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Trump’s Legal Team: “If the Law and the Facts Are Against You, Pound the Table and Yell Like Hell”

Folks in the White House keep telling Maggie Haberman and Mike Schmidt about imminent changes to his legal team.

March 10: Emmet Flood

On March 10, it was that the superb Emmet Flood — who among other things, kept Dick Cheney out of the pokey — would join his team. The possibility was based on a meeting (now over 10 days ago) described as “an overture.”

The lawyer, Emmet T. Flood, met with Mr. Trump in the Oval Office this past week to discuss the possibility, according to the people. No final decision has been made, according to two of the people.

Should Mr. Flood come on board, the two people said, his main duties would be a day-to-day role helping the president navigate his dealings with the Justice Department.

Two people close to the president said that the overture to Mr. Flood did not indicate any new concerns about the inquiry. Still, it appears, at the least, to be an acknowledgment that the investigation is unlikely to end anytime soon.

The story admitted that Flood had said no to a similar offer last summer, at such time when Flood might have set the legal strategy and established ground rules for his client.

As recently as the summer, Mr. Flood, who currently works at the law firm Williams & Connolly, turned down an opportunity to represent Mr. Trump. It is not clear what has changed since then.

It also claimed that Flood was the only lawyer the White House had approached.

Mr. Flood had been on the wish list of some of the president’s advisers to join his legal team last year, and he is the only person the White House has been in contact with about such a leading role.

It also included the bizarre notion that Ty Cobb’s job was meant to end as soon as the White House had turned over all the documents Robert Mueller wanted.

Mr. Cobb has told friends for weeks that he views his position as temporary and does not expect to remain in the job for much longer.

Mr. Cobb’s primary task — producing documents for Mr. Mueller and arranging for White House aides to meet with prosecutors — is largely complete.

March 19: Joseph Di Genova

Then, on Monday, Maggie and Mike reported that Joseph Di Genova would join the team. The former US Attorney wouldn’t actually be lawyering so much as pounding the table and inventing conspiracy theories (best as I can tell, pounding tables is supposed to be Trump’s current lawyer, Jay Sekulow’s job, but he seems to have taken to hiding under the bed of late).

Mr. diGenova, a former United States attorney, is not expected to take a lead role. But he will serve as an outspoken player for the president as Mr. Trump has increased his attacks on the special counsel, Robert S. Mueller III. Mr. Trump broke over the weekend from the longstanding advice of some of his lawyers that he refrain from directly criticizing Mr. Mueller, a sign of his growing unease with the investigation.

It’s just as well that Di Genova wouldn’t be doing any lawyering given that in 1997, he argued that sitting presidents could be indicted, a view that would make it easier for Mueller to charge his supposed client.

Somehow, this story didn’t explain a big puzzle about the hiring: how Di Genova could represent the president when his wife, Victoria Toensing, has represented three other people in the investigation, at least one of whom gave apparently damning testimony to Mueller’s investigators.

Mr. diGenova is law partners with his wife, Victoria Toensing. Ms. Toensing has also represented Sam Clovis, the former Trump campaign co-chairman, and Erik Prince, the founder of the security contractor Blackwater and an informal adviser to Mr. Trump. Mr. Prince attended a meeting in January 2017 with a Russian investor in the Seychelles that the special counsel is investigating.

Ms. Toensing also represents Mark Corallo, the former spokesman for the Trump legal team who has accused one of the president’s advisers of potentially planning to obstruct justice with a statement related to a 2016 meeting between Donald Trump Jr. and a Russian lawyer who supposedly had damaging information on Hillary Clinton.

While it’s certainly possible Di Genova could clear up the conflict with Clovis and Prince, Corallo reportedly testified that Hope Hicks, having met one-on-one with Trump, suggested that emails regarding the June 9, 2016 meeting could be buried.

March 20: Ted Olson

Then, today, multiple outlets claimed that Ted Olson was under consideration. That’d be weird, given that Trump wants to claim that Robert Mueller has conflicts on account of his association with Jim Comey, yet Olson was as integrally involved in the most famous Comey-Mueller event — the hospital hero challenge to Stellar Wind in 2004 — as Mueller was. Plus, Olson’s name is on the Supreme Court precedent that deemed even the more expansive special prosecutor statute constitutional.

Which is to say that Olson may be the best active Republican lawyer with the possible exception of his former deputy, Paul Clement (hey, why isn’t Clement being floated?), but it’s not clear he would help Trump much, even if he could get Trump to follow instructions.

Yet the pushback from Olson’s firm suggests he was never really considering this offer (which raises questions about whether Flood, who like Olson also considered and rejected the position last year, is taking this offer any more seriously). It seems Trump wants to create the appearance, at least, that serious lawyers will still consider representing him.

Trump’s existing lawyers prepare to bolt

As it turns out, Trump didn’t tell his existing lawyers about a number of these conversations. And even aside from the shit shingle they’re facing, particularly as it becomes clear to Trump they were lying to him all last year about how long this inquiry would be and how serious Trump’s jeopardy is, they’re all getting tired babysitting the president.

The hiring of diGenova on Monday, first reported by the New York Times, infuriated Dowd, who responded angrily to the development, according to people familiar with his reaction, who spoke on the condition of anonymity to share internal details. Dowd views diGenova as pushing him to be the second chair rather than top dog on Trump’s legal team, these people said. But Dowd said in an email to a Post reporter that he’s perfectly happy with the new addition: “Love Joe.”

Dowd, however, has lost the confidence of many in the president’s orbit, both inside and outside the White House. In December, after Trump tweeted that he had fired his former national security adviser Michael Flynn because Flynn had lied to both the vice president and the FBI, Dowd later claimed that he was the one who had drafted the missive.

One outside adviser described Dowd as “the weakest link” in the team.

McGahn and Cobb have also had their share of tension. While Cobb has urged the president to cooperate with Mueller and hand over documents to his investigators, McGahn has pushed a more aggressive approach, according to people familiar with his work.

McGahn has said the legal team should make the special counsel subpoena every document, explain every interview and fight for every piece of information, one person said. A second White House aide said McGahn has questioned the constitutional status of the special counsel position.

But McGahn and Trump have also clashed repeatedly since entering the White House, and one former administration official said the president mused at least three times that perhaps he should hire a new counsel.

McGahn has told associates that he is exhausted and frustrated at times in the job, but that he has been able to make a historic impact on appointing judges and reducing regulations and that he would like to be around for a second Supreme Court opening, one friend said. McGahn also has a strong relationship with Kelly.

So Trump’s lawyers (with the possible exception of Don McGahn, who’ll stay so long as he can pack the courts with unqualified ideologues) want out, and none of the real lawyers he’s approaching want to have anything to do with him.

When Rick Gates ran his defense team like this, he had a way out: to flip on Paul Manafort and Trump himself.

But who will Trump flip on? Vladimir Putin?

This is the most remarkable thing to behold. The most powerful man in the world is having difficulties getting anyone but a washed out table-pounder to represent him in the most high profile investigation in recent years.

Oleg Deripaska Gets Ahead of His Own Fusion Dossier (and Manafort Prosecution?) Disclosures

Sometime Paul Manafort client and owner Oleg Deripaska just did a column in the Daily Caller insinuating the Mueller investigation is a Deep State attack on good aluminum smelters like him — though the column seems as much an effort to get ahead of disclosures about his own tie to the Steele dossier or Manafort trial as anything else. 

Chuck Grassley throws breadcrumbs about others tied to the Steele dossier, including Oleg Deripaska

For weeks, I’ve been waiting to learn why Chuck Grassley asked Democrats about the role of a number of people in the Fusion dossier, including Victoria Nuland, former SSCI staffer Dan Jones, and Oleg Deripaska.

Look, now, at this detail from the letters Chuck Grassley sent out to the DNC, its top officials, and the Hillary campaign, and its top officials, trying to find out how much they knew about and used the dossier. Grassley also asks for any communications to, from, or relating to the following (I’ve rearranged and classified them).

Fusion and its formal employees: Fusion GPS; Bean LLC; Glenn Simpson; Mary Jacoby; Peter Fritsch; Tom Catan; Jason Felch; Neil King; David Michaels; Taylor Sears; Patrick Corcoran; Laura Sego; Jay Bagwell; Erica Castro; Nellie Ohr;

Fusion researcher who worked on both the Prevezon and Democratic projects:Edward Baumgartner;

Anti-Magnitsky lobbyists: Rinat Akhmetshin; Ed Lieberman;

Christopher Steele’s business and colleagues: Orbis Business Intelligence Limited; Orbis Business International Limited.; Walsingham Training Limited; Walsingham Partners Limited; Christopher Steele; Christopher Burrows; Sir Andrew Wood,

Hillary-related intelligence and policy types: Cody Shearer; Sidney Blumenthal; Jon Winer; Kathleen Kavalec; Victoria Nuland; Daniel Jones;

DOJ and FBI: Bruce Ohr; Peter Strzok; Andrew McCabe; James Baker; Sally Yates; Loretta Lynch;

Grassley, like me, doesn’t believe Brennan was out of the loop either: John Brennan

Oleg Deripaska and his lawyer: Oleg Deripaska; Paul Hauser;

It’s the last reference I’m particularly interested in.

When Simpson talked about how the dossier got leaked to BuzzFeed, he complains that, “I was very upset. I thought it was a very dangerous thing and that someone had violated my confidences, in any event.” The presumed story is that John McCain and his aide David Kramer were briefed by Andrew Wood at an event that Rinat Akhmetshin also attended, later obtained the memo (I’m still not convinced this was the full memo yet), McCain shared it, again, with the FBI, and Kramer leaked it to Buzzfeed.

But Grassley seems to think Russian oligarch Oleg Deripaska was in on the loop of this. Deripaska is important to this story not just for because he owns Paul Manafort (he figures heavily in this worthwhile profile of Manafort). But also because he’s got ties, through Rick Davis, to John McCain. This was just rehashed last year by Circa, which has been running interference on this story.

There is a report that Manafort laid out precisely the strategy focusing on the dossier that is still the main focus of GOP pushback on the charges against Trump and his campaign (and Manafort).

It was about a week before Trump’s inauguration, and Manafort wanted to brief Trump’s team on alleged inaccuracies in a recently released dossier of memos written by a former British spy for Trump’s opponents that alleged compromising ties among Russia, Trump and Trump’s associates, including Manafort.

“On the day that the dossier came out in the press, Paul called Reince, as a responsible ally of the president would do, and said this story about me is garbage, and a bunch of the other stuff in there seems implausible,” said a personclose to Manafort.

[snip]

According to a GOP operative familiar with Manafort’s conversation with Priebus, Manafort suggested the errors in the dossier discredited it, as well as the FBI investigation, since the bureau had reached a tentative (but later aborted) agreement to pay the former British spy to continue his research and had briefed both Trump and then-President Barack Obama on the dossier.

Manafort told Priebus that the dossier was tainted by inaccuracies and by the motivations of the people who initiated it, whom he alleged were Democratic activists and donors working in cahoots with Ukrainian government officials, according to the operative.

If Deripaska learned of the dossier — and obtained a copy from McCain or someone close to him — it would make it very easy to lay out the strategy we’re currently seeing.

Victoria Nuland gets ahead of the narrative by explaining her own role in the dossier

Shortly after I asked that question, Nuland (in about the first move that Democrats made to get ahead of the dossier) explained her own role. She had received reports he had done for other people, but when she heard of the Trump dossier, she (wary of Hatch Act violations) said the FBI should take the lead.

Glasser: And so, around this period is also when the famous dossier is starting to circulate. And it’s been reported that you were familiar already—and others were—with the work of Christopher Steele, that he had been a helpful source of information, of analysis and insight over the previous few years. Did you know him personally, or just his work?

Nuland: I did not know him personally. He had—’13, ’14, ’15, he had a number of corporate clients who were interested in who was in the decision-making loop on Ukraine issues in the Kremlin, who was in the—who the back channels were between Ukraine and Russia, and he was generous enough, as many people were in that period, to share their findings and their work with us, and all of us who were trying to understand it as a policy matter were taking all kinds of information. We never—

Glasser: But you weren’t personally debriefing?

Nuland: No, we never worked with him directly. We never tasked him. We never had an official association. His information on Russia and Ukraine was one of hundreds of sources that we were using at the time.

Glasser: When did you first hear about his dossier?

Nuland: I first heard—and I didn’t know who his client was until much later, until 2017, I think, when it came out. I first heard that he had done work for a client asserting these linkages—I think it was late July, something like that.

Glasser: That’s very interesting. And you would have taken him seriously just because you knew that he knew what he was talking about on Russia.

Nuland: What I did was say that this is about U.S. politics, and not the work of—not the business of the State Department, and certainly not the business of a career employee who is subject to the Hatch Act, which requires that you stay out of politics. So, my advice to those who were interfacing with him was that he should get this information to the FBI, and that they could evaluate whether they thought it was credible.

Jones and Deripaska’s roles remain unexplained, even in spite of Jane Mayer’s reporting on the latter

We still hadn’t heard about Jones or Deripaska’s role; Jane Mayer didn’t even clarify the latter in her 15,000 word Steele profile.

Orbis promises confidentiality, and releases no information on its clientele. Some of its purported clients, such as a major Western oil company, are conventional corporations. Others are controversial, including a London law firm representing the interests of Oleg Deripaska, the billionaire victor of Russia’s aluminum wars, a notoriously violent battle. He has been described as Putin’s favorite oligarch. Steele’s possible financial ties to Deripaska recently prompted Senator Grassley to demand more information from the London law firm. If a financial trail between Deripaska and Orbis can be established, it is likely to raise even more questions about Steele, because Deripaska has already figured in the Russia investigation, in an unsavory light. Paul Manafort, Trump’s former campaign manager, has been accused of defrauding Deripaska’s company while working for it in Ukraine. (Manafort has been indicted by Special Counsel Robert Mueller on charges of money laundering and other financial crimes. He has pleaded not guilty.) Even if Steele’s rumored work for Deripaska is aboveboard, it illustrates the transition that he has made from the world of government service to the ethically gray world of commerce. Oligarchs battling other oligarchs provide some of the most lucrative work for investigators with expertise in Russia. Orbis maintains that, as long as its activities are limited to providing litigation support for Western law firms acting in Western courts, it is helping to settle disputes in a more civilized way than they would be in Russia.

Oleg Deripaska’s bid to get ahead of Deripaska disclosures

Which brings us to Deripaska’s column in the (!?!?!) Daily Caller. Deripaska describes himself — in a column released even as Trump rolls out aluminum sanctions and just weeks after he stepped down as President — as “the founder of UC Rusal, the world’s leading producer of aluminum using clean, renewable hydropower.” The column drops a load of American cultural and historical references: Wag the Dog, Teddy Roosevelt, “World War II hero and former U.S. Sen. Daniel Inouye,” and George Soros.

The most remarkable passage, seemingly an attempt to leak where Grassley and Nunes might otherwise go, is this attack on Dan Jones and Nuland.

Yet on March 16, 2017, Daniel Jones — himself a team member of Fusion GPS, self-described former FBI agent and, as we now know from the media, an ex-Feinstein staffer — met with my lawyer, Adam Waldman, and described Fusion as a “shadow media organization helping the government,” funded by a “group of Silicon Valley billionaires and George Soros.” My lawyer testified these facts to the Senate Intelligence Committee on Nov. 3. Mr. Soros is, not coincidentally, also the funder of two “ethics watchdog” NGOs (Democracy 21 and CREW) attacking Rep. Nunes’ committee memo.

A former Obama State Department official, Nuland, has been recently outed as another shadow player, reviewing and disseminating Fusion’s dossier, and reportedly, hundreds of other dossiers over a period of years. “Deep State-proud loyalists” apparently was a Freudian slip, not a joke.

Deripaska names Jones as a “self-described former FBI agent,” as if FBI agents here are as thuggish and secretive as FSB agents in Russia. He suggests “we now know from the media” that Jones is “an ex-Feinstein staffer,” as if we don’t know in large part because of the Republican fight against the Torture report in (this is important!) the Senate Intelligence Committee. Then, after explaining on what authority he is sharing all this information — “My lawyer testified these facts to the Senate Intelligence Committee on Nov. 3,” — Deripaska claims third hand that Jones told his lawyer that Fusion is a “shadow media organization helping the government,” funded by a “group of Silicon Valley billionaires and George Soros.”

Among other things then, this is a very crafty attempt to get information submitted to the close-lipped SSCI, but probably not to SJC or HPSCI where everything leaks, into the public.

So Deripaska, presumably using one hell of a ghost writer, manages to spin a Paul Singer funded effort as a Soros cabal.

As noted above, there’s good reason to believe that Deripaska is the mastermind of the entire strategy of discrediting the dossier as a way to discredit the Mueller investigation. The last time he tried to discredit the investigation directly, prosecutors dinged Paul Manafort for violating the gag rule in the DC case; any bets they have the red line of this effort? Yet the name Manafort doesn’t appear here, so perhaps (especially as Manafort is officially on the clock in EDVA after his arraignment today as well as DC) Deripaska’s just getting around the gag.

As you read this work of art (really!), keep the following in mind: for all that Deripaska puts the focus on Jones and Nuland, he never gets around to explaining why Chuck Grassley thinks he had a role in the dissemination of the dossier, too. Or why he demanded immunity to testify to SSCI. At that level this may be an attempt to get ahead of disclosures about his role in the dossier.

Then, on February 14, Alex Van der Zwaan pled guilty to lying about communications with Deripaska’s flunkie Konstantin Kilimnik, making it clear (if it wasn’t already) that Kilimnik and through him Deripaska are a key focus of Mueller’s investigation.

February 14: Alex Van der Zwaan got caught and pled guilty to lying about communications he had with Rick Gates, Konstantin Kilimnik, and Greg Craig in September 2016. On top of whatever he had to say to prosecutors between his second interview on December 1 and his plea on February 14, both Craig and Skadden Arps have surely provided a great deal of cooperation before and since September 2016.

In addition, some currently sealed transcripts will soon be unsealed in the DC case that may name Kilimnik or Deripaska in more detail.

Oleg Deripaska was the key figure behind the larger conspiracy to defraud the US that Paul Manafort currently serves as the figurehead for. That will become increasingly clear in upcoming days (even assuming jailed sex worker Nastya Rybka’s claims to have recordings on election interference and Deripaska’s role in it never get substantiated), whether through additional Mueller indictments, Steele related disclosures, or reporting that finally explains the latter.

The Mueller Subpoena Starts at the Moment a Real Estate Deal in Moscow Might Get Trump Elected

Axios got a copy of a subpoena someone got from Robert Mueller last month. It asks for all communications (including handwritten notes) “this witness sent and received regarding the following people.” The list of people includes a lot of people you’d expect, but it’s missing a few:

  1. Carter Page
  2. Corey Lewandowski
  3. Donald J. Trump
  4. Hope Hicks
  5. Keith Schiller
  6. Michael Cohen
  7. Paul Manafort
  8. Rick Gates
  9. Roger Stone
  10. Steve Bannon

Cooperating witnesses George Papadopoulos and Mike Flynn aren’t on this list, but cooperating witness Rick Gates is (which may date the subpoena to before Gates flipped on February 23). The order is of particular interest (or, maybe they’re just alpha order by first name): Page, the long term suspected Russian asset, followed immediately by Lewandowski, who was in the loop on the stolen email offer, followed by the President and those closest to him, followed by Manafort and his closest aide. Then Stone and then — in the same month he gave 20 hours of testimony — Bannon.

Neither Don Jr nor Kushner is on this list. Given the emphasis on communications “regarding” the listed people, and given the way that Abbe Lowell purposely avoided giving “about”communications to Congress (and possibly to Mueller), and also given that Jonathan Swan is Axios’ key White House scoopster, I actually don’t rule out the witness being Jared. Or, as I joked on Twitter, like Flynn and Papadopoulos, maybe he has already flipped and so isn’t on this list.

Whoever it is, the absences on the list are probably a function of who is legitimately in this person’s circle.

Perhaps most telling, however, is the timing: November 1, 2015, to the present. Recall that on November 3, sometime FBI informant Felix Sater sent Michael Cohen (on the list) an email promising that a real estate deal in Moscow might lead to Trump becoming President. (Here’s the original WaPo scoop on the story.)

On November 3, 2015, two months before the GOP primary started in earnest and barely over a year before the presidential election, mobbed up real estate broker and sometime FBI informant Felix Sater emailed Trump Organization Executive Vice President and Special Counsel to Trump, Michael Cohen. According to the fragment we read, Sater boasts of his access to Putin going back to 2006 (when the Ivanka incident reportedly happened), and said “we can engineer” “our boy” becoming “President of the USA.”

[snip]

Mr. Sater, a Russian immigrant, said he had lined up financing for the Trump Tower deal with VTB Bank, a Russian bank that was under American sanctions for involvement in Moscow’s efforts to undermine democracy in Ukraine. In another email, Mr. Sater envisioned a ribbon-cutting ceremony in Moscow.

“I will get Putin on this program and we will get Donald elected,” Mr. Sater wrote.

That’s the start date Mueller uses for potential communications among people including Trump’s closest aides, including Cohen (but not including Sater) in the Russian investigation.

Update: Adding, we know that on October 21, 2016, the FBI had investigations into Manafort, Page, Stone, and possibly Gates. Is it possible this list is the sum of all those against whom sub-investigations have been opened (or were at the time this subpoena was issued)?

Mueller Wants to Know How Far the Game of Email Telephone Got within the Trump Campaign

NBC has a story that has gotten a lot of people excited, reporting that Mueller’s team has been asking:

  • Policy towards Russia: Why Trump took policy positions that were friendly toward Russia and spoke positively about Russian President Vladimir Putin
  • Roger Stone: Whether Stone was aware of information the group had before it became public and when it might be released
  • Trump’s knowledge: Whether Donald Trump was aware that Democratic emails had been stolen before that was publicly known, and whether he was involved in their strategic release

I think this story is both less and more than people are making it out to be.

It’s being overhyped for its facial value. Of course Mueller is going to ask about what the president knew and when he knew it. Of course he’s going to chase down whether Roger Stone’s repeated claims to know what was coming were bluster or not.

But on at least two counts, I think there’s more to this story than meets the eye.

First, as I noted when George Papadopoulos’ plea came out, the FBI charged the former foreign policy advisor for lying about whether he had been told of dirt on Hillary in the form of emails (which we now know they said they might anonymously leak to help Trump) before or after he joined the campaign. That they believed this important enough to charge suggests that, after two full months of cooperation, they got the answer they expected.

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

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

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

But we can be pretty sure what the answers are.

There’s no way Papadopoulos’ plea would have been rolled out in the way it was except to get everyone he had told about the emails (as well as those who were instructing him on how to negotiate a meeting with Putin) on the record first.

So Mueller has a good idea of who learned first hand from Papadopoulos about the emails. What he may not know (or may be trying to lock in with further testimony) is how far that game of telephone extended; did it include Trump, and if so via what interlocutors. (Rick Gates may be, or may already have, enlightened Mueller on this point.)

These questions are also interesting against the background of something else suggested by the Papadopoulos plea (and subsequent NYT reporting), which I laid out here. Papadopoulos appeared to be signaling Ivan Timofeev, and those signals were closely tied to email releases.

In this post I did a timeline of all the known George Papadopoulos communications. The timeline made something clear: on two occasions, Papadopoulos alerted Ivan Timofeev to something in a Trump speech. On each occasion, something happened with emails.

[snip]

I’m not saying that the timing of these email releases were dictated by the speeches. Of course they weren’t. They were timed to do maximal damage to the Hillary campaign (not incidentally, in a way that coincided with the “later in the summer” timing Don Jr asked for in his communications with Rob Goldstone).

Rather, I’m saying that Papadopoulos seems to have been signaling Timofeev, and those signals closely mapped to email releases.

And those signals are among the things he tried to destroy.

Importantly, that signaling pertained to public statements on policies of Russian interest. I laid out three apparent incidences in that post, incidences mentioned in the plea.

In this post, I suggested what might be a fourth: when Trump’s twitter account tweeted about Hillary’s emails just 40 minutes after the June 9 Trump Tower meeting started and incorporated a potentially accurate number for how many staffers Hillary had.

I want to return to a detail many others have already noted, Donald Trump’s tweet, just 40 minutes after the Trump Tower meeting started, referencing Hillary emails (albeit the ones she deleted off her server, not the still secret stolen ones).

Given that George Papadopoulos seemed to treat other public statements from the campaign (most notably Trump’s April 27 foreign policy speech) as signals to the Russians the campaign was prepared to take the next step, could this tweet be the same? A response, seemingly from the candidate himself, accepting a deal presented in the meeting?

[snip]

I’m at least as interested in why Trump (or rather, Scavino or Parscale or Don Jr) used the number “823” in the tweet. In the aftermath of the John Sipher interview Jeremy Scahill did, Sipher suggested to me might be some kind of signal, a code; he’s the pro–maybe he’s right.

But I was wondering whether it might, instead, reflect real-time knowledge of the Hillary campaign’s finances and resources. That is, I wondered whether that number might have, itself, reflected the sharing of some kind of data that could verify the Russians had compromised Hillary’s campaign (or at least researched it substantively enough to know more than the Trump camp did). The public use of the number, then, might serve as a signal that that message, and the inside data, had been received.

While the specific number is difficult to check, I’ve been told the 823 number would have been at least “in the ball park” of the real number of Hillary’s campaign staffers on June 9, 2016.

If this (or, specifically mentioned in the NBC story, Trump’s July call for Russia to release Hillary’s emails) were part of the signaling, then Trump either could have been in the loop, or one of the flunkies who ran his iPhone account before he switched to iPhone himself could have been.

Which leads me to one more question reported by NBC today, almost as an afterthought. At least one witness was asked about the boundaries of Dan Scavino’s job.

At least one witness has been asked about Trump aide Dan Scavino, specifically about any involvement he may have had in the campaign’s data operation. Scavino currently runs the White House’s social media operations and is one of Trump’s closest aides.

I’m particularly interested in this given the report that Scavino was involved in negotiations through Rob Goldstone for promotions on Russian social media platform VKontakte, and the odds that he might have been the one tweeting any signaling tweets using Trump’s campaign.

So while these questions are, on the one hand, bloody obvious, they also may suggest a far more advanced understanding of how this operation might have worked.

What Lies Beneath the Gates

[NB: Note the byline; this post is speculative. /~Rayne]

It’s amazing what a simple internet search can reveal. Take, for instance, a search using the rather innocuous parameters, [“rick gates” iii “press release”].

A little scrolling and presto — some interesting things surface.

Did you know that Rick Gates had served on the board of ID Watchdog, a “consumer-facing identity theft protection and resolution services” firm for use in safeguarding personal credit? But that’s not the entire story; take a look at this timeline:

2010 — Gates, along with his business partner Paul Manafort, worked as an unregistered agent for Victor Yanukovych (who would take office as Ukraine’s president in 2010) and Yanukovych’s political parties. Gates and Manafort represented Yanukovych from at least 2006 through 2015, laundering Yanukovych’s payments through scores of U.S. and foreign entities and bank accounts, using foreign nominee companies and bank accounts created/opened by them and their accomplices in nominee names and in various foreign countries (see DOJ’s indictment dated 27-OCT-2017).

19-APR-2011 — Gates joined the board of publicly-listed credit monitoring firm ID Watchdog. Gates bio from the press release:

Mr. Gates has over 15 years of international political, finance and business development experience working for multinational firms. Currently, he is the managing partner of Pericles LP, a private equity fund, that focuses on technology, infrastructure, and real estate targets. Much of his work focuses on investment, business development and deal structures in Europe.

Mr. Gates has worked on several US presidential campaigns and has participated in many international political campaigns in Europe and Africa. Mr. Gates graduated with a M.A. in Public Policy from George Washington University and a B.A. in Government from The College of William & Mary. He also completed the Executive Management Programme in Brussels and London.

26-JUL-2011 — 2010 tax filing (assume Gates filed his taxes on/about this time in the absence of confirmation by image of tax return); a fraudulent tax return was filed.

11-OCT-2012 through 14-OCT-2015 — Gates under-reported his income, filing fraudulent tax returns during this period which did not reflect full amount of payments from Yanukovych and parties. Gates also did not file Foreign Bank and Financial Accounts (FBAR) reports disclosing offshore bank accounts from which cash was wired after being laundered through numerous shell businesses.

21-JUN-2016 — When Paul Manafort was elevated by Donald Trump to campaign chair after firing Corey Lewandowski, Gates worked as Manafort’s deputy. He would remain deputy after Manafort resigned on August 19.

09-NOV-2016 — Gates stepped down from his role at ID Watchdog, a day after the 2016 presidential election. He then became deputy chairman of the inaugural committee.

??-DEC-2016 — A security researcher notified credit reporting company Equifax that an employee portal was open to the internet and vulnerable.

07-MAR-2017 — A patch was issued for the Apache Struts (CVE-2017-5638) vulnerability.

??-MAR-2017 — Equifax was hacked for the first known time; it contacted Mandiant for assistance. It did not notify the government or consumers.

…the company said it experienced a security incident involving a payroll-related service during the 2016 tax season earlier this year. Equifax said the incident was reported to customers, affected individuals and regulators.

??-JUN-2017 — Equifax closed the vulnerable employee portal

16-JUN-2017 — ID Watchdog announced it had agreed to be acquired by Equifax.

13-MAY/30-JUL-2017 — From Equifax’s press release dated September 15:

Based on the company’s investigation, Equifax believes the unauthorized accesses to certain files containing personal information occurred from May 13 through July 30, 2017.

29-JUL-2017 — Date which Equifax’s CEO said a breach was first noticed.

01/02-AUG-2017 — Four Equifax executives who sold a combined $2 million in company stock over these two days claimed they did not know about the breach at the time they traded their shares.

02-AUG-2017 — Equifax contacted Mandiant to conduct a forensic investigation into the breaches. The fourth of four Equifax executives sold a portion of his company stock on the same day.

10-AUG-2017 — Equifax announced it had acquired ID Watchdog.

07-SEP-2017 — Equifax notified the public that it has been breached and 145.5 million consumers’ credit data has been exposed.

18-SEP-2017 — Equifax’s earlier breach in March was made public.

27-SEP-2017 — Consumer Financial Protection Bureau’s then-Director Richard Cordray said regulators would be embedded within credit reporting companies to prevent future breaches of consumers’ data.

15-OCT-2017 — About this time, local news reported Gates was still working for Tom Barrack, CEO of Colony Capital and a member of the Presidential Council of Economic Advisers, prior to the indictment.

27-OCT-2017 — Gates was indicted for the first time.

15-NOV-2017 — Cordray stepped down as CFPB’s director.

25-NOV-2017 — Trump named Office of Budget and Management’s director Mick Mulvaney to succeed Cordray, to hold two offices concurrently.

18-JAN-2018 — Mulvaney allotted zero dollars for CFPB in the federal budget.

05-FEB-2018 — Mulvaney “pulled back from a full-scale probe” into Equifax’s breach.

This chain of events raises so many questions.

— Why Gates? Of all the people a public-listed company like ID Watchdog could pick, why this particular person with weak credentials in technology, let alone identity management or credit monitoring? Does Gates have a special relationship to ID Watchdog in some way?

— As a board member, what kind of access did Gates have to ID Watchdog’s systems? Did ID Watchdog have any ties or links to Equifax before the breaches?

— Did ID Watchdog provide any services to Gates — and possibly his partner, Paul Manafort — related to identity validation and monitoring? Did Gates acquire his second passport while serving on ID Watchdog’s board? What of his partner Manafort, who had at least 10 passports and possibly more identities?

— If ID Watchdog provided services to Gates, did any of Gates’ many bank accounts ever trigger alerts?

Gates “frequently changed banks and opened and closed bank accounts,” prosecutors said. In all, Gates opened 55 accounts with 13 financial institutions, the prosecutors’ court filing said. Some of his bank accounts were in England and Cyprus, where he held more than $10 million from 2010 to 2013.

— Doesn’t it seem odd Gates would serve on the board of an identity-monitoring firm located in Denver, CO while he was working frequently on lobbying-related contracts overseas and on the Trump campaign? Was he compensated by ID Watchdog and was this income reported accurately on tax filings?

— Did Equifax begin acquisition negotiations with ID Watchdog before or after Gates’ departure from the board? If before, did Gates play any role in the negotiations? Or does the timing of the acquisition simply look bad because of the breaches?

— Did Mick Mulvaney pull back on the CFPB’s investigation and oversight measures into Equifax as well as the other credit reporting bureaus to prevent any review of Trump campaign or administration members’ relationships with Equifax, or their data reported by Equifax and ID Watchdog? Did Mulvaney suppress the Equifax investigation and starve CFPB because he’s a misogynist ass and just wants to be a dick to Senator Elizabeth Warren? Or did Mulvaney merely toss ethics in his handling of CFPB including the Equifax investigation as payback for campaign contributors when he represented South Carolina as a congressman?

Perhaps it’s simply an interesting coincidence that a former Trump campaign team member who has been charged with multiple counts of bank and tax fraud, just happened to sit on ID Watchdog’s board of directors while he committed aforementioned fraud.

Maybe it’s just a weird quirk of fate that Equifax bought ID Watchdog around the same time it was being hacked a second time, potentially exposing Rick Gates’ credit records (and Paul Manafort’s) along with those of +145.5 million other consumers.

But it seems a massive stretch for us not to look a little further when Trump’s OMB director commits the CFPB to a slow death by budgetary starvation before icing the Equifax investigation and ID Watchdog’s role along with it.

The Silent Cast of Characters in the Very Noisy Recent Mueller Moves

A fuck-ton has happened in the Mueller investigation already this month. Amid the noisy pleas and indictments, we’ve seen indications of hidden cooperation from a range of people, cooperation that may point to where Mueller’s next steps are.

Here, arranged by the date of the development, are hints at who either was or soon is likely to be talking to Mueller’s team.

February 1: In a proffer to Mueller’s team, Rick Gates lied about a March 19, 2013 meeting with Paul Manafort, Vin Weber, and Dana Rohrabacher.

Rohrabacher’s statement in response to the guilty plea is inconsistent with the version laid out in the plea, suggesting he’s not the means by which Mueller’s team learned it was a lie.

After the guilty plea on Friday, a spokesman for Rohrabacher, who has sought better relations with Russia, said: “As the congressman has acknowledged before, the meeting was a dinner with two longtime acquaintances –- Manafort and Weber –- from back in his White House and early congressional days.”

“The three reminisced and talked mostly about politics,” the spokesman said. “The subject of Ukraine came up in passing. It is no secret that Manafort represented Viktor Yanukovych’s interests, but as chairman of the relevant European subcommittee, the congressman has listened to all points of view on Ukraine.”

This suggests someone else provided the version of the meeting the government included in the plea. While it’s possible the other version came from Gates’ former lawyers, it’s more likely the version came from someone else. Vin Weber is the most likely source of that information.

Back in August 2016, as news of the secret ledger was breaking,Weber suggested he may have been misled by Manafort, both as to the purpose of his lobbying and regarding the need to register as a foreign agent for Ukraine. If he felt that way in August 2016, I imagine he came to feel that even more strongly as Manafort’s legal woes intensified.

February 9: Returning a call from John Kelly but speaking to Don McGahn, Rod Rosenstein spoke of “important new information” about Jared Kushner that will delay his clearance.

Given all the evidence that suggests Jared faces very significant exposure in this investigation, this new information could be any number of things. But two possibilities are likely. First, it might reflect Jared’s January 3 disclosure of additional business interests in yet another update to his SF-86, or his family’s increasing debt over the last year.

More likely, it reflects things the government has learned from Mike Flynn (who has an incentive to burn Jared, given that the President’s son-in-law was asked for and didn’t provide exonerating information tied to Flynn’s own lies to the FBI). Indeed, that seems to be one theory of those who reported on this phone call.

Kushner’s actions during the transition have been referenced in the guilty plea of former Trump national security adviser Michael Flynn, who admitted he lied to the FBI about contacts with then-Russian Ambassador Sergey Kislyak. Prosecutors said Flynn was acting in consultation with a senior Trump transition official, whom people familiar with the matter have identified as Kushner.

All that said, there are two more possibilities. Given that she appears to have lied to the Senate Foreign Relations Committee in her confirmation process, KT McFarland would be an obvious follow-up interview after the Mike Flynn plea; she asked Trump to withdraw her nomination to be Ambassador to Singapore on February 3. And February 9 might be (though probably isn’t, quite) late enough to catch the first sessions of Steve Bannon’s 20 hours of interviews with Mueller, and Bannon has long had it in for Jared.

February 14: Alex Van der Zwaan got caught and pled guilty to lying about communications he had with Rick Gates, Konstantin Kilimnik, and Greg Craig in September 2016. On top of whatever he had to say to prosecutors between his second interview on December 1 and his plea on February 14, both Craig and Skadden Arps have surely provided a great deal of cooperation before and since September 2016. (As I was finishing this, NYT posted this story that details some, but not all, of that cooperation.)

February 16: As I noted in my post on the Internet Research Agency indictment, Rod Rosenstein was quite clear: “There is no allegation in the indictment that any American was a knowing participant in the alleged unlawful activity.” That said, there are three (presumed) Americans who, both the indictment and subsequent reporting make clear, are treated differently in the indictment than all the other Americans cited as innocent people duped by Russians: Campaign Official 1, Campaign Official 2, and Campaign Official 3. We know, from CNN’s coverage of Harry Miller’s role in building a cage to be used in a fake “jailed Hillary” stunt, that at least some other people described in the indictment were interviewed — in his case, for six hours! — by the FBI. But no one else is named using the convention to indicate those not indicted but perhaps more involved in the operation. Furthermore, the indictment doesn’t actually describe what action (if any) these three Trump campaign officials took after being contacted by trolls emailing under false names.

On approximately the same day, Defendants and their co-conspirators used the email address of a false U.S. persona, [email protected], to send an email to Campaign Official 1 at that donaldtrump.com email account, which read in part:

Hello [Campaign Official 1], [w]e are organizing a state-wide event in Florida on August, 20 to support Mr. Trump. Let us introduce ourselves first. “Being Patriotic” is a grassroots conservative online movement trying to unite people offline. . . . [W]e gained a huge lot of followers and decided to somehow help Mr. Trump get elected. You know, simple yelling on the Internet is not enough. There should be real action. We organized rallies in New York before. Now we’re focusing on purple states such as Florida.

The email also identified thirteen “confirmed locations” in Florida for the rallies and requested the campaign provide “assistance in each location.”

[snip]

Defendants and their co-conspirators used the false U.S. persona [email protected] account to send an email to Campaign Official 2 at that donaldtrump.com email account.

[snip]

On or about August 20, 2016, Defendants and their co-conspirators used the “Matt Skiber” Facebook account to contact Campaign Official 3.

Again, the DOJ convention of naming makes it clear these people have not been charged with anything. But we know from other Mueller indictments that those specifically named (which include the slew of Trump campaign officials named in the George Papadopoulos plea, KT McFarland and Jared Kushner in the Flynn plea, Kilimnik in the Van der Zwaan plea, and the various companies and foreign leaders that did Manafort’s bidding, including the Podesta Group and Mercury Public Affairs in his indictment) may be the next step in the investigation. As a reminder: Florida Republicans are those who most tangibly can be shown to have benefitted from Russia’s hack-and-leak, given that Guccifer 2.0 leaked a slew of Democratic targeting data for the state. (In perhaps related news, this week Tom Rooney became the third Florida Republican member of Congress to announce his retirement this cycle, which is all the more interesting given that he’s been involved in the HPSCI investigation into Russian tampering.)

February 23: Manafort’s superseding indictment (a version of which was originally filed February 16) added the description of the Hapsburg Group for former European officials who lobbied at the direction (to some degree via cut-outs) of Manafort.

MANAFORT explained in an “EYES ONLY” memorandum created in or about June 2012 that the purpose of the “SUPER VIP” effort would be to “assemble a small group of high-level European highly influencial [sic] champions and politically credible friends who can act informally and without any visible relationship with the Government of Ukraine.” The group was managed by a former European Chancellor, Foreign Politician A, in coordination with MANAFORT.

It may be that the government only recently obtained this document (meaning it was not among the 590,000 pages of documents obtained and turned over to Manafort in discovery thus far). But it’s likely this also reflects further testimony. Former Austrian Chancellor Alfred Gusenbauer denied he is Foreign Politician A to BBC, though that may be a non-denial denial tied to his claim he wasn’t directed by Manafort and only met him a few times (this Austrian story suggests only he doesn’t remember what American or English firm paid him). NYT reported that Gusenbauer’s lobbying during the relevant time period was registered under Mercury Public Affairs. This is another piece of evidence suggesting the group — and Vin Weber personally — has been cooperating since the original indictment.

Note, I assume that Mercury/Weber’s cooperation has been mirrored by Tony Podesta’s.

Konstantin Kilimnik’s PRISM-Accessible Communications

I doubt I’ll be done working my way through the new Paul Manafort and Rick Gates charges before such analysis would be overtaken by events (like the on-again flip of Gates). For now, Quinta Jurecic’s analysis is quite good.

Before I start, though, I want to go back and look at a detail from the Alex van der Zwaan plea materials (information, plea, statement of offense).

Best as we understand, former Skadden associate van der Zwaan pled guilty, with no forward cooperation requirement, for having hidden some communications he had with Rick Gates, Greg Craig (who must be the senior partner described), and Konstantin Kilimnik (believed to be Person A) in September 2016 about the aftermath of a report Skadden had done on the prosecution of Yulia Tymoshenko.

In or about September 2016, VAN DER ZWAAN spoke with both Gates and Person A regarding the Report. In early September 2016, Gates called VAN DER ZWAAN and told him to contact Person A. After the call, Gates sent VAN DER ZWAAN documents including a preliminary criminal complaint in Ukraine via an electronic application called Viber. VAN DER ZWAAN then called Person A and discussed in Russian that formal criminal charges might be brought against a former Ukrainian Minister of Justice, Law Firm A, and Manafort. VAN DER ZWAAN recorded the call. VAN DER ZWAAN then called the senior partner on the Report at Law Firm A and partially recorded that call. Finally, VAN DER ZWAAN called Gates and recorded the call. VAN DER ZWAAN also took notes of the calls.

Prior to the November 3, 2017, interview, VAN DER ZWAAN did not produce to Law Firm A and deleted and otherwise did not produce emails he possessed that he understood had been requested by either the Special Counsel’s Office or Law Firm A, or both, including an email in Russian dated September 12, 2016 in which Person A asked VAN DER ZWAAN to contact Person A and to use an encrypted application.

One thing Van der Zwaan would have hidden was that he communicated with Gates after Paul Manafort had left the campaign, September 2016, as the Trump campaign was trying to clean up their taint from Manafort’s Ukraine stench.

Given the details in the information, it appears that in his November 3, 2017 interview, after he lied about when he had most recently talked with Kilimnik and Gates, he was asked about the email he didn’t turn over to Skadden and the government.

During the November 3, 2017, interview, VAN DER ZWAAN knowingly and intentionally falsely stated the following:

a. his last communication with Gates was in mid-August 2016, which consisted of an innocuous text message;

b. his last communication with a longtime business associate of Manafort and Gates in Ukraine (Person A) was in 2014, when he talked with Person A about Person A’s family; and

c. he did not know why Law Firm A had not produced to the Special Counsel’s Office a September 2016 e-mail between him and Person A.

This seems to suggest that before the end of Van der Zwaan’s first interview, they already confronted him with the fact that he was lying.

But that wasn’t his only interview. Van der Zwaan had a second interview (where he apparently added to his lies) on December 1. (NYCSouthpaw made this observation.)

I’ll probably return to the second interview.

For now, what I’m primarily interested in is that on November 3, 2017, the government had the email between Van der Zwaan and Kilimnik where the latter told the former to move their conversation to an (unnamed) encrypted app, and by the end of the interview confronted him with that fact.

I previously noted (with surprise) that Kilimnik used Gmail for his November 2017 correspondence with Paul Manafort helping to edit an op-ed to push back against his charges. If Manafort didn’t already know the Feds had obtained a bunch of Gmail (and — as  yesterday’s superseding indictment makes clear, his own firm’s email), a sealed December 8 declaration that was unsealed on January 3 would have made that clear.

It continues to surprise me that these thugs never thought about how accessible PRISM-based communications were to the Feds, unless Kilimnik has reason to be happy that his American correspondents will be seen by the FBI.

I guess it’s not just Hope Hicks who underestimates how accessible email is to criminal investigators.

So — What’s New, Rick? Paul? Fresh Indictments Today on Bank, Tax Fraud

Open thread for you folks to talk about the latest developments in the Trump-Russia investigation.

Earlier this afternoon, U.S. District Court Judge Amy Berman Jackson rejected the bail package offered by Paul Manafort as the property offered as collateral wasn’t free and clear.

From reports about this rejection there were hints another shoe would drop soon.

Bingo — multiple counts of bank and tax fraud levied against each and both Manafort and his partner, Rick Gates.

Manafort was charged with a count each for each year:
Subscribing to False U.S. Individual Income Tax Returns for years 2010, 2011, 2012, 2013, 2014
Failure to File Reports of Foreign Bank and Financial Accounts for years 2011, 2012, 2013, 2014

Gates was charged with a count each for year:
Assisting in the Preparation of False U.S. Individual Income for 2010, 2011, 2012, 2013, 2014
Subscribing to False U.S. Individual Tax Returns for years 2010, 2011, 2012, 2013, 2014
Subscribing to False Amended U.S. Individual Tax Returns for 2013
Failure to File Reports of Foreign Bank and Financial Accounts for 2011, 2012, 2013

Both Gates and Manafort were charged with one count for each year:
Bank Fraud Conspiracy (Lender B/$3.4 million)
Bank Fraud (Lender B/$3.4 million)
Bank Fraud Conspiracy (Lender C/$1 million)
Bank Fraud (Lender C/$1 million)
Bank Fraud Conspiracy (Lender B/$5.5 million)
Bank Fraud Conspiracy (Lender D/$9.5 million)
Bank Fraud (Lender D/$9.5 million)
Bank Fraud Conspiracy (Lender D/$6.5 million)
Bank Fraud (Lender D/$6.5 million)

That’s 18 counts for Manafort, 23 counts for Gates. (Do check my math, I am working off a ridiculously small mobile device screen – thanks!)

These charges open many questions, but perhaps we ought to spend our time looking at the indictment itself. I know you’ll find parts amusing.

You can read it at this link (pdf).

Quentin Hardy observed via Twitter:

Nice touch in the new indictment: Manafort has “a lavish lifestyle,” while Gates is portrayed as just a simple suburban money launderer.

Better buy up extra popcorn, gang. We’re going to need it.

Jared’s Clearance and the Foreign Policy Version of Conspiracy to Defraud America


I confess there is no multi-day Trump story I’ve looked forward to more than the problem with Jared Kushner’s clearance. And it is officially here. Last night, the NYT described how Jared is butting heads with John Kelly over whether he’ll lose clearance under Kelly’s post-Rob Porter mandate that people who can’t be cleared won’t be kept around anymore.

Kushner, frustrated about the security clearance issue and concerned that Mr. Kelly has targeted him personally with the directive, has told colleagues at the White House that he is reluctant to give up his high-level access, the officials said. In the talks, the officials say, Mr. Kushner has insisted that he maintain his current level of access, including the ability to review the daily intelligence briefing when he sees fit.

Today CNN and WaPo weigh in, with CNN nodding towards the conflict this will present Trump.

Though a source familiar with the situation said Kushner has not yet appealed to the President directly about his access to highly classified information, those close to Trump believe he would be inclined to grant his son-in-law access if asked. This source pointed to the fact that Kushner is part of the President’s family and has outlasted all of his rivals in Trump’s inner circle, including former chief of staff Reince Priebus, former chief strategist Steve Bannon, former campaign manager Corey Lewandowski and former deputy campaign manager David Bossie.

Trump, however, has given Kelly his full support in efforts to reform the White House’s system of security clearances, and has told his chief of staff that changes need to be made to bring the system into order, according to a person who has spoken to him about the matter. Kelly has interpreted that as a wide-ranging mandate that would include Kushner, a person familiar with the matter said. The person said Trump and Kelly would likely discuss the matter this week, if they haven’t already, before Kelly’s self-imposed Friday deadline.

WaPo brings the appropriate level of skepticism over whether Kushner can really do his Fake Peace Plan job without clearance.

It is not clear how Kushner could perform his job without a high-level security clearance.

He holds a broad range of responsibilities, from overseeing peace efforts in the Middle East to improving the efficiency of the federal government. And he is the administration’s interlocutor with key allies, including China and Saudi Arabia, where he has developed a personal relationship with the young crown prince, Mohammed bin Salman.

[snip]

And apart from staff on the National Security Council, he issues more requests for information to the intelligence community than any White House employee, according to a person with knowledge of the situation, who spoke on the condition of anonymity to describe private discussions.

More importantly, WaPo includes a series of false bravado quotes from Jared’s defense attorney, Abbe Lowell, who bizarrely offered up his judgement that Jared is speaking with foreign officials “properly.”

“My inquiries to those involved again have confirmed that there are a dozen or more people at Mr. Kushner’s level whose process is delayed, that it is not uncommon for this process to take this long in a new administration, that the current backlogs are being addressed, and no concerns were raised about Mr. Kushner’s application,” he said in a statement.

[snip]

Lowell said Kushner’s job is “to talk with foreign officials, which he has done and continues to do properly.”

I’ve come to think of Kushner’s clearance process in similar terms to the way I’ve thought of the bail process Mueller has used with Paul Manafort and Rick Gates: While Gates ultimately did make bail, Manafort is still (!) almost four months after his arrest, struggling to show enough liquidity free of taint from his money laundering to alter his release conditions. The process of making bail (and having to serially beg to attend his kids’ soccer events) seems to have been one of the factors that brought Gates to the point of flipping, but along the way, he probably gave Mueller’s team far more leverage in plea negotiations, because they know how little Gates actually has to pay a defense attorney to oversee the flip (indeed, that may lie behind the confusion over Gates’ current legal representation).

Kushner’s liquidity problems are literally an order of magnitude greater than these men. But unlike them, he made the idiotic decision to work in the White House, and thereby to undergo the scrutiny of sworn statements laying out all the financial vulnerabilities and foreign entanglements that might make him susceptible to blackmail.

Which brings me back to my description of how Mueller is leveraging “conspiracy to defraud the United States” (what I will henceforward refer to as ConFraudUS*) charges to prosecute political influence peddling for which our regulatory system has completely collapsed. With the Internet Research Agency indictment, Mueller charged ConFraudUS because the trolls bypassed a campaign finance system that no longer works. With Manafort and Gates, Mueller charged ConFraudUS because they bypassed Foreign Agents Registration Act requirements that have never been enforced.

In the old days, to pursue the kind of quid pro quo we see outlines of, in which Trump officials (from George Papadopoulos’ proposed business with Sergei Millian to the possibility Kushner might get bailed out by the Russian Direct Investment Fund, which is itself a cut-out for the sanctioned Vnesheconombank, whose head, Sergey Gorkov, Kushner met in December 2016), you’d pursue bribery. But post-Bob McDonnell, bribery is a far tougher charge to make stick, as Mueller prosecutor Andrew Goldstein, who worked on the Sheldon Silver prosecution team, knows well.

What if, however, you could charge people whose meetings seamlessly tie the foreign policy decisions of the United States with discussions of their own financial interests, with ConFraudUS? That might make it easier to charge someone whose foreign policy decisions don’t serve the US interest but might enrich them for the quid pro quo entailed.

Which is why I’m interested in the report that Mueller has shown increased interest (almost certainly tied to Steven Bannon’s public pronouncements that, “It goes through Deutsche Bank and all the Kushner shit”) in Jared’s foreign financial dealings, how he has mixed his business interests and US foreign policy.

One line of questioning from Mueller’s team involves discussions Kushner had with Chinese investors during the transition, according to the sources familiar with the inquiry.
A week after Trump’s election, Kushner met with the chairman and other executives of Anbang Insurance, the Chinese conglomerate that also owns the Waldorf Astoria hotel in New York, according to The New York Times.

At the time, Kushner and Anbang’s chairman, Wu Xiaohui, were close to finishing a deal for the Chinese insurer to invest in the flagship Kushner Companies property, 666 Fifth Avenue. Talks between the two companies collapsed in March, according to the Times.

Mueller’s team has also asked about Kushner’s dealings with a Qatari investor regarding the same property, according to one of the sources. Kushner and his company were negotiating for financing from a prominent Qatari investor, former prime minister Hamad bin Jassim Al Thani, according to The Intercept. But as with Anbang, these efforts stalled.

Lowell’s false bravado in this report is even more ridiculous than that in the clearance stories.

A representative for Kushner declined to comment prior to the publication of this story. After publication, Kushner attorney Abbe Lowell told CNN in a statement, “Another anonymous source with questionable motives now contradicts the facts — in all of Mr. Kushner’s extensive cooperation with all inquiries, there has not been a single question asked nor document sought on the 666 building or Kushner Co. deals. Nor would there be any reason to question these regular business transactions.”

Lowell may not have turned over any documents relating to 666 Fifth Avenue. But Deutsche Bank got subpoenas even before Bannon started running his mouth (albeit in a separate EDNY probe). Moreover, the key detail under my imagined ConFraudUS charge would be whether Kushner did things — like try to get Chinese investors visas — that didn’t serve or indeed violated the interests of the United States. Admittedly, the President gets largely unfettered control over the foreign policy of the United States (though Trump has defied Congress in areas where they do have some control). But to the extent Jared pursued his own business interests during the transition, he wouldn’t be able to claim to rely on presidential prerogative.

Which brings me back to Jared’s long struggle to get a security clearance.

Abbe Lowell may not have turned over the financial documents on 666 Fifth Avenue that would show how susceptible Jared’s debt woes make him to foreign influence. But he has serially provided that evidence in support of Jared’s almost certainly futile attempt to convince the FBI he should get a permanent TS/SCI security clearance.

I laid this out yesterday at the very end of my Democracy Now appearance:

I think—the reason why Kushner’s business deals are important, we’ve talked—and in the intro, this wasn’t the only example of—there’s the Don Jr. We’ve talked about how poorly Trump’s people have separated his business interests from the interests of the country. The same is even more true for Jared Kushner, whose family business is basically bankrupt. And over and over again, he’s been shown to be in negotiations with entities, including Russians, but also Chinese and Middle Eastern. So, you know, he’ll go in and say, “OK, we’ll talk about this grand peace plan,” which is not about peace at all, “but, oh, by the way, can you bail out our 666 Park Avenue building, which is badly underwater?” And I think Mueller could make the same argument he’s made with the IRA indictment and the Manafort indictment, and say that Jared Kushner is pretending to be serving America’s foreign policy interests, but in fact he is just doing his own bidding. He’s just trying to bail out his own company. So I wouldn’t be surprised if he’s moving towards a very similar indictment on conspiracy to defraud the United States, having to do with his conflicts of interest.

AMY GOODMAN: And, of course, interesting that Kushner also hasn’t managed to get top security clearance, when he’s a senior adviser to President Trump, as Porter didn’t because he beat his wives, etc. And then you’ve got Donald Jr. now in India promoting Trump businesses, as, of course, Donald Trump is the president of the United States. And he’s standing with the prime minister of India as he does this, promoting the Trump brand, Marcy.

MARCY WHEELER: Exactly. I mean, if Trump and his son and his son-in-law are pretending to be doing the business of the United States but are instead just trying to enrich themselves, again, I don’t think it’s a—you know, we’ve talked about the Emoluments Clause and how you go after the Trump campaign—the Trump officials for their egregious conflicts of interest. And, frankly, it extends into his Cabinet. But what Mueller seems to be doing, with some very good appellate lawyers, by the way, is to be laying out this framework that if you are pretending to be doing something in the interest of the United States but are actually doing something else, serving somebody else’s bidding, whether it’s Russia, pro-Russian Ukrainian political party, or whether it’s your own family business, then they’re going to go after you for a conspiracy charge. And I wouldn’t be surprised if these conspiracy charges all kind of link up at the end, in this kind of grand moment of—I think that’s where he’s headed.

Remember, Trump and his spawn never really thought they’d win the election. Instead, they seemed interested in, among other things, a Trump Tower in Moscow and refinancing 666 Fifth Avenue. But if they made deals with Russians in hopes such personal financial benefits would result, a ConFraudUS charge might be a way to prosecute them for it.

*I originally shortened this “CTDTUS,” but following Peter Crowley’s suggestion, I’m instead using “ConFraudUS.”

 

[Note: At the top of this post there is an embedded video of Marcy’s interview with Democracy Now. It isn’t rendering properly on all browsers and operating systems and may appear as a blank space. You can watch the video or listen to audio at this link. /~R]

Open Thread: All in the Families?

This is an open thread dedicated to this morning’s news. By now many of  you have heard that Alex van der Zwaan, a lawyer at mega-lawfirm Skadden, Arps, Slate, Meagher & Flom, was charged today by Team Mueller for making false statements while answering questions about his work for the Ukrainian Ministry of Justice in its case against Ukraine’s former prime minister Yulia Tymoshenko.

The “materially false, fictitious, and fraudulent statements and representations” arose from questions about interactions related to Paul Manafort’s partner Rick Gates and “Person A.”

[insert blogger’s laugh] Gee, I wonder who Person A could be? *

You can read the short and sweet court filing here (pdf).

These folks from Team Mueller signed the filing: Andrew Weissman, Greg Andres, Kyle Feeny, Brian Richardson. Add them and this assignment to Marcy’s bingo card

Richardson is a new name, which Marcy noted, already wondering if he is Mystery Prosecutor 17? She’ll probably elaborate in a separate post.

For a little background on Skadden Arps’ relationship to Ukraine, see this this NYT piece from September 21 last year: Skadden, Big New York Law Firm, Faces Questions on Work With Manafort

There was related legal news last autumn — emphasis on related.

Alfa Bank co-owners German Khan, Mikhail Fridman, and Peter Aven filed suit last October against Fusion GPS and Glenn Simpson claiming the Steele dossier was defamatory. Their reputations were “gravely” damaged as the dossier indicated they were engaged in criminal activity with Russia’s president Vladimir Putin.

Khan just happens to be van der Zwaan’s father-in-law. It’s a small world, yes?

It’ll be amusing if the Mueller-led investigation ends up unintentionally corralling multiple families.

* EDIT — 1:30 pm EST — I meant to add that  Andrea Manafort Shand, Paul Manafort’s daughter, was an associate at Skadden Arps-Washington DC office. I haven’t seen anything to suggest she’s involved in any way with today’s charges or that she’s Person A but stranger things have happened. Like the leaking of hacked text messages between Manafort’s daughters which have not been disavowed.

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In case you missed it this morning, Marcy was on Democracy Now this morning, talking about the Mueller probe and the IRA indictment last Friday.

A transcript isn’t up as I type this but the video and audio are up on the main site under the Daily Show at the right side of Democracy Now’s homepage. I’ll add a link to the transcript as it becomes available.

Have at it!