Tag Archives: FCPA

Why was Jared Kushner meeting with Vnesheconombank (VEB), ‘Putin’s slush fund’ bank?

We finally have some follow-up reporting to an earlier New York Times report about Jared Kushner discussing some sweet Russian oligarch money to finance the Princeling’s troubled “Kushner Tower” during the transition back in December. Jared Kushner had a previously undisclosed meeting with the CEO of ‘the bank that financed Vladimir Putin’s grandest ambitions’:

Kushner’s meeting with Gorkov, the struggling bank’s CEO, came as Kushner was trying to find investors for a Fifth Avenue office building in Manhattan that is set to be heavily financed by Anbang Insurance Group, a firm with ties to the Chinese government.

White House spokeswoman Hope Hicks told The Times on Monday that the “Kushner Tower” project wasn’t discussed during his meeting with Gorkov, and a White House official said in a statement that Kushner took the meetings as part of his role as “the official primary point of contact with foreign governments and officials.

“White House spokeswoman Hope Hicks told The Times on Monday that the “The meeting did not appear to break any rules, and Hicks said it was “not much of a conversation” so didn’t warrant a disclosure to the rest of the Trump transition team.

So said Hope Hicks, who is no better than “Baghdad Sean” Spicer with the truth.

The Washington Post now reports, Explanations for Kushner’s meeting with head of Kremlin-linked bank don’t match up:

The White House and a Russian state-owned bank have very different explanations for why the bank’s chief executive and Jared Kushner held a secret meeting during the presidential transition in December.

The bank maintained this week that the session was held as part of a new business strategy and was conducted with Kushner in his role as the head of his family’s real estate business.

The White House says the meeting was unrelated to business and was one of many diplomatic encounters the soon-to-be presidential adviser was holding ahead of Donald Trump’s inauguration.

The contradiction is deepening confusion over Kushner’s interactions with the Russians as the president’s son-in-law emerges as a key figure in the FBI’s investigation into potential coordination between Moscow and the Trump team.

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Follow the Money: The Trump swamp overflows

I posted the other day, House Oversight and Government Reform Committee: Michael Flynn violated the law. The committee held another press conference today regarding new information provided by the Department of Defense, and it’s not looking good for ol’ Mikey. “Lock him up!”

The Huffington Post reports Pentagon Warned Michael Flynn Against Accepting Foreign Money In 2014; He Didn’t Listen:

President Donald Trump’s former national security adviser, Michael Flynn, failed to heed warnings from the Pentagon about accepting foreign funds for a trip to Russia in 2015, the House Oversight and Government Reform Committee announced Thursday.

The Department of Defense has sent classified documents to committee chairman Rep. Jason Chaffetz (R-Utah), said ranking member Rep. Elijah Cummings (D-Md.) at a news conference on Thursday. One of them, which is being prepared for public release, is a letter from the Defense Intelligence Agency to Flynn.

“This letter explicitly warned General Flynn, as he entered retirement, that the Constitution prohibited him from accepting any foreign government payments without advance permission,” Cummings said. “DIA did not locate any records of Lieutenant General Flynn seeking permission or approval for the receipt of money from a foreign source.”

But Flynn did accept the funds from Kremlin-backed news agency RT and failed to disclose them when he applied for a security clearance last year, Cummings and Chaffetz said Tuesday. He may have broken federal law.

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The Trump International Hotel & Tower Baku, Azerbaijan oligarchs, Iran’s Revolutionary Guard, and the FCPA

The NewYorker has a deep-dive lengthy investigative report by Adam Davidson into Donald Trump’s Worst Deal: The President helped build a hotel in Azerbaijan that appears to be a corrupt operation engineered by oligarchs tied to Iran’s Revolutionary Guard (excerpts):

The building, a five-star hotel and residence called the Trump International Hotel & Tower Baku, has never opened, though from the road it looks ready to welcome the public.

* * *

The more time I spent in the neighborhood, the more I wondered how the hotel could have been imagined as a viable business. The development was conceived, in 2008, as a high-end apartment building. In 2012, after Donald Trump’s company, the Trump Organization, signed multiple contracts with the Azerbaijani developers behind the project, plans were made to transform the tower into an “ultra-luxury property.” . . . For an expensive hotel, the Trump Tower Baku is in an oddly unglamorous location: the underdeveloped eastern end of downtown, which is dominated by train tracks and is miles from the main business district, on the west side of the city. Across the street from the hotel is a discount shopping center; the area is filled with narrow, dingy shops and hookah bars. Other hotels nearby are low-budget options: at the AYF Palace, most rooms are forty-two dollars a night. There are no upscale restaurants or shops. Any guests of the Trump Tower Baku would likely feel marooned.

The timing of the project was also curious. By 2014, when the Trump Organization publicly announced that it was helping to turn the tower into a hotel, a construction boom in Baku had ended, and the occupancy rate for luxury hotels in the city hovered around thirty-five per cent. Jan deRoos, of Cornell University, who is an expert in hotel finance, told me that the developer of a five-star hotel typically must demonstrate that the project will maintain an average occupancy rate of at least sixty per cent for ten years.

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