Wednesday, March 29, 2017

A Right Wing Fifth Column In Brighton Beach? West Hollywood? Bustleton?

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Growing up in Brooklyn I had never met a Republican. And they didn't run for office where I lived either. Republicans were sleaze-ball used car salesmen like Nixon. They were in other parts of the country, not anywhere near Kings Highway. When Senator John Kennedy needed to demonstrate the enthusiasm hard core liberal communities had for him-- he was a kind of conservative senator for a Democrat-- he showed up during the 1960 campaign at Dubrow's on Kings Highway, a couple blocks from my house on 17th Street and Avenue P. My mother took me to see him. The crowd was adulatory. (Just 12 years old, I got stepped on by a police horse and got carried into Dubrows, a casualty of war, to be fussed over by the future president. There were no cell phones then, let alone cell phones that could have captured the moment for a then non-existent Facebook page.) I don't know how my old neighborhood voted in November but it wouldn't be out-of-bounds to speculate that Kennedy beat Nixon in the realm of 80-20%, maybe better. Kennedy only won New York state by 5 points. But he won NYC 62.62% to 37.04%. Brooklyn was his second biggest county in the state (after the Bronx)-- 66.16% to 33.51%. And my part of Brooklyn-- Homecrest, Madison, Midwood, Ocean Parkway South, West Brighton, Sheepshead Bay, Brighton Beach-- was way more Democratic, way more liberal, than the rest of the borough.

Jesus, has that changed! I did a post about it a few weeks ago. Russians started moving into Brighton Beach while I was still, more or less, living in New York, just a trickle at first, but they eventually took over the area and spread out from there. Bye-bye, heart of liberal Brooklyn. My old stomping ground all went for Trump. Brooklyn was the heart of Clinton-territory. The borough gave her a solid 595,086 (79.25%) win over Trump's sad 133,653 (17.8%). Not so my ancestral-- now Russian-dominated-- part of Brooklyn:
Ocean Parkway South- Trump- 71.15%
West Brighton- Trump- 68.77%
Homecrest- Trump- 66.56%
Midwood- Trump- 60.62%
Brighton Beach- Trump- 59.35%
Madison- Trump- 56.35%
Sheepshead Bay- Trump- 50.53%
Makes me want to barf. And, by the way, although he had come to America (the Bronx) 5 decades earlier, my grandfather was a Russian too-- a Russian socialist, like many of the Russian immigrants who came to America at the turn of the century (the 20th century, not this one). These weren't conservatives; they were the ones who powered the labor movement in New York. The biggest concentrations of Russians in America today still live in Brooklyn, but have spread out to Bergen County, New Jersey, as well as to West Hollwood, Miami, Chicago, Alaska, Dallas, Houston, Philly, Baltimore and the Silicon Valley area.

Olga Khazan, writing for The Atlantic in April of 2016, long before Trump was president, penned an article about how specifically the Russian Jewish community is, Why Soviet Refugees Aren't Buying Sanders' Socialism. My grandfather's experience in Czarist Russia-- a fascist dictatorship-- colored his American politics. Khazan write soft Russians who's bitter experience of the Soviet Union-- which they foolishly imagine is what Bernie or the Democrats are advocating-- colors their American politics. They hate big government-- just wait til they figure out what Señor Trumpanzee has in mind-- and loath the idea of a workers revolution. Surprising that Jews are too incapable of critical thought as it be unable to differentiate between authoritarianism and socialism. But... that's their sad life's experience. Recent Russian Jewish immigrants voted overwhelming for Trump. In the primaries, the ones who didn't like Trump were hung ho on Cruz. They don't grok the Trump-Putin connection.

I found a degree of comfort of sorts-- from the changing voted patterns of my old neighborhood-- Monday when I read a piece in Politico by Malcolm Burnley, Why Philly's Russians Are Crazy For Trump. Turns out, like Brooklyn's Brighton Beach, they've got their own "Little Odessa" (Bustleton and Somerto) too.
Not since the end of the Cold War has there been quite such a miasma of suspicion and intrigue about Russia and Russians. The news brims with murky allegations of computer hacking, election meddling and influence peddling, all of which seems to demand assertions of allegiance to one side or the other. But for many of the estimated 26,000 Russian-speaking people in Philadelphia (not to mention the more than 900,000 across the country) the us-and-them nature of the political debate in Washington doesn’t really apply. Here, in a self-created cocoon of familiar cultural touchstones, I detected a kind of dual nationalism among the residents-- a manifest love for countries that once were home and an equal adoration for the populist president many of them voted for.

“Trump is a fighter, a negotiator, a successful businessman. Four times he go through the bankruptcy. He understand how the world works from a business perspective,” says Alexander Shapiro, who came to the states in the early-1990s from what’s now Ukraine. “During the campaign, he ran against governors and senators. He beat everybody like babies.”

Hearing how jazzed residents sounded about Trump’s first 60 days in office, I half expected to find shelves laden with Russian nesting dolls featuring Barron, Ivanka, Don Jr. and the whole gang. There was nothing so brazen inside the Knizhnik gift store, a mom-and-pop-looking place where I was repeatedly reminded that the inventory was “all Russian-- all.” There was, however, a Russian biography of Trump prominently displayed. It was the same book that became a popular giveaway at Trump-friendly election watch parties in Moscow, the one whose title has been dubbed in English as “The Black Swan.”

It’s an apt metaphor for how Bustleton and Somerton fit into Philadelphia writ large. Meaning, hardly at all. In a city where registered Democrats outnumber Republicans seven to one, and the local GOP has become something of a joke, these neighborhoods are as close to a conservative bastion as you’ll find. It’s been that way for decades. The Far Northeast, as it’s known in local parlance, which borders on the swing-state suburbs of Bucks County, has a long history of opposition to progressivism, on everything from taxation to school desegregation. In 1983, a Pennsylvania state senator representing the area introduced a bill to have Northeast Philadelphia secede from the city. In part, this was perceived to be retribution against the city’s first African-American mayor, a dynamic that evokes the subtext to Trump’s Make America Great American movement. “Whether they are Russian newcomers or older generations, there is a nationalist theme running throughout the political mindset of Northeast Philadelphians, especially those who lean more conservative,” says Matt Smalarz, a professor at Manor College in the Philadelphia suburbs and a native of the Northeast whose dissertation focused on the area he grew up in. “You won’t go to any other part of Philadelphia where there are more American flags being flown.”

...In his campaign speeches, Trump leveraged a profound feeling of abandonment being experienced by white working-class voters, as if the government had cast them aside. You don’t have be an unemployed steelworker from western Pennsylvania to share that commonality. In fact... the population hailing from ex-Soviet states might be predisposed to an up-by-the-bootstraps message like that of the Trump campaign, and a drain-the-swamp message, too. “In my family, we paid for everything with our hard work and great attitude toward this country,” she says. “Eastern Europeans are not so much depend on public benefits. We’re not waiting for dollars to fall from the trees.”

After all, many of these immigrants ended up here, during the 1990s, seeking freedom from ethnic or religious persecution in their respective states. “Most of the Russians here are almost libertarians,” says Andre Krug, president and CEO of KleinLife, a senior-citizen program that caters to many Russian-speaking adults. “They came from a country where the country dictated how they were going to live their lives, so when they came to this country, they feel like the less government does, the better they’re going to be ultimately.” Their ideology-- to draw a generality-- is more like an attitude of rugged individualism, Krug says. In other words, one that is innately American but born of life in the former Soviet Union. In the end, Trump’s wealthy upbringing and his career of questionable business deals didn’t undermine the essential appeal of his well-practiced message of personal triumph. Last November, Donald Trump narrowly lost Philadelphia’s 58th ward, which encompasses Bustleton and Somerton, but garnered 1,464 more votes than Romney in 2012. Pennsylvania was decided by less than 45,000 votes.

...Despite a palpable dislike for Putin among most of the foreign-born Philadelphians I spoke to, there was concurrent praise of Trump for displaying what might be called Putin-like qualities: His unflinching projection of strength. And his intuition-- what Shapiro calls “guts.” And most of all, Trump’s promise of bygone economic enrichment for all Americans. The MAGA message can be a personal one for immigrants like Shapiro, who arrived during America’s relative prosperity during the 1990s. This pink-cloud period in our recent history happened to be his first taste of the West. “From 1996 until when the [World Trade Towers] collapsed, it was communism,” Shapiro says, meaning, everybody was reaping the spoils. “It was a very good time. Everybody happy. People buy houses. Real estate booming. Stock market booming. That’s why Trump won. He wants to make America great again. He wants to return to old times when people were happy.”
Have you ever tasted a maroon, not to be confused with a coconut macaroon?


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Wednesday, April 11, 2018

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

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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?


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Thursday, August 24, 2017

Russian Immigrants Deny Their Love For Trump Has Anything To Do With Putin

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Because I grew up in south Brooklyn, I've watched with special dismay as the old neighborhoods around here I lived-- hard core, deep Blue neighborhoods-- have continued supporting Trump. Although Brooklyn went for Clinton 595,086 (79.25%) to 133,653 (17.8%), the neighborhoods I grew up in and near where i grew up in-- which are filled with Russian Jewish immigrants now-- went for Trump:
Ocean Parkway South- Trump- 71.15%
West Brighton- Trump- 68.77%
Homecrest- Trump- 66.56%
Midwood- Trump- 60.62%
Brighton Beach- Trump- 59.35%
Lindenwood-Howard Beach- Trump- 58.99%
Madison- Trump- 56.35%
Sheepshead Bay- Trump- 50.53%
Sickening. And this isn't the only part of the country that made this kind of flip. There are also significant concentrations of relatively recent Russian immigrants in other Democratic areas where there were neighborhoods that bizarrely went for Trump: Bergen County, New Jersey, as well as West Hollwood, Miami, Chicago, Alaska, Dallas, Houston, Philly, Baltimore and the Silicon Valley area. Yesterday, Philadelphia Inquirer reporter Oliver Bilger, on loan from Berlin's Der Tagesspiegel, took a stab at explaining the phenomenon, since it is also uncomfortably noticeable in Northeast Philly, home to a large number of Russian immigrants.
Along Bustleton Avenue, caviar and pelmeni (meat-filled dumplings) are sold in the supermarkets. Signs in Cyrillic letters advertise shoe stores, pharmacies, and hairdressers... “Everything will be OK” is the common refrain among saleswomen in local stores when asked about Trump. “He can change the country for the benefit of the people.”

The word Russian for this community is not entirely correct. Many immigrants and their families came from Russia, but even more from Ukraine, or Georgia, Uzbekistan, Kazakhstan, Belarus, and other former Soviet republics. Some began arriving in the 1970s, when Moscow lifted the Iron Curtain a little bit and allowed Jews to emigrate. What connects the immigrants from all the former Soviet republics is their common history and language.

Many of them voted for Trump and continue to support him despite his low approval ratings and the turmoil of his first six months in office. As for the allegations of collusion, many Russian Americans dismiss them as part of a conspiracy, disruptive actions by Democrats and the media.



“Trump was presumed guilty and now they are trying to find proof,” says Diane Glikman, 45, host of a Russian-language program on the internet. She represents a view among many along Bustleton that Trump could succeed politically if only given a chance.

I lived in Moscow for a few years and I also know the views of many immigrants from the former Soviet Union in Germany, my home country. There, conservative views predominate among the immigrants, especially among older citizens. More than a few praise Putin as a strong leader and a counterweight to the West, a person who represents their conservative views.

None of the people I spoke to in Philadelphia praised Putin. Gary Vulakh, 57, who came from Ukraine almost 40 years ago and runs a small jewelry repair shop, calls the Russian leader a “terrorist.” Others said the ongoing Russia hacking investigation makes Putin seem stronger than he is. “He is not so powerful,” says Malvina Yakobi, 57, the editorial director of the Russian-English newspaper Philadelphia News. Few believe the Kremlin could meddle in a U.S. election. “Could they do anything like that?” Vulakh wonders. “Everything is done by the Democrats to impeach Trump.”

The Russians in Philadelphia may not fully support Trump’s friendliness toward Putin, but they still back the U.S. president overall, roughly for four reasons.

First, they wish for good relations between the United States and Russia, which they believe will promote peaceful cohabitation and bring more stability to the world.

Second, many separate Trump’s admiration for Putin from his promises on domestic issues. Russian Americans, Yakobi explains, are “the biggest American patriots.” Having escaped the repressive Soviet Union, U.S. values such as freedom and justice are of the utmost importance. So, naturally, they want their new country to succeed.

Third, they like having a successful businessman in the White House instead of just another politician. They want to see a break from politics as usual and an establishment-- what Yakobi calls the “corrupted” administration of President Barack Obama-- that they see as ignoring the needs of too many in the country.

Fourth, though many themselves were newcomers to the United States, they like a president who promises to stop uncontrolled and illegal immigration. “We waited five or six years to get citizenship,” says Glikman. They earned their blue passports by learning the language and working hard, even in jobs that were far below their education level. They believe, as Glikman says, that Trump “is not against immigrants when they work hard.”

Though the community often leans Republican at election time-- Democrats are seen as too “socialist,” like the government many Russian Americans fled-- it is not monolithic in its support for the current president. In some cases, a vote for Trump was more a vote against Hillary Clinton. As Yakobi, who came to the United States from Georgia, says, last November’s election did not leave “a great choice.” And even though the president may be a role model for achieving the American dream, not all are on board. “Even within families, there are very different opinions,” Glikman notes. “The Russian community is split up … like the rest of the country.”

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Friday, July 14, 2017

How Deep In Is Trump With The Russian Mafia? And Why Did No One Warn The Voters Before 2016?

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Is there anything new that can be said about Organized Crime? It's been an integral part of his story from the beginning. And he runs his own crime family like a Mafia Don. People openly call his slow-witted eldest son "Fredo" and virtually all of his attorneys-- from Roy Cohn right up to the scumbags repping him today-- are sleazy criminal characters who work for mobsters, oligarchs and other anti-social types.



The brand new New Republic, in a cover story called Married to the Mob, highlights just one area of Señor Tumpanzee's criminality-- his long-standing and very much burgeoning relationship with the worst and most vicious Mafia in the history of the world: the Russian 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.”

Based entirely on the extensive public record, the piece offers the most comprehensive overview of the deep debt that the president owes the Russian mafia. “The extent of Trump’s ties to the Russian mafia-- and the degree to which he relied on them for his entire business model-- is striking,” says Eric Bates, editor of the New Republic. “After reading this story, it should come as no surprise to anyone that the president continues to exhibit a deep loyalty to the world of shady Russian operatives who have invested vast sums in his properties.”
Unger reminds us that realtor Trump was always eager to accommodate Russian mobsters who in the 80's were beginning to invest in high-end real estate, which offered an ideal vehicle to launder money from their criminal enterprises. "During the ’80s and ’90s, we in the U.S. government repeatedly saw a pattern by which criminals would use condos and high-rises to launder money," says Jonathan Winer, a deputy assistant secretary of state for international law enforcement in the Clinton administration. "It didn’t matter that you paid too much, because the real estate values would rise, and it was a way of turning dirty money into clean money. It was done very systematically, and it explained why there are so many high-rises where the units were sold but no one is living in them." When Trump Tower was built, as David Cay Johnston reports in The Making of Donald Trump, it was only the second high-rise in New York that accepted anonymous buyers.
The very nature of Trump’s businesses-- all of which are privately held, with few reporting requirements-- makes it difficult to root out the truth about his financial deals. And the world of Russian oligarchs and organized crime, by design, is shadowy and labyrinthine. For the past three decades, state and federal investigators, as well as some of America’s best investigative journalists, have sifted through mountains of real estate records, tax filings, civil lawsuits, criminal cases, and FBI and Interpol reports, unearthing ties between Trump and Russian mobsters like Mogilevich. To date, no one has documented that Trump was even aware of any suspicious entanglements in his far-flung businesses, let alone that he was directly compromised by the Russian mafia or the corrupt oligarchs who are closely allied with the Kremlin. So far, when it comes to Trump’s ties to Russia, there is no smoking gun.

But even without an investigation by Congress or a special prosecutor, there is much we already know about the president’s debt to Russia. A review of the public record reveals a clear and disturbing pattern: Trump owes much of his business success, and by extension his presidency, to a flow of highly suspicious money from Russia. Over the past three decades, at least 13 people with known or alleged links to Russian mobsters or oligarchs have owned, lived in, and even run criminal activities out of Trump Tower and other Trump properties. Many used his apartments and casinos to launder untold millions in dirty money. Some ran a worldwide high-stakes gambling ring out of Trump Tower-- in a unit directly below one owned by Trump. Others provided Trump with lucrative branding deals that required no investment on his part. Taken together, the flow of money from Russia provided Trump with a crucial infusion of financing that helped rescue his empire from ruin, burnish his image, and launch his career in television and politics. “They saved his bacon,” says Kenneth McCallion, a former assistant U.S. attorney in the Reagan administration who investigated ties between organized crime and Trump’s developments in the 1980s.

It’s entirely possible that Trump was never more than a convenient patsy for Russian oligarchs and mobsters, with his casinos and condos providing easy pass-throughs for their illicit riches. At the very least, with his constant need for new infusions of cash and his well-documented troubles with creditors, Trump made an easy “mark” for anyone looking to launder money. But whatever his knowledge about the source of his wealth, the public record makes clear that Trump built his business empire in no small part with a lot of dirty money from a lot of dirty Russians-- including the dirtiest and most feared of them all.

...The money, illicit and otherwise, began to rain in earnest after the Soviet Union fell in 1991. President Boris Yeltsin’s shift to a market economy was so abrupt that cash-rich gangsters and corrupt government officials were able to privatize and loot state-held assets in oil, coal, minerals, and banking. Yeltsin himself, in fact, would later describe Russia as “the biggest mafia state in the world.” After Vladimir Putin succeeded Yeltsin as president, Russian intelligence effectively joined forces with the country’s mobsters and oligarchs, allowing them to operate freely as long as they strengthen Putin’s power and serve his personal financial interests. According to James Henry, a former chief economist at McKinsey & Company who consulted on the Panama Papers, some $1.3 trillion in illicit capital has poured out of Russia since the 1990s.

At the top of the sprawling criminal enterprise was Semion Mogilevich. Beginning in the early 1980s, according to the FBI, the short, squat Ukrainian was the key money-laundering contact for the Solntsevskaya Bratva, or Brotherhood, one of the richest criminal syndicates in the world. Before long, he was running a multibillion-dollar worldwide racket of his own. Mogilevich wasn’t feared because he was the most violent gangster, but because he was reputedly the smartest. The FBI has credited the “brainy don,” who holds a degree in economics from Lviv University, with a staggering range of crimes. He ran drug trafficking and prostitution rings on an international scale; in one characteristic deal, he bought a bankrupt airline to ship heroin from Southeast Asia into Europe. He used a jewelry business in Moscow and Budapest as a front for art that Russian gangsters stole from museums, churches, and synagogues all over Europe. He has also been accused of selling some $20 million in stolen weapons, including ground-to-air missiles and armored troop carriers, to Iran. “He uses this wealth and power to not only further his criminal enterprises,” the FBI says, “but to influence governments and their economies.”

In Russia, Mogilevich’s influence reportedly reaches all the way to the top. In 2005, Alexander Litvinenko, a Russian intelligence agent who defected to London, recorded an interview with investigators detailing his inside knowledge of the Kremlin’s ties to organized crime. “Mogilevich,” he said in broken English, “have good relationship with Putin since 1994 or 1993.” A year later Litvinenko was dead, apparently poisoned by agents of the Kremlin.

Mogilevich’s greatest talent, the one that places him at the top of the Russian mob, is finding creative ways to cleanse dirty cash. According to the FBI, he has laundered money through more than 100 front companies around the world, and held bank accounts in at least 27 countries. And in 1991, he made a move that led directly to Trump Tower. That year, the FBI says, Mogilevich paid a Russian judge to spring a fellow mob boss, Vyachelsav Kirillovich Ivankov, from a Siberian gulag. If Mogilevich was the brains, Ivankov was the enforcer-- a vor v zakone, or “made man,” infamous for torturing his victims and boasting about the murders he had arranged. Sprung by Mogilevich, Ivankov made the most of his freedom. In 1992, a year after he was released from prison, he headed to New York on an illegal business visa and proceeded to set up shop in Brighton Beach.

In Red Mafiya, his book about the rise of the Russian mob in America, investigative reporter Robert I. Friedman documented how Ivankov organized a lurid and violent underworld of tattooed gangsters. When Ivankov touched down at JFK, Friedman reported, he was met by a fellow vor, who handed him a suitcase with $1.5 million in cash. Over the next three years, Ivankov oversaw the mob’s growth from a local extortion racket to a multibillion-dollar criminal enterprise. According to the FBI, he recruited two “combat brigades” of Special Forces veterans from the Soviet war in Afghanistan to run the mafia’s protection racket and kill his enemies.

Like Mogilevich, Ivankov had a lot of dirty money he needed to clean up. He bought a Rolls-Royce dealership that was used, according to the New York Times, “as a front to launder criminal proceeds.” The FBI concluded that one of Ivankov’s partners in the operation was Felix Komarov, an upscale art dealer who lived in Trump Plaza on Third Avenue. Komarov, who was not charged in the case, called the allegations baseless. He acknowledged that he had frequent phone conversations with Ivankov, but insisted the exchanges were innocent. “I had no reason not to call him,” Komarov told a reporter.

The feds wanted to arrest Ivankov, but he kept vanishing. “He was like a ghost to the FBI,” one agent recalls. Agents spotted him meeting with other Russian crime figures in Miami, Los Angeles, Boston, and Toronto. They also found he made frequent visits to Trump Taj Mahal in Atlantic City, which mobsters routinely used to launder huge sums of money. In 2015, the Taj Mahal was fined $10 million-- the highest penalty ever levied by the feds against a casino-- and admitted to having “willfully violated” anti-money-laundering regulations for years.




The FBI also struggled to figure out where Ivankov lived. “We were looking around, looking around, looking around,” James Moody, chief of the bureau’s organized crime section, told Friedman. “We had to go out and really beat the bushes. And then we found out that he was living in a luxury condo in Trump Tower.”

...Throughout the 1990s, untold millions from the former Soviet Union flowed into Trump’s luxury developments and Atlantic City casinos. But all the money wasn’t enough to save Trump from his own failings as a businessman. He owed $4 billion to more than 70 banks, with a mind-boggling $800 million of it personally guaranteed. He spent much of the decade mired in litigation, filing for multiple bankruptcies and scrambling to survive. For most developers, the situation would have spelled financial ruin. But fortunately for Trump, his own economic crisis coincided with one in Russia.

In 1998, Russia defaulted on $40 billion in debt, causing the ruble to plummet and Russian banks to close. The ensuing financial panic sent the country’s oligarchs and mobsters scrambling to find a safe place to put their money. That October, just two months after the Russian economy went into a tailspin, Trump broke ground on his biggest project yet. Rising to 72 stories in midtown Manhattan, Trump World Tower would be the tallest residential building on the planet. Construction got underway in 1999-- just as Trump was preparing his first run for the presidency on the Reform Party ticket-- and concluded in 2001. As Bloomberg Businessweek reported earlier this year, it wasn’t long before one-third of the units on the tower’s priciest floors had been snatched up-- either by individual buyers from the former Soviet Union, or by limited liability companies connected to Russia. “We had big buyers from Russia and Ukraine and Kazakhstan,” sales agent Debra Stotts told Bloomberg.

Among the new tenants was Eduard Nektalov, a diamond dealer from Uzbekistan. Nektalov, who was being investigated by a Treasury Department task force for mob-connected money laundering, bought a condo on the seventy-ninth floor, directly below Trump’s future campaign manager, Kellyanne Conway. A month later he sold his unit for a $500,000 profit. The following year, after rumors circulated that Nektalov was cooperating with federal investigators, he was shot down on Sixth Avenue.

Trump had found his market. After Trump World Tower opened, Sotheby’s International Realty teamed up with a Russian real estate company to make a big sales push for the property in Russia. The “tower full of oligarchs,” as Bloomberg called it, became a model for Trump’s projects going forward. All he needed to do, it seemed, was slap the Trump name on a big building, and high-dollar customers from Russia and the former Soviet republics were guaranteed to come rushing in. Dolly Lenz, a New York real estate broker, told USA Today that she sold some 65 units in Trump World Tower to Russians. “I had contacts in Moscow looking to invest in the United States,” Lenz said. “They all wanted to meet Donald.”

To capitalize on his new business model, Trump struck a deal with a Florida developer to attach his name to six high-rises in Sunny Isles, just outside Miami. Without having to put up a dime of his own money, Trump would receive a cut of the profits. “Russians love the Trump brand,” Gil Dezer, the Sunny Isles developer, told Bloomberg. A local broker told the Washington Post that one-third of the 500 apartments he’d sold went to “Russian-speakers.” So many bought the Trump-branded apartments, in fact, that the area became known as “Little Moscow.”

...During his collaboration with Bayrock, Trump also became close to the man who ran the firm’s daily operations--a twice-convicted felon with family ties to Semion Mogilevich. In 1974, when he was eight years old, Felix Sater and his family emigrated from Moscow to Brighton Beach. According to the FBI, his father-- who was convicted for extorting local restaurants, grocery stores, and a medical clinic-- was a Mogilevich boss. Sater tried making it as a stockbroker, but his career came to an abrupt end in 1991, after he stabbed a Wall Street foe in the face with a broken margarita glass during a bar fight, opening wounds that required 110 stitches. (Years later, in a deposition, Trump downplayed the incident, insisting that Sater “got into a barroom fight, which a lot of people do.”) Sater lost his trading license over the attack, and served a year in prison.

In 1998, Sater pleaded guilty to racketeering-- operating a “pump and dump” stock fraud in partnership with alleged Russian mobsters that bilked investors of at least $40 million. To avoid prison time, Sater turned informer. But according to the lawsuit against Bayrock, he also resumed “his old tricks.” By 2003, the suit alleges, Sater controlled the majority of Bayrock’s shares-- and proceeded to use the firm to launder hundreds of millions of dollars, while skimming and extorting millions more. The suit also claims that Sater committed fraud by concealing his racketeering conviction from banks that invested hundreds of millions in Bayrock, and that he threatened “to kill anyone at the firm he thought knew of the crimes committed there and might report it.” In court, Bayrock has denied the allegations, which Sater’s attorney characterizes as “false, fabricated, and pure garbage.”

By Sater’s account, in sworn testimony, he was very tight with Trump. He flew to Colorado with him, accompanied Donald Jr. and Ivanka on a trip to Moscow at Trump’s invitation, and met with Trump’s inner circle “constantly.” In Trump Tower, he often dropped by Trump’s office to pitch business ideas-- “just me and him.”

Trump seems unable to recall any of this. “Felix Sater, boy, I have to even think about it,” he told the Associated Press in 2015. Two years earlier, testifying in a video deposition, Trump took the same line. If Sater “were sitting in the room right now,” he swore under oath, “I really wouldn’t know what he looked like.” He added: “I don’t know him very well, but I don’t think he was connected to the mafia.”

Trump and his lawyers say that he was unaware of Sater’s criminal past when he signed on to do business with Bayrock. That’s plausible, since Sater’s plea deal in the stock fraud was kept secret because of his role as an informant. But even after the New York Times revealed Sater’s criminal record in 2007, he continued to use office space provided by the Trump Organization. In 2010, he was even given an official Trump Organization business card that read: FELIX H. SATER, SENIOR ADVISOR TO DONALD TRUMP.




Sater apparently remains close to Trump’s inner circle. Earlier this year, one week before National Security Advisor Michael Flynn was fired for failing to report meetings with Russian officials, Trump’s personal attorney reportedly hand-delivered to Flynn’s office a “back-channel plan” for lifting sanctions on Russia. The co-author of the plan, according to the Times: Felix Sater.

In the end, Trump’s deals with Bayrock, like so much of his business empire, proved to be more glitter than gold. The international projects in Russia and Poland never materialized. A Trump tower being built in Fort Lauderdale ran out of money before it was completed, leaving behind a massive concrete shell. Trump SoHo ultimately had to be foreclosed and resold. But his Russian investors had left Trump with a high-profile property he could leverage. The new owners contracted with Trump to run the tower; as of April, the president and his daughter Ivanka were still listed as managers of the property. In 2015, according to the federal financial disclosure reports, Trump made $3 million from Trump SoHo.

In April 2013, a little more than two years before Trump rode the escalator to the ground floor of Trump Tower to kick off his presidential campaign, police burst into Unit 63A of the high-rise and rounded up 29 suspects in two gambling rings. The operation, which prosecutors called “the world’s largest sports book,” was run out of condos in Trump Tower-- including the entire fifty-first floor of the building. In addition, unit 63A-- a condo directly below one owned by Trump-- served as the headquarters for a “sophisticated money-laundering scheme” that moved an estimated $100 million out of the former Soviet Union, through shell companies in Cyprus, and into investments in the United States. The entire operation, prosecutors say, was working under the protection of Alimzhan Tokhtakhounov, whom the FBI identified as a top Russian vor closely allied with Semion Mogilevich. In a single two-month stretch, according to the federal indictment, the money launderers paid Tokhtakhounov $10 million.

Tokhtakhounov, who had been indicted a decade earlier for conspiring to fix the ice-skating competition at the 2002 Winter Olympics, was the only suspect to elude arrest. For the next seven months, the Russian crime boss fell off the radar of Interpol, which had issued a red alert. Then, in November 2013, he suddenly appeared live on international television-- sitting in the audience at the Miss Universe pageant in Moscow. Tokhtakhounov was in the VIP section, just a few seats away from the pageant owner, Donald Trump.

After the pageant, Trump bragged about all the powerful Russians who had turned out that night, just to see him. “Almost all of the oligarchs were in the room,” he told Real Estate Weekly. Contacted by Mother Jones, Tokhtakhounov insisted that he had bought his own ticket and was not a VIP. He also denied being a mobster, telling the New York Times that he had been indicted in the gambling ring because FBI agents “misinterpreted his Russian slang” on their Trump Tower wiretaps, when he was merely placing $20,000 bets on soccer games.

Both the White House and the Trump Organization declined to respond to questions for this story. On the few occasions he has been questioned about his business entanglements with Russians, however, Trump has offered broad denials. “I tweeted out that I have no dealings with Russia,” he said at a press conference in January, when asked if Russia has any “leverage” over him, financial or otherwise. “I have no deals that could happen in Russia, because we’ve stayed away. And I have no loans with Russia. I have no loans with Russia at all.” In May, when he was interviewed by NBC’s Lester Holt, Trump seemed hard-pressed to think of a single connection he had with Russia. “I have had dealings over the years where I sold a house to a very wealthy Russian many years ago,” he said. “I had the Miss Universe pageant-- which I owned for quite a while-- I had it in Moscow a long time ago. But other than that, I have nothing to do with Russia.”

But even if Trump has no memory of the many deals that he and his business made with Russian investors, he certainly did not “stay away” from Russia. For decades, he and his organization have aggressively promoted his business there, seeking to entice investors and buyers for some of his most high-profile developments. Whether Trump knew it or not, 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.

Semion Mogilevich, the Russian mob’s “boss of bosses,” also declined to respond to questions from the New Republic. “My ideas are not important to anybody,” Mogilevich said in a statement provided by his attorney. “Whatever I know, I am a private person.” Mogilevich, the attorney added, “has nothing to do with President Trump. He doesn’t believe that anybody associated with him lives in Trump Tower. He has no ties to America or American citizens.”


Semyon Mogilevich, the RussianMafia's "boss of bosses"


Back in 1999, the year before Trump staged his first run for president, Mogilevich gave a rare interview to the BBC. Living up to his reputation for cleverness, the mafia boss mostly joked and double-spoke his way around his criminal activities. (Q: “Why did you set up companies in the Channel Islands?” A: “The problem was that I didn’t know any other islands. When they taught us geography at school, I was sick that day.”) But when the exasperated interviewer asked, “Do you believe there is any Russian organized crime?” the “brainy don” turned half-serious.

“How can you say that there is a Russian mafia in America?” he demanded. “The word mafia, as far as I understand the word, means a criminal group that is connected with the political organs, the police and the administration. I don’t know of a single Russian in the U.S. Senate, a single Russian in the U.S. Congress, a single Russian in the U.S. government. Where are the connections with the Russians? How can there be a Russian mafia in America? Where are their connections?”

Two decades later, we finally have an answer to Mogilevich’s question.

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