America's Problem: Trump Is Married To The Mob

Trump's Mafia connections have been dogging him for his whole life. Somehow they didn't impress his supporters-- except maybe in Staten Island where Mon connections are considered a plus. Yesterday David Von Drehle gave it another try in the Washington Post: All The President's Wiseguys. Trump, he wrote, "spent plenty of time in mobbed-up milieus. As many journalists have documented-- the late Wayne Barrett and decorated investigator David Cay Johnston most deeply-- Trump’s trail was blazed through one business after another notorious for corruption by organized crime. New York construction, for starters. In 1988, Vincent “the Fish” Cafaro of the Genovese crime family testified before a U.S. Senate committee concerning the Mafia’s control of building projects in New York. Construction unions and concrete contractors were deeply dirty, Cafaro confirmed, and four of the city’s five crime families worked cooperatively to keep it that way."

This would not have been news to Trump, whose early political mentor and personal lawyer was Roy Cohn, consigliere to such dons as Fat Tony Salerno and Carmine Galante. After Cohn guided the brash young developer through the gutters of city politics to win permits for Trump Plaza and Trump Tower, it happened that Trump elected to build primarily with concrete rather than steel. He bought the mud at inflated prices from S&A Concrete, co-owned by Cohn’s client Salerno and Paul Castellano, boss of the Gambino family.

Coincidence? Fuhgeddaboudit.

Trump moved next into the New Jersey casino business, which was every bit as clean as it sounds. State officials merely shrugged when Trump bought a piece of land from associates of Philadelphia mob boss “Little Nicky” Scarfo for roughly $500,000 more than it was worth. However, this and other ties persuaded police in Australia to block Trump’s bid to build a casino in Sydney in 1987, citing Trump’s “Mafia connections.”

His gambling interests led him into the world of boxing promotion, where Trump became chums with fight impresario Don King, a former Cleveland numbers runner. (Trump once told me that he owes his remarkable coiffure to King, who advised the future president, from personal experience, that outlandish hair is great P.R.) King hasn’t been convicted since the 1960s, when he did time for stomping a man to death. But investigators at the FBI and U.S. Senate concluded that his Mafia ties ran from Cleveland to New York, Vegas to Atlantic City. Mobsters “were looking to launder illicit cash,” wrote one sleuth. “Boxing, of all the sports, was perhaps the most accommodating laundromat, what with its international subculture of unsavory characters who play by their own rules.”

But an even more accommodating laundromat came along: luxury real estate-- yet another mob-adjacent field in which the Trump name has loomed large. Because buyers of high-end properties often hide their identities, it’s impossible to say how many Russian Mafia oligarchs own Trump-branded condos. Donald Trump Jr. gave a hint in 2008: “Russians make up a pretty disproportionate cross-section of a lot of our assets.”

For instance: In 2013, federal prosecutors indicted Russian mob boss Alimzhan Tokhtakhounov and 33 others on charges related to a gambling ring operating from two Trump Tower condos that allegedly laundered more than $100 million. A few months later, the same Mr. Tokhtakhounov, a fugitive from U.S. justice, was seen on the red carpet at Trump’s Miss Universe pageant in Moscow.

Obviously, not everyone in these industries is corrupt, and if Donald Trump spent four decades rubbing elbows with wiseguys and never got dirty, he has nothing to worry about from special counsel Robert S. Mueller III. But does he look unworried to you?

Perhaps it's worthwhile to go back to a NY Times piece from 1988, long before anyone ever saw a lowlife like Trump in the white House, even as a visitor, Mob Role In New York Construction Depicted. "Vincent (Fish) Cafaro, a former captain in the Genovese organized-crime family in New York," explained The Times, "told the Senate Permanent Subcommittee on Investigations that the Mafia rigged contracting bids in NYC by demanding a 2% kickback from winning bidders and their unions. 'Legitimate guys ain't got a chance,' he said. He told the senators that the Mob-- the Genovese, Gambino, Lucchese and Colombo crime families-- controls 75% New York's construction industry.

Cafaro, who told them he had been involved with the Mafia since 1958, was indicted with Anthony (Fat Tony) Salerno for "racketeering, extortion, plotting murders, gambling and conspiracy." He became an informer for the FBI and wore a wire at Genovese Family meetings from October 1986 to March 1987. In 1989 and 1990, Cafaro testified against Gambino boss John Gotti and then disappeared into the federal Witness Protection Program.

Remember Staten Island Mafioso figure and congressman, Michael "Mikey Suits" Grimm? He was involved with Anthony "Fat Tony" Morelli. Trump's "Fat Tony" was Anthony "Fat Tony" Salerno. During the Republican primaries Ted Cruz tried getting the Trump Mafia story out into the media. Not many people cared. New Yorkers had known about it for decades and Trump fans in the Old Confederacy were already under Trump's spell. Michael Daly, though, gave it a shot for the Daily Beast: The Klansmen and Mobsters in Donald Trump’s Closet.

Cruz sought to rouse the mob ghosts of Donald Trump’s earlier days, saying on NBC that “ABC, CNN, multiple news reports have reported about his dealings with, for example, S&A Construction, which was owned by ‘Fat Tony’ Salerno, who is a mobster who is in jail.”

Trump did deal with S&A Construction in the early 1980s, though not necessarily out of choice.

S&A was indeed owned by Anthony “Fat Tony” Salerno of the Genovese crime family, but he was sentenced to 100 years in prison back in 1986 and died behind bars in 1992.

So an apologist might just shrug and say it was what everybody had to do back in the day in order to build anything at all.

A Trump supporter might even suggest that he and indeed all his fellow builders were victims of the mob in that era.

But few of the builders who accepted S&A concrete as an offer they could not refuse actually met with Salerno, as Trump is said to have done in the office of Roy Cohn the lawyer and fixer, who represented The Donald as well as the Don.

The Smoking Gun also reported that the now-extensive licensing of Trump name began with two lines of glamorized Cadillac limos-- the Trump Golden Series and the Trump Executive Series-- produced by Dillinger Coach Works, which was itself apparently named after the famous gangland figure John Dillinger. The company was owned by two convicted felons, one of whom, John Staluppi, has been identified by the FBI as a member of the Columbo crime family.

And only Trump helped a lady friend of a mob-connected union boss secure financing for three duplex apartments priced at nearly $10 million directly beneath the Trump penthouse in the signature Trump Tower. Verina Hixon’s complex included the building’s only private swimming pool, an addition that required structural alterations to the building.

As reported by Wayne Barrett in his book Trump: The Deals and the Downfall and confirmed by law enforcement officials as well as by people who worked on Trump Tower, the beautiful Hixon was a close pal of union boss John Cody, an avowed admirer of Jimmy Hoffa and also close to Cohn.

The value of Cody’s goodwill became clear when his union, Teamsters Local 282, called a citywide strike just as Trump Tower was near completion. The Trump site was exempted.

The danger of Cody’s displeasure became equally clear when Trump grew so weary of Hixon’s demands that he finally said no. Concrete deliveries ceased not just at Trump Tower but at sites across the city. Hixon soon got what she wanted.

Then Cody was sentenced to federal prison in 1984 for extortion and for attempting to murder the man who took over the union following his arrest. The extent of Cody’s fall became clear when Hixon was forced out of the tower. Trump no longer had her beneath his 68th-floor aerie, which is in truth on the 58th floor, the numbers in the tower’s elevators going from 1 to 6 and then 16 to 68 to make it all seem huger.

As he expanded into the casino business in Atlantic City, Trump agreed to pay twice the market value for land occupied by a bar owned by the sons of two Philadelphia Mafia bosses, the boys having made a name for themselves as part of a crew called the Young Executioners. The purchase, also reported by Barrett in his book, was reportedly routed through the secretary of Paddy McGahn, a thrice-wounded Marine war hero who had become as influential in his city as Roy Cohn was in New York.

In bringing high rollers to Atlantic City, Trump used a helicopter service owned by Joseph Weichselbaum, a mob-connected drug smuggler who lived in a Trump apartment while awaiting sentencing on narcotics charges in 1987. The case was prosecuted in Ohio but was moved to New Jersey for reasons that remain unclear.

As reported by The Smoking Gun, the case was then assigned to The Donald’s sister, federal Judge Maryanne Trump Barry. Some serious ghosts would soon be rising from that supposed coincidence had somebody not thought to quickly shift the case to another judge. Barry’s now-deceased husband, John Barry, often served as The Donald’s lawyer in New Jersey.

Trump’s dealings with mob figures appear to have included at least one member of Chinese organized crime. The Permanent Subcommittee on Investigations of the U.S. Senate’s Committee on Government Affairs reported in 1992 that Danny Leung was both a vice president for marketing at Trump’s Taj Mahal casino and an associate of the 14K Triad.

“He was formerly a business partner with Eddie Louie, a 14K Triad member and the brother of Nickie Louie, aka Louie Yin Poy, a former leader of the Ghost Shadows Gang,” the committee reported. “Leung has also given complimentary tickets for hotel rooms and Asian shows to numerous members and associates of Asian organized crime.”

The committee notes, “The 14K Triad comprises over 30 subgroups which include an estimated membership of over 20,000… The 14K engages in a variety of criminal activities including heroin trafficking, alien smuggling and counterfeit credit card manufacturing, and has connections in the United States for all of these purposes.”

More recently, Trump was joined in building the Trump SoHo by the son of a convicted extortionist described in court papers as a Russian gangster. Court records also show that the son has himself been convicted of felony assault and of bilking investors out of millions in a stock scheme.

Trump has insisted that he only had minimal dealings with the felon, Felix Sater, and was unaware of the man’s record until it was reported in the newspapers. Trump has also insisted that he had minimal dealings with John Cody, telling The Daily Beast that “I barely knew him,” describing the union boss as “a bad guy.” Trump has further denied ever encountering Salerno, though the encounter has been described by a Cohn assistant and there is no disputing that Trump did business with the mobster’s firm.

Trump with father figure, right-wing Mafia lawyer Roy Cohn

A couple of months before the election, we noted that even Trump campaign volunteers at the lowest level had to sign a 2,271-word non-disclosure agreement in which they also promise they won't compete against or say anything bad about Trump, his company, his family members [including Barron] or products-- now and forever." The bizarre requirement meant that even online volunteers had to sign the form, even if they'd never meet a Trumpanzee family member, attend a Trumpanzee rally, meet a Trumpanzee campaign staffer in person or step inside a Trumpanzee campaign office. Those years and decades with the slimiest and most dishonest lawyer in contemporary American history, Roy Cohn, had certainly rubbed off on Señor Trumpanzee. And in more ways than one. Also during the campaign, the Wall Street Journal described Signore Trumpanzee's deep ties to the Mob, writing that through his shady businesses in NYC and Atlantic City he "sometimes dealt with people who had ties to organized crime, while giving Trumpanzee the opportunity to describe himself as "the cleanest guy there is."

Some developers avoided working directly with unsavory figures by operating through a general contractor. Mr. Trump said he preferred to negotiate business matters personally, because he made more money that way.

Referring to a concrete contracting firm that law enforcement said was affiliated with one of New York’s Mafia families, Mr. Trump said: “That was a major contractor. You hear stories that they may have been [mob-controlled].

“In the meantime, I was a builder. I was never going to run for office.… I’d go by the lowest bid and I’d go by their track record, but I didn’t do a personal history of who they are.”

Many of the associations the Journal explored have been previously reported piecemeal. In the early 1990s, Mr. Trump’s license to operate casinos in Atlantic City was re-examined after a book by reporter Wayne Barrett alleged a number of organized-crime connections. New Jersey officials determined Mr. Trump remained eligible.

In its own examination, the Journal reviewed thousands of pages of legal and corporate documents and interviewed dozens of Mr. Trump’s business associates.

The gambling business now is largely corporate, but at the time when Atlantic City was newly opened to casinos and a family friend suggested Mr. Trump build there, many banks shunned the industry.

“Any project in the gaming arena in general is a difficult project to finance, because of the natural prohibition that a lot of institutions have,” Mr. Trump told New Jersey casino regulators in 1982.

Some of the people he dealt with in Atlantic City illustrate why the FBI agent counseled caution.

Kenneth Shapiro owned part of a site where Mr. Trump wanted to build his first casino. Mr. Shapiro was a Philadelphia scrap-metal dealer and property investor, described by law enforcement as an “agent” of Philadelphia mob boss Nicodemo “Little Nicky” Scarfo.

A co-owner of the site was Daniel Sullivan, a gregarious six-foot-five Teamster and labor consultant with a criminal record that included a weapons violation. “He knew a lot of organized-crime figures and they knew him,” said Walter Stowe, a former FBI agent.

Mr. Sullivan also was a tipster to the FBI. Gangsters “knew he was an informant. I don’t know why nobody ever tried to kill him,” Mr. Stowe said.

Mr. Trump negotiated with Messrs. Shapiro and Sullivan, now both dead, to lease their property. “They are not bad people from what I see,” Mr. Trump said at a regulatory hearing in 1982. His project nonetheless faced obstacles because of their involvement.

Mr. Sullivan, Mr. Trump and another partner had a deal to acquire an interest in a drywall company. New Jersey casino regulators told Mr. Trump any dealings with Mr. Sullivan beyond the property lease could delay casino licensing. He backed out of the drywall deal.

When the hotel-casino was near completion, the regulators said Messrs. Shapiro and Sullivan might need casino licenses too, as site owners, but could have trouble getting them. Eventually, Mr. Trump bought the two out.

Mr. Trump also used Mr. Sullivan as an adviser on New York labor issues. These included a 1980 dispute over the use of undocumented Polish workers to demolish the Bonwit Teller store on Fifth Avenue to make way for Trump Tower, Mr. Sullivan said in lawsuit testimony. Mr. Trump, in testimony of his own, said he didn’t know there were undocumented workers at the site.

Mr. Trump told the Journal he knew Mr. Sullivan and considered him “OK” because he traveled with FBI agents. He said he didn’t know of any underworld connection Mr. Shapiro might have had.

Mr. Shapiro was a conduit the Scarfo crime family used to buy influence with Atlantic City’s then-mayor, Michael J. Matthews, according to a 1984 indictment of the mayor. The late Mr. Matthews pleaded guilty to extortion. Mr. Scarfo, now in prison, didn’t agree to an interview.

Mr. Trump, as a casino owner, couldn’t legally contribute to the local politicians who controlled such matters as zoning and signs. Mr. Shapiro told a federal grand jury he secretly gave thousands of dollars to the mayor on Mr. Trump’s behalf, said people familiar with his account.

“Donald was always trying to maneuver politically to get things done,” said Mr. Shapiro’s brother Barry Shapiro.

Kenneth Shapiro said he never was reimbursed for the money given the mayor, according to his brother and two other people. “Donald just reneged; that’s his automatic thing,” Barry Shapiro said.

Asked about this, Mr. Trump said he didn’t make contributions to the Atlantic City mayor. “I’m not interested in giving cash, OK?...The last thing I’m doing is now handing cash.”

As for Mr. Shapiro, “I never remember him asking me for money. He was always straight with me...I didn’t know Shapiro well other than to know that we did a pretty small little land transaction down in Atlantic City, which was fine.”

A major profit source at one Trump casino was a racehorse trader named Robert LiButti. His gambling losses earned Trump Plaza $11 million between 1986 and 1989, state documents show.

Mr. LiButti had been convicted of tax fraud related to horse sales in 1977 and was barred from attending races in New York for trying to conceal his horse ownership. A Trump employee told New Jersey regulators that Mr. LiButti repeatedly invoked the name of gangster John Gotti and called him “my boss,” according to a 1991 state investigative report.

“LiButti was a high-roller in Atlantic City,” Mr. Trump said in an interview. “I found him to be a nice guy. But I had nothing to do with him.”

Jack O’Donnell, who ran Trump Plaza in the late 1980s, said, “It isn’t like [Mr. Trump] saw LiButti once or twice-- he spent time with him, saw him multiple times,” and even attended a birthday party for Mr. LiButti’s daughter.

The daughter declined to be interviewed but confirmed to Yahoo News that Mr. Trump attended a birthday party for her.

It was illegal in New Jersey for casinos to keep high-rollers happy by giving them cash gifts. Regulators, in a ruling that didn’t cite Mr. Trump personally, fined Trump Plaza for funneling Mr. LiButti $1.65 million via gifts of expensive cars quickly converted into cash.

Mr. Trump agreed in 1988 to buy a horse from Mr. LiButti for $250,000, Mr. O’Donnell said in a book he wrote after quitting Trump Plaza. The horse, named D.J. Trump, had cost the LiButti family just $90,000 a year earlier, according to Blood Horse magazine. Mr. O’Donnell said Mr. Trump aborted the deal after the horse had a health problem.

Mr. Trump didn’t respond to questions about the horse and the birthday party.

...A lawyer Mr. Trump relied on and socialized with in his early years was the hard-driving attorney Roy Cohn. Among Mr. Cohn’s clients were several gangsters, including Anthony “Fat Tony” Salerno, co-owner of a concrete company important to New York builders. Former Trump Organization executive Barbara Res said that during heated negotiations with contractors, Mr. Trump would pull out a photo of Mr. Cohn and say, “I’m not afraid to sue you and this is who my lawyer is.”

Mr. Trump called that “totally false.” He said people in the construction industry “don’t get scared by holding up a picture.”

Mr. Trump was a character witness for Mr. Cohn in proceedings that led to the lawyer’s disbarment shortly before his death in 1986.

Mr. Cohn had many clients who, like Mr. Trump, weren’t mob-affiliated, such as the late Yankees owner George Steinbrenner. “Roy was a great lawyer if he wanted to be,” Mr. Trump said in an interview.

Messrs. Cohn and Trump had a common associate in Teamsters official John A. Cody. Mr. Cody had a lengthy arrest record and was close to mob bosses Carlo Gambino and Paul Castellano, according to a Justice Department memo from 1982, when Mr. Cody was convicted of racketeering.

Mr. Cody led a powerful union local that represented drivers who delivered cement to New York construction sites.

When he called a strike, Mr. Trump still received cement for Trump Tower, said Mr. Cody’s son, Michael.

“My father wasn’t that generous, unless there was a reason,” Michael Cody said.

...In the 2000s, Mr. Trump dealt with another figure who had gangland ties. It happened when a small real-estate firm called Bayrock Group rented space in Trump Tower, two floors below Mr. Trump’s offices, and negotiated deals with Mr. Trump to put his name on buildings and give him equity in them. One person Mr. Trump worked with at Bayrock was Felix Sater.

In the early 1990s, well before Mr. Trump knew him, the Russian-born Mr. Sater was a stockbroker but lost his license and went to prison after he jabbed a margarita glass into a man’s face in a bar fight.

Later in the 1990s, Mr. Sater was involved in a Mafia-linked scheme to pump up marginal stocks, dump them on unsuspecting investors and stash the profits abroad. The scheme relied on gangsters from three mob families for protection, said a Justice Department news release. It quoted the New York police commissioner at the time as saying the operation could have been called “Goodfellas Meet the Boiler Room.”

Mr. Sater pleaded guilty to racketeering, cooperated with prosecutors and had his conviction sealed. It was then, around 2000, that he joined Bayrock and sometimes dealt with Mr. Trump on real estate.

Bayrock’s projects included the Trump SoHo condos in New York and Trump International Hotel & Tower in Fort Lauderdale, Fla. Its marketing in Fort Lauderdale included a letter in which Mr. Trump said, “This magnificent oceanfront resort offers the finest and most luxurious experience I have ever created.”

The New York Times described Mr. Sater’s criminal history in an article in 2007. Mr. Trump, giving a court deposition days later, said he was unaware of it until then.

Two federal press releases in 2000 had referred to Mr. Sater’s past, one from the National Association of Securities Dealers and one from the Justice Department. The Justice Department one announced the indictment of 19 people in the pump-and-dump stock scheme Mr. Sater was part of, including several it identified as members of La Cosa Nostra.

The Justice Department release said a Genovese crime-family soldier, Ernest “Butch” Montevecchi, had protected Mr. Sater from an extortion effort.

Mr. Montevecchi declined to comment.

In a 2009 court proceeding, Mr. Sater described the Bayrock real-estate business, which is no longer active, as one he “built with my own two hands” and where he was probably the No. 2 person. In an interview, Mr. Sater said he had atoned for his crimes by cooperating with the government in the pump-and-dump case and on national-security matters. He declined to answer questions about Mr. Trump.

More recently, Trump's Organized Crime dealings have been with the Russian Mafia rather than the old traditional Italian Mafia. In Trump’s Russian Laundromat, veteran journalist Craig Unger details how the Russian mafia has used the president’s properties-- including Trump Tower and the Trump Taj Majal-- as a way to launder money and hide assets. "Whether Trump knew it or not," writes Unger, "Russian mobsters and corrupt oligarchs used his properties not only to launder vast sums of money from extortion, drugs, gambling, and racketeering, but even as a base of operations for their criminal activities. In the process, they propped up Trump’s business and enabled him to reinvent his image. Without the Russian mafia, it is fair to say, Donald Trump would not be president of the United States."

The Trump Organization Was Always A Mafia Front-- What About The Trump Regime?

There was lots of bitching and kvetching that the FBI treated Michael Cohen like a Mafia lawyer when they raided hhis home, his hotel room and his office-- kicking down the door in the case of the office. Sunday, former FBI chief, James Comey, is going to be on a 20/20 special with George Stephanopoulos and, according to Axios, a source present at the taping says the interview is going to shock the president and his team. It's his first interview since Señor T fired him almost a full year ago. A promo for the show compares Trumpanzee to a mob boss. And...

• The Comey interview left people in the room stunned-- he told George things that he’s never said before.
• Some described the experience as surreal. The question will be how to fit it all into a one-hour show.
• Comey answered every question.
• If anyone wonders if Comey will go there, he goes there.

Long before Putin helped him steal the 2016 election allegations of Mafia connections have always swirled around Trump and his closest associates. Yesterday, Rolling Stone published an essay by Seth Hettena based on an excerpt from his book, Trump / Russia: A Definitive History, due out May 8th. Subject: Cohen's criminal ties... ties that go beyond the taxi medallions.

The U.S. Attorney's office in Manhattan, acting on a referral from Special Counsel Robert Mueller, is investigating Cohen for possible bank fraud and campaign finance violations that stem, at least in part, from a $130,000 payment Trump's attorney made to hush up a porn star who says she slept with the president. ("I will always protect Mr. Trump," Cohen said.) Meanwhile, Mueller is investigating a $150,000 "donation" that Cohen arranged for Trump's foundation in 2015 from a Ukrainian billionaire named Victor Pinchuk. "Attorney-client privilege is dead!" Trump tweeted this morning. It's not dead, but the raid on Cohen's home, office and swanky Park Avenue hotel room is an extraordinary step that underscores his decade-long role as Trump's heavy, fixer and connector.

Cohen joined the Trump Organization in 2006, and eventually became Trump's personal lawyer, a role once occupied by Roy Cohn, Senator Joseph McCarthy's heavy-lidded hatchet man during the Red Scare who advised Trump in the 1980s. Michael Cohen's bare-knuckled tactics earned him the nickname of "Tom," a reference to Tom Hagen, the consigliore to Mafia Don Vito Corleone in The Godfather. He grew up on Long Island, the son of a physician who survived the Holocaust in Poland, and like Tom Hagen spent a childhood around organized crime, specifically the Russian Mafiya. Cohen's uncle, Morton Levine, was a wealthy Brooklyn doctor who owned the El Caribe Country Club, a Brooklyn catering hall and event space that was a well-known hangout for Russian gangsters. Cohen and his siblings all had ownership stakes in the club, which rented for years to the first Mafiya boss of Brighton Beach, Evsei Agron, along with his successors, Marat Balagula and Boris Nayfeld. (Cohen's uncle said his nephew gave up his stake in the club after Trump's election.)

I spoke to two former federal investigators who told me Cohen was introduced to Donald Trump by his father-in-law, Fima Shusterman, a naturalized U.S. citizen from Ukraine who arrived in the U.S. in 1975. Shusterman was in the garment business and owned a fleet of taxicabs with his partners, Shalva Botier and Edward Zubok-- all three men were convicted of a money-laundering related offense in 1993. "Fima may have been a (possibly silent) business partner with Trump, perhaps even used as a conduit for Russian investors in Trump properties and other ventures," a former federal investigator told me. "Cohen, who married into the family, was given the job with the Trump Org as a favor to Shusterman." ("Untrue," Cohen told me. "Your source is creating fake news.")

Shusterman, who owned at least four New York taxi companies, also set his son-in-law up in the yellow cab business. Cohen once ran 260 yellow cabs with his Ukrainian-born partner, the "taxi king" Simon V. Garber, until their partnership ended acrimoniously in 2012. Glenn Simpson, the private investigator who was independently hired to examine Trump's Russia connections during the real estate mogul's presidential run, testified before the House Intelligence Committee that Cohen "had a lot of connections to the former Soviet Union, and that he seemed to have associations with organized crime figures in New York and Florida – Russian organized crime figures," including Garber.

A curious episode in Cohen's life came in 1999 when he received a $350,000 check from a professional hockey player named Vladimir Malakhov, who was then playing for the NHL's Montreal Canadiens. According to Malakhov, the check was a loan to a friend. The friend, however, swore in an affidavit that she never received the money and never even knew the check had been written until it was discovered years later in a Florida lawsuit. So what happened to the money? One interesting lead was an incident involving Malakhov, who was approached in Brighton Beach and shaken down for money by a man who worked for the Russian crime boss, Vyacheslav Ivankov. "Malakhov spent the next months in fear, looking over his shoulder to see if he was being followed, avoiding restaurants and clubs where Russian criminals hang out," according to testimony an unnamed Russian criminal gave to the U.S. Senate in 1996. Cohen, who said he didn't know Malakhov or anyone else in the case, offered his own theories as to the origin and fate of the check in a 2007 deposition with Malakhov's attorneys.

Q. You don't recall why this check was written to you for $350,000 in 1999 and how these funds left your trust account in any way, shape or form?

A: Clearly Vladimir Malakhov had to have known somebody who I was affiliated to and the only person I can-- and I mentioned my partner's name, Simon Garber, who happens also to be Russian.

Regardless of what he did or didn't know Cohen was able to purchase a $1 million condo at Trump World Tower in 2001, persuading his parents, his Ukrainian in-laws and Garber to do the same in other Trump buildings. Cohen's in-laws Fima and Ania Shusterman bought three units in Trump World Tower worth a combined $7.66 million (one of which was rented to Jocelyn Wildenstein, the socialite known as "Catwoman" for undergoing extreme facial plastic surgery to please her cat-loving husband). Cohen later purchased a nearly $5 million unit in Trump Park Avenue. In a five-year period, he and people connected to him would purchase Trump properties worth $17.3 million. All the frenzied buying by Cohen and his family caught the attention of the New York Post, often described as Trump's favorite newspaper. "Michael Cohen has a great insight into the real-estate market," Trump told a reporter in 2007. "He has invested in my buildings because he likes to make money-- and he does." Trump added, "In short, he's a very smart person."

During Trump's presidential run, reporters noticed a curious thing about Cohen. Questions about Trump's business or his taxes went to his chief legal officer or another staffer, but Cohen handled questions about Russia. "One of the things that we learned that caught my interest," Simpson testified to Congress in November 2017, "serious questions about Donald Trump's activities in Russia and the former Soviet Union went to Michael Cohen, and that he was the only person who had information on that subject or was in a position to answer those questions."

In the 1990s, there was an informal group of federal and local law enforcement agents investigating the Russian Mafiya in New York that called themselves "Red Star." They shared information they learned from informants. It was well known among the members of Red Star that Cohen's father-in-law was funneling money into Trump ventures. Several sources have told me that Cohen was one of several attorneys who helped money launderers purchase apartments in a development in Sunny Isles Beach, a seaside Florida town just north of Miami. This was an informal arrangement passed word-of-mouth: "We have heard from Russian sources that... in Florida, Cohen and other lawyers acted as a conduit for money."

A year after Trump World Tower opened in 2002, Trump had agreed to let Miami father-and-son developers Gil and Michael Dezer use his name on what ultimately became six Sunny Isles Beach condominium towers, which drew in new moneyed Russians all too eager to pay millions. "Russians love the Trump brand," said Gil Dezer, who added that Russians and Russian-Americans bought some 200 of the 2,000 or so units in Trump buildings he built. A seventh Trump-branded hotel tower built up Sunny Isles into what ostensibly has become a South Florida Brighton Beach.

An investigation by Reuters found that at least 63 individuals with Russian passports or addresses have bought at least $98.4 million worth of property in the seven Trump-branded luxury towers. And that was a conservative estimate. At least 703-- or about one-third-- of the 2044 units were owned by limited liability companies, or LLCs, which could conceal the property's true owner. Executives from Gazprom and other Russian natural resource giants also owned units in Trump's Sunny Isles towers. In an observation that several people I spoke with echoed, Kenneth McCallion, a former prosecutor who tracked the flows of Russian criminal money into Trump's properties, told me, "Trump's genius-- or evil genius-- was, instead of Russian criminal money being passive, incidental income, it became a central part of his business plan." McCallion continued, "It's not called 'Little Moscow' for nothing. The street signs are in Russian. But his towers there were built specifically for the Russian middle-class criminal."

Cohen joined the Trump Organization around the time that the second Sunny Isles tower was being built. A few years earlier, he had invested $1.5 million in a short-lived Miami-based casino boat venture run by his two Ukrainian business partners, Arkady Vaygensberg and Leonid Tatarchuk. Only three months after its maiden voyage, it would become the subject of a large fraud investigation. But Cohen was saved from his bad investment by none other than Trump himself, who hired Cohen as an attorney just before his casino ship sank. A source who investigated Cohen's connections to Russia told me, "Say you want to get money into the country and maybe you're a bit suspect. The Trump organization used lawyers to allow people to get money into the country."

  Residents at Sunny Isles included people like Vladimir Popovyan, who paid $1.17 million for a three-bedroom condo in 2013. Forbes Russia described Popovyan as a friend and associate of Rafael Samurgashev, a former championship wrestler who ran a criminal group in Rostov-on-Don in southeastern Russia. Peter Kiritchenko, a Ukrainian businessman arrested on fraud charges in San Francisco in 1999, and his daughter owned two units at Trump Towers in Sunny Isles Beach worth $2.56 million. (Kiritchenko testified against a corrupt former Ukrainian prime minister who was convicted in 2004 of money laundering.) Other owners of Trump condos in Sunny Isles include members of a Russian-American organized crime group that ran a sports betting ring out of Trump Tower, which catered to wealthy oligarchs from the former Soviet Union. Michael Barukhin, who was convicted in a massive scheme to defraud auto insurers with phony claims, lived out of a Trump condo that was registered to a limited liability corporation.

Selling units from the lobby of the Trump International Beach Resort in Sunny Isles was Baronoff Realty. Elena Baronoff, who died of cancer in 2015, was the exclusive sales agent for three Trump-branded towers. Glenn Simpson, who spent a year investigating Trump's background during the campaign, testified before the House Intelligence Committee that Baronoff was a "suspected organized crime figure."

An Uzbek immigrant who arrived in the United States as a cultural attaché in public diplomacy from the Soviet Union, Baronoff became such a well-known figure in Sunny Isles Beach that she was named the international ambassador for the community. Baronoff accompanied Trump's children on a trip to Russia in the winter of 2007–2008, posing for a photo in Moscow with Ivanka and Eric Trump and developer Michael Dezer. Also in the photo, curiously, was a man named Michael Babel, a former senior executive of a property firm owned by Oleg Deripaska, the Russian metals tycoon Paul Manafort allegedly offered personal updates on Trump's presidential campaign. Babel later fled Russia to evade fraud charges.

Baronoff had interesting connections to Sicily. She reportedly met her friend, the Russian foreign minister Sergey Lavrov, there. Baronoff was also close with Dino Papale, a local businessman, who described himself to the New York Times as "president of Trump's Sicilian fan club," while sporting a red "Make America Great Again" cap. Days after Trump's election in November, the local newspaper, La Sicilia, quoted Papale at length describing Trump's secret visit to the island in 2013. Papale hinted that he organized meetings between Trump and Russians.

Michael Cohen's in-laws, the Shustermans, also bought real estate in Sunny Isles. The development was paying off. Trump's oldest son, Don Jr., would later note, "We see a lot of money pouring in from Russia." There is no question Trump owed his comeback in large part to wealthy Russian expatriates.

Cohen and Felix Sater have known each other for nearly 30 years. They met in Brighton Beach when Cohen started dating his future wife, Shusterman's daughter, Laura, who Sater says he knew from the neighborhood. When Cohen joined the Trump organization, Sater had become a fixture in the office. Sater was developing Trump SoHo, a hotel-condo in lower Manhattan that later would be consumed by scandal, and had earned Trump's trust. Trump asked him to look after his children, Ivanka and Don Jr., on a 2006 visit to Moscow. (It was during the Moscow trip that Sater used his Kremlin connections to impress Trump's daughter. Sater would later boast: "I arranged for Ivanka to sit in Putin's private chair at his desk and office in the Kremlin.") When Sater's criminal past was exposed in The New York Times, Trump suddenly looked and acted like a man with something to hide. Despite laying claim to "one of the great memories of all time," he seemed to be having trouble recollecting who Sater was. "Felix Sater, boy, I have to even think about it," Trump told The Associated Press in 2015. "I'm not that familiar with him." Sater flatly contradicted Trump's version of their relationship. In a little-noticed interview with a Russian publication, Snob, Sater was asked if his criminal past was a problem for Trump. "No, it was not. He makes his own decision regarding each and every individual."

In the midst of Trump's presidential run, Sater was shopping a deal to build a Trump World Tower Moscow. Between September 2015 and January 2016, Sater tried to broker a deal for a Moscow company called IC Expert Investment Company. (Sater worked for IC Expert's owner, Andrei Rozov, after he left Bayrock.) Trump signed a letter of intent in October with IC Expert Investment for a Moscow hotel-condo with the option for a "Spa by Ivanka Trump." Providing financing was VTB, a Russian bank subject to U.S. sanctions. Sater's contact at the Trump Organization was his old friend, Trump's lawyer, Michael Cohen. In mid-January, Sater urged Cohen to send an email to Dmitry Peskov, Vladimir Putin's press secretary, "since the proposal would require approvals within the Russian government that had not been issued." Cohen sent the email, got no reply, and said he abandoned the proposal two weeks later.

What Cohen called his old friend's "colorful language" attracted attention from congressional investigators and Special Counsel Robert Mueller's office: "Michael I arranged for Ivanka to sit in Putins private chair at his desk and office in the Kremlin," Sater emailed Cohen in November 2015. "I will get Putin on this program and we will get Donald elected. We both know no one else knows how to pull this off without stupidity or greed getting in the way. I know how to play it and we will get this done. Buddy our boy can become President of the USA and we can engineer. I will get all of Putins team to buy in on this."

Sater gave an unsatisfactory answer to BuzzFeed about why he wrote this email. "If a deal can get done and I could make money and he could look like a statesman, what the fuck is the downside, right?"

Shortly after Trump took office, Sater teamed up with Cohen to submit a Ukrainian peace plan to then national security advisor Michael Flynn that would have opened the door to lifting sanctions on Russia. What happened to the plan? The lawyer at first told the New York Times that he left the plan in Flynn's office. Then, after the story became an embarrassment, he called the Times story "fake news" and claimed he pitched the plan into the trash.

Cohen has always acted to protect Trump, and he likely believed that he could always rely on the impenetrable shield of attorney-client privilege. Arguably, no one who has worked with Trump over the past decade knows more about the president's past business dealings in Russia and elsewhere abroad than Cohen. Now that prosecutors have him in their sights, here's the question: Will Cohen's shield, now broken, become a sword?

Michael "Mikey Suits" Grimm Shits On Andrew McCabe For Trump

In case you missed Chris Hayes' jaw-dropping interview with double (or triple) agent Felix Sater Friday night, MSNBC has actually posted it in embeddable form. That's it above. Sater is the kind of instinctual career criminal who will work for the Mob one day, the FBI or CIA the next day and the Russians the day after-- at the time, of course-- working for no one but Felix Sater. They don't come lower. But they do come as low. Remember Michael "Mikey Suits" Grimm? Like Sater, he likes to immunize himself from criticism by screaming how he served in the military. But, like Sater, Grimm has flitted from one thuggish outfit after another, betraying each in turn and always looking out for Number One.

And, like Sater, Grimm is currently out of prison and trying to rehabilitate his image-- except he's going about it by running for his old Staten Island/South Brooklyn congressional seat-- the most Mafia-oriented House seat in the country. Staten Island is the last redoubt of the Italian Mafia and south Brooklyn is America's top Russian Mafia territory. Both areas voted for Trump in 2016. The district as a whole gave Trump 53.6% of the vote to Hillary's 43.8%. The current congressman, Dan Donovan is a conventional mainstream conservative, a Republican whose voting record is pretty much identical to what Grimm's was like before he got hauled away to prison. He's a former district attorney, fighting for his political life in a district that is evenly split between the cops and robbers.

Grimm was Steve Bannon's first House recruit, just before Bannon was unceremoniously banished from Trumpville-- his project to destroy the Republican Party establishment shelved. Grimm, who spent a couple months with his head up Bannon's ass, now routinely denounces him. Long before Grimm ever imagined he would run for Congress, he was an undercover agent for the FBI. And an undercover agent for the Mafia-- a double agent. I started following Mikey Suits before he got into politics, when he was just the lowlife bag man who took the Duke Cunningham long-disappeared and unaccounted for $400,000 bribe from Thomas Kontogiannis to George W. Bush. Funny how Grimm, Cunningham and Kontogiannis all went to prison but the "missing" $400K has never been recovered. So much water under the bridge in the last decade and a half!

And last night, while many of us were watching slime bucket Felix Sater spinning his lies on MSNBC, Grimm-- remember, an ex-FBI agent-- released a statement about Andrew McCabe's firing.

"The firing of Andrew McCabe is the first time I've seen true justice on the federal level since the corrupt witch hunt I personally endured. Don't be shocked when Peter Strzok, Loretta Lynch and James Comey are the next to be revealed for the corrupt partisans that they are. As a former FBI agent that was investigated and fully exonerated by Office of Professional Responsibility and the Office of the Inspector General, I can attest to the integrity of that team of watchdogs. The FBI and DOJ's highest echelon of political appointees needs to be cleaned out and this was a necessary step in preserving the faith we all have in the nation's premier law enforcement agency and its brave rank and file."

Interesting perspective from the former Gambino Crime family operative! During the Romney campaign, when Grimm was already in Congress, enough Mikey Suits dirty laundry started leaking out that Romney staffers made the Staten Island congressman a persona non-grata and removed him from his campaign position and took his name off the official Romney website. The specific impetus was when Grimm snuck off from the the GOP frat party at the Sea of Galilee to visit some organized crime connections in Cyprus. The FBI was in hot pursuit and one of Grimm's Cyprus connections, Panayiotis "Peter" Papanicolaou, currently in prison. At the time, both the NY Times and the NY Post ran stories they'd been working on for a very long time... about Grimm's connection to the Mafia here at home, specifically he Gambino connection. Ironically, Grimm's first conversation with then Speaker John Boehner was to demand that Members of Congress be allowed to pack heat on the House floor. Instead Boehner had him banned from his office. The Post got excited about Grimm's Gambino connection.

Staten Island Rep. Michael Grimm investigated the Gambino crime family as an FBI agent-- before opening a restaurant with a business partner so close to one of the mob clan’s capos, he considers him an “uncle,” according to sources and court documents.

The first-term Republican’s ex-business partner, Bennett Orfaly, regularly travels to the federal lockup in Fort Dix, NJ, to visit his pal Anthony "Fat Tony" Morelli, Brooklyn federal prosecutors said.

Morelli’s mob assignments included overseeing the family’s investments in pornography, labor racketeering and illegal dumping, law-enforcement sources said.

Late Gambino boss John Gotti put him in charge of the family’s Florida rackets, one source said.

Morelli, who is serving time on several convictions, is “like an uncle” to Orfaly, another source said.

Asked about his Gambino connections, Orfaly declined to comment. Grimm is under investigation for alleged fund-raising irregularities in his 2010 campaign.

As an FBI agent, Grimm was responsible for keeping tabs on John Gotti’s brother Peter. He also worked undercover on a case that resulted in the arrest of Gambino soldier Greg DePalma.

...An Israeli named Ofer Biton, who until recently was jailed on an a charge of immigration fraud.

He was released to house arrest on a $1.5 million bond after Orfaly posted his stake in several restaurants co-owned with Biton, according to court papers.

Biton’s lawyer, John Meringolo, says the feds are threatening his client with more serious charges unless he testifies against Grimm in the fund-raising probe.

...Before his election to Congress in 2010, Grimm and Orfaly had been partners in an Upper East Side eatery, Healthalicious.

McGinley [Grimm's lawyer] says that prior to making his run, Grimm sold his share of that business to Orfaly.

But three sources familiar with the ongoing probe, told The Post the purchaser was Biton. Either way, Biton now owns Healthalicious outright, sources said-- and he is partners with Orfaly in several Manhattan pita restaurants.

As far as Biton goes, prosecutors claim that a decade ago, he was a member of an ecstasy ring in California and was wiretapped talking to a senior Israeli organized-crime associate. Biton was never charged with any drug crime.

In addition to his problems with the feds, Grimm also faces a civil lawsuit by Healthalicious workers, alleging wage violations when he was part-owner.

A lawyer for the workers, Michael Faillace, said they settled with Orfaly, but Grimm asked that an agreement with him be postponed until after the election.

Now keep in mind that before Grimm ran for Congress, he had been kicked out of the FBI, mostly for taking payoffs from Kontogiannis. Kontogiannis' story would be the biggest political blockbuster of our lifetimes. He's been told he'd be found dead in his cell if he ever tries to tell it though-- and it involves Saudis, Greeks, a $400,000 cash bribe to George Bush and... Grimm. In August, 2013, Grimm's fundraiser Ofer Biton plead guilty in a sweet deal that saved Grimm a lot of trouble.

A former fund-raiser for Representative Michael G. Grimm, whose campaign finances are under investigation by federal prosecutors, pleaded guilty on Friday to visa fraud.

The former fund-raiser, Ofer Biton, an Israeli immigrant who helped direct hundreds of thousands of dollars from supporters of a revered rabbi to Mr. Grimm’s campaign before his election to Congress in 2010, was arrested last August and charged with lying on his visa application.

Followers of the rabbi, Yoshiyahu Pinto, have said in interviews that Mr. Grimm or Mr. Biton told them that the campaign would find a way to accept donations that were over the legal limit, were given in cash or were given by foreigners who did not have permanent resident status.

Is it any wonder Grimm hates the FBI today. Too bad they don't talk about what he was up to when he was a double agent. It would make the Bureau look too bad.

Trump's Toxic Brand Is Now Less Than Worthless

Every time another Trump property is called out for being a major hub or criminal activity-- like in Baku and more recently, Panama City, the Trump's go to great lengths to explain that they don't own the hub and they don't know anything about it... all they do is rent the building Trump's name. In fact, all his bullshit about being a multibillionaire was always based on the "value" of his name as a brand. Before he moved into the White House, he owned about $940 million in real stuff you can sell but the $10 billion dollar claims about his worth were all based on his brand being worth any random number of billions of dollars.

Well, it turns out the nearly bankrupt Trump Soho is paying him for his name--paying him to take it down and end any association between the hotel and the toxic Trump brand. Back in April we mentioned that the Trump Soho's sushi restaurant, Koi, shut down. Grubstreet explained that "his controversial campaign’s harsh rhetoric and administration’s agenda have made many potential customers uneasy about giving their business to Trump’s properties. Residents of Manhattan’s Trump Place successfully changed their property’s name, two celebrity chefs famously backed out of D.C.’s Trump International Hotel and others were unwilling to replace them, and Trump’s new line of hotels won’t bear his name. Then last December, a month after three NBA teams announced they wouldn’t stay at his hotels, members of the Cleveland Cavaliers (including Black Lives Matter supporter LeBron James) refused to stay at the Trump Soho. Now, that hotel’s restaurant operator, Koi, an international chainlet of sushi spots for beautiful people, is shuttering its outpost there. But this isn’t a closing as usual. It’s collateral damage from the rise of Trump." Trump's name will come off the hotel and the Trump Organization will cease managing the property.

Trump SoHo has emerged as one of the clearest examples of how Trump's divisive politics have redefined his luxury hotel and real estate company, which spent years courting upscale customers in liberal urban centers where he is now deeply unpopular.

...The deal to remove the Trump name was made with the Trump SoHo condominium board and the property's majority owner, CIM Group, a California-based real estate investment firm. The hotel is divided into condominiums whose owners allowed them to be rented out as hotel rooms.

"We recognize and sincerely appreciate [the Trump Organization's] contributions to this exceptional asset," Bill Doak, CIM Group's first vice president of hotels, said in a statement.

The release did not specify what the building would be renamed or who would run it. Trump Organization and CIM Group officials declined to answer questions about the reasons for the move.

Officials described the transaction as a "buyout" but did not specify whether any money changed hands between the Trump Organization and the building's owners. The president's business now receives 5.75 percent of the hotel's operating revenue as a management fee, according to company documents posted online by Reuters.

This will be the third time since Trump's election that his name has been removed from a building. In July, the Trump name was taken off the Trump International Hotel in Toronto after the property's owner reached a similar buyout deal. The hotel will be reopened as a St. Regis, according to the Toronto Star.

And last year, the owners of three Trump Place apartment buildings in New York announced that those properties would be renamed after tenant complaints. Trump's company no longer had a business relationship with the buildings.

...[T]he Trump Organization has seen greens-fee revenue fall at its golf courses in Los Angeles and the Bronx, and it has lost dozens of customers who rented out banquet rooms for parties or golf courses for charity tournaments.

One of the biggest changes has happened at Mar-a-Lago, the president's for-profit social club, which doubles as the "winter White House" in Palm Beach, Florida. Last summer, 19 charities canceled galas or other fundraisers they had planned for this winter at Mar-a-Lago, costing the Trump Organization hundreds of thousands of dollars in lost revenue.

The SoHo hotel was once a jewel of the Trump empire. Opened in 2010, it offered Hudson River views, a spa named after Ivanka Trump and a location in one of New York's most fashionable neighborhoods. Trump promoted the property on his reality show The Apprentice.



In 2012, prosecutors in the Manhattan district attorney's office scrutinized the property's development as part of an investigation into whether Trump's children Ivanka and Donald Trump Jr. committed fraud by misleading condo buyers about the project, according to a report last month from ProPublica, WNYC and the New Yorker. District Attorney Cyrus Vance Jr. decided not to pursue charges.

In its early days, the hotel attracted Hollywood celebrities and many NBA teams. "When I stay here in New York, I'm at the Trump SoHo," Oklahoma City Thunder star Russell Westbrook told GQ in 2014, saying the hotel's luxe lobby had inspired his fashion designs.

But by this year, at least 11 of the 12 NBA teams that previously stayed at Trump SoHo had quit. Some cited logistical reasons. Others said they could not stay at a hotel with Trump's name on it.

"The president has seemingly made a point of dividing us as best he can," Golden State Warriors coach Steve Kerr told the Washington Post in an interview earlier this year. His team quit using Trump SoHo in 2016. "He continually offends people, and so people don't want to stay at his hotel," Kerr said. "It's pretty simple."

Trump SoHo hotel rates have fallen dramatically. Rooms are routinely offered online for below $300 a night. Luxury Manhattan hotels took in an average daily rate of $451 in the second quarter of this year, according to the accounting and consulting firm PWC.

The Trump Organization does have plans to expand its hotel business, targeting areas where Trump's political brand is more popular.

Those plans include two new, less-expensive brands of hotels called Scion and American Idea. But since those brands were announced in June, progress has been slow. The three discount hotels that were supposed to start the American Idea brand are still operating under their old names.

And at the site chosen for the first Scion hotel, in Cleveland, Mississippi, construction stopped weeks ago while Trump Organization and its partners reworked plans.

What Secrets Is Mueller Finding As He Investigates Trump's Shady Foreign Deals?-- Part III

[Last night Valley Girl outlined, in Parts I (here) and II (here), some of the corrupt business practices that have long been at the center of the Trump Organization's dealings with the former Soviet Union. This evening's segment is about Trump's shenanigans in Moscow itself... and in the midst of the 2016 presidential campaign.]

-by Valley Girl

Scanning the news this morning, I found this WaPo article. The Washington Post breaking news is: While Donald Trump was running for president in late 2015 and early 2016, his company was pursuing a plan to develop a massive Trump Tower in Moscow, according to several people familiar with the proposal and new records reviewed by Trump Organization lawyers.” The article goes on to mention Felix Sater and the Bayrock Group, among other principals. (remember that these names are just a Google search away.) OK, the fact that Trump was pursuing the idea of a Trump Tower in Moscow is news.

But far more damning as to Trump’s Russian connections are reports from May, 2017, which likewise report on Felix Sater and the Bayrock Group, and more. The damning information comes in May 2017 from ZEMBLA, a Dutch organization that specializes in producing documentaries for Dutch TV. I’d long ago watched their two-part documentary via youtube: ZEMBLA-- The dubious friends of Donald Trump: the Russians (part 1- 45 minutes) and ZEMBLA-- The dubious friends of Donald trump: King of Diamonds (part 2- 36 minutes).

In court, Trump, lying with impunity, pretended to not know Sater

Part 1 is discussed here, at Huff Post and at Salon. From Huff Po:

A ZEMBLA investigation suggests that the American real estate company Bayrock, through which Donald Trump constructed hotels and apartment complexes, siphoned off $1.5 million by setting up a corporate structure in the Netherlands in 2007. ZEMBLA discovered that the corporate construction was established on the advice of an external legal counsel, namely Bracewell & Giuliani, also known for Rudi Giuliani, former mayor of New York and Trump confidante. The ultimate beneficiary owners of the Dutch business construction: the director of Bayrock and the Khrapunov family from Kazakhstan. Head of the family is Viktor Khrapunov, a former mayor and governor from Kazakhstan, who has been accused of embezzling hundreds of millions of state assets. In 2013 the Khrapunov family bought three apartments in Trump SoHo: Bayrock and Donald Trump are owners of that hotel-condominium.

One of the Bayrock owners is the Russian born Felix Sater, Trump’s former business partner. Though Sater spent years trying to line up deals with Donald Trump’s real estate organization all over the world, Trump has denied knowing Sater. The two met in 2003 when Trump was looking to expand his business globally. Because Sater failed to divulge his criminal history to Trump, he became a liability, putting the president’s financial interest at substantial risk. Should civil or criminal misconduct be proven in the care of Bayrock, Trump could be found complicit, possibly costing him millions of dollars in fines and/or penalties. The president has announced he will get to the bottom of the matter, but documents from the Bayrock corporation show otherwise: Trump actually tried to benefit from the situation, even risking leverage from anyone who knew of his jeopardy.

Russian Mafia figure Felix Sater with shady business associate

And from Salon:

Nearly every newsworthy story about the White House this week (May 2017) has contained one common thread: Russia. Whether it involves President Donald Trump facing backlash for sharing highly classified information with Russian diplomats or encountering fallout from the firing of FBI Director James Comey amid the bureau’s investigation of Russian interference in the 2016 election with possible ties to Trump, his relationship with Russia is proving to be ever relevant.

In examining Trump’s business partners, the filmmakers encounter the Russian mafia, including business and personal connections to oligarchs in Russia. The documentary takes a close look at Trump’s connections to the country, starting with his first trip to Russia in the 1980s.

The Zembla filmmakers interview some of Trump’s controversial friends, a former CIA agent, fraud investigators and attorneys, as well as U.S. Sen. Sheldon Whitehouse, a Democrat representing Rhode Island.

In the film, Malcolm Nance, a former U.S. intelligence officer, discusses Trump’s tendency to shy away from negative assessments of Russians: “If you’re a gambling addict and you owe someone a lot of money, you will never insult your bookie,” Nance says.

Also read ZEMBLA post from May 3, 2017, about part 1 of their documentary. Part 2 of the Zembla documentary is discussed at Alternet on May 15, 2017:

Dutch Documentary Part II: Blood on Trump and Kushner's Hands from Deals with Africa War Zone Diamond Mines Lev Leviev's diamond empire stretches from Angola to Moscow, London and Amsterdam.

The Trump family’s business partners have blood on their hands owing to deals with notorious diamond brokers who operate mines in war torn Africa and own jewelry stores in London, Moscow and Amsterdam.

That's the premise in Part Two of a documentary series by the Dutch TV network Zembla, The Dubious Friends of Donald Trump: King of Diamonds. It shows how the U.S. president and his son-in-law, Jared Kushner, have apparent partnerships with an Israeli billionaire who is tied to “trading in blood diamonds,” as the film's description notes, and how this relationship overlaps with power circles in Russia reaching President Vladimir Putin and Russian oligarchs.

“In the second part of our program about Donald Trump’s controversial friends, we will set our sights on the Israeli billionaire Lev Leviev, who is controversial because he is suspected of trading in blood diamonds,” says the documentary's YouTube summary. “He is one of the world’s biggest diamond traders and owns prestigious stores in New York and Moscow, but he is also the owner of Siebel, the Netherlands’ biggest jewelry chain. Leviev has ties with Russian president Putin, U.S. president Trump and his son-in-law and senior adviser Jared Kushner. Trump, however, claims he hardly knows this ‘King of Diamonds.’ Zembla investigates Lev Leviev’s business empire.”

The first part of the documentary series focused on Trump’s ties to Russian mobsters and oligarchs. That eye-opening report showed how Trump nurtured deals with oligarchs seeking to get their riches out of Russia and revealed how Trump signed off on international money-laundering schemes, including one set up by the law firm of ex-New York City mayor Rudy Giuliani. In the second part, we see how Trump is willing to make deals with anyone who can offer him a return, regardless of the suffering involved. The documentary also shines a light on Kushner’s relationships, which blend business, politics and religion.

There are a half-dozen takeaways from Part II, said James S. Henry, a corporate lawyer-turned-financial investigative reporter who has written lengthy exposés of Trump’s Russian connections and is featured in the film.

“I think the real news and interest in Part Two involves the exposure of apparent Trump partner Leviev's reported deep involvement in (a) trafficking in Angolan blood diamonds by way of his special arrangement with Eduardo dos Santos and family, the country's long-time dictator and chief kleptocrat; (b) Leviev's close ties to Putin; (c) Leviev's extensive business dealings with Trump's son-in-law Jared Kushner; (d) the extensive financial support that both Leviev and Kushner have given to extremist Israel settlers—support that appears to be inconsistent with the role that Kushner has apparently been given by the Trump administration with respect to the peace process; and (e) Leviev's alleged extensive use of non-transparent Dutch and other offshore holding companies to facilitate all these dodgy practices,” Henry wrote in an email to AlterNet.

Sander Rietveld, the documentary’s lead reporter, said Part Two is relevant for American audiences and lawmakers because it raises questions about Trump’s business relationships that can only be answered by examining his tax returns. Congressional Democrats have said Trump’s returns must be fully released before any consideration of federal tax reform.



“I think this is an excellent example of why President Trump needs to disclose his tax returns,” Rietveld said in an email. “Only when he does so, we'll know if and how he was engaged in a business deal with Lev Leviev [beyond the public relations materials shown in the film]. Given the extensive business empire of Leviev, Trump and he could have been together in real estate in the U.S., in Russia or in Eastern Europe. Or in some kind of diamond operation. According to well-established experts and investigators these kinds of operations in Africa and specifically in Angola are related to severe human rights abuses committed by security firms hired by mining companies.”

The film also examines the business circles Kushner travels in, showing overlapping ties between conservative Jewish groups and clerics and politically powerful Russians and Israelis, including Putin and Benjamin Netanyahu.

“The overlap of business and ideology and politics is another takeaway from this story,” Rietveld said. “Jared Kushner, the president's man for the Middle East, and Leviev's company AFI USA not only made a multimillion-dollar deal; they also seem to share a political view on Israel and the Palestinian territories. Both of them have been active in supporting settlements on the West Bank, which according to international law are illegal. And both of them have a very good relationship with the current, very right-wing Israeli government, and more personally with Bibi Netanyahu.”

For my money (that’s an idiom) part 2 of the documentary is by far the most explosive, and provides damning information about Jared Kushner and his “circle of friends”



Here’s another twist from the New York Times today.  

A business associate of President Trump promised in 2015 to engineer a real estate deal with the aid of the president of Russia, Vladimir V. Putin, that he said would help Mr. Trump win the presidency.

The associate, Felix Sater, wrote a series of emails to Mr. Trump’s lawyer, Michael Cohen, in which he boasted about his ties to Mr. Putin and predicted that building a Trump Tower in Moscow would highlight Mr. Trump’s savvy negotiating skills and be a political boon to his candidacy.

“Our boy can become president of the USA and we can engineer it,” Mr. Sater wrote in an email. “I will get all of Putins team to buy in on this, I will manage this process.”

The emails show that, from the earliest months of Mr. Trump’s campaign, some of his associates viewed close ties with Moscow as a political advantage. Those ties are now under investigation by the Justice Department and multiple congressional committees.

American intelligence agencies have concluded that the Russian government interfered with the 2016 presidential election to try to help Mr. Trump. Investigators want to know whether anyone on Mr. Trump’s team was part of that process.

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.

“To be clear, the Trump Organization has never had any real estate holdings or interests in Russia,” the Trump Organization said Monday in a statement.

The Trump Organization on Monday turned over emails to the House Intelligence Committee, which is investigating Russian meddling in the presidential election and whether anyone in Mr. Trump’s campaign was involved. Some of the emails were obtained by The Times.

None of the emails obtained by The Times include any responses from Mr. Cohen to Mr. Sater’s messages.

In a statement on Monday, Mr. Cohen suggested that he viewed Mr. Sater’s comments as puffery. “He has sometimes used colorful language and has been prone to ‘salesmanship,’” the statement said. “I ultimately determined that the proposal was not feasible and never agreed to make a trip to Russia.”

Mr. Sater was a broker for the Trump Organization at the time of his messages to Mr. Cohen, which means he was paid to deliver real estate deals and had an incentive to overstate his business-making acumen. He presents himself in his emails as so influential in Russia that he helped arrange a 2006 trip that Mr. Trump’s daughter, Ivanka, took to Moscow.

“I arranged for Ivanka to sit in Putins private chair at his desk and office in the Kremlin,” he said.

Ms. Trump said she had no involvement in the discussions about the Moscow deal. In a statement, she said that during the 2006 trip, she took “a brief tour of Red Square and the Kremlin” as a tourist. She said it is possible she sat in Mr. Putin’s chair during that tour but she did not recall it. “I have never met President Vladimir Putin,” she said.

The story is worthy, but really doesn’t give away much about Felix Sater. In fact, Sater is/ was a Russian Syndicate Crime Boss, and is part of a Moscow-organized crime family. Sater becomes an FBI informant. The American government covers up his fraud, and Sater’s trial transcripts are closed. In Congressional hearings, the then FBI Director James Comey has “no comment” to questions about Sater.

Watch part 1 of ZEMBLA’s investigative report below. But skip ahead to 16:03 and listen until 24:05. The information above is in this part.

I'd like to know exactly when Felix Sater became an FBI informant. That may be unknowable. But, the question is: were his emails sent before or after that. Over and out!