Category Archives: corruption

Russian opposition leader Alexei Navalny in court after arrest

The Guardian reports: Russian opposition leader Alexei Navalny has appeared in a Moscow court a day after some of the biggest anti-government protests in years swept Russia.

Navalny faces up to 15 days in jail for organising protests across Russia on Sunday, which led to more than a thousand people being detained. He has declared his intention to run for president next year, an election in which Vladimir Putin is expected to stand and win a new six-year term.

A defiant Navalny posted a selfie from court on Twitter: “The time will come when we will put them on trial (but this time, honestly)” he wrote. He was upbeat during his hearing, asking the judge to summon [prime minister] Medvedev as a witness to “explain why so many people protested”. [Continue reading…]

NBC News reports: The United States said it was monitoring developments and called on Russia to release all of the protesters. Mark Toner, acting spokesman for the U.S. State Department, called the arrests “an affront to core democratic values.”

“The Russian people, like people everywhere, deserve a government that supports an open marketplace of ideas, transparent and accountable governance, equal treatment under the law and the ability to exercise their rights without fear of retribution,” Toner said. [Continue reading…]

AFP reports: Anti-corruption campaigner Alexei Navalny has cemented his status as leader of Russia’s opposition movement by organising the largest unauthorised protest in recent years against President Vladimir Putin’s rule.

The clean-cut lawyer, 40, who was arrested at Sunday’s demonstration in Moscow, is no stranger to clashes with the Kremlin.

He has spent time under house arrest and seen his brother jailed in a string of cases he has denounced as retribution for his challenging authorities and exposing the vast wealth of the president’s inner circle.

Late last year, in his most ambitious move yet, he announced he would run for president in 2018, an election that Putin is expected to dominate.

This month he posted a YouTube video tracing Prime Minister Dmitry Medvedev’s links to mansions, yachts and vineyards that has been viewed 12 million times. [Continue reading…]

Facebooktwittermail

Russian youth from Moscow to Siberia slam ‘Putin the thief’

The Daily Beast reports: A wave of protests against corrupt Kremlin leaders rolled all across Russian cities, from Moscow and Saint Petersburg to Siberia and Far East on Sunday.

Authorities did not permit the rallies and warned that participants would be punished, but tens of thousands came out to demonstrate their anger with the country’s leaders’ overwhelming corruption.

In Moscow protesters were chanting: “Putin the thief, go away!” Thousands of people gathered on the Palace Square of Saint Petersburg in front of the Hermitage and shouted: “Down with the Tsar!” The scene was reminiscent of the famous images captured 100 years ago on the same square during Bolshevik revolution.

According to Echo of Moscow radio station, 60,000 people took part in anti-Kremlin rallies in 82 Russian cities. [Continue reading…]

Buzzfeed reports: Alexei Navalny, one of Russia’s most prominent critics of President Vladimir Putin, organized the gatherings to raise pressure on Prime Minister Dmitry Medvedev. In March, Navalny accused Medvedev of accepting bribes that he used to purchase mansions and yachts.

Russian authorities, however, called these gatherings unauthorized and moved to disperse the crowd of thousands in Moscow’s Pushkin Square.

Neither the White House, State Department, or the US Embassy in Moscow had issued any statements by Sunday afternoon. As of 2 p.m. Eastern time, a State Department spokesperson was unable to provide any statements, or say if one was expected.

President Donald Trump has called for warming relations with Russia and more cooperation on counter-terrorism. In a February TV interview, Trump said he respects Putin and declined to criticize Russia’s human rights record, explaining: “What do you think? Our country’s so innocent?” [Continue reading…]

Facebooktwittermail

Nearly 1 out of every 3 days he has been president, Trump has visited a Trump property

The Washington Post reports: For the eighth weekend in a row, President Trump has visited a property that bears his name. He has done so on 21 of the 66 days he has been in office, meaning that for the equivalent of three full weeks of his just-over-nine weeks as commander in chief, he has spent all or part of a day at a Trump property — earning that property mentions in the media and the ability to tell potential clients that they might be able to interact with the president. And, despite his insistence on the campaign trail that he would avoid the links — “I’m going to be working for you. I’m not going to have time to go play golf,” he said in August — he has made 13 visits to his own golf courses since becoming president, likely playing golf on at least 12 of those occasions. [Continue reading…]

Facebooktwittermail

Russian police arrest protesters at nationwide anti-corruption rallies

The Washington Post reports: A wave of unsanctioned rallies swept across Russia on Sunday to protest corruption in the government of President Vladi­mir Putin, prompting arrests as riot police moved in to break up crowds.

The protests are driven by opposition leader Alexei Navalny and fueled by the popular response to his recent allegations that Prime Minister Dmitry Medvedev has amassed vineyards, luxury yachts and lavish mansions worth more than $1 billion.

The demonstrations appear to amount to the largest coordinated protests in Russia since the street rallies that broke out in 2011 and 2012 after a parliamentary election that opposition leaders decried as fraudulent. State-run television was silent about Sunday’s protests as of midday, but pictures posted on social media sites like Twitter suggested that sizable rallies were underway across the country.

Dozens of arrests were reported in the far east city of Vladivostok, and more were likely as demonstrations began in Russia’s largest cities, Moscow and St. Petersburg. Authorities preemptively banned a rally that Navalny called for central Moscow. Putin’s spokesman has said that even urging people to take part is illegal. [Continue reading…]

Facebooktwittermail

Alexei Navalny, Russian opposition leader, arrested in Moscow

BBC News reports: Russia’s main opposition leader, Alexei Navanly, has been arrested at an anti-corruption protest he organised in the capital, Moscow, witnesses say.

Protesters tried to prevent a police van from taking him away.

Navalny is known for his anti-corruption campaign, which targeted senior officials close to the Kremlin.

He is barred from running for president against Vladimir Putin next year after being found guilty in a case he said was politicised.

In a tweet after his detention, he urged fellow protesters to continue with the demonstration. [Continue reading…]

Facebooktwittermail

Bank that lent $300m to Trump linked to Russian money laundering scam

The Guardian reports: The German bank that loaned $300m (£260m) to Donald Trump played a prominent role in a money laundering scandal run by Russian criminals with ties to the Kremlin, the Guardian can reveal.

Deutsche Bank is one of dozens of western financial institutions that processed at least $20bn – and possibly more – in money of “criminal origin” from Russia.

The scheme, dubbed “the Global Laundromat”, ran from 2010 to 2014.

Law enforcement agencies are investigating how a group of politically well-connected Russians were able to use UK-registered companies to launder billions of dollars in cash. The companies made fictitious loans to each other, underwritten by Russian businesses. [Continue reading…]

Facebooktwittermail

The Russian ‘Global Laundromat’ laundering operation exposed

The Organized Crime and Corruption Reporting Project reports: Three years after the “Laundromat” was exposed as a criminal financial vehicle to move vast sums of money out of Russia, journalists now know how the complex scheme worked – including who ended up with the $20.8 billion and how, despite warnings, banks failed for years to shut it down.

The Organized Crime and Corruption Reporting Project (OCCRP) broke the story of the Laundromat in 2014, but recently the reporters from OCCRP and Novaya Gazeta in Moscow obtained a wealth of bank records which they then opened to investigative reporters in 32 countries.

Their combined research for the first time paints a fuller picture of how billions moved from Russia, into and through the 112 bank accounts that comprised the system in eastern Europe, then into banks around the world. [Continue reading…]

The Guardian reports: Britain’s high street banks processed nearly $740m from a vast money-laundering operation run by Russian criminals with links to the Russian government and the KGB, the Guardian can reveal.

HSBC, the Royal Bank of Scotland, Lloyds, Barclays and Coutts are among 17 banks based in the UK, or with branches here, that are facing questions over what they knew about the international scheme and why they did not turn away suspicious money transfers.

Documents seen by the Guardian show that at least $20bn appears to have been moved out of Russia during a four-year period between 2010 and 2014. The true figure could be $80bn, detectives believe.

One senior figure involved in the inquiry said the money from Russia was “obviously either stolen or with criminal origin”.

Investigators are still trying to identify some of the wealthy and politically influential Russians behind the operation, known as “the Global Laundromat”.

They estimate a group of about 500 people were involved. These include oligarchs, Moscow bankers, and figures working for or connected to the FSB, the successor spy agency to the KGB.

Igor Putin, the cousin of Russia’s president, Vladimir, sat on the board of a Moscow bank which held accounts involved in the fraud. [Continue reading…]

Facebooktwittermail

Ivanka Trump set to get West Wing office as role expands

Politico reports: Ivanka Trump, who moved to Washington, D.C., saying she would play no formal role in her father’s administration, is now officially setting up shop in the White House.

The powerful first daughter has secured her own office on the West Wing’s second floor — a space next to senior adviser Dina Powell, who was recently promoted to a position on the National Security Council. She is also in the process of obtaining a security clearance, and is set to receive government-issued communications devices this week.

In everything but name, the first daughter is settling in as what appears to be a full-time staffer in her father’s administration, with a broad and growing portfolio — except she is not being sworn in, will hold no official position, and is not pocketing a salary, her attorney said.

Ivanka Trump’s role, according to her attorney Jamie Gorelick, will be to serve as the president’s “eyes and ears” while providing broad-ranging advice, not just limited to women’s empowerment issues. Last week, for instance, Ivanka Trump raised eyebrows when she was seated next to Angela Merkel for the German chancellor’s first official visit to Trump’s White House. [Continue reading…]

Facebooktwittermail

Russian elite invested nearly $100 million in Trump buildings

Reuters reports: During the 2016 presidential campaign, Donald J. Trump downplayed his business ties with Russia. And since taking office as president, he has been even more emphatic.

“I can tell you, speaking for myself, I own nothing in Russia,” President Trump said at a news conference last month. “I have no loans in Russia. I don’t have any deals in Russia.”

But in the United States, members of the Russian elite have invested in Trump buildings. A Reuters review has found that at least 63 individuals with Russian passports or addresses have bought at least $98.4 million worth of property in seven Trump-branded luxury towers in southern Florida, according to public documents, interviews and corporate records.

The buyers include politically connected businessmen, such as a former executive in a Moscow-based state-run construction firm that works on military and intelligence facilities, the founder of a St. Petersburg investment bank and the co-founder of a conglomerate with interests in banking, property and electronics.

People from the second and third tiers of Russian power have invested in the Trump buildings as well. One recently posted a photo of himself with the leader of a Russian motorcycle gang that was sanctioned by the United States for its alleged role in Moscow’s seizure of Crimea. [Continue reading…]

Facebooktwittermail

Trump expected to pick coal lobbyist as EPA deputy

Politico reports: President Donald Trump is expected to tap Andrew Wheeler, a coal lobbyist and former aide to Sen. Jim Inhofe, to be deputy administrator of the Environmental Protection Agency, sources familiar with the hiring process told POLITICO.

Sources cautioned that the decision has not yet been finalized, but they said Wheeler is expected to get the job. It’s unclear when Trump will make the announcement, but one source said it could be weeks before Wheeler is officially tapped.

Wheeler worked as an EPA staffer earlier in his career. He later joined Inhofe’s Senate office and then spent more than a decade as a Republican staffer on the Senate Environment and Public Works Committee, where he worked on several major pieces of legislation, including the 2005 and 2007 energy bills.

He has worked at the law firm Faegre Baker Daniels since 2009. He now co-leads the firm’s energy and natural resources practice.

Wheeler is a registered lobbyist for Murray Energy, the nation’s largest privately owned coal company, which regularly filed lawsuits against the Obama administration over its environmental regulations.

As a lobbyist, Wheeler may need to obtain a waiver to serve at the EPA.

Trump signed an executive order in January that bars registered lobbyists from participating in “any particular matter” on which they lobbied in the past two years. Those lobbying restrictions last for two years from the time the person joins the administration. [Continue reading…]

Facebooktwittermail

New details released on Russia-related payments to Flynn before he joined Trump campaign

The Washington Post reports: Michael Flynn, who was forced to resign as national security adviser amid controversy over his contacts with Russia’s ambassador, collected nearly $68,000 in fees and expenses from Russia-related entities in 2015, a higher amount than was previously known, according to newly released documents.

The records show that the bulk of the money, more than $45,000, came from the Russian government-backed television network RT, in connection to a December 2015 trip Flynn took to Moscow. Flynn has acknowledged RT sponsored his trip, during which he attended a gala celebrating the network’s 10th anniversary and was seated near Russian President Vladi­mir Putin. His speaker’s bureau took a cut of the fee.

The newly released documents show that Flynn was also paid $11,250 that year by the U.S. subsidiary of a Russian cybersecurity firm, Kaspersky Lab, and another $11,250 by the Russian charter cargo airline Volga-Dnepr Airlines. The cyberfirm said the payment came for a speech Flynn delivered in Washington.

The new disclosures come as Flynn’s interactions with Russia have been under scrutiny. Flynn resigned 24 days after taking office amid reports that he misled Vice President Pence about the nature of contacts in December with the Russian ambassador. [Continue reading…]

Facebooktwittermail

Businesswoman who recently bought Trump penthouse is connected to Chinese intelligence front group

Mother Jones reports: When a Chinese American businesswoman who sells access to powerful people recently purchased a $15.8 million penthouse in a building owned by President Donald Trump, the deal raised a key question. Was this a straightforward real estate transaction, or was this an effort to win favor with the new administration? The woman, Angela Chen, refused to discuss the purchase with the media. The White House and the Trump Organization would not comment on it. Further investigation by Mother Jones has unearthed a new element to the story: Chen has ties to important members of the Chinese ruling elite and to an organization considered a front group for Chinese military intelligence.

Chen, who also goes by the names Xiao Yan Chen and Chen Yu, purchased the four-bedroom condo in the Trump Park Avenue building in New York City on February 21. As Mother Jones first reported, Chen runs a business consulting firm, Global Alliance Associates, which specializes in linking US businesses seeking deals in China with the country’s top power brokers. “As counselors in consummating the right relationships—quite simply—we provide access,” Chen’s firm boasts on its website. But Chen has another job: She chairs the US arm of a nonprofit called the China Arts Foundation, which was founded in 2006 and has links with Chinese elites and the country’s military intelligence service.

The China Arts Foundation was created by Deng Rong, the youngest daughter of Deng Xiaoping, the iconic revolutionary figure and Chinese leader. Deng Rong is what’s known in China as a princeling—a term used for the sons and daughters of former high-ranking officials or officers in the Chinese Communist Party who now hold significant sway in business and political circles. Since 1990, Deng has also served as a vice president of the China Association for International Friendly Contacts, which is an affiliate of the intelligence and foreign propaganda division of the People’s Liberation Army (PLA). China experts say CAIFC exists to cultivate relationships with former leaders and retired military officials and diplomats of various countries, including the United States and the United Kingdom, in order to influence foreign defense policies toward China and the Far East.

To sum up: An influence-peddler who works with a princeling tied to Chinese military intelligence placed $15.8 million in the pockets of the president of the United States. [Continue reading…]

Facebooktwittermail

Scandal fatigue and the Trump ethical swamp

Timothy L. O’Brien writes: Thanks to some fine work by two Bloomberg news reporters, David Kocieniewski and Caleb Melby, we now know that a major Chinese financial services firm may invest $4 billion in a Manhattan skyscraper owned by the family of President Donald Trump’s son-in-law, Jared Kushner. And that Kushner’s family stands to take home about $500 million for itself from the transaction.

All sorts of goodies are sprinkled around this potential deal, which is being circulated to attract additional investment. It would be the biggest investment — ever — in a single Manhattan building. Some of the Kushner family’s debt on the property would get erased for about a fifth of its value. The Kushners would become equity partners with the Chinese firm, Anbang Insurance Group.

Best of all for the Kushners, the deal would rescue the family company from the consequences of overpaying for the building, 666 Fifth Avenue, which it purchased in 2007 for $1.8 billion. It would also buy out another prominent Trump political backer who invested in the building, Steve Roth of Vornado Realty, for 10 times his original investment.

“It would make business partners of Kushner Cos. and Anbang, whose murky links to the Chinese power structure have raised national security concerns over its U.S. investments,” Kocieniewski and Melby wrote.

That observation is made all the more pungent by the fact that Trump and China’s president, Xi Jinping, have been discussing the terms of a possible diplomatic summit meeting that may take place as early as next month. [Continue reading…]

Facebooktwittermail

Monica Crowley lost White House job, now she’s got one with pro-Russian oligarch

The Daily Beast reports: A would-be Trump White House appointee who withdrew in the face of plagiarism allegations is now lobbying on behalf of a Ukrainian oligarch who has recently advocated greater concessions to the Russian government, according to newly filed documents.

Monica Crowley told the Justice Department’s National Security Division that she will represent billionaire Victor Pinchuk in discussions with U.S. government officials “and other policy makers” regarding “issues of concern to Mr. Pinchuk.”

Crowley, a Fox News contributor, was in line for a senior post at the White House National Security Council until reports from CNN and Politico reported that she had plagiarized large portions of her 2012 book What the (Bleep) Just Happened and her Columbia University Ph.D. dissertation.

Crowley dismissed the plagiarism allegations in her first public remarks on the controversy last week. “What happened to me was a despicable straight-up political hit job,” she said during an appearance on the Fox News show Hannity. “It’s been debunked, my editor has completely supported me and backed me up.” (It has not been debunked.)

She nevertheless withdrew from consideration for the post shortly after the allegations surfaced. Crowley will now be “providing outreach services on behalf of Mr. Victor Pinchuk,” according to a Friday filing with DOJ’s foreign agent registration office. [Continue reading…]

Facebooktwittermail

Preet Bharara shunned politics. His end was tinged by them

The New York Times reports: Ten days into his tenure as United States attorney in Manhattan, Preet Bharara saw his political and prosecutorial worlds collide.

He convened a meeting to discuss a sensitive investigation of a Democratic donor with ties to Senator Chuck Schumer of New York. Mr. Bharara had been Mr. Schumer’s chief counsel, and Mr. Schumer had recommended Mr. Bharara for the prosecutorial post.

At the meeting, Mr. Bharara asked his prosecutors if there was enough evidence to make a case against the donor, Hassan Nemazee. One of the prosecutors, Daniel W. Levy, who is now in private practice, would recall years later that he had told Mr. Bharara that there had been a wide-reaching bank fraud.

“Then take him,” Mr. Bharara said.

That case — one of his very first as the top federal prosecutor in Manhattan — foreshadowed a theme that Mr. Bharara harped on throughout his tenure pursuing a host of public corruption, terrorism, civil rights and Wall Street cases: Politics and prosecution do not mix. [Continue reading…]

Facebooktwittermail

Mike Flynn and Trump administration defined by conflicts of interest

The Washington Post reports: Attorneys for Michael Flynn, President Trump’s former national security adviser, informed the incoming White House legal counsel during the transition that Flynn might need to register with the government as a foreign agent — a phone call that raised no alarms within Trump’s team, despite the unusual circumstance of having a top national security post filled by someone whose work may have benefited a foreign government.

The firm Flynn headed, Flynn Intel Group, was hired last year when Flynn was an adviser to the Trump campaign by the Netherlands-based firm ­Inovo BV, which is owned by Turkish businessman Ekim Alptekin. Alptekin has close ties to Turkish President Recep Tay­yip Erdogan. [Continue reading…]

The Daily Caller reports: While serving as a top adviser on Donald Trump’s presidential campaign, Michael Flynn signed a contract in which he agreed to utilize an “investigative laboratory” made up of elite former intelligence officials, including a former CIA director, to conduct research and make “criminal referrals” on behalf of a Dutch shell company linked to the Turkish government, federal records show.

But Flynn appears to have over-promised on the contract, which was signed on Aug. 9 between his firm, Flynn Intel Group, and Inovo BV, the shell company.

R. James Woolsey, the former CIA director identified by his title in the contract as a member of Flynn Intel’s “investigative laboratory,” says he was not aware of and never agreed to perform any of the work laid out in the contract.

The investigative work promised by Flynn Intel was most likely focused on Fethullah Gulen, a Muslim cleric exiled in the U.S. whose extradition is being sought by the Turkish government. [Continue reading…]

Facebooktwittermail

Trump’s Panama problem

Anna Lenzer writes: It was a big moment for Donald Trump.

On July 6, 2011, the future president was beaming as he celebrated the opening of his first international real-estate deal, the Ocean Club in Panama City, Panama. The flashy hotel-condo complex featured a 72-story tower that transformed the skyline of the city with its sail-shaped design. After a ceremony featuring dancers in traditional Panamanian dress, Trump stood at a podium, flanked by his two oldest sons, Don Jr. and Eric, paused during his remarks, gently leaned over and offered a special thanks to Ricardo Martinelli, the president of Panama.“You’re my friend. Great honor.”

Standing next to Trump’s children, Martinelli smiled back. The white-haired, stocky president was flattered, proud of the fact that the complex had the potential to transform his small country into a destination for the rich and famous. As they both delivered their remarks that afternoon, the sky broke open and a torrential rain flooded the streets, turning the peninsula on which the complex stood into a “swamp island.” Trump and Martinelli had to ride out through the flooded streets in their separate chauffeured SUVs.

More than five years later, Trump has taken over the Oval Office and Martinelli is a fugitive from justice wanted on multiple corruption charges and investigations, ranging from allegedly helping to embezzle $45 million from a government school lunch program to insider trading to using public funds to spy on more than 150 political opponents, lawyers, doctors, and activists. But their paths could intertwine again very soon in what may be a thorny dilemma for the Trump administration. At the end of September, Panama’s Supreme Court asked the United States to extradite Martinelli, who left office in 2014 and now lives in exile in a luxury waterfront condo in Miami.

While the United States has codified policies to deny visas to foreign officials facing criminal charges in their home countries, and Trump’s recent executive order on immigration enforcement targets for removal individuals with even unresolved criminal charges, Martinelli entered the U.S. in 2015 on a visitor visa as the criminal investigations around him and his inner circle were tightening and has reportedly remained since.

Before fleeing Panama, Martinelli sat on the board of a bank that became the co-trustee for the Ocean Club, a role that left it in charge of managing funds coming in from rentals and sales, and of disbursing money to Trump, who gets millions in fees from the project. The Ocean Club has been Trump’s largest individual source of branding fees, reports the Economist, earning Trump “at least $50 million on the project on virtually zero investment,” reported the Washington Post in January.

Now, the extradition request highlights the potential conflicts of interest that have swirled around Trump: A decision that is usually made on the merits by career diplomats could be complicated by the president’s personal and business ties to Panama. Officials at the State Department could be inclined to approve the extradition, mindful of not antagonizing the current government of Panama, which exerts plenty of influence over the fate of a development that makes millions for the president’s family — or to decline the request out of their awareness of Martinelli’s support for the Ocean Club and his admiration and kind words for Trump. [Continue reading…]

Facebooktwittermail