money laundering

Connecting the dots of the Russia investigation

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The problem average Americans have with the Special Counsel’s Russia investigation is understanding how the multifaceted bits of information publicly reported over the past two years all fit together like puzzle pieces that come together into a clear picture.

Two new efforts to connect the dots of the Russia investigation are now available.

Craig Unger, an investigative journalist and writer who was deputy editor of the New York Observer and was editor-in-chief of Boston Magazine and a contributor to Vanity Fair, and the author of previous books such as House of Bush, House of Saud: The Secret Relationship Between the World’s Two Most Powerful Dynasties (2004) and The Fall of the House of Bush: The Untold Story of How a Band of True Believers Seized the Executive Branch, Started the Iraq War, and Still Imperils America’s Future (2007), is out with a new book, House of Trump, House of Putin: The Untold Story of Donald Trump and the Russian Mafia (2018).

The Washington Post book review by Shane Harris explains (excerpts):

Based on his own reporting and the investigative work of a former federal prosecutor, Unger posits that through Bayrock, Trump was “indirectly providing Putin with a regular flow of intelligence on what the oligarchs were doing with their money in the U.S.”

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This is how the Trump crime family syndicate comes undone

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The Manhattan district attorney’s office is considering pursuing criminal charges against the Trump Organization and two senior company officials in connection with Michael D. Cohen’s hush money payment to an adult film actress, according to two officials with knowledge of the matter. Trump Organization Could Face Criminal Charges From Manhattan D.A.:

A state investigation would center on how the company accounted for its reimbursement to Mr. Cohen for the $130,000 he paid to the actress, Stephanie Clifford, who has said she had an affair with President Trump, the officials said.

Both officials stressed that the office’s review of the matter is in its earliest stages and prosecutors have not yet made a decision on whether to proceed.

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As the district attorney, Cyrus R. Vance Jr., considers opening an investigation, the New York State attorney general’s office has moved to open a criminal investigation into whether Mr. Cohen has violated state tax law, an inquiry that would be unrelated to the federal tax evasion charges that he pleaded guilty to on Tuesday, according to a person with knowledge of the state matter.

If Mr. Vance decides to proceed, it would not be the first time he investigated members of the Trump family. He was faulted for not pursuing charges against Ivanka Trump and Donald Trump Jr., who were under criminal investigation in 2012 over allegations that they misled buyers interested in the Trump SoHo condominium project.

The attorney general, Barbara D. Underwood, in recent days sought a referral from the state Department of Taxation and Finance, which is needed to conduct such an inquiry and to prosecute any violations of state tax law it might uncover, the person said. Such requests are seldom denied. The state’s double jeopardy laws do not apply to tax crimes.

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Looks like almost everyone is now ready to ‘flip’ on Donald Trump

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Allen Weisselberg has served as executive vice president and chief financial officer at the Trump Organization for decades. The Wall Street Journal reported that Weisselberg was once described by a person close to the company as “the most senior person in the organization that’s not a Trump.”

NBC News’ reports that Weisselberg, the longtime chief financial officer of the Trump Organization, is apparently “Executive 1” referenced in the prosecutors’ filing in the Michael Cohen case.

The Wall Street Journal reports today, Allen Weisselberg, Longtime Trump Organization CFO, Is Granted Immunity in Cohen Probe:

Allen Weisselberg, President Trump’s longtime financial gatekeeper, was granted immunity by federal prosecutors for providing information about Michael Cohen in the criminal investigation into hush-money payments for two women during the 2016 presidential campaign, according to people familiar with the matter.

Mr. Weisselberg, who is chief financial officer of the Trump Organization, was called to testify before a federal grand jury in the investigation earlier this year, The Wall Street Journal previously reported, citing people familiar with the investigation. He then spoke to investigators, though it isn’t clear whether he appeared before the grand jury.

The decision by prosecutors in the Manhattan U.S. attorney’s office to grant immunity to Mr. Weisselberg escalates the pressure on Mr. Trump, whom Mr. Weisselberg has served for decades as executive vice president as well as CFO for the Trump Organization. After Mr. Trump was elected, he handed control of his financial assets and business interests to his two adult sons and Mr. Weisselberg.

Mr. Weisselberg didn’t respond to a request for comment. A lawyer for Mr. Trump, who on Thursday said so-called flipping “almost ought to be illegal,” declined to comment.

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The Trump Swamp: ‘pay to play’ corruption

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Over the weekend the New York Times and the Washington Post did some excellent investigative reporting into the shady finances of Donald Trump and his consigliere Michael Cohn. The more we learn about Cohn’s “pay to play” scheme, and the two pending lawsuits challenging Trump’s “pay tp play” scheme under the emoluments clauses of the U.S. Constitution, the more this feckless GOP-controlled Congress has an obligation to investigate Trump’s tax records and financial dealings as president to “drain the swamp”: this is the most corrupt administration in recent American history.

Steve Benen has a decent short summary, The closer one looks at Trump’s finances, the louder the questions become:

Last summer, Donald Trump sat down with the New York Times, which asked whether Special Counsel Robert Mueller will have crossed “a red line” if the investigation into the Russia scandal extends to include examinations of the resident’s finances. “I would say yeah. I would say yes,” he replied, adding, “I think that’s a violation.”

Naturally, this generated no shortage of speculation as to why Trump is so concerned about scrutiny of his finances. For that matter, there’s no reason to separate questions about the president’s finances with the Russia scandal – because as Rachel Maddow has explained on her show more than once, there’s an amazing number of people from Russia who’ve purchased Trump properties over the years. (My personal favorite is the story of Dmitry Rybolovlev, the fertilizer king, who purchased a derelict Florida estate from the future president at an extreme markup.)

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Follow the money: Russian money flowed into Michael Cohen’s business, but to whom did it flow, and for what purpose?

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Stormy Daniels lawyer Michael Avenatti is not saying how he came into possession of financial records of Michael Cohen, but at some point he may be required to disclose this to the court.

On Tuesday, Avenatti posted online a “Project Sunlight” executive summary (.pdf) for reporters to review. Avenatti examines Essential Consultants LLC, a Delaware company, on Oct. 17, 2016, just a few weeks before Election Day. The company’s banking records are from the First Republic Bank branch (“First Republic”) located in Manhattan, New York City, New York.

Avenatti alleges that representations made to the bank to open the account “were false when made and continued to be false at all material times based on the activity occurring in the account. This likely constitutes bank fraud.”

The media narrative has been that Essential Consultants LLC was used as a cut out for the payment of the $130,000 to Stormy Daniels, which it was.

But Michael Cohen was also using his company for a “pay to play” scheme to sell his access to Donald Trump as his personal attorney.

Avenatti alleges that “From October 2016 through January 2018, Mr. Cohen used his First Republic account to engage in suspicious financial transactions totaling $4,425,033.46.” Among these transactions include:

  • Chief among these suspicious financial transactions are approximately $500,000 in payments received from Mr. Viktor Vekselberg, a Russian Oligarch with an estimated net worth of nearly $13 Billion. Mr. Vekselberg and his cousin Mr. Andrew Intrater routed eight payments to Mr. Cohen through a company named Columbus Nova LLC (“Columbus”) beginning in January 2017 and continuing until at least August 2017.
  • Columbus Nova is a private equity firm founded in 2000 with over $2 billion in assets. Mr. Intrater is the CEO of Columbus Nova. Columbus Nova is the U.S. investment vehicle for Renova Group, a multi-national company controlled by Mr. Vekselberg. Renova group holds investments in various interests, including mining, oil, and telecommunications .
  • Also included in these suspicious financial transactions are four payments in late 2017 and early 2018 totaling $399,920 made by global pharmaceutical giant Novartis directly to Essential in four separate transactions of $99,980 each (just below $100,000).
  • In addition, Essential received $200,000 in four separate payments of $50,000 in late 2017 and early 2018 from AT&T.
  • Essential also received a $150,000 payment in November 2017 from Korea Aerospace Industries LTD.

There are a several other financial transactions highlighted in Avenatti’s executive summary.

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