August 25, 2019 / by 

 

The Cost of the Lawfare Surrounding the Steele Dossier Will Vastly Outstrip Its Original Cost

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Yesterday, Reuters reported that Fusion GPS has told Congress (presumably as part of the settlement on a bank subpoena reached last week) how much it got paid for the dossier on Donald Trump, and how much of that it paid Christopher Steele for his part in the dossier. Fusion got $1.02 million from Perkins Coie, of which Steele got $168K.

Fusion GPS’ statement said it had told Congress about how $168,000 was paid last year to Orbis Business Intelligence, Steele’s company.

The money paid to Orbis was taken from $1.02 million it received in fees and expenses from the Perkins Coie law firm, the statement said.

There’s some confusion about this number, however, with some claiming that Fusion had a huge markup on Steele’s labor. But that’s not right. We’ve now confirmed what we’ve seen is just part of the total dossier Fusion did on Trump. If the numbering in the dossier is any indication, there were at least 166 reports done, with 79 done between the time  started on the dossier in April and when Steele got involved in June. Of the total, we’ve seen just 17 released reports from Steele, or about 10% of the total (assuming none of his Russian-related reports were withheld). That would put his payment — over 16% of what Fusion got paid — to be a reasonable fraction (of course much of the rest of the dossier is likely domestic and less reliant on paid sources built up over decades).

In any case, as Reuters points out, it’s far less than the $12 million Trump has alleged.

But it’s also far less than what the dossier will cost in the long run. As I’ve been tracking, there are a number of strands of “lawfare” surrounding the dossier — Russian and Republican attempts to use lawsuits to make the dossier toxic. They include:

  • Alexej Gubarev’s lawsuit against Steele and his company in the UK
  • Alexej Gubarev’s lawsuit against BuzzFeed in FL (with related subpoena challenges being litigated in DC)
  • The lawsuit by Alfa Bank executives against BuzzFeed in DC (filed after consulting with top GOP lawyers Viet Dinh and Brian Benczkowski and their firm)
  • Fusion’s efforts to fight testimony and bank subpoenas in DC
  • Carter Page’s lawsuit against HuffPo and Yahoo

In addition, I would be shocked if Marc Elias doesn’t get slapped with a lawsuit or two, now that his role in funding the dossier has become known. With the exception of Page’s suit, each of those involves at least two sets of well paid lawyers to fight things out.

Which is to say that the lawfare surrounding the dossier may well end up costing $12 million, even assuming no one ever has to pay any penalties. Which seems to offer a lesson for sleazy politicos: If you’re going to pay to develop dirt on your opponent, make sure that the blowback from it doesn’t cost more in terms of dollars and damage than the actual dossier itself.


What Does the White House Know about Sam Clovis that Chuck Grassley Claims Not To?

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The other day I noted that Victoria Toensing’s press comments about her client, Sam Clovis’, appearance before the Mueller grand jury suggested there were discrepancies between his testimony and what George Papadopoulos has been telling the FBI for the last three months.

Nevertheless, after the disclosure that Clovis was the supervisor who told Papadopoulos to pursue a meeting with Russia as late as August 2016, Chuck Grassley still backed his fellow Iowan to serve as US Department of Agriculture’s Undersecretary for Research, Education and Economics. Grassley (who on Monday hid in flags to avoid questions about the Manafort indictment) told Iowa journalists that he had seen the context of the emails and he believed they showed no evidence that Clovis encouraged Papadopoulos to meet with Russian officials.

[I]n a conference call with Iowa reporters Wednesday, Grassley said he has reviewed emails provided by the Trump campaign that include a fuller account of Clovis’ interactions with Papadopoulos. According to those 80-some emails, Grassley said, Clovis does not appear to encourage any travel to meet with Russian officials.

“There’s an entirely different context than what was reported about Clovis and his relationship to this George P.,” Grassley told reporters.

The emails he reviewed cannot be released publicly, Grassley said, although some of them have been referenced in published newspaper accounts and are referred to in the court document from the Papadopoulos case.

When asked if he believes Clovis could face legal consequences over his role in the campaign, Grassley answered that it was “too early for me to say that.”

“But,” he went on, “reading these emails … that’s not an issue.”

Clovis has been scheduled to testify before Senate Agriculture Committee on Nov. 9 as part of his nomination as USDA undersecretary. That could be pushed back, Grassley said on Wednesday. In any case, Grassley said he will introduce Clovis when he comes before the committee.

Mind you, Grassley would have good reason to want an Iowan in a top USDA position, and might even relish the thought of having a non-scientist in charge of science there. So he may be biased.

In any case, the White House may now have a different understanding of matters.  CNN reports today that the White House may pull Clovis’ nomination entirely.

A White House source said the nomination of Sam Clovis is in danger and could be pulled soon. A source familiar with the White House’s thinking added that Clovis may have to withdraw, but it is not clear how that will happen, whether he will voluntarily pull out or be forced to do so.

[snip]
A Republican official close to Clovis said he remained loyal to Trump, adding that Clovis would almost certainly not fight the White House in backing away from his USDA nomination if asked.

“There’s no way he would fight this or cause trouble for the White House,” a Republican official and longtime associate of Clovis said.

Meanwhile, Clovis’ lawyer Toensing has gotten a whole lot less chatty about her client’s plight.

The White House did not comment Wednesday night, and messages to Clovis’ attorney were not returned.

Admittedly, it may be that the White House simply wants to avoid having to release the 80-some emails Grassley alluded to publicly, as Democrats would surely push to happen. Or it may be that there are details about Clovis’ actions — such as his description of cozying up to Russia as a key priority of the campaign — that the White House wants to avoid any questions about. Or, it may be that the White House simply doesn’t want to give Democrats any chances to focus attention on the substance of Papadopoulos’ plea.

Whatever it is, though, it does seem that Clovis’ immediate future seems to be less bright than Iowan Chuck Grassley claims it is.

Update: The AP reports that Clovis has withdrawn from consideration.


The False Statements George Papadopoulos Made about “Dirt” Were Designed to Hide Whether He Told the Campaign about the Emails

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Other outlets have now caught up to this post I wrote on Monday showing that a footnote in George Papadopoulos’ plea, describing a May 21, 2016 exchange between Paul Manafort and Rick Gates, probably means Manafort was trying to hide the campaign’s outreach to Russia rather than tamp it down via a low level staffer.

I want to turn now to some other details that become clear when similarly comparing Papadopoulos’ plea with the complaint, written two months earlier. In the plea, Papadopoulos’ false statements are listed as:

  1. PAPADOPOULOS met the professor and learned about Russian “dirt” before he joined the campaign
  2. PAPADOPOULOS’s contacts with the professor were inconsequential
  3. PAPADOPOULOS met the female Russian national before he joined the campaign, and his contacts with her were inconsequential

That is, the plea describes these false statements to pertain to the timing and significance of Papadopoulos’ communications with Professor Joseph Mifsud and the still unnamed woman that Papadopoulos once believed was the niece of Vladimir Putin (this WaPo story has the best descriptions of who is who in the documents). The plea disproves those three false statements by focusing on the timing of his meetings with the two (and his complete silence about Russian International Affairs Council program director Ivan Timofeev) and the sheer volume of his communications with the two. Significantly, the plea focuses on the impact of “omitt[ing] the entire course of conduct with the Professor and [Timofeev] regarding his efforts to establish meetings between the Campaign and Russian government officials.”

As I have noted, the grand jury testimony of at least one other person, Sam Clovis, appears to have downplayed that latter point, the assertiveness with which the campaign tried to set up meetings with the Russians. That and the limited hangout of these details shared with the WaPo in August suggests Trump people, collectively, know that email records show evidence the campaign was trying to set up meetings, and that more than one person has been lying to downplay how assertive they were.

The false statements as laid out in the affidavit supporting the complaint, however, have a significantly different emphasis. False statements 1 and 2 (as I’ve numbered them) were treated as one discussion under the heading “False Statements by PAPADOPOULOS Regarding Foreign Contact 1.” The first three paragraphs of the discussion look like this:

13. During the course of his January 27, 2017 interview with the FBI, GEORGE PAPADOPOULOS, the defendant, acknowledged that he knew a particular professor of diplomacy based in London (“Foreign Contact 1”). Foreign Contact 1 is a citizen of a country in the Mediterranean and an associate of several Russian nationals, as described further below. PAPADOPOULOS stated that Foreign Contact 1 told him that the Russians had “dirt” on Clinton.

a. PAPADOPOULOS told the Agents that, in the early part of 2016, Foreign Contact 1 “actually told me that the Russians had emails of Clinton. That guy told me.” PAPADOPOULOS further stated that Foreign Contact 1 told him that the Russians “have dirt on her,” meaning Clinton, and that “they have thousands of emails.”

b. PAPADOPOULOS, however, claimed to have received this information prior to joining the Campaign. He told Agents: “This isn’t like [Foreign Contact 1 was] messaging me while I’m in April with Trump.”

c. PAPADOPOULOS stated that he did not tell anyone on the Campaign about the “dirt” on Clinton because he “didn’t even know [if] that was real or fake or he was just guessing because I don’t know, because the guy [Foreign Contact 1]  seems like he’s … he’s a nothing.”

Laid out this way, the description of the false statements makes the import of them far more clear (import that the Special Counsel seems to want to obscure for now). Papadopoulos lied about the circumstances of his conversations with Mifsud — the FBI appears to have believed when they arrested him in July — as part of a story to explain why, after having heard about dirt in the form of thousands of emails from Hillary, he didn’t tell anyone else on the campaign about them. Laid out like this, it’s clear Papadopoulos was trying to hide both when he learned about the emails (just three days before the DNC did, as it turns out, not much earlier as he seems to have suggested in January), but also how important he took those emails to be (which in his false story, he tied to to a false story about how credible he found Mifsud to be).

FBI found those lies to be significant enough to arrest him over because they obscured whether he had told anyone on the campaign that the Russians had dirt in the form of Hillary emails.

To be sure, nothing in any of the documents released so far answer the questions that Papadopoulos surely spent two months explaining to the FBI: whether he told the campaign (almost certainly yes, or he wouldn’t have lied in the first place) and when (with the big import being on whether that information trickled up to Paul Manafort and Jared Kushner before they attended a meeting on June 9, 2016 in hopes of obtaining such dirt).

I’m sure that’s intentional. You gotta keep everyone else guessing about what Mueller knows.

But we can be pretty sure what the answers are.

Between the time they arrested Papadopoulos and the time he pled guilty, he became more forthcoming about his extensive efforts to broker a meeting between the campaign and the Russians, something Mifsud made clear was a high priority for the Russians. Mueller is perfectly happy — after securing the testimony of people like Clovis — to let everyone know that.

But Mueller is still hiding the pretty obvious answer to the question about whether Papadopoulos lied about Mifsud specifically to hide that he told people on the campaign that Russians had emails to deal in conjunction with such meetings.


Jeff Sessions Unforgets the Discussions with Russians He Twice Swore He Didn’t Know About

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On Monday at the Intercept and yesterday on Democracy Now, I pointed out that the George Papadopoulos plea showed that Jeff Sessions continues to lie under oath about what he knows about Trump campaign surrogates interacting with Russians.

Sessions has repeatedly testified to the Senate that he knows nothing about any collusion with the Russians. (Though in his most recent appearance, he categorized that narrowly by saying he did not “conspire with Russia or an agent of the Russian government to influence the outcome of the 2016 presidential election.”)

But the Papadopoulos plea shows that Sessions — then acting as Trump’s top foreign policy adviser — was in a March 31, 2016, meeting with Trump, at which Papadopoulos explained “he had connections that could help arrange a meeting between then-candidate Trump and President Putin.”

[snip]

Sessions’s claims about such meetings came in sworn testimony to the Senate. During his confirmation process, Sessions was asked a key question by Sen. Al Franken, D-Minn.: “If there is any evidence that anyone affiliated with the Trump campaign communicated with the Russian government in the course of this campaign, what will you do?”

“Senator Franken, I’m not aware of any of those activities,” Sessions responded. “I have been called a surrogate at a time or two in that campaign and I didn’t have — did not have communications with the Russians, and I’m unable to comment on it.”

The question, however, was about Sessions’s knowledge of such communications, and we now know he was in a meeting in which they were discussed.

More recently, on October 18, Sen. Patrick Leahy, D-Vt., asked Sessions a series of questions about his knowledge of interactions with Russians, including whether he had discussed emails with Russian officials since the campaign. To that question, Sessions said he “did not recall.”

Franken then asked, in an attempt to clarify the confirmation questions, “You don’t believe that surrogates from the Trump campaign had communications with the Russians?”

“I did not — and I’m not aware of anyone else that did. I don’t believe that it happened,” said the attorney general whose own department had, two weeks earlier, already gotten a guilty plea from a campaign surrogate describing such discussions with Russians.

Now that other media outlets have caught up with the significance of the March 31 meeting, there have been a number of stories that make it clear Jeff Sessions has now unforgotten the outreach to Russia he twice swore he didn’t remember.

In this telling, Sessions was the hero of the moment, insisting that the campaign not pursue a meeting with Putin, while Trump was more ambivalent.

Candidate Donald Trump did not dismiss the idea of arranging a meeting with Russia’s president when it was suggested in a meeting with his campaign foreign policy advisers last year, according to a person in the room.

The idea was raised by George Papadopoulos as he introduced himself at a March 2016 meeting of the Republican candidate’s foreign policy advisers, according to a court filing.
“He didn’t say yes and he didn’t say no,” the official said, declining to be more specific about Trump’s response to Papadopoulos.
But the chairman of Trump’s national security team, then Alabama senator and now attorney general Jeff Sessions, shut down the idea of a Putin meeting at the March 31, 2016, gathering, according to the source. His reaction was confirmed with another source who had discussed Session’s role.

If the first sourcing here — one of the nine men in the room — didn’t indicate these leaks came from Sessions’ orbit, the second one — a source who discussed Sessions’ role — makes it clear.

Let’s pretend for the moment that this telling is accurate, and that then Senator Sessions recognized the legal and political risk of cozying up to Vladimir Putin (and not just another attempt to telegraph what someone has testified or plans to testify to the grand jury).

If that’s correct, that means Sessions has twice lied under oath about knowing about efforts to reach out to the Russians. And he did so knowing that the President was sort of cool with the idea.

That is, it would suggest Sessions’ lies, given under oath, were designed to protect the President.


Victoria Toensing’s Story about Sam Clovis’ Grand Jury Appearance

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Sam Clovis is the person in the George Papadopoulos plea who told Papadopoulos, just as Paul Manafort’s pro-Russian Ukrainian corruption was becoming a scandal, “‘I would encourage you’ and another foreign policy advisor to ‘make the trip[] [to Russia], if it is feasible.’”

Victoria Toensing is a right wing nutjob lawyer whose chief skill is lying to the press to spin partisan scandals.

Clovis has decided that Toensing can best represent him in the Russia investigation, which means in the wake of yesterday’s surprise plea deal announcement, a person with “first-hand” knowledge of Clovis’ actions decided to tell his side of the story to NBC. Significantly, securing Clovis’ testimony is one of the last things Mueller did before springing the Manafort indictment and unsealing Papadopoulos’ plea, meaning that’s one of the things he was building up towards.

Sam Clovis, the former top Trump campaign official who supervised a man now cooperating with the FBI’s Russia investigation, was questioned last week by Special Counsel Robert Mueller’s team and testified before the investigating grand jury, a person with first-hand knowledge of the matter told NBC News.

Before I go further, let me note that there are few people who can claim first-hand knowledge of “the matter:” the grand jury, which thus far hasn’t leaked, Mueller’s team, which has shown a remarkable ability to keep secrets, or Clovis or Toensing.

Which is to say this story is likely Toensing and Toensing.

Much later in the article, a person with the same kind of knowledge also confirmed Clovis’ very helpful SSCI testimony.

Clovis was also interviewed recently by the Senate Intelligence Committee, according to a source with direct knowledge.

Thus far Clovis looks very cooperative, huh, per this person who knows what he has been doing?

Having placed Clovis at the grand jury last week, Toensing says she won’t comment on the one thing she can’t directly comment on — what went on there.

His lawyer, Victoria Toensing, would neither confirm nor deny his interactions with the Mueller team.

“I’m not going to get into that,” she said in an interview.

But Toensing does confirm that Clovis is the guy who supported Papadopoulos’ trip to Russia, which she would only know from having prepped his testimony or learned what he was asked in the grand jury.

Toensing confirmed that Clovis was the campaign supervisor in the emails.

She then presents what must be the story he told to explain why emails show him endorsing a trip to Russia even as it became clear why that was a bad idea.

In a statement, Toensing’s office said Clovis set up a “national security advisory committee” in the Trump campaign that included Papadopoulos, “who attended one meeting and was never otherwise approached by the campaign for consultation.”

[snip]

In the statement, Toensing said the Trump campaign had a strict rule prohibiting travel abroad on behalf of the campaign, and but that Clovis would have had no authority to stop Papadopoulos from traveling in his personal capacity.

To be fair, this story doesn’t directly conflict with Papadopoulos’ (though Toensing’s earlier story, that as a midwestern “gentleman,” Clovis would have been unable to tell Papadopoulos no, does conflict — this is probably an attempt, perhaps post-consultation with her client, to clean that up).

But it does adopt a line that permits the possibility Papadopolous did (make plans to) travel to Russia, but that it was all freelancing (remarkably like Carter Page’s trip to Russia was).

That is, this is the story (or close to it) that Clovis told the grand jury last week, before he learned that Papadopoulos had beat him to the punch and told a different (but still not fully public) story.

Now, I’m guessing that all the other people named in the Papadopoulos plea have also already had whatever shot they’ll get to tell the truth to the grand jury, but in case they haven’t, they can now coordinate with what Clovis said, which is surely part of the point.

But I’d also suggest that Mueller would be sure to get the testimony of everyone who might try to lie before he unsealed the Papadopoulos plea, so they have to start considering fixing their testimony.

Update: Apparently the White House is rethinking the wisdom of subjecting Clovis to a confirmation hearing next week.


We Have No Idea What Emails the Papadopoulos Plea Refer To

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As I’ve noted, the George Papadopoulos plea information, reveals that Papadopoulos learned that Russia had “dirt” consisting of “thousands of emails of Clinton” three days before the DNC learned they had been hacked.

And it makes it clear that on April 26 — three days before the DNC figured out Russia had hacked them — Papadopoulos’ handler told him Moscow had dirt on clinton.

The Professor told defendant PAPADOPOULOS that on that trip he (the Professor) learned that the Russians had obtained “dirt” on then-candidate Clinton. The Professor told defendant PAPADOPOULOS, as PAPADOPOULOS later described to the FBI, that “They [the Russians] have dirt on her”; “the Russians had emails of Clinton”; “they have thousands of emails.”

After learning the Russians had emails on Clinton even before Clinton learned it, Papadopoulos “continued to correspond with Campaign officials,” including his Senior Policy Advisor and a High-Ranking Campaign Official.

From this detail, I’ve seen endless amount of shite premised on what these emails were.

For example, Julian Assange tweeted something bizarre about the emails being the emails released mostly in response to a Jason Leopold FOIA. I thought he was trying to pretend he had no inside information from the Russians?

Others are tying the emails to the registration of the DC Leaks website, which had occurred by this point, but which also released more emails pertaining to Ukraine than Democrats.

Others are suggesting that because no one ever found the emails Hillary deleted from her server, the claim must not be correct because there were no emails of Hillary out there.

Others are tying the comment to Podesta’s emails (he was first hacked on March 19). Or they’re claiming incorrectly that the Papadopoulos report must be wrong because the DNC emails were the ones released early on, not the Podesta ones (in fact, the source for about half the earliest released Guccifer 2.0 “DNC” emails appears to be the Podesta emails, and for most of the rest has not be identified).

Others are pointing out — I’m not sure why — that Russia hacked some Republicans.

All of this suggests that people have this mistaken belief that the general public knows the universe of emails that have been hacked, and that all the hacked emails have been released.

Most annoyingly, most people who know better are saying that Russia started hacking the Democrats in spring 2016. But as the Intelligence Committee Assessment lays out, “In July 2015, Russian intelligence gained access to Democratic National Committee (DNC) networks and maintained that access until at least June 2016.” And the ICA was always deliberately coy about who else the earlier wave of hacking, by APT 29 associated with FSB, may have hacked (I assure you its targets were prominent), to say nothing of the later APT 28 attribution known to be associated with released emails.

And as I was bitching about this, I was reminded by a Kaspersky researcher that APT 29 had spent the previous year hacking the White House and State Department.

All of which is to say, without more evidence (which Mueller has chosen not to give us yet) we cannot conclude anything about Papadopoulos learning, in April, that Russians were talking about having dirt against Hillary with regards to which emails were on offer; we can only conclude that a person in the campaign learned (and probably shared that knowledge, though Mueller is deliberately withholding that detail too) very early on that Russians were offering up emails as campaign dirt.

Update: In related news, the AP got ahold of a list of APT 28’s targets (though doesn’t emphasize, as it should, that these targets may not have been successfully breached).


Some Thoughts On The Manafort Indictment

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The first shoe has dropped in the big indictment watch initiated late Friday with the news that an indictment had been rendered in the Mueller investigation. Paul Manafort and his longtime business partner Rick Gates have been told to self surrender this morning. Manafort has already arrived at the field office for processing as the attached picture reflects. Here is the NYT story:

The charges against Mr. Manafort, President Trump’s former campaign chairman, were not immediately clear but represent a significant escalation in a special counsel investigation that has cast a shadow over the president’s first year in office. Also charged was Mr. Manafort’s former business associate Rick Gates, who was also told to surrender on Monday, the person said.

Mr. Manafort walked into the F.B.I.’s field office in Washington at about 8:15 a.m. with his lawyer.

Mr. Gates is a longtime protégé and junior partner of Mr. Manafort. His name appears on documents linked to companies that Mr. Manafort’s firm set up in Cyprus to receive payments from politicians and businesspeople in Eastern Europe, records reviewed by The New York Times show.

Mr. Manafort had been under investigation for violations of federal tax law, money laundering and whether he appropriately disclosed his foreign lobbying.

The indictment is here and contains twelve counts for conspiracy, conspiracy to launder money, failure to file as foreign agents, failure to file proper financial reports and false statements. Notable also is the notice of forfeiture of both real and personal property, and any derivative property tied thereto.

The fact that the first shoe is Manafort is no surprise. What is surprising, to me at least, is that it does not appear that Manafort’s wife Kathleen was named. This may be a reflection as to the nature of the charges … the charges may only be for activity she was not involved in. Or not. But, make no mistake, she is involved in many of the charges for tax fraud and money laundering; she has solid exposure. Perhaps Mueller and Andrew Weissmann have already discussed this with Manafort and his lawyer, or maybe that is being reserved as leverage in a potential superseding indictment. But it is extremely interesting that she does not appear to be named yet. Stunning actually.

Add into the status of Kathleen Manafort that she and her husband are reported to be near broke as to liquid funds, and their real estate is already heavily leveraged and now subject to civil seizure at this point. And given the fairly recent outing of Manafort having a very expensive mistress half his age, things cannot be too cozy on the Manafort home front. This is total chum in the water for an aggressive prosecutor like Weissmann. Why did he not take it??

NBC News is reporting that the current charges were brought now because of statute of limitation concerns on some of them, and that further charges are absolutely not ruled out. Which makes it even more curious that Kathleen Manafort is not named.

Manafort is a high value target for the Mueller shop. But so too is his lesser known business partner Rick Gates. Gates was not only with Manafort on the Trump Campaign and DNC Convention, but stayed on in a significant role with Trump throughout the campaign and transition, including the inaugural committee, even after Manafort left. Gates, like Manafort, has close foreign ties, including with Russia and Ukraine.

Two people to keep your eye on are Dmitri Firtash and Oleg Deripaska, Putin allies. As as Spencer Ackerman says
in the money “behind pro-Kremlin party in Ukraine that hired Manafort. He’s indicted in IL. Watch what Sessions does”. Spencer is right about that. Here is some bits from Spencer’s report on Manafort, Rick Gates and Firtash back in August:

Asked whether any Manafort deals seemed particularly troubling in retrospect, a senior administration official replied, “You mean like this one?” and appended a link to a 2016 story on Manafort’s alleged attempts to launder a Ukrainian oil and gas billionaire’s ill-gotten fortune through New York real estate—including the Drake.

The Justice Department is now seeking the extradition of that billionaire, Dmitry Firtash, so he can stand trial for a 2013 racketeering indictment in a Chicago federal court. Two weeks ago, in response to a legal filing from Firtash seeking dismissal of the case, the acting U.S. attorney in Chicago termed Firtash and a deputy as “two organized-crime members” and people “identified by United States law enforcement as two upper-echelon associates of Russian organized crime.” Years before the indictment, Firtash was a major moneyman for the Party of Regions in Ukraine, the pro-Kremlin political faction for which Manafort consulted.

Firtash’s alliance with Manafort to acquire the Drake has been reported before. But far less attention has gone to the involvement of another party: Oleg Deripaska, one of the wealthiest men in Russia—and a longtime Putin associate. In 2006, according to the Associated Press, Deripaska signed a $10 million annual contract with Manafort for what Manafort pitched as political and economic efforts inside the U.S. to “greatly benefit the Putin Government.”
But Manafort was more than Deripaska’s political operative. They were business partners, as well.

“When Paul met with Mr. D last month he told Paul to lock in the other financing elements and then come back to him for the final piece of investment,” Gates wrote to two longtime business associates of Deripaska, Anton Vishnevsky and Andrey Zagorskiy, on July 1, 2008.

According to ex-prosecutors, a business relationship between a Kremlin-tied oligarch, an accused gangster and the manager of Donald Trump’s campaign is the sort of arrangement currently occupying Mueller’s time.

“Any financial dealings with Russia and Ukraine would be considered within the scope of [Mueller’s] current mandate,” said Barbara McQuade, the U.S. attorney in Detroit until Trump fired her in March. “With the search warrant executed on Manafort’s home, looking for bank records, tax records, and the like, it seems like this is the kind of thing that Mueller would be interested in.”

To sum up, today’s indictment news is quite a big deal. The spokes that look likely to come out of it lead directly to the biggest Russian interests imaginable. Ones that very likely lead to Trump as well, whether financial or in relation to potential collaboration and conspiracy to influence the 2016 election.

Time will tell where this goes, but this is an extremely significant and rollicking start.


The Boente Resignation and the Reported Charge[s]/Indictment[s]

Back in May, I argued (based on the since proven incorrect assumption that Deputy Attorney General Rod Rosenstein would be unlikely to hire a non-DOJ employee like Robert Mueller as Special Counsel), Dana Boente might be the best solution to investigate the Comey firing.

[T]here’s no reason to believe he isn’t pursuing the investigation (both investigations, into Wikileaks and Trump’s associates) with real vigor. He is a hard ass prosecutor and if that’s what you want that’s what you’d get. His grand jury pool is likely to be full of people with national security backgrounds or at least a predisposition to be hawks.

But — for better and worse — Boente actually has more power than a Special Counsel would have (and more power than Fitz had for the Plame investigation), because he is also in charge of NSD, doing things like approving FISA orders on suspected Russian agents. I think there are problems with that, particularly in the case of a possible Wikileaks prosecution. But if you want concentrated power, Boente is a better option than any AUSA. With the added benefit that he’s The Last USA, which commands some real respect.

Yesterday, at about 6:30, WaPo reported Boente’s resignation. An hour or so later, CNN first reported that Robert Mueller has approved charges against at least one person who might be arrested on Monday. Not long after that, former DOJ spox Matt Miller revealed that Boente told friends this week he was looking forward to returning full time to his US Attorney post after John Demers takes over as the confirmed Assistant Attorney General for National Security.

Miller assumes that means Boente was forced out, rather than chose to announce his departure — he’ll stay until someone is confirmed in his place — after some things he started (such as the investigation into Mike Flynn) are coming to closure.

I don’t believe, contrary to what Rachel Maddow has floated, that Boente is stepping down solely or primarily to be a witness. Mueller already has a list of people who witnessed Trump’s obstruction. He doesn’t need Boente and he’d be better off with Boente at the helm of related investigations than sitting before a grand jury.

So if Boente was forced out, it suggests the charges announced have led to a Trump decision to get rid of Boente, perhaps yet another person he believed would protect him or his close associates.

Or perhaps there’s this. I pointed out two weeks ago that an 2002 OLC memo (one interpreting language that Viet Dinh, who’s a tangential player in this whole affair, wrote) held that the President could order lawyers to share grand jury information with him.

July 22, 2002, memo from the Justice Department’s Office of Legal Counsel, written by Jay Bybee, the author of the infamous torture memos, held that, under the statute, the president could get grand jury information without the usual notice to the district court. It also found that the president could delegate such sharing without requiring a written order that would memorialize the delegation.

Bybee’s memo relies on and reaffirms several earlier memos. It specifically approves two rationales for sharing grand jury information with the president that would be applicable to the Russian investigation. A 1997 memo imagined that the president might get grand jury information “in a case where the integrity or loyalty of a presidential appointee holding an important and sensitive post was implicated by the grand jury investigation.” And a 2000 memo imagined that the president might need to “obtain grand jury information relevant to the exercise of his pardon authority.”

If you set aside Trump’s own role in obstructing the investigation—including the firing of former FBI Director James Comey—these rationales are defensible in certain cases. In fact, the Justice Department has already shared information (though not from a grand jury) with the White House for one of these very reasons. In January, acting Attorney General Sally Yates warned White House Counsel Don McGahn that Russians might be able to blackmail then-National Security Advisor Mike Flynn. As Yates explained in her congressional testimony in May, after Flynn’s interview with the FBI, “We felt that it was important to get this information to the White House as quickly as possible.” She shared it so the White House could consider firing Flynn: “I remember that Mr. McGahn asked me whether or not General Flynn should be fired, and I told him that that really wasn’t our call, that was up to them, but that we were giving them this information so that they could take action.”

A similar situation might occur now that the investigation has moved to a grand jury investigation, if someone remaining in the White House—the most likely candidate is the president’s son-in-law, Jared Kushner—were found to be compromised by Russian intelligence. In Kushner’s case, there are clear hints that he has been compromised, such as when he asked to set up a back channel with the Russians during the transition.

If Trump were to rely on the memo, he might order a Justice Department lawyer to tell him what evidence Mueller had against Kushner, or whether Mike Flynn or former campaign manager Paul Manafort were preparing to cooperate with Mueller’s prosecutors if they didn’t get an immediate pardon. Unlike Yates, Trump would have an incentive to use such information to undercut the investigation into Russia’s meddling.

I argued in that piece that those who currently have visibility onto the investigation — Rod Rosenstein and Boente — would be unlikely to share such information.

But that doesn’t prevent Trump (or Sessions, on his behalf) from asking.

So one possibility is that — as things move towards the next volatile state of affairs — Trump asked Boente to do something he refused.

Update: CNN had the Boente story mid-afternoon, and they say the resignation was long planned. Which may mean the indictment yesterday was something (or things) he had been working on at EDVA for some time.

Update: NBC has yet more conflicting details, reporting that Jeff Sessions’ Chief of Staff told Boente on Wednesday he should submit his resignation so Trump can start the replacement process.


Trump’s Campaign Didn’t Use Cambridge Analytica’s Pyschographics; Did His SuperPAC?

In the wake of news that the head of Cambridge Analytica, Alexander Nix, offered to help Julian Assange with the stolen Hillary emails, Wired has a good story on what Trump’s campaign did with CA. In general, it says that the campaign did not rely on CA’s data, nor did it use CA’s famed psychographics based in part of Facebook data.

Cambridge worked both for the Trump campaign and a Trump-aligned Super PAC. In June 2016, Cambridge sent three staffers, led by chief product officer Matt Oczkowski, to the campaign’s San Antonio office. Oczkowski’s team eventually grew to 13 people, working under Trump digital director Brad Parscale and alongside his staff and outside consultants. According to Parscale, the Cambridge staff provided useful analysis of data about the American electorate. They did not, however, provide the raw data—things like demographic information, contact information, and data about how voters feel about different issues—on which that analysis was done.

That may sound like a small distinction, but it’s a crucial one. Ever since it burst onto the scene of American politics in 2015, Cambridge has trumpeted its massive data trove, boasting 5,000 data points on every American. Cambridge claims to have built extensive personality profiles on every American, which it uses for so-called “psychographic targeting,” based on people’s personality types. It is feared by some, including Hillary Clinton, for conducting a kind of psychological warfare against the American people and dismissed by others as snake oil. Both Parscale and Oczkowski have said repeatedly that the Trump campaign did not use psychographic targeting.

In fact, however, the story suggests Trump’s campaign did use CA data for a month, in July, because the RNC wasn’t yet sharing its data with Trump.

The Cambridge staff helped the campaign identify which voters in the RNC’s data file were most likely to be persuadable, meaning they were undecided but looked likely to swing toward Trump. They also created lists of voters who were most likely to become donors. In August 2016, a Trump aide told me Cambridge was critical to helping the campaign raise $80 million in the prior month, after a primary race that had been largely self-funded by Trump. This was the only period during which Oczkowski’s staff relied on Cambridge’s data, because the RNC was just beginning to share its data with the Trump team.

According to the WSJ, July is when Nix reached out to Assange.

But there’s another implicit revelation in the story: in explaining why he didn’t know about Nix’s outreach to Assange, CA chief product officer Matt Oczkowski, who led CA’s efforts with the campaign, said that they were walled off from CA because of rules prohibiting cooperation between campaigns and SuperPACs.

“I had absolutely no understanding any of this was going on, and I was surprised as everybody else when I saw the story” about Nix’s approach to Assange, Oczkowski says. During the campaign, he says his team was walled off from the rest of Cambridge, because the company was also working with a Trump Super PAC.

Which of course suggests that CA was embedded even more with the SuperPAC.

And that, in turn, raises a slew of other questions. For example, did people who left the Trump campaign — most notably Roger Stone — have any ties with the SuperPAC? After all, Stone had a role in efforts to find Hillary’s emails and surely a bunch of other rat-fuckery (because that’s what rat-fuckers do). So did the wing that was openly asking Russians for help also have closer ties to the more sordid aspects of what CA does?


Cambridge Analytica and the Hillary Emails

Update: I made an error in this post: WSJ has made it clear the emails in question were the DNC emails, not the Hillary ones. I’ve deleted the parts that are inaccurate accordingly.

For some time, I have been interested in the many pieces of evidence that, partly as a result of late GOP ratfucker Peter Smith’s efforts, Julian Assange ended up with something approximating Hillary Clinton’s deleted emails. We know Smith alleged Mike Flynn was involved in the effort. Weev and Chuck Johnson were involved. There are reasons to believe Roger Stone was involved in the effort. And there are reasons to believe Guccifer 2.0 was involved in the effort.

Plus, everyone from Stone to Attorney General Sessions (who “did not recall” whether he had spoken to Russians about email in his SJC testimony) seems to be ignoring that part of the scandal in their denials of colluding with Russians.

And now, Cambridge Analytica — the data firm paid for by far right wing oligarch Bob Mercer that played a big role in getting Trump elected — is involved in it.

The DailyBeast reports that Congressional investigators have found an email from CA head Alexander Nix to some unnamed person (Trump’s digital director Brad Parscale was interviewed by HPSCI yesterday) saying he offered to help Assange with the project.

Nix, who heads Cambridge Analytica, told a third party that he reached out to Assange about his firm somehow helping the WikiLeaks editor release Clinton’s missing emails, according to two sources familiar with a congressional investigation into interactions between Trump associates and the Kremlin. Those sources also relayed that, according to Nix’s email, Assange told the Cambridge Analytica CEO that he didn’t want his help, and preferred to do the work on his own.

Assange, who insists he never says anything to compromise sources, released his own statement saying he rejected the help.

After publication, Assange provided this statement to The Daily Beast: ”We can confirm an approach by Cambridge Analytica and can confirm that it was rejected by WikiLeaks.”

Remember, Stone told the Russian hackers he was soliciting that, allegedly because he couldn’t verify the authenticity of any emails obtained from hackers, they should turn them over to Assange. And both the Nix email and the Assange denial seem to admit that WikiLeaks did, indeed, receive at least one set of those emails. Which would explain why Roger Stone was so certain WikiLeaks was going to drop Clinton Foundation emails — not the Podesta ones that Stone showed no interest in — in October of last year. And it would seem to explain why Guccifer 2.0 had the same belief.

That is, there are a whole bunch of dots suggesting WikiLeaks got something approximating Clinton’s emails, and either because they couldn’t be verified, or because his source was too obviously Russian, or some other unknown reason, he decided not to publish.

If that’s right, all these non-denial denials about the operation seem to point to a confluence of interest around this effort that touched pretty much everyone. And involved Russians, their agents, and GOP ratfuckers willfully working together.

Update: The Trump campaign just did some amazing bus under-throwing of CA. Compare that to this November 10 piece attributing their win to CA.

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Originally Posted @ https://www.emptywheel.net/2016-presidential-election/page/72/