In part from Examiner: White House senior adviser Jared Kushner on Friday released a revised version of his personal financial disclosure that reveals his initial filing did not include 77 assets, according to a report Friday.
The Wall Street Journal reports that the new disclosure says 77 assets were “inadvertently omitted” from Kushner’s original form, released in March, and were added during the “ordinary review” process with the government ethics office.
In addition to information on Kushner, President Trump’s son-in-law, the new disclosure includes details of Ivanka Trump’s finances.
Ivanka Trump is the president’s daughter, a senior White House aide and Kushner’s wife.
The new financial forms show Kushner and Ivanka Trump collectively have between $206 million and $760 million in assets, the Journal said. Kushner’s initial disclosure valued their assets at between $240 million and $740 million. More here.
***
IN 2014, Prevezon Holdings Limited, was controlled by the son of a Russian political figure. The company had many interests in real estate, including an investment in a venture with a Soviet-born diamond and property magnate named Lev Leviev—who also happened to be one of the developers of 20 Pine.
Starting in late 2009, Prevezon began purchasing units in 20 Pine, acquiring five in total. The company later added three Manhattan commercial spaces to create a $24 million portfolio, which prosecutors sued to seize last year. “While New York is a world financial capital,” U.S. Attorney Preet Bharara said in a press release announcing the action, “it is not a safe haven for criminals seeking to hide their loot.” The lawsuit is here.
Jared Kushner sealed Manhattan real estate deal with oligarch’s firm cited in money-laundering case
Guardian: Donald Trump’s son-in-law bought part of old New York Times building from Soviet-born tycoon, Guardian investigation into Russian money in NYC property market finds
Jared Kushner, the son-in-law of Donald Trump, who acts as his senior White House adviser, secured a multimillion-dollar Manhattan real estate deal with a Soviet-born oligarch whose company was cited in a major New York money laundering case now being probed by members of Congress.
A Guardian investigation has established a series of overlapping ties and relationships involving alleged Russian money laundering, New York real estate deals and members of Trump’s inner circle. They include a 2015 sale of part of the old New York Times building in Manhattan involving Kushner and a billionaire real estate tycoon and diamond mogul, Lev Leviev.
The ties between Trump family real estate deals and Russian money interests are attracting growing interest from the justice department’s special counsel, Robert Mueller, as he seeks to determine whether the Trump campaign collaborated with Russia to distort the outcome of the 2016 race. Mueller has reportedly expanded his inquiry to look at real estate deals involving the Trump Organization, as well as Kushner’s financing.
Kushner will go before the US Senate intelligence committee on Monday in a closed session of the panel’s inquiry into Russian interference in the election in what could be a pivotal hearing into the affair.
Leviev, a global tycoon known as the “king of diamonds”, was a business partner of the Russian-owned company Prevezon Holdings that was at the center of a multimillion-dollar lawsuit launched in New York. Under the leadership of US attorney Preet Bharara, who was fired by Trump in March, prosecutors pursued Prevezon for allegedly attempting to use Manhattan real estate deals to launder money stolen from the Russian treasury.
The scam had been uncovered by Sergei Magnitsky, an accountant who died in 2009 in a Moscow jail in suspicious circumstances. US sanctions against Russia imposed after Magnitsky’s death were a central topic of conversation at the notorious Trump Tower meeting last June between Kushner, Donald Trump Jr, Trump campaign manager Paul Manafort and a Russian lawyer with ties to the Kremlin.
Don Jr and Manafort have been called to testify before the Senate judiciary committee on Wednesday, at which they are certain to face questions about the Trump Tower encounter.
Two days before it was due to open in court in May, the Prevezon case was settled for $6m with no admission of guilt on the part of the defendants. But since details of the Trump Tower meeting emerged, the abrupt settlement of the Prevezon case has come under renewed scrutiny from congressional investigators.
Four Russians attended the meeting, led by Natalia Veselnitskaya, a lawyer with known Kremlin connections who acted as legal counsel for Prevezon in the money laundering case and who called the $6m settlement so slight that “it seemed almost an apology from the government”. Sixteen Democratic members of the House judiciary committee have now written to the justice department in light of the Trump Tower meeting demanding to know whether there was any interference behind the decision to avoid trial.
Constitutional experts are also demanding an official inquiry. “We need a full accounting by Trump’s justice department of the unexplained and frankly outrageous settlement that is likely to be just the tip of a vast financial iceberg,” said Laurence Tribe, Harvard University professor of constitutional law.
Separately, the focus of investigators on Trump family finances stem from the vast flow of Russian wealth that has been poured into New York real estate in recent years. As Donald Trump Jr put it in 2008, referring to the Trump Organization: “We see a lot of money pouring in from Russia.”
Among the overlapping connections is the 2015 deal in which Kushner paid $295m to acquire several floors of the old New York Times building at 43rd street in Manhattan from the US branch of Leviev’s company, Africa Israel Investments (AFI), and its partner Five Mile Capital. The sale has been identified as of possible interest to the Mueller investigation as Kushner later went on to borrow $285m in refinancing from Deutsche Bank, the German financial house that itself has been embroiled in Russian money laundering scandals and whose loans to Trump are coming under intensifying scrutiny.
Court documents and company records show that AFI was cited in the Prevezon case as a business partner of the defendants. In 2008, Prevezon entered a partnership with AFI in which Prevezon bought for €3m, a 30% stake in four AFI subsidiaries in the Netherlands. Five years later, AFI tried to return the money to the Russian-owned company, but it was intercepted and frozen by Dutch authorities at the request of the US government as part of the Prevezon money-laundering probe.
In Manhattan, Leviev’s firm also sold condominiums to Prevezon Holdings from one of its landmark developments at 20 Pine Street, just a few blocks from Wall Street.
Real estate brochures describe the lavish interior decor of the condominiums, replete with bathrooms bedecked in stone and exotic woods, and boasting “the ultimate in pampering; a sybaritic recessed rain shower”. The 20 Pine Street apartments that Leviev sold to Prevezon were later frozen by US prosecutors seeking to block the flow of what they alleged to be money stolen from the Russian treasury and laundered through New York real estate.
Prevezon’s 20 Pine Street apartments and €3m in assets were all released as part of the settlement in May.
The Guardian contacted both Kushner and Leviev for comment, but they did not immediately respond.
The pursuit of Prevezon Holdings for alleged money laundering took on enormous political significance as it unfolded. For the prosecutors, it was a test case over suspicious Russian money flows designed to show the US was serious about going after money launderers. For the Russians, it was an opportunity to push back against stringent US sanctions that had long infuriated the Kremlin.
In court documents, US prosecutors accused Prevezon and its sole shareholder, Denis Katsyv, of participating in the laundering of proceeds of the vast tax fraud that stole $230m from the Russian treasury and moved it out of the country in chunks. Prevezon was alleged to have received some of the fraudulent spoils through a network of shell companies, hiding the money by investing in Manhattan real estate including the Leviev condominiums in 20 Pine Street.
Prevezon and Katsyv have consistently denied any involvement in money laundering and have dismissed the lawsuit as “ill-conceived”. In a statement released at the time of the settlement, they said they had “no involvement in or knowledge of any fraudulent activities”.
Magnitsky discovered the massive tax fraud, said to be one of the largest in Vladimir Putin’s Russia, in 2007. After he blew the whistle on the scam, he was arrested by the same officials whom he had accused of covering up the racket and imprisoned, dying in jail having been denied medical treatment.
Magnitsky’s death led to a political backlash in the US that in turn spawned tough sanctions on Russia, known as the Magnitsky Act. Russian individuals associated with the lawyer’s demise and other human rights abuses were banned entry to the US.
Veselnitskaya not only acted as Prevezon’s Russian counsel in the money-laundering case, she also was a leading lobbyist against the Magnitsky sanctions. She raised the subject prominently at the meeting in Trump Tower with Don Jr and Kushner, though according to Veselnitskaya the president’s son-in-law left after 10 minutes.
By the time of the Trump Tower meeting, Veselnitskaya was already personally acquainted with Russia’s powerful prosecutor general, Yuri Chaika, and her lobbying against the Magnitsky sanctions had drawn significant attention in government circles.
“Natalia’s main role was coordinating, including regular coordination with Chaika, whom she knew personally,” said a source acquainted with the Prevezon case.
Veselnitskaya told the Guardian: “My meeting with Trump’s son was a private meeting; nobody in the government had anything to do with it.” She declined to answer a follow-up question about whether and how she knew Chaika.
Jamison Firestone, the founder of the Russian law firm that employed Magnitsky at the time that he exposed the fraud, said that Veselnitskaya clearly intended to use the Trump Tower meeting to lobby against the Magnitsky sanctions. “They really made it a state priority to get rid of these sanctions,” he said.
Category Archives: Whistleblower
Debbie Wasserman Schultz, the Smashed Hard Drives and the FBI
EXCLUSIVE: FBI Seized Smashed Hard Drives From Wasserman Schultz IT Aide’s Home
Related reading on the same case: Democrats Version of Vetting, Ethics Violations and Terror
State Dept to Close War Crimes Division, Bad Decision
USAToday
Secretary of State Rex Tillerson is shuttering the department’s two-decades-old war crimes office, Foreign Policy reported Monday.
The Office of Global Criminal Justice advises the Secretary of State on issues surrounding war crimes and genocide and helps form policy to address those atrocities.
According to FP, Tillerson’s office has told Todd Buchwald, the special coordinator of the OGCJ, he is being reassigned to the State Department’s office of legal affairs.
Remaining staff might be shifted to the State Department’s Bureau of Democracy, Human Rights, and Labor, FP reported.
According to FP, the closure decision comes at a time when Tillerson has been trying to reorganize the department to concentrate on pursuing economic opportunities for American businesses and strengthening U.S. military prowess.
“There’s no mistaking it — this move will be a huge loss for accountability,” Richard Dicker, the director of Human Rights Watch’s international justice program, told FP. A State Department spokesman told FP in a statement it is “currently undergoing an employee-led redesign initiative, and there are no predetermined outcomes. We are not going to get ahead of any outcomes.” More here.
*** Consider the murderers in countries such as North Korea, Syria, Iran, Yemen, Iraq, Sudan, Nigeria, Afghanistan and more….
Iraq: Execution Site Near Mosul’s Old City
Investigate, Punish Those Responsible for Any War Crimes
Satellite imagery from July 12 showing the building and Tigris riverbank seen in a video posted of soldiers throwing a detainee off a cliff in west Mosul as well as military vehicles in the vicinity. © 2017 DigitalGlobe
Manafort to Testify, Financial Fraud Exposure?
The Senate Judiciary Committee intends to call Donald Trump Jr. and former Trump campaign chairman Paul Manafort to testify next week on a panel about foreign influence in elections.
The panel is also scheduled to include Glenn Simpson, the co-founder of the firm that commissioned the salacious dossier on President Donald Trump’s connections to Russia.
Should he attend the July 26 hearing, Trump Jr. is certain to be asked about his role in arranging a meeting at Trump Tower in June 2016 with officials connected to the Russian government, which he says he had hoped would result in the delivery of incriminating information about Hillary Clinton. More from Politico.
*** SuissNews
Manafort Was in Debt to Pro-Russia Interests, Cyprus Records Show
NYT’s: Financial records filed last year in the secretive tax haven of Cyprus, where Paul J. Manafort kept bank accounts during his years working in Ukraine and investing with a Russian oligarch, indicate that he had been in debt to pro-Russia interests by as much as $17 million before he joined Donald J. Trump’s presidential campaign in March 2016.
The money appears to have been owed by shell companies connected to Mr. Manafort’s business activities in Ukraine when he worked as a consultant to the pro-Russia Party of Regions. The Cyprus documents obtained by The New York Times include audited financial statements for the companies, which were part of a complex web of more than a dozen entities that transferred millions of dollars among them in the form of loans, payments and fees.
President Vladimir V. Putin with the Russian oligarch Oleg V. Deripaska in 2013. In a 2015 court complaint, Mr. Deripaska claimed that Mr. Manafort and his partners owed him $19 million related to a failed investment in a Ukrainian cable television business. Credit Sergei Karpukhin/Reuters
The records, which include details for numerous loans, were certified as accurate by an accounting firm as of December 2015, several months before Mr. Manafort joined the Trump campaign, and were filed with Cyprus government authorities in 2016. The notion of indebtedness on the part of Mr. Manafort also aligns with assertions made in a court complaint filed in Virginia in 2015 by the Russian oligarch, Oleg V. Deripaska, who claimed Mr. Manafort and his partners owed him $19 million related to a failed investment in a Ukrainian cable television business.
After The Times shared some of the documents with representatives of Mr. Manafort, a spokesman, Jason Maloni, did not address whether the debts might have existed at one time. But he maintained that the Cyprus records were “stale and do not purport to reflect any current financial arrangements.”
A financial statement for a Cyprus shell company, Lucicle Consultants, showing a $9.9 million loan to a Delaware company connected to Mr. Manafort.
“Manafort is not indebted to Mr. Deripaska or the Party of Regions, nor was he at the time he began working for the Trump campaign,” Mr. Maloni said. “The broader point, which Mr. Manafort has maintained from the beginning, is that he did not collude with the Russian government to influence the 2016 election.” (Mr. Manafort resigned as campaign manager last August amid questions about his past work in Ukraine.)
Still, the Cyprus documents offer the most detailed view yet into the murky financial world inhabited by Mr. Manafort in the years before he joined the Trump campaign.
Mr. Manafort’s political consulting operation was run out of a first-floor office on Sofiivska Street in Kiev, Ukraine. Credit Joseph Sywenkyj for The New York Times
Mr. Manafort is one of several former Trump associates known to be the focus of inquiries into Russian meddling in the presidential election. He was among those in attendance at a meeting in June 2016 at which Donald Trump Jr. was told they would receive compromising information on Hillary Clinton from a Russian lawyer connected to the Kremlin.
Mr. Manafort’s Cyprus-related business activities are under scrutiny by investigators looking into his finances during and after his years as a consultant to the Party of Regions in Ukraine. He recently filed a long-overdue report with the Justice Department disclosing his lobbying efforts in Ukraine through early 2014, when his main client, President Viktor F. Yanukovych of Ukraine, was ousted in a popular uprising and fled to Russia.
LOAV Advisers, a Cyprus company linked to Mr. Manafort, reported a $7.8 million loan from an entity associated with Mr. Deripaska.
The Cyprus documents detail transactions that occurred in 2012 and 2013, during the peak of Mr. Manafort’s decade-long tenure as a political consultant and investor in the former Soviet republic, where his past work remains a source of controversy. Last year, his name surfaced in a handwritten ledger showing $12.7 million designated for him by the Party of Regions, and documents recovered from his former office in Kiev suggest some of that money was routed through offshore shell companies and disguised as payment for computer hardware.
The byzantine nature of the transactions reflected in the Cyprus records obscures the reasons that money flowed among the various parties, and it is possible they were characterized as loans for another purpose, like avoiding taxes that would otherwise be owed on income or equity investments.
Ivan Fursin, a Party of Regions lawmaker, appears to have ties to Lucicle Consultants. Credit UNIAN (Ukrainian Independent News and Information Agency)
One of the Manafort-related debts listed in the Cyprus records, totaling $7.8 million, was owed to Oguster Management Limited, a company in the British Virgin Islands connected to Mr. Deripaska. The debtor was a Cyprus company, LOAV Advisers, that the Deripaska court complaint says was set up by Mr. Manafort to make investments with Mr. Deripaska, a billionaire close to President Vladimir V. Putin of Russia. The loan is unsecured, bears 2 percent interest and has “no specified repayment date,” according to a financial statement for LOAV.
The other debt, for $9.9 million, was owed to Lucicle Consultants, a Cyprus company that appears to have ties to a Party of Regions member of Parliament, Ivan Fursin. Lucicle, whose precise ownership is unclear, is linked to Mr. Fursin through another offshore entity, Mistaro Ventures, which is registered in St. Kitts and Nevis and listed on a government financial disclosure form that Mr. Fursin filed in Ukraine. Mistaro transferred millions to Lucicle in February 2012 shortly before Lucicle made the $9.9 million loan to Jesand L.L.C., a Delaware company that Mr. Manafort previously used to buy real estate in New York. The loan to Jesand was unsecured, with a 3.5 percent interest rate, and payable on demand.
There is no indication from the financial statements that the loans had been repaid as of the time they were filed in December 2015. The statements contain a note saying that as of January 2014, the debts and assets for Lucicle and LOAV had been assigned to “a related party,” which is not identified. The records define related parties as entities that are under common control, suggesting that the assignment did not affect the ultimate debtors and creditors. The statements also said there had been no other changes after the financial reporting period covered by them, which was for the 2013 calendar year.
A spokeswoman for Mr. Deripaska declined to comment. Mr. Deripaska appears to have stopped pursuing his court action against Mr. Manafort and his former investment partners, Rick Gates and Rick Davis, in late 2015. In addition to the $19 million he said he had invested with Mr. Manafort, Mr. Deripaska claimed he paid Mr. Manafort an additional $7.3 million in management fees.
Mr. Manafort has previously said any payments he received for his Ukraine activities were aboveboard and made via wire transfers to an American bank. The Cyprus records suggest that at least some transactions originated with shell companies in tax havens like the Seychelles and the British Virgin Islands, and passed through financial institutions on Cyprus, including Hellenic Bank and Cyprus Popular Bank.
Mr. Manafort’s name does not show up in the Cyprus records. However, hints of his dealings in Ukraine appear throughout.
A 23-page financial statement for a Cyprus shell, Black Sea View Limited, lists transactions that include one with Pericles Capital Partners. Both Black Sea View and Pericles Capital are identified in court papers filed by Mr. Deripaska in the Cayman Islands as part of the corporate structure that Mr. Manafort put together to invest in a Ukrainian telecommunications business, Black Sea Cable. The same statement also reports what are described as $9.2 million in loans received in 2012 from four other entities, including one controlled by two Seychelles companies, Intrahold A.G. and Monohold A.G., which Ukrainian authorities have asserted were involved in the looting of public assets by allies of the Yanukovych government. The Black Sea Cable business was controlled at one point by Monohold and Intrahold.
Similarly, Manafort-connected entities appear in the financial records for Lucicle Consultants, the Cyprus shell that received financing from a company associated with Mr. Fursin, the Party of Regions politician in Ukraine. Mr. Fursin did not respond to a request for comment. Lucicle received money from Black Sea View and PEM Advisers Limited, another firm identified in court papers as controlled by Mr. Manafort. It also made the $9.9 million loan to Jesand L.L.C.
Jesand appears to be a conflation of Jessica and Andrea, the names of Mr. Manafort’s two daughters. In hacked text messages belonging to Andrea Manafort that were posted last year on a website used by Ukrainian hackers, Jesand is mentioned in the context of financial dealings involving the Manaforts. Jesand was used by Mr. Manafort and his daughter Andrea in 2007 to buy a Manhattan condominium for $2.5 million.
The condo was one of several expensive pieces of real estate that Mr. Manafort bought, often with cash, during and after his time in Ukraine. He also invested millions with his son-in-law, Jeffrey Yohai, who set up a business to buy and redevelop luxury properties in the Los Angeles area. The business failed amid accusations of fraud by another former investor, who claimed Mr. Yohai had exploited his connection to Mr. Manafort to raise funds.
Last year, while trying to salvage his investments with Mr. Yohai, Mr. Manafort embarked on a borrowing spree in the United States, obtaining mortgages totaling more than $20 million on properties controlled by him and his wife. The F.B.I. and the New York attorney general’s office are investigating some of Mr. Manafort’s real estate dealings, including the loans he obtained last year.
North Korea Prepares for Next ICBM Launch, High Plutonium Production
While there is much chatter with regard to South Korea entering into peace talks with North Korea, a proposal not likely to happen, new launch preparations appear to be underway.
Primer:
Images of North Korea’s main nuclear facility show that the isolated regime has apparently produced more plutonium for its weapons programme than previously thought, a US monitor said, as tensions soar over Pyongyang’s ambitions.
The respected 38 North website, a monitoring project linked to Johns Hopkins university, said Friday that thermal imagery of the Yongbyon nuclear complex appeared to show that Pyongyang had reprocessed spent fuel rods at least twice between last September and June this year.
“The Radiochemical Laboratory operated intermittently and there have apparently been at least two unreported reprocessing campaigns to produce an undetermined amount of plutonium that can further increase North Korea’s nuclear weapons stockpile,” it said.
North Korea deactivated the Yongbyon reactor in 2007 under an aid-for-disarmament accord, but began renovating it after Pyongyang’s third nuclear test in 2013. More here.
US intelligence shows North Korean preparations for a possible missile test
(CNN) has learned that US intelligence indicates that North Korea is making preparations for another intercontinental ballistic missile (ICBM) or intermediate range missile test.
Two administration officials familiar with the latest intelligence confirm there are indicators of test preparations that could lead to a potential launch in about two weeks.US satellites have detected new imagery and satellite-based radar emissions indicating North Korea may be testing components and missile control facilities for another ICBM or intermediate launch, officials say.The US is watching in particular for further testing of North Korean radars and communications that could be used in a launch. The next test launch would be the first since North Korea successfully launched an ICBM on July 4.Officials also say that North Korea is continuing to test components to launch a missile from a submarine but the US intelligence assessment is that program remains in early stages.At the same time, a North Korean submarine was spotted in international waters engaging in “unusual activity,” two defense officials said.North Korea’s submarine fleet is believed to encompass around 70 subs, though the majority are quite old and likely cannot fire missiles.When taken together, these developments are concerning because North Korea says it is trying to develop a missile capable of delivering a nuclear warhead to the United States.Pyongyang has long maintained the ability to legitimately threaten the United States with a nuclear attack is the only way to protect itself against any US-led attempts at regime change.Land-based and submarine-based missiles are considered two-thirds of what is known as the “Strategic Triad,” a theory that a state must have land, air and sea based nuclear attack capabilities to successful deter an enemy from trying to attack it.The latest intelligence about a potential second ICBM test comes as the second highest ranking US military officer has warned Congress that North Korea’s deception techniques to mask their missile launches have grown in sophistication.“I am reasonably confident in the ability of our intelligence community to monitor the testing but not the deployment of these missile systems. Kim Jong Un and his forces are very good at camouflage concealment and deception” General Paul Selva, vice chairman of the Joint Chiefs of Staff, told the Senate armed services committee on Tuesday.Selva gave the strongest public indication so far that the US believes the current North Korean ICBM still has limitations, saying that Pyongyang has yet to demonstrate the “capacity to strike the United States with any degree of accuracy or reasonable confidence of success.”Selva said North Korean guidance and control systems for a long range missile still would have to be improved before a missile could actually strike the US.When asked about the possibility of a preemptive US military strike, Selva said, “I think we have to entertain that potential option. That would be a policy choice by the President of the United States to execute or not execute that option.”But Defense Secretary James Mattis has long warned against letting the North Korean situation get to the point of a US military strike and has strongly and publicly advocated for a diplomatic solution led by the State Department.Selva, who is deeply involved in the US nuclear weapons and missile defense programs, noted a parallel line of effort is underway to “provide for the defense of the United States with a suitable ballistic missile defense system that can handle the low volume at this point of missiles that he (Kim Jong Un) might be able to deploy that could strike us here across all of US territory, Alaska, Hawaii and the lower 48.”The preparations for a potential new launch come as the US military has observed North Korea carrying out an “unusual level” of submarine activity as well as testing a critical component of a missile that could potentially be launched from a submarine.Two US defense officials told CNN that that a North Korean Romeo-class submarine is currently engaged in “unusual deployment activity” in the Sea of Japan/East Sea and has been under way for about 48 hours. The US is observing the sub via reconnaissance imagery and the officials said the submarine’s patrol had taken it farther that it has ever gone, sailing some 100 kilometers out to sea in international waters. The submarine’s activity was different than the typical training activity usually observed closer to shore, according to the officials.The diesel-electric-powered North Korean sub spotted far from port is about 65 meters long and the US does not assess it capable of venturing very far from its home port.The activity caused US and South Korean forces to slightly raise their alert level, according to one official.The US military pays close attention to North Korean submarine activity following the 2010 Cheonan incident where a North Korean sub torpedoed a South Korean Naval vessel.The deployment comes days after Pyongyang tested a critical component for a missile that could potentially be launched by a submarine The test took place on land at the Sinpo shipyard in North Korea. The current US intelligence assessment is that the missile program aboard submarines remains in the very early stages.An ejection test in may tested the missile’s “cold-launch system,” which uses high pressure steam to propel the missile out of the launch canister into the air before the missile’s engines ignite, preventing damage to the submarine or submersible barge that would launch the missile. It is the type of technology that allows missiles to be launched underwater from submarines.Last summer, North Korea conducted what experts believed was its first successful submarine missile test, firing a missile called the the KN-11 or Pukguksong-1.