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What Roger Stone’s Latest Lies Tell Us about Mueller’s Investigation into Him

As I disclosed last month, 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. 

After a puff piece in the NYT over the weekend, Roger Stone took to the Daily Caller to attack Mueller’s case against him. As bad as the Daily Caller is, it actually ends up being far more informative than the NYT because Stone is so bad at telling lies they’re informative for what they mirror.

So assuming, for the moment, that Stone’s piece reflects some kind of half-accurate reflection of what witnesses have said they were questioned about him, here’s what we learn.

Mueller is examining conduct that goes back 10 years

Obviously, statutes of limitation have probably tolled on any crimes Stone committed more than five years ago, but this suggests witnesses are being asked about conduct that goes back further, ten years.

Mueller is running a criminally abusive, constitutionally -unaccountable, professionally and politically incestuous conspiracy of ethically conflicted cronies colluding to violate my Fourth, Fifth and Sixth Amendment rights and those of almost everyone who had any sort of political or personal association with me in the last 10 years.

Given the involvement of Peter Jensen and Kristin Davis in Stone’s recent rat-fucking, perhaps as an explanation of more recent rat-fucking we’ll finally get an accounting of Stone’s role in taking out Eliot Spitzer ten years ago. (h/t Andrew Prokop for Jensen tie to Spitzer op)

Mueller is considering charging Stone with ConFraudUs

I assume this reference to ConFraudUs comes from a friendly witness passing on what a subpoena described were the crimes being investigated.

Mueller and his hit-men seek to frame some ludicrous charge of “defrauding the United States.”

This is, of course, based on a false and unproven assumption that Assange is a Russian agent and Wikileaks is a Russian front — neither of which has been proven in a court of law. Interestingly Assange himself has said, “Roger Stone has never said or tweeted anything we at Wikileaks had not already said publicly.”

As described, it looks like how I envisioned Stone might be charged with ConFraudUs back in June.

As Mueller’s team has itself pointed out, for heavily regulated areas like elections, ConFraudUs indictments don’t need to prove intent for the underlying crimes. They just need to prove,

(1) two or more persons formed an agreement to defraud the United States;

(2) [each] defendant knowingly participated in the conspiracy with the intent to defraud the United States; and

(3) at least one overt act was committed in furtherance of the common scheme.

Let’s see how evidence Mueller has recently shown might apply in the case of Roger Stone, Trump’s lifelong political advisor.

[snip]

Stone repeatedly entertained offers from foreigners illegally offering dirt that would benefit the Trump campaign — Greenberg, Guccifer 2.0, possibly Peter Smith’s Dark Web hackers. He may even have exhibited a belief that Australian Julian Assange had and could release the latter dirt, possibly with the knowledge they came from Russians.

So we’ve got Stone meeting with other people, repeatedly agreeing to bypass US election law to obtain a benefit for Trump, evidence (notwithstanding Stone’s post-hoc attempts to deny a Russian connection with Guccifer 2.0 and Wikileaks) that Stone had the intent of obtaining that benefit, and tons of overt acts committed in furtherance of the scheme.

Stone appears to address just one conspiracy with a foreigner — Julian Assange — to obtain something of value, by insisting (though less strongly than he has in the past!) that Assange is not a Russian asset. Except, foreign is foreign, whether Australian or Russian, so making a weak case that Assange is not Russian won’t get you off on ConFraudUs.

Moreover, now that I’ve reviewed some dodginess about Stone’s PACs, I suspect there may be two levels of ConFraudUs, one pertaining to depriving the US government from excluding foreign influence on the election, and the other pertaining to depriving the US government of the ability to track how political activities are being funded.

That is, Mueller’s reported focus on Stone’s finances may well pertain to a second ConFraudUs prong, one based on campaign finance violations.

Stone thinks Mueller wants him to flip, rather than to punish him for the case in chief

In spite of the abundant evidence that Stone is a key target of this investigation, Stone appears to believe that Mueller only wants to charge him to get him to flip on Trump.

Mueller’s hit team is poking into every aspect of my personal, private, family, social, business and political life — presumably to conjure up some bogus charge or charges to use to pressure me to plead guilty to their Wikileaks fantasy and testify against Donald Trump who I have known intimately for almost 40 years.

Side note: I appreciate the way Stone — an unabashed swinger — worked that word “intimately” into his description of his relationship with Trump.

Which is one of the reasons I’m so interested in how he describes hiring a new lawyer, a nationally known one who used to work for Trump.

I have been ably served by two fine lawyers Grant Smith and Rob Buschel who won dismissal of a harassment lawsuit based on the same Wikileaks/Russian conspiracy theory by an Obama directed legal foundation in D.C. last month. No evidence to support this false narrative was produced in court other than a slew of fake news clippings from lefty media sites.

I have recently reached agreement to retain a highly respected and nationally known attorney who has represented Donald Trump to join my legal team and lead my defense.

Possibly this is just a hint that some operative like Victoria Toensing or Joseph DiGenova is going to take on Stone’s propaganda case. Possibly it reflects a recognition from Trump that Stone now presents as big a risk to him as Manafort does. Whichever it is, I look forward to learning how serious a lawyer Stone has and whether — Stone claims reports that he has $20 million are false, but if he has been engaging in epic campaign finance violations, who knows? — Trump is paying for his defense going forward.

Stone doesn’t understand how stored communications work

As I pointed out the last time Stone claimed he was targeted by a FISA order, what likely happened instead is Mueller obtained the contents of his phone along with four or nine others in a probable cause warrant on March 9. But that doesn’t stop Stone from claiming he was targeted under FISA again, explaining that his emails, text messages, and (this is less credible) phone calls have been seized going back to 2016.

Even more chilling is the fact that I have learned that — in this effort to destroy me — the government began reading my e-mails and text messages and monitoring my phone calls as early as 2016.

I believe that I, like Carter Page and Paul Manafort, was subject to an illegal FISA warrant in 2016, as the New York Times reported on January 20, 2017. The New York Times published this claim in a page-one story on the same day as President Trump’s inauguration ceremony.

A whistleblower has told my lawyers where my name and the fact that application had been made for a FISA warrant on me was redacted from the stunning Carter Page FISA warrant application released by the FBI last week with 300 of 400 pages blacked out.

What Stone’s dumbass “whistleblower” was pointing to instead was a passage describing the other people being investigated in October 2016, when Page was first targeted. But being investigated is not the same as being targeted under FISA, and what Stone is really trying to obscure here is that Mueller (probably) already showed a judge, back in March, he had probable cause that Rog committed some crimes back in 2016.

Another witness Stone would like to discredit by calling an informant

Back in June, Stone tried to spin the fact that he willingly accepted a meeting with yet another Russian offering dirt on Hillary by noting (correctly, it appears) that the Russian had served as a source for the FBI on Russian organized crime before — just like Felix Sater, whom the Trump folks are all still peachy with. In spite of the fact that it was so obviously bunk the last time, he’s trying again, hinting at a second informant working against him.

We also now know that at least one FBI informant in the United States on an informant’s visa approached me in May 2016 in an effort to entrap me and compromise Donald Trump. I declined his proposal to “buy dirt on Hillary.” There is now substantial evidence that a second FBI informant may have infiltrated my political operations in 2016. Stand by.

Who knows whether this is another person — like the Russian dealing dirt on Hillary, “Henry Greenberg,” is just someone who has worked his way out of legal trouble by serving as an informant — or whether there’s some other reason Stone is calling him or her an informant. Most likely, Stone is trying to suggest a perfectly ordinary witness cooperating with the government against him is an informant, to inflame his people. Possibly, this is prepping a claim that Randy Credico set up Roger.

Jeannie Rhee is leading the questioning of Stone witnesses

In tandem with Trump’s attacks on Mueller prosecutors with Hillary ties, Stone states that Jeannie Rhee led the questioning of his witnesses, and claims it’s a conflict.

Incredibly, leading the questioning of witnesses before the Grand Jury about me is Jeannie Rhee, who in private practice represented the Clinton foundation in the Hillary e-mail scandal that is front and center in the special prosecutor’s investigation of me! Can you say conflict of interest?

Of course, he gets the attack wrong: Rhee represented the Foundation, not Hillary’s email defense, and she did so against a nutbag Republican challenge, not with DOJ.

But in telling us that Rhee is leading this inquiry, Stone is (helpfully) telling us that a person who has led the Russian side of the inquiry is leading the inquiry into … oh my! Roger Stone!

Even with all his prevarications, it turns out, a Stone column might be more informative than a NYT puff piece!

Popcorn Futures: Client No. 9 Versus Manhattan Madam in NY Comptroller Race

[photo: Vegan Feast Catering via Flickr]

[photo: Vegan Feast Catering via Flickr]

Get out the biggest popcorn bowl you own and extra napkins, find your cushy tushy pillow, and get ready for some serious entertainment.

Former New York State governor Eliot Spitzer (D) has thrown his hat in the ring for state comptroller. He will be running against Kristin Davis (R) for the same seat, along with other less well-known candidates.

Spitzer, you may recall, resigned in 2008 as governor after it was revealed he was Client No. 9 [PDF] in a federal case in which four defendants (not named Spitzer) were charged in regards to prostitution enterprise over state lines.

Davis, you will further recall, was the so-called “Manhattan Madam” arrested and prosecuted in the sweep of the prostitution ring related to the Spitzer scandal.

The popcorn is done, you may serve yourselves and make yourselves comfortable.

When you’re done laughing, that is.

When you’ve finished wiping the tears from laughing so hard, you may also want to revisit the case that caused Spitzer to resign.

Further, you may also want to take careful note of these key dates and events:

14-FEB-2008 — An op-ed written by Eliot Spitzer, Predatory Lenders’ Partner in Crime, was published in the Washington Post. It called out the White House about its actions which thwarted efforts of states’ attorneys general to prosecute predatory lending.

14-FEB-2008 — Spitzer gave testimony this same date to the U.S. House Committee on Financial Services.

10-MAR-2008 — It was first revealed to the public that Spitzer was linked to a prostitution ring.

12-MAR-2008 — Then-governor Spitzer resigned.

14-MAR-2008 — The Fed Reserve initially agrees to loan Bear Stearns at least $25 billion; within two days, Bear Stearns is sold to J. P. Morgan for only $2/share, a mere fraction of its worth a month earlier when it traded for well over $100/share.

The 2008 financial crisis was set in motion by the cascading pressure for liquidity after Bear Stearns collapsed.

A number of folks near and dear to us looked into the origins of the investigation that caught up Spitzer; it’s been said Spitzer’s bank turned over suspicious activity to the IRS. However, in light of recent disclosures about domestic spying and datamining, it might be worth asking again whether some other surveillance tripped up Spitzer — especially after the hinky extension on the original wiretap that snagged a call related to Spitzer.

Perhaps this is why Spitzer feels comfortable attempting a political comeback.

And perhaps he knows why the rest of the prostitution ring’s clients — a substantive number of them employed by Too-Big-To-Fail financial institutions — weren’t disclosed as he was.

In any event, the New York comptroller’s race ought to be highly entertaining if not informative. Stock up on popcorn, kids, and buy some popcorn futures.

Lanny Breuer’s Theory of Chatting Accountability for CEOs

This whole video is worth watching. Eliot Spitzer, former US Attorney Mary Jo White, and Assistant Attorney General Lanny Breuer discuss financial crimes, with SIGTARP head Neil Barofsky moderating. I was fairly troubled, in general, of the hesitations White and Breuer expressed over actually prosecuting financial crime.

But I found the passage just after 46:00, where Lanny Breuer argues you don’t need prosecutions for deterrence among CEOs, to be stunning.

Look, I want to be clear, I don’t want to suggest for a moment that we don’t–and we will–aggressively pursue cases criminally but, I guess both as a defense lawyer, which I was for many years, a white collar defense lawyer and now as AAG, I don’t think we should completely discount the deterrent effect when we investigate cases even if we don’t bring them.

If a CEO or CFO of a major institution feels that he or she is subject to criminal liability, when we interview them or put them in the grand jury, they have lawyers and this is hanging over their head for years and years. It may be at the end we decide not to prosecute the company or the individual but I think it’s really inaccurate to suggest that that doesn’t have a very strong effect. I’m not sure CEOs on Wall Street right now feel as if they can do what they want and there’s no deterrence.

He returns to a discussion of “going in and out” between corporate representation and DOJ after 52:00 and he avoids talking about robo-signing at 1:00.

As you read that, think about what has happened with Lloyd Blankfein. He bullshitted Carl Levin’s investigatory committee back in April 2010. Levin released a report last year stating he had lied, and referred his investigation to DOJ.

And Lloyd Blankfein, who almost two years ago didn’t take Congress sufficiently seriously to tell the truth, is still running around free profiting off of European countries’ debts.

Does Breuer really think seeing Blankfein treat Congress and regulators with utter disdain served as a deterrent to anyone? On the contrary, what appears to have been Lanny’s Chatting Accountability for CEOs only serves to show that these MOTUs are above the law.

NYT, Republican Opposition Rag

Clark Hoyt has a really curious final column summarizing his three years as the NYT’s public editor. A lot of it is self-congratulation to the NYT for even having a public editor. But I’m most fascinated by Hoyt’s rebuttal of reader claims that NYT is a “liberal rag.”

For all of my three years, I heard versions of Kevin Keller’s accusation: The Times is a “liberal rag,” pursuing a partisan agenda in its news columns.

[snip]

But if The Times were really the Fox News of the left, how could you explain the investigative reporting that brought down Eliot Spitzer, New York’s Democratic governor;derailed the election campaign of his Democratic successor, David Paterson; got Charles Rangel, the Harlem Democrat who was chairman of the House Ways and Means Committee, in ethics trouble; and exposed the falsehoods that Attorney General Richard Blumenthal of Connecticut, another Democrat, was telling about his service record in the Vietnam era?

Hoyt names the Spitzer scandal, certain Paterson allegations, coverage of the Rangel scandal, and its recent Blumenthal attack as proof that the NYT is not a liberal rag.

With the exception of the Rangel coverage, these are all stories for which the source of the story is as much the issue as the story itself. Hoyt must hope we forget, for example, that Linda McMahon (Blumenthal’s opponent) boasted she fed the Blumenthal story to the NYT. Their denials that she had done so became even more unconvincing when the AP reported that the NYT hadn’t posted the full video, which undermined the NYT story.

I have no idea where the Rangel story came from (and in this case, I don’t care, because it’s clearly an important story about real abuse of power).

Then there’s Paterson. With this story, too, there’s a dispute about the NYT’s sources. Paterson says he was the NYT’s original source (they deny that too, and it’s true that this one is more likely to have been a Cuomo hit job). In any case, the NYT story fell far short of the bombshell that was promised for weeks leading up to it. Another political hit job that maybe wasn’t the story it was made out to be.

Which brings us to Eliot Spitzer. There are a number of possible sources the NYT might have relied on, starting with right wing ratfucker Roger Stone, who has bragged about being involved in that take-down. But they all, almost by definition, come down to leaks from inside a politicized DOJ. And those leaks focused not on any of the other elite Johns involved, not on the prostitution ring itself (which was, after all, exceptional only for its price tag), but on Spitzer. While I agree that Spitzer’s hypocrisy invited such a take-down, there wasn’t much legal news there, no matter how hard the press tried to invent it to justify the coverage.

But the list doesn’t end there. Elsewhere in Hoyt’s goodbye, he mentions his biggest regret–the Vicki Iseman story.

But throughout my tenure, Keller was gracious and supportive. When we had what was certainly our disagreement of greatest consequence — over the Times article suggesting that John McCain had had an extramarital affair with a young female lobbyist — Keller showed great equanimity. I said The Times had been off base. Though the story gave ammunition to critics who said the paper was biased, and it was no help to have the public editor joining thousands of readers questioning his judgment about it, Keller said mildly that we would just have to disagree on this one.

Say what you will about whether this was a worthwhile story, one with the wrong emphasis, or inappropriate scandal-mongering, it is pretty clear the Iseman part of the story came from disgruntled former Republican aides to McCain, probably in the neighborhood of John Weaver. Thus, it fits into this larger list of stories that serve not so much as proof of NYT fair-mindedness, but of its willingness to regurgitate oppo research in the service of powerful–often Republican–political opponents.

Then, finally, there’s the story that Hoyt doesn’t mention, to his significant discredit–the ACORN Pimp Hoax. Read more

The Questions I Should Have Asked

When you live in flyover country and have the opportunity to appear on cable, it lacks some of the niceties of the big city: no green room, no professional makeup artist, and sometimes you have to drive yourself to the studio through Detroit’s version of rush hour traffic (yeah, I know, no one works in this city anymore, but we’re on the rebound).

Which means you don’t get the same opportunity to compose your thoughts.

So here’s what I should have said when asked what two questions I’d ask Elena Kagan in a confirmation hearing:

  1. Do you think the President should be able to order the assassination of an American citizen with Predator drones with no due process?
  2. What sort of disclosure does your former employer Goldman Sachs owe its clients when it makes a massive bet that millions of Americans will lose their homes?

Break with the Bankers

In the calm before yesterday’s election night storm, Howie Kurtz took a moment to engage in his favorite hobby, obsessing about Democratic men’s penises.

If any of the candidates are patronizing hookers, Chris Matthews has the right guest. Eliot Spitzer, on the set.

But Matthews may in fact have had the most logical guest on to interpret last night’s results. As Digby concluded last night,

At this point, the only thing that seems obvious to me is that the super wealthy just aren’t as popular as they used to be. Even in New York City.

You see, regardless of his own considerable fortune and whether he has paid for sex, Spitzer had this to say yesterday (presumably before Bloomberg almost failed to buy a city):

Imagine this: by next spring, an intellectual consensus will have emerged that the concentration in the banking sector that developed from the 1980s until the crash of ‘08 was misguided. Voices as disparate as Former Fed Chair Paul Volcker, Bank of England Governor Mervyn King, meta- investor George Soros, and the Wall Street Journal editorial page will be in agreement on this point.A few brave souls on the Right — recognizing that the Republican Party has been bereft of ideas in its attacks on President Obama — will then try to re-define a populist, conservative attack by asserting that the White House has been captured by Wall Street. Real populism and change, they will argue, will come from the Republican, not the Democratic, party.

The power of such an attack from the Right should not be underestimated. There will be a huge first mover advantage that goes to the candidates who grab the real banner of attacking the structure of Wall Street as having been the root of the crash of ‘08.

[snip]

So the simple question remains: why aren’t we focusing on the problem that got us here in the first instance — the scope, range, and size of the mega-institutions whose risk taking has so far inflicted only enormous harm on our economy? If the Republicans pick up this issue before we do, the elections of 2010 could be even worse than we are now fearing.

The teabaggers failed yesterday, but there’s every reason to believe they will be more successful at mobilizing anxiety and frustration in Florida. And they’ll be doing it all the while downplaying Dick Armey’s considerable financial largesse.

If the teabaggers can then turn their energy into a focus on Wall Street, I do believe they’ll be successful in coming years. Particularly if the Administration continues to coddle the bankers.

Update: Speaking of Spitzer, Gawker has the journalist/flack emails from the first days that scandal broke.

“I Told You So”

More of this please.

First, we must confront head-on the pervasive misunderstanding of what constitutes a "free market." For long stretches of the past 30 years, too many Americans fell prey to the ideology that a free market requires nearly complete deregulation of banks and other financial institutions and a government with a hands-off approach to enforcement. "We can regulate ourselves," the mantra went.

Those of us who raised red flags about this were scoffed at for failing to understand or even believe in "the market." During my tenure as New York state attorney general, my colleagues and I sought to require investment banking analysts to provide their clients with unbiased recommendations, devoid of undisclosed and structural conflicts. But powerful voices with heavily vested interests accused us of meddling in the market.

When my office, along with the Department of Justice, warned that some of American International Group’s reinsurance transactions were little more than efforts to create the false impression of extra capital on the company’s balance sheet, we were jeered at for attacking one of the nation’s great insurance companies, which surely knew how to balance risk and reward.

And when the attorneys general of all 50 states sought to investigate subprime lending, believing that some lending practices might be toxic, we were blocked by a coalition of the major banks and the Bush administration, which invoked a rarely used statute to preempt the states’ ability to probe. The administration claimed that it had the situation under control and that our inquiry was unnecessary.

Eliot Spitzer is one of the people best suited to help clean up the mess on Wall Street. After all, he was screaming about where all the bodies were buried back when everyone was in denial, up until the time Michael Garcia took him out for a high-priced hooker.

Here’s what he recommends:

One of the great advantages U.S. capital markets have enjoyed over the decades has been the view — held worldwide — that there was an underlying integrity to the representations market participants made, because the regulatory framework in which they were made was believed to provide genuine oversight. But as we all know, the laws requiring such integrity are meaningless without a government dedicated to enforcing them.

Second, our corporate governance system has failed. We need to reexamine each of the links in its chain. Read more

Questions

Shew! I did it! I survived for a full week without WiFi or wireless.

And it was nice.

A million thanks to bmaz for watching the blog this week–looks like you guys had a lot of fun without me. And a million thanks for the birthday wishes.

I’ll post more substantively once I wade through the accumulated emails and posts and news. But for now I’ve got the following questions as I read through what you’ve guys have been reading through.

  • If the White House destroys hard drives of people who move on, and the people from whom we wanted email in January 2006 included three people who had already left OVP (Cathie Martin, Jenny Mayfield, and Scooter Libby), then does that mean we still don’t have emails from the relevant period for these three people (particularly the last two)?
  • If Brent Wilkes’ complaints about improper leaks of his impending indictment win him a get out of jail free card, does that mean Eliot Spitzer is out of all legal danger (even while the DA is making it known that he suspects Spitzer perjured himself)?
  • What does Eric Lichtblau mean when he refers to Dick Cheney’s tense relations with the NYT in December 2005?

As New York Times Editor Bill Keller, Washington Bureau Chief Phil Taubman, and I awaited our meeting, we still weren’t sure who would make the pitch for the president. Dick Cheney had thought about coming to the meeting but figured his own tense relations with the newspaper might actually hinder the White House’s efforts to stop publication. (He was probably right.)

After all, this meeting took place just a month after Cheney’s Cheney had been indicted for lying to cover up Cheney’s apparent order to leak Valerie Wilson’s identity to Judy Miller. That indictment came after the NYT made an ill-advised attempt to protect Libby–even after they knew Judy’s testimony was proof that Libby lied under oath. After having been served so well by his selective A1 cutout leaks to the NYT, why was he so cranky right after Libby was indicted?

Spitzer Resigns

Not a big surprise. Here’s the bit I hope gets the most traction:

Over the course of my public life, I have insisted, I believe correctly, that people, regardless of their position or power, take responsibility for their conduct. I can and will ask no less of myself. For this reason, I am resigning from the office of governor.

I think it likely we’ll find, over time, that those investigating Spitzer felt obliged to pursue what otherwise would not have merited a continued investigation. I suspect we’ll learn that public people, like Spitzer, are going to be exposed to a lot more scrutiny–and otherwise unusual investigations–because of these new post-9/11 money laundering laws.

Still. Spitzer was a crusader about law and order. And, according to his own standards, that requires taking responsibility for his conduct. And that, at least, is how he’s pitching his resignation.

Update:  Via David Kurtz.

In response to press speculation, MICHAEL J. GARCIA, the United States Attorney for the Southern District of New York, said: "There is no agreement between this Office and Governor Eliot Spitzer, relating to his resignation or any other matter."

Does it sound to you like they still want to charge him?