Bayrock in Money Laundering Scheme

Trump business partner accused of involvement in Dutch-based money laundering scheme

  • sater-en-trump

    Dutch letter box companies implicated in million-dollar fraud

    The American real estate development company Bayrock, through which Donald Trump constructed hotels and apartment complexes, used Dutch letter box companies in a network suspected of being involved in money laundering. A ZEMBLA investigation suggests that Bayrock siphoned off $1.5 million dollars by setting up a corporate structure in the Netherlands in 2007. In New York, Bayrock also stands accused of large-scale tax fraud. This incriminating information could place Donald Trump in an extremely difficult position, claims attorney F. Oberlander, who is prosecuting Bayrock on behalf of the State of New York: “The maximum jail term would be 30 years. So you’re in really serious trouble.”

    In 2005, Donald Trump became 18% owner of an hotel-condominium known as Trump SoHo. Bayrock, the other owner, is accused of perpetrating fraud on a grand scale through, among other things, Trump SoHo. According to US law, this means that Trump is jointly liable for Bayrock’s criminal activities. Oberlander concludes:
    “Anybody running a business through a pattern of crime is guilty of racketeering. Anybody knowing what they’re doing and are helping is guilty of racketeering conspiracy. They go to jail.”

    All Bayrock wants is to make clear to ZEMBLA that the Dutch corporate construction was established on the advice of an external legal counsel. ZEMBLA discovers that the firm in question is Bracewell & Giuliani. Rudy Giuliani, the former mayor of New York, and part owner of the law firm at the time, is also a Trump confidante. ZEMBLA has access to correspondence between the law firm and the Dutch director of a trust company in Amsterdam, which leaves no doubt as to the ultimate beneficiary owners of the Dutch business construction: the director of Bayrock and the Khrapunov family from Kazakhstan.

    Viktor Khrapunov is a fugitive ex-mayor and governor from Kazakhstan. The Kazakhstan government accuses Khrapunov of embezzling hundreds of millions of state assets. In 2007, Bayrock and the Khrapunov family founded the Dutch joint venture KazBay B.V. ZEMBLA has copies of the act of incorporation, bank statements and internal communications showing how the suspected money laundering scheme was set up. “It was designed to get millions of dollars out of New York into Europe. Through KazBay. KazBay was just a conduit”, asserts attorney Oberlander.

    The Dutch director of KazBay B.V. tells ZEMBLA that he has no knowledge of his clients’ dubious backgrounds. In 2007, the year that the Dutch letter box companies were established, Viktor Khrapunov’s alleged criminal dealings become public knowledge. Around the same time, it also becomes clear that Felix Sater, one of the Bayrock owners, has concealed his criminal past and mafia connections.

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    For years, the Dutch Central Bank has been concerned that Dutch trust companies are failing to comply with legislation. Over half of the companies investigated by the Dutch Central Bank are in breach of the regulations, such as subjecting their clients to rigorous screening. Investigations performed by the supervisory body reveal that hundreds of politicians from Russia and Kazakhstan make use of Dutch trust companies. Frank Elderson, director of the Dutch Central Bank: “There are no legal stipulations forcing you to do business with a former political hot-shot from Russia or any other high risk nation.”

    Six months ago, the Financial Times reported that, in 2013, the Khrapunov family had bought three apartments in Trump SoHo to the tune of 3.1 million dollars. A sale from which Trump benefitted as joint owner. The White House, the Trump Organization and Viktor Khrapunov decline to answer ZEMBLA’s questions. In the episode ‘The Dubious Friends of Donald Trump: Part 1 – the Russians’, ZEMBLA explores the possible implications of these shady business dealings for the United States’ 45th president.

     

*** More on the letter box issue:  Related reading/ EU to close ‘letterbox’ company tax loopholes

“Nearly one-third of all foreign profits reported by US corporations in 2003 came from just three small, low-tax countries: Bermuda, the Netherlands, and Ireland,” said a White House factsheet in 2009. Like the Queen in Shakespeare’s ‘Hamlet’ who protested that ‘The lady doth protest too much, methinks,’ the Dutch government hypocritically objected to the Netherlands being dubbed a tax haven and the White House deleted the line. The Dutch tax haven, has about 20,000 letter-box companies and in recent years, Facebook joined U2, the Irish rock group, to avail of the system. The Netherlands also hosts thousands of foreign financial vehicles. Bloomberg reports that a bookkeeper’s home office in Amsterdam, doubles as the headquarters for a Yahoo! Inc. offshore unit.  It says as a deficit-strapped Europe raises retirement ages and taxes on the working class, the Netherlands’ role as a $13tn relay station on the global tax-avoiding network is prompting a backlash.

Bloomberg says that attracted by the Netherlands’ lenient policies and extensive network of tax treaties, companies such as Yahoo, Google, Merck & Co and Dell have moved profits through the country. Using techniques with nicknames such as the “Dutch Sandwich,” multinational companies routed €10.2tn in 2010 through 14,300 Dutch “special financial units,” according to the Dutch Central Bank. Such units often only exist on paper, as is allowed by law.

Google, IBM and Italian oil and gas group ENI head the list of companies using letter-box companies to cut their Dutch tax bills to between 0 and 5%, the Volkskrant daily said last week.

Covert Operations Training for N. Korea Nuclear Sites?

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As Iran attempted to launch a cruise missile from a submarine in the Strait of Hormuz on Tuesday, the test failed, two U.S. officials told Fox News.

An Iranian Yono-class “midget” submarine conducted the missile launch. North Korea and Iran are the only two countries in the world that operate this type of submarine.

In February, Iran claimed to have successfully tested a submarine-launched missile. It was not immediately clear if Tuesday’s test was the first time Iran had attempted to launch a missile underwater from a submarine.

CHINA has called for all of its citizens to return from North Korea immediately as a US citizen is detained for allegedly trying to overthrow the country’s regime.

The Korea Times reports that the Chinese embassy in North Korea began advising Korean-Chinese residents to return to China.

A Korean-Chinese citizen told Radio Free Asia he was advised to ‘stay a while’ in China, and stated: ‘The embassy has never given such a warning. I was worried and left the country in a hurry.’

But he said most Chinese citizens in North Korea had opted not to heed the warning. More here.

US Commandos Set to Counter North Korean Nuclear Sites

Neutralizing Pyongyang’s nuclear, chemical arms warfighting priority, SOCOM commander says

Gertz: U.S. special operations forces are set to conduct operations against North Korean nuclear, missile, and other weapons of mass destruction sites in any future conflict, the commander of Special Operations Command told Congress Tuesday.

Army Gen. Raymond A. Thomas stated in testimony to a House subcommittee that Army, Navy, and Air Force commandos are based both permanently and in rotations on the Korean peninsula in case conflict breaks out.

The special operations training and preparation is a warfighting priority, Thomas said in prepared testimony. There are currently around 8,000 special operations troops deployed in more than 80 countries.

“We are actively pursuing a training path to ensure readiness for the entire range of contingency operations in which [special operations forces], to include our exquisite [countering weapons of mass destruction] capabilities, may play a critical role,” he told the subcommittee on emerging threats.

“We are looking comprehensively at our force structure and capabilities on the peninsula and across the region to maximize our support to U.S. [Pacific Command] and [U.S. Forces Korea]. This is my warfighting priority for planning and support.”

Disclosure of the commander’s comments comes as tensions remain high on the peninsula. President Trump has vowed to deal harshly with North Korea should another underground nuclear test be carried out. Test preparations have been identified in recent weeks, U.S. officials have said.

Trump said on Sunday that China appears to be pressuring North Korea but that he would be upset if North Korea carries out another nuclear test.

“If he does a nuclear test, I will not be happy,” he said on CBS Face the Nation. Asked if his unhappiness would translate into a U.S. military response, Trump said: “I don’t know. I mean, we’ll see.”

Gen. Thomas’ testimony did not include details of what missions the commandos would carry out.

A spokesman for the Special Operations Command referred questions about potential operations in Korea to the Pacific Command.

Special forces troops would be responsible for locating and destroying North Korean nuclear weapons and missile delivery systems, such as mobile missiles. They also would seek to prevent the movement of the weapons out of the country during a conflict.

Additionally, special operations commandos could be used for operations to kill North Korean leaders, such as supreme leader Kim Jong Un and other senior regime figures.

Special operations missions are said by military experts to include intelligence gathering on the location of nuclear and chemical weapons sites for targeting by bombers. They also are likely to include direct action assaults on facilities to sabotage the weapons, or to prevent the weapons from being stolen, or set off at the sites by the North Koreans.

A defense official said U.S. commandos in the past have trained for covert operations against several types of nuclear facilities, including reactors and research centers. Scale models of some North Korean weapons facilities have been built in the United States for practice operations by commandos.

The most secret direct action operations would be carried out by special units, such as the Navy’s Seal Team Six or the Army’s Delta Force.

Thomas said the command in January took over the role of coordinating Pentagon efforts to counter weapons of mass destruction from the Strategic Command. The mission includes stopping the spread of weapons of mass destruction and dealing with the aftermath of such weapons’ use.

North Korea is believed to have around 20 nuclear devices and is developing nuclear warheads small enough to be carried on long-range missiles. It also has stockpiles of chemical weapons and biological warfare agents.

Many of North Korea’s nuclear facilities are believed to be located underground in fortified locations spread around the country.

The last rotation of special operations forces to South Korea took place in February when parts of the 1st Special Forces Group (Airborne) and the 75th Ranger Regiment joined South Korean troops for training.

The training took place in mountainous parts of South Korea in a bid to simulate the rough terrain commandos would experience during operations in North Korea. Other training took place on the seas.

Gen. Thomas, in his testimony, identified North Korea as one of five “current and enduring” military threats outlined in a new military strategy produced by Marine Corps Gen. Joseph Dunford, chairman of the Joint Chiefs of Staff.

The four other threats are terrorism, Russia, Iran, and China.

Asked about the new strategy, a Joint Chiefs of Staff spokesman said the latest national military strategy is secret. “A classified [National Military Strategy] will make it more difficult for adversaries to develop counter-strategies and also enables the chairman to give the best military advice to the president and secretary of defense,” Navy Capt. Greg Hicks said.

The command “has recently focused more intently on the emerging threat that is of growing concern to us as well as most of our DoD teammates—the nuclear threat of an increasingly rogue North Korea,” Thomas said.

“Although previously viewed as a regional threat, North Korea’s relentless pursuit of nuclear weapons and intercontinental ballistic missiles, facilitated by a trans-regional network of commercial, military, and political connections, make it a threat with global implications,” the four-star general added.

South Korea’s special operations forces are said to be highly trained but lack the advanced equipment used by American commandos, such as stealth helicopters and aircraft as well as other high technology and advanced weaponry.

A Pentagon report on North Korea’s military published in February 2016 states that North Korea continues to advance its nuclear program.

The North Koreans announced in September 2015 that the nuclear facilities at Yongbyon including a uranium enrichment plant and a reactor that were upgraded for the purpose of building nuclear forces, the report said.

Pacific Command commander Adm. Harry Harris said in congressional testimony last week that North Korea is an immediate threat to the security of the United States and the Asia Pacific region.

“With every test, Kim Jong Un moves closer to his stated goal of a preemptive nuclear strike capability against American cities, and he’s not afraid to fail in public,” Harris said.

Navy Restricted on FON, S. China Sea

The United States Navy has yet to send a ship within 12 miles of any disputed islands in the South China Sea under President Donald Trump.

Although Trump said during his presidential campaign that former President Barack Obama had been weak defending international waters from China, he has yet to increase Navy patrols in the region to cut off the country’s access to the artificial islands.

Image result for china disputed islands BusinessInsider

In an interview with The New York Times in March of last year, Trump said those islands built by China were “a military fortress, the likes of which perhaps the world has not seen.”

“Amazing, actually,” he added. “They do that at will because they have no respect for our president and they have no respect for our country.”

Freedom of navigation operations, known as Fonops, have not increased under Trump despite “all of the language, combined with the fact that the Republican foreign policy establishment had been critical of Obama for not carrying out enough Fonops, means there was a wide expectation that Trump would put down a marker early,” Kissinger Institute director Robert Daly told the Times.

“And that hasn’t happened.”

Upon entering office, Secretary of State Rex Tillerson called China’s island-building “akin to Russia’s taking of Crimea,” and that Trump’s administration was “going to have to send China a clear signal that, first, the island-building stops” and, “second, your access to those islands also is not going to be allowed.”

Anonymous Defense Department officials told the Times that Pacific Command asked for a naval excursion inside 12 nautical miles of Scarborough Shoal to show Beijing that island-building is a red line.

The officials added that this appeared in-line with the Trump administration’s wishes, though they also said that Defense Secretary James Mattis and Pentagon officials are reviewing the effects of these excursions on national security policy.

*** Image result for china disputed islands  Freedom of Navigation Fact Sheet found here.

China’s claim to nearly 90 percent of the South China Sea based on “historical discovery” — a claim largely invalidated by an international tribunal that China ignored last year — has led to boat ramming, arrests and other low-level clashes between China and neighboring nations.

International officials and analysts have voiced repeated concerns that overreaction by any one party could result in a conflict that threatens peace in the region and the global economy.

“We have rebuilt China, and yet they will go in the South China Sea and build a military fortress the likes of which perhaps the world has not seen,” Trump said during a campaign interview last year. “Amazing, actually. They do that, and they do that at will because they have no respect for our president and they have no respect for our country.”

The Navy routinely sends its ships, most often those based with the 7th Fleet in Japan, on regular patrols through the South China Sea’s international waters. However, the White House didn’t approve FON operations, which challenge violations of international norms, for nearly three years in the South China Sea.

In October 2015, the USS Lassen transited within 12 miles of Subi Reef amid Chinese objections. As of 2012, Subi Reef was naturally sea bottom and therefore does not generate territorial waters under international law, despite Chinese claims.

Subi Reef is now roughly the size of Pearl Harbor, according to satellite imagery posted by the Asia Maritime Transparency Initiative.

The Navy conducted more FON operations in 2016, with the last coming in October.

Secretary of State Rex Tillerson signaled a policy tougher than the Obama administration’s was on the way during his January confirmation hearing.

Lawmakers asked Tillerson what should be done about China’s artificial islands, which include runways long enough for its military aircraft, radar, deep harbors and self-propelled artillery. More here.

Trump, Peace Deal with Palestinians, Easy

So far there has been no read out if Trump asked or rather demanded that the Palestinian authority to stop paying families of terrorists.

The PA, which receives millions in funding from U.S. taxpayers, spends roughly 8 percent of its annual budget, some $300 million a year, on salaries for terrorists who are imprisoned in Israel as well as the families of terrorists who attacked the Jewish state.

Mahmood Abbas, the head of the Palestinian Authority met with President Trump at the White House. Abbas brought the following people with him:

So who are these people?

Well Usama Qawasmeh in April of last year said that the West sponsors Islamic extremism and that 9/11 was no coincidence.

Saeb Erikat was one of the negotiators of the Oslo Accords and said there will never be peace if Trump moves the embassy to Jerusalem.

Ziad Abu Amr is an author, negotiator and foreign minister in charge of economics for Gaza. By the way, he was educated at Georgetown.

Hosso Zomlot is the Palestinian ambassador to the United States and continues to broadcast Israel as an occupier while declaring a two state solution is an international responsibility.

Ahmad Assaf, in 2011 said: ‘if armed resistance can accomplish the goals of the Palestinian people, we will not hesitate even for a second.’

***

So there was a working lunch at the Trump White House.

Working lunch with discussions of economic and trade opportunities?

“I’m committed to working with Israel and the Palestinians to reach an agreement,” Trump said. “I will do whatever is necessary to facilitate the agreement.”

Acknowledging an Israeli-Palestinian accord is seen as the “toughest deal to make,” Trump told Abbas, “Perhaps we can prove them wrong” – before heading into a meeting with the Palestinian Authority president.

Abbas told Trump moments earlier, “Mr. President, with you we have hope.”

The peace process has been stalled since 2014 when former Secretary of State John Kerry’s effort to lead the sides into peace talks collapsed. Since then, there have been no serious attempts to get negotiations restarted. The Obama administration spent its last months in office attempting to preserve conditions for an eventual resumption.

“We hope this will be a new beginning,” Abbas told Palestinians at a meeting in Washington on the eve of the talks.

During remarks alongside Trump at the White House, Abbas – through a translator – stressed that his people want a Palestinian state with the capital of East Jerusalem and borders along the pre-1967 lines.

Israel rejects the 1967 lines as a possible border, saying it would impose grave security risks.

Trump stressed that there can be no lasting peace unless Palestinian leaders speak in a unified voice against “incitement … to violence and hate.”

He also was expected to press Abbas to end payments to families of Palestinians killed or held in Israeli jails, which critics decry as payments for terrorism. Republicans lawmakers have urged a halt to such payments.

While Abbas will be challenged on the payments, officials said Trump will reiterate his belief that Israeli settlement construction on land claimed by the Palestinians does not advance peace prospects.

In his Wednesday comments, Abbas also criticized ideas for a “one state” peace agreement, saying it could mean “racial discrimination” or an apartheid-like system.

In a February news conference with Israeli Prime Minister Benjamin Netanyahu, Trump broke with longtime U.S. policy by raising the one-state idea and withholding clear support for an independent Palestine, though officials quickly stressed he would support any arrangement agreed by the two sides.

Another contentious issue: Trump’s campaign promise to move the U.S. Embassy in Israel from Tel Aviv to Jerusalem. The symbolic relocation would essentially recognize Jerusalem as Israel’s capital. Abbas and other Arab leaders have said doing so would inflame already simmering tensions.

Since taking office, Trump has backed away from the pledge while saying he’s still discussing it. On Tuesday, Vice President Mike Pence said the White House was giving “serious consideration” to the idea. More here.

Has the Best Already Happened in this Trump White House?

During the campaign, so many friends and acquaintances said the only reason to vote for Trump was the Supreme Court….we needed someone like Gorsuch. We got him, so have we seen the best we are going to get out of this White House in the next 4 years? Sure, we have been delighted about several executive orders, some which have positively changed the outlook and business attitude across the country and for many industries. But are those signatures enough and is it governing?

Much has been in the news in recent days about the omnibus bill where the Republicans and conservatives did not get ask for or receive any dollars from the campaign and Trump pledge list….wait until September we are told. So, the ‘art of the deal’ comes in September?

Anyway….is there some other obscure liberal standard and connections at this Trump White House we are not watching or giving enough attention to? My answer is YES. I am not seeing any swamp being drained, are you? Read on. This post is merely fair warning….keep watch.

I would ask all you readers to please check out Jared and Ivanka….they are quite troubling….

During the campaign season much was in the media that we are supposed to hate on Goldman Sachs and George Soros…okay fine…. so are they both acceptable today just because of Donald Trump? Hello?

*** Here is an item of real concern…..

Now, according to news reports, Ivanka Trump, while a federal employee, is soliciting donations for a new fund from foreigners. This comes on top of instances in which she sat with heads of state (from Japan and China) at a time that her business was doing deals in their countries.
Mike Allen, co-founder and executive editor of AXIOS Media and former chief political reporter for Politico, reported: “Ivanka Trump told me yesterday from Berlin that she has begun building a massive fund that will benefit female entrepreneurs around the globe. Both countries and companies will contribute to create a pool of capital to economically empower women. … Canadians, Germans and a few Middle Eastern countries have already made quiet commitments, as have several corporations, a source said.” The OGE guidelines specifically state: “Executive branch employees are subject to restrictions on the gifts that they may accept from sources outside the government. Unless an exception applies, executive branch employees may not accept gifts that are given because of their official positions or that come from certain interested sources.” More here.

*** Image result for jared and ivanka white house Link

Jared Kushner disclosure form left out stake in tech startup Cadre

Jared Kushner, the president’s son-in-law and senior adviser, didn’t identify on his government financial disclosure form that he is currently a part-owner of a real-estate finance startup and has a number of loans from banks on properties he co-owns, according to securities filings.

Kushner’s stake in Cadre—a tech startup that pairs investors with big real-estate projects—means the senior White House official is currently a business partner of Goldman Sachs Group Inc. GS, +0.12% and billionaires including George Soros and Peter Thiel, according to people close to the company.

The Cadre stake is one of many interests—and ties to large financial institutions—that Kushner didn’t identify on his disclosure form, according to a Wall Street Journal review of securities and other filings. Others include loans totaling at least $1 billion, from more than 20 lenders, to properties and companies part-owned by Kushner, the Journal found. He has also provided personal guarantees on more than $300 million of the debt, according to the analysis.

An expanded version of this report appears at WSJ.com.

Need something more on Ivanka now? Okay…no one bothered to check ethics law or with the Ethics Office.

Anyone remember Jamie Gorelick?

Attorney Jamie Gorelick had just finished vetting potential Cabinet secretaries for Hillary Clinton — and raising money for the failed 2016 Democratic nominee — when Jared Kushner called her last year, seeking legal counsel.

Gorelick, who served as deputy attorney general under President Bill Clinton and a former member of the 9/11 Commission, was recommended to Kushner by former News Corp. executive Joel Klein, who now serves as chief strategy officer at Oscar, the health insurance company co-founded by Kushner’s younger brother, Josh. Klein told Jared Kushner he needed a real lawyer to sort through nepotism and conflict-of-interest concerns that could bar him from working in the White House for his father-in-law, President Donald Trump.

“He said that Jared was a good person, and that he thought he would be a good influence on the administration,” Gorelick said in an interview Thursday afternoon, sitting in a sunny conference room at her law firm, Wilmer Hale.

Gorelick, widely rumored to have been Hillary Clinton’s front-runner for attorney general, hesitated before agreeing to represent someone who served as the de facto campaign manager for a candidate who encouraged chants of “Lock Her Up” at rallies.

“At the time, I was grieving for Hillary Clinton,” she said. “This was not the transition I was contemplating working on — at all. And I didn’t know Jared Kushner. And I did think twice about it.”

Since signing on with Kushner, Gorelick has been in the spotlight for lending credibility to his efforts to comply with federal ethics laws — as well as those of his wife, Ivanka, also a Gorelick client.

It has been an uncomfortable position for a dyed-in-the-wool Democrat to assume, and Gorelick has been shocked by the vitriol that has been hurled in her direction.

“Hey Jamie Gorelick, you’ve just poured that ‘Complicit’ perfume on yourself. #Ivanka,” top Democratic consultant Hilary Rosen, also a former Clinton surrogate and a partner at SKDKnickerbocker, tweeted, in reference to a “Saturday Night Live” sketch about an Ivanka Trump-branded scent called “Complicit.”

Gorelick sees herself as part of a time-honored Washington tradition of well-respected lawyers representing clients from the opposite party. Two of President Bill Clinton’s chiefs of staff, Mack McLarty and Erskine Bowles, turned to Arthur Culvahouse, former White House counsel under Ronald Reagan, to oversee their ethics arrangements, as did members of President Barack Obama’s administration.

In hiring Gorelick, Ivanka Trump and Kushner — two expats from Midtown Manhattan, who are part of an administration trying to upend all of Washington’s norms — are simply following that old D.C. playbook, buying themselves the patina of a former Clinton Justice department official vouching for their good names.

But Gorelick is testing whether that norm still holds true in Trump’s Washington. Many former Clinton diehards have branded themselves as “the resistance” and view any effort to work with advisers close to the president as an obscene attempt to “normalize” a politically abnormal president. For this liberal crowd, Ivanka Trump and Jared Kushner — branded as the moderates of Trump’s world — are viewed as extensions of the president, just operating under more glamorous, and therefore dangerous, facades.

Earlier this week, Gorelick vouched for Ivanka Trump’s ability to work as a de facto full-time White House adviser — complete with a security clearance, a West Wing office, and a government-issued phone — without formally becoming a government employee. Under the unprecedented arrangement, the first daughter will only voluntarily submit herself to ethics laws, without taking an oath of office that would subject her to disclosure and other requirements.

Gorelick also maintains that it would be impossible for Ivanka Trump to sell her eponymous fashion and jewelry line, because the buyer would be able to use her name — acknowledging there’s no way to create a setup for the first daughter that would be free of conflict of interest.

“The swirl of money and conflicts is unprecedented and their arrangements are not curing it,” said Robert Weissman, president of the nonprofit Public Citizen. “That Ivanka Trump has branded her company with her name is a complicating factor, and it should be, for her, not for the American people. Looking at [Gorelick’s] comments saying it doesn’t work for Ivanka to sell off the company — well, then maybe it doesn’t work for her to be in government.”

Even inside the Republican Party, the bipartisan spirit of the Washington power lawyer scene is being tested. “Some of my Republican friends who are ‘Never Trumpers’ are not particularly happy that I wound up doing the vice-presidential vetting,” Culvahouse conceded. “But the question is: Do you want him to fail, or do you want good people to get in? Is President Trump better served with Kushner and Ivanka serving with him in the White House? Absolutely he is.”  More here.