The Hillary Hacker to Plead Guilty, Iceberg Ahead

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?

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.

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 figuresnot 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 Castellanoat 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.

 

 

 

 

Declining Deportations and Increasing Criminal Alien Releases

Declining Deportations and Increasing Criminal Alien Releases –

The Lawless Immigration Policies of the Obama Administration

Subcommittee on Immigration and the National Interest

May 19, 2016

Statement of Mark Krikorian

Executive Director, Center for Immigration Studies

Hearing May 19, 2016

Deportation is crucial. Credibility in immigration policy can be summed up in one sentence: Those who should get in, get in; those who should be kept out, are kept out; and those who should not be here will be required to leave.

– Barbara Jordan

CIS: The Obama administration has embraced a radical new approach to immigration law. It has, without the consent of Congress, transformed violation of immigration law into a “secondary offense.” That is to say, the goal is to ensure that an alien faces consequences for breaking immigration law only if he also breaks some other, “real,” law involving, say, violence or drug dealing. And even then, the primary violation has to be quite severe to warrant deportation for the (secondary) immigration offense.

This is comparable to the seat belt laws in many states; in places where failing to wear a seat belt is a secondary offense, a police officer cannot pull you over just for that, but if he pulls you over for speeding or some other primary offense, he can then also write a seat belt citation.

The administration’s November 2014 deportation priorities memo pretends this is not so; it includes ordinary violations of immigration law, but only as the lowest priority for deportation. And the collapse in interior removals of immigration violators shows that this third priority category is just for show.

John Sandweg, former acting director of ICE, stated the Obama administration position succinctly: “If you are a run-of-the-mill immigrant here illegally, your odds of getting deported are close to zero.”

This extra-legal shift in the conception of the immigration statute has been misleadingly packaged as “prosecutorial discretion.” True prosecutorial discretion is exercised by individual law enforcement officers in ways that do not undermine the agency’s mission. For instance, if a state trooper stops you for speeding and your documents are in order, you’ve interacted with him in a respectful manner, and your toddler in the back seat is crying because she needs her diaper changed — and he lets you off with a warning rather than a fine, that is prosecutorial discretion.

What the Obama administration has done is use discretion as a pretext for simply exempting the vast majority of immigration violators from any possibility of legal consequences.

The results of this transformation of immigration law are clear in the data. ICE statistics show that deportations from the interior (aliens arrested by ICE deportation officers and special agents, as opposed to the Border Patrol) have collapsed, from 236,000 in President Obama’s first year in office to 72,000 last year, a decline of 70 percent over the course of this administration:

Not only have total interior deportations collapsed, but even the removal of criminals has declined by more than half, from about 150,000 in 2010 and 2011 to about 63,000 last year — this despite the Obama administration’s claim of prioritizing such removals:

This decline has occurred despite increases in the number of criminal aliens identified by ICE, largely from the nationwide implementation of the Secure Communities program, which screened the fingerprints of aliens arrested by local law enforcement agencies. This successful program, which was tremendously popular with local law enforcement agencies, was dismantled by the president’s November 2014 executive actions, and replaced by the Priority Enforcement Program (PEP). ICE removal officers are still alerted to the arrest of criminal aliens by local police, but are prohibited by the White House and subservient ICE political leadership from acting on that information.

This collapse in deportations is not because we’ve run out of illegal aliens. After declining in 2007-2009 because of new enforcement efforts at the end of the Bush administration, followed by the recession, the number of illegal aliens has remained essentially constant at between 11 and 12 million. Many of these are new illegal arrivals — we estimate that some 2.5 million new illegal immigrants settled here during the first six years of the Obama administration, offset mainly by departures and legalizations.

Nor is the steep drop in deportations due to a lack of resources. Last year the Obama administration re-programmed $113 million that Congress had provided to ICE/ERO for enforcement and gave it to other agencies within DHS. The White House 2017 budget request actually seeks a decrease in funding for immigration enforcement, most notably a decrease of $100 million in funding for detention beds — from 34,000 beds to 30,900 — and a 15 percent decrease in funding for fugitive operations (i.e., the effort to locate the roughly 900,000 people ordered deported who simply ran off).

Rather, the collapse in enforcement is a policy choice of the Obama administration. Its strategic vision is, as I described above, to downgrade the immigration law to a secondary status. Among the tactics that serve this strategy, especially with regard to criminals, is the termination of the successful Secure Communities program and its replacement with the Priority Enforcement Program (PEP). There are three ways PEP suppresses enforcement:

  1. The new, more restrictive PEP prioritization scheme exempts a larger number of criminal aliens from deportation. Essentially, under PEP the only aliens ICE officers can target for deportation are people convicted of felonies, multiple “serious” misdemeanors, certain gang members, terrorists, and recent deportees. This exempts large numbers of criminal aliens from deportation.
  2. PEP imposes new logistical hurdles for ICE, most notably the requirement that an alien be convicted before ICE takes custody — which can enable a criminal alien to abscond from facing charges, or in some cases walk out of a courthouse or jail before ICE is aware that the offender is being released; and
  3. PEP explicitly allows local governments to impose non-cooperation or sanctuary policies on local law enforcement agencies. In 2014, local sanctuary jurisdictions released more than 10,000 aliens that local ICE field officers were seeking to deport.

As a result of these policies, fewer deportable aliens (and criminal aliens) are being removed from the country and criminal aliens who formerly would have been removed are now being released back to our communities only to commit new crimes.

There is an enormous public safety cost to these enforcement suppression policies. Since 2013 ICE has released approximately 85,000 criminal aliens from its custody. Many of these aliens have gone on to commit additional crimes. More than 125 have since been charged with homicide.

Here are some of the most egregious examples of crimes committed by illegal aliens released from ICE custody because of the president’s prioritization rules:

Sarah Root. In Omaha, Nebraska, on January 31, 2016, an illegal alien named Eswin Mejia, age 19, who had entered illegally as an “unaccompanied minor” but was allowed to stay with his brother, was drag racing while drunk and crashed his pick-up truck into the back of a car driven by Sarah Root, age 21. She died in the hospital soon after, just a day after her graduation from college. Mejia was arrested several days later for felony motor vehicle homicide. He had prior infractions as well. Bail was set at $50,000. Knowing Mejia was an illegal alien, local police contacted ICE five times to urgently request a detainer, fearing he would flee after making bail. ICE refused, saying that Mejia “did not meet ICE’s enforcement priorities.” As the local police feared, Mejia disappeared after posting bail.

Grant Ronnebeck. A 21-year-old man who was murdered while working at a convenience store in Mesa, Arizona. Ronnebeck’s killer was an illegal alien who was released by ICE in 2013 after conviction for a burglary and kidnapping involving drug dealing, to await an immigration hearing years in the future.

Katerin Gomez. This 35-year-old mother of three children under age 13 was killed in Chelsea, Massachusetts, on October 18, 2014, by a stray bullet through her window. The gun was fired during a street brawl allegedly by Hector Ramires, a 21-year old illegal alien member of the notoriously violent MS-13 gang, who was at large awaiting trial for two prior arrests for armed robbery (one with a gun, one with a knife), in which his illegal status and gang membership were noted. The police report also includes mention of prior criminal involvement in his home country of Honduras. ICE did not issue a detainer or initiate deportation proceedings after either prior arrest, nor did it make an effort to charge Ramires as an illegal alien in possession of a firearm, which is a felony punishable by up to 10 years in prison.

Greg Morton. This Frederick County (Maryland) sheriff’s deputy was attacked last November while sitting in his vehicle by Jose Misael Reyes-Reyes, an 18-year-old illegal alien who had entered as an unaccompanied minor. The attacker was a member of the notoriously violent MS-13 gang and had prior arrests, including one for carrying a dangerous weapon. ICE declined to take him into custody after the prior arrests because he was already awaiting an immigration court hearing.

* * *
Prioritizing enforcement resources is not, in itself, the problem we face in immigration. Applying any body of law requires trade-offs and choices. The Treasury Department, for instance, devotes significant resources to the detection of money-laundering by organized crime or funding for terrorists. But it also has parallel initiatives of routine enforcement, to serve as a deterrent for ordinary taxpayers who might be tempted to cheat. Likewise in traffic enforcement; a driver doing 100 miles per hour through a school zone, firing a gun out the window, will obviously be top priority — but at the same time, there are parallel, routine enforcement efforts — speed traps and the like — to deter ordinary people from endangering others with unsafe driving.

If the IRS were to issue memos exempting anyone who’s not a mobster or terrorist from paying taxes, Congress would be aghast. Yet that is precisely what ICE has been ordered to do in the immigration context.

Some might object that the anticipated “raids” to take Central American illegal aliens into custody prove that the administration has not relegated immigration law to secondary status. Unfortunately, the opposite is true. The first round of “raids,” in January, netted a whopping 121 people — out of thousands of recent Central American illegal aliens — and only 70 of them were actually deported. Even if this next round of apprehensions is several times larger, it still amounts to nothing more than “enforcement theater.” It’s not even good enforcement theater. These Kabuki raids are too small — microscopic would be more accurate — to change the perception in Central America that if you get into the United States it’s unlikely you’ll ever be required to leave.

Despite staged disagreements with the administration over immigration enforcement, Congresswoman Pelosi concisely articulated the view she shares with the White House when she said in 2013 that “Our view of the law is that … if somebody is here without sufficient documentation, that is not reason for deportation.”

This is very different from an earlier Democratic congresswoman, Barbara Jordan, a civil rights pioneer and champion of the rule of law. As head of the bipartisan U.S. Commission on Immigration Reform, Jordan testified before Congress that “Credibility in immigration policy can be summed up in one sentence: Those who should get in, get in; those who should be kept out, are kept out; and those who should not be here will be required to leave.”

Hizbollah is Out of Control

By New Jersey DHS

Hizballah

Hizballah is an Islamic militant group based in Lebanon and allied with Iran. Its primary goal is the destruction of Israel.

  • Since 2013, Hizballah has plotted attacks against Israeli citizens and institutions in Europe, South America, Southeast Asia, the Middle East, and Africa. In January, five Palestinians were arrested on suspicion of joining a Hizballah cell and planning a suicide bombing and shooting in the West Bank. In June 2015, a Hizballah member pled guilty to acquiring nine tons of ammonium nitrate in Cyprus, which was intended for attacks against Israelis.
  • Although Hizballah possesses the capability to attack the United States and Western interests, the group is focused on supporting Bashar al-Assad’s regime in Syria. Hizballah receives training, weaponry, and about $200 million per year from Iran.
  • In 2013, Hizballah’s involvement in the Syrian conflict shifted from an advisory to a combat role. The group’s commitment is demonstrated by the number of personnel it has dispatched to Syria—Western media estimate 6,000 to 8,000 fighters, or roughly one-quarter of its assessed fighting force.

Threat to New Jersey: Low

The terror threat from Hizballah to New Jersey is low because the group’s resources and efforts are focused on supporting the Assad regime in Syria. Nonetheless, group supporters and sympathizers are active in the New Jersey region, primarily in fundraising. 

  • In February, the Drug Enforcement Administration (DEA)—to include its Newark office—and international agencies across seven countries uncovered a global Hizballah drug and money-laundering scheme. In October 2015, federal authorities in New York—acting in concert with the Newark DEA office—arrested two Hizballah associates for conspiring to launder narcotics proceeds and international arms trafficking.
  • In July 2013, Moussa Ali Hamdan, a former New Jersey resident, was sentenced in Philadelphia for providing proceeds from counterfeit goods sales to Hizballah.

US Nexus

  • Since 2005, approximately 20 Hizballah-related cases have been prosecuted in the United States. Half of the cases were along the East Coast, including in New York and Pennsylvania. None were in New Jersey.
  • Hizballah has never conducted an attack on US soil, but it has targeted the US military in Lebanon, including the bombing of a US Marine compound in 1983 in Beirut, which killed 241 US personnel.

DEA: Hizballah Drug Trafficking and Money Laundering Arrests

In January, the Drug Enforcement Administration (DEA), along with its European counterparts, arrested members of Hizballah’s External Security Organization Business Affairs Component in Europe for drug trafficking and money laundering, the proceeds of which transited through Lebanon to support Hizballah operations in Syria. The DEA operation, known as Project Cassandra, involved law enforcement agencies from seven countries and targeted Hizballah’s cocaine trafficking in the United States and Europe.

  • Hizballah developed business relationships with South American drug cartels supplying cocaine to the US and European markets. According to the DEA, Hizballah laundered the drug revenue through the acquisition and sale of high-valued vehicles, sometimes concealing money inside vehicles shipped internationally.
  • In February 2015, European authorities launched an investigation based on DEA leads and discovered a network of couriers collecting and transporting drug proceeds—in the form of euros—from Europe to the Middle East. The revenue was then transferred to Colombian cartels using the hawala disbursement system, a payment network based on trust and the use of family and regional connections.
  • US agencies participating in Project Cassandra include the Newark DEA office, US Customs and Border Protection, the US Treasury’s Financial Crimes Enforcement Network, and the US Treasury Office of Foreign Assets Control. Officials did not specify the number of individuals arrested nor the location of arrests in Europe. The investigation is ongoing.

Exploiting Outbound Cargo Vulnerabilities

Hizballah continues to launder narcotics proceeds through US maritime ports by leveraging the inundated outbound cargo shipment process and concealing contraband in otherwise legal outbound vehicle shipments. Since October 2015, Customs and Border Protection (CBP) in the Port of New York and New Jersey has processed more than 25,000 export vehicle titles per month in accordance with current regulations and performed, on average, more than 500 physical vehicle examinations per month.

  • This year, the Drug Enforcement Administration’s Project Cassandra targeted a Hizballah network selling narcotics in the United States and Europe and laundering the proceeds through the acquisition and sale of high-end vehicles, sometimes concealing money inside vehicles shipped internationally.
  • In 2011, US authorities filed a civil money-laundering suit against three Lebanese financial organizations and two Beirut-based money exchange houses, accusing them of wiring at least $329 million in drug proceeds to 30 used car dealerships in the United States—one located in North Arlington (Bergen County).
  • In 2010, the FBI disrupted two Hizballah-linked schemes—one in Virginia where money was hidden in tires of used vehicles being shipped via maritime vessels to Lebanon, and another in Ohio where authorities arrested a couple for attempting to conceal $200,000 in a vehicle they planned to ship to Lebanon.

The Port of New York and New Jersey has implemented mitigation strategies to stop the movement of contraband through outbound cargo in New Jersey. For example, in 2005, CBP, US Immigration and Customs Enforcement, Homeland Security Investigations, and other federal, state, local, and international law enforcement agencies created the Border Enforcement Security Task Force—more commonly known as BEST—to coordinate information sharing between agencies. In addition, CBP’s Customs Trade Partnership Against Terrorism encourages private-sector companies to provide information about suspicious activity related to cargo shipments.

Interwoven Money Laundering and Smuggling Systems

Hizballah’s profits from narcotics and other criminal activity are transferred via multiple forms of money laundering and illicit enterprises, including hawala money exchanges, the Black Market Peso Exchange (BMPE), and bulk cash smuggling. In March, the Director of the Stein Program on Counterterrorism and Intelligence at the Washington Institute for Near East Policy reported to Congress that despite receiving up to $200 million from Iran each year, Hizballah uses various criminal methods to generate additional revenue and fund its involvement in Syria.

  • Hizballah operatives can transfer cash quickly and without an audit trail by using the hawala remittance system, an informal currency transfer system operating outside or parallel to traditional banking and financial channels.
  • In February, the Drug Enforcement Administration revealed—as part of its Project Cassandra investigation—Hizballah leverages the BMPE, which uses trade-based money laundering to disguise proceeds from illegal activity.
  • Hizballah smuggles large sums of money from the United States, South America, and Europe via couriers and airport employees. The arrest of a ground services coordinator at Chicago’s O’Hare International Airport in 2007 demonstrates Hizballah supporters have bypassed airport security to transport packages of cash—in this case up to $100,000—intended to finance Hizballah operations in Lebanon.

Hey State Dept. What’s the Hurry?

Office of the Spokesperson
Washington, DC
May 19, 2016

Terrorist Designations of ISIL-Yemen, ISIL-Saudi Arabia, and ISIL-Libya

U.S. State Department: The Department of State has announced the designation of the Islamic State of Iraq and the Levant’s (ISIL’s) branch in Libya (ISIL-Libya) as a Foreign Terrorist Organization under section 219 of the Immigration and Nationality Act (INA). Today, the Department is also simultaneously designating ISIL-Libya, along with the ISIL branches in Yemen and Saudi Arabia, as Specially Designated Global Terrorists under Section 1(b) of Executive Order (E.O.) 13224, which imposes sanctions and penalties on foreign persons that have committed, or pose a serious risk of committing, acts of terrorism that threaten the security of U.S. nationals or the national security, foreign policy, or economy of the United States.

The consequences of the FTO and E.O. 13224 designations include a prohibition against knowingly providing, or attempting or conspiring to provide, material support or resources to, or engaging in transactions with, these organizations, and the freezing of all property and interests in property of these organizations that is in the United States, or come within the United States or the control of U.S. persons. The Department of State took these actions in consultation with the Departments of Justice and the Treasury.

ISIL-Yemen, ISIL-Saudi Arabia, and ISIL-Libya all emerged as official ISIL branches in November 2014 when U.S. Department of State-designated Specially Designated Global Terrorist and ISIL leader Abu Bakr al-Baghdadi announced that he had accepted the oaths of allegiance from fighters in Yemen, Saudi Arabia, and Libya, and was thereby creating ISIL “branches” in those countries.

While ISIL’s presence is limited to specific geographic locations in each country, all three ISIL branches have carried out numerous deadly attacks since their formation. Among ISIL-Yemen’s attacks, the group claimed responsibility for a pair of March 2015 suicide bombings targeting two separate mosques in Sana’a, Yemen, that killed more than 120 and wounded over 300. Separately, ISIL-Saudi Arabia has carried out numerous attacks targeting Shia mosques in both Saudi Arabia and Kuwait, leaving over 50 people dead. Finally, ISIL-Libya’s attacks have included the kidnapping and execution of 21 Egyptian Coptic Christians, as well as numerous attacks targeting both government and civilian targets that have killed scores of people.

After today’s action, the U.S. Department of State has now sanctioned eight ISIL branches, having previously designated ISIL-Khorasan, ISIL-Sinai, Jund al-Khilafah in Algeria, Boko Haram, and ISIL-North Caucasus. Terrorism designations are one of the ways the United States can expose and isolate organizations and individuals engaged in terrorism, impose serious sanctions on them, and enable coordinated action across the U.S. Government and with our international partners to disrupt the activities of terrorists. This includes denying them access to the U.S. financial system and enabling U.S. law enforcement actions.