryland to sue Trump, alleging breach of constitutional oath

The Washington Post reports: Attorneys general for the District of Columbia and the state of Maryland say they will sue President Trump on Monday, alleging that he has violated anti-corruption clauses in the Constitution by accepting millions in payments and benefits from foreign governments since moving into the White House.

The lawsuit, the first of its kind brought by government entities, centers on the fact that Trump chose to retain ownership of his company when he became president. Trump said in January that he was shifting his business assets into a trust managed by his sons to eliminate potential conflicts of interests.

But D.C. Attorney General Karl A. Racine (D) and Maryland Attorney General Brian E. Frosh (D) say Trump has broken many promises to keep separate his public duties and private business interests. For one, his son Eric Trump has said the president would continue to receive regular updates about his company’s financial health.

The lawsuit, a signed copy of which Racine and Frosh provided to The Washington Post on Sunday night, alleges “unprecedented constitutional violations” by Trump. The suit says Trump’s continued ownership of a global business empire has rendered the president “deeply enmeshed with a legion of foreign and domestic government actors” and has undermined the integrity of the U.S. political system. [Continue reading…]

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Trump’s lawyer in Russia probe has clients with Kremlin ties

The Washington Post reports: The hard-charging New York lawyer President Trump chose to represent him in the Russia investigation has prominent clients with ties to the Kremlin, a striking pick for a president trying to escape the persistent cloud that has trailed his administration.

Marc E. Kasowitz’s clients include Oleg Deripaska, a Russian oligarch who is close to President Vladimir Putin and has done business with Trump’s former campaign manager. Kasowitz also represents Sberbank, Russia’s largest state-owned bank, U.S. court records show.

Kasowitz has represented one of Deripaska’s companies for years in a civil lawsuit in New York and was scheduled to argue on the company’s behalf May 25, two days after news broke that Trump had hired him, court records show. A different lawyer in Kasowitz’s firm showed up in court instead, avoiding a scenario that would have highlighted Kasowitz’s extensive work for high-profile Russian clients. [Continue reading…]

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Justice Department argues Trump can accept payments from foreign governments

Bloomberg reports: George Washington did it, so Donald Trump can too.

That’s the Justice Department’s take on why the 45th president isn’t violating the U.S. Constitution by accepting payments for goods and services from foreign governments without congressional approval.

The foreign emoluments clause of the Constitution doesn’t apply to fair-market commercial transactions, such as hotel bills, golf club fees, licensing payments and office rent, the Justice department argued Friday in a filing. The government is asking a judge to throw out a lawsuit brought by a watchdog group that claims Trump’s business dealings violate the Constitution. [Continue reading…]

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How Donald Trump shifted children’s cancer charity money into his business

Forbes reports: Like autumn leaves, sponsored Cadillacs, Ferraris and Maseratis descend on the Trump National Golf Club in Westchester County, New York, in September for the Eric Trump Foundation golf invitational. Year after year, the formula is consistent: 18 holes of perfectly trimmed fairways with a dose of Trumpian tackiness, including Hooters waitresses and cigar spreads, followed by a clubhouse dinner, dates encouraged. The crowd leans toward real estate insiders, family friends and C-list celebrities, such as former baseball slugger Darryl Strawberry and reality housewife (and bankruptcy-fraud felon) Teresa Giudice.

The real star of the day is Eric Trump, the president’s second son and now the co-head of the Trump Organization, who has hosted this event for ten years on behalf of the St. Jude Children’s Research Hospital in Memphis. He’s done a ton of good: To date, he’s directed more than $11 million there, the vast majority of it via this annual golf event. He has also helped raise another $5 million through events with other organizations.

The best part about all this, according to Eric Trump, is the charity’s efficiency: Because he can get his family’s golf course for free and have most of the other costs donated, virtually all the money contributed will go toward helping kids with cancer. “We get to use our assets 100% free of charge,” Trump tells Forbes.

That’s not the case. In reviewing filings from the Eric Trump Foundation and other charities, it’s clear that the course wasn’t free–that the Trump Organization received payments for its use, part of more than $1.2 million that has no documented recipients past the Trump Organization. Golf charity experts say the listed expenses defy any reasonable cost justification for a one-day golf tournament.

Additionally, the Donald J. Trump Foundation, which has come under previous scrutiny for self-dealing and advancing the interests of its namesake rather than those of charity, apparently used the Eric Trump Foundation to funnel $100,000 in donations into revenue for the Trump Organization.

And while donors to the Eric Trump Foundation were told their money was going to help sick kids, more than $500,000 was re-donated to other charities, many of which were connected to Trump family members or interests, including at least four groups that subsequently paid to hold golf tournaments at Trump courses.

All of this seems to defy federal tax rules and state laws that ban self-dealing and misleading donors. It also raises larger questions about the Trump family dynamics and whether Eric and his brother, Don Jr., can be truly independent of their father.

Especially since the person who specifically commanded that the for-profit Trump Organization start billing hundreds of thousands of dollars to the nonprofit Eric Trump Foundation, according to two people directly involved, was none other than the current president of the United States, Donald Trump. [Continue reading…]

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How the GOP leaders were persuaded to cast climate change as fake science

The New York Times reports: The Republican Party’s fast journey from debating how to combat human-caused climate change to arguing that it does not exist is a story of big political money, Democratic hubris in the Obama years and a partisan chasm that grew over nine years like a crack in the Antarctic shelf, favoring extreme positions and uncompromising rhetoric over cooperation and conciliation.

“Most Republicans still do not regard climate change as a hoax,” said Whit Ayres, a Republican strategist who worked for Senator Marco Rubio’s presidential campaign. “But the entire climate change debate has now been caught up in the broader polarization of American politics.”

“In some ways,” he added, “it’s become yet another of the long list of litmus test issues that determine whether or not you’re a good Republican.”

Since Mr. McCain ran for president on climate credentials that were stronger than his opponent Barack Obama’s, the scientific evidence linking greenhouse gases from fossil fuels to the dangerous warming of the planet has grown stronger. Scientists have for the first time drawn concrete links between the planet’s warming atmosphere and changes that affect Americans’ daily lives and pocketbooks, from tidal flooding in Miami to prolonged water shortages in the Southwest to decreasing snow cover at ski resorts.

That scientific consensus was enough to pull virtually all of the major nations along. Conservative-leaning governments in Britain, France, Germany and Japan all signed on to successive climate change agreements.

Yet when Mr. Trump pulled the United States from the Paris accord, the Senate majority leader, the speaker of the House and every member of the elected Republican leadership were united in their praise.

Those divisions did not happen by themselves. Republican lawmakers were moved along by a campaign carefully crafted by fossil fuel industry players, most notably Charles D. and David H. Koch, the Kansas-based billionaires who run a chain of refineries (which can process 600,000 barrels of crude oil per day) as well as a subsidiary that owns or operates 4,000 miles of pipelines that move crude oil. [Continue reading…]

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Special counsel Mueller to probe ex-Trump aide Flynn’s Turkey ties

Reuters reports: Robert Mueller, the special counsel investigating possible ties between the Trump election campaign and Russia, is expanding his probe to include a grand jury investigation into former national security adviser Michael Flynn, three sources told Reuters.

The move means Mueller’s politically charged inquiry will now look into Flynn’s paid work as a lobbyist for a Turkish businessman in 2016, in addition to contacts between Russian officials and Flynn and other Trump associates during and after the Nov. 8 presidential election.

Federal prosecutors in Virginia are investigating a deal between Flynn and Turkish businessman Ekim Alptekin as part of a grand jury criminal probe, according to a subpoena seen by Reuters.

Alptekin’s company, Netherlands-based Inovo BV, paid Flynn’s consultancy $530,000 between September and November to produce a documentary and research on Fethullah Gulen, an exiled Turkish cleric living in the United States. Turkish President Tayyip Erdogan blames Gulen for a failed coup last July. [Continue reading…]

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Kushner keeps most of his real estate but offers few clues about potential White House conflicts

The Washington Post reports: As chief executive of his family’s real estate empire, Jared Kushner planned two apartment projects across the street from each other in Jersey City.

Both would be luxury skyscrapers, complete with retail space and sweeping views of the Manhattan skyline. A new crosswalk would connect them, intended to link the two Kushner Cos. developments practically and visually.

But when Kushner prepared an ethics plan ahead of joining the White House as a top adviser to his father-in-law, President Trump, he drew a curious distinction between the two projects. He sold his stake in one while keeping his share of up to $5 million in the other.

Kushner, 36, who is emerging as a singularly powerful figure in the Trump White House, is keeping nearly 90 percent of his vast real estate holdings even after resigning from the family business and pledging a clear divide between his private interests and public duties.

The value of his retained real estate interests is between $132 million and $407 million and could leave him in a position to financially benefit from his family’s business. [Continue reading…]

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Flynn’s Turkey connection is the case worth pursuing

Noah Feldman writes: What’s been missing so far in the scandals surrounding the Trump White House is a concrete act taken at the behest of foreign powers. Now there’s strong evidence of one: Michael Flynn reportedly stopped an attack on the Islamic State capital of Raqqa by Syrian Kurds, a military action strongly opposed by Turkey, after receiving more than $500,000 in payments from a Turkish source. The Kurds’ offensive had been greenlighted by Barack Obama’s administration, and is now back on track, reapproved by President Donald Trump sometime after Flynn was fired.

If this story proves accurate then it’s a game changer for special counsel Robert Mueller’s investigation. It demonstrates that, at least while Flynn was national security adviser-designate and until he was fired after 24 days in office, U.S. government policy on a core matter of national security was open to the highest foreign bidder. That’s a form of bribery that could land Flynn in prison and, potentially, give Mueller leverage to get Flynn to testify about whatever else he knows. [Continue reading…]

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Flynn stopped military plan Turkey opposed – after being paid as its agent

McClatchy reports: One of the Trump administration’s first decisions about the fight against the Islamic State was made by Michael Flynn weeks before he was fired – and it conformed to the wishes of Turkey, whose interests, unbeknownst to anyone in Washington, he’d been paid more than $500,000 to represent.

The decision came 10 days before Donald Trump had been sworn in as president, in a conversation with President Barack Obama’s national security adviser, Susan Rice, who had explained the Pentagon’s plan to retake the Islamic State’s de facto capital of Raqqa with Syrian Kurdish forces whom the Pentagon considered the U.S.’s most effective military partners. Obama’s national security team had decided to ask for Trump’s sign-off, since the plan would all but certainly be executed after Trump had become president.

Flynn didn’t hesitate. According to timelines distributed by members of Congress in the weeks since, Flynn told Rice to hold off, a move that would delay the military operation for months.

If Flynn explained his answer, that’s not recorded, and it’s not known whether he consulted anyone else on the transition team before rendering his verdict. But his position was consistent with the wishes of Turkey, which had long opposed the United States partnering with the Kurdish forces – and which was his undeclared client. [Continue reading…]

To refer to Flynn’s representation of Turkish interests as being “unbeknownst to anyone in Washington,” seems a bit premature. Trump’s unwillingness to fire Flynn, rather than being an expression of loyalty — not something Trump is famous for — may be an indication that whenever Flynn finally tells his own story, it’s going to destroy Trump.

So far, Trump’s ties to Flynn have largely been portrayed as an error in judgement. The real story, however, may reveal Trump’s complicity in Flynn’s corruption — that Flynn was far more transparent than we thus far know and that Trump and Pence with the hubris of victors thought they were immune from facing any repercussions.

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Kleptocracy: Trump’s opulent Caribbean estate is up for sale — $28 million to feel ‘almost presidential’

The Washington Post reports: The opulent beachfront estate that recently went on the market on the Caribbean island of St. Martin has a number of appealing factors, including two elaborately adorned villas and an expansive pool overlooking the crystalline waters of Plum Bay.

And there’s another unique aspect that nearby properties can’t claim: It is owned by the president of the United States.

Le Chateau des Palmiers, which President Trump described as “one of the greatest mansions in the world” when he bought it in 2013, was quietly listed for sale last month on the website of Sotheby’s International Realty, whose St. Martin office noted coyly in an Instagram post, “It’s huuuuuge!” The price, according to a person familiar with the listing: $28 million. [Continue reading…]

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Trump committed an impeachable offense

Noah Feldman writes: Using the presidential office to try to shut down the investigation of a senior executive official who was also a major player in the president’s campaign is an obvious and egregious abuse of power. It’s also a gross example of undermining the rule of law.

This act is exactly the kind that the Founding Fathers would have considered a “high crime.”

And it’s a high crime the president could perform only by virtue of holding his office.

Practically, it still seems unlikely that a Republican House would impeach the president, much less that two-thirds of the Senate would vote to convict and remove him from office.

But a Democratic House would have more than enough material now to start the impeachment process — including the revelation of the request to Comey. And the House could choose to impeach even if it calculated that the Senate probably wouldn’t convict.

The act of impeachment would have tremendous symbolic ramifications. And it would include the detailed investigative oversight that so far has been lacking in Washington. [Continue reading…]

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Manafort’s real-estate deals said to be probed by N.Y.’s top cop

Bloomberg reports: New York State has opened an investigation into the real-estate dealings of President Donald Trump’s former campaign manager, Paul Manafort, deepening the already intense legal scrutiny of the young administration.

The probe by New York Attorney General Eric Schneiderman, one of the most outspoken critics of the president, is in a preliminary stage, according to a person familiar with the matter who asked not to be named because the investigation isn’t public. Manafort, who ran Trump’s campaign from April to August last year, has owned property in the Hamptons and Trump Tower in Manhattan.

Manhattan District Attorney Cyrus Vance Jr. is also in the early stages of an investigation into Manafort’s transactions, a person familiar with that probe said. Representatives for Schneiderman and Vance declined to comment.

The inquiries by the two Democrats could pose added legal peril for Manafort if investigators find evidence of a crime. Unlike a probe by the U.S. Justice Department and FBI, the president and Attorney General Jeff Sessions have no authority over New York state investigators scrutinizing whether Manafort broke state laws. Schneiderman is responsible for enforcing New York’s securities laws under the Martin Act, which gives him broad powers to pursue white-collar crime. [Continue reading…]

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