Category: Donald Trump

Who is Fima Shusterman?

“Due to ongoing threats against his family,” Michael Cohen announced yesterday that he was postponing his highly-anticipated congressional testimony.

The threats are coming from the White House where President Trump won’t stop talking about Michael Cohen’s father-in-law, a guy by the name of Fima Shusterman.

On a phone call January 12th with Fox News host Jeanine Pirro, the president of the United States launched into an extraordinary attack on Cohen’s father-in-law, a private citizen:

TRUMP: He should give information maybe on his father-in-law. Because that’s the one that people want to look. Because where does that money? That’s the money in the family. And I guess he didn’t want to talk about his father-in-law. Trying to get his sentence reduced. So it’s pretty sad. He is weak. And is very sad to watch a thing like that. I couldn’t care less.

PIRRO: What is his father-in-law’s name? 

TRUMP: I don’t know but you’ll find out and you’ll look into it. Because nobody knows what’s going on other there. 

The implication here is that Shusterman, a Ukrainian emigre, is some sort of Russian organized crime figure, although in typical Trump fashion he provides no evidence.

As readers of my book know, Trump knows that Shusterman is “the money” in the Cohen family because his business benefited from it.

Even with the spotlight the president has put on him, we still know very little about Michael Cohen’s father-in-law, Fima Shusterman. The only bit of insight comes from his 1993 testimony in federal court. So here goes.

Shusterman had pleaded guilty to the charge of conspiracy to defraud the United States. In exchange for leniency, he agreed to testify at the trial of Harold Wapnick, his accountant. Shusterman was sentenced to probation and fined $5,000.

On May 13, 1993, Shusterman took the witness stand in the court of Judge Carol Amon. Although he spoke some English, he had a translator present at his own request “because I do not understand English 100 percent.”

Q. Good morning, Mr. Shusterman.
A. Good morning.
Q. How old are you, sir?
A. 48.
Q. Are you married, Mr. Shusterman?
A. Yes, I am.
Q. And do you have any children, sir?
A. Yes, I have a daughter.
Q. Where were you born, Mr. Shusterman?
A. In the Soviet Union.
Q. When did you come to the United States, sir?
A. In May '75.
Q. And are you a citizen, Mr. Shusterman?
A. Yes, I am.
Q. Are you employed?
A. Yes.
Q. Where are you employed?
A. I'm employed as a manager with Future Knits.
Q. And are you a co-owner of of Future Knits, sir?
A. Yes, I am. 
Q. Who are your partners?
A. My partners are Shalva Botier and Edward Zubok.
Q. What business is Future Knits in?
A. This is a knitting factory.
Q. When was Future Knits established, sir?
A. I'm not sure. I think it was established in '81.
Q. Future Knits, sir, when was Future Knits established?
A. In 1988.
Q. And prior to Future Knits, sir, how were you employed?
A. I was employed with S&Z Fashions and LVA Corp.
Q. Were you a co-owner of those corporations?
A. Yes, I was. 
Q. And were your partners the same individuals as your partners
in Future Knits?
A. Yes, correct. 
Q. Were S&Z Fashions and LVA also in the knitting business?
A. Yes. 
Q. When did you join S&Z Fashions and LVA?
A. In July of '84. 
Q. Between years 1985 to 1988, were you involved with any other corporations
other than S&Z and LVA and Future Knits?
A. No. 
Q. Did you have an ownership or office position with any other corporation, sir?
A. Yes. I was secretary with Martha Cab Corporation, and Bar Trans Corporation.
Q. And, sir, is Barn Transportation with an "N" end, B-A-R-N?
A. Barn, B-A-R-N.
Q. Who is shareholder of Martha and Barn, sir?
A. My wife was.
Q. Are you an officer of those corporations?
A. Yes, I am.

Shusterman was also secretary of N.Y. Funky Taxi Corp. and New York Fulton Taxi Corp.

Today, the chief executive of N.Y. Funky Taxi, Martha Cab and Barn Trans is Michael Cohen, who married Mr. Shusterman’s daughter, Laura, a year following her father’s guilty plea and court appearance. Cohen owns and operates a fleet of cabs in New York and Chicago.

Note to my readers: This work costs me both time and money (in the case of this transcript quite a bit of money). I do this work for free in the hope that people will find it valuable. If you agree, the best way you can support this work is by purchasing my book, Trump/Russia, which has much more information on the president’s decades-long connection to Russian criminal money.

Click here to purchase Trump/Russia.

Q. Mr. Shusterman, have you been convicted of a crime?
A. Yes. 
Q. What crime were you convicted of, sir?
A. Conspiracy. 
Q. When were you convicted?
A. In March of this year, '93.
Q. How were you convicted, sir?
A. I pleaded guilty. 
Q. And, Mr. Shusterman, in connection with your guilty plea,
did you enter into an agreement with the government?
A. Yes.
Q. Would you tell the ladies and gentlemen of the jury, Mr. Shusterman,
what your understanding is of that agreement?
A. My understanding is that I obligated myself to fully, 100 percent, 
cooperate with the government. 
Q. And did the government agree to do anything in return, sir?
A. Yes, they did. 
Q. What did they agree to do, sir?
A. They would advise the judge about my full cooperation and 
about my help rendered in their investigations. 
Q. Mr. Shusterman, have you been sentenced yet?
A. No, not yet.
Q. Do you know what sentence you are facing, sir?
A. Yes.
Q. What is that, sir?
A. Five years in prison, and up to $250,000 in fines. 
Q. Sir, have any promises been made to you regarding your sentence?
A. No. 
Q. Do you know who will be sentencing you, Mr. Shusterman?
A. Yes, I do. 
Q. And who is that, sir?
A. Judge Amon. 
Q. Mr. Shusterman, you've testified that you pled guilty to 
the crime of conspiracy. Could you tell the ladies and gentlemen 
of the jury what is it that you did?
A. I concealed income from the state, and I cashed checks in the amounts 
that exceeded $10,000.
Q. Mr. Shusterman, what did you need this cash for, sir?
A. To operate our business. 

Shusterman goes on to say that from 1984 to 1988 he would regularly bring checks from his customers made out to S&Z Fashions, LVA, and Future Knits and leave them in Wapnick’s office.

A few days later, Shusterman would return and collect cash, always in amounts more than $10,000, in a paper bag or envelope. Wapnick would keep 3 percent for his services.

The total amount cashed with the Wapnicks was “somewhere between five and five and a half million dollars,” Shusterman testified.

Shusterman is then cross-examined by Harold Wapnick, who does a terrible job of representing himself with convoluted lines of questions.

However, he does stumble into a couple of things that are interesting in light of Trump’s claims that Shusterman is “the money in the family.”

Wapnick: Sir, you own a -- you own 40 percent of a 
40-machine factory, sir?
A. No. 
Q. What percentage do you own of a 40-machine factory, sir?
A. 15 percent as of today. 
Q. 15 percent. Would you say that the 15 percent value is in excess 
of a million dollars, sir?
A. If you pay me half a million I'll sell it to you gladly.
Q. Thank you. How about the -- do you own five -- 9 taxicab medallions? 
And are they worth about two million dollars?
The Court: Wait a minute. I don't think he gave an answer. 
Q. Are they worth about two million dollars, sir?
A. Did you say two million?
Q. Let's say $170,000 apiece, and we multiply it by nine, so, okay -- 
what's a half a million dollars among friends. Is it worth ---
The court: I take it you're withdrawing your last question. 
Wapnick: No I'm asking him is it worth a million and a half dollars, sir. 
Shusterman: Only on paper. 

A decade later, beginning in 2003, Shusterman made the first of three apartment purchases at Trump World Tower across from the United Nations building in Manhattan. By 2005, Shusterman had spent $7.6 million on Trump’s properties.

So where did this money come from and what did Trump know about it?

Trump/Russia Review in TLS

Andrew Sullivan has written a nice review of Trump/Russia: A Definitive History in the Times Literary Supplement of London, “the world’s leading journal for literature and ideas.”

Unless, that is, you see all of this as some grand plan hatched in the halls of the Kremlin to unsettle the post-Cold War order, break up the EU and NATO, and legitimize the authoritarian pseudo-democracy in Russia. Seth Hettena, an investigative journalist with the Associated Press, lays out the entire labyrinth of ties Trump has long had with the Russian mafia in New York, and with the Russian government itself. His essential insight is that there is no clear distinction between the two. Putin’s Russia is a mafia state; its oligarchs deep in financial crime and close to mobsters. And Trump was ensnared early on, as his Trump Tower and Taj Mahal casino in New Jersey attracted all manner of Russian hoodlums, tycoons and hit men. But it deepened as Trump became bankrupt, saved only by bankers who were acting to protect themselves, and sought new financing when America’s banks refused to loan to this shiftiest of failed businessmen. His son, Eric, blurted out the truth to a friend: “We have all the funding we need out of Russia. We go there all the time”.

Hettena writes that Trump Tower was one of only two buildings in Manhattan to allow buyers to conceal their true identities. Money-launderers flocked to it. Trump’s Taj Mahal casino in Atlantic City was found to have “willfully violated” anti-money laundering rules of the Bank Secrecy Act, was subject to four separate investigations by the Internal Revenue Service for “repeated and significant” deviations from money-laundering laws, and was forced to pay what was then the largest ever money-laundering fine filed against a casino. The Trump World Tower, by the UN head­quarters in New York, had a large number of investors connected to Russia, Ukraine and Kazakhstan. Trump’s consigliere, Michael Cohen, was found by a Congressional Com­mit­tee to have “had a lot of connections to the former Soviet Union and . . . seemed to have associations with Russian organized crime figures in New York and Florida”. His campaign manager for a while – Paul Manafort – made a fortune channelling Kremlin propaganda in Ukraine. Trump’s new towers in Southern Florida were also humming with Russian buyers. Over a third of all the apartments in the seven Trump towers were connected either directly to Russian passports or to companies designed to conceal the owners. Hettena finds a prosecutor who spelled it out: “his towers were built specifically for the Russian middle class criminal”.

Trump’s unique refusal as a modern candidate to release his tax returns suddenly doesn’t seem so strange. And it is no surprise whatsoever that when the Trump campaign was told that the Kremlin had hacked Hillary Clinton’s emails and offered them to the campaign – as “part of Russia and its government’s support for Mr Trump” – they took the bait instantly. “If it’s what you say, I love it”, Donald Trump Jr emailed back to the Russian intermediary, “especially later in the summer”, clear proof of a conspiracy with a foreign power to corrupt the US elections. This led to the infamous Trump Tower meeting between Trump campaign officials and an emissary from Putin. In the autumn, the Clinton emails were duly unleashed, via WikiLeaks, and constantly touted by Trump himself. At one point, he even went on national television and directly asked the Kremlin to release more of them. Trump, in other words, was openly asking a hostile foreign government to help take down his opponent. But by then, his hourly outrages had lost the power to shock. As strong evidence emerged of a Russian campaign to influence the election in the summer and autumn of 2016, Obama proposed that a bipartisan group of senators release the information to warn the public. The Senate Majority leader, the Republican Mitch McConnell, refused. Much of the Republican Party would rather have the election rigged by Russians than see a Democrat win.

The quid pro quo appears to have been a promise to undo sanctions when Trump came to power – something his first National Security Counsel head, Mike Flynn, immediately started work on after the election victory….

Watergate’s John Dean on the Chennault Affair

My Rolling Stone Q&A with Watergate figure John Dean got a lot of people talking. Dean told me that Nixon might have survived if he had Fox News. He also said that he doesn’t expect Trump to resign and a whole lot more.

One thing that we didn’t have room for was a question I asked John Dean about the Chennault Affair, another Nixon scandal that involved collusion with a foreign power to win an election and allegations of treason.

Continue reading

The Problem with (Helsinki) Summit Notes

So my Rolling Stone piece is up about the dangers of a one-on-one meeting between President Trump and Russian President Vladimir Putin in Helsinki, Finland.

There’s an interesting bit of history I couldn’t fit into the story. It involves another Russian leader telling another U.S. president at a summit in Helsinki that he would help re-elect him.

And the fact that we know about this conversation is one more reason why Putin doesn’t want any notetakers around when he meets with Trump alone on July 16th.  Continue reading