Who Keeps Trying To Burn Down Trump Tower, Baku? As Trump Said, The Mob Takes The Fifth

Yesterday's fire at Trump Tower Azerbaijan isn't being covered correctly by the media. The real story is that Trump and his Mafia buddies have been trying to burn the building down-- for insurance purposes-- for a couple of years. I'll get to that in a moment. First, though, let's look at what's being so shoddily reported this weekend.

A skyscraper that was slated to become a Trump International Hotel in the Azerbaijani capital of Baku has caught fire.

The Azadliq newspaper reported that the blaze broke out on the middle floors of the 33-storey building, which is locally known as Trump Tower, and spread.

Etibar Mirzoev, deputy head of the Emergency Situations Ministry, said there were no injuries and authorities were working to establish the cause of the of the fire.

He said it took more than three hours to extinguish the flames and suggested the response was delayed because of road closures put in place for Sunday’s Grand Prix, on the Baku City Circuit.

It came after an apartment fire at Trump Tower in New York left a prominent art dealer dead and six firefighters injured earlier this month.

Development was started on the tower in Baku a decade ago but it has never opened.

Originally planned as a luxury apartment building by local developers, the project was taken over by the future US President’s company in 2012.

The Trump Organisation announced that a hotel would occupy the first 13 floors, with flats on the storeys above, but pulled out of the project in December 2016 following Mr Trump’s election.

There was controversy over affiliation between the company that owned the project, Baku XXI Century, and a local family associated with corruption. Every paragraph has at least one mistake, some so shockingly incorrect that it destroys the meaning of what actually happened. So... let me go back to

a post we wrote over a year ago.

Monday, both Rachel's researchers and New Yorker writer Adam Davidson made a few small-- but significant-- errors (and omissions) in the report that each filed on the Trump Azerbaijan scandal. Maddow's long, circuitous dramatic report-- once she got to it-- was just based on Davidson's article. As usual, she had nothing substantive to add, just some entertainment-value drama and random superfluous facts barely-- at best-- related to the matter at hand. The video above came after the long circuitous thing, which I won't bore you with, and is her interview with Davidson who spent more time in Baku than I did-- but must have not talked to the right people there... which I did... back in June.

Last summer I visited Azerbaijan for the first time, at the suggestion of first Alan Grayson and later Ted Lieu. Both had been there and both recommended it highly, especially since I was going to be in the "neighborhood" (Moscow) anyway. I did a few posts here and a few posts at my travel blog. The top takeaway was that Trump was in business-- not just in Azerbaijan, but literally everywhere in the world-- with the most corrupt criminal elements in the world. Both Davidson and Maddow got that.

What Davidson missed (he got it wrong) was that Trump Tower Baku did open (albeit without a "Grand Opening") and did start renting out rooms-- and was almost immediately shuttered-- and that eventually-- after it was clear it would not be in business in time for the week long festivities around the Formula 1 Race (the 2016 European Grand Prix), the Mammadov mafia tried burning it down, presumably for the insurance money. Davidson messing up on that caused Maddow to go off on her theory about how if the business was never meant to make any financial sense, it must have had another reason to exist. She isn't necessarily wrong about the money-laundering aspect from Iran's Revolutionary Guard-- the CIA had been talking about that and that relationship with Trump's partners, the Mammadovs, for years. But Trump Tower Baku was very much meant to be-- at least by Trump and Ivanka-- a profitable, on-going enterprise.

What they didn't quite understand was that Baku is a "with it" cosmopolitan and highly-educated and connected city/society. Other than the politics of a kleptocracy/kakistocracy, the city is not some impoverished backward backwater. As soon as Trump went on a campaign-related rampage against Muslims, this progressive and relative secular city realized he was shit-talking them. And that was the end of any chance Trump Tower Baku could be a success. By the time I got there, they were already debating how long it would take before they could change the name and re-open.

Here's the stuff Davidson missed that my sources in Baku told me. A team claiming to be part of the Trump Organization went through Baku's 5-star hotels hiring away many of the best employees. How could that have happened? They offered to pay people high salaries that included 6 month advances. Nothing like that had ever happened in the Baku hotel industry and Trump Tower was soon far more filled with employees than Trump doddering administration has been.

Now, remember, the crooked Transportation Minister, Ziya Mammadov, who went from a lowly railway worker to a billionaire/Mafioso, owns a lot of Azerbaijan. His son, Anar, is a shady character and a perfect fit for The Donald. It was only a matter of time before they found each other, which they did when Anar decided to rent Trump's name for his glitzy new hotel. He paid Trump between $2.5 and $2.8 million for the right to slap "Trump Tower" on his building and to get some "consultations" from Ivanka. In November, 2014, the Trump Organization announced that Trump Tower Baku was part of it's hotel empire and The Donald himself boasted that "Trump International Hotel & Tower Baku represents the unwavering standard of excellence of The Trump Organization and our involvement in only the best global development projects. When we open in 2015, visitors and residents will experience a luxurious property unlike anything else in Baku-- it will be among the finest in the world." Ivanka added that "This incredible building reflects the highest level of luxury and refinement, with extraordinary architecture inspired by the Caspian Sea and sophisticated interiors that seamlessly blend contemporary style with timeless appeal. We are looking forward to bringing our unparalleled Trump services and amenities to Azerbaijan.”

It sort of opened. Trump's partner, Anar, has been described by U.S. diplomats as "notoriously corrupt" and as working to launder money for the Iranian military. The hotel hired a full staff and started renting rooms but never had a promised grand opening. Everyone in the Baku hotel industry knows someone who worked there... briefly.

Trump often talks of hiring the best people and surrounding himself with people he can trust. In practice, however, he and his executives have at times appeared to overlook details about the background of people he has chosen as business partners, such as whether they had dubious associations, had been convicted of crimes, faced extradition or inflated their resumes.

...In the Azerbaijani case, Garten said the Trump Organization had performed meticulous due diligence on the company's partners, but hadn't researched the allegations against the Baku partner's father because he wasn't a party to the deal.

"I've never heard that before," Garten said, when first asked about allegations of Iranian money laundering by the partner's father, which appeared in U.S. diplomatic cables widely available since they were leaked in 2010.

Garten subsequently said he was confident the minister alleged to be laundering Iranian funds, Ziya Mammadov, had no involvement in his son's holding company, even though some of the son's major businesses regularly partnered with the transportation ministry and were founded while the son was in college overseas. Ziya Mammadov did not respond to a telephone message the AP left with his ministry in Baku or to emails to the Azerbaijan Embassy in Washington.

Garten told the AP that Trump's company uses a third-party investigative firm, which he did not identify, that specializes in background intelligence gathering and searches global watch lists, warrant lists and sanctions lists maintained by the United Nations, Interpol and others.

...Any American contemplating a business venture in Azerbaijan faces a risk: "endemic public corruption," as the State Department puts it. Much of that money flows from the oil and gas industries, but the State Department also considers the country to be a waypoint for terrorist financiers, Iranian sanctions-busters and Afghan drug lords.

The environment is a risky one for any business venture seeking to avoid violating U.S. penalties imposed against Iran or anti-bribery laws under the U.S. Foreign Corrupt Practices Act.

...Garten said the Trump Organization had performed background screening on all those involved in the deal and was confident Mammadov's father played no role in the project.

Experts on Azerbaijan were mystified that Trump or anyone else could reach that conclusion.

Anar Mammadov is widely viewed by diplomats and nongovernmental organizations as a transparent stand-in for the business interests of his father. Anar's business has boomed with regular help from his father's ministry, receiving exclusive government contracts, a near monopoly on Baku's taxi business and even a free fleet of autobuses.

"These are not business people acting on their own-- you're dealing with daddy," said Richard Kauzlarich, a U.S. ambassador to Azerbaijan under President Bill Clinton in the 1990s who went on to work under the Director of National Intelligence during the George W. Bush administration.

"Whatever the Trump people thought they were doing, that wasn't reality," Kauzlarich said.

Anar Mammadov, who is believed to be 35, has said in a series of interviews that he founded Garant Holdings' predecessor-- which has arms in transportation, construction, banking, telecommunications and manufacturing-- in 2000, when he would have been 19. Anar received his bachelor's degree in 2003 and a master's in business administration in 2005-- both from a university in London.

Mammadov's statement that he founded the business in 2000 appeared in a magazine produced by a research firm in partnership with the Azerbaijani government. In other forums, he has said he started the business in 2005, though several of its key subsidiaries predate that period.

As Davidson wrote, "After Donald Trump became a candidate for President, in 2015, Mother Jones, the Associated Press, the Washington Post, and other publications ran articles that raised questions about his involvement in the Baku project. These reports cited a series of cables sent from the U.S. Embassy in Azerbaijan in 2009 and 2010, which were made public by WikiLeaks. In one of the cables, a U.S. diplomat described Ziya Mammadov as 'notoriously corrupt even for Azerbaijan.' The Trump Organization’s chief legal officer, Alan Garten, told reporters that the Baku hotel project raised no ethical issues for Donald Trump, because his company had never engaged directly with Mammadov."

Late in the presidential campaign, after he had beaten all the Republicans and was facing Clinton, Trump had a visit from American intelligence officials who explained to him the ramifications of being in business with Mammadov was so overwhelmingly disqualifying that he had to end the relationship immediately. I don't know what they showed him exactly, but Trump Tower Baku completely disappeared from Trump World.

No evidence has surfaced showing that Donald Trump, or any of his employees involved in the Baku deal, actively participated in bribery, money laundering, or other illegal behavior. But the Trump Organization may have broken the law in its work with the Mammadov family. The Foreign Corrupt Practices Act, passed in 1977, forbade American companies from participating in a scheme to reward a foreign government official in exchange for material benefit or preferential treatment. The law even made it a crime for an American company to unknowingly benefit from a partner’s corruption if it could have discovered illicit activity but avoided doing so. This closed what was known as the “head in the sand” loophole.

...Even a cursory look at the Mammadovs suggests that they are not ideal partners for an American business. Four years before the Trump Organization announced the Baku deal, WikiLeaks released the U.S. diplomatic cables indicating that the family was corrupt; one cable mentioned the Mammadovs’ link to Iran’s Revolutionary Guard. In 2013, Radio Free Europe/Radio Liberty and the Organized Crime and Corruption Reporting Project investigated the Mammadov family’s corruption and published well-documented exposés. Six months before the hotel announcement, Foreign Policy ran an article titled “The Corleones of the Caspian,” which suggested that the Mammadovs had exploited Ziya’s position as Transportation Minister to make their fortunes.

...To this day, the Trump Organization has not provided satisfying answers to the most basic questions about the Baku deal: who owns Baku XXI Century, the company with which they signed the contracts; the origin of the funds with which Baku XXI Century paid the Trump Organization; whether the Mammadovs used their political power to benefit themselves and the Trump Organization; and whether the Mammadovs used money obtained from the Iranian Revolutionary Guard to fund the Trump Tower Baku.

...More than a dozen lawyers with experience in F.C.P.A. prosecution expressed surprise at the Trump Organization’s seemingly lax approach to vetting its foreign partners. But, when I asked a former Trump Organization executive if the Baku deal had seemed unusual, he laughed. “No deal there seems unusual, as long as a check is attached,” he said.

Remember, the first significant piece of legislation Trump signed was a bill repealing an Obama administration rule focring energy and mining companies to disclose any payments (bribes) they made abroad. Trumpanzee: "This is a big signing, a very important signing. And this is H.J. Resolution 41, disapproving the Securities and Exchange Commission's rule on disclosure of payments by resource extraction issuers. It's a big deal. And I want to thank Speaker Paul Ryan for being here. He's been tremendous. Jeb Hensarling very, very important and really worked hard. Representative Bill Huizenga and all of the friends-- Peter-- all of my friends are up here. And we really appreciate it." I'm sure he did-- and what's good enough for the Oil barons is certainly good enough for the hotel developing mobsters, no?

After Trump, The Culture Of Corruption Will Never Be The Same-- Take Azerbaijan

Monday, both Rachel's researchers and New Yorker writer Adam Davidson made a few small-- but significant-- errors (and omissions) in the report that each filed on the Trump Azerbaijan scandal. Maddow's long, circuitous dramatic report-- once she got to it-- was just based on Davidson's article. As usual, she had nothing substantive to add, just some entertainment-value drama and random superfluous facts barely-- at best-- related to the matter at hand. The video above came after the long circuitous thing, which I won't bore you with, and is her interview with Davidson who spent more time in Baku than I did-- but must have not talked to the right people there... which I did... back in June.

Last summer I visited Azerbaijan for the first time, at the suggestion of first Alan Grayson and later Ted Lieu. Both had been there and both recommended it highly, especially since I was going to be in the "neighborhood" (Moscow) anyway. I did a few posts here and a few posts at my travel blog. The top takeaway was that Trump was in business-- not just in Azerbaijan, but literally everywhere in the world-- with the most corrupt criminal elements in the world. Both Davidson and Maddow got that.

What Davidson missed (he got it wrong) was that Trump Tower Baku did open (albeit without a "Grand Opening") and did start renting out rooms-- and was almost immediately shuttered-- and that eventually-- after it was clear it would not be in business in time for the week long festivities around the Formula 1 Race (the 2016 European Grand Prix), the Mammadov mafia tried burning it down, presumably for the insurance money. Davidson messing up on that caused Maddow to go off on her theory about how if the business was never meant to make any financial sense, it must have had another reason to exist. She isn't necessarily wrong about the money-laundering aspect from Iran's Revolutionary Guard-- the CIA had been talking about that and that relationship with Trump's partners, the Mammadovs, for years. But Trump Tower Baku was very much meant to be-- at least by Trump and Ivanka-- a profitable, on-going enterprise.

What they didn't quite understand was that Baku is a "with it" cosmopolitan and highly-educated and connected city/society. Other than the politics of a kleptocracy/kakistocracy, the city is not some impoverished backward backwater. As soon as Trump went on a campaign-related rampage against Muslims, this progressive and relative secular city realized he was shit-talking them. And that was the end of any chance Trump Tower Baku could be a success. By the time I got there, they were already debating how long it would take before they could change the name and re-open.

Here's the stuff Davidson missed that my sources in Baku told me. A team claiming to be part of the Trump Organization went through Baku's 5-star hotels hiring away many of the best employees. How could that have happened? They offered to pay people high salaries that included 6 month advances. Nothing like that had ever happened in the Baku hotel industry and Trump Tower was soon far more filled with employees than Trump doddering administration has been.

Now, remember, the crooked Transportation Minister, Ziya Mammadov, who went from a lowly railway worker to a billionaire/Mafioso, owns a lot of Azerbaijan. His son, Anar, is a shady character and a perfect fit for The Donald. It was only a matter of time before they found each other, which they did when Anar decided to rent Trump's name for his glitzy new hotel. He paid Trump between $2.5 and $2.8 million for the right to slap "Trump Tower" on his building and to get some "consultations" from Ivanka. In November, 2014, the Trump Organization announced that Trump Tower Baku was part of it's hotel empire and The Donald himself boasted that "Trump International Hotel & Tower Baku represents the unwavering standard of excellence of The Trump Organization and our involvement in only the best global development projects. When we open in 2015, visitors and residents will experience a luxurious property unlike anything else in Baku-- it will be among the finest in the world." Ivanka added that "This incredible building reflects the highest level of luxury and refinement, with extraordinary architecture inspired by the Caspian Sea and sophisticated interiors that seamlessly blend contemporary style with timeless appeal. We are looking forward to bringing our unparalleled Trump services and amenities to Azerbaijan.”

It sort of opened. Trump's partner, Anar, has been described by U.S. diplomats as "notoriously corrupt" and as working to launder money for the Iranian military. The hotel hired a full staff and started renting rooms but never had a promised grand opening. Everyone in the Baku hotel industry knows someone who worked there... briefly.

Trump often talks of hiring the best people and surrounding himself with people he can trust. In practice, however, he and his executives have at times appeared to overlook details about the background of people he has chosen as business partners, such as whether they had dubious associations, had been convicted of crimes, faced extradition or inflated their resumes.

...In the Azerbaijani case, Garten said the Trump Organization had performed meticulous due diligence on the company's partners, but hadn't researched the allegations against the Baku partner's father because he wasn't a party to the deal.

"I've never heard that before," Garten said, when first asked about allegations of Iranian money laundering by the partner's father, which appeared in U.S. diplomatic cables widely available since they were leaked in 2010.

Garten subsequently said he was confident the minister alleged to be laundering Iranian funds, Ziya Mammadov, had no involvement in his son's holding company, even though some of the son's major businesses regularly partnered with the transportation ministry and were founded while the son was in college overseas. Ziya Mammadov did not respond to a telephone message the AP left with his ministry in Baku or to emails to the Azerbaijan Embassy in Washington.

Garten told the AP that Trump's company uses a third-party investigative firm, which he did not identify, that specializes in background intelligence gathering and searches global watch lists, warrant lists and sanctions lists maintained by the United Nations, Interpol and others.

...Any American contemplating a business venture in Azerbaijan faces a risk: "endemic public corruption," as the State Department puts it. Much of that money flows from the oil and gas industries, but the State Department also considers the country to be a waypoint for terrorist financiers, Iranian sanctions-busters and Afghan drug lords.

The environment is a risky one for any business venture seeking to avoid violating U.S. penalties imposed against Iran or anti-bribery laws under the U.S. Foreign Corrupt Practices Act.

...Garten said the Trump Organization had performed background screening on all those involved in the deal and was confident Mammadov's father played no role in the project.

Experts on Azerbaijan were mystified that Trump or anyone else could reach that conclusion.

Anar Mammadov is widely viewed by diplomats and nongovernmental organizations as a transparent stand-in for the business interests of his father. Anar's business has boomed with regular help from his father's ministry, receiving exclusive government contracts, a near monopoly on Baku's taxi business and even a free fleet of autobuses.

"These are not business people acting on their own-- you're dealing with daddy," said Richard Kauzlarich, a U.S. ambassador to Azerbaijan under President Bill Clinton in the 1990s who went on to work under the Director of National Intelligence during the George W. Bush administration.

"Whatever the Trump people thought they were doing, that wasn't reality," Kauzlarich said.

Anar Mammadov, who is believed to be 35, has said in a series of interviews that he founded Garant Holdings' predecessor-- which has arms in transportation, construction, banking, telecommunications and manufacturing-- in 2000, when he would have been 19. Anar received his bachelor's degree in 2003 and a master's in business administration in 2005-- both from a university in London.

Mammadov's statement that he founded the business in 2000 appeared in a magazine produced by a research firm in partnership with the Azerbaijani government. In other forums, he has said he started the business in 2005, though several of its key subsidiaries predate that period.

As Davidson wrote, "After Donald Trump became a candidate for President, in 2015, Mother Jones, the Associated Press, the Washington Post, and other publications ran articles that raised questions about his involvement in the Baku project. These reports cited a series of cables sent from the U.S. Embassy in Azerbaijan in 2009 and 2010, which were made public by WikiLeaks. In one of the cables, a U.S. diplomat described Ziya Mammadov as 'notoriously corrupt even for Azerbaijan.' The Trump Organization’s chief legal officer, Alan Garten, told reporters that the Baku hotel project raised no ethical issues for Donald Trump, because his company had never engaged directly with Mammadov."

Late in the presidential campaign, after he had beaten all the Republicans and was facing Clinton, Trump had a visit from American intelligence officials who explained to him the ramifications of being in business with Mammadov was so overwhelmingly disqualifying that he had to end the relationship immediately. I don't know what they showed him exactly, but Trump Tower Baku completely disappeared from Trump World.

No evidence has surfaced showing that Donald Trump, or any of his employees involved in the Baku deal, actively participated in bribery, money laundering, or other illegal behavior. But the Trump Organization may have broken the law in its work with the Mammadov family. The Foreign Corrupt Practices Act, passed in 1977, forbade American companies from participating in a scheme to reward a foreign government official in exchange for material benefit or preferential treatment. The law even made it a crime for an American company to unknowingly benefit from a partner’s corruption if it could have discovered illicit activity but avoided doing so. This closed what was known as the “head in the sand” loophole.

...Even a cursory look at the Mammadovs suggests that they are not ideal partners for an American business. Four years before the Trump Organization announced the Baku deal, WikiLeaks released the U.S. diplomatic cables indicating that the family was corrupt; one cable mentioned the Mammadovs’ link to Iran’s Revolutionary Guard. In 2013, Radio Free Europe/Radio Liberty and the Organized Crime and Corruption Reporting Project investigated the Mammadov family’s corruption and published well-documented exposés. Six months before the hotel announcement, Foreign Policy ran an article titled “The Corleones of the Caspian,” which suggested that the Mammadovs had exploited Ziya’s position as Transportation Minister to make their fortunes.

...To this day, the Trump Organization has not provided satisfying answers to the most basic questions about the Baku deal: who owns Baku XXI Century, the company with which they signed the contracts; the origin of the funds with which Baku XXI Century paid the Trump Organization; whether the Mammadovs used their political power to benefit themselves and the Trump Organization; and whether the Mammadovs used money obtained from the Iranian Revolutionary Guard to fund the Trump Tower Baku.

...More than a dozen lawyers with experience in F.C.P.A. prosecution expressed surprise at the Trump Organization’s seemingly lax approach to vetting its foreign partners. But, when I asked a former Trump Organization executive if the Baku deal had seemed unusual, he laughed. “No deal there seems unusual, as long as a check is attached,” he said.

Remember, the first significant piece of legislation Trump signed was a bill repealing an Obama administration rule focring energy and mining companies to disclose any payments (bribes) they made abroad. Trumpanzee: "This is a big signing, a very important signing. And this is H.J. Resolution 41, disapproving the Securities and Exchange Commission's rule on disclosure of payments by resource extraction issuers. It's a big deal. And I want to thank Speaker Paul Ryan for being here. He's been tremendous. Jeb Hensarling very, very important and really worked hard. Representative Bill Huizenga and all of the friends-- Peter-- all of my friends are up here. And we really appreciate it." I'm sure he did-- and what's good enough for the Oil barons is certainly good enough for the hotel developing mobsters, no?

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

-by Valley Girl



As I told Howie, I went to the New Yorker site looking for (cat) cartoons. But I never got that far, because almost immediately I discovered some fascinating investigative articles written by Adam Davidson. Two are worthy of particular note, given Robert Mueller’s brief to investigate the business dealings of Donald Trump. The first, published on March 13, 2017, is titled Donald Trump's Worst Deal. The subtitle is “The President helped build a hotel in Azerbaijan that appears to be a corrupt operation engineered by oligarchs tied to Iran’s Revolutionary Guard.” I’ll summarize that here. The second will appear in a separate post here at DWT later this evening... Yes, probably your first ever whole night in the Caucuses.

Howie has traveled to Azerbaijan, and seen the Trump Tower in Baku up close and personal. He’s written about this at DWT; here are some of his posts about Baku's rampant corruption and the Trump family.

Some background about Azerbaijan- from wiki:

The Azerbaijan Democratic Republic proclaimed its independence in 1918 and became the first democratic state in the Muslim-oriented world. The country was incorporated into the Soviet Union in 1920 as the Azerbaijan Soviet Socialist Republic. The modern Republic of Azerbaijan proclaimed its independence on 30 August 1991, prior to the official dissolution of the USSR in December 1991.

In summarizing Davidson’s ~7000 word article, I pared it down to the essence, but didn’t change his (very careful) wording. Note these when reading: The Foreign Corrupt Practices Act, Iranian Revolutionary Guard, Mammadov family’s corruption, The Corleones of the Caspian.

And, before or after you read the summary, watch: This CNN video interview is excellent, but not embeddable, alas: The New Yorker's Adam Davidson speaks to Christiane Amanpour about his piece on Donald Trump's business with oligarchs tied to Iran's Revolutionary Guard. It’s a "must watch," and the information jumps out at you in a way that it just doesn’t on the written page.

The Trump Tower Baku never opened. Trump partnered with an Azerbaijani family that U.S. officials called notoriously unethical.

Heydar Aliyev Prospekti, a broad avenue in Baku, the capital of Azerbaijan, connects the airport to the city. The road is meant to highlight Baku’s recent modernization, and it is lined with sleek new buildings.

As you approach the city center, a tower at the end of the avenue looms in front of you. The building, a five-star hotel and residence called the Trump International Hotel & Tower Baku, has never opened, though from the road it looks ready to welcome the public.

The more time I spent in the neighborhood, the more I wondered how the hotel could have been imagined as a viable business. The development was conceived, in 2008, as a high-end apartment building. In 2012, after Donald Trump’s company, the Trump Organization, signed multiple contracts with the Azerbaijani developers behind the project, plans were made to transform the tower into an “ultra-luxury property.” According to a Trump Organization press release, a hotel with “expansive guest rooms” would occupy the first thirteen floors; higher stories would feature residences with “spectacular views of the city and Caspian Sea.” For an expensive hotel, the Trump Tower Baku is in an oddly unglamorous location: the underdeveloped eastern end of downtown, which is dominated by train tracks and is miles from the main business district, on the west side of the city. Across the street from the hotel is a discount shopping center; the area is filled with narrow, dingy shops and hookah bars. Other hotels nearby are low-budget options: at the AYF Palace, most rooms are forty-two dollars a night. There are no upscale restaurants or shops. Any guests of the Trump Tower Baku would likely feel marooned.

The timing of the project was also curious. By 2014, when the Trump Organization publicly announced that it was helping to turn the tower into a hotel, a construction boom in Baku had ended, and the occupancy rate for luxury hotels in the city hovered around thirty-five per cent.

A former top official in Azerbaijan’s Ministry of Tourism says that, when he learned of the Trump hotel project, he asked himself, “Why would someone put a luxury hotel there? Nobody who can afford to stay there would want to be in that neighborhood.”

The Azerbaijanis behind the project were close relatives of Ziya Mammadov, the Transportation Minister and one of the country’s wealthiest and most powerful oligarchs. According to the Transparency International Corruption Perceptions Index, Azerbaijan is among the most corrupt nations in the world.

After Donald Trump became a candidate for President, in 2015, (several) publications … raised questions about his involvement in the Baku project... a U.S. diplomat described Ziya Mammadov as “notoriously corrupt even for Azerbaijan.” The Trump Organization’s chief legal officer, Alan Garten, told reporters that the Baku hotel project raised no ethical issues for Donald Trump, because his company had never engaged directly with Mammadov.

A month after Trump was elected President, Garten announced that the Trump Organization had severed its ties with the hotel project, describing the decision to CNN as little more than “housecleaning.” I was in Baku at the time, and it had become clear that the Trump Organization’s story of the hotel was incomplete and inaccurate.

Ivanka in Baku

An Azerbaijani lawyer who worked on the project revealed to me that the Trump Organization had not just licensed the family name; it also had signed a technical-services agreement in which it promised to help its partner meet Trump design standards. Technical-services agreements are often nominal addenda to licensing deals... The Azerbaijani lawyer told me, “We were always following their instructions. We were in constant contact with the Trump Organization. They approved the smallest details.”

Ivanka Trump was the most senior Trump Organization official on the Baku project. In October, 2014, she visited the city to tour the site and offer advice... The Azerbaijani lawyer said, “Ivanka personally approved everything.”

The sustained back-and-forth between the Trump Organization and the Mammadovs has legal significance... Tom Fox, a Houston lawyer who specializes in anti-corruption compliance, said, “It’s a problem if you’re making a profit off of someone else’s corrupt conduct.”

Before signing a deal with a foreign partner, American companies, including major hotel chains, conduct risk assessments and background checks that take a close look at the country, the prospective partner, and the people involved... A senior executive at one of the largest American hotel chains, who asked for anonymity because he feared reprisal from the Trump Administration, said, “We wouldn’t look at due diligence as a burden. There certainly is a cost to doing it, especially in higher-risk places. But it’s as much an investment in the protection of that brand. It’s money well spent.”

Alan Garten told me that the Trump Organization had commissioned a risk assessment for the Baku deal, but declined to name the company that had performed it. …according to Garten, the Trump Organization had undertaken “extensive due diligence” before making the hotel deal and had not discovered “any red flags.”

But the Mammadov family, in addition to its reputation for corruption, has a troubling connection that any proper risk assessment should have unearthed: for years, it has been financially entangled with an Iranian family tied to the Iranian Revolutionary Guard Corps, the ideologically driven military force.

I asked Garten how deeply the Trump Organization had looked into the Mammadov family’s political connections. …When I asked him to provide documentation of due diligence, he said that he couldn’t share it with me, because “it’s confidential and privileged.”

(But) the Trump Organization may have broken the law in its work with the Mammadov family. The Foreign Corrupt Practices Act, passed in 1977, forbade American companies from participating in a scheme to reward a foreign government official in exchange for material benefit or preferential treatment. The law even made it a crime for an American company to unknowingly benefit from a partner’s corruption if it could have discovered illicit activity but avoided doing so. This closed what was known as the “head in the sand” loophole.

Even a cursory look at the Mammadovs suggests that they are not ideal partners for an American business. Four years before the Trump Organization announced the Baku deal, WikiLeaks released the U.S. diplomatic cables indicating that the family was corrupt; one cable mentioned the Mammadovs’ link to Iran’s Revolutionary Guard. In 2013, Radio Free Europe/Radio Liberty and the Organized Crime and Corruption Reporting Project investigated the Mammadov family’s corruption and published well-documented exposés. Six months before the hotel announcement, Foreign Policy ran an article titled “The Corleones of the Caspian,” which suggested that the Mammadovs had exploited Ziya’s position as Transportation Minister to make their fortunes.

Alan Garten, the Trump Organization lawyer, did not deny that there was corruption involved in the project. “I’m not going to sit here and defend the Mammadovs,” he said. But, from a legal standpoint, he argued, the Trump Organization was blameless. In his opinion, the Foreign Corrupt Practices Act doesn’t apply to the Baku deal, even if corruption occurred. “We didn’t own it,” he said of the hotel. “We had no equity. We didn’t control the project. The flow of funds is in the wrong direction.” He added, “We did not pay any money to anyone. Therefore, it could not be a violation of the F.C.P.A.”

“No, that’s just wrong,” Jessica Tillipman, an assistant dean at George Washington University Law School, who specializes in the F.C.P.A., said. “You can’t go into business deals in Azerbaijan assuming that you are immune from the F.C.P.A.” She added, “Nor can you escape liability by looking the other way. The entire Baku deal is a giant red flag—the direct involvement of foreign government officials and their relatives in Azerbaijan with ties to the Iranian Revolutionary Guard. Corruption warning signs are rarely more obvious.”

Tillipman explained that the F.C.P.A. defines corruption as “the payment of money or anything of value” to a foreign official... Tillipman, along with several other F.C.P.A. experts, told me that the Trump Organization had clearly provided things of value in the Baku deal: its famous brand, its command of the luxury market, its extensive technical advice.

American companies must insure that they are not receiving funds that originated with any sanctioned entity. Ignorance is not a defense, especially if there is ample warning that a foreign partner could have a link to such an entity. Most firms, upon hearing of even a slight chance of Iranian involvement, conduct due diligence that is much more extensive than what is typical for F.C.P.A. compliance. Erich Ferrari, an attorney who specializes in sanctions-related legal cases, said that before the Trump Organization cashed any checks it should have been certain of “the source of the funds”—“not only the bank it was remitted from but how the Mammadovs actually earned the money they paid.” He said of the Baku deal, “It takes a lot to shock a lawyer, but I’ve had very few clients do so little due diligence.

To this day, the Trump Organization has not provided satisfying answers to the most basic questions about the Baku deal: (including) whether the Mammadovs used their political power to benefit themselves and the Trump Organization; and whether the Mammadovs used money obtained from the Iranian Revolutionary Guard to fund the Trump Tower Baku.

More than a dozen lawyers with experience in F.C.P.A. prosecution expressed surprise at the Trump Organization’s seemingly lax approach to vetting its foreign partners. But, when I asked a former Trump Organization executive if the Baku deal had seemed unusual, he laughed. “No deal there seems unusual, as long as a check is attached,” he said.

Next up: we head east to another sleazy Trump project steeped in corruption, money-laundering and a country's shadiest characters-- Señor Trumpanzee tries his luck in Batumi.

Why Trump Tower Baku Suddenly Disappeared From Trump's Website

Do the Trump family's shady business dealings with criminal elements throughout the world, jeopardize American national security? And was this too complicated and vaguely abstract for the mainstream media to dig into during the election campaign? His tweets yesterday about separating himself from his business is utterly meaningless.

It's no secret that the head of the CIA, John Brennan, warned Trump that sabotaging the nuclear deal with Iran, cozying up to Putin and reinstating forms of interrogation considered torture, are policies that would be bad for America. Brennan took his complaints public, during a BBC interview, calling some of Trump's stated plans "the height of folly" and predicting "disastrous" outcomes.

Less known, however, is that Trump was quietly warned by American intelligence officials that he absolutely had to cut off his business relationship with Azerbaijan's Mammadov clan, the most dangerous and criminal players in the Caucuses. Last June, I was in Azerbaijan and did some writing about Trump Tower in Baku, which had opened and then closed down within days as the entire country decided as one to boycott it. The combination of Trump's anti-Muslim pronouncements and the toxicity of his criminal partners was too much for Azerbaijan society to stomach.

One of the mainstays of Azerbaijan's kleptocratic regime, Transportation Minister Ziya Mammadov, who went from a lowly railway worker to a billionaire/Mafioso, owns a lot of the country. His son, Anar, is a shady character and a perfect fit for the Trump family. It was only a matter of time before they found each other, which they did when Anar decided to rent Trump's name for his glitzy new hotel. He paid Trump between $2.5 and $2.8 million for the right to slap "Trump Tower" on his building and to get some "consultations" from Ivanka. In November, 2014, the Trump Organization announced that Trump Tower Baku was part of it's hotel empire and The Donald himself boasted (the same canned bullshit he spouts whenever anyone pays him for an endorsement for a hotel) that "Trump International Hotel & Tower Baku represents the unwavering standard of excellence of The Trump Organization and our involvement in only the best global development projects. When we open in 2015, visitors and residents will experience a luxurious property unlike anything else in Baku-- it will be among the finest in the world." Ivanka added that "This incredible building reflects the highest level of luxury and refinement, with extraordinary architecture inspired by the Caspian Sea and sophisticated interiors that seamlessly blend contemporary style with timeless appeal. We are looking forward to bringing our unparalleled Trump services and amenities to Azerbaijan.”

It sort of opened. Trump's partner, Anar, has been described by U.S. diplomats as "notoriously corrupt" and as working to launder money for the Iranian military. The hotel hired a full staff and started renting rooms but never had a promised grand opening. Everyone in the Baku hotel industry knows someone who worked there... briefly.

Trump often talks of hiring the best people and surrounding himself with people he can trust. In practice, however, he and his executives have at times appeared to overlook details about the background of people he has chosen as business partners, such as whether they had dubious associations, had been convicted of crimes, faced extradition or inflated their resumes.

Ivanka does Baku

...In the Azerbaijani case, Garten said the Trump Organization had performed meticulous due diligence on the company's partners, but hadn't researched the allegations against the Baku partner's father because he wasn't a party to the deal.

"I've never heard that before," Garten said, when first asked about allegations of Iranian money laundering by the partner's father, which appeared in U.S. diplomatic cables widely available since they were leaked in 2010.

Garten subsequently said he was confident the minister alleged to be laundering Iranian funds, Ziya Mammadov, had no involvement in his son's holding company, even though some of the son's major businesses regularly partnered with the transportation ministry and were founded while the son was in college overseas. Ziya Mammadov did not respond to a telephone message the AP left with his ministry in Baku or to emails to the Azerbaijan Embassy in Washington.

Garten told the AP that Trump's company uses a third-party investigative firm, which he did not identify, that specializes in background intelligence gathering and searches global watch lists, warrant lists and sanctions lists maintained by the United Nations, Interpol and others.

...Any American contemplating a business venture in Azerbaijan faces a risk: "endemic public corruption," as the State Department puts it. Much of that money flows from the oil and gas industries, but the State Department also considers the country to be a waypoint for terrorist financiers, Iranian sanctions-busters and Afghan drug lords.

The environment is a risky one for any business venture seeking to avoid violating U.S. penalties imposed against Iran or anti-bribery laws under the U.S. Foreign Corrupt Practices Act.

...Garten said the Trump Organization had performed background screening on all those involved in the deal and was confident Mammadov's father played no role in the project.

Experts on Azerbaijan were mystified that Trump or anyone else could reach that conclusion.

Anar Mammadov is widely viewed by diplomats and nongovernmental organizations as a transparent stand-in for the business interests of his father. Anar's business has boomed with regular help from his father's ministry, receiving exclusive government contracts, a near monopoly on Baku's taxi business and even a free fleet of autobuses.

"These are not business people acting on their own-- you're dealing with daddy," said Richard Kauzlarich, a U.S. ambassador to Azerbaijan under President Bill Clinton in the 1990s who went on to work under the Director of National Intelligence during the George W. Bush administration.

"Whatever the Trump people thought they were doing, that wasn't reality," Kauzlarich said.

Anar Mammadov, who is believed to be 35, has said in a series of interviews that he founded Garant Holdings' predecessor-- which has arms in transportation, construction, banking, telecommunications and manufacturing-- in 2000, when he would have been 19. Anar received his bachelor's degree in 2003 and a master's in business administration in 2005-- both from a university in London.

Mammadov's statement that he founded the business in 2000 appeared in a magazine produced by a research firm in partnership with the Azerbaijani government. In other forums, he has said he started the business in 2005, though several of its key subsidiaries predate that period.

Now all the employees have been laid off and everyone around Baku says the Mammadovs want to wait a little while for people to forget the Trump taint before they re-brand the building and re-open it as something else-- anything else... even a Motel 6 would be a better bet than something related to Donald Trump at this moment. The stench attached to his name and his brand isn't going to wash off quickly, especially not in a highly educated, secular Muslim-majority country like Azerbaijan.

After Trump was declared the winner of the election, U.S. intelligence officials told him he had to break off his business relationship with the Mammadovs and Trump Tower Baku has been unceremoniously "disappeared" from the company website, though not before Ivanka offered her Facebook fans a mini-tour of Baku from her window while she was there (October, 2014). This is Trump's business model-- hooking up with notorious criminals in off-the-beaten path places that few people back home know anything about. The Mammadov are viewed by U.S. intelligence as not just corrupt and criminal but also in league with Iran and any terrorist organizations or drug operations with some money to spend.

Asserting that Ziya Mammadov lets Anar run the family's criminal enterprises would be like Trump claiming Barron and Donald, Jr. (Fredo) run the Trump Organization now

Trump's Name Is Even Too Toxic For Azerbaijan, One Of The World's Most Corrupt Nations

I just got back from my first visit to Azerbaijan. I never expected to find such a wonderful place but it reminded me of a wealthier and more modern/Western Turkey. It's a little smaller than Maine and a little bigger than South Carolina with just over ten million inhabitants, more than New Jersey or Michigan and just about the same number as North Carolina. The rap on the country is that it's very wealthy but that all the wealth is concentrated in a few families' hands, cronies of the forever president, Ilham Aliyev, who first came to power in 2003 when his pop, Heydar Aliyev, died. The elder Aliyev had been a former First Secretary of the Azerbaijani Communist Party, a member of the Soviet Politburo and of the KGB before deposing Azerbaijan's first democratically-elected president Abulfaz Elchibey, and taking over.

Before that unpleasantness, Azerbaijan was the world's first Muslim-majority secular state and parliamentary democracy. That was before being overrun by the Soviets in 1920, Lenin saying he was sorry but the Soviets needed the oil. Azerbaijan lived under the Soviet yoke until it declared independence in 1991, as the Soviet Union was crumbling. Now it's a rich little country and Baku, the modern, bustling capital, looks-- architecturally-- like a cross between Paris and Dubai. And into this mix waddled Donald Trump a couple years ago.He smelled the opportunities inherent in one of the world's most corrupt countries a hemisphere away.

One of the mainstays of the kleptocratic regime, Transportation Minister, Ziya Mammadov, who went from a lowly railway worker to a billionaire/Mafioso, owns a lot of Azerbaijan. His son, Anar, is a shady character and a perfect fit for The Donald. It was only a matter of time before they found each other, which they did when Anar decided to rent Trump's name for his glitzy new hotel. He paid Trump between $2.5 and $2.8 million for the right to slap "Trump Tower" on his building and to get some "consultations" from Ivanka. In November, 2014, the Trump Organization announced that Trump Tower Baku was part of it's hotel empire and The Donald himself boasted that "Trump International Hotel & Tower Baku represents the unwavering standard of excellence of The Trump Organization and our involvement in only the best global development projects. When we open in 2015, visitors and residents will experience a luxurious property unlike anything else in Baku-- it will be among the finest in the world." Ivanka added that "This incredible building reflects the highest level of luxury and refinement, with extraordinary architecture inspired by the Caspian Sea and sophisticated interiors that seamlessly blend contemporary style with timeless appeal. We are looking forward to bringing our unparalleled Trump services and amenities to Azerbaijan.”

It sort of opened. Trump's partner, Anar, has been described by U.S. diplomats as "notoriously corrupt" and as working to launder money for the Iranian military. The hotel hired a full staff and started renting rooms but never had a promised grand opening. Everyone in the Baku hotel industry knows someone who worked there... briefly.

Trump often talks of hiring the best people and surrounding himself with people he can trust. In practice, however, he and his executives have at times appeared to overlook details about the background of people he has chosen as business partners, such as whether they had dubious associations, had been convicted of crimes, faced extradition or inflated their resumes.

...In the Azerbaijani case, Garten said the Trump Organization had performed meticulous due diligence on the company's partners, but hadn't researched the allegations against the Baku partner's father because he wasn't a party to the deal.

"I've never heard that before," Garten said, when first asked about allegations of Iranian money laundering by the partner's father, which appeared in U.S. diplomatic cables widely available since they were leaked in 2010.

Garten subsequently said he was confident the minister alleged to be laundering Iranian funds, Ziya Mammadov, had no involvement in his son's holding company, even though some of the son's major businesses regularly partnered with the transportation ministry and were founded while the son was in college overseas. Ziya Mammadov did not respond to a telephone message the AP left with his ministry in Baku or to emails to the Azerbaijan Embassy in Washington.

Garten told the AP that Trump's company uses a third-party investigative firm, which he did not identify, that specializes in background intelligence gathering and searches global watch lists, warrant lists and sanctions lists maintained by the United Nations, Interpol and others.

...Any American contemplating a business venture in Azerbaijan faces a risk: "endemic public corruption," as the State Department puts it. Much of that money flows from the oil and gas industries, but the State Department also considers the country to be a waypoint for terrorist financiers, Iranian sanctions-busters and Afghan drug lords.

The environment is a risky one for any business venture seeking to avoid violating U.S. penalties imposed against Iran or anti-bribery laws under the U.S. Foreign Corrupt Practices Act.

...Garten said the Trump Organization had performed background screening on all those involved in the deal and was confident Mammadov's father played no role in the project.

Experts on Azerbaijan were mystified that Trump or anyone else could reach that conclusion.

Anar Mammadov is widely viewed by diplomats and nongovernmental organizations as a transparent stand-in for the business interests of his father. Anar's business has boomed with regular help from his father's ministry, receiving exclusive government contracts, a near monopoly on Baku's taxi business and even a free fleet of autobuses.

"These are not business people acting on their own-- you're dealing with daddy," said Richard Kauzlarich, a U.S. ambassador to Azerbaijan under President Bill Clinton in the 1990s who went on to work under the Director of National Intelligence during the George W. Bush administration.

"Whatever the Trump people thought they were doing, that wasn't reality," Kauzlarich said.

Anar Mammadov, who is believed to be 35, has said in a series of interviews that he founded Garant Holdings' predecessor-- which has arms in transportation, construction, banking, telecommunications and manufacturing-- in 2000, when he would have been 19. Anar received his bachelor's degree in 2003 and a master's in business administration in 2005-- both from a university in London.

Mammadov's statement that he founded the business in 2000 appeared in a magazine produced by a research firm in partnership with the Azerbaijani government. In other forums, he has said he started the business in 2005, though several of its key subsidiaries predate that period.

Now all the employees have been laid off and everyone around Baku says the Mammadovs want to wait a little while for people to forget the Trump taint before they re-brand the building and re-open it as something else-- anything else... even a Motel 6 would be a better bet than something related to Donald Trump at this moment. The stench attached to his name and his brand isn't going to wash off quickly, especially not in a highly educated, secular Muslim-majority country like Azerbaijan. Want to help save America from Trump and Trumpism? Tap the thermometer:

Another Trump Property Tarred With His Toxic Name Is Forced To Close-- Maybe Koi Could Reopen In Clay Co, Kentucky

I bet folks in McKee, Kentucky would LOVE a Trump-branded something in their town of 800. This one is available for moving

Just under a year ago I spent some time in Azerbaijan, mostly in Baku, the capital city. I went to see Trump Tower, which had opened and closed in a matter of days, and blogged about it a bit. Trump's Mafia business partners, the Mammadovs (AKA the Coreleones of the Caspian), were stuck holding the bag when the CIA insisted GOP nominee Trump extricate himself and Ivanka from a full-time criminal enterprise that was working as money launderers for the Iranian Revolutionary Guard. After it was shuttered, people wondered in Baku wondered if it would be rebranded with a less toxic name-- like Motel 6-- or if the Mammadovs would just wait it out and see if Trump's name became less toxic or even, alluring on some level. It didn't and they tried to burn it down.

Today it's still standing-- empty and forlorn-- in a sketchy Baku neighborhood, sucking money. It's just there, all 33 stories that you can see from almost anywhere in the city. The concierge from a much more luxurious Baku hotel told me Trump's name is so toxic in Azerbaijan that its not likely the hotel will ever open. The Trump Organization has removed it from its website-- disappeared; never happened.

This week another Trump property succumbed to... all things Trump. The high end sushi restaurant at Trump Soho, Koi, shut down because of a lack of business. According to GrubStreet, "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." [By the way, folks in Clay County, Kentucky might think of sushi as bait but they only gave Hillary 11% of their vote last year. Sounds like a perfect place for Uday and Kusay to open Trump-branded properties... or Jackson County, where Trump won 88.9% of the vote, but where everyone is a prescription drug zombie.]

“Obviously, the restaurant is closing because business is down. I don’t think anyone would volunteer to close a business if they were making money,” Suzanne Chou, Koi Group’s general counsel, says with a laugh. “Beyond that, I would prefer not to speculate as to why, but obviously since the election it’s gone down.”

A California import, Koi is a familiar style of pan-Asian restaurant: clubby, expensive, and popular with celebrities and professional athletes. It’s not in any food snob’s regular rotation, but the Los Angeles original (branches have opened in Bangkok, Las Vegas, and Dubai) has long been a destination for the rich and famous. When the Soho location opened in 2012, Forbes Travel Guide wrote, “where there’s a Koi dish, there’s a celebrity.” Though Chou declined to delve specifically into how much business had gone down, Koi staffers say that the election has had an impact on the restaurant’s bottom line, and their paychecks.

Now, references to the downtown branch have been scrubbed from both the Koi Trump Soho’s homepages. A limited menu (“30 to 40 percent of what we used to carry,” the reservationist says) will be served until June 18, when Koi and menu items like “She’s So LA” rolls will vacate the building for good. No one other locations will close, and Chou says that the group hopes to reopen somewhere else downtown.

“Before Trump won we were doing great. There were a lot of people we had, our regulars, who’d go to the hotel but are not affiliated with Trump,” says Jonathan Grullon, a busser and host who has worked at the restaurant for a year and a half. “And they were saying if he wins, we are not coming here anymore.”

Ricardo Aca, who worked at the restaurant for four years until this February, concurs, noting twice that “the Kardashians stopped coming.” Following the election, Aca says that business dipped so much that he had to take a second part-time job while he was still working there. As a server in the hotel’s Koi-managed lounge, he saw his hourly earnings fall from about $20 to $15 an hour. And Grullon says he’s making almost $200 dollars less each week and that he, too, has had to get a second job.

According to Grullon, Koi now has just ten service employees, including those in the kitchen. Some staff started walking away once business evaporated, and now that news of the closing is public, more have started to leave. The dining room is often 30 to 40 percent full and never gets past 50 to 60 percent capacity. During lunch, they’ll serve fewer than 30 people in a restaurant that can seat 140.

“We’ve been getting cut all the time. There is no reason for us to be there,” Grullon says. “They say they’re going to close June 18, but I think it’s going to be sooner.”

In the meantime, New York’s other location of Koi, near Bryant Park, is still open. In fact, a reservationist at the Soho location offered to book a table uptown instead, saying “it would be a much better experience for you.”