Category: Donald Trump

Trump and the Russian Beauty Queen

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Part I: The princess in the gilded cage

Oxana Fedorova was a tall, raven-haired beauty from Pskov, a old Russian city near Estonia.  She was studying to be a police officer in St. Petersburg, Russia when she decided to try her luck in a local modeling contest. Fedorova entered the 1999 Miss St. Petersburg pageant and won. Two years later, the 23-year-old police lieutenant became Miss Russia, which awarded her a new Mercedes and a Cartier watch.

Vladimir Putin, newly installed as Russia’s president, was said to be a keen admirer of the reigning Miss Russia, a karate black belt and an excellent shot. A photo of Fedorova was on display near his office in the Kremlin. The Telegraph of London reported that the organizers of the Miss Russia pageant had crowned Fedorova “in a feudal display of loyalty to the head of state.” She was even rumored to be Putin’s secret lover. Not true, Fedorova said. “It’s just a coincidence that we are both from St. Petersburg, the work of fate. There are no links with the president.”

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Vladimir Golubev

Fedorova’s real boyfriend wasn’t the president. He was a Russian mobster from St. Petersburg.

Vladimir Semenovich Golubev, aka “Barmeley,” got out of  in prison and became a gangster in St. Petersburg in the 1990s. Golubev was a silent partner in Adamant Holding, a real estate company founded in 1992 that today controls 29 shopping malls in St. Petersburg.  (See Russian Forbes.)

The Russian press reported that Golubev had links to the Tambov gang, a criminal syndicate that dominated St. Petersburg in the 1990s. Back then, the deputy mayor of St. Petersburg, a man named Vladimir Putin, was collaborating with the Tambov gang to launder money and gain control of the gambling business. (See Karen Dawisha’s excellent book Putin’s Kleptocracy.)

According to Russian press reports, Golubev had supported Fedorova since she she had won Miss St. Petersburg as a teenager. Fedorova reportedly traveled either in his company or with guards he sent to accompany her. Officials with Miss Universe noted that money never seemed to be a problem for the beauty queen.  She was like a beautiful bird living in Golubev’s gilded cage.

Part II: Miss Universe

In 2002, Oxana Fedorova entered Miss Universe, the international beauty pageant then owned by Donald Trump.

The pageant was held in San Juan, Puerto Rico. Fedorova and other beauties from around the world competed for prizes that included a year’s salary and an apartment in one of Trump’s Manhattan buildings. (The apartment was more like a dormitory for Miss Universe shared it with Miss USA and Miss Teen USA.)

At the Coliseo Roberto Clemente in San Juan, Fedorova dominated the swimsuit competition and was crowned with the diamond-studded tiara.

Trump, who was in the audience watching, allegedly rigged the contest for Fedorova, according to Seth Abramson, an author and attorney. Abramson said he spoke to a source present that night in Puerto Rico who claimed that Trump told the celebrity judges — actors, fashion designers, and NFL star Marshall Faulk —  whom to choose as winner.

Four months after she was crowned Miss Universe, Fedorova was fired. Federova had failed to show at numerous photo shoots and other high-profile functions, including a commitment to help crown Miss Teen USA. It was the first time that a winner had been forced to surrender her title.

Trump said the president of the Miss Universe organization, Paula Shugart, had asked Fedorova to resign. “When Oxana didn’t resign, Paula had no choice but to terminate her,” he said. Anonymous “insider” sources quoted by the New York Post went for Fedorova’s jugular. “An unbelievably spoiled bitch,” one called her. Another said she was overweight and pregnant, which Fedorova denied.

Over the years, Fedorova has given several reasons for her decision to give up the title of Miss Universe. She had to care for an ailing relative.  She did not want to give up her studies. (She now holds a doctoral degree.) She was upset no one had warned her before her lewd interview with radio host Howard Stern.

Asked by Russian reporters whether pressure from her gangster boyfriend Golubev led her to abandon the Miss Universe crown, Fedorova replied, “This is my personal life, and I do not want to talk about it.”

The view from Russia was that Trump had been paid off to crown Fedorova. Nikolay Kostin, the organizer of the Miss Russia contest, suggested to a reporter for the respected Russian daily Kommersant that Trump had been bribed to hand the crown to Fedorova.

“Nikolay Kostin in response to such accusations only smiles and asks who then dared to offer a bribe to the owner of the Miss Universe contest Donald Trump, who presented the crown to Oxana Fedorova, and how much he was given.

Vitali Leiba, president of the model agency Red Stars, told the newspaper, “It is very difficult to determine the addressee of a possible bribe. We can say that Trump was given a bribe, or it is possible that the U.S., in the person of Trump, offered a bribe to Russia, encouraging her representative at the contest.”

Update: An astute reader points out that Vitali Leiba was a founding shareholder of Arigon Company Ltd., a Channel Islands company established in 1990 by the Brainy Don, Semion Mogilevich whose name keeps turning up in the Trump-Russia affair. An 1996 FBI report called Arigon “the center of the Mogilevich Organization’s financial operations.”

Part III: The Ugliness in Trump’s Beauty Contests

There is no proof that Trump was bribed or that he tipped the scale for Oxana Fedorova, but there were multiple claims that the pageants were rigged.

Michael Schwandt, a choreographer who worked on Miss Universe and Miss USA, told Guanabee.com that Trump would have all the contestants line up and he would walk past like a commander reviewing his troops with an assistant taking notes. “It’s just kind of common knowledge that he picks six of the top 15 single-handedly,” Schwandt said.

The choreographer said Trump told him he exercised the “Trump rule” so because some of the most beautiful women were not chosen as finalists in the past “and he was kind of upset by that.” Schwandt disavowed his comments but here is audio  of Trump explaining the “Trump Rule” to Miss USA contestants.

A contestant in 2012 Miss USA told a judge that her contest had been rigged. Sheena Monnin wrote on her Facebook page that a fellow contestant had seen a sheet of paper listing the five finalists before the contest. (She reaffirmed the claim in her delcaration.)

…. I witnessed another contestant who said she saw the Top 5 BEFORE THE SHOW EVER STARTED proceed to call out in order who the Top 5 were before they were announced on stage. Apparently the morning on June 3rd she saw a folder lying open to a page that said ‘FINAL SHOW telecast, June 3, 2012’. After the Top 16 were called and we were standing backstage she hesitantly said to me and another contestant that she knew who the Top 5 were. I said ‘who do you think they will be? She said that she didn’t ‘think’ she ‘knew’ because she saw the list that morning. She relayed whose names were on the list. Then we agreed to wait and see if that was indeed the Top 5 called that night. ….

Trump was furious. He said Monnin had “loser’s remorse,” and said that if you “looked at her and compared her to the other people who were in the top 15, you would understand why she was not in the top 15.” His  consigliere Michael Cohen called into TMZ Live and said that Monnin had 24 hours to retract her statement or that she could “bet [her] a** that [Miss Universe] will sue . . . seeking massive damages.” Consigliere Cohen was good to his word. Trump obtained a $5 million defamation award against Monnin in an uncontested arbitration proceeding, which was upheld by a federal judge.

A 2013 investigation by Jezebel found that a pageant recruiter in Trump’s Miss USA franchise allegedly demanded a blow job in exchange for magazine work that would allow a contestant to pay the $895 contest entrance fee.

Trump had acquired the Miss Universe franchise in 1996. He reportedly paid tens of millions of dollars (the exact figure was not disclosed) to buy it from ITT Corp., beating out beat two television networks and several South American media moguls. (The deal also included Miss USA and Miss Teen USA.)  Trump ran Miss Universe as a 50-50 partnership with TV networks, first with CBS, and, after 2002, with NBC.

On the surface, it looked like a good business. It cost $20 million to bring the 2013 Miss Universe pageant to Moscow. Emin Agalarov whose family owns the arena that hosted the pageant broke down the costs for Russian Forbes. A third of that $20 million went to secure rights. Another third: organizational costs. And the final third goes to the production and broadcast costs.  (Another report said overseas rights to Miss Universe were selling for $6 million in 2003.)

Very little of that money, however, was distributed to the general partners of Miss Universe. We know this because Trump had assigned his half of his interest in Miss Universe (25 percent of the company) to his publicly-traded corporation, Trump Entertainment Resorts, Inc.  In 2002, the year Fedorova won in Puerto Rico, Trump Entertainment collected a mere $700,000 for it quarter share of the pageant. In 2003 and 2004, Trump Entertainment earned nothing from Miss Universe.

Where was all the money going?

Even if the business was a stinker, there was one attraction for Trump. It allowed him to indulge his Porky’s-style adolescent fantasy of seeing beautiful women naked when they were in no position to refuse.

“I’ll go backstage and everyone’s getting dressed, and everything else, and you know, no men are anywhere, and I’m allowed to go in because I’m the owner of the pageant and therefore I’m inspecting it,” Trump told Howard Stern in 2005.

Listen for yourself:

Asked whether he had ever slept with a contestant, Trump declined to say. “It could be a conflict of interest. … But, you know, it’s the kind of thing you worry about later, you tend to think about the conflict a little bit later on.”

Trump sold Miss Universe in 2015 to the talent agency WME | IMG for $28 million. The value of the franchise had been damaged by Trump’s description of Mexican immigrants as criminals and rapists, which led NBC and Univision to drop coverage of Miss USA.

Trump Ocean Club

My friend Ken Silverstein has a great new story out via Global Witness about Trump’s tower in Panama.

Put simply, it’s is the most revealing look we’ve had into how Russians were recruited for Trump’s towers.

Part of the business strategy at Trump Ocean Club was luring wealthy and “secretive” Russians — who didn’t want any questions asked about where their money came from.

The money quote in this story for me comes from a broker involved with the project named Alexandre Henrique Ventura Nogueira. Half of Nogueria’s customers were Russian.

“I had some customers with some, you know, questionable backgrounds.” He also said that he found out later that some customers were part of the Russian Mafia.

Another real estate broker who worked in Panama during the TOC pre-construction sales period told Global Witness that Eastern European and Russian investors at the TOC were “very secretive”, especially when setting up shell corporations, so you “don’t know their names” and “didn’t know where their money came from.”

Rich Russians – whom he called “the whales” – were prized clients because brokers could earn substantial commissions working with them. These were exactly the kind of purchasers needed by Trump and others to secure early sales, and therefore the financing through Bear Stearns to develop the project.

Ventura Nogueira was asked point blank about this: “Did the Trump Organization know there were some Russians there with strange backgrounds involved in buying? I don’t know.”

There are a lot of things to like about this story. (Story is the wrong word. It’s a 28-page report.) Not only does it reveal the corruption that built the Trump Ocean Club, but it goes a step further. Ken’s story offers solutions — a rarity in journalism — to eliminate the pervasive money laundering in real estate that built not only Trump’s tower in Panama, but his tower Manhattan’s Soho neighborhood, Azerbaijan, and other places.

The story calls the Trump Ocean Club one of Trump’s most lucrative deals. How lucrative? We don’t know.

But what was in it for Trump? There is little transparency around Trump’s financial agreement with Newland, a company that filed for bankruptcy in 2013. In fact, according to Univision News’ reporting of a New York court’s hearing on the bankruptcy, Newland refused to turn over the agreement with Trump to license his name. This prompted the judge to say to Newland’s attorney: “Go to Panama. If you want to do your deals in secret, go and do it in Panama. Don’t do it in my court.”

You should also check out Ken’s popular blog, Washington Babylon.

 

 

The Russian Gangster Who Loved Trump’s Taj Mahal

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Vyacheslav Ivankov

Remember Vyacheslav Ivankov, the Russian gangster?

He was perhaps the most feared of the Vory v Zakone, a member of the “thieves-in-law,” the highest criminal echelon in Russia.”Yaponchik” (Little Japanese), as he was known, came to New York in March 1992 to organize the Russian Mob.

Despite Ivankov’s flagrant, multinational criminal activities, during his first years in America, the FBI had a hard time even locating him.

They eventually found him in Trump Tower. A copy of Ivankov’s personal phone book, which was obtained by author Robert I. Friedman, included a working number for the Trump Organization’s Trump Tower Residence, and a Trump Organization office fax machine.

Ivankov vanished again and then turned up at the Taj Mahal in Atlantic City, the Trump-owned casino that Trump liked to call the “eighth wonder of the world.”

I’ve come across some FBI documents that add a bit more to this story:

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And this:

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The Taj Mahal had become the Russian mob’s favorite East Coast destination. As with other high rollers, scores of Russian hoodlums received “comps” for up to $100,000 a visit for free food, rooms, champagne, cartons of cigarettes, entertainment, and transportation in stretch limos and helicopters.

The Taj Mahal was just treating Ivankov as a good customer, right?

Who is Tevfik Arif, Part II

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In June of 2005, Tevfik Arif celebrated his birthday at the grand opening of  Turkey’s most luxurious hotel, the “seven-star” Rixos Premium Belek.

Guests came from all over the world: from America, from Latvia, from St. Petersburg, Israel, the Cote d’Azur, Ukraine and Samara.  Attendees included retired NHL star Pavel Bure, Moscow restaurateurs, Russian businessmen, and billionaires who sailed in by yacht or flew in on private jets.

Donald Trump, who had partnered with Arif’s New York company Bayrock to build a tower in Ft. Lauderdale, Florida, could not make it, but he sent a message of congratulations: “Tevfik is my friend! Let’s drink to Tevfik!”

Recep Erdogan, the prime minister of Turkey and future president, stopped by to join the well-wishers, according to a gossipy report on the party in the Kremlin-friendly Russian newspaper Izvestia.

Turkey has been good to Arif.  It became Arif’s home after he left Kazakhstan in 1994. Arif obtained a Turkish passport that same year and  went into business with Fettah Tamince, the founder of the Rixos hotel chain. The two men partnered in 1999 to build a hotel Antalya. Then Arif expanded his business in New York.

Another guest at the Rixos Premium Belek was Tamir Sapir, the New York real estate tycoon and Soviet emigre who partnered with Trump and Arif to build Trump SoHo. Sapir arrived on his 160-foot yacht Mystere.

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Alexander Mashkevitch

Also arriving for the party was Israeli-Kazakh billionaire Alexander Mashkevtich. , one of Bayrock’s strategic partners. Mashkevitch’s  friendship with Arif will soon embroil him in a deeply embarrassing scandal — but I’m getting ahead of myself.

Mashkevitch and Arif had crossed paths in the post-Soviet metals industry in Kazakhstan. (See Part I) Mashkevitch, together with his partners Patokh Chodiev and Alijan Ibragimov, had joined up with Michael Cherney and Trans World Group to enter the metals business in post-Soviet Kazakhstan.

Back to Arif’s party. What a celebration! What a moment for a simple Soviet hotel bureaucrat!

Two years later, Arif will stand next to Donald Trump at another lavish party in lower Manhattan for the  launch of Trump SoHo, the tower the two men are building together.

And that was the top of Arif’s roller coaster ride.

Shortly after the Trump SoHo launch one of his employees, Felix Sater, was exposed in The New York Times as a convicted felon who had swindled investors out of $40 million with the help of the Russian and American mafia. Trump SoHo opened on 2010 and began a multi-year slide to foreclosure.

And then, on the night of September 28th, 2010, Turkish police roped down from helicopters onto a yacht and bust up a prostitution ring with underage girls that prosecutors alleged was run and financed by Arif.   Some 20 people are detained. Among them, according to the Israeli press, is the Kazakh billionaire Alexander Mashkevitch, who paid for the yacht.

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Some of the “models” rounded up on the Savarona yacht (as photographed by Turkish media).

Arif’s friends, including Donald Trump, can’t get away from him fast enough.  “I really don’t know him well, Mr. Arif,” Trump said in a 2011 deposition. “I’ve met him a couple of times.”

According to a copy of the bill of indictment, obtained by theblacksea.eu, the charges laid against Arif are: “Trade in human beings, involvement in, inducement or aiding and abetting to prostitution, traffic in juveniles under 18, creation of criminal organization with the purpose of commission of crime.”

Before I get a nasty letter from Arif’s lawyer, I should say that Arif was acquitted of all charges in 2011 and no underage girls were found on the yacht. It didn’t help the prosecution’s case that the ring instructed the girls not to testify. “Keep the girls as silent as the grave,” read one text.

But the indictment lists the details that Turkish police uncovered while listening in on the prostitution ring’s phone conversations for months. They recorded members of the group haggling over prices for underage girls and this exchange of text messages between a member of the prostitution ring and a woman named Olga.

Olga: “Do you want all models for sex? I should know it because many don’t agree for sex”,

The response: “Olga, client wants sex”

The indictment describes this harrowing discussion between Arif’s major domo, Gyundyuz Akdeniz, and one of his underlings:

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Arif was usually more circumspect, possibly aware that people were listening. In this conversation in March 2010, Arif and Akdeniz discuss the arrival of five girls, (including two 16-year-olds) to meet “guests” (including Mashkevitch) at the Rixos Premium Belek.

Tevfik Arif: What is the matter, what is happening? Tell me.

Akdeniz: Do you mean the guests?

Arif: What is happening at all? I know nothing.

Akdeniz: The guests are arriving tomorrow evening. Mr. Mashkevitch will arrive.

Tevfik: When will the guests arrive?

Akdeniz: The plane will arrive in a little while, there must be four.

Arif: Umph, umph

Akdeniz: Oh, sorry, five must arrive now.

Arif: Who are they from?

Akdeniz: Two are from Sasha [provider of girls]

Arif: Umph, umph

Akdeniz: Three are from the new agency.

Arif: And those two from Sasha are the former ones, aren’t they?

Akdeniz: No, the former ones will arrive at 1 a.m.

Arif: I see, he sent the new ones.

Akdeniz: Yes, tomorrow two will arrive from Sasha.

Arif: Okey.

To be continued….

Who is Tevfik Arif? Part I

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Tefvik Arif was the chairman of Bayrock Group, the murky company that partnered with Donald Trump to build Trump SoHo in lower Manhattan.

Figuring out who he is was not an easy task.

Tevfik Arif (Тевфик Ариф) was born Toifik Arifov (Тофик Арифов) on May 15, 1953 in the Soviet Socialist Republic of Kazakhstan. He was one of four brothers born to a Turkish family in the Jambyl Region in northern Kazakhstan.

That’s about the only thing we know about his early life with any certainty.

What he did for the next 38 years is unclear. The oft-repeated facts of his background come from a short profile on Arif published in Real Estate Weekly in 2007, just as Trump was preparing to kick off sales of Trump SoHo.

Real Estate Weekly reported that Arif had received a degree from Moscow Institute of Trade and Economics and then worked in the Soviet Ministry of Commerce and Trade in the former Soviet Union for 17 years, where he served as the chief economist and deputy director of the Ministry’s Department of Hotel Management.

Many journalists have repeated this story. It may be true, but no one seems to have bothered to check.  It’s worth noting that this is the only reference to a Soviet Ministry of Commerce and Trade that I found on the Internet. There is a Russian ministry that has this name, but I could find nothing from the Soviet era. (Arif did not speak English very well, so it’s possible this is a mistranslation.)

There was, however, something called the USSR Chamber of Commerce and Industry, which was run by the KGB and spied on the West. A third of the chamber’s staff were KGB, according to a US State Department report that cited CIA information. And the USS Chamber of Commerce and Industry did have a hotel division, V/0 Sovintsentr, which ran a trade center and various Moscow hotels.

In the Russian press, Arif is affiliated with the Soviet Ministry of Foreign Trade (which did exist). Or maybe he was just a Soviet hotel bureaucrat, as he claims. Whatever Arif did for the first 40 odd years of his life, he hasn’t been very open about it.

Trans World Group

After the collapse of the Soviet Union in 1991, Arif left the government and made a career leap. A huge leap.

In a court proceeding in Turkey, the former Soviet hotel bureaucrat testified that he “worked in energy sector, chemical sector and metallurgy sector. I was producing coal in Russia and copper in Kazakhstan. Due to lack of coal, it was not possible to make production. I started to organize them.” He started a private company called the Speciality Chemicals Trading Co., trading in “chrome, rare metals and raw materials.”

And then he went to work for Trans World Group. TWG was a British company headed by two brothers, David and Simon Reuben. After the Soviet Union collapsed, the Reubens moved aggressively into metals production, buying up smelters and refineries.

As foreigners, however, the Reubens needed locals to build their business. Enter Arif. He became an “agent on the ground” — a fixer, in other words — for TWG in Kazakhstan, according to internal company documents reviewed by theblacksea.eu, an online investigative Website.

Arif apparently did his job well. Very well. In a few years, TWG’s holdings of steel, iron, chrome and alumina refineries in Kazakhstan generated one fifth of the entire country’s gross revenues.

Maybe Arif was just a Soviet hotel bureaucrat who seized a once-in-a-lifetime opportunity to get into the post-Soviet metals sector. But his hotel background would have been of little use to TWG. What TWG needed was someone with deep connections in the country’s political and business circles. The kind of people who had those connections in the Russia of the 1990s were either ex-KGB, or mobsters.

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Michael Cherney

Consider another pair of fixers the Reubens brought into TWG in 1992. They were the Cherney brothers, Lev and Michael, and they formed a 50-50 partnership with TWG. It was a successful partnership. With the Cherneys help, TWG grew by leaps and bounds. The problem for the Reubens was that Michael Cherney’s name soon became publicly linked to Russian organized crime groups. The Reubens quickly bought out Cherney’s share of TWG for $410 million.

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Vyacheslav Ivankov

Swiss authorities in 1996 accused Michael Cherney of “drug trafficking, money laundering, fraud and sponsoring murder” on behalf of  a Russian organized crime group run by “V Ivankov.” This was the infamous Russian mob boss nicknamed “Yaponchik” who had settled in New York, where the FBI found him hiding out in Trump Tower and Trump’s New Jersey casino.

Michael Cherney has repeatedly denied these allegations, which he blames on his archenemy and former partner Oleg Deripaska, one of the wealthiest men in Russia. In 2008, the federal Swiss court exonerated him of the charges, but two years later, Spain issued an international arrest warrant for Michael Cherney’s arrest on money laundering charges.

Did Arif have links to the Russian Mafia? Felix Sater, who worked under Arif at Bayrock, seems to think so.

The Wall Street Journal reported that Sater and his attorney threatened to expose Arif’s past unless he paid Sater’s attorney fees. Sater warned of a possible lawsuit that would include details of Arif’s wrongdoing “in the post-Soviet metals business in Kazakhstan.”

In a personal memo, Sater was even more blunt: “The headlines will be, ‘The Kazakh Gangster and President Trump.'”

A High-Net Worth Individual

“The head of the family is my uncle Roustam Arif [sic],” Tevfik’s son Arif writes in 2013 in correspondence obtained by theblacksea.eu. “In our culture, the patriarch is usually the oldest member of the family. Roustam is my father’s oldest brother. Even though my father is a successful entrepreneur in his own right (hotels, construction and real estate), his younger brother Refik Arif is the principal figure in the main family business (commodities).”

In the mid-90s, Refik reportedly acquired control of the Aktyubinsk Chromium Chemicals Plant (ACCP) in Aktobe, in north-western Kazakhstan, near the border with Russia. Refik also established a highly profitable chemicals trading business.  And this is an important piece of the story, because the money for Bayrock, at least part of it, came through Kazakhstan.

Consider that for a moment. The Arifs managed to pool enough capital and influence to buy what turned out to be a highly lucrative chemical plant. How was this possible? What really happened in Kazakhstan in 1990s?

Around 1999, Refik Arif’s chemical trading business was generating so much cash that the family retained Hamels, a UK tax consultancy, to help structure their investments. On its website, Hamels describes its typical clients as “high net worth individuals seeking to minimize their respective tax burdens on current income or investment streams…”

In a 2011 memo, Hamels partner Zig Wilamowski wrote, “Mr. Refik Arif is one of four brothers who have over many years built up a substantial and profitable international business from the sale of chrome-based chemicals.” Williamowski said he was in a position to verify the “good origin” of the Arif family’s wealth. You can read the document here.

With the help of Hamels, the Arifs set up a network of shell companies, many of which were established in the Caribbean tax haven of the British Virgin Islands. These companies included Bennington Trade Assets Ltd., which owns property in the center of London and Merlin Trading Assets Ltd., which owns an executive jet. There are too many companies to name them all. Many are found in the Panama Papers leak of offshore companies founded by the Panamanian law firm Mossack Fonseca.

The real moneymaker for the family was Castello Global Ltd., which handled the profits from the chrome trading business. Here is a breakdown of Castello Global’s profits:

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So much money was pouring out of Kazakhstan that Tevfik Arif decided it was time to try something big. Really big.

He moved to New York and set out to do a real estate deal with the biggest and the best. So he set up offices of his new company Bayrock Group in Trump Tower, one floor below Trump’s own offices.

To be continued…

Facebook, Jared Kushner and Russia

forbes-cover-12202016-final_1000x1311Call me skeptical.

I don’t believe that Facebook won the election for Donald Trump. That’s the claim put forth in this hagiographic profile of Jared Kushner in Forbes and in many other media outlets.

The traditional campaign is dead, another victim of the unfiltered democracy of the Web–and Kushner, more than anyone not named Donald Trump, killed it.

We see these stories every time a new president is elected. A while back it was Obama’s “data crunchers.” This time, the key to Trump’s victory, Kushner would like us to believe, were computer algorithms that targeted potential Trump supporters with social media to stunning effect.

Kushner takes credit for hiring Cambridge Analytica, a company owned by Robert Mercer who also happens to be a Trump supporter, Breitbart investor, and a reclusive hedge fund billionaire.

The secret weapon was Cambridge Analytica’s computer algorithms that figure out who you are based and what motivates you based on all the times you click Like on Facebook, as Cambridge Analytica’s Jack Hansom explains in this video:

These algorithms turned up some surprising findings. Liking the New Orleans Saints mean you’re less likely to be “conscientious,” i.e. do the right thing. And liking the Energizer Bunny means you’re more likely to be neurotic.

So what? Well, one or two of these things don’t tell you much, but the average person has hundreds of Facebook Likes which allows Hansom and his colleagues to build a surprisingly accurate picture of your personality. You can test this on yourself here.

Facebook allows you to drill down to the kind of person in the kind of place you want. (You can even reach “Jew haters” in Idaho if you wish.) Here’s Cambridge Analytica’s CEO Alexander Nix showing how his company’s model could be used to drill down to find every “persuadable” gun rights advocate in Iowa:

It’s very impressive (and very creepy), and it makes for a good story, one that Silicon Valley loves in an everybody-is-stupid-except-for-me way.

But the problem with the claim that Kushner and his machine learning wizardry won the election for Trump is that everybody was doing it. Hillary Clinton had a team of mathematicians and analysts crunching data. Ted Cruz had hired Cambridge Analytica as well, but then he ran into the Trump train.

I may be wrong, but I’d wager the $1.8 billion worth of free airtime that TV networks gave Trump every time he opened his trap probably had a lot more to do with him winning the election than Cambridge Analytica.

Trump knows how to get on TV: He is a promotional genius. What will he say next? He’s a modern day PT Barnum and Jeff Zucker‘s CNN couldn’t get enough.

Setting that aside, the Facebook/Jared Kushner story is still pretty important. And what’s important about it is that Special Counsel Robert Mueller thinks it’s pretty important. Facebook may not have won Trump the election, but it may seriously damage his presidency.

CNN reported Sunday that Mueller, who’s investigating Trump’s links to Russia, had served Facebook with a search warrant.  Mueller was interested in the $100,000 worth of ads purchased by bogus accounts that Facebook on Sept. 6 acknowledged had  “likely operated out of Russia.”

Mueller’s search warrant for Facebook is a big deal, a former federal prosecutor explains:

Mueller would have had to show the judge that there was reason to believe that one or more foreign individuals committed a crime and the evidence of the crime could be found on Facebook’s servers.

The crime is that foreign nationals are prohibited from contributing money “or other thing of value” (like $100,000 worth of Facebook ads) in connection with an election. It’s also against the law to solicit, accept, or receive such a contribution.  (Here is the statute.) And if someone on the Trump campaign knew about the Russian Facebook ads and did nothing to stop it, that is also a crime — aiding and abetting.

Did someone on the Trump campaign know about the Russian Facebook ads. We don’t know yet, but the answer lies in targeting. To put it in Watergate terms: Who targeted whom and when?

Were the Russian Facebook ads and the Trump campaign targeting the same people? And if so, how did a bunch of Russian trolls in St. Petersburg or Vladivostok or where ever know to target, say, black women in Milwaukee or rural voters in Michigan’s Upper Peninsula, for example?

I tried to ask Alex Stamos, Facebook’s chief security officer, but didn’t get a reply.

This question intrigues Sen. Mark Warner, the leading Democrat on the Senate intelligence committee, as he said on the Pod Save America podcast:

Warner: When you see some of the explanation and some of the fact that it appears that, for example, women and African Americans were targeted in places like Wisconsin and Michigan, where the Democrats were too brain dead to realize those states were even in play … It was interesting that those states seem to be targeted where the bots — where they could could create a lot of these fake Twitter and Facebook accounts, could in fact overwhelm the targeted search engines that would end up saying on your news feed, you suddenly got stuff that “Hillary Clinton’s sick” or “Hillary Clinton’s stealing money from the State Department.”

I get the fact that the Russian intel services could figure out how to manipulate and use the bots. Whether they could know how to target states and levels of voters that the Democrats weren’t even aware really raises some questions. I think that’s a worthwhile area of inquiry.

How did they know to go to that level of detail in those kinds of jurisdictions?

Vietor : I wonder if they just asked Jared [Kushner] like Trump does with all of his questions. We’ll find out.

Warner : We’ll find out. More to come on that.

Sen. Warner thinks it’s a worthwhile line of inquiry, and it’s a good bet Mueller does too. The information Facebook handed over to Mueller included the targeting criteria the bogus Russian accounts used, The Wall Street Journal reported.

An unnamed Trump campaign staffer told CNN that the key to the whole inquiry may be found on Facebook’s servers.

Only Facebook can answer three critical questions: were the same databases used by the Trump campaign and Russian operatives to coordinate targeting of voters; was money used to promote pro-Trump posts, and, if so, how much was spent and by whom; and will Facebook reveal if bots were successfully used to push fake news posts?

Hopefully, Robert Mueller knows the answers.

Exclusive: Felix Sater’s 2010 White House Visit

Felix Sater

Felix Sater, a twice-convicted felon and former senior business advisor to Donald Trump, was granted access to visit the Obama White House in 2010 as part of a delegation of Hasidic Jews.

Sater’s name appears on the list of 100 White House visitors associated with American Friends of Lubavitch, which represents the international Chabad-Lubavitch movement in Washington.

The Obama administration released logs of White House visitors, a practice that the Trump administration has discontinued.

Sater has come under scrutiny for his relationship to Donald Trump. Sater worked for Bayrock, a development firm with offices in Trump Tower that partnered to build Trump SoHo. For six months in 2010, Sater went to work for Trump directly, carrying a Trump Organization business card that described him as a “senior advisor to Donald Trump.”

According to the White House visitor log, Sater’s 100-member delegation visited the Old Executive Office Building in the White House complex on June 17th. The group gathered in the South Court Auditorium where Sater and the rest of the delegation were addressed by Vice President Joe Biden.

Sater’s attorney, Robert S. Wolf, did not return a phone call seeking comment.

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The decision by the Secret Service to grant Sater access to the White House grounds is noteworthy. Every visitor to the White House Complex undergoes a comprehensive security check, and Sater’s criminal past would surely have raised red flags.

In 1993, Sater was convicted of felony assault and sentenced to prison for stabbing a commodities broker in the face with the broken stem of a margarita glass.  In 1998, Sater pleaded guilty to racketeering for his role in a corrupt stock brokerage that ran “pump-and-dump” schemes with help from the Mafia.

Other ex-convicts have reported that they were denied access to the Obama White House. Even those who received a formal invitation were handed pink badges that read “Needs Escort” and were not allowed to move freely around the White House grounds. (See Glenn E. Martin’s open letter to President Obama.)

The White House visit may have been another favor the federal government did for Sater. Over the previous decade, he had become a prized government informant. Sater helped the FBI thwart attempts by the Mafia to muscle in on Wall Street and also aided in the hunt for terrorists overseas. As a result prosecutors took the highly unusual step of requesting that Sater’s entire federal racketeering case was sealed.

Former U.S. Attorney General Loretta Lynch, whose oversaw Sater’s case in her previous role as the U.S. Attorney for the Eastern District of New York, told Congress that he provided valuable and sensitive information.  Sater’s cooperation led to the conviction of 20 individuals, including members of the Mafia. In addition, Lynch said, Sater provided information “crucial to the national security.”

The White House visitor log shows Sater’s appointment was made June 15th, two days before his visit.

The White House visit was the highlight of the annual “Living Legacy” conference organized by American Friends of Lubavitch. The conference is held to mark the anniversary of the passing of Rabbi Menachem M. Schneerson, the former leader of the Chabad-Lubavitch movement and one of the most influential Jewish leaders of the 20th century.

Sater belongs to the Port Washington Chabad house and told Politico that he is on the board of Chabad organizations in the U.S. and abroad, though none in Russia.  Rabbi Shalom Palatiel, the director of the Port Washington Chabad house, also visited the White House along with Sater. Palatiel did not immediately respond to an email message left seeking comment.

More than 190 names were submitted to the White House, but the logs show that only 100 entered the grounds.

One member of the Chabad-Lubavitch delegation who was granted access to the White House but did not attend was Berel Lazar, one of Russia’s chief rabbis, who is known as “Putin’s rabbi.”  In 2016, Rabbi Lazar met with Jason Greenblatt, a former Trump Organization lawyer who is now the president’s lead envoy in the Middle East.

According to a report in the Jewish Telegraphic Agency, Biden spent 40 minutes with Sater and the rest of the Lubavitch delegation.

The vice president reviewed Chabad teachings he had acquired over the years, including the necessity of combining “wisdom, knowledge and understanding,” and related them to the administration’s handling of the Middle East.

Biden suggested that the threat posed by Iran necessitated intensive peacemaking and it was important for the Jewish community to understand that context.

“As you’ve always taught me, the rebbe said, what we do for one day isn’t enough for the next day,” Biden said.