Posted: August 11, 2018 Filed under: Afternoon Reads, U.S. Politics | Tags: American institutions, corruption, Donald Trump, Emails, Hillary Clinton, Julia Davis, Matt Tait, Michael Flynn, Paul Manafort, Peter Smith, Robert Mueller, Russia investigation, Russian state TV, Suicide, Vitaly Tretyakov
The Athenaeum – Thérèse Reading in the Park at Meric (Jean Frederic Bazille)
Remember Peter Smith, the guy who was trying to help the Trump campaign get Hillary Clinton’s emails? He ended up supposedly committing suicide in a Minnesota hotel room in July, 2017, shortly after he was interviewed by Shane Harris of The Wall Street Journal. After the story broke, Matt Tait published an article at Lawfare about his involvement in the story. Today Buzzfeed News reporters Jason Leopold and Anthony Cormier have a new story on Smith: GOP Operative Made “Suspicious” Cash Withdrawals During Pursuit Of Clinton Emails.
In one of the most intriguing episodes of the 2016 presidential campaign, Republican activist Peter W. Smith launched an independent effort to obtain Hillary Clinton’s emails to help defeat her and elect Donald Trump. His quest, which reportedly brought him into contact with at least two sets of hackers that he himself believed were Russian, remains a key focus of investigations into whether the Trump campaign colluded with the Kremlin.
Now, BuzzFeed News has reviewed documents showing that FBI agents and congressional investigators have zeroed in on transactions Smith made right as his effort to procure Clinton’s emails heated up. Just a day after he finished a report suggesting he was working with Trump campaign officials, for example, he transferred $9,500 from an account he had set up to fund the email project to his personal account, later taking out more than $4,900 in cash. According to a person with direct knowledge of Smith’s project, the Republican operative stated that he was prepared to pay hackers “many thousands of dollars” for Clinton’s emails — and ultimately did so….
The money trail, made public here for the first time, sheds new light on Smith’s effort, in which he told people he was in touch with both Russians on the dark web and Trump campaign officials — particularly Michael Flynn, who was then a top adviser to the Trump campaign and later served as national security adviser before having to resign after misleading White House officials about his meetings with the Russian ambassador to the United States.
Intelligence agencies have given the FBI information that Russian hackers talked about passing Clinton’s emails to Flynn through a cutout, according to two law enforcement officials with direct knowledge of the matter. It is not known if that cutout was in any way connected to Smith.
Smith claimed that the Russians had hacked Hillary’s private server and he was determined to get his hands on the emails.
Smith assembled a group of people including experts in technology, lawyers, and even a Russian-speaking investigator to figure out how to obtain Clinton’s emails, according to the Journal. On the Friday before the Labor Day weekend, Smith incorporated a company called KLS Research. In a proposal Smith put together describing the effort to obtain the emails, he named the company as the “preferred vehicle” for the research into Clinton’s email, and Smith would tell Tait that KLS Research would also help “avoid campaign reporting.”
Smith and his longtime business partner, John Szobocsan, were the two signers for a bank account linked to KLS Research….
Soon after Labor Day, Smith appears to have finished an operational plan, which included the names of top Trump campaign officials, some of whom have denied speaking with Smith anytime during the campaign. Smith’s report is dated Sept. 7.
Girl in Green by Sara Hayden (1862–1939), American
The next day, Smith withdrew $9,500 from the KLS Research account and deposited it into his personal bank account, both held at Northern Trust. From there, Smith took out a little more than $4,900 in cash and sent checks to an accountant and an LLC controlled by a private real estate company. Later in September, Smith made withdrawals of $500 and $700 from KLS Research.
These transactions came to light after Northern Trust received a subpoena from the FBI for Smith’s records last December. The subpoena specifically sought information about the $9,500 withdrawal from KLS Research’s account.
After scouring nine accounts that Smith controlled, Northern Trust turned over documents showing 88 suspicious cash withdrawals totaling about $140,000 between January 2016 and April 2017, including a $3,000 withdrawal six days after the election. Northern Trust found these transactions suspicious because officials could not determine the purpose of the withdrawals and because some of them took place over the time Smith was engaged in his project to obtain Clinton’s emails. Many of the cash transactions, the bank noted, were less than $10,000, small enough not to trigger an automatic alert to the government. After receiving the subpoena, the bank sent a report to Treasury’s financial crimes unit, which shared its findings with the FBI, special counsel Robert Mueller, and Senate Intelligence Committee investigators.
The story reports that “three US law enforcement officials” confirmed that Smith is still “an important figure” in the investigation and that Mueller’s investigators have interviewed people involved with Smith. I wonder if Mike Flynn is helping out with this aspect of the investigation?
Head over to Buzzfeed News to read the rest of the story.
Lawfare has a lengthy post up about the Buzzfeed story: Peter Smith’s Search for Hillary Clinton’s Emails: The Subplot Thickens. Here’s just a taste:
On its own, the Buzzfeed story might not be a groundbreaking development. But the article doesn’t stand alone. It comes in the wake of Mueller’s indictments of Russians involved in the Kremlin’s social media manipulation operation and, more importantly for present purposes, the hacking and leaking of Democratic Party materials during the 2016 campaign. In that context, it is highly significant that Buzzfeed reports that Smith’s efforts are actively being investigated by the special counsel’s team. Not only has Mueller’s team interviewed “people who Smith tried to recruit and others who worked on his operation to obtain Clinton’s emails,” it has also “tried to determine if [former national security adviser Michael] Flynn assisted Smith in his operation”—a question that Smith’s possible payments to hackers are “key” to answering, Buzzfeed writes.
Louis Buisseret (1888-1956, Belgian) Contemplation 1938
So how do the facts reported in the Peter Smith stories, particularly Buzzfeed’s latest, line up with Mueller’s indictments? Mueller’s allegations describe, in detail, a complex Russian conspiracy to shape the 2016 U.S. elections—a conspiracy that involved an influence operation conducted on social media, the publication of hacked information, and outreach to a person in contact with the Trump campaign, reportedly Roger Stone.
The Peter Smith stories—between the Journal’s reporting, Tait’s Lawfare account and the latest report from Buzzfeed—describe another plot, one that took shape on this side of the Atlantic. Whether this second plot amounts to a conspiracy is a legal question beyond the scope of this post, but it appears to have involved, at a minimum, an agreement among a number of actors to obtain illegally hacked emails, perhaps by buying them. Tait wrote that he specifically warned Smith that the person purporting to have Clinton’s emails was likely part of Russia’s campaign against the United States and that Smith didn’t care about the source, as long as he got the emails. So it’s certainly plausible that the Smith operation also involved a conspiracy of some sort.
Meanwhile, Russian state TV is getting more and more blatant about Putin’s influence on Trump. Raw Story: Russian state TV warns Trump to ‘do what we say’ if you want ‘support in the elections.’
Julia Davis, who runs the Russian Media Monitor website, reports via Twitter that news show “60 Minutes” this week held a panel discussion about actions Russia should take to retaliate against the latest round of American sanctions.
Vitaly Tretyakov, the dean of the Moscow State University’s School of Television, argued that the Russian government should use whatever leverage it had over Trump to bend the president to its will.
“Let’s turn this into a headache for Trump,” he said, according to Davis’ translation. “If you want us to support you in the elections, do what we say.”
At The Washington Post, Anne Applebaum asks if American institutions are really strong enough to stop Trump: Are you still sure there’s no need to worry?
William Moore Davis (1829 – 1920, American)
“Don’t worry, the institutions will stop him.” Or: “Don’t worry, he hasn’t done any real damage yet, the institutions have stopped him.” How many times have you heard some version of this analysis since the election of President Trump? Sometimes, the speaker is an optimist, someone with faith in the U.S. Constitution. Sometimes, the speaker is a skeptic, someone who dislikes the alleged “hysteria” of those who think Trump’s corrupt habits, autocratic language and authoritarian behavior are doing lasting damage. Either way, they are reassured, and reassuring: Congress will stop him. The judiciary will stop him. The FBI, the Republican Party, the Constitution will stop him. Don’t worry.
But America’s federal institutions are not the only ones designed to prevent someone like Trump from undermining the Constitution. We have other kinds of institutions, too — legal organs, regulatory bodies, banks — that are supposed to prevent men like Trump from staying in business, let alone acquiring political power. The truth is that many of these equally important American institutions failed a long time ago. Trump is not the cause of their failure. He is the result.
One example: Paul Manafort.
Here is a man who is alleged to have declared income as “loans,” concealed foreign bank accounts and lied about money that Ukrainian oligarchs were paying him via shell companies in Cyprus. For decades, in other words, U.S. law enforcement institutions were unable to spot the money-laundering, tax evasion and fraud that his partner Rick Gates spent several hours describing, even when carried out by a prominent person. As long ago as 1985, Manafort’s name featured in Jacob Weisberg’s still-famous New Republic cover story about Roger Stone, then his consulting partner. The headline: “The State-of-the-Art Washington Sleazeball.”
Summer (c.1958). Donald Moodie (British, 1892-1963)
For decades, Manafort’s “political consultancy” has helped crooks and autocrats retain power. But even leaving aside the question of morality: Why wasn’t Manafort put out of business for suspected fraud years ago? Did the police not have the resources? The motivation? Whatever the reason, here, for the optimists and skeptics, is a clear institutional failure: A society allegedly obsessed with “law and order,” so much so that it has the highest incarceration rates in the world, couldn’t be bothered to investigate a famously sleazy man who was spending hundreds of thousands of dollars on antique rugs and men’s suits in Northern Virginia.
And what about Trump’s career?
Nearly 40 years ago, in 1980, Trump employed 200 illegal Polish workers to destroy the Bonwit Teller department store, a historic building on Fifth Avenue, to make way for what would become Trump Tower. The men earned half the union wage and worked 12-hour shifts without hard hats; at one point, their contractor stopped paying them. Eventually they sued. In 1998, Trump paid $1.375 million to settle the case.
Trump broke immigration law and employment law, and he violated union rules, too. Yet neither immigration authorities nor employment regulators nor union bosses put him out of business. Why not? Why were the terms of that settlement kept confidential? Why, with his track record, was he allowed to get a casino license? Building permits? Wall Street banks did, it is true, stop lending to him. But when he began looking abroad for cash — doing extremely dodgy deals in Georgia and Azerbaijan, for example — no one stopped him.
Read the whole thing at the Post.
What else is happening? What stories are you following?
Posted: May 15, 2018 Filed under: Afternoon Reads, U.S. Politics | Tags: Ahmed Al-Rumaihi, Ayman Sabi, China, Donald Trump, Ice Cube, Jed Shugarman, Jeff Kwatinetz, Michael Avenatti, Michael Cohen, Michael Flynn, Qatari Foreign Minister Mohammed bin Abdulrahman al-Thani, Quatar, Robert Mueller, Rosneft deal, Steele Dossier, Trump Russia investigation, Xi Jinping, ZTE
The corruption is right out in the open now. American foreign policy is for sale to highest bidder. On Sunday Trump posted a startling tweet:
EuroNews: Trump tells Commerce Department to help Chinese telecom ZTE.
President Donald Trump said Sunday he has instructed his Commerce Department to help get a Chinese telecommunications company “back into business” after the U.S. government cut off access to its American suppliers.
At issue is that department’s move last month to block the ZTE Corp., a major supplier of telecoms networks and smartphones based in southern China, from importing American components for seven years. The U.S. accused ZTE of misleading American regulators after it settled charges of violating sanctions against North Korea and Iran….
ZTE has asked the department to suspend the seven-year ban on doing business with U.S. technology exporters. By cutting off access to U.S. suppliers of essential components such as microchips, the ban threatens ZTE’s existence, the company has said.
Trump with Chinese president Xi Jinping during China trip
During recent trade meetings in Beijing, Chinese officials said they raised their objections to ZTE’s punishment with the American delegation, which they said agreed to report them to Trump.
The U.S. imposed the penalty after discovering that Shenzhen-based ZTE, which had paid a $1.2 billion fine in the case, had failed to discipline employees involved and paid them bonuses instead.
Why is Trump suddenly so concerned about Chinese jobs? It’s not about U.S. national security; it’s about Trump’s business. HuffPost: Trump Orders Help For Chinese Phone-Maker After China Approves Money For Trump Project.
A mere 72 hours after the Chinese government agreed to put a half-billion dollars into an Indonesian project that will personally enrich Donald Trump, the president ordered a bailout for a Chinese-government-owned cellphone maker….
…on Thursday, the developer of a theme park resort outside of Jakarta had signed a deal to receive as much as $500 million in Chinese government loans, as well as another $500 million from Chinese banks. Trump’s family business, the Trump Organization, has a deal to license the Trump name to the resort, which includes a golf course and hotels.
Trump and family with Indonesian business partners
Trump, despite his promises to do so during the campaign, has not divested himself of his businesses, and continues to profit from them.
“You do a good deal for him, he does a good deal for you. Quid pro quo,” said Richard Painter, the White House ethics lawyer for former President George W. Bush and now a Democratic candidate for Senate in Minnesota.
It sure does look like a quid pro quo, doesn’t it? Or is it just that Trump is a bad deal-maker? We can’t be sure because Trump chose to maintain control of his businesses and refuses to release his tax returns. Read more about Trump’s Indonesia project at the South China Morning Post: Trump Indonesia project is latest stop on China’s Belt and Road.
Gordon Chang at the Daily Beast: Trump Cuts a Great Deal—For China.
The White House looks like it is prepared to give relief to ZTE Corp., the embattled Chinese telecom-equipment maker, in exchange for Beijing lifting tariffs on, and easing non-tariff barriers against, U.S. agricultural products. Moreover, China’s Commerce Department will restart its long-stalled review of Qualcomm’s proposed acquisition of NXP Semiconductors, the Dutch firm.
In addition, The Daily Beast has learned there will be either no penalties or only light ones imposed on China for stealing U.S. intellectual property.
This is a great deal—for China. China gets relief for ZTE for doing nothing more than what it should have been doing all along. And its massive theft of U.S. technology and intellectual property—undoubtedly in the hundreds of billions of dollars a year—goes mostly unpunished.
If the reports of the outlines of the impending agreement are correct, the Trump administration, which prides itself on deal-making, will have accepted one of the worst trade arrangements this century.
Josh Rogin at The Washington Post: China gave Trump a list of crazy demands, and he caved to one of them.
After top Trump officials went to Beijing last month, the Chinese government wrote up a document with a list of economic and trade demands that ranged from the reasonable to the ridiculous. On Sunday, President Trump caved to one of those demands before the next round of negotiations even starts, undermining his own objectives for no visible gain.
The Chinese proposal is entitled, “Framework Arrangement on Promoting Balanced Development on Bilateral Trade,” and I obtained an English version of the document, which is the Chinese government’s negotiating position heading into the next round of talks. That round begins this week when Xi Jinping’s special economic envoy Liu He returns to town.
Bullet point 5 is entitled, “Appropriately handing the ZTE case to secure global supply chain.”
So Trump agreed to reverse US policy, but was it really about rewarding China for funding the Trump project in Indonesia? I’d say that’s pretty likely, wouldn’t you?
Trump took a big step in that direction Sunday when he tweeted that he had instructed the Commerce Department to help get ZTE “back into business, fast,” only weeks after the Commerce Department cut off its supply of American components because it violated U.S. sanctions on sales to North Korea and Iran. Trump’s tweet set off a panic both inside and outside the administration among those who worry that Trump is backing down from his key campaign promise to stand up to China’s unfair trade practices and economic aggression.
As Sen. Marco Rubio (R-Fla.) pointed out Monday, the problems with ZTE go well beyond sanctions-busting. The Federal Communications Commission has proposed cutting ZTE and other Chinese “national champion” companies off from U.S. infrastructure development funds because the U.S. intelligence community views their technology as a national security risk.
Guess what folks? Trump doesn’t give a shit about U.S. national security. He cares about money for himself. Period.
Michael Avenatti has had a busy past few days, and I’ve been following the revelations pretty closely. On Sunday Avenatti posted some stills from a C-Span video of Trump Tower during the transition.
Later, he revealed that a Quatari official apparently met with Michael Cohen and Michael Flynn on Dec. 12, 2016.
Mother Jones: Qatari Investor Accused in Bribery Plot Appears With Michael Cohen in Picture Posted by Stormy Daniels’ Lawyer.
Members of the Trump transition team appear to have met on December 12, 2016, with a group from Qatar that included Ahmed Al-Rumaihi, the former Qatari diplomat and current head of a division of Qatar’s massive sovereign wealth fund, who is accused in a recent lawsuit of scheming to bribe Trump administration officials.
On the lawsuit:
Ice Cube, the rapper and actor, and his business partner, Jeff Kwatinetz, recently filed a $1.2 billion lawsuit that includes an allegation that Al-Rumaihi and other Qatari officials who invested in the men’s BIG3 basketball league indicated interest in gaining access to people connected to Trump. “Mr Al-Rumaihi requested I set up a meeting between him, the Qatari government, and Stephen Bannon, and to tell Steve Bannon that Qatar would underwrite all of his political efforts in return for his support,” Kwatinetz said in the court filing. Kwatinetz says he rejected the offer, which he viewed as a bribe.
In response, Kwatinetz claims, “Al-Rumaihi laughed and then stated to me Buthat I shouldn’t be naive, that so many Washington politicians take our money, and stated ‘do you think Flynn turned down our money?’” That’s a reference to Michael Flynn, who was fired as Trump’s national security adviser after lying about his contacts with then Russian Ambassador Sergey Kislyak.
But it appears that other Quatari officials were also in the Dec. 12, 2016 meeting, according to knowledgeable people on Twitter.
Here’s the Wikipedia article on Quatari the foreign minister.
And a third person from Quatar who is also involved in the lawsuit filed by Ice Cube and Kwatinetz was also present.
What the hell is going on? A couple of useful reads:
Slate: Michael Cohen’s Meetings With Michael Flynn and a Qatari Diplomat Might Be the Key to Unlocking the Steele Dossier.
The founder of a three-on-three basketball league who claims he was offered a bribe by a one-time Qatari diplomat to arrange access to Steve Bannon said on Monday that the former diplomat is the same person photographed with Michael Cohen at Trump Tower in December 2016.
Big 3 basketball league co-founder Jeff Kwatinetz told Slate that he recognized Ahmed Al-Rumaihi in photos with Cohen that were tweeted Sunday by attorney Michael Avenatti.
“Yes, 100 percent,” Kwatinetz said when asked if he thought the videos and photos were of Ahmed Al-Rumaihi. Last week, Kwatinetz, who is a co-founder of Big 3 with Ice Cube, accused Al-Rumaihi in a sworn court declaration of making an attempted bribe and of suggestively boasting that Flynn had not refused “our money.” [….]
[Michael] Avenatti tweeted the images that appeared to show Al-Rumaihi entering an elevator in Trump Tower on Dec. 12, 2016, five days after news broke of the multibillion-dollar sale of 19.5 percent of the Russian fossil fuel giant Rosneft to Swiss trading firm Glencore and Qatar’s sovereign investment fund. (Glencore and Qatar sold off a major stake of Rosneft to China last year, but earlier this month Qatar bought back in to the Russian company for a total stake of 19 percent.)
The Rosneft deal features prominently in an investigative dossier compiled by former British spy Christopher Steele. A central claim of the Steele dossier was that Trump foreign policy adviser Carter Page, during an alleged meeting with Rosneft officials in summer 2016, promised that a Trump administration would undo sanctions against Russia, in part, in exchange for brokerage of the Rosneft deal. In May 2016, Al-Rumaihi reportedly took over as head of a major division of the wealth fund ultimately involved in the Rosneft deal.
The allegations in the Steele dossier, made in October 2016, suggested a future quid-pro-quo deal between Russia and the Trump campaign. Trump has been conspicuously resistant to Russian sanctions despite widespread congressional support from both parties. As Jed Shugerman has noted in Slate, during congressional testimony Page acknowledged meeting with Andrey Baranov, the head of investor relations at Rosneft, during his July 2016 trip to Russia and acknowledged “briefly” discussing the sale of Rosneft as well as there being “some general reference” to sanctions. As Business Insider’s Natasha Bertrand has reported, Page also acknowledged meeting with top Rosneft managers in Moscow on Dec. 8—four days before the apparent Cohen–Al-Rumaihi meeting and one day after the completion of the Rosneft deal.
Jed Shugarman has posted a detailed Russia/Qatar/Trump Timeline in a Google doc that will be updated with new information. On his blog, Shugarman posted this introduction to the timeline:
I have produced a Google Doc timeline, based on publicly available reports and documents, of the alleged bribery scheme between Russia and Trump associates, possibly through Qatar’s purchase of Rosneft….
Russia’s sale of Rosneft Gas is the key event in the Steele Dossier’s quid pro quo allegation. On June 2016, Russians allegedly offer Trump associates a massive payout derived from the commissions on Russia’s sale of 19.5% of state energy giant Rosneft ($11 billion), in return for lifting sanctions. Weeks after the election, Flynn and Kushner are in contact with Russian officials. Then Russia sells a 19.5% stake in Rosneft in a concealed deal, eventually revealed to be with Qatar. Immediately after the deal, a Qatari diplomat allegedly met with Cohen and Flynn at Trump Tower.
In January 2017, payments from Russian oligarch to Michael Cohen begin, and Flynn reportedly texts associates that Trump will lift Russian sanctions, opening up huge personal profits. But around this time, the Dossier is published. Kushner sought money directly from Qatar, because it is possible that Qatar was backing off of the deal, wary of its exposure. In April 2017, Kushner reportedly escalated a Gulf state crisis between Saudi Arabia, UAE, and Qatar with a risk of regional war. A few months later, the Qatar-backed Apollo Group delivers $184 million to Kushner, who has been in financial crisis over a disastrous purchase of 666 5th Ave.
Remember, Robert Mueller and his investigators have likely known all this for a long time and they probably know many more details. Michael Flynn has been cooperating for months, and indictments involving Michael Cohen are very likely in the works.
What stories are you following today?
Posted: March 29, 2018 Filed under: Afternoon Reads, U.S. Politics | Tags: China, corruption, David Shulkin, Donald Trump, Ivanka Trump, Jared Kushner, John Bolton, John Dowd, Kim John Un, Latvia, Michael Flynn, North Korea, Paul Manafort, presidential pardons, privatization, Robert Mueller, Russia investigation, U.S. Constitution, Veterans Affairs
As usual in the horrifying new world of Trump, there is so much shocking news that there’s no way to deal with all of it. I guess the top story has to be that Trump’s former lawyer John Dowd dangled pardons in front of Michael Flynn and Paul Manifort last summer.
The New York Times: Trump’s Lawyer Raised Prospect of Pardons for Flynn and Manafort.
A lawyer for President Trump broached the idea of Mr. Trump’s pardoning two of his former top advisers, Michael T. Flynn and Paul Manafort, with their lawyers last year, according to three people with knowledge of the discussions.
The discussions came as the special counsel was building cases against both men, and they raise questions about whether the lawyer, John Dowd, who resigned last week, was offering pardons to influence their decisions about whether to plead guilty and cooperate in the investigation.
The talks suggest that Mr. Trump’s lawyers were concerned about what Mr. Flynn and Mr. Manafort might reveal were they to cut a deal with the special counsel, Robert S. Mueller III, in exchange for leniency. Mr. Mueller’s team could investigate the prospect that Mr. Dowd made pardon offers to thwart the inquiry, although legal experts are divided about whether such offers might constitute obstruction of justice.
Mr. Dowd’s conversation with Mr. Flynn’s lawyer, Robert K. Kelner, occurred sometime after Mr. Dowd took over last summer as the president’s personal lawyer, at a time when a grand jury was hearing evidence against Mr. Flynn on a range of potential crimes.
Flynn ultimately took the safe route and agreed to cooperate with the Mueller investigation; but this could explain why Paul Manafort is holding out even though the evidence against him is overwhelming and he could face life in prison if convicted.
Cary Grant, 1960
Constitutional experts are now discussing whether Trump could get away with pardoning Manafort and others, even if he did it with corrupt intent. Some opinions:
Alex Whiting at Just Security: Why Dangling a Pardon Could Be an Obstruction of Justice—Even if the Pardon Power is Absolute. A brief excerpt:
Some experts have argued that the pardon power is absolute and that the President’s motives in issuing a pardon thus could not be questioned, while others contend that it could be a crime to issue a pardon for corrupt purposes (such as in exchange for cash). But the debate over the absolute nature of the pardon power is actually not relevant to the alleged incidents involving Trump’s lawyer. Indeed, that entire debate can be set aside for the moment. Why? Because there’s been no pardon. Instead, a pardon has only been dangled before Flynn and Manafort, and the analysis of whether that action could become part of an obstruction case against Trump raises entirely different considerations….
The pardon dangle works completely differently—and in important respects has the opposite effects. First, this kind of dangle is not a public act. Therefore, as long as it remained secret, it could be done without incurring any of the political downstream consequences that come with actually pardoning someone. It hides the President from scrutiny rather than exposes him to it as a potential check on the use of the power. Second, the objective of the dangle appears to have been to foreclose the prospect of Flynn and Manfort’s cooperating or testifying. Once again, this is the opposite effect of an actual exercise of the pardon. The message of the dangle was sufficiently clear: hang in there and keep fighting (do not cut a deal with the special counsel) because you will be pardoned before you spend a day in jail. The President and his lawyer’s hope would have been that with the threat of jail eliminated, neither former aid would feel compelled to plead guilty and cooperate with Mueller to reduce his sentence. But, since they were not actually pardoned or not yet anyway, they still kept their Fifth Amendment privileges, and so Mueller could not simply demand they testify before the Grand Jury. In this way, the dangle could operate to stop any cooperation from Flynn and Manafort, who could then be pardoned later if and when they were indicted or even after their cases went through pretrial, trial and appeal. Indeed, you also have to put yourself back at the time these events all took place: before Manafort was indicted and Flynn pleaded guilty. That’s when the dangle could work its magic.
Because a pardon dangle is secret and seeks to discourage cooperation with an ongoing investigation without public scrutiny or consequences, it should be analyzed differently than a pardon when it comes to an obstruction case.
Former U.S. Attorney Harry Littman at The Washington Post: We may know why Paul Manafort has kept quiet. But his bet is still risky.
Manafort’s refusal to cooperate can’t be driven by a rational calculation that he has any reasonable chance of escaping conviction, multimillion-dollar legal fees and a prison sentence that will result in years behind bars.
The indictments against him lay out an overwhelming case of money laundering in particular. The meticulously gathered evidence will be as clear for the jury as a laundry detergent commercial: The jury will see the dirty money go in and the clean money come out. To the extent there had been a small risk, inherent in paper-driven chases, that the jury could become bored at the accounting presentation and tune out, Mueller now has a narrator for the trial in Manafort’s co-conspirator Rick Gates.
So is hoping for a Trump pardon a good bet for Manafort?
…the Times story does not definitively solve the Manafort mystery. First, Dowd’s reported overture, particularly if done with the president’s knowledge or consent, could have constituted a conspiracy to obstruct justice, a separate impeachable offense. That presumably is why the story includes a categorical denial from Dowd that he ever discussed pardons for the president’s former advisers with lawyers. For Dowd, the conduct would be putting his license at risk.
Second, Manafort surely recognizes that he can’t fully count on Trump, both because the president is a habitual liar and because the political dynamic is subject to such extreme and violent turns. (Of course, under this hypothesis, Manafort retains the valuable insurance policy of spilling the goods if Trump double-crosses him, leaving both huge losers in a real-life prisoners dilemma.)
Third, Manafort could still be required to testify after any pardon, when he would no longer be in federal jeopardy. Undoubtedly, the plan would be for him to deny assurances of a pardon from Trump. Still, were Mueller to catch him in a lie, the special counsel would surely come down on him.
Finally, it is likely that in the event of a pardon for federal crimes, which is all Trump can provide, some state attorneys general, such as New York’s Eric T. Schneiderman, would prosecute Manafort for financial crimes under their potent state statutes.
Maybe Manafort figures a possible pardon is a better bet than hoping Putin doesn’t send his goons to shut him (Manafort) up for good.
A few more pardon stories:
Bloomberg: Pardon Talk Could Put Trump Lawyer in Hot Water.
CNN: Emails reveal DOJ would have ‘very little involvement’ if Trump tweeted a pardon.
The Washington Post: This overlooked part of the Constitution could stop Trump from abusing his pardon power.
Another big story broke late yesterday. Trump fired Veterans Affairs Secretary David Shulkin. Today Shulkin is speaking out, claiming he was fired because he opposed privatizing the VA. Shulkin spoke to NPR’s Morning Edition:
Fired Veterans Affairs Secretary David Shulkin tells NPR’s Morning Edition that political forces in the Trump administration want to privatize the VA — and that he was standing in the way.
“There are many political appointees in the VA that believe that we are moving in the wrong direction or weren’t moving fast enough toward privatizing the VA,” he said. “I think that it’s essential for national security and for the country that we honor our commitment by having a strong VA. I was not against reforming VA, but I was against privatization.”
Those political forces may be why Shulkin says he wasn’t allowed to speak out to defend himself against an ethics controversy over use of funds on a trip to Europe that he says was overhyped and intended to weaken him.
“This was completely mischaracterized,” Shulkin said. “There was nothing improper about this trip, and I was not allowed to put up an official statement or to even respond to this by the White House. … I think this was really just being used in a political context to try to make sure that I wasn’t as effective as a leader moving forward.”
Shulkin argued his case in an op-ed at The New York Times: David J. Shulkin: Privatizing the V.A. Will Hurt Veterans.
That’s a lot of news, but I’ve barely touched on everything that’s happening. Here’s a shocking Trump corruption story that broke at The Guardian this morning: FBI looked into Trump plans to build hotel in Latvia with Putin supporter.
In 2010, a small group of businessmen including a wealthy Russian supporter of Vladimir Putin began working on plans to build a glitzy hotel and entertainment complex with Donald Trump in Riga, the capital of Latvia.
A senior Trump executive visited the city to scout for locations. Trump and his daughter Ivanka spent hours at Trump Tower with the Russian, Igor Krutoy, who also knows compatriots involved in arranging a fateful meeting at the same building during the 2016 US election campaign.
Then the Latvian government’s anti-corruption bureau began asking questions.
The Guardian has learned that talks with Trump’s company were abandoned after Krutoy and another of the businessmen were questioned by Latvian authorities as part of a major criminal inquiry there – and that the FBI later looked into Trump’s interactions with them at Latvia’s request.
Those involved deny that the inquiry was to blame for the deal’s collapse.
Latvia asked the US for assistance in 2014 and received a response from the FBI the following year, according to a source familiar with the process. Latvian investigators also examined secret recordings in which Trump was mentioned by a suspect.
This means the FBI looked into Trump’s efforts to do business deals in the former Soviet Union earlier than was widely known. Robert Mueller, the special counsel, is now investigating other Trump dealings with Russians as part of his wide-ranging criminal inquiry into alleged collusion between Moscow and members of Trump’s 2016 campaign team.
The Riga developers saw their potential partner in New York as a ticket to lucrative western revenues.
This shit just never ends. I haven’t even touched on the North Korea news or the Bolton mess or the fact that Trump wants to put his personal physician in charge of the VA. More headlines to check out:
The Washington Post: Who is Trump’s new Veterans Affairs pick, Ronny Jackson?
NBC News: Kim Jong Un met China’s Xi. What does it mean for Trump summit?
CNBC: China says North Korea wants denuclearization, but Kim Jong Un’s motives remain shrouded in mystery as Trump meeting approaches.
The Washington Post: Three big questions about a Trump-Kim summit.
Business Insider: Kim Jong Un became a regional power overnight by saying a single, meaningless word to Trump.
Vox: “Otherwise, they subpoena”: White House lawyer Ty Cobb on why Trump is cooperating with Mueller.
Bloomberg: Kelly Loses White House Clout as Trump Blazes Own Path.
CNN: Did Trump campaign and John Bolton PAC get help from overseas?
Talking Points Memo: WSJ: Kushner Has Phoned Bolton For Advice In The Past Year.
BBC News: Julian Assange has internet cut at Ecuadorean embassy in London.
The Daily Beast: ICE Now Detaining Pregnant Women, Thanks to Trump Order.
Slate: It’s Time to Stop Yammering About Liberal Bias.
Posted: November 10, 2017 Filed under: Foreign Affairs, morning reads, U.S. Politics | Tags: Andrew Fastow, Andrew Weissmann, Chinese president Xi Jinping, Donald Trump, Enron, Fethullah Gulen, George Papadopoulos, James Woolsey, Japanese prime minister Shinzo Abe, Keith Schiller, Michael Flynn, Michael Flynn Jr., Miss Universe Pageant Moscow 2013, Robert Mueller, Russia investigation, Russian trolls, Turkey, Twitter, Vladimir Putin
The Wall Street Journal has a story on Michael Flynn’s plot to kidnap Turkish cleric Fethullah Gulen and “deliver” him to a Turkish prison. We knew about this plan, but the WSJ provides more details. The article is behind the paywall, but I go access by clicking on Twitter link.
Special Counsel Robert Mueller is investigating an alleged plan involving former White House National Security Adviser Mike Flynn to forcibly remove a Muslim cleric living in the U.S. and deliver him to Turkey in return for millions of dollars, according to people familiar with the investigation.
Under the alleged proposal, Mr. Flynn and his son, Michael Flynn Jr., were to be paid as much as $15 million for delivering Fethullah Gulen to the Turkish government, according to people with knowledge of discussions Mr. Flynn had with Turkish representatives. President Recep Tayyip Erdogan, who has pressed the U.S. to extradite him, views the cleric as a political enemy.
Federal Bureau of Investigation agents have asked at least four individuals about a meeting in mid-December at the ‘21’ Club in New York City, where Mr. Flynn and representatives of the Turkish government discussed removing Mr. Gulen, according to people with knowledge of the FBI’s inquiries. The discussions allegedly involved the possibility of transporting Mr. Gulen on a private jet to the Turkish prison island of Imrali, according to one of the people who has spoken to the FBI….
The people who described the alleged proposal said they didn’t attend the December meeting and didn’t have direct knowledge from Mr. Flynn or his associates about its purported details. It isn’t clear how advanced Mr. Mueller’s investigation of the alleged plan to remove Mr. Gulen is, nor is there any indication that any money changed hands, according to those familiar with the discussions and the FBI investigation.
But federal investigators’ interest in whether Mr. Flynn was pursuing potentially illegal means to forcibly deal with Mr. Gulen indicates that the former Trump adviser faces another investigation stemming from his work on behalf of Turkish government interests, both before and after the presidential election.
One more interesting bit:
One person familiar with the alleged discussions about Mr. Gulen said Mr. Flynn also was prepared to use his influence in the White House to further the legal extradition of the cleric, who lives in Pennsylvania.
According to the WSJ, there were two meetings to discuss the kidnapping. The second one was attended by former former CIA Director James Woolsey, who was concerned enough to tell then Vice President Joe Biden about it. It seems both Mike Flynns are in serious trouble.
Randall D. Eliason of George Washington University Law School writes at The Washington Post: How Robert Mueller can play hardball with Michael Flynn.
Special counsel Robert S. Mueller III and his team are no strangers to the practice of prosecutorial hardball. That skill may be coming into play once again if, as news reports indicate, the special counsel is turning his attention to former national security adviser Michael T. Flynn and Flynn’s son Michael G. Flynn, who worked with his father’s lobbying firm and was also involved in the Trump transition. The elder Flynn has long been thought to be in Mueller’s sights, and CNN reported Wednesday that Flynn and his wife are worried about their son’s legal exposure as well.
If in fact prosecutors have built cases against both men, they now have a huge, juicy carrot to dangle in front of the elder Flynn: Plead guilty and testify against others, and we’ll go easy on your son. Given the former national security adviser’s prior positions with the Trump campaign and administration, that prospect has to make other potential targets of Mueller’s inquiry extremely uneasy.
Members of Mueller’s team are very familiar with — and have not been shy about employing — the tactic of persuading a witness to cooperate in exchange for leniency toward a family member. His chief deputy is Andrew Weissmann, a career prosecutor with a reputation for aggressiveness. More than a decade ago, Weissmann served on and ultimately headed the Enron task force, the team of prosecutors charged with investigating the financial collapse of the huge energy corporation. Weissmann and the other Enron prosecutors wanted the cooperation of Andrew Fastow, Enron’s former chief financial officer, whom they had indicted on dozens of federal charges. When prosecutors later added additional charges against Fastow, they also indicted a new defendant: Lea Fastow, Andrew’s wife, who had also worked at Enron. With the felony charges pending against Lea Fastow, the couple faced the prospect of spending years in prison while their two young sons were raised by others.
Eventually Andrew Fastow was sentenced to 10 years in prison and his wife got one year, which she was allowed to serve before Andrew went to prison so they could care for their children. It looks like we’re about to find out what Michael Flynn will do to protect his son.
A couple more Russia investigation stories:
ABC News reports that George Papadopoulos, who is cooperating with the Mueller investigation in return for a reduced sentence, initially lied to FBI investigators “out of loyalty to Trump.”
Trump had publicly denied that there had been any contact between his campaign and Russian officials, and Papadopoulos did not want to contradict the official line, the source said.
“It’s all fake news,” Trump said of any alleged connections in January. “It’s phony stuff. It didn’t happen.”
Papadopoulos met with the FBI agents investigating those alleged ties shortly thereafter, and he later acknowledged that he lied during that meeting about the timing of certain contacts.
How may other advisers lied out of loyalty to the liar in chief? And how many of those advisers will end up turning on Trump? Mueller is on the case.
NBC News: Trump Bodyguard Keith Schiller Testifies Russian Offered Trump Women, Was Turned Down.
After a business meeting before the Miss Universe Pageant in 2013, a Russian participant offered to “send five women” to Donald Trump’s hotel room in Moscow, his longtime bodyguard told Congress this week, according to three sources who were present for the interview.
Two of the sources said the bodyguard, Keith Schiller, viewed the offer as a joke, and immediately responded, “We don’t do that type of stuff.”
The two sources said Schiller’s comments came in the context of him adamantly disputing the allegations made in the Trump dossier, written by a former British intelligence operative, which describes Trump having an encounter with prostitutes at the hotel during the pageant. Schiller described his reaction to that story as being, “Oh my God, that’s bull—-,” two sources said.
The conversation with the Russian about the five women took place after a morning meeting about the pageant in Moscow broke up, two sources said.
That night, two sources said, Schiller said he discussed the conversation with Trump as Trump was walking back to his hotel room, and Schiller said the two men laughed about it as Trump went to bed alone. Schiller testified that he stood outside Trump’s hotel room for a time and then went to bed.
One source noted that Schiller testified he eventually left Trump’s hotel room door and could not say for sure what happened during the remainder of the night.
Schiller is one of Trump’s closest and longest-term employees. He would probably lie for his boss. So why didn’t he just say there was nothing to the story at all? A couple of legal experts on TV have suggested that Schiller may be afraid that someone else overheard the offer and thus he’s afraid to give a complete denial.
AP Exclusive: Russia Twitter trolls deflected Trump bad news.
Disguised Russian agents on Twitter rushed to deflect scandalous news about Donald Trump just before last year’s presidential election while straining to refocus criticism on the mainstream media and Hillary Clinton’s campaign, according to an Associated Press analysis of since-deleted accounts.
Tweets by Russia-backed accounts such as “America_1st_” and “BatonRougeVoice” on Oct. 7, 2016, actively pivoted away from news of an audio recording in which Trump made crude comments about groping women, and instead touted damaging emails hacked from Clinton’s campaign chairman John Podesta.
Since early this year, the extent of Russian intrusion to help Trump and hurt Clinton in the election has been the subject of both congressional scrutiny and a criminal investigation by special counsel Robert Mueller. In particular, those investigations are looking into the possibility of collusion between the Trump campaign and the Russians.
AP’s analysis illuminates the obvious strategy behind the Russian cyber meddling: swiftly react, distort and distract attention from any negative Trump news.
Read the rest at the AP link above.
Meanwhile Trump is bumbling through his Asia trip, working on destroying U.S. credibility around the world.
Quartz: Beijing is playing Trump “like a fiddle,” an ex-ambassador to China says.
Japanese prime minister Shinzo Abe’s recent hosting of Donald Trump was a masterclass in how to make the US president comfortable—feed him familiar food, take him on his favorite outing, golf, and tell him how much you like him.
U.S. President Donald Trump takes part in a welcoming ceremony with China’s President Xi Jinping in Beijing, China, November 9, 2017. REUTERS/Thomas Peter – RC1F6C531670
But Chinese president Xi Jinping added a creamy layer of pomp and circumstance to the mix when the White House delegation reached Beijing. Trump has been feted with everything from an unprecedented private dinner in the Forbidden City to a red carpet welcome in Tiananmen Square, the Beijing landmark where hundreds of students were killed by the Chinese military in 1989.
Trump has responded in kind, calling Xi a “very special man” with whom he has “great chemistry.” While US businessmen had high hopes that Trump and his back-to-the-1980s China advisors would wring concessions from Xi to cut the $350 billion trade deficit, the only concrete result has been a mish-mash of previously announced deals and non-binding agreements that probably aren’t worth the $250 billion both governments claim….
Beyond the numbers, it’s Trump’s embrace of Xi that has diplomats and human rights activists around the world concerned. China’s government is “playing Trump like a fiddle,” said Jorge Guajardo, Mexico’s ambassador to China from 2007 to 2013. “You don’t have good chemistry with a Chinese leader who doesn’t speak your language and is geared to not develop chemistry,” he said.
Read more at Quartz.
Putin is playing Trump too. Trump has been dying to meet with him again, but it’s not going to happen. Putin was just jerking him around and trying (successfully) to humiliate him.
Da Nang, Vietnam (CNN)President Donald Trump and Russian President Vladimir Putin will not hold a formal meeting at the Asia-Pacific Economic Cooperation summit here in Vietnam, White House press secretary Sarah Sanders told reporters aboard Air Force One on Friday.
But the two world leaders did briefly meet during the so-called APEC class photo, where all the heads of state come together to take a photo before the summit officially starts. Trump and Putin shook hands and had a briefly spoke before the photo was snapped….
Citing “scheduling conflicts on both sides,” though, Sanders said no formal meeting will take place during the two-day gathering, but that an informal interaction between the two world leaders was likely to happen, a notion reinforced by her Russian counterparts.
“Regarding a Putin meeting, there was never a meeting confirmed, and there will not be one that takes place due to scheduling conflicts on both sides,” Sanders said. “There is no formal meeting or anything scheduled for them.”
Sure Sarah. Poor Donald was so looking forward to a private audience with his idol. But it was not to be.
What else is happening? What stories are you following today?
Posted: October 28, 2017 Filed under: Afternoon Reads, U.S. Politics | Tags: Donald Trump, Michael Flynn, Paul Manafort, Robert Mueller, Trump Russia investigation
The news hit last night on CNN: First charges filed in Mueller investigation.
A federal grand jury in Washington on Friday approved the first charges in the investigation led by special counsel Robert Mueller, according to sources briefed on the matter.
The charges are still sealed under orders from a federal judge. Plans were prepared Friday for anyone charged to be taken into custody as soon as Monday, the sources said. It is unclear what the charges are.
A spokesman for the special counsel’s office declined to comment. The White House also had no comment, a senior administration official said Saturday morning…..
On Friday, top lawyers who are helping to lead the Mueller probe, including veteran prosecutor Andrew Weissmann, were seen entering the court room at the DC federal court where the grand jury meets to hear testimony in the Russia investigation.
Reporters present saw a flurry of activity at the grand jury room, but officials made no announcements.
The story has now been confirmed by other news organizations, including Reuters and The Wall Street Journal. Now we know why the Trump administration has been trying to change the narrative using bogus attacks on Hillary Clinton.
Speculation will be rife in the media now, as we wait to learn who has been indicted. Most people think it could be Paul Manafort or Michael Flynn. I hope it will be someone big, but it could also be someone charged with lying to the FBI or Special Counsel. Either way, Mueller’s goal will likely be to get someone to talk in turn for reducing charges.
Mike Allen at Axios:
Why it matters, from MSNBC’s Ari Melber: “[W]e’re moving away from a political fight, where everyone can see it the way they want, and into … a legal process — where there are rules of evidence, facts are established. … Bob Mueller is known to be a pretty careful prosecutor.” [….]
Matt Miller — former Obama Justice Department official, and close Mueller watcher, emails me: “I think it means this will be a rolling investigation. Rather than conduct his entire investigation and then wrap things up with indictments and possibly a report at the end, he is doing it in stages, the way the Justice Department might attack a drug cartel or a mafia family.” [….]
Miller adds that this “is a watershed moment for the politics surrounding the investigation. In less than six months on the job, Mueller has already returned indictments.
The Hill: CNN legal analyst: Charges filed in Mueller probe means it will last ‘well into 2018.’
CNN senior legal analyst Jeffrey Toobin said Friday that news of the first charges reportedly being filed in special counsel Robert Mueller’s investigation into Russian election interference means the probe will last “well into 2018.”
“If anybody thinks the Mueller investigation is going to be wrapping up in the next couple of months, this decision today pretty much guarantees the Mueller office will be up and running well into 2018,” Toobin said on CNN’s “Anderson Cooper 360.” [….]
Toobin called the news “a major landmark in the course of this investigation” and said the indictments will likely be aimed at garnering cooperation in the probe.
“In white-collar investigations, usually the first indictments are against individuals that you hope will plead guilty and cooperate against others,” Toobin said. “You don’t indict the big fish first, you indict smaller fish in hopes of getting the big fish.”
Vox: Why the Trump-Russia indictments are being kept secret — for now.
Because the indictments are sealed, we don’t yet know who is being charged or what they are being charged with.
Ken White, a libertarian-leaning lawyer and former assistant US attorney who tweets and blogs as “Popehat,” walked through a brief explainer on Saturday morning, after the news that the first criminal charges in Mueller’s investigation of possible Russian government collusion with the Trump presidential campaign had been approved by a federal grand jury.
The takeaway was: Sealing charges is pretty routine. It prevents the target of an indictment from knowing they’re about to be charged and arrested, which limits the risk of defendants destroying evidence or any shenanigans when they are eventually brought in.
Read Popehat’s twitter thread at Vox.
At Slate, Jeremy Stahl provides a rundown of possible candidates who might be in the Special Counsel’s crosshairs: Mueller Has Reportedly Issued His First Charges. Who Might Be Indicted?
On Tuesday, the Wall Street Journal reported that former Trump campaign chief Paul Manafort was under investigation by the Manhattan U.S. attorney’s office for possible money laundering. In July, the Federal Bureau of Investigation conducted a pre-dawn raid on his home.
Former Trump foreign policy advisor Carter Page spoke with Senate investigators for five hours on Friday, according to NBC News. Last summer, the FBI obtained a FISA warrant to monitor his communications as part of its investigation into Russia.
Longtime Trump lawyer Michael Cohen testified before both the House and Senate Intelligence Committees this week. According to NBC, “there was an extended focus on emails he received in 2015 from Felix Sater, a former Trump associate with a criminal past, about a potential deal to open a Trump Tower in the Russian capital.” At the time, Sater wrote to Cohen: “Our boy can become president of the USA and we can engineer it. I will get all of Putins team to buy in on this, I will manage this process.”
Read more at the link.
Last night folks on twitter noted that while CNN and MSNBC were focusing on the Mueller news, Fox was still claiming that Hillary Clinton was the one who colluded with Russia. For example,
Someone also posted this hilarious video.
If only . . .
Trump’s lawyers are apparently less interesting in Clinton conspiracy theories than what Mueller might have in store for their client. Politico: Trump legal team scrambles to prepare for new stage of Russia probe.
President Donald Trump’s White House and personal lawyers scrambled Saturday to learn where the knife might fall in the investigation by special counsel Robert Mueller, triggering a guessing game among aides after days of trying to turn attention away from allegations of collusion with Russia during the election.
Attorneys involved in the case said their cellphones have been ringing nonstop as they connected with each other, and with reporters, trying to gather more concrete details after a CNN report Friday night that a federal grand jury had approved the first charges in the Russia investigation.
While the report did not cite names, attorneys close to the case said they were discussing whether the indictment was for two known Mueller targets: former campaign chairman Paul Manafort or former White House national security adviser Michael Flynn.
Several attorneys who said they were in touch with the Manafort and Flynn lawyers said they had not been notified of any matter related to an indictment — which is customary in a white-collar criminal investigation — leading them to believe it wasn’t either of those two former high-ranking Trump aides. An attorney for Manafort did not respond to a request for comment. Michael Flynn’s attorney, Robert Kelner, declined to comment.
The attorneys close to the case also said they wouldn’t be surprised if the charges were targeting Flynn or Manafort family members, or a longtime accountant or lawyer.
Read more speculation at Politico.
Breaking on MSNBC as I write this:
I have to admit I’m excited.
Another important Russia story broke yesterday at The New York Times: Talking Points Brought to Trump Tower Meeting Were Shared With Kremlin.
Natalia V. Veselnitskaya arrived at a meeting at Trump Tower in June 2016 hoping to interest top Trump campaign officials in the contents of a memo she believed contained information damaging to the Democratic Party and, by extension, Hillary Clinton. The material was the fruit of her research as a private lawyer, she has repeatedly said, and any suggestion that she was acting at the Kremlin’s behest that day is anti-Russia “hysteria.”
But interviews and records show that in the months before the meeting, Ms. Veselnitskaya had discussed the allegations with one of Russia’s most powerful officials, the prosecutor general, Yuri Y. Chaika. And the memo she brought with her closely followed a document that Mr. Chaika’s office had given to an American congressman two months earlier, incorporating some paragraphs verbatim.
The coordination between the Trump Tower visitor and the Russian prosecutor general undercuts Ms. Veselnitskaya’s account that she was a purely independent actor when she sat down with Donald Trump Jr., Jared Kushner, the president’s son-in-law, and Paul J. Manafort, then the Trump campaign chairman.
It also suggests that emails from an intermediary to the younger Mr. Trump promising that Ms. Veselnitskaya would arrive with information from Russian prosecutors were rooted at least partly in fact — not mere “puffery,” as the president’s son later said.
In the past week, Ms. Veselnitskaya’s allegations — that major Democratic donors were guilty of financial fraud and tax evasion — have been embraced at the highest levels of the Russian government. President Vladimir V. Putin of Russia repeated her charges at length last week at an annual conference of Western academics. A state-run television network recently made them the subject of two special reports, featuring interviews with Ms. Veselnitskaya and Mr. Chaika.
The matching messages point to a synchronized information campaign. Like some other Russian experts, Stephen Blank, a senior fellow with the nonprofit American Foreign Policy Council in Washington, said they indicate that Ms. Veselnitskaya’s actions “were coordinated from the very top.”
Read the rest at the NYT.
I also want to call attention to this NYT story from late Thursday: U.S. Soldiers Were Separated From Unit in Niger Ambush, Officials Say.
In the chaotic moments after an Army Special Forces team and 30 Nigerien troops were ambushed by militants in a remote corner of West Africa three weeks ago, four of the Americans were separated from the larger group.
Their squad mates immediately alerted commanders that they were under attack — then called for help nearly an hour later, as a top Pentagon official said this week — and ground forces from Niger’s army and French Mirage jets were both dispatched.
About two hours later, the firefight tapering off, French helicopters from nearby Mali swooped in to the rescue on the rolling wooded terrain. But they retrieved only seven of the 11 Americans. The four others were inexplicably left behind, no longer in radio contact and initially considered missing in action by the Pentagon, a status that officials say raises the possibility they were still alive when the helicopters took off without them.
United States officials insisted that other American, French and Nigerien forces were in the area when the helicopters lifted off. When Americans suffer casualties in an operation, the wounded are typically evacuated before the dead, officials said.
The bodies of three dead Americans and the team’s interpreter were found hours later. But American military officials still cannot explain why it took two more days and an exhaustive search by troops from all three countries to find the body of the fourth soldier, Sgt. La David T. Johnson, discovered by Nigerien troops in the woods near the ambush site.
This morning The Wall Street Journal reports that a request that an armed drone accompany the mission was denied. The story is behind a paywall, but here’s the report from The Hill: Forces in Niger denied use of armed drone: report.
A request by U.S. military officials to send an armed drone near a patrol of Green Berets in Niger before a deadly ambush earlier this month was denied, according to a Wall Street Journal report.
That the request was blocked in the approval process – which goes through the Pentagon, State Department and the Nigerien government – throws into further question whether the Green Berets had adequate cover on the Oct. 4 mission that ended in the deaths of four U.S. soldiers.
Since the ambush, the troops’ mission has been revealed to have been potentially more dangerous than U.S. officials initially let on….
According to the Journal, that assignment was considered relatively low-risk, and there hadn’t been any attacks on U.S. forces in the area in the past year.
But that the U.S. sought to send an armed drone to the area suggests that military officials were aware of a change in the security situation in the country, the Journal reported.
What else is happening? Please share your thoughts and links in the comment thread, and have a great weekend. On Monday it will be Mueller time!
Posted: September 16, 2017 Filed under: Foreign Affairs, morning reads, U.S. Politics | Tags: Brad Parscale, Cambridge Analytica, Donald Trump, Donald Trump Jr, Facebook, Jared Kushner, Jordan, King Abdullah II, Michael Flynn, Natalia Veselnitskaya, nuclear reactors, Paul Manafort, Preet Bharara, Renato Mariotti, Robert Mercer, Robert Mueller, Russia investigation, Steve Bannon
Coffee and Donuts, Scott Moore
It appears that Special Prosecutor Robert Mueller is getting closer to finding crimes committed foreign persons and by Trump’s closest advisers; and Jared Kushner may be at the center of it all. For Trump, the shit is about to get real.
It all centers around Facebook and microtargeting. As I’m sure you know, Mueller recently obtained a warrant for the content of ads that Facebook sold to a Russian source. CNN has the latest this morning: Facebook handed Russia-linked ads over to Mueller under search warrant.
Facebook gave Mueller and his team copies of ads and related information it discovered on its site linked to a Russian troll farm, as well as detailed information about the accounts that bought the ads and the way the ads were targeted at American Facebook users, a source with knowledge of the matter told CNN.
The disclosure, first reported by the Wall Street Journal
, may give Mueller’s office a fuller picture of who was behind the ad buys and how the ads may have influenced voter sentiment during the 2016 election.
Clark Kent Breakfast, Dave Seguin
“We continue to work with the appropriate investigative authorities,” Facebook said in a statement to CNN.
Facebook informed Congress last week that it had identified 3,000 ads that ran between June 2015 and May 2017 that were linked to fake accounts. Those accounts, in turn, were linked to the pro-Kremlin troll farm known as the Internet Research Agency.
This is significant, because it indicates that Mueller has evidence of crimes related to the Facebook data. Business Insider: Mueller just obtained a warrant that could change the entire nature of the Russia investigation.
FBI Special Counsel Robert Mueller reportedly obtained a search warrant for records of the “inauthentic” accounts Facebook shut down earlier this month and the targeted ads these accounts purchased during the 2016 election.
The warrant was first disclosed by the Wall Street Journal on Friday night and the news was later confirmed by CNN.
Legal experts say the revelation has enormous implications for the trajectory of Mueller’s investigation into Russia’s election interference, and whether Moscow had any help from President Donald Trump’s campaign team.
“This is big news — and potentially bad news for the Russian election interference ‘deniers,'” said Asha Rangappa, a former FBI counterintelligence agent.
Rangappa, now an associate dean at Yale Law School, explained that to obtain a search warrant a prosecutor needs to prove to a judge that there is reason to believe a crime has been committed. The prosecutor then has to show that the information being sought will provide evidence of that crime….
by Victor Ostrovsky
“The key here…is that Mueller clearly already has enough information on these accounts — and their link to a potential crime to justify forcing [Facebook] to give up the info,” she said. “That means that he has uncovered a great deal of evidence through other avenues of Russian election interference.”
It also means that Mueller is no longer looking at Russia’s election interference from a strict counterintelligence standpoint — rather, he now believes he may be able to obtain enough evidence to charge specific foreign entities with a crime.
Read more in this Twitter thread–click to read the rest:
And who was in charge of the data operation for the Trump campaign? Jared Kushner. He revealed a lot about how he did it in a Forbes article back in May 2017: Jared Kushner In His Own Words On The Trump Data Operation The FBI Is Reportedly Probing. A couple of excerpts:
— “We found that Facebook and digital targeting were the most effective ways to reach the audiences. After the primary, we started ramping up because we knew that doing a national campaign is different than doing a primary campaign. That was when we formalized the system because we had to ramp up for digital fundraising. We brought in Cambridge Analytica. I called some of my friends from Silicon Valley who were some of the best digital marketers in the world. And I asked them how to scale this stuff. Doing it state by state is not that hard. But scaling is a very, very hard thing. They gave me a lot of their subcontractors and I built in Austin a data hub that would complement the RNC’s data hub. We had about 100 people in that office, which nobody knew about, until towards the end. We used that as the nerve center that drove a lot of the deployment of our ground game resources….
Fabio Hurtado Spanish, b. 1960
— “We played Moneyball, where we were asking, ‘Which states are will be the most cost effective—ROI per electoral vote.’ We used a lot things to get much more bang for the buck… We got rid of a lot of the political people. That’s not who we hired. Our best people were mostly people who volunteered pro bono, people from the business world, people from nontraditional fields. We could squeeze the margin so that nobody was getting rich on it. And we only had people who were doing it for the right reasons, not because they wanted to go onto the next campaign, but because they felt passionately about getting Donald Trump elected.”
Yesterday Vanity Fair published a piece by Chris Smith that connects a lot of dots: Did Jared Kushner’s Data Operation Help Select Facebook Targets for the Russians?
Kushner’s chat with Forbes has provided a veritable bakery’s worth of investigatory bread crumbs to follow. Brad Parscale, who Kushner hired to run the campaign’s San Antonio-based Internet operation, has agreed to be interviewed by the House Intelligence Committee.
Bigger questions, however, revolve around Cambridge Analytica. It is unclear how Kushner first became aware of the data-mining firm, but one of its major investors is billionaire Trump backer Robert Mercer. Mercer was also a principal patron of Breitbart News and Steve Bannon, who was a vice president of Cambridge Analytica until he joined the Trump campaign. “I think the Russians had help,” said Congresswoman Jackie Speier, a California Democrat who is a member of the House Intelligence Committee. “I’ve always wondered if Cambridge Analytica was part of that.” (Cambridge Analytica did not respond to a request for comment.) ….
by PJ Crook
No evidence has emerged to link Kushner, Cambridge Analytica, or Manafort to the Russian election-meddling enterprise; all have denied colluding with foreign agents. (Kushner’s representatives declined to comment for this article. Manafort’s spokesman could not be reached.) Yet analysts scoff at the notion that the Russians figured out how to target African-Americans and women in decisive precincts in Wisconsin and Michigan all by themselves. “Could they have hired a warehouse full of people in Moscow and had them read Nate Silver’s blog every morning and determine what messages to post to what demographics? Sure, theoretically that’s possible,” said Mike Carpenter, an Obama administration assistant defense secretary who specialized in Russia and Eastern Europe. “But that’s not how they do this. And it’s not surprising that it took Facebook this long to figure out the ad buys. The Russians are excellent at covering their tracks. They’ll subcontract people in Macedonia or Albania or Cyprus and pay them via the dark Web. They always use locals to craft the campaign appropriately. My only question about 2016 is who exactly was helping them here.”
Click on the Vanity Fair link to read the rest.
More on the Cambridge Analytica piece of this at CNBC:
Darren Bolding, chief technology officer of Cambridge Analytica, told the crowd at the third annual Internet Summit in San Francisco on Thursday that “algorithms will find the worst in us if you let them go nuts.”
His comments came during an interview onstage with Harvard University law professor Lawrence Lessig in front of several hundred people gathered to hear him discuss the campaign. The interview was led by Matthew Prince, the CEO of internet service provider Cloudflare, which removed a white supremacist website from its network in the wake of Trump’s comments after a deadly rally in Charlottesville, Virginia.
Bolding — who worked at the Republican National Committee before joining Cambridge in January of 2017 — said that the RNC used 15 “issue models” to target political ads at Facebook users during the 2016 U.S. election campaign….The event came as Facebook faces growing criticism to release more details on the ads it sent to users that it says were bought by Russians looking to influence U.S. voters.
The ads were targeted using the same automated Facebook system used by Cambridge Analytica, and for the same purpose — to influence the U.S. presidential election.
And that’s not the only Russia Investigation story that broke yesterday.
Bloomberg: Russia Laundering Probe Puts Trump Tower Meeting in New Light. The Russian lawyer who met with Don Jr., Kushner and Paul Manafort in June 2016 was also involved in a huge money laundering case–could getting rid of that case have been the quid pro quo for Russian help in getting Trump elected?
when she stepped into Trump Tower, [Natalia] Veselnitskaya was also representing a client ensnared in a long-running U.S. investigation into an alleged web of Russian money-laundering. That criminal inquiry, opened by federal prosecutors in New York in 2013 and previously unreported, is still active, according to people familiar with the probe. There was no mention of an ongoing criminal inquiry when the U.S. settled a related civil lawsuit against Veselnitskaya’s client in May.
The outline of the criminal investigation, stretching from Switzerland to Cyprus, is laid out deep within the 734 filings in the civil case. Several countries have supplied documents to the U.S., as have Deutsche Bank AG, Citigroup Inc. and other global banks that aren’t targets. U.S. prosecutors in the case are seeking to track parts of more than $200 million they say left Russia after a massive fraud, and to identify who was involved in the scheme.
The revelation adds a new element to the Trump Tower meeting, which has emerged as a focus of congressional investigators and a U.S. special counsel inquiry into Russian meddling in the 2016 U.S. presidential election.
Recall that Trump fired former Manhattan U.S. Attorney Preet Bharara, who had brought the case in 2013 and later the Justice Department settle the case for peanuts:
After years of court wrangling over the civil case, the Prevezon matter was set for trial in May 2017, promising a public view of prosecutors’ full allegations about the Russian money flows. But just days before opening arguments, the U.S. announced it had settled the case for $5.9 million.
Ana Maria Leão
The prosecutors called it a victory. So did Prevezon lawyer Gay, who called the U.S. settlement “almost an apology by the government.”
Several Democratic lawmakers looked at the Prevezon settlement in a new light two months later, when news emerged about the Veselnitskaya meeting in Trump Tower. In a letter, they asked whether the Russian lawyer, or members of the Trump team, may have put pressure on prosecutors in the matter.
Natasha Bertrand has more at Business Insider: New details about major Russian money-laundering investigation raise the stakes of Trump Tower meeting.
The criminal investigation had not yet been disclosed when Attorney General Jeff Sessions fired Bharara in March, and there was no mention of it when the civil case was settled in May for $5.9 million.
Veselnitskaya has staunchly denied discussing the Prevezon case during the Trump Tower meeting. But the developments suggest the stakes for her client were higher than previously known.
In September 2016, Bharara had issued a grand-jury subpoena to Andrei Alekseevich Pavlov — a person “central to the Government’s case against Prevezon,” according to an emergency appeal filed at the time by Prevezon counsel Michael Mukasey, who wanted to depose him.
Citigroup, Deutsche Bank AG, UBS AG, and TD Bank were also issued grand-jury subpoenas, according to Bloomberg, which did not provide further details.
Grand-jury testimonies are a key stage in a federal criminal investigation. The subpoena issued by Bharara to Pavlov, and provided to Business Insider on Friday, ordered him to hand over documents related to a series of cases connected to the Prevezon investigation.
The subpoena also asked Pavlov to provide “all non-privileged correspondence” with Veselnitskaya and others relevant to the case.
This was all short-circuited when the DOJ settled the case. Read more details at BI.
In the days leading up to Donald Trump’s presidential inauguration, when his soon-to-be national security adviser Michael Flynn was reportedly pushing a multibillion-dollar deal to build nuclear reactors in Jordan and other Middle East nations, Flynn and two other top Trump advisers held a secret meeting with the king of Jordan.
meeting — details of which have never been reported — is the latest in a series of secret, high-stakes contacts between Trump advisers and foreign governments that have raised concerns about how, in particular, Flynn and senior adviser Jared Kushner handled their personal business interests as they entered key positions of power. And the nuclear project raised additional security concerns about expanding nuclear technology in a tinderbox region of the world. One expert compared it to providing “a nuclear weapons starter kit.”
On the morning of Jan. 5, Flynn, Kushner, and former chief strategist Steve Bannon greeted Mi at the Four Seasons hotel in lower Manhattan, then took off in a fleet of SUVs and a sedan to a different location.
People close to the three Trump advisers say that the nuclear deal was not discussed. But a federal official with access to a document created by a law enforcement agency about the meeting said that the nuclear proposal, known as the Marshall Plan, was one of the topics the group talked about.
Read the rest at the link. It sure looks like Mueller is getting closer to nailing Trump and his gang.
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