Category: Felix Sater

A Mobster President?

Former FBI Director James B. Comey Jr. has been making the rounds with the stunning observation that President Donald J. Trump behaved much liked the mob bosses he put on trial in his days as a federal prosecutor in Manhattan.

During his time in the White House, Comey says he felt the president repeatedly trying to make him a member of his corrupted inner circle when he famously asked the FBI director for loyalty.

In his last conversation with Comey on April 11, Trump told him: “I have been very loyal to you, very loyal, we had that thing, you know.” We had that thing. That thing of ours. It’s literally a translation of La Cosa Nostra, which is how  members of the American Mafia describe their organization.

Comey tells us a fundamental truth about the man we have elected to the most powerful office in the world: Donald Trump was a mob-friendly businessman.

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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.

The Scorpion and The Frog

41k6bh9dczl-_sx304_bo1204203200_I just finished reading The Scorpion and the Frog, the book by Felix Sater’s Wall Street pal, Salvatore Lauria.

It’s an interesting read about Sater’s time on Wall Street and his dealings with Mobsters.

Even more interesting are the details about his cooperation with the CIA in Russia against al Qaida that helped keep him out of prison for racketeering.

A lot of these details were new to me, so I thought I would post a little summary of what’s in the book.

Sater’s lawyer, Robert S. Wolf, has called some of the CIA-related portions of the book “fabricated.” However, The Scorpion and the Frog was the subject of a 2002 legal proceeding in federal court in Los Angeles. Lauria sought to stop publication of his own book. Not because it was fiction, but because it told the truth.

According to Lauria, he had agreed to write the book on the condition that his real name not be used. His publisher, however, went ahead and used his real name, and Lauria was worried that he could be physically harmed by the people named in the book. A bench trial was held and in the end a federal judge cleared the way for the book’s publication.

With that said, here’s my abridged version of what the book says:

Felix Sater walked away from his Mob-linked Wall Street business in 1996 and headed for Russia. He would spend the next two years there before returning to the United States to surrender to the FBI in 1998 and plead guilty to racketeering.

Sater had two jobs in Russia. The first was a deal to bring AT&T bulk long distance service and pre-paid phone charge cards to the country. The second was to find a deal that could get him out of jail. 

Sater began to develop contacts at secret Russian military installations known as closed cities, which held “some of the great secrets of the Soviet Union,” Lauria wrote.

The closed cities were opening up. Their representatives were contacting “various countries and rogue organizations interested in buying everything from missiles to assault rifles to millions of rounds of ammunition,” Lauria wrote. They also would make munitions and missiles “to order.”

“We ran into guys selling shiploads of arms to Arabs and other Muslims — Libya, Iraq — countries that were hostile to the United States,” Lauria wrote.

At some point, according to the book, Sater made an initial contact with “someone connected to the CIA.”  

Sater gave this version of events to New York magazine.

One night, Sater told me, he went to dinner with a contact that he assumes was affiliated with the GRU, the Russian military-intelligence agency, where he was introduced to another American doing business in Moscow, Milton Blane. “There’s like eight people there,” Sater said, “and he’s sizing me up all dinner long. As I went to take a piss, he followed me into the bathroom and said, ‘Can I have your phone number? I’d like to get together and talk to you.’ ” Blane, who died last year, was an arms dealer. According to a government disclosure made 13 years ago in response to a Freedom of Information Act query, Blane had a contract with the Defense Department to procure “foreign military material for U.S. intelligence purposes.” Sater says the U.S. wanted “a peek” at a high-tech Soviet radar system. “Blane sat down with me and said, ‘The country needs you,’ ” Sater said.

Back to the book. Sater’s unofficial contact in the CIA came to see him and told him the agency wanted a radar tracking system that the Russians had developed before the fall of the Soviet Union. The radar tracking system had never been deployed, and the CIA worried that the system could fall into the hands of our enemies. 

“We looked around through Lex’s contacts and found we could definitely get the radar system. For once, this was a deal we were doing with no interest in the money.  We were doing it to enhance our own position regarding the legal charges, and also as something that might benefit the country. Money or profit was not an issue. We just wanted the credit for doing it. With a direct line to the radar system, we contacted our lawyer in New York, who went to Washington DC to talk to the CIA”

The CIA was interested. The agency sent a man to Russia, and Sater located the radar tracking system. (In other parts of the book, Lauria calls it a “missile guidance system.”)

With that success,  Sater was approached about acquiring a dozen Stinger missiles. The Stinger was the portable, shoulder-fired missile that used a heat-seeking sensor to home in on an aircraft’s engine. They could be fired from as far away as 5 miles away and could easily bring down a passenger airliner.

The CIA was desperate to get hold of them.  Lauria states that at least 12 Stinger missiles were obtained by Osama bin Laden. 

As he had with the radar tracking/missile guidance system, Sater found that he could get the Stingers, albeit in a round-about way.

Sater could not buy the Stingers directly from al Qaida. “Instead, he used his contact with a KGB general who claimed he had strong ties with Ahmad Shah Massed, leader of the Northern Alliance,” Lauria wrote.  Sater alaso used “connections he thought he had with both sides in the Afghan War.” This is interesting. Was Sater dealing with the Taliban?

According to Lauria, Sater obtained photographs of the Stinger missiles as well as the the serial numbers of three of them to verify their authenticity. Sater also obtained what he thought was an active cell phone number for bin Laden. His attorney supplied it all to the CIA.

The CIA offered to pay Sater $300,000 per missile. Lauria insists there was no profit built into the deal. However, one of their partners, Gennady “Gene” Klotsman went behind their backs and demanded $3 million per Stinger. The CIA was furious and called off the deal.

A few days after the attacks of Sept. 11, 2001, Lauria got a phone call from Sater. The information they had provided about Osama bin Laden was now being actively pursued. 

“Our situation had improved,” Lauria wrote.

 

Exclusive: Felix Sater’s 2010 White House Visit

Felix Sater

Felix Sater, a 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.

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.)

However, Sater was  a prized government informant. He 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 be 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.

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.