Category: Donald Trump

Five surprises in Glenn Simpson’s testimony

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Glenn Simpson

Well, it took a couple of days, but I finally managed to read through Fusion GPS co-founder Glenn Simpson’s 312-page testimony to the Senate Judiciary Committee.

Thank you to Sen. Dianne Feinstein for releasing this information last week over the objections of Republicans. Sen. Feinstein said the American public deserve to make up their own minds. Couldn’t agree more. You can find the testimony here.

So I thought I would pick things that jumped out at me from Simpson’s testimony:

1. An internal source in the Trump Organization was providing the FBI with information about Russian collusion.

Simpson learned this from Christopher Steele, the former British spy he had hired to investigate Trump’s links to Russia. Steele’s findings, including the scandalous scene in the Moscow Ritz, were so alarming that he took his findings to the FBI. The FBI told Steele, yes, we’ve heard something similar from our internal Trump source. Simpson refused to answer questions about who this source might have been, but this source was not one of Steele’s source. Huge bombshell. (p. 175)

2. Someone has been killed as a result of Steele’s reports.

Simpson’s lawyer, Josh Levy, drops this on p. 279. “Somebody’s already been killed as a result of the publication of this dossier and no harm should come to anybody related to this honest work,” he says. Curiously, nobody challenges this, which makes it seem an accepted fact. Maybe they were all just tired after 9 hours of questioning. The person is not named, but presumably it’s someone in Russia. Otherwise, it would be a bigger deal, right?

3. Felix Sater is connected to Russian organized crime kingpin Semion Mogilevich  This connection has been alleged in a Supreme Court petition filed in 2012 by lawyers Fred Oberlander and Richard Lerner to unseal Sater’s criminal case. The Website Deep Capture made the same claim, but the sourcing wasn’t very strong, as did two New York attorneys in court filings. (Update: Sources I’ve spoken to led me to doubt this claim.)  (p.69)

4. Chris Steele broke off talks with the FBI in part because of a story in The New York Times. This was the infamous Halloween 2016 story that reported that an FBI investigation of Trump found no ties to Russia. The Times story and FBI Director James Comey’s bizarre decision to reopen the investigation of Hillary Clinton’s email made Steele concerned that the FBI was being manipulated for political ends by Trump’s people. (p. 178).

5. Bill Browder’s comical efforts to hide from Fusion GPS and Glenn Simpson.
This isn’t a single event. It’s more like a pattern. Maybe Simpson is a liar as Browder says or maybe Browder doesn’t like anybody nosing around in his business practices in Russia. Read it for yourself and see what you think pp 40-48.

Fusion GPS Speaks

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Glenn Simpson 

Simpson and Fritsch penned an opinion piece in today’s New York Times. The purpose of the opinion piece was to let the public know what they spent 21 hours explaining to three congressional committees.

Most of the piece rebuts the many rumors surrounding Fusion GPS, including one big one — former British spy Christopher Steele’s sources were not paid for the information that he compiled about Trump, including the scandalous watersports-in-Moscow story.  This is big because paying sources undermines their credibility.

Simpson and Fritsch note their “dismay” that Buzzfeed published the Steele dossier in January 2017. This bothers me because Fusion GPS was shopping Steele and this dossier to every major news outlet who would listen. I guess this is the Washington game, but washing your hands in dirty water is not how you stay clean.

For Trump-Russia investigators, they did offer up a few tidbits:

  • Simpson and Fritsch told investigators to look into the bank records of Deutsche Bank and others that were funding Trump’s businesses.
  • In Manhattan,  Sunny Isles Beach, Florida; Toronto; and Panama, they found “widespread evidence” that Trump had worked with “dubious Russians in arrangements that often raised questions about money laundering.”

There is a lot of information packed in to those few sentences.

Simpson and Fritsch also note, as we did recently here, that Trump’s allies in Congress have dug through their bank records to tarnish the firm and punish them for bringing light into the darkness of Trump’s Russia dealings.

One person who lit up after reading this piece was Bill Browder, Putin’s self-styled enemy No. 1 who was once his biggest fan. Here he is, borrowing from the Devin Nunes “attack the client” strategy, as he vented his anger on Twitter today:

The Steele dossier, unfortunately, is a distraction. It is raw intelligence, not evidence, and was never intended to be used in a court of law. In the public’s mind, however, it has been impossibly conflated with the legitimate investigation by Special Counsel Robert Mueller.

It does Browder no credit that he stokes this confusion and allows his hatred of Fusion GPS to become grist for conservative media outlets that seek to undermine the Mueller inquiry. (“The dossier is the foundation on which the case for Russiagate, including Mueller’s investigation, is built.”)

As Browder surely knows, since he’s paid for many an investigation himself, who hired Fusion GPS doesn’t really matter. The bottom line is that if Fusion GPS didn’t dish up facts, it wouldn’t be in business. Period.

Devin Nunes v Fusion GPS

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Devin Nunes

What are the limits of a congressional committee’s power?

That is the question posed by the actions of Rep. Devin Nunes who is using — abusing, some say — his power as chairman of the House intelligence committee to investigate Fusion GPS, the company that produce the Steele dossier.

In its purported investigation of Russian meddling in the 2016 election, the committee has issued a single subpoena for financial records. That subpoena went to Fusion GPS’ bank and is now the subject of a lawsuit in U.S. District Court in Washington D.C.

You’ll recall that Chairman Nunes worked on the Trump campaign and purportedly recused himself from his committee’s Russia investigation. But he is unable to restrain himself when it comes to Fusion GPS. The subpoena to the firm went out with his signature on it.

Fusion GPS says the subpoena, which demands years of records, is little more than a transparent effort by Chairman Nunes to expose its clients — even those that had nothing to do with Russia — and destroy the secretive company’s business model.

It’s worth noting that Deutsche Bank, which has all sorts of shady dealings with Russia and continued lending to Trump even after he sued them, got a pass from Chairman Nunes’ committee.

In a more recent court filing a few days ago, lawyers for Fusion GPS make the claim that Chairman Nunes is actively working to undermine his own committee’s investigation:

There is evidence that the Committee is coordinating with the President, his personal lawyers, and the Senate Judiciary Committee to misdirect attention to Fusion and its associates in an effort to punish and discredit Fusion, due to their perceived role in exposing the ties between the Trump campaign and the Russians. This coordinated effort includes the subpoena to Fusion’s bank and the apparent leaks from the Committee, and it has been amplified in recent days by attacks on the FBI and Justice Department by members of Congress, the President, and his lawyers.

In its pleadings to the court, Fusion GPS cites the Supreme Court ruling in Watkins v. United States. This case involved John Watkins, a labor organizer, who in 1954 was subpoenaed to testify before Sen. Joe McCarthy’s House Committee on Un-American Activities. Watkins answered questions about his own activities in the Communist Party but he refused to answer questions about other people.  He was convicted of contempt of Congress, but appealed his conviction saying Congress had abused its powers.

The Supreme Court agreed, ruling 6-1, that Congress’ power to investigate was broad, but not unlimited.  “No inquiry is an end in itself; it must be related to, and in furtherance of, a legitimate task of the Congress,” the court ruled. “Investigations conducted solely for the personal aggrandizement of the investigators or to ‘punish’ those investigated are indefensible.”

Indefensible seems an apt work to describe Chairman Nunes’ investigation of Fusion GPS.

 

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.