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Michael Sherwin Failed to Brief Merrick Garland on Trump’s Suspected Egyptian Payment

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WaPo significantly advances the story of the suspected $10 million Egyptian payment to Trump — including the role of China in it.

The investigation started when the CIA got a tip from a reliable informant that Egypt had paid Trump the money.

In early 2017, Justice Department officials were briefed on initial reports from the Central Intelligence Agency that Sisi had sought to send money to Trump.

The intelligence had come partly from a confidential informant who had previously provided useful information, according to people familiar with the matter.

That led to Mueller’s focus on Trump’s decision to inject the same amount into his campaign after meeting with Abdel Fattah El-Sisi in September 2016.

Trump repeatedly declined — until Oct. 28, roughly five weeks after the meeting with Sisi, when he announced the $10 million infusion.

As described, Mueller focused on Trump’s finances in 2016, but prohibited investigators from looking at his finances after he became President. Instead, they subpoenaed the Egyptian National Bank, which led to the extended legal fight. Materials finally provided by the bank showed a transfer from Shanghai…

The Research and Studies Center opened an account at the bank’s Heliopolis branch in November 2015, the bank’s records showed. In August 2016, the center opened a second account, this time in the bank’s Shanghai branch. Five days after that, a company that investigators believed was tied to an Egyptian oligarch initiated a transfer of $10 million into the center’s Shanghai account, records showed.

The transfer was held up, then cleared for deposit in Shanghai in December, the records showed. The same amount was transferred from that account to the center’s account at the Heliopolis branch shortly before the cash withdrawal there on Jan. 15, 2017.

Three days later, the center closed its account in Shanghai. Within 90 days, its account in Heliopolis was closed, too.

… And following that, a request from a likely Egyptian intelligence front to withdraw the same sum in cash.

A short handwritten letter dated Jan. 15, 2017, in which an organization called the Research and Studies Center asked that the bank “kindly withdraw a sum of US $9,998,000” from its Heliopolis branch, located about seven miles from Cairo International Airport. According to the bank records, employees assembled the money that same day, entirely in U.S. $100 bills, put it in two large bags and kept it in the bank manager’s office until two men associated with the account and two others came and took away the cash.

In summer 2019, after being spun under DC USAO, the FBI was asking for permission to subpoena records from Trump’s 2017 finances. But then Jessie Liu met with Bill Barr, reviewed the underlying CIA intelligence herself, and grew hesitant about further investigative steps.

Sometime after her June meetings with the FBI, Liu met with Barr to discuss the Egypt case. He urged her to personally review the underlying information from the CIA that had prompted the opening of the criminal investigation two years earlier, according to people with knowledge of the discussions.

[snip]

Sometime around September 2019, FBI agents and a supervisor from the field office presented what they considered an ultimatum to Liu: authorize getting Trump’s 2017 bank records or it wasn’t worth continuing to investigate, according to people later briefed on the exchange. Liu listened but turned them down; she said she wasn’t closing the case and was open to subpoenaing Trump’s records later on if agents turned up more compelling evidence to justify doing so, these people said.

After Barr replaced Liu with first Tim Shea and then Michael Sherwin, Sherwin shut down the investigation on June 7, 2020.

Sherwin, the only person quoted in the piece, taunted that Merrick Garland could have reopened the case.

In an interview with The Post, Sherwin said Biden administration appointees, including Attorney General Merrick Garland, who took over the department months later, could have relaunched the probe if they disagreed. “The case was closed without prejudice,” he said. “Anyone could have reopened the case the second I left that office.”

The case was not reopened.

Except, as the last paragraph of the story describes, partly amid the rush of cases in the wake of January 6, Garland and his top aides were never briefed on the case in their first year in office — which for Garland, who wasn’t sworn in until March 11, 2021, would be March 2022.

Garland, senior members of his team, and Biden’s new U.S. attorney in D.C. were never briefed on the Egypt investigation in their first year in office, one former and one current government official told The Post.

The Statute of Limitations expired on January 15, 2022.

There’s still at least one hole in this story.

The money was deposited in Shanghai in August 2016. That’s before the September meeting between al-Sisi and Trump. Though at a time when Trump’s people — including both George Papadophoulos, who played a key role in setting up the meeting with al-Sisi, and Walid Phares, who was investigated for ties to Middle Eastern intelligence — were negotiating a meeting with Russia, in London, in September 2016.

Papadopoulos communicated with Clovis and Walid Phares, another member of the foreign policy advisory team, about an offthe-record meeting between the Campaign and Russian government officials or with Papadopoulos’s other Russia connections, Mifsud and Timofeev.480 Papadopoulos also interacted directly with Clovis and Phares in connection with the summit of the Transatlantic Parliamentary Group on Counterterrorism (TAG), a group for which Phares was co-secretary general.481 On July 16, 2016, Papadopoulos attended the TAG summit in Washington, D.C., where he sat next to Clovis (as reflected in the photograph below).482

Although Clovis claimed to have no recollection of attending the TAG summit,483 Papadopoulos remembered discussing Russia and a foreign policy trip with Clovis and Phares during the event.484 Papadopoulos’s recollection is consistent with emails sent before and after the TAG summit. The pre-summit messages included a July 11, 2016 email in which Phares suggested meeting Papadopoulos the day after the summit to chat, 485 and a July 12 message in the same chain in which Phares advised Papadopoulos that other summit attendees “are very nervous about Russia. So be aware.”486 Ten days after the summit, Papadopoulos sent an email to Mifsud listing Phares and Clovis as other “participants” in a potential meeting at the London Academy of Diplomacy.487

Finally, Papadopoulos’s recollection is also consistent with handwritten notes from a journal at that time.488

[snip]

These are the notes that Papadopoulos professed to be unable to read when meeting with Mueller’s investigators.

This story is also silent about Russia’s role in convincing Egypt to withdraw a UN resolution against Israel after Trump intervened in December 2016.

Finally, recall that Erik Prince and Kyrill Dmitriev met in the Seychelles on January 11 and 12.

Trump Puts his Rasputin Guy, Michael Caputo, at Department of Health and Human Services During a Pandemic

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As Politico reported yesterday, in a bid to marginalize Alex Azar (who has been largely silenced in the middle of a pandemic since Rod Rosenstein’s sister Nancy Messonier told the truth in public), Trump has made Michael Caputo the spokesperson at Department of Health and Human Services.

The move is interesting for several reasons. It suggests the White House believes the way to control a Senate-confirmed cabinet member is to hire a spokesperson for that person, not to replace him or work out problems with him.

The move is designed to assert more White House control over Health and Human Services Secretary Alex Azar, whom officials believe has been behind recent critical reports about President Donald Trump’s handling of the coronavirus pandemic, according to two officials with knowledge of the move.

That, in turn, suggests that in the middle of a pandemic, Trump’s White House is treating HHS as a PR shop, not a functional agency.

But the far more interesting aspect of this hire is that, as recently as February 3, Bill Barr’s DOJ claimed in FOIA exemptions on Caputo’s FBI interview report that it was conducting an ongoing investigation into something Caputo did during the 2016 election — possibly with Roger Stone — called Project Rasputin. What Project Rasputin was is redacted in the 302. But whatever it was is closely enough connected with his and Stone’s willingness to take a meeting with a Russian selling dirt on Hillary Clinton that Caputo told Mueller’s team that, “‘Project Rasputin’ was mutually exclusive from anything having to do with” the guy selling that dirt.

Of course, on precisely the same day that Bill Barr’s DOJ released materials indicating it was still investigating something called Project Rasputin that Caputo had been involved in, Barr replaced then DC US Attorney Jesse Liu, who had permitted the Roger Stone investigation and prosecution to proceed unmolested by the kind of unprecedented interference that Barr would engage in just days later. Which raises questions about whether Trump doesn’t care that his own DOJ was still investigating something Caputo did in 2016, or whether Barr saw to it that investigation ended, making Caputo hirable for the first time in Trump’s Administration.

When I asked Caputo what Project Rasputin was, he simply responded by tweeting a picture of the charlatan advisor to a czar, a picture he has since deleted (along with a bunch of other Tweets he purged before taking this position).

Ah well. I’m glad that Trump’s desperation to stop Azar from telling the truth about how the President ignored sound medical advice in favor of conspiracy theories will provide yet another pressing reason to ask Reggie Walton to fully declassify the 302s describing this project.

Two Factors that May Change the Impeachment Calculus, Part Two: Criminalizing a Roger Stone Pardon

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In this post, I described how recent developments in Michael Cohen’s case give Congress a number of reasons to use it as a basis for impeachment. The neat fit of so many details might affect the calculus on whether Democrats carry out an impeachment inquiry on Trump.

In this post, I’ll point to a cynical electoral reason to begin impeachment: to prevent Trump from preempting Stone’s pre-election trial which, if it takes place in November 2019 as scheduled, will be utterly damning to the President. Don’t get me wrong — Democrats should move to stop Trump from using pardons to suborn perjury as a basic rule of law thing. But the timing of Stone’s trial and the extent to which it will implicate the President makes that imperative electorally beneficial for Democrats as well.

Even as currently charged, Stone’s case implicates the President directly

As I’ve noted, because everything in the Mueller Report pertaining to Roger Stone got redacted to (appropriately) preserve Stone’s right to a fair trial, lots of details on how Trump himself was involved in pushing Stone to optimize the WikiLeaks releases is redacted.

[I]t seems highly likely that some of the information in these redacted passages is stuff that would only prejudice Stone’s case by raising the import of it to Trump.

Consider, for starters, that (unless I’m mistaken) not a word from Stone’s indictment appears in this Report. [For example,] the indictment makes it clear that Stone was talking to the campaign about WikiLeaks releases.

ROGER JASON STONE, JR. was a political consultant who worked for decades in U.S. politics and on U.S. political campaigns. STONE was an official on the U.S. presidential campaign of Donald J. Trump (“Trump Campaign”) until in or around August 2015, and maintained regular contact with and publicly supported the Trump Campaign through the 2016 election.

During the summer of 2016, STONE spoke to senior Trump Campaign officials about Organization 1 and information it might have had that would be damaging to the Clinton Campaign. STONE was contacted by senior Trump Campaign officials to inquire about future releases by Organization 1.

[snip]

By in or around June and July 2016, STONE informed senior Trump Campaign officials that he had information indicating Organization 1 had documents whose release would be damaging to the Clinton Campaign. The head of Organization 1 was located at all relevant times at the Ecuadorian Embassy in London, United Kingdom.

After the July 22, 2016 release of stolen DNC emails by Organization 1, a senior Trump Campaign official was directed to contact STONE about any additional releases and what other damaging information Organization 1 had regarding the Clinton Campaign. STONE thereafter told the Trump Campaign about potential future releases of damaging material by Organization 1.

We see outlines of precisely who those references are to in the report.

Most notably, after describing Trump’s enthusiasm after Stone told Trump while Michael Cohen was listening on the speaker phone that the DNC emails would drop in a few days just before they did (which Cohen described in his testimony to Oversight), these two paragraphs, appear to to describe Manafort and Trump’s enthusiasm after the DNC release, with Manafort telling both Stone directly and Gates that he wanted to be kept informed via Stone of what was coming. And having gotten some indication of what was coming, the campaign started making plans to optimize those releases. It appears that Gates, like Cohen before him, witnessed a Stone-Trump call where the rat-fucker told the candidate what was coming.

These pages also have more background about how important all this was to Trump, who was frustrated that Hillary’s deleted emails hadn’t been found (something also told, in Flynn’s voice, in the Peter Smith section).

The references to Stone in these passages may well be appropriately redacted. But the descriptions of conversations between Trump and Manafort or Gates should not impact Stone’s defense — unless you want to argue that Trump’s personal involvement in Stone’s rat-fucking might change the deliberations for a jury. They don’t serve to hide Stone’s actions. They hide Trump’s enthusiasm for using materials stolen by Russia to win.

So the part of the 2016 operation that clearly amounted to coordination but was not charged because of First Amendment considerations, and the part of the 2016 operation for which (perhaps because witnesses learned it would not be charged as a conspiracy) there’s the most evidence of Trump’s direct involvement, remains hidden from view out of concerns for Stone’s due process rights.

Right now, Stone’s trial is scheduled to start on November 5. A recent status report on Rick Gates’ cooperation makes it clear he is likely to be a witness at Stone’s trial. While Gates’ testimony is probably not necessary to prove that Stone lied to HPSCI, it would be useful to explain Stone’s motive: significantly, protecting Trump.

If Andrew Miller’s testimony leads to new charges, the tie to Trump may be still more damning

Tuesday, the DC Circuit Court issued its final order in Stone associate Andrew Miller’s challenge to a grand jury subpoena.

Yesterday — technically minutes after Mueller’s press conference announcing the investigation was completed and he’s going home — Judge Beryl Howell rejected another attempt by Miller to challenge the subpoena. Multiple outlets report that he has agreed to testify Friday at 9:30.

Miller’s testimony Friday is premised on potential new charges against Stone and before Howell rejected Miller’s challenge, Aaron “Zelinsky and Jonathan Kravis from the US Attorney’s Office in DC told the judge privately why they still needed Miller.”

Last night, Howell released some of the details behind Miller’s most recent challenge. Along with a useful timeline from Miller’s lawyers on their challenge, it makes it pretty clear that prosecutors are still looking for information on (as Miller lawyer Paul Kamenar describes it) “Roger Stone’s actions during the 2016 election and his involvement in WikiLeaks, Julian Assange, and the hacking of Hillary Clinton’s and the DNC’s emails and any collusion with Russia” or (as Aaron Zelinsky has described it), “Roger Stone’s connection to WikiLeaks, Julian Assange, Guccifer 2.0, Russia.”

In other words, it appears that prosecutors might still indict Stone with new crimes pertaining to the core issues that were under investigation.

That’s one reason I find the timing of Mueller’s announcement so interesting. The Howell hearing yesterday was technically after Mueller’s statement finished. I don’t know when yesterday’s announcement will become official, but it would seem to be final before Friday’s Miller grand jury appearance.

That would mean any charges that former Mueller prosecutor Aaron Zelinsky (as well as DC AUSA Jonathan Kravis, who has picked up the bulk of the ongoing matters from Mueller’s team) might decide to pursue after Friday would be subject neither to the logic of the Mueller investigation — which decided not to charge Stone for some WikiLeaks-related crimes in part based on First Amendment considerations, nor to the direct supervision of Attorney General Barr.

As I’ve noted, the logic EDVA used in its superseding indictment of Assange is in direct conflict with the logic Mueller used in deciding that WikiLeaks’ and Trump’s “wish lists” for Hillary emails do not establish a basis for a conspiracy charge in the same way WikiLeaks’ wish list for classified materials was used. That might mean that decisions made after Miller’s testimony Friday would work out differently than decisions on Stone’s charges in January. Mueller’s off the case. It’s DC US Attorney Jesse Liu’s decision now.

All of which is to say, even assuming Friday’s testimony doesn’t lead to new charges, unless Trump finds a way to pre-empt Stone’s trial, it will mean some of the most damning information about Trump’s involvement in what Mueller didn’t charge as conspiracy but which by most definitions would count as “collusion” will get aired less than a year before the 2020 election.

Given how rock solid that Stone indictment is, there are just two ways to avoid that: for Stone to flip on Trump or others (though prosecutors are unlikely to give Stone a deal without vetting his claims after the way Paul Manafort abused the process, and it would be too late to flip on Assange). Or for Trump to pardon Stone.

Some of the clearest evidence of obstruction of justice in the Mueller Report pertains to Trump floating pardons, including a 2.5 page redacted passage (Volume II pages 128-130) pertaining to Stone himself. Even Bill Barr says it would be a crime to float pardons to prevent someone from testifying truthfully. Note, too, that Mueller asked Trump whether he considered pardoning Assange before he was inaugurated (to which Trump gave a typically contemptuous non-answer), and Stone was involved in an attempt to pardon Assange as recently as January 2018, which has been the subject of Mueller’s questioning.

The political hit from a Stone trial — and the kind of pardon-related obstruction that Barr himself conducted to kill the Iran-Contra investigation — might well be enough for Trump to prefer the political hit of pardoning Stone. Democrats have one way of altering that calculus to ensure the Stone trial — with all the damning details of Trump’s actions it’ll reveal — happens as scheduled.

While I’m not, at all, a fan of gaming trials for political effect, the fact of the matter is that if Stone’s trial goes forward, it would present as damning a case against Trump’s cheating as any impeachment trial could do. But to ensure that happens, Democrats need to make it clear that pardoning his way out of this will incur even greater costs for the President.

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.