Psst, Another Scandal, Thomas Pickering/Panama Papers

Posted on by

Who is Tom Pickering? He is the fella that Hillary tapped to do the Accountability Review Board Report on Benghazi. And, thanks to my buddy Clare Lopez, former CIA, she authored a white paper on ol’ Thomas and his pro-Iran lobby.

Pickering was also part of a secret group to lobby the lifting of sanctions on Iran. The White House lobby operation for Iran was huge, well funded and full of collusion.

Well, there is more to Mr. Pickering.

Panama Papers detail how ex-ambassador helped Russian company

McClatchy:  WASHINGTON ~ MarisaTaylor: As Russian software company Luxoft prepared to offer shares on the U.S. stock market, its executives turned to a well-known U.S. diplomat.

Thomas Pickering, a former U.S. ambassador to Russia who also served as undersecretary of state for political affairs under President Bill Clinton, agreed in May 2013 to be a director of Luxoft Holding Inc. a month before the company’s debut on the New York Stock Exchange.

 

The relationship between Luxoft and Pickering, whose diplomatic career spans six presidents and four decades, is detailed in the massive Panama Papers leak and comes amid a global debate over the role of offshore companies. Luxoft is incorporated in the British Virgin Islands.

Pickering is the highest-level former U.S. official to be identified as involved in a Panama Papers offshore company so far. The papers, which were leaked from the Panama law firm Mossack Fonseca to an international group of reporters, including the International Consortium of Investigative Journalists and McClatchy, have already revealed that former and current world leaders had offshore companies and have led to criminal inquiries around the globe, including in the United States.

However, nothing appears illegal or unethical about Pickering’s role, experts said. Pickering said in an interview that he had disclosed his role on Luxoft’s board to the State Department as required under government ethics rules.

“I disclosed about 150 interests, including that I was on this board,” he said. “It is a Russian company and – obviously for tax reasons or otherwise – incorporated itself in Tortola, the British Virgin Islands. That I knew. And I didn’t see any problem with that.”

He also said he’d donated his compensation from the company to charity.

Luxoft declined to comment. “As a public company we do not respond to unsolicited enquiries of this nature,” Natasha Ziabkina, general counsel of Luxoft Group, wrote in an email to McClatchy. “Any material information about our company is disclosed through our publicly available securities filings.”

Pickering said he’d also disclosed his role and had donated compensation when he served until about four years ago on the board of TMK, a Russian manufacturer and exporter of steel pipes for the oil and gas industry.

 

“I’ve been very careful in my dealings with the boards,” Pickering said.

Pickering said he had been approached to be on Luxoft’s board years before the company went public on the British and American stock exchanges, by a Luxoft executive he’d known while he was senior vice president of international relations for Boeing Co. from 2000 to 2006. Boeing was a client of Luxoft.

“I got to know them and I got to know the man who ran Luxoft,” Pickering said. “Years ago, he said if we go on the London market or on the U.S. would I join their board. I said in principle I would.”

 

After the company went public in London, Pickering said, he looked into the company and decided to join the board. He also serves on Luxoft’s audit committee.

Pickering was appointed director of Luxoft Holding at a time when the company still had ties to one of Russia’s biggest banks, VTB Bank. Rus Lux Limited, the VTB-linked company, had a 10.2 percent stake in Luxoft.

Luxoft has generally performed well since its formation. It was among the best-performing major Russian companies on the New York Stock Exchange in 2014. And earlier this month it reported that its fourth-quarter revenue had increased 23.2 percent over the previous year.

In the Mossack Fonseca documents, Luxoft reassures the law firm in December 2015 that Rus Lux had sold its shares before the U.S government sanctioned VTB in July 2014. The U.S. Treasury Department issued the sanctions against VTB and other Russian banks in response to Russia’s role in the Ukrainian conflict.

“Rus Lux Limited was a minority shareholder a long time ago,” wrote Ziabkina, general counsel of Luxoft Group. “They fully divested and sold their shares in Luxoft Holding in November 2013 before the sanctions took effect.”

New York University law professor Stephen Gillers said he didn’t see any ethical problem with Pickering’s relationship with Luxoft.

“What else is new?” asked Gillers. “Yes, people sometimes use their former government experience to do exactly this.”

Jay Ritter, a University of Florida business professor, said Luxoft’s inclusion of Pickering on its board was not unusual for foreign companies gearing up for an initial public stock offering in the U.S.

“When you’re dealing with a company in Russia – whether they’ve got to set it up in the British Virgin Islands or not, there’s a required leap of faith for investors,” said Ritter, an expert on IPOs. “Appointing someone like Pickering to the board gives a certain amount of credibility because he’s got his personal reputation at stake. Presumably, he doesn’t want to get involved with something that’s obviously sleazy.”

Pickering has served as the U.S. ambassador to the Russian Federation, India, Israel, El Salvador, Nigeria and Jordan, and to the United Nations.

Luxoft also disclosed his role in its public filings with the U.S. Securities and Exchange Commission. The company has its operating headquarters in Switzerland.

State Department spokesman John Kirby declined to comment on the Panama Papers.

Kirby said Pickering was required to file financial disclosure forms with the State Department because he served as one of 25 members of the first Foreign Affairs Policy Board.

The board was launched in December 2011 to provide the secretary of state and senior department officials with independent advice on U.S. foreign policy.

Pickering served a two-year term on the board from December 2011 to December 2013. He returned to the board in 2014 and remains a member. Members of the Foreign Affairs Policy Board do not work full time as members of the board, but in an advisory capacity.

The former ambassador also chaired the Accountability Review Board, which investigated the 2012 fatal attacks in Benghazi, Libya, that killed four Americans, including an ambassador. The panel concluded in its December 2012 report that security at the facility in Benghazi was “grossly inadequate,” leading to the suspension of four State Department officials. They were reinstated by Secretary of State John Kerry in August 2013.

Pickering continued to offer advice to the Obama administration, according to emails that the State Department released during a controversy over Democratic presidential candidate Hillary Clinton’s emails.

Pickering wasn’t compensated for any position, Kirby said.

 

Meanwhile, the Refugee Crisis in Germany

Posted on by

Attacks on refugee homes soar in Germany: official data

BERLIN (AFP) – Germany recorded nearly 1,000 far-right offences targeting refugee shelters last year, a five-fold annual rise amid a record influx of asylum seekers, the government said Monday.

Presenting the figures, Interior Minister Thomas de Maiziere said he did not expect a lull in 2016.

Some 923 offences against refugees and refugee facilities were recorded in 2015, against 175 the previous year, according Interior Ministry statistics on political crime in Germany.

These included 177 acts of violence — including three attempted killings — and hundreds of non-violent acts such as painting graffiti, the use of Nazi symbols and incitements to hatred.

“The refugee topic was of course the focus of politically motivated crime” last year, when Germany took in over one million asylum seekers, the minister told a Berlin press conference.

“A decline in the number of political crimes is not to be expected in 2016 unfortunately,” he said, adding that in this year’s first quarter there had been 347 crimes against refugee centres.

De Maiziere said that in 90 percent of far-right crimes the perpetrators were men, that three quarters were aged 18 to 30, and that most lived close to the crime scene and nearly half were previously unknown to police.

Far-left offences increased by 18 percent in 2015 to 9,600, including 2,246 acts of violence — an increase of nearly 35 percent — mostly targeting right-wing political opponents or police.

**** Forcing a positive spin on a real bad condition where teachers face difficult conditions. A 4 part series.

Inside Syrian Refugee Schools: Syrian Children in Germany

Brookings: Posted on the main entrance to a small village school in Germany is a plain piece of paper with clear black writing. It requests the help of school families to provide for the “new arrivals,” to please send in coats and shoes. At this school, the new arrivals are 14 refugees and asylum seekers. The paper is covered in its entirely with tape, making it waterproof and durable. It is not going anywhere soon.

Despite the permanence with which school staff perceives the presence of refugees and asylum seekers, the situation is anything but stable. On the day that we visited, a new boy arrived from Syria. His hair was slicked back, and he smelled sweetly of his father’s cologne. He joined the 13 other students in this class, set up exclusively for new arrivals. Two of them, a brother and a sister, described traveling almost entirely by foot from Afghanistan. Another Syrian girl told her teacher that the adults on her boat had intentionally punctured it, hoping for rescue and asylum and to avoid refoulement and possible death. The danger of the sea was worth the possibility of safety on dry land in Europe.

In 2015, the German government reported 467,649 formal asylum applications, as well as the arrival of many more as yet unregistered asylum seekers. A much smaller, yet unconfirmed, number of asylum seekers has been granted refugee status, which presents a possible pathway toward permanent residence.

More than one- third of these asylum seekers have origins in Syria. Despite the legal and administrative limbo in which Syrian refugee families find themselves in Germany, all Syrian children with asylum status can access German schools.

As occurs in so many countries with large influxes of refugees and asylum seekers, German schools are now overwhelmed. Schools do not have enough teachers. And, as we documented in Lebanon, teachers in Germany also lack training in how they might meet the needs of their new students, with little knowledge of how to work with language learners or overaged students, or to address issues of trauma. Perhaps they should take Languala German Lessons in Delhi or maybe take online course instead.

However, as we also observe in Lebanon and other refugee-hosting countries, German schools are developing multiple, flexible approaches to educating refugees and asylum seekers. We visited two such models in central Germany: One school integrated the children into existing classrooms and another created a separate classroom for children of all ages.

The first school had been serving migrant children, primarily from Turkey, for decades. The school itself exuded a sense of stability, its golden bricks standing three stories, in stark contrast to the surrounding stucco and concrete of post-war construction. The teacher in the class we observed had more than 10 years of experience working with German language learners and children in economic and legal limbo. She created situations in which children could learn about each other and also about their new home. In a cozy corner of the classroom, on chairs and cushions, students discussed what they did over the weekend. The teacher engaged with what the students shared, patiently explaining a traditional German meal that one student had cooked, what a birthday party might entail, and where a family might go walking. She even explained in Persian when one student did not understand.

The children shared universals experiences as well like Mindcraft, Barbie, and playing with brothers and sisters. When sharing was over, children quietly went back to their seats and took out folders that contained learning materials developed to suit their particular language and developmental stages. The teacher walked around the room, helping where needed, checking in, and tailoring her teaching to the very different needs of each child.

The second school, the same one with the sign asking families to send in coats and shoes, faced a different set of challenges. This school was in a village outside an urban area, close to vacant housing made available to new arrivals. The young principal didn’t have experience with migrant students, but he has made creative use of what’s available. He used funds from various sources to hire a new teacher, who had expertise in teaching German and working with students who have speech difficulties.

This teacher had a classroom full of refugee students from ages 6 to 12. Like the teacher from the first school, she focused her attention on building relationships. The day we visited, she commended a student, who was often late, for arriving at school on time. She placed a gift on the desk of the student whose mother had just had a baby. As a language lesson, she was leading the class in learning the names of the rooms in a house. A beautiful poster of a “typical” German house was at the front of the room and children took turns pointing to the rooms and using verbs to describe the activities that went on in each one. When a student used the verb “sleep” for the living room, the teacher initially said no—the bedrooms were clearly labeled. Staring into confused faces, the teacher seemed to realize that some of the students might indeed sleep in the living room.

It’s scenarios like these that teachers need training and preparation for since refugees and asylum seekers face different circumstances, both at home and in classroom, than other students.

But unlike most countries that host large numbers of refugees and asylum seekers, Germany has a stable education system with students who score among the top in the world on international assessments. Still, educating their newest students will require more teachers and also ongoing training on how to create stable, long-term learning environments where refugees and asylum seekers can thrive.

This VA Secretary STILL Does NOT Get it

Posted on by

In fact Disney does care about wait lines, apparently he has not been to the theme park. While the FBI is overworked, it is high time to open criminal investigations into the Veterans Administration and the FOIA requests need to be flying, this is shameful and disgusting.

VA Secretary: Disney Doesn’t Care About Wait Times, Why Should the VA?

Mediaite: Secretary for Veterans Affairs Robert McDonald had an interesting take on the criticism of long wait times at VA facilities, arguing Monday that Disney theme parks aren’t judged based on their wait times.

McDonald’s remarks, which were made during a breakfast event held by The Christian Science Monitor, started to gain attention after they were tweeted out by attendee Washington Examiner reporter Sarah Westwood.

“When you got to Disney, do they measure the number of hours you wait in line? Or what’s important? What’s important is, what’s your satisfaction with the experience?” McDonald said in the full quote. “And what I would like to move to, eventually, is that kind of measure.”

McDonald continued to say that the “create date” metric, which measures how long a veteran has to wait from the moment they first ask for care, is not a “valid measure” of wait time. Instead, he supports measuring wait times from how long veterans have to wait past their “preferred date” for care.

In 2014, an internal VA investigation found that at least 35 veterans in the Phoenix area died as a result of the long waiting times at the local VA hospital or after being secretly removed from the list entirely.

****

Examiner/Westwood: McDonald’s comments angered House Speaker Paul Ryan, who tweeted out Monday afternoon, “This is not make-believe, Mr. Secretary. Veterans have died waiting in those lines.”

McDonald faced questions at the breakfast about the VA’s lack of transparency surrounding how long veterans must wait to receive care at VA facilities around the country. The agency has weathered controversy over the past several years due to its struggle to provide timely care for many patients.

The VA secretary said most veterans report being satisfied with their care and argued that the average wait time for a veteran seeking VA treatment is only a matter of days.

He said he did not believe a measure called the “create date,” which gauges a veteran’s wait time by counting from the day the veteran first requests care, was a “valid measure” of a veteran’s VA experience.

The Government Accountability Office released a report in April exploring the metric used to count a veterans’ wait time, called the “preferred date.” The measure does not count from the time a veteran first calls to make an appointment.

****

Related: VA bosses in 7 states falsified vets’ wait times for care

The newly released findings of those probes show that supervisors instructed schedulers to manipulate wait times in Arkansas, California, Delaware, Illinois, New York, Texas and Vermont, giving the false impression facilities there were meeting VA performance measures for shorter wait times.

In some cases, the system encouraged manipulation even without explicit instruction from supervisors. A manager in West Palm Beach, Fla., sent out laudatory emails touting the shorter wait times the system showed. Schedulers in Harlingen, Texas, reported being berated by supervisors when they booked appointments showing longer wait times for veterans. (It was “not pretty,” one employee said.) More here.

******

Meanwhile, there is this heartwarming story:

Dying veteran’s horses visit him at hospital to say goodbye

Dying veteran's horses visit him at hospital to say goodbye

Quadrangle: We would like to thank Roberto Gonzales for his service and sacrifice.

As he lay dying in a Veterans Administration hospital he had one wish, to see his beloved horses Sugar and Ringo one last time.

Roberto Gonzales was wounded in battle on May 21, 1970. “He was in Vietnam for a few months when he was shot an injured”, explains his wife, Rosario Gonzalez.

Now, Gonzalez is paralyzed, restricted to a hospital bed and suffering from organ failure.

He recently went to the hospital for a wound on his back, which is when it was discovered he also needed treatment for liver problems and that his kidneys were starting to shut down.

“Horses are his life”, Rosario Gonzales told CNN affiliate KABB.

A paralysed and dying Vietnam War veteran has been reunited with his favourite horses in an emotional final wish.

The visit was also a testament to Roberto’s love of the animals, as both he and his wife trained and raised horses for almost 40 years together.

Two of those animals are Sugar and Ringo, a pair of horses that have become some of Gonzalez’s closest friends. “They came up to him and I think they were actually kissing him”.

 

The Hillary Hacker to Plead Guilty, Iceberg Ahead

Posted on by

Hacker who got some Clinton emails set to plead guilty

Deal could give prosecutors right to question Romanian Marcel Lazar, known online as ‘Guccifer.’

Politico: A Romanian computer hacker who obtained some of Hillary Clinton’s emails by breaking into the account of one of her advisers is expected to plead guilty this week, clearing the way for his unfettered cooperation with federal prosecutors.

Marcel Lazar, who was extradited from Romania in March to face U.S. charges, claimed in interviews aired earlier this month that he also hacked into the Democratic presidential candidate’s personal server. However, that claim has not been verified and a spokesman for Clinton’s presidential campaign has rejected the idea that Lazar ever made it into her server.

Lazar is scheduled to appear in federal court in Alexandria, Va. Wednesday morning for a change of plea hearing, according to court records. A prosecution spokesman and a defense attorney for Lazar did not immediately respond to messages seeking confirmation that the guilty plea is part of a plea bargain with prosecutors. Such deals usually oblige a defendant to assist authorities in all ongoing investigations.

Lazar was indicted in 2014 on nine felony charges stemming from his alleged hack into the emails of several prominent Americans, including former Secretary of State Colin Powell, a relative of former President George W. Bush and George H.W. Bush, and former Clinton adviser Sidney Blumenthal. A set of Blumenthal’s emails were published online in 2013, disclosing a private email address Clinton used. She later changed the address.

Clinton’s email arrangement is the subject of an ongoing FBI investigation, believed to be focused on how email messages deemed classified wound up on her server. Some reports have speculated that Lazar could demonstrate how vulnerable Clinton’s unusual email set-up was to foreign hackers, but it’s unclear how significant that fact would be to a decision about whether to seek criminal charges against Clinton or others involved in creating or using the unofficial email system.

Lazar had been set to go to trial in September.

****

Even as Hillary Clinton tries to put questions about her private email server behind her, the FBI has stepped up inquiries into the security of the former secretary of state’s home-made email system and how aides communicated over email, POLITICO has learned.

The FBI’s recent moves suggest that its inquiry could have evolved from the preliminary fact-finding stage that the agency launches when it receives a credible referral, according to former FBI and Justice Department officials interviewed by POLITICO.

“This sounds to me like it’s more than a preliminary inquiry; it sounds like a full-blown investigation,” said Tom Fuentes, former assistant director of the FBI. “When you have this amount of resources going into it …. I think it’s at the investigative level.”

The FBI declined to respond to questions about the scope of its ongoing work.

But POLITICO learned that around early October, the FBI requested documents from a company involved in the server arrangement after Clinton left State. It also interviewed a former high-ranking

policy official at State about the contents of top Clinton aides’ emails.

The official, who spoke to POLITICO on condition of anonymity, said the questions explored whether anyone at State was concerned about classified information being put at risk by communicating via email. The source did not know of any such concerns.

Confirmation of the interview and document requests is the first public indication that the agency is moving ahead with its inquiry – and possibly expanding it.

The former State official interviewed by the FBI, for example, had little to do with the Clinton server set-up or any approval process allowing her to use personal email for work — suggesting the FBI’s initial inquiry about the actual physical security of Clinton’s home-made server now also includes looking at the content of messages shared by staff.

Former FBI and Justice officials familiar with the investigative procedures on such matters said the agency must determine two main things: whether the use of an outside email system posed any risks to national security secrets and, if so, whether anyone was responsible for exposing classified information.

FBI Director James Comey acknowledged in October that his agency was probing the server matter generally and believed it had the resources to look into the issues, though he didn’t give specifics.

Over the summer, the Department of Justice said it received a referral from the Intelligence Community Inspector General about potentially exposed classified information on Clinton’s home-made email server. The referral, Justice said at the time, was not criminal in nature but focused on the counterintelligence law governing national security secrets.

The matter at the time was considered a “preliminary” inquiry.

Clinton’s campaign and lawyers have said they are cooperating, turning over her server and a thumb drive backup of her messages to the FBI. They’ve also said they’re encouraging everyone who worked on the server issue to do the same. Platte River Networks, the Denver-based company that housed her server since she left State in 2013, for example, has said it’s cooperating; so has Datto, another tech company that provided a cloud backup of Clinton’s messages.

But exactly who they’re talking to at the staff level has been unclear. For example: Cheryl Mills, Clinton’s former chief of staff at State and lawyer who helped determine which of her emails were personal and work related, wouldn’t say in a recent Washington Post interview whether she had been contacted due to confidentiality surrounding the FBI’s work.

The FBI ultimately decides whether to take a preliminary inquiry to a full-fledged investigation — and if it does so, it is under no obligation to say so publicly. The classification level of any compromised information “may be a factor in determining whether an FBI investigation is warranted,” reads an overview of FBI procedures.

In its review of Clinton’s emails, the State Department has classified more than 400 messages so far — materials that would not therefore be allowed on a homemade email system, although Clinton has said that none of them were marked classified at the time she or her staff received or sent them.

POLITICO reported on Friday that some of the original messages that triggered the referral — a couple messages the ICIG said were “top secret,” the most sensitive national security material — were no longer considered that protected.

Sources told POLITICO this week that as of a month ago, the Justice Department had not determined how to proceed with Bryan Pagliano, Clinton’s top IT expert who oversaw her server but took the Fifth and refused to answer questions when subpoenaed by Congress earlier this year.

Republican lawmakers have weighed an immunity agreement for Pagliano, which would bar him from prosecution and allow him to talk about what he knew of the server: who approved it, why and the security surrounding the system.

His lawyer, reached Thursday, would not confirm whether he’s even been contacted by the FBI.

The agency has asked for documents from Tania Neild, the New York-based technology broker for millionaires, who put the Clintons in touch with Platte River Networks.

Neild confirmed the FBI request in an interview with POLITICO, saying the agency asked her to appear with written documents relating to the advice she gave to her client about negotiating with Platte River. Her company, InfoGrate, acts as a middle man between high-worth individuals and companies that oversee their personal technologies, such as emails.

Neild operates under a confidentiality agreement with all her clients. She said the nondisclosure arrangement precluded her from cooperating with the Senate Homeland Security Committee, which is also investigating the server issue and reached out to her for an interview. But the FBI notice, she said, trumped her confidentiality agreement.

Her lawyer would not confirm any contact they may or may not have had with the Department of Justice or the FBI.

“What we did receive were inquiries from [the Senate Homeland Committee] that are looking into various things,” said Ron Safer, of Chicago’s Schiff Hardin. “And whether we have had communications with anybody else, I really can’t say at this point.”

Due to secrecy surrounding any FBI investigation, it is impossible to know exactly where the FBI stands. And since the issue involves the 2016 Democratic front-runner, the work is even more sensitive.

Ron Hosko, former assistant director of the FBI’s Criminal Investigation Division, said Justice is likely worried about issuing formal legal notices “because they know it will get out, and then you’re talking about a grand jury investigation.” But he said it’s “not uncommon” for companies to require subpoenas, court orders or other legal notices to cooperate to save their corporate reputation, which could otherwise be jeopardized for sharing personal information.

“I am sure there is hand-wringing and gnashing of teeth across the street at the Hoover Building because you’re going to have people saying ‘I don’t want to produce X documents. Give me a piece of paper that covers me.’ And that’s where push is going to come to shove,” Hosko said.

 

 

 

 

 

 

Is the Trump Campaign/GOP Going to Be Hurt By This?

Posted on by

Could this keep the Donald from obtaining security clearance? Will there be some extortion cases as he is the nominee?

This site has published previous articles on Felix Sater knowing there was a potential for some yet unknown Trump history. What is also concerning is the Washington Post has a team looking into Trump’s entire background and they are doing the same with Hillary. The item below was performed by Politico. Further, both Hillary and Donald have huge unfavorable and are beginning to have some parallel dark histories. This is looking bad for the future of who the next president will be but will the electorate on both sides just look the other way, justify their candidate(s) and push them into the Oval Office?

How did we get here?

Just What Were Donald Trump’s Ties to the Mob?

I’ve spent years investigating, and here’s what’s known.

By David Cay Johnston

Politico: In his signature book, The Art of the Deal, Donald Trump boasted that when he wanted to build a casino in Atlantic City, he persuaded the state attorney general to limit the investigation of his background to six months. Most potential owners were scrutinized for more than a year. Trump argued that he was “clean as a whistle”—young enough that he hadn’t had time to get into any sort of trouble. He got the sped-up background check, and eventually got the casino license.

Donald Trump, Mayor Ed Koch, and Roy Cohn attend the Trump Tower opening in October 1983.

But Trump was not clean as a whistle. Beginning three years earlier, he’d hired mobbed-up firms to erect Trump Tower and his Trump Plaza apartment building in Manhattan, including buying ostensibly overpriced concrete from a company controlled by mafia chieftains Anthony “Fat Tony” Salerno and Paul Castellano. That story eventually came out in a federal investigation, which also concluded that in a construction industry saturated with mob influence, the Trump Plaza apartment building most likely benefited from connections to racketeering. Trump also failed to disclose that he was under investigation by a grand jury directed by the U.S. attorney in Brooklyn, who wanted to learn how Trump obtained an option to buy the Penn Central railroad yards on the West Side of Manhattan.

Why did Trump get his casino license anyway? Why didn’t investigators look any harder? And how deep did his connections to criminals really go?

These questions ate at me as I wrote about Atlantic City for The Philadelphia Inquirer, and then went more deeply into the issues in a book, Temples of Chance: How America Inc. Bought Out Murder Inc. to Win Control of the Casino Business. In all, I’ve covered Donald Trump off and on for 27 years, and in that time I’ve encountered multiple threads linking Trump to organized crime. Some of Trump’s unsavory connections have been followed by investigators and substantiated in court; some haven’t. And some of those links have continued until recent years, though when confronted with evidence of such associations, Trump has often claimed a faulty memory. In an April 27 phone call to respond to my questions for this story, Trump told me he did not recall many of the events recounted in this article and they “were a long time ago.” He also said that I had “sometimes been fair, sometimes not” in writing about him, adding “if I don’t like what you write, I’ll sue you.”

I’m not the only one who has picked up signals over the years. Wayne Barrett, author of a 1992 investigative biography of Trump’s real-estate dealings, has tied Trump to mob and mob-connected men.

No other candidate for the White House this year has anything close to Trump’s record of repeated social and business dealings with mobsters, swindlers, and other crooks. Professor Douglas Brinkley, a presidential historian, said the closest historical example would be President Warren G. Harding and Teapot Dome, a bribery and bid-rigging scandal in which the interior secretary went to prison. But even that has a key difference: Harding’s associates were corrupt but otherwise legitimate businessmen, not mobsters and drug dealers.

This is part of the Donald Trump story that few know. As Barrett wrote in his book, Trump didn’t just do business with mobbed-up concrete companies: he also probably met personally with Salerno at the townhouse of notorious New York fixer Roy Cohn, in a meeting recounted by a Cohn staffer who told Barrett she was present. This came at a time when other developers in New York were pleading with the FBI to free them of mob control of the concrete business.

From the public record and published accounts like that one, it’s possible to assemble a clear picture of what we do know. The picture shows that Trump’s career has benefited from a decades-long and largely successful effort to limit and deflect law enforcement investigations into his dealings with top mobsters, organized crime associates, labor fixers, corrupt union leaders, con artists and even a one-time drug trafficker whom Trump retained as the head of his personal helicopter service.

Now that he’s running for president, I pulled together what’s known – piecing together the long history of federal filings, court records, biographical anecdotes, and research from my and Barrett’s files. What emerges is a pattern of business dealings with mob figures—not only local figures, but even the son of a reputed Russian mob boss whom Trump had at his side at a gala Trump hotel opening, but has since claimed under oath he barely knows.

Neither Trump’s campaign spokesperson, Hope Hicks, nor Jason Greenblatt, the executive vice president and chief legal officer at the Trump Organization, responded to several emailed requests for comment on the issues raised in this article.

Here, as close as we can get to the truth, is what really happened.

Anthony 'Fat Tony' Salerno, boss of the Genovese Crime Family, is photographed leaving the U.S. federal courthouse in Manhattan, New York, on February 28, 1985 after his arraignment for two counts of racketeering. | Getty

***

After graduating in 1968 from the University of Pennsylvania, a rich young man from the outer boroughs of New York City sought his fortune on the island of Manhattan. Within a few years Donald J. Trump had made friends with the city’s most notorious fixer, lawyer Roy Cohn, who had become famous as lead counsel to Senator Joseph McCarthy. Among other things Cohn was now a mob consigliere, with clients including “Fat Tony” Salerno, boss of the Genovese crime family, the most powerful Mafia group in New York, and Paul Castellano, head of what was said to be the second largest family, the Gambinos.

This business connection proved useful when Trump began work on what would become Trump Tower, the 58-story high-rise where he still lives when he’s not at his Florida estate.

There was something a little peculiar about the construction of Trump Tower, and subsequent Trump projects in New York. Most skyscrapers are steel girder construction, and that was especially true in the 1980s, says John Cross of the American Iron & Steel Institute. Some use pre-cast concrete. Trump chose a costlier and in many ways riskier method: ready-mix concrete. Ready-mix has some advantages: it can speed up construction, and doesn’t require costly fireproofing. But it must be poured quickly or it will harden in the delivery truck drums, ruining them as well as creating costly problems with the building itself. That leaves developers vulnerable to the unions: the worksite gate is union controlled, so even a brief labor slowdown can turn into an expensive disaster.

Salerno, Castellano and other organized crime figures controlled the ready-mix business in New York, and everyone in construction at the time knew it. So did government investigators trying to break up the mob, urged on by major developers such as the LeFrak and Resnick families. Trump ended up not only using ready-mix concrete, but also paying what a federal indictment of Salerno later concluded were inflated prices for it – repeatedly – to S & A Concrete, a firm Salerno and Castellano owned through fronts, and possibly to other mob-controlled firms. As Barrett noted, by choosing to build with ready-mix concrete rather than other materials, Trump put himself “at the mercy of a legion of concrete racketeers.”

Paul Castellano, boss of the Gambino Crime Family, is photographed arriving for the trial on February 27, 1985 at the U.S. Federal Courthouse in Manhattan, New York City. | Getty

Salerno and Castellano and other mob families controlled both the concrete business and the unions involved in delivering and pouring it. The risks this created became clear from testimony later by Irving Fischer, the general contractor who built Trump Tower. Fischer said concrete union “goons” once stormed his offices, holding a knife to throat of his switchboard operator to drive home the seriousness of their demands, which included no-show jobs during construction of Trump Tower.

But with Cohn as his lawyer, Trump apparently had no reason to personally fear Salerno or Castellano—at least, not once he agreed to pay inflated concrete prices. What Trump appeared to receive in return was union peace. That meant the project would never face costly construction or delivery delays.

The indictment on which Salerno was convicted in 1988 and sent to prison, where he died, listed the nearly $8 million contract for concrete at Trump Plaza, an East Side high-rise apartment building, as one of the acts establishing that S &A was part of a racketeering enterprise. (While the concrete business was central to the case, the trial also proved extortion, narcotics, rigged union elections and murders by the Genovese and Gambino crime families in what Michael Chertoff, the chief prosecutor, called “the largest and most vicious criminal business in the history of the United States.”)

FBI agents subpoenaed Trump in 1980 to ask about his dealing with John Cody, a Teamsters official described by law enforcement as a very close associate of the Gambino crime family. The FBI believed that Cody previously had obtained free apartments from other developers. FBI agents suspected that Cody, who controlled the flow of concrete trucks, might get a free Trump Tower apartment. Trump denied it. But a female friend of Cody’s, a woman with no job who attributed her lavish lifestyle to the kindness of friends, bought three Trump Tower apartments right beneath the triplex where Donald lived with his wife Ivana. Cody stayed there on occasion and invested $500,000 in the units. Trump, Barrett reported, helped the woman get a $3 million mortgage without filling out a loan application or showing financials.

In the summer of 1982 Cody, then under indictment, ordered a citywide strike—but the concrete work continued at Trump Tower. After Cody was convicted of racketeering, imprisoned and lost control of the union, Trump sued the woman for $250,000 for alteration work. She countersued for $20 million and in court papers accused Trump of taking kickbacks from contractors, asserting this could “be the basis of a criminal proceeding requiring an attorney general’s investigation” into Trump. Trump then quickly settled, paying the woman a half-million dollars. Trump said at the time and since then that he hardly knew those involved and there was nothing improper his dealings with Cody or the woman.

***

There were other irregularities in Trump’s first big construction project. In 1979, when Trump hired a demolition contractor to take down the Bonwit Teller department store to make way for Trump Tower, he hired as many as 200 non-union men to work alongside about 15 members of the House Wreckers Union Local 95. The non-union workers were mostly illegal Polish immigrants paid $4 to $6 per hour with no benefits, far below the union contract. At least some of them did not use power tools but sledgehammers, working 12 hours a day or more and often seven days a week. Known as the “Polish brigade,” many didn’t wear hard hats. Many slept on the construction site.

Normally the use of nonunion workers at a union job site would have guaranteed a picket line. Not at this site, however. Work proceeded because the Genovese family principally controlled the union; this was demonstrated by extensive testimony, documents and convictions in federal trials, as well as a later report by the New York State Organized Crime Task Force.

When the Polish workers and a union dissident sued for their pay and benefits, Trump denied any knowledge that illegal workers without hard hats were taking down Bonwit with sledgehammers. The trial, however, demonstrated otherwise: Testimony showed that Trump panicked when the nonunion Polish men threatened a work stoppage because they had not been paid. Trump turned to Daniel Sullivan, a labor fixer and FBI informant, who told him to fire the Polish workers.

Trump knew the Polish brigade was composed of underpaid illegal immigrants and that S&A was a mob-owned firm, according to Sullivan and others. “Donald told me that he was having his difficulties and he admitted to me that — seeking my advice — that he had some illegal Polish employees on the job. I reacted by saying to Donald that ‘I think you are nuts,'” Sullivan testified at the time. “I told him to fire them promptly if he had any brains.” In an interview later, Sullivan told me the same thing.

In 1991, a federal judge, Charles E. Stewart Jr., ruled that Trump had engaged in a conspiracy to violate a fiduciary duty, or duty of loyalty, to the workers and their union and that the “breach involved fraud and the Trump defendants knowingly participated in his breach.” The judge did not find Trump’s testimony to be sufficiently credible and set damages at $325,000. The case was later settled by negotiation, and the agreement was sealed.

While Trump’s buildings were going up in Manhattan, he was entering a highly regulated industry in New Jersey – one that had the responsibility, and the means, to investigate him and bring the facts to light.

From the beginning, Trump tried to have it both ways. While he leveraged Roy Cohn’s mob contacts in New York, he was telling the FBI he wanted nothing to do with organized crime in Atlantic City, and even proposed putting an undercover FBI agent in his casinos. In April of 1981, when he was considering building a New Jersey casino, he expressed concern about his reputation in a meeting with the FBI, according to an FBI document in my possession and which the site Smoking Gun also posted. “Trump advised Agents that he had read in the press media and had heard from various acquaintances that Organized Crime elements were known to operate in Atlantic City,” the FBI recorded. “Trump also expressed at this meeting the reservation that his life and those around him would be subject to microscopic examination. Trump advised that he wanted to build a casino in Atlantic City but he did not wish to tarnish his family’s name.”

Part of the licensing process was supposed to be a deep investigation into his background, taking more than a year for would-be casino owners, but Trump managed to cut that short. As he told the story in The Art of the Deal, in 1981 he threatened to not build in Atlantic City unless New Jersey’s attorney general, John Degnan, limited the investigation to six months. Degnan was worried that Trump might someday get approval for a casino at the Grand Hyatt Hotel in Manhattan, which could have crushed Atlantic City’s lucrative gaming industry, so Degnan agreed to Trump’s terms. Trump seemingly paid Degnan back by becoming an ardent foe of gambling anywhere in the East except Atlantic City—a position that obviously protected his newfound business investment as well, of course.

Trump was required to disclose any investigations in which he might have been involved in the past, even if they never resulted in charges. Trump didn’t disclose a federal grand jury inquiry into how he obtained an option to buy the Penn Central railroad yards on the West Side of Manhattan. The failure to disclose either that inquiry or the Cody inquiry probably should have disqualified Trump from receiving a license under the standards set by the gaming authorities.

Once Trump was licensed in 1982, critical facts that should have resulted in license denial began emerging in Trump’s own books and in reports by Barrett—an embarrassment for the licensing commission and state investigators, who were supposed to have turned these stones over. Forced after the fact to look into Trump’s connections, the two federal investigations he failed to reveal and other matters, the New Jersey Division of Gaming Enforcement investigators circled the wagons to defend their work. First they dismissed as unreliable what mobsters, corrupt union bosses and Trump’s biggest customer, among others, had said to Barrett, to me and other journalists and filmmakers about their dealings with Trump. The investigators’ reports showed that they then put Trump under oath. Trump denied any misconduct or testified that he could not remember. They took him at his word. That meant his casino license was secure even though others in the gambling industry, including low-level licensees

like card dealers, had been thrown out for far less.

This lapse illustrated a fundamental truth about casino regulation at the time: Once the state licensed an owner, the Division of Gaming Enforcement had a powerful incentive not to overturn its initial judgment. State officials recited like a mantra their promise that New Jersey casinos were the most highly regulated business in American history, more tightly regulated than nuclear power plants. In Temples of 

Chance I showed that this reputation often owed less to careful enforcement than to their willingness to look the other way when problems arose.

***

In 1986, three years after Trump Tower opened, Roy Cohn was disbarred for attempting to steal from a client, lying and other conduct that an appellate court found “particularly reprehensible.”

Trump testified that Cohn, who was dying from AIDS, was a man of good character who should keep his license to practice law.

This was not the only time Trump went to bat publicly for a criminal. He has also spoken up for Shapiro and Sullivan. And then there was the case of Joseph Weichselbaum, an embezzler who ran Trump’s personal helicopter service and ferried his most valued clientele.

Trump and Weichselbaum were so close, Barrett reported in his book, that Weichselbaum told his parole officer about how he knew Trump was hiding his mistress, Marla Maples, from his first wife, Ivana, and tried to persuade Trump to end their years-long affair.

Trump’s casinos retained Weichselbaum’s firm to fly high rollers to Atlantic City. Weichselbaum was indicted in Ohio on charges of trafficking in marijuana and cocaine. The head of one of Trump’s casinos was notified of the indictment in October 1985, but Trump continued using Weichselbaum—conduct that again could have cost Trump his casino license had state regulators pressed the matter, because casino owners were required to distance themselves from any hint of crime. Just two months later Trump rented an apartment he owned in the Trump Plaza apartment building in Manhattan to the pilot and his brother for $7,000 a month in cash and flight services. Trump also continued paying Weichselbaum’s firm even after it went bankrupt.

Weichselbaum, who in 1979 had been caught embezzling and had to repay the stolen money, pleaded guilty to two felonies.

Donald Trump vouched for Weichselbaum before his sentencing, writing that the drug trafficker is “a credit to the community” who was “conscientious, forthright, and diligent.” And while Weichselbaum’s confederates got as many as 20 years, Weichselbaum himself got only three, serving 18 months before he was released from the urban prison that the Bureau of Prisons maintains in New York City. In seeking early release, Weichselbaum said Trump had a job waiting for him.

Weichselbaum then moved into Trump Tower, his girlfriend having recently bought two adjoining apartments there for $2.4 million. The cash purchase left no public record of whether any money actually changed hands or, if it did, where it came from. I asked Trump at the time for documents relating to the sale; he did not respond.

As a casino owner, Trump could have lost his license for associating with Weichselbaum. Trump has never been known to use drugs or even drink. What motivated him to risk his valuable license by standing up for a drug trafficker remains unclear to this day.

Trump, in his phone call to me, said he “hardly knew” Weichselbaum.

***

The facts above come from court records, interviews and other documents in my own files and those generously made available by Barrett, who was the first journalist to take a serious investigative look at Trump. Our files show Trump connected in various deals to many other mobsters and wise guys.

There was, for example, Felix Sater, a senior Trump advisor and son of a reputed Russian mobster, whom Trump kept on long after he was convicted in a mob-connected stock swindle. And there was Bob Libutti, a racehorse swindler who was quite possibly Trump’s biggest customer at the casino tables at the time. Libutti told me and others about arrangements that went beyond the “comps”—free hotel rooms and services, for example—that casinos can legally give to high-rollers. Among these was a deal to sell Trump a less-than-fit horse at the inflated price of $500,000, though Trump backed out at the last minute. Libutti accused Trump of making an improper $250,000 payment to him, which would have cost Trump his license. The DGE dismissed Libutti as unreliable and took Trump at his word when he denied the allegations. (Libutti was a major figure in my 1992 book Temples of Chance.)

Some of the dealings came at a remove. In Atlantic City, Trump built on property where mobsters controlled parts of the adjoining land needed for parking. He paid $1.1 million for about a 5,000-square-foot lot that had been bought five years earlier for just $195,000. The sellers were Salvy Testa and Frank Narducci Jr., a pair of hitmen for Atlantic City mob boss Nicky Scarfo who were known as the Young Executioners. For several adjoining acres, Trump ignored the principal owner of record and instead negotiated directly in a deal that also likely ended up benefiting the Scarfo mob. Trump arranged a 98-year lease deal with Sullivan, the FBI informant and labor fixer, and Ken Shapiro, described in government reports as Scarfo’s “investment banker.” Eventually the lease was converted into a sale after the Division of Gaming Enforcement

objected to Sullivan and Shapiro being Trump’s landlords.

Trump later boasted in a sworn affidavit in a civil case that he made the deals himself, his “unique contribution” making the land deals possible. In formal hearings Trump later defended Sullivan and Shapiro as “well thought of.” Casino regulators thought otherwise, and banned Sullivan and Shapiro from the casino industry. But the Casino Control Commission was never asked to look into FBI reports that Trump was involved, via Shapiro, in the payoffs at the time of the land deals that resulted in Mayor Michael Mathews going to prison.

Thanks in part to the laxity of New Jersey gaming investigators, Trump has never had to address his dealings with mobsters and swindlers head-on. For instance, Barrett reported in his book that Trump was believed to have met personally with Salerno at Roy Cohn’s townhouse; he found that there were witnesses to the meeting, one of whom kept detailed notes on all of Cohn’s contacts. But instead of looking for the witnesses (one of whom had died) and the office diary one kept, the New Jersey Division of Gaming Enforcement (DGE) took an easier path. They put Trump under oath and asked if he had ever attended such a meeting. Trump denied it. The inquiry ended.

Taking Trump at his word that he never met with the mobsters in Cohn’s townhouse saved the casino investigators from having to acknowledge their earlier failure—that from the start, they had never properly investigated Trump and his connections to criminals. They certainly had the leverage to push harder if they chose. Indeed, two of the five Casino Control commissioners in 1991 declared that the DGE showed official favoritism to Trump. Commissioner David Waters complained that DGE did not go nearly far enough in seeking a $30,000 fine against Trump for taking an illegal loan from his father, which could be grounds to revoke Trump’s casino licenses. Waters called it “an outrage that the Division of Gaming Enforcement would take this position and fail to carry out what I understand to be its responsibility to enforce the provisions of the Casino Control Act.”

***

Even after he got his license, Trump continued to have relationships that should have prompted inquiries. For example, he made a deal to have Cadillacs dolled up with fancy interiors and exteriors beginning in 1988, marketing them as Trump Golden Series and Trump Executive Series limousines. The modifications were made at the Dillinger Coach Works, which was owned by a pair of convicted felons, convicted extortionist Jack Schwartz and convicted thief John Staluppi, who was so close to mobsters that he was invited to the wedding of a mob capo’s daughter. New York liquor regulators proved tougher than those in New Jersey, denying Staluppi, a rich car dealer, a license because of his rap sheet and his extensive dealings with mobsters, as Barrett’s former reporting partner Bill Bastone found in public records. So why did Trump repeatedly do business with mob owned businesses and mob-controlled unions? Why go down the aisle with an expensive mobbed-up concrete firm when other options were available?

“Why’d Donald do it?” Barrett said when I put the question to him. “Because he saw these mob guys as pathways to money, and Donald is all about money.”

From a $400 million tax giveaway on his first big project, to getting a casino license, to collecting fees for putting his name on everything from bottled water and buildings to neckties and steaks, Trump’s life has been dedicated to the next big score. Through Cohn, Trump made choices that—gratuitously, it appears—resulted in his first known business dealings with mob-controlled companies and unions, a pattern that continued long after Cohn died.

What Trump has to say about the reasons for his long, close and wide-ranging dealings with organized crime figures, with the role of mobsters in cheating Trump Tower workers, his dealings with Felix Sater and Trump’s seeming leniency for Weichselbaum, are questions that voters deserve full answers about before casting their ballots.