DOJ Flips the Lawfare on Its Head in Russian Troll Case

In part because Judge Dabney Friedrich has only recently attempted to impose some control on the case, the prosecution against the Russian troll company Concord Management waddles slowly towards a scheduled trial date of April 6, 2020. As it has throughout this process, Concord continues to make trollish arguments to gum up the prosecution. Of particular note, it continues its efforts to use the prosecution to obtain as much information as it can, including information about intelligence the government has on Concord as well as on the victims.

Don’t get me wrong. That is their right, and one of the dangers of indicting corporate entities for this kind of crime.

But the government just gave Concord a bit of its own medicine. On Tuesday, it moved to obtain an early trial subpoena to serve on Concord. It seeks information on Concord’s communications with the Internet Research Agency, other shell companies, and a list of co-conspirators. Perhaps most concerning, for Concord’s sometime owner Yevgeniy Prigozhin, it asks for his calendar from January 2014 through February 2018, a calendar that — if it’s accurate — likely includes Vladimir Putin.

Calendar entries for Yevgeniy Prigozhin for the time period January 1, 2014 to February 1, 2018.

The motion uses precisely the legal fact that allowed Concord to respond to this indictment with no risk to any biological person against it, arguing that because it is a corporation it has no Fifth Amendment privilege.

Moreover, even though it is a defendant, Concord cannot avoid responding to a trial subpoena requesting the production of records under the Fifth Amendment because corporations have no privilege against self-incrimination. Braswell v. United States, 487 U.S. 99, 102 (1988).

Understand, the government almost certainly has versions of all the things it asks for on the list. But assuming Friedrich approves the subpoena, Concord will be required to submit its own version of these documents, which the government might be able to prove to be false (adding to Concord’s legal jeopardy and putting Concord’s American lawyers on the hook). It’s also likely the government is forcing Concord to do its own parallel construction.

It’s a subtle move, but one that may shift how this proceeds going forward.

The Parnas Family Wire Transfers Released In The Pues Lawsuit Reveal More Than You Think

Much of what we know about the details of the transactions at the heart of the indictment of Lev Parnas and Igor Fruman was revealed in the lawsuit Michael Pues brought against Parnas for a scam in which Parnas got Pues to invest in a movie project that never came about. Because Parnas owed Pues $500,000, Pues was able to obtain Parnas business and family financial records including wire transfer information. Back in June of this year, the Campaign Legal Center obtained those records and included them in its supplemental filing on their complaint about the $325,000 contribution Parnas and Fruman made to America First Action.

The wire transfer records, which include a full page of incoming transactions and a full page of outgoing transactions, can be found as exhibits at the end of this filing by CLC. An accompanying explainer by CLC gives us this background on how the transaction broke the law (GEP is Global Environmental Partners):

And those documents reveal that GEP never contributed to America First Action.

Wire transfer records show that another LLC managed by Parnas. Aaron Investments I, LLC, transferred $325,000 to America First Action on May 17, 2018. The super PAC never disclosed receiving money from Aaron Investments I, LLC—it instead attributed the contribution to GEP.

It is not clear why Parnas or Fruman asked America First Action to misattribute the contribution, nor is it clear why the super PAC went along with this scheme. But in doing so, America First Action violated the straw donor ban: it accepted a contribution from one entity, and reported it as having come from another entity.

The explainer also gives us this on how the funds came into Aaron Investments I, LLC:

Other wire transfer records show that just two days before making the super PAC contribution, Aaron Investments I, LLC received a $1.26 million transfer from the client trust account of a Miami real estate attorney named Russell S. Jacobs (the funds in a client trust account don’t belong to the attorney: they belong to the attorney’s client.) Absent that transfer, it appears that the LLC would not have had the funds to cover the $350,000 contribution.

So the money used for the contribution appears to have come from Jacobs’ client. We don’t know who that client is–but Jacobs, the real estate attorney, specializes in working with foreign real estate buyers and advising realtors on how to avoid federal requirements aimed at disclosure of foreign buyers who use shell companies to launder money through U.S. real estate.In 2016, for example, he hosted a seminar titled “Avoid the Treasury Trap with Foreign Buyers.”

And yes, when we look at the wire transfer records, we see $1,260.329.80 coming in to Aaron Investments I, LLC on May 15, 2018 from Jacobs:

Only two days later ,on May 17, is the transfer of $325,000 back out to America First Action:

But these records also show us two more transfers out of Aaron Investments I, LLC and five more coming into it. There is one more outgoing wire transfer, and it may be the most interesting. It is marked as coming from a personal account for Svetlana Parnas, who married Lev in 2012. The transaction occurred on May 11, or four days before the $1.26 million transfer came in. It is for $3556.75. The recipient is marked as Victor Imber:

That is a very interesting name. The Daily Beast was first to investigate the contribution to America First Action and this is what they found back on July 19 of 2018:

We end today’s edition with a mystery. Leading pro-Trump super PAC America First Action disclosed nearly $5 million in second-quarter contributions this week. Among its donors was a company called Global Energy Producers LLC (GEP). It donated $375,000 in May, putting the company among the deep-pocketed group’s top 20 donors. But there’s very little indication of what the company does or who’s behind it.

It appears that GEP was incorporated in April in Delaware, a notorious black hole for corporate disclosure. But FEC filings listed its address as a Boca Raton, Florida, property owned by someone named Victor Imber. The FEC has no record of the Russian-born Imber or GEP making any previous federal political contributions. Additional public records indicate that Imber may have rented the property to someone named Michael Braid, who likewise has no other apparent connections to the company or history of political contributions. Braid did not respond to questions about GEP. Numerous calls to Imber went unanswered.

Hmm. So six days before Victor Imber’s address was used as a false location for Global Energy Partners Producers in a false representation that GEP made the contribution to America First Action, Sevetlana Parnas wired Victor Imber a little over $3500. Perhaps that is the actual “rental” of this address that was going on. That stands out as pretty significant.

But there’s more! I’ve heard mention of money going back out to Igor Fruman’s company, and yes, there it is. A transfer of $490,000 went out to FD Import & Export on May 16, only one day after the big transfer came in and a day before the America First Action transfer went out:

It’s especially confusing for Fruman’s company to get money from Aaron Investments I, LLC, because Fruman never shows up in any of the corporate filings for it. For further interest, David Correia was originally the Registered Agent and eventually a member, but Lev Parnas filed a form with the state on October 2, 2017 removing Correia from the company and making Svetlana the Registered Agent. Parnas backdated the form to June 15.

Mysteriously, there’s also a transfer into Aaron Investments I, LLC from FD Import and Export for $11,500 on May 10, five days before the big transfer in from the real estate attorney:

Perhaps Parnas had some expenses in getting the large infusion of funds organized? The indictment describes the $1.26 million as coming from “a private lending transaction between Fruman and third parties”. Other reports in the media have said it was a private loan secured by property Fruman owns. At any rate, we can rest assured that the government knows who the third parties are and there’s a good chance we will find out once the case goes to trial. It should also be noted here that in other reports, Parnas has claimed the $1.26 million came from the sale of a condo.

Getting back to the rest of the wire transfers, we find another outgoing transfer on the same day as the funds going to Fruman’s company, May 17. This transfer is for $12,950 and went to JetSmarter, Inc. That company has been described as an Uber service for private aircraft. This could well be payment for one of the many trips Parnas and/or Fruman made. I’ve tried to see if that time coincides with any of the trips we’ve seen reported, but so far nothing:

But the choice of flight provider is very interesting. Virtually every name associated with JetSmarter is Russian. In 2017, the then-CEO, Edward Gennady Barsky, resigned when he was indicted for embezzling $11 million from the real estate investment company he had just left to come to JetSmarter. The current CEO, who is one of the founders, is Sergey Petrossov, who is only 30. His father spent 15 years in Russian prisons and is best friends with “Vyacheslav Ivankov, a.k.a. Yaponchik, who’s been called the John Gotti of the Russian mob and once had a crew of 100 soldiers in Brighton Beach”. Yes, that Brighton Beach, aka South Brooklyn, where Lev Parnas grew up and got his first job selling co-ops for Fred Trump. I’m pretty sure this isn’t the first time Ivankov’s name has come up in the stories about Parnas and Fruman.

The earliest transaction we see in the wire transfer records is on May 30, 2017. Since it is so far removed in time from these other events, I’m not going to put the name in here from whom the money came, but it was for $30,000 received into Aaron Investments I, LLC. The name is Russian and comes up on searches as a male in his mid-20’s living in South Florida. The name also turns up in an email address for a Toyota dealership’s Russian flyer, but not on that dealership’s current staff list. The name is also associated with a defunct LLC incorporated in January of 2018 and dissolved by the state last month. At any rate, that’s a lot of money for a kid in his mid-20’s to have if he’s also helping to sell Toyotas.

On December 18, 2017, we have income of $10,000 into Aaron Investments I, LLC from WeHold, LLC. The one person affiliated with this company, which is still active, appears to be quite active in commercial real estate.

The final three wire transfers, which all came into Aaron Investments I, LLC within an 18 day period in the middle of January, 2018, totaled $5,300. These transfers came from Aaron G. Parnas. Aaron Parnas is the son of Lev Parnas and would have been in the middle of his first year of law school at the time of these transfers:

Much about Aaron, Lev and Svetlana Parnas can be read here, where we learn that this summer, Aaron interned at the Miami office of Rudy Giuliani’s former law firm. He also managed to get his undergraduate degree simultaneously with his high school diploma, which enabled him to enter law school at the age of 18. He volunteered for the Trump campaign and has said he wants to be president some day.

We of course don’t know the source of these funds Aaron put into one of many entities his father named after him. Some were incorporated around the time Aaron was born. The money could be as innocent as birthday gifts from friends and family. Recall, though that the Parnas family was at that time actively avoiding paying the $500,000 awarded to Pues in the lawsuit. And to put those funds into an entity that was being used to break the law is not a good plan for someone wanting to be president. That is, unless that someone plans to mirror the path of Donald Trump and the illegal schemes Fred used to funnel money to Donald.

The Criminal Investigation into Paul Manafort Was (and May Still be) Ongoing–and Likely Pertains to Trump’s Ukraine Extortion

Robert Mueller was never able to determine whether Paul Manafort entered into a quid pro quo on August 2, 2016, trading — either on his own or with the approval of Trump — promises to help carve up Ukraine to Russia’s liking in exchange for help winning the election.

Mueller never made that determination, in part, because Manafort lied during the period he was purportedly cooperating with the investigation.

Here’s what Mueller did determine was reliable:

First, Manafort and Kilimnik discussed a plan to resolve the ongoing political problems in Ukraine by creating an autonomous republic in its more industrialized eastern region of Donbas,922 and having Yanukovych, the Ukrainian President ousted in 2014, elected to head that republic.923 That plan, Manafort later acknowledged, constituted a “backdoor” means for Russia to control eastern Ukraine.924 Manafort initially said that, if he had not cut off the discussion, Kilimnik would have asked Manafort in the August 2 meeting to convince Trump to come out in favor of the peace plan, and Yanukovych would have expected Manafort to use his connections in Europe and Ukraine to support the plan.925 Manafort also initially told the Office that he had said to Kilimnik that the plan was crazy, that the discussion ended, and that he did not recall Kilimnik asking Manafort to reconsider the plan after their August 2 meeting.926 Manafort said [redacted] that he reacted negatively to Yanukovych sending-years later-an “urgent” request when Yanukovych needed him.927 When confronted with an email written by Kilimnik on or about December 8, 2016, however, Manafort acknowledged Kilimnik raised the peace plan again in that email.928 Manafort ultimately acknowledged Kilimnik also raised the peace plan in January 2017 meetings with Manafort [redacted — pertains to him admitting continuation of the plan into 2018] 929

Second, Manafort briefed Kilimnik on the state of the Trump Campaign and Manafort’s plan to win the election.930 That briefing encompassed the Campaign’s messaging and its internal polling data. According to Gates, it also included discussion of “battleground” states, which Manafort identified as Michigan, Wisconsin, Pennsylvania, and Minnesota.931 Manafort did not refer explicitly to “battleground” states in his telling of the August 2 discussion, [redacted]

Third, according to Gates and what Kilimnik told Patten, Manafort and Kilimnik discussed two sets of financial disputes related to Mana fort’s previous work in the region. Those consisted of the unresolved Deripaska lawsuit and the funds that the Opposition Bloc owed to Manafort for his political consulting work and how Manafort might be able to obtain payment.933

922 The Luhansk and Donetsk People’s Republics, which are located in the Donbas region of Ukraine, declared themselves independent in response to the popular unrest in 2014 that removed President Yanukovych from power. Pro-Russian Ukrainian militia forces, with backing from the Russian military, have occupied the region since 2014. Under the Yanukovych-backed plan, Russia would assist in withdrawing the military, and Donbas would become an autonomous region within Ukraine with its own

Although Mueller included this significant summary of the issue in his Report (and a description of how Rick Gates kept sending polling data to Konstantin Kilimnik, to be shared with Ukrainian oligarchs and Oleg Deripaska’s GRU-linked aide, Viktor Boyarkin), the government nevertheless refused to release the details regarding this dispute that were laid out in court filings and exhibits regarding his breach of his plea deal when WaPo tried to liberate them starting in March. The government explained that, “a number of matters [related to his lies that were referred] to other offices in the Department of Justice … remain ongoing,” and asked for any further matters in WaPo’s challenge be deferred until six months later, which happens to be Tuesday. Judge Amy Berman Jackson never ruled differently, so that’s where things have stood, at least on the public docket, since April, shortly after the Mueller Report was released.

That’s interesting because the government accused Manafort of lying about five different topics. Some are definitely related to each other, and some (as well as his underlying guilty verdicts) are also definitely related to recent events relating to Ukraine and Russia. Which is why it’s worth looking back to learn what Manafort worked hardest to obscure in September and October 2018. Doing so suggests that Trump’s Ukraine call — including the demand for election help and Volodymyr Zelensky implementation of the Steinmeier Formula since — may simply be one step in paying off his campaign debts from 2016. As such, Rudy Giuliani’s involvement with Lev Parnas and Igor Fruman may just be the continuation of what Manafort was pursuing — also being paid by a cut-out system — even after he got sent to jail.

In this post, I’ll look specifically at how the lies Manafort told do and may relate to current events. In a follow-up, I hope to show how the issues for which he was prosecuted also relate to current events, well beyond Trump’s efforts to undermine Manafort’s prosecution to make a pardon easier. Taken together, such analysis will show that the Ukraine scandal is completely inseparable from the Russia one.

Manafort told five lies

Altogether, the government tried to hold Manafort accountable for five lies. Those were:

  1. How he got paid using a kick-back system involving a SuperPAC, Rebuilding America Now, which (on top of violating prohibitions on coordination with the campaign) may have accepted funds from foreigners. Mueller’s team never seemed to figure out how that scheme worked, in part because Manafort never settled on an explanation for the kickbacks. ABJ ruled that Manafort lied about this.
  2. Whether he tried to dissociate Konstantin Kilimnik from his own witness tampering to hide the true role of the Hapsburg Group, some former European leaders Manafort used to lobby for Viktor Yanukovych’s party. Effectively, the government accused Manafort of trying to suggest that Kilimnik wasn’t willfully part of what he was doing during a period that spanned from February (when the actual witness tampering happened) through April 2018 (when Manafort tried to tamper again). ABJ agreed in principle that Manafort had lied about this, but ruled the government did not present a preponderance of the evidence, so didn’t count this against him in sentencing.
  3. Whether he lied to adapt his story to a more exonerating one being told by a Trump flunkie — it’s not clear who — involved in doing something — it’s not clear what — to save Trump’s campaign in the last days during which Manafort managed the campaign. ABJ agreed he had.
  4. What the fuck he was doing on August 2, 2016, and (though this is always unstated) whether his lies to hide repeated discussions to support a Ukrainian “peace” plan between then and April 2018 were an attempt to hide an effort to pay off a quid pro quo tied to assistance winning the election.
  5. Whether Manafort spoke to the Administration after inauguration, either directly or indirectly. ABJ ruled that the government had not provided evidence that Manafort lied about his ongoing communications with the Administration.

Of these lies, the lies about another investigation (lie 3 above) seem to be unrelated to the rest. That’s because they involved, well before the Mueller investigation finished, another part of DOJ, and so almost certainly have nothing to do with Russia or Ukraine. Unsurprisingly, the Trump campaign may have been willing to cheat multiple ways to win the 2016 electionm.

The kickback system (lie 1 above) may or many not relate to the Russian and Ukraine questions. Mueller was never able to sort it out, so it’s not clear what to make of it. For my purposes, however, it’s relevant that Manafort’s claims of working for “free” may turn out to be false. Instead, Paul Manafort — who pled guilty a year ago to laundering money and refusing to register to hide how his influence campaigns in the US were being paid for by Ukrainian oligarchs — may have been paid to run Trump’s campaign by foreigners laundering those payments via various means. That’s significant because, last week, DOJ accused Lev Parnas and Igor Fruman of laundering money (from sources Russian, Ukrainian, and unknown) through various front companies, including one called Global Energy Production apparently created for the function, to engage in influence campaigns relating to Ukraine, effectively the same kind of scheme that Manafort engaged in for years. Particularly given that Rudy claims to be both working for and employing Lev Parnas and Igor Fruman, it raises questions about whether his claims to be working for “free” are also bogus, just a lie to hide how the cut through works.

Kilimnik and Manafort’s efforts to push a Ukraine “peace” plan overlap with their witness tampering

Lies 2 and 4 are obviously related, because Konstantin Kilimnik — as Manafort’s tie to several Ukrainian oligarchs and Oleg Deripaska — is at the center of both of them. Manafort’s efforts to deny that Kiliminik was his co-conspirator may have been motivated by nothing more than a need to permit Kevin Downing to claim, falsely, that Manafort’s guilty plea affirmed no “collusion” between the President’s campaign manager and any Russians had occurred. Not only did ABJ affirmatively state that, whatever Kilimnik’s ties to GRU, his role did amount to a link to Russia.

So Manafort was both trying to lie that he had pled guilty to entering a conspiracy with a Russian suspected of ties to GRU, but he was lying to hide precisely what the nature of any conspiracy that may have tied assistance with the 2016 election to help implementing a Ukraine “peace” plan favored by Russia and Russian-aligned Ukrainian oligarchs.

Still, even within that context, there are details of the two Kilimnik lies that deserve more attention. Consider how the timeline of the two sets of lies intersect in 2018, months after Manafort was first charged, in the weeks and months after Trump had reportedly told allies that he was sure he would survive the Mueller investigation because Manafort would not flip on him.

In the weeks after that claim was published, from February 5 through 10, 2018, Manafort was still trying to deliver on his “New initiative for Peace” (PDF 82).

Later in February, after Mueller unveiled Rick Gates’ cooperation and made it clear he was pursuing another of the vehicles Manafort used to hide his influence operations, the Hapsburg Group, he and Kilimnik reached out to key players in that influence operation (who, unbeknownst to Manafort, had already been cooperating for some time) in an attempt to get them to lie about the influence operation. Those contacts, over Telegram and WhatsApp, took place between February 24 and 28.

But knowing that another part of his past influence operation was under scrutiny still didn’t dissuade Manafort from pursuing that “peace” plan Kilimnik first pitched him on August 2, 2016, amid a discussion of how to get Trump elected. On March 9, he was sending some unnamed person related documents from Kilimnik. (PDF 92ff) The breach hearing and other documents make it clear this was an effort to test the viability of a Ukrainian candidate, including his willingness to implement the “peace” plan.

He was doing it again on March 26. (PDF 97)

Manafort would try to dissociate this polling from the people who were really implementing, including, apparently, trying to pretend that Kilimnik didn’t know about it.

Then — included in the contacts that (the government says) were part of Manafort’s conspiracy to obstruct with Kilimnik, though it’s not clear how — there were more contacts with the Hapsburg Group flacks on April 4.

In fact, Manafort’s efforts to pursue this “peace” plan continued even further, with him hoping that some unnamed person would find documents valuable on May 4. (PDF 95)

There’s a lot more sealed evidence about how relentlessly Manafort pursued a Ukrainian “peace” plan between August 2, 2016 and at least the time he was jailed for bail violations in June 2018 (though remember, the government alleges he continued to communicate in incriminating ways even from jail, via laptops carried by his attorneys). Altogether, there are 38 exhibits documenting Manafort’s false denials of his actions on that front. Because the government says it has (or had) an ongoing investigation into such matters, we don’t get to see what the exhibits are. But Manafort’s lawyer, Kevin Downing (who filled in at Parnas and Fruman’s bail hearing the other day) has seen them. And Downing, reportedly, was sharing details of Manafort’s cooperation with other lawyers in Manafort’s Joint Defense Agreement with the President, including Rudy Giuliani.

Trump “hired” his “free” defense attorney Rudy Giuliani on April 19, 2018, after current Parnas and Fruman attorney John Dowd quit. And once Manafort could no longer pursue  his Ukraine “peace” plan, Rudy got involved in efforts to press for certain concessions in Ukraine.

Manafort’s attempts to communicate with the Administration (excepting via counsel)

Finally, there’s the last alleged lie, the one ABJ said prosecutors did not prove.

It’s not really clear what prosecutors believed Manafort was communicating about, beyond hires (like Steve Calk) in the Administration, because the topic of interest (which in some redactions appears to be too short to refer to Ukraine or Russia) is redacted in the documents released. They only submitted six exhibits to substantiate their claim. But the two unredacted exhibits presented in support of their case are notable.

On May 15, Manafort drew up a document that (the government’s declaration makes clear) included a section titled “Targets,” along with notes indicating Manafort would reach out to people about those targets. (PDF 152)

It might be a coincidence, but Manafort draws up this document right at the beginning of Parnas and Fruman’s efforts to donate big money to key Republicans through their shell company.

And on May 25, someone asked Manafort via WhatsApp whether it was cool to invoke his name if he or she met with Trump the following week, one-on-one. (PDF 156)

In the breach hearing, ABJ summarizes this:

You say that what he said was false because he did in fact agree to have messages sent to the administration on his behalf. And you point to evidence in which he offered to have other people contact the [redacted] on behalf of Mr. [redacted], for example, or to press buttons. But that outreach appears to have been two people outside the administration who themselves would have contacts within. There is some evidence that Mr. Gates said that Mr. Manafort said he still had connections, and that another individual asked Mr. Manafort if he, that individual, could tell [redacted (the President)] he was still close to Manafort.

And you have his involvement in lobbing with respect to [redacted], and Exhibit 404 is this memo summarizing the group’s plan that say, somewhat ambiguously, [redacted] will find out if [redacted] did her bit and get her to call [redacted] And it’s not even crystal clear that he was supposed do that by calling her.

In explaining the lie, Greg Andres makes it clear that Manafort was also representing in March that he had the ability to send messages to someone (probably Trump) in the Administration.

Significantly, Manafort lawyer Richard Westling dismisses that anyone would value Manafort’s advice or support at a time when he was already under indictment.

he was already under indictment at this point and, you know, the idea that he was going to pass a message and it would have some value, frankly, no offense to Mr. Manafort, but I can’t see that.

It’s notable that Downing did not make that claim because — as recent reports make clear — Rudy continued to consult Manafort on these Ukraine issues even after he went to prison, through Downing.

Especially since, in all its representations about these ongoing communications, the government makes clear,

for the purposes of proving the falsity of Manafort’s assertions in this section, the government is not relying on communications that may have taken place, with Manafort’s consent, through his legal counsel. We previously so advised the defense.

It’s clear the government knew Manafort continued to communicate with Trump via Downing and Rudy; they just weren’t going to reveal that they had pierced privilege or what they had learned.

The Ukrainian grifters timeline

Now consider how the timelines of Manafort’s relentless pursuit of a “peace” deal, his witness tampering with Kilimnik, and his efforts to communicate with Trump overlap with the known timeline of the Ukrainian grifters (I’ll continue to update this). It suggests that Parnas and Fruman kicked in their influence operations just as Manafort’s legal problems made him unable to do so.

February 5-10, 2018: Manafort working on “a new Peace initiative”

February 19, 2018: Manafort email pertaining to “peace” plan

February 21, 2018: Manfort emails document pertaining to “peace” plan to undisclosed recipients

February 23, 2018: Mueller reveals Rick Gates’ plea deal

February 24-28, 2018: Kilimnik and Manafort attempt to script testimony of Hapsburg Group flacks

March 2, 2018: Pentagon issues final approval to send Javelin missiles to Ukraine

March 3, 2018: Fruman participates in high donor meeting at Mar-a-Lago

March 9, 2018: Manafort working on polling regarding Ukraine “peace” plan for potential client

March 26, 2018: Manafort working on Ukraine “peace” plan

April 4, 2018: Kilimnik again attempts to witness tamper with Hapsburg Group flacks

Early April, 2018: Reported halt to Ukraine’s cooperation with Mueller

April 11, 2018: Parnas and Fruman form Global Energy Producers

April 19, 2018: Trump “hires” “free” defense attorney Rudy Giuliani

April 29, 2018: Someone first solicits help creating a website for GEP

May 2, 2018: NYT reports that Ukraine has stopped cooperating with Mueller probe

May 4, 2018: Manafort sends unnamed person information on Ukraine plan

May 8, 2018: Parnas and Fruman meet with Trump and seven other people “about preparations for victory in the midterm elections;” Fruman raises “America’s support for Israel and Ukraine,” topics about which “Trump … was absolutely positive”

May 15, 2018: Real estate lawyer Russell Jacobs deposits $1.26 million pass through funds into Aaron Investments LLC

May 15, 2018: Manafort document lists “Targets” and reflects commitment on his part to reach out about them.

May 17, 2018: Parnas LLC Aaron Investments donates $325,000 to Trump PAC, America First Action in the name of GEP

May 21, 2018: Parnas has breakfast with Don Jr and Tommy Hicks Jr, head of America First

May 24, 2018: Someone again solicits help creating a website for GEP

June 8, 2018: Manafort charged with witness tampering; prosecutors move to revoke bail

June 21, 2018: GEP donates $50K to Ron DeSantis

September 14, 2018: Manafort enters into what would be a failed plea agreement, admitting he laundered money and influence on behalf of Ukrainian oligarchs, but entering into a five week process of learning what prosecutors know

Mid-to-late 2018: Rudy referred to Parnas and Fruman for work with “Fraud Guarantee”

Around November 2018: Rudy starts working for Parnas and Fruman

Late 2018: While Parnas and Rudy were eating together, “someone” approached Rudy and gave him information about Ukraine

January 8, 2019: Manafort lawyer’s redaction fail reveals that Manafort was asked about the Ukraine “peace” plan and that Manafort was lying about whether it got raised while working on the campaign and also that he was being asked about ongoing contacts with the Administration

Background

I have laid out the structure of Manafort’s lies in these posts:

The primary sources for them are these documents:

Rudy Giuliani Represents Fraud Guarantee Founder

Marcy has already hit the announced arrests of Rudy Giuliani clients Lev Parnas and Igor Fruman as they were about to leave the country. In reading the New York Times article about the arrests and indictment, I noticed that, at least at the time of that reading, David Correia,  one of the four men indicted, was still not in custody.

I hadn’t heard of Correia before, so I did some digging. It would appear that Correia’s Twitter handle is @DavidCorreia14. The account appears to have been taken down, but there was still a cached version on Google.

It would be easy to mistake his tweets for any standard Trump bot retweeting all of the usual conspiracy theories, rather than realizing he was in the middle of some of their more nefarious schemes.

A couple of weeks ago, the Miami Herald ran a story on Parnas and Fruman, where we see that they are basically con artists with a trail of lawsuits following them around. Most hilariously, Parnas had the gall to incorporate a company under the name Fraud Guarantee. Significantly, when I started searching around to find out more about David Correia, he turned out to be a co-founder of Fraud Guarantee:

Hmmm. Campaign finance indictment. Background in commercial mortgages. Founder of Fraud Guarantee. It’s not clear to me how Correia originally hooked up with Parnas and Fruman, but the commercial real estate angle and propensity for illegal activity sure seems like a good fit with the Trump organization.

It’s really hard to get over just how much outright gall it took for Parnas and Correia to name their company Fraud Guarantee. And for Parnas to be represented by Rudy Guiliani, who has been tasked with obtaining fraudulent dirt on the Biden family for Trump, the circle just keeps closing in on itself. (Note added as I was proofing the post: it appears that the Fraud Guarantee website has been scrubbed. Glad I got those screengrabs!)

As a postscript for those of us in Florida, it’s also especially juicy that the fraudulent shell company set up to funnel money to political campaigns, Global Energy Producers, also made a $50,000 contribution to the campaign to elect currentFlorida Governor Ron DeSantis.

DOJ Confirms that Trump’s Anti-Biden Propagandists Were in the Employ of a Russian

Lev Parnas and Igor Fruman were arrested last night as they tried to flee the country in advance of Congressional subpoenas for their testimony. These are the men who, their recently hired attorney, former Trump personal attorney John Dowd, described how intertwined their actions were with the President’s in an effort to excuse them from testifying in the House impeachment inquiry.

Messrs. Parnas and Fruman assisted Mr. Giuliani in connection with his representation of President Trump. Mr. Parnas and Mr. Fruman have also been represented by Mr. Giuliani in connection with their personal and business affairs. They also assisted Joseph DiGenova and Victoria Toensing in their law practice. Thus, certain information you seek in your September 30, 2019, letter is protected by the attorney-client, attorney work product and other privileges.

The indictment charging Parnas and Fruman with multiple counts of conspiracy lays out how they pursued policies pushed by a Ukrainian politician (and, not coincidentally, Trump), in part by getting Congressman Pete Sessions’ help.

[T]hese contributions were made for the purpose of gaining influence with politicians so as to advance their own personal financial interests and the political interests of Ukrainian government officials, including at least one Ukrainian government official with whom they were working. For example, in or about May and June 2018, PARNAS and FRUMAN committed to raise $20,000 or more for a then-sitting U.S. Congressman [Sessions], who had also been the beneficiary of approximately $3 million in independent expenditures by [one of the PACs they ran] during the 2018 election cycle. PARNAS and FRUMAN had met [Sessions] at an event sponsored by an independent expenditure committee to which FRUMAN had recently made substantial contribution. During the 2018 election cycle, [Sessions] had been the beneficiary of approximately $3 million in independent expenditures by [their PAC]. At and around the same time PARNAS and FRUMAN committed to raising those funds for [Sessions], PARNAS met with [Sessions] and sought [his] assistance in causing the U.S. Government to remove or recall the then-U.S. Ambassador to Ukraine []. PARNAS’s efforts to remove the Ambassador were conducted, at least in part, at the request of one or more Ukrainian government officials.

This, of course, is the recall of Marie Yovanovitch, that Trump discussed in his quid pro quo call with Volodymyr Zelensky.

What the indictment is less clear about is who the Russian bankrolling all this is. A key part of Parnas and Fruman’s crime is that they were laundering funds for “a foreign national Russian citizen and businessman.”

From in or about June 2018 through April 2019, LEV PARNAS, IGOR FRUMAN, DAVID CORREIA, and ANDREY KUKUSHKIN, the defendants, and others known and unknown, conspired to make political donations — funded by Foreign National-1 [the Russian] — to politicians and candidates for federal and State office to gain influence with candidates as to policies that would benefit a future business venture.

Putting together the Dowd letter and the indictment, it becomes clear that the John Solomon propaganda that Trump was pushing (and which Rudy sent to Mike Pompeo’s State Department as part of the effort to get rid of Yovanovitch and which Lindsey Graham just invited Rudy to come present to the Senate Judiciary Committee) was funded by an as yet unnamed Russian.

It was only a matter of time before Trump was implicated in ConFraudUs with Russia.

Update: Now add this passage from Trump’s call to Zelensky, and it becomes hard to see how Trump is not implicated in the charged conspiracy.

President Zelenskyy: Yes it is. very important for me and everything that you just mentioned earlier. For me as a President, it is very important and we are open for any future cooperation. We are ready to open a new page on cooperation in relations between the United States and Ukraine. For that purpose, I just recalled our ambassador from United States and he will be replaced by a very competent and very experienced ambassador who will work hard on making sure that our two nations are getting closer. I would also like and hope to see him having your trust and your confidence and  have personal relations with you so we can cooperate even more so. I will personally tell you that one of my assistants spoke with Mr. Giuliani just recently and we are hoping very much that Mr. Giuliani will be able to travel to Ukraine and we will meet once he comes to Ukraine. I just wanted to assure you once again that you have nobody but friends around us. I will make sure that I surround myself with the best and most experienced people. I also wanted to tell you that we are friends. We are great friends and you Mr. President have friends in our country so we can continue our strategic partnership. I also plan to surround myself with great people and in addition to that investigation [into the source of the Russian investigation], I guarantee as the President of Ukraine that all the investigations will be done openly and candidly. That I can assure you.

The Pre·sident: Good because I heard you had a prosecutor who was very good and he was shut down and that’s really unfair. A lot of people are talking about that, the way they shut your very good prosecutor down and you had some very bad people involved. Mr. Giuliani is a highly respected man. He was the mayor of New York Ci:ty, a great mayor, and I would like him to call you. I will ask him to call you along with the Attorney General. Rudy very much knows what’s happening and he is a very capable guy. If you could speak to him that would be great. The former ambassador from the United States, the woman, was bad news and the people she was dealing with in the Ukraine were bad news so I just want to let you know that. The otter thing, There’s a lot of. talk about Biden’s son, that Biden stopped the prosecution and a lot of people want to find out about that so whatever you can do with the Attorney General would be great. Biden went around bragging that he stopped the prosecution so if you can look into it … It sounds horrible to me.

President Zelenskyy: I wanted to tell ·you about the prosecutor. First of all I understand and I’m knowledgable about the situation. Since we have won· the absolute majority in our Parliament, the next prosecutor general will be 100% my person, my candidate, who will be approved, by the parliament and will start as a new prosecutor in September. He or she will look into the situation, specifically to the company that you mentioned in this issue. The issue of the investigation of the case is actually the issue of making sure to restore the honesty so we will take care of that and will work on the investigation of the case. On top of that, I would kindly ask you if you have any additional information that you can provide to us, it would be very helpful for the investigation to make sure that we administer justice in our country with regard to the Ambassador to the United States from Ukraine as far as I recall her name was Ivanovich. It was great that you were the first one. who told me that she was a bad ambassador because I agree with you 100%. Her attitude towards me was far from the best as she admired the previous President and she was on his side. She would not accept me as a new President well enough.

The President: Well, she’s going to go through some things.

At a minimum, this makes it clear that the withdrawal of Yovanovitch — which was done with the involvement of Rudy and Parnas –was tied up in the quid pro quo extorted on that call. Indeed, Trump’s suggestion she was “going to go through some things” suggests far worse.

But it is also at least likely that one of the two prosecutors Rudy was pitching was the Ukrainian involved mentioned elsewhere in this indictment.

All of which provides substantial evidence that the quid pro quo Trump engaged in on July 24 — the day after Mueller testified before Congress — is just a continuation of the conspiracy charged in the Parnas and Fruman indictment.

The Commander-in-Chief Keeps Instructing His National Security Officials Not to Protect the Country

One of the most alarming passages in the Mueller Report describes how, in an effort to get Corey Lewandowski to convince Jeff Sessions to reverse his recusal in the Russian investigation, Trump suggested that Mueller could be limited to investigating future election hacks. (h/t to TC who has been emphasizing this passage)

During the June 19 meeting, Lewandowski recalled that, after some small talk, the President brought up Sessions and criticized his recusal from the Russia investigation.605 The President told Lewandowski that Sessions was weak and that if the President had known about the likelihood of recusal in advance, he would not have appointed Sessions.606 The President then asked Lewandowski to deliver a message to Sessions and said “write this down.” 607 This was the first time the President had asked Lewandowski to take dictation, and Lewandowski wrote as fast as possible to make sure he captured the content correctly.608 The President directed that Sessions should give a speech publicly announcing:

I know that I recused myself from certain things having to do with specific areas. But our POTUS . .. is being treated very unfairly. He shouldn’t have a Special Prosecutor/Counsel b/c he hasn’t done anything wrong. I was on the campaign w/ him for nine months, there were no Russians involved with him. I know it for a fact b/c I was there. He didn’t do anything wrong except he ran the greatest campaign in American history.609

The dictated message went on to state that Sessions would meet with the Special Counsel to limit his jurisdiction to future election interference:

Now a group of people want to subvert the Constitution of the United States. I am going to meet with the Special Prosecutor to explain this is very unfair and let the Special Prosecutor move forward with investigating election meddling for future elections so that nothing can happen in future elections.610

The President said that if Sessions delivered that statement he would be the “most popular guy in the country.”6 11 Lewandowski told the President he understood what the President wanted Sessions to do.612

In June 2017, the Commander-in-Chief of the United States suggested that the FBI should not investigate a historic cyberattack by an adversary on the United States. The investigation Trump was obstructing was not just of his own conduct, but also that of Russia.

That revelation puts two other events in dramatically different light.

First, recall that when Congress was considering bills to ensure election integrity last year, Trump pre-empted the effort with an Executive Order imposing a two step review, after the fact, to see if foreign adversaries had attempted to interfere in the election. First, ODNI does a report on the election, then he delivers it to other Executive Branch Officials. Then DHS Secretary and the Attorney General deliver a report based on that describing whether the effort to interfere had had a material effect. That report, too, just gets delivered to Executive Branch officials.

Section 1. (a) Not later than 45 days after the conclusion of a United States election, the Director of National Intelligence, in consultation with the heads of any other appropriate executive departments and agencies (agencies), shall conduct an assessment of any information indicating that a foreign government, or any person acting as an agent of or on behalf of a foreign government, has acted with the intent or purpose of interfering in that election. The assessment shall identify, to the maximum extent ascertainable, the nature of any foreign interference and any methods employed to execute it, the persons involved, and the foreign government or governments that authorized, directed, sponsored, or supported it. The Director of National Intelligence shall deliver this assessment and appropriate supporting information to the President, the Secretary of State, the Secretary of the Treasury, the Secretary of Defense, the Attorney General, and the Secretary of Homeland Security.

(b) Within 45 days of receiving the assessment and information described in section 1(a) of this order, the Attorney General and the Secretary of Homeland Security, in consultation with the heads of any other appropriate agencies and, as appropriate, State and local officials, shall deliver to the President, the Secretary of State, the Secretary of the Treasury, and the Secretary of Defense a report evaluating, with respect to the United States election that is the subject of the assessment described in section 1(a):

(i) the extent to which any foreign interference that targeted election infrastructure materially affected the security or integrity of that infrastructure, the tabulation of votes, or the timely transmission of election results; and

(ii) if any foreign interference involved activities targeting the infrastructure of, or pertaining to, a political organization, campaign, or candidate, the extent to which such activities materially affected the security or integrity of that infrastructure, including by unauthorized access to, disclosure or threatened disclosure of, or alteration or falsification of, information or data.

The report shall identify any material issues of fact with respect to these matters that the Attorney General and the Secretary of Homeland Security are unable to evaluate or reach agreement on at the time the report is submitted. The report shall also include updates and recommendations, when appropriate, regarding remedial actions to be taken by the United States Government, other than the sanctions described in sections 2 and 3 of this order.

Predictably, when the deadlines for these reports came due after the mid-term elections last year, the Trump Administration balked at sharing all this reporting with the Senate Intelligence Committee.

Then there’s this NYT report revealing that the Mick Mulvaney told DHS Secretary Kirstjen Nielsen not to involve the Commander-in-Chief in any effort to keep this country’s elections safe, which (the report implicitly suggests) made it far more difficult for Nielsen to make protecting elections a priority.

Ms. Nielsen left the Department of Homeland Security early this month after a tumultuous 16-month tenure and tensions with the White House. Officials said she had become increasingly concerned about Russia’s continued activity in the United States during and after the 2018 midterm elections — ranging from its search for new techniques to divide Americans using social media, to experiments by hackers, to rerouting internet traffic and infiltrating power grids.

But in a meeting this year, Mick Mulvaney, the White House chief of staff, made it clear that Mr. Trump still equated any public discussion of malign Russian election activity with questions about the legitimacy of his victory. According to one senior administration official, Mr. Mulvaney said it “wasn’t a great subject and should be kept below his level.”

Even though the Department of Homeland Security has primary responsibility for civilian cyberdefense, Ms. Nielsen eventually gave up on her effort to organize a White House meeting of cabinet secretaries to coordinate a strategy to protect next year’s elections.

[snip]

Ms. Nielsen grew so frustrated with White House reluctance to convene top-level officials to come up with a governmentwide strategy that she twice pulled together her own meetings of cabinet secretaries and agency heads. They included top Justice Department, F.B.I. and intelligence officials to chart a path forward, many of whom later periodically issued public warnings about indicators that Russia was both looking for new ways to interfere and experimenting with techniques in Ukraine and Europe.

[snip]

A second senior administration official said Ms. Nielsen began pushing after the November midterms for the governmentwide efforts to protect the 2020 elections, but only after it became increasingly clear that she had fallen out of Mr. Trump’s favor for not taking a harder line against immigration.

That official said Ms. Nielsen wanted to make election security a top priority at meetings of Mr. Trump’s principal national security aides, who resisted making it a focus of the discussions given that the 2020 vote was, at the time, nearly two years away.

Trump’s refusal to protect elections accompanies a de-emphasis — one enforced by John Bolton — on cybersecurity generally.

This is, quite literally, a case where the Commander-in-Chief is refusing to take the action necessary to protect the country from being attacked in the same way were most recently were attacked.

Update: Earlier this week Politico reported on the effects of a reorganization in Office of Management and Budget’s cybersecurity office before Mulvaney left OMB to become Chief of Staff.

Few Americans may have heard of the Office of the Federal Chief Information Officer, but the unit inside the Office of Management and Budget coordinates tech improvements across the government, helping agencies boost cybersecurity and manage technology and cybersecurity budgets that totaled $105 billion in the past fiscal year.

But many OFCIO employees are overwhelmed by unclear and changing priorities, while others are simply checked out or feeling increasingly marginalized, according to an internal February staff survey that POLITICO obtained, along with data from an annual governmentwide report and interviews with a current OMB employee, five former OFCIO employees and three former senior federal officials familiar with the office.

The unit is grappling with “high turnover,” “a lot of infighting,” a “crushing workload” and “inaction from leadership,” said the current employee, who — like others interviewed for this story — requested anonymity to discuss sensitive personnel matters.

“Things do slip through the cracks,” the OMB employee said. OFCIO’s guidance “impacts the long-term implementation strategy out in the agencies,” and if that’s lacking, there will be “a debilitating effect on overall cybersecurity in the long run,” the person said, adding that there was “real concern at the staff level that if this continues, something bad will happen and we won’t be ready for it.”

[snip]

“This organization looks like it’s in free fall,” said a former senior federal IT official who worked closely with the office.

[snip]

[A] November reorganization appeared to cause significant confusion and discontent among employees. It replaced a structure built around three core units — agency oversight, cybersecurity and policy development — with one centered on “workstreams” for activities such as cybersecurity risk and data strategy.

But the reorganization was “built on the fly” and poorly explained, said a former staffer. More than 80 percent of survey respondents said it was unclear how the reorganization improved office communication.

Adding to these woes is significant frustration with OFCIO’s senior leaders, especially Kent, a former Ernst & Young consultant who took over the office in March 2018 after the team went more than a year without a leader.

Kent, who lacks a cybersecurity or IT background, has fostered “a closed-door culture,” the current OMB employee said.

As I disclosed last July, I provided information to the FBI on issues related to the Mueller investigation, so I’m going to include disclosure statements on Mueller investigation posts from here on out. I will include the disclosure whether or not the stuff I shared with the FBI pertains to the subject of the post. 

Trump Administration Still Gaming Intelligence on Election Interference

Last month, I tracked a disturbing exchange between Dan Coats and Martin Heinrich regarding whether any of the efforts to tamper with this year’s election succeeded.

At the Global Threats hearing on January 29, Heinrich asked Coats whether the committee was going to get the results of the assessment of whether any of the tampering had had an effect. A week later, DOJ and DHS issued a report saying “no harm no foul.” Then 10 days later, the entire Senate Intelligence Committee wrote Coats a letter asking for DNI’s findings.

That troubling exchange took place against another one, revealed in a letter sent yesterday from Heinrich, Ron Wyden, and Kamala Harris.

On September 26, 2018, Trump mucked up a UN meeting by claiming, without evidence, that China was tampering in the 2018 midterms. The Democratic Senators apparently asked Dan Coats about it, and he issued a classified response on October 31. During the same Global Threat Hearing where Heinrich raised the general assessment in open session, the Senators raised the China accusation in the closed session. In response, Coats sent a letter on February 8, basically covering for Trump.

As early as August, during a press conference, I stated that Russia was not the only country that had an interest in trying to influence our domestic political environment and that we knew others had the capability and may be considering influence activities. On October 19, 2018 and again on November 5, 2018 my office, in conjunction with the Federal Bureau of Investigation, Department of Justice, and Department of Homeland Security, released public statements detailing ongoing campaigns by Russia, China, and other foreign actors, including Iran, to influence public sentiment and government policies and undermine democratic institutions.

But that’s not what the Senators were getting at in their request. In yesterday’s letter, they noted,

The October 31, 2018, letter includes important information about the 2018 elections, as well as the 2016 elections, which your February 8, 2019 letter did not address.

That is, there’s something — apparently about both the 2018 and the 2016 elections — that Coats is hiding, information that surely would embarrass Trump.

And Coats isn’t giving it to us.

Given that just Democratic Senators are on the request (unlike the earlier request), this one seems to amount to Coats running partisan interference to prevent Trump from being embarrassed. Which, if true, would mean that the head of the Intelligence Community is using classification to hide the fact that the President is making bullshit claims about our elections.

Dan Coats Still Refusing to Provide the Evidence that Russia Didn’t Affect the Election

Last month, I noted a troubling exchange between Martin Heinrich, Dan Coats, and Richard Burr in the Global Threats Hearing.

Martin Heinrich then asked Coats why ODNI had not shared the report on election tampering even with the Senate Intelligence Committee.

Heinrich: Director Coats, I want to come back to you for a moment. Your office issued a statement recently announcing that you had submitted the intelligence community’s report assessing the threats to the 2018 mid-term elections to the President and to appropriate Executive Agencies. Our committee has not seen this report. And despite committee requests following the election that the ODNI brief the committee on any identified threats, it took ODNI two months to get a simple oral briefing and no written assessment has yet been provided. Can you explain to me why we haven’t been kept more fully and currently informed about those Russian activities in the 2018–

Chairman Richard Burr interrupts to say that, in fact, he and Vice Chair Mark Warner have seen the report.

Burr: Before you respond, let me just acknowledge to the members that the Vice Chairman and I have both been briefed on the report and it’s my understanding that the report at some point will be available.

Coats then gives a lame excuse about the deadlines, 45 days, then 45 days.

Coats: The process that we’re going through are two 45 day periods, one for the IC to assess whether there was anything that resulted in a change of the vote or anything with machines, uh, what the influence efforts were and so forth. So we collected all of that, and the second 45 days — which we then provided to the Chairman and Vice Chairman. And the second 45 days is with DHS looking, and DOJ, looking at whether there’s information enough there to take — to determine what kind of response they might take. We’re waiting for that final information to come in.

After Coats dodges his question about sharing the report with the Committee, Heinrich then turns to Burr to figure out when they’re going to get the information. Burr at least hints that the Executive might try to withhold this report, but it hasn’t gotten to that yet.

Heinrich: So the rest of us can look forward — so the rest of us can then look forward to reading the report?

Coats: I think we will be informing the Chairman and the Vice Chairman of that, of their decisions.

Heinrich: That’s not what I asked. Will the rest of the Committee have access to that report, Mr. Chairman?

[pause]

Heinrich: Chairman Burr?

Burr; Well, let me say to members we’re sort of in unchartered ground. But I make the same commitment I always do, that anything that the Vice Chairman and myself are exposed to, we’ll make every request to open the aperture so that all members will be able to read I think it’s vitally important, especially on this one, we’re not to a point where we’ve been denied or we’re not to a point that negotiations need to start. So it’s my hope that, once the final 45-day window is up that is a report that will be made available, probably to members only.

Coming as it did in a hearing where it became clear that Trump’s spooks are helpless in keeping Trump from pursuing policies that damage the country, this exchange got very little attention. But it should!

DOJ missed its 45 day plus 45 day deadline of reporting whether any election tampering had had an effect. But just by one day. The day after their deadline, the Big Dick Toilet Salesman Matt Whitaker and serial liar Kirstjen Nielsen gave Trump a report claiming that any tampering had not had any impact on the election.

Although the specific conclusions within the joint report must remain classified, the Departments have concluded there is no evidence to date that any identified activities of a foreign government or foreign agent had a material impact on the integrity or security of election infrastructure or political/campaign infrastructure used in the 2018 midterm elections for the United States Congress. This finding was informed by a report prepared by the Office of the Director of National Intelligence (ODNI) pursuant to the same Executive Order and is consistent with what was indicated by the U.S. government after the 2018 elections.

While the report remains classified, its findings will help drive future efforts to protect election and political/campaign infrastructure from foreign interference.

Then, today, CyberComm boasted that that they had helped deter Russia during the midterms.

Senators from both political parties on Thursday praised the military’s cyber force for helping secure last year’s midterm elections, with one suggesting it was largely due to U.S. Cyber Command that the Russians failed to affect the 2018 vote.

“Would it be fair to say that it is not a coincidence that this election went off without a hitch and the fact that you were actively involved in the protection of very important infrastructure?” Sen. Mike Rounds (R-S.D.) asked Gen. Paul Nakasone, the command’s leader, at a hearing of the Senate Armed Services Committee.

Military officials have said new authorities, approved over the last year, enabled CyberCom to be more aggressive — and effective — in what they privately say was an apparent success. Nakasone, who also heads the National Security Agency, stopped short of saying it was CyberCom that made the difference, telling Rounds that safeguarding the election was the agencies’ “number-one priority.”

But ODNI is still not providing SSCI — the people who are supposed to see such evidence — proof. Heinrich wrote Dan Coats a letter, signed by every member of SSCI,

Your office a statement in December that you had submitted the Intelligence Committee’s report assessing threats to the 2018 elections to the president and appropriate executive agencies. This month, the acting Attorney General and the Secretary of Homeland Security announced they had submitted their joint report evaluating the impact of any foreign interference on election infrastructure for the infrastructure of political organizations during the midterm elections.

While the agencies provided brief unclassified summaries of the reports’ findings, the Select Committee on Intelligence has not been provided either report. We request that you provide to all Committee Members and cleared staff both classified reports required by EO 13848 as soon as possible. Those reports are necessary for the Committee to meet its mission and charter to conduct vigorous oversight over the intelligence and intelligence-related activities of the United States Government.

They’re clearly hiding something. The question is whether it’s that Trump didn’t try to prevent tampering, or that some of the efforts — included the known effort to hack Claire McCaskill — actually did have an effect.

 

45 Days Plus 45 Days: Is Trump Violating His Own Election Tampering Executive Order?

As I noted last week, along with all the issues on which Trump’s top spooks clearly disagreed with him at last week’s Worldwide Threat Assessment hearing, there was also a remarkable exchange regarding a report mandated by a Trump Executive Order on election interference last year. Effectively, it became clear that Director of National Intelligence doesn’t want to brief the Intelligence Committee on whether Russia interfered with last year’s election.

Martin Heinrich: Director Coats, I want to come back to you for a moment. Your office issued a statement recently announcing that you had submitted the intelligence community’s report assessing the threats to the 2018 mid-term elections to the President and to appropriate Executive Agencies. Our committee has not seen this report. And despite committee requests following the election that the ODNI brief the committee on any identified threats, it took ODNI two months to get a simple oral briefing and no written assessment has yet been provided. Can you explain to me why we haven’t been kept more fully and currently informed about those Russian activities in the 2018–

Richard Burr: Before you respond, let me just acknowledge to the members that the Vice Chairman and I have both been briefed on the report and it’s my understanding that the report at some point will be available.

Dan Coats: The process that we’re going through are two 45 day periods, one for the IC to assess whether there was anything that resulted in a change of the vote or anything with machines, uh, what the influence efforts were and so forth. So we collected all of that, and the second 45 days — which we then provided to the Chairman and Vice Chairman. And the second 45 days is with DHS looking, and DOJ, looking at whether there’s information enough there to take — to determine what kind of response they might take. We’re waiting for that final information to come in.

Heinrich: So the rest of us can look forward — so the rest of us can then look forward to reading the report?

Coats: I think we will be informing the Chairman and the Vice Chairman of that, of their decisions.

Heinrich: That’s not what I asked. Will the rest of the Committee have access to that report, Mr. Chairman?

[pause]

Heinrich: Chairman Burr?

Burr; Well, let me say to members we’re sort of in unchartered ground. But I make the same commitment I always do, that anything that the Vice Chairman and myself are exposed to, we’ll make every request to open the aperture so that all members will be able to read I think it’s vitally important, especially on this one, we’re not to a point where we’ve been denied or we’re not to a point that negotiations need to start. So it’s my hope that, once the final 45-day window is up that is a report that will be made available, probably to members only.

The reporting requirements come from this language:

Section 1. (a) Not later than 45 days after the conclusion of a United States election, the Director of National Intelligence, in consultation with the heads of any other appropriate executive departments and agencies (agencies), shall conduct an assessment of any information indicating that a foreign government, or any person acting as an agent of or on behalf of a foreign government, has acted with the intent or purpose of interfering in that election. The assessment shall identify, to the maximum extent ascertainable, the nature of any foreign interference and any methods employed to execute it, the persons involved, and the foreign government or governments that authorized, directed, sponsored, or supported it. The Director of National Intelligence shall deliver this assessment and appropriate supporting information to the President, the Secretary of State, the Secretary of the Treasury, the Secretary of Defense, the Attorney General, and the Secretary of Homeland Security.

(b) Within 45 days of receiving the assessment and information described in section 1(a) of this order, the Attorney General and the Secretary of Homeland Security, in consultation with the heads of any other appropriate agencies and, as appropriate, State and local officials, shall deliver to the President, the Secretary of State, the Secretary of the Treasury, and the Secretary of Defense a report evaluating, with respect to the United States election that is the subject of the assessment described in section 1(a):

(i) the extent to which any foreign interference that targeted election infrastructure materially affected the security or integrity of that infrastructure, the tabulation of votes, or the timely transmission of election results; and

(ii) if any foreign interference involved activities targeting the infrastructure of, or pertaining to, a political organization, campaign, or candidate, the extent to which such activities materially affected the security or integrity of that infrastructure, including by unauthorized access to, disclosure or threatened disclosure of, or alteration or falsification of, information or data.

The report shall identify any material issues of fact with respect to these matters that the Attorney General and the Secretary of Homeland Security are unable to evaluate or reach agreement on at the time the report is submitted. The report shall also include updates and recommendations, when appropriate, regarding remedial actions to be taken by the United States Government, other than the sanctions described in sections 2 and 3 of this order.

And if DOJ and Homeland Security do find someone tampered with the country, Trump’s own Executive Order requires harsh sanctions on the perpetrators.

Sec. 2. (a) All property and interests in property that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person of the following persons are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in: any foreign person determined by the Secretary of the Treasury, in consultation with the Secretary of State, the Attorney General, and the Secretary of Homeland Security:

(i) to have directly or indirectly engaged in, sponsored, concealed, or otherwise been complicit in foreign interference in a United States election;

(ii) to have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, any activity described in subsection (a)(i) of this section or any person whose property and interests in property are blocked pursuant to this order; or

(iii) to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property or interests in property are blocked pursuant to this order.

The Executive Order was a transparent attempt to stave off similar language in the Intelligence Authorization last year.

Today is — by my count — the end of that second 45 day period (or 90 days total from the end of the election). So Trump’s Administration should be deciding today whether — just as one example — the Russian attempt to hack Claire McCaskill was more successful than she apparently knew and whether, according to his own Executive Order, Trump now has to impose sanctions on Russia for trying.

Last week’s report actually envisioned Russia attempting to manipulate data, which might explain the sensitivity around this report.

Russia’s social media efforts will continue to focus on aggravating social and racial tensions, undermining trust in authorities, and criticizing perceived anti-Russia politicians. Moscow may employ additional influence toolkits—such as spreading disinformation, conducting hack-and-leak operations, or manipulating data—in a more targeted fashion to influence US policy, actions, and elections.

Alternately, Trump’s Administration knows the Russians tried to help him again in the mid-term elections but doesn’t want to do what they’ve promised to do in response.

Update: Big Dick Toilet Salesman Matt Whitaker and DHS Secretary Kirstjen Nielsen say that Trump doesn’t have to sanction Russia for hacking Claire McCaskill and others last year because the report they won’t even share with the Senate Intelligence Committee says Russia’s tampering had no impact on the election.

Although the specific conclusions within the joint report must remain classified, the Departments have concluded there is no evidence to date that any identified activities of a foreign government or foreign agent had a material impact on the integrity or security of election infrastructure or political/campaign infrastructure used in the 2018 midterm elections for the United States Congress. This finding was informed by a report prepared by the Office of the Director of National Intelligence (ODNI) pursuant to the same Executive Order and is consistent with what was indicated by the U.S. government after the 2018 elections.

While the report remains classified, its findings will help drive future efforts to protect election and political/campaign infrastructure from foreign interference.

The Disinformation Campaign Targeting Mueller and the Delayed Briefing to SSCI on Russian Election Interference

A lot of people are reporting and misreporting details from this Mueller filing revealing that it had been the target of disinformation efforts starting in October.

1000 non-sensitive files leaked along with the file structure Mueller provided it with

To substantiate an argument that Concord Management should not be able to share with Yevgeniy Prigozhin the sensitive discovery that the government has shared with their trollish lawyers, Mueller revealed that on October 22, someone posted 1000 files turned over in discovery along with a bunch of other crap, partially nested within the file structure of the files turned over in discovery.

On October 22, 2018, the newly created Twitter account @HackingRedstone published the following tweet: “We’ve got access to the Special Counsel Mueller’s probe database as we hacked Russian server with info from the Russian troll case Concord LLC v. Mueller. You can view all the files Mueller had about the IRA and Russian collusion. Enjoy the reading!”1 The tweet also included a link to a webpage located on an online file-sharing portal. This webpage contained file folders with names and folder structures that are unique to the names and structures of materials (including tracking numbers assigned by the Special Counsel’s Office) produced by the government in discovery.2 The FBI’s initial review of the over 300,000 files from the website has found that the unique “hashtag” values of over 1,000 files on the website matched the hashtag values of files produced in discovery.3 Furthermore, the FBI’s ongoing review has found no evidence that U.S. government servers, including servers used by the Special Counsel’s Office, fell victim to any computer intrusion involving the discovery files.

1 On that same date, a reporter contacted the Special Counsel’s Office to advise that the reporter had received a direct message on Twitter from an individual who stated that they had received discovery material by hacking into a Russian legal company that had obtained discovery material from Reed Smith. The individual further stated that he or she was able to view and download the files from the Russian legal company’s database through a remote server.

2 For example, the file-sharing website contains a folder labeled “001-W773.” Within that folder was a folder labeled “Yahoo.” Within that folder was a folder labeled “return.” Within the “return” folder were several folders with the names of email addresses. In discovery in this case, the government produced a zip file named “Yahoo 773.” Within that zip file were search warrant returns for Yahoo email accounts. The names of the email accounts contained in that zip file were identical to the names of the email address folders within the “return” subfolder on the webpage. The webpage contained numerous other examples of similarities between the structure of the discovery and the names and structures of the file folders on the webpage. The file names and structure of the material produced by the government in discovery are not a matter of public record. At the same time, some folders contained within the Redstone Hacking release have naming conventions that do not appear in the government’s discovery production but appear to have been applied in the course of uploading the government’s production. For example, the “001- W773” folder appears within a folder labeled “REL001,” which is not a folder found within the government’s production. The naming convention of folder “REL001” suggests that the contents of the folder came from a production managed on Relativity, a software platform for managing document review. Neither the Special Counsel’s Office nor the U.S. Attorney’s Office used Relativity to produce discovery in this case. [my emphasis]

It sounds like Mueller’s office found out about it when being contacted by the journalist who had been alerted to the content on Twitter.

But before Mueller asked Concord’s trollish lawyers about it, the defense attorneys — citing media contacts they themselves had received — contacted prosecutors to offer a bullshit excuse about where the files came from.

On October 23, 2018, the day after the tweet quoted above, defense counsel contacted the government to advise that defense counsel had received media inquiries from journalists claiming they had been offered “hacked discovery materials from our case.” Defense counsel advised that the vendor hired by the defense reported no unauthorized access to the non-sensitive discovery. Defense counsel concluded, “I think it is a scam peddling the stuff that was hacked and dumped many years ago by Shaltai Boltai,” referencing a purported hack of Concord’s computer systems that occurred in approximately 2014. That hypothesis is not consistent with the fact that actual discovery materials from this case existed on the site, and that many of the file names and file structures on the webpage reflected file names and file structures from the discovery production in this case.

Without any hint of accusation against the defense attorneys (though this motion is accompanied by an ex parte one, so who knows if they offered further explanation there), Mueller notes any sharing of this information for disinformation purposes would violate the protective order in the case.

As stated previously, these facts establish a use of the non-sensitive discovery in this case in a manner inconsistent with the terms of the protective order. The order states that discovery may be used by defense counsel “solely in connection with the defense of this criminal case, and for no other purpose, and in connection with no other proceeding, without further order of this Court,” Dkt. No. 42-1, ¶ 1, and that “authorized persons shall not copy or reproduce the materials except in order to provide copies of the materials for use in connection with this case by defense counsel and authorized persons,” id. ¶ 3. The use of the file names and file structure of the discovery to create a webpage intended to discredit the investigation in this case described above shows that the discovery was reproduced for a purpose other than the defense of the case.

Update: Thursday evening, Mueller submitted another version of this clarifying that the @HackingRedstone tweets alerting journalists to the document dump were DMs, and so not public (or visible to the defense). The first public tweet publicizing the dump came on October 30, so even closer to the election.

Shortly after the government filed, defense counsel drew the government’s attention to the following sentence, which appears on page nine of the filing: “On October 22, 2018, the newly created Twitter account @HackingRedstone published the following tweet: ‘We’ve got access to the Special Counsel Mueller’s probe database as we hacked Russian server with info from the Russian troll case Concord LLC v. Mueller. You can view all the files Mueller had about the IRA and Russian collusion. Enjoy the reading!’” Defense counsel pointed out that this sentence could be read to suggest that the Twitter account broadcast a publicly-available “tweet” on October 22. In fact, the Twitter account @HackingRedstone began sending multiple private direct messages to members of the media promoting a link to the online file-sharing webpage using Twitter on October 22. The content of those direct messages was consistent with, but more expansive than, the quoted tweet to the general public, which was issued on October 30. By separate filing, the government will move to file under seal the text of the direct messages. The online file sharing webpage was publicly accessible at least starting on October 22.

I’m not sure it makes the defense response any more or less suspect. But it does tie the disinformation even more closely with the election.

The Mueller disinformation was part of a month-long election season campaign

This thread, from one of the journalists who was offered the information, put it all in context back on November 7, the day after the election.

The thread shows how the release of the Mueller-related files was part of a month-long effort to seed a claim that the Internet Research Agency had succeeded in affecting the election.

Update: This story provides more background.

Other signs of the ongoing investigation into Yevgeniy Prigozhin’s trolls

Given how the Mueller disinformation functioned as part of that month-long, election oriented campaign, I’m more interested in this passage from the Mueller investigation than that the investigation had been targeted. Mueller argues that they shouldn’t have to share the sensitive discovery with Yevgeniy Prigozhin because the sensitive discovery mentions uncharged individuals who are still trying to fuck with our elections.

First, the sensitive discovery identifies uncharged individuals and entities that the government believes are continuing to engage in operations that interfere with lawful U.S. government functions like those activities charged in the indictment.

To be sure, we knew the investigation into Prigozhin’s trolls was ongoing. On October 19, just days before these files got dropped, DOJ unsealed an EDVA complaint, which had been filed under seal on September 28, against Prigozhin’s accountant, Alekseevna Khusyaynova. Along with showing Prigozhin’s trolls responding to the original Internet Research Agency indictment last February, it showed IRA’s ongoing troll efforts through at least June of last year.

Then, in December, Concord insinuated that Mueller prosecutor Rush Atkinson had obtained information via the firewall counsel and taken an investigative step on that information back on August 30.

On August 23, 2018, in connection with a request (“Concord’s Request”) made pursuant to the Protective Order entered by the Court, Dkt. No. 42-1, Concord provided confidential information to Firewall Counsel. The Court was made aware of the nature of this information in the sealed portion of Concord’s Motion for Leave to Respond to the Government’s Supplemental Briefing Relating to Defendant’s Motion to Dismiss the Indictment, filed on October 22, 2018. Dkt. No. 70-4 (Concord’s “Motion for Leave”). Seven days after Concord’s Request, on August 30, 2018, Assistant Special Counsel L. Rush Atkinson took investigative action on the exact same information Concord provided to Firewall Counsel. Undersigned counsel learned about this on October 4, 2018, based on discovery provided by the Special Counsel’s Office. Immediately upon identifying this remarkable coincidence, on October 5, 2018, undersigned counsel requested an explanation from the Special Counsel’s Office, copying Firewall Counsel on the e-mail.

[snip]

Having received no further explanation or information from the government, undersigned counsel raised this issue with the Court in a filing made on October 22, 2018 in connection with the then-pending Motion to Dismiss. In response to questions from the Court, Firewall Counsel denied having any communication with the Special Counsel’s Office.

This was a bid to obtain live grand jury investigative information, one that failed earlier this month after Mueller explained under seal how his prosecutors had obtained this information and Dabney Friedrich denied the request.

What this filing, in conjunction with Josh Russell’s explanatory Twitter thread, reveals is that the Mueller disinformation effort was part of a disinformation campaign targeted at the election.

Dan Coats doesn’t want to share the report on Russian election tampering with SSCI

And I find that interesting because of a disturbing exchange in a very disturbing Global Threats hearing the other day. After getting both Director of National Intelligence Dan Coats and FBI Director Christopher Wray to offer excuses for White House decisions to given security risks like Jared Kushner security clearance, Martin Heinrich then asked Coats why ODNI had not shared the report on election tampering even with the Senate Intelligence Committee.

Heinrich: Director Coats, I want to come back to you for a moment. Your office issued a statement recently announcing that you had submitted the intelligence community’s report assessing the threats to the 2018 mid-term elections to the President and to appropriate Executive Agencies. Our committee has not seen this report. And despite committee requests following the election that the ODNI brief the committee on any identified threats, it took ODNI two months to get a simple oral briefing and no written assessment has yet been provided. Can you explain to me why we haven’t been kept more fully and currently informed about those Russian activities in the 2018–

Chairman Richard Burr interrupts to say that, in fact, he and Vice Chair Mark Warner have seen the report.

Burr: Before you respond, let me just acknowledge to the members that the Vice Chairman and I have both been briefed on the report and it’s my understanding that the report at some point will be available.

Coats then gives a lame excuse about the deadlines, 45 days, then 45 days.

Coats: The process that we’re going through are two 45 day periods, one for the IC to assess whether there was anything that resulted in a change of the vote or anything with machines, uh, what the influence efforts were and so forth. So we collected all of that, and the second 45 days — which we then provided to the Chairman and Vice Chairman. And the second 45 days is with DHS looking, and DOJ, looking at whether there’s information enough there to take — to determine what kind of response they might take. We’re waiting for that final information to come in.

After Coats dodges his question about sharing the report with the Committee, Heinrich then turns to Burr to figure out when they’re going to get the information. Burr at least hints that the Executive might try to withhold this report, but it hasn’t gotten to that yet.

Heinrich: So the rest of us can look forward — so the rest of us can then look forward to reading the report?

Coats: I think we will be informing the Chairman and the Vice Chairman of that, of their decisions.

Heinrich: That’s not what I asked. Will the rest of the Committee have access to that report, Mr. Chairman?

[pause]

Heinrich: Chairman Burr?

Burr; Well, let me say to members we’re sort of in unchartered ground. But I make the same commitment I always do, that anything that the Vice Chairman and myself are exposed to, we’ll make every request to open the aperture so that all members will be able to read I think it’s vitally important, especially on this one, we’re not to a point where we’ve been denied or we’re not to a point that negotiations need to start. So it’s my hope that, once the final 45-day window is up that is a report that will be made available, probably to members only.

Coming as it did in a hearing where it became clear that Trump’s spooks are helpless in keeping Trump from pursuing policies that damage the country, this exchange got very little attention. But it should!

The Executive Branch by law has to report certain things to the Intelligence Committees. This report was mandated by Executive Order under threat of legislation mandating it.

And while Coats’ comment about DOJ, “looking at whether there’s information enough there to take — to determine what kind of response they might take,” suggests part of the sensitivity about this report stems from a delay to provide DOJ time to decide whether they’ll take prosecutorial action against what they saw in the election, the suggestion that only members of the committee (not staffers and not other members of Congress) will ever get the final report, as well as the suggestion that Coats might even fight that, put this report on a level of sensitivity that matches covert actions, the most sensitive information that get shared with Congress.

Maybe the Russians did have an effect on the election?

In any case, going back to the Mueller disinformation effort, that feels like very familiar dick-wagging, an effort to make key entities in the US feel vulnerable to Russian compromise. Mueller sounds pretty sure it was not a successful compromise (that is, the data came from Concord’s lawyers, not Mueller).

But if the disinformation was part an effort to boast that Putin’s allies had successfully tampered with the vote — particularly if Russia really succeeded in doing so — it might explain why this report is being treated with the sensitivity of the torture or illegal spying program.

Update: I’ve corrected this to note that in the end the Intelligence Authorization did not mandate this report, as was originally intended; Trump staved that requirement off with an Executive Order. Still, that still makes this look like an attempt to avoid admitting to Congress that your buddy Putin continues to tamper in US elections.

As I disclosed last July, I provided information to the FBI on issues related to the Mueller investigation, so I’m going to include disclosure statements on Mueller investigation posts from here on out. I will include the disclosure whether or not the stuff I shared with the FBI pertains to the subject of the post. 

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