Politicians, organizations, and shell companies spin a delicate web of deceit between Trump, Russia, and NYC mob

// July 18th, 2017 // Government

Advertisements

Unravelling President Donald J. Trump’s rumored political and business ties unveils potentially the greatest US conspiracy of all time

When delving into potential collusion between Russia and high level U.S. officials, it’s not the depravity of the participants’ actions but rather, the repute of the participants, the public’s level of trust in them, and the frequency of fraudulent activity which ultimately reveal to be the normal method of operation in the cesspool of Manhattan’s real estate market.

With the evidence currently available, we cannot yet conclude that US President Donald Trump had illicit connections to the Russian government (or the mob), shrouded channels that potentially include concessions that weaken the USA’s democracy, nor can we confirm that Donald J. Trump’s business practices, or those of any other New York real estate magnate, are illegal. We can however, reveal a series of little-noticed events that when connected, form a disturbing trail of deceit, corruption, and illegalities. If the potential links between (and activities of) the participants prove to be true, RussiaGate will go down in history as the greatest governmental conspiracy of all time.

How key players relate to the story

New York City’s Manhattan District is central to US business concerns. In fact, many would argue that it is *the* business hub of the world. Many years ago, Russians learned they could launder money through Manhattan real estate. Through shell organizations and with assistance from US-Based organized crime families, real estate investments provide an excellent vehicle in which to park illicit funds. Their task becomes easier to conceal if conducted under the façade of a prominent business leader.

Prominent business leaders will risk participation in these illicit endeavors for two reasons; (1) if profits are high enough to justify the risk or (2) they are forced to participate through threats or extortion. If profits are the motivator, the adage “follow the money” rings true. But if participation is contingent upon extortion, the process of tying the participant to the crime naturally becomes much more difficult.

To better follow the scenario, we must first introduce key cast members which include prominent politicians, well-known mobsters, large foreign (mostly Russian) business conglomerates and their owners – and a handful of unfortunates who found themselves unknowingly drawn into the combatant’s arena. Make note of the participants and their affiliations – then we will follow their path through a trail of conspiratorial activity that began more than a decade ago.

Key players in the Donald J. Trump/Russia collusion saga

Peter W. Smith

Peter W. Smith was an American investment banker and prominent financier of the Republican party. His political efforts were often conducted “under the radar”. In 2016, Smith confirmed to the Wall Street Journal that he attempted to contact Russian hackers to obtain opposition research on Hillary Clinton during the 2016 presidential campaign. Smith told Wall Street Journal reporters that National Security Adviser Michael Flynn and others in the Trump organization “knew of” his efforts to obtain Russian intelligence on political opponent Hillary Clinton.

Smith’s motive for revealing his actions is unknown. Possibly he stumbled upon collusion activities involving high-level government officials and recognized the severity of the actions. The answer will never be known. Smith was found dead in his hotel room on May 1, 2017, ten days after the Wall Street Journal interview. Initially the cause of his death was withheld from the public. In July 2017, more than two months after his death, it was revealed that Smith had died of “self inflicted” asphyxiation.

Advertisements

Michael Flynn

Michael Flynn’s credentials include Director of Defense Intelligence Agency and owner of the Flynn Intel Group. He served as National Security Advisor for President Donald J. Trump until he was forced to resign on February 13, 2017 after it was alleged he misled Vice President Mike Pence about his interactions with the Russian government. In the resulting congressional investigation, Flynn refused to hand over subpoenaed documents to the Senate Intelligence Committee pleading the Fifth Amendment against self-incrimination. Insiders say a deal was worked out, the details of which were kept under wraps. Before he died, Peter Smith told reporters Michael Flynn was involved with a campaign to obtain opposition research on Hillary Clinton from Russian hackers. Many believe he not only attempted to obtain materials from Russian hackers, but actively assisted them in their efforts.

Paul Manafort

Paul Manafort joined Donald Trump’s presidential campaign in March 2016 and was promoted to campaign manager just two months later. Manafort has proven connections to former Ukrainian President Viktor Yanukovych and his party. When the relationship was revealed in August 2016, Trump allowed him to retain his position in the campaign. In April 2017, Manafort registered as a “foreign agent”, disclosing that he made more than $17 million between 2012 and 2014 working for a pro-Russian political party.

Around the time of his Ukraine work, Manafort purchased at least four prime pieces of real estate in the United States worth a combined $11 million between 2006 and 2012.

Donald J. Trump

Donald J. Trump made billions of dollars in the real-estate and entertainment businesses. His many projects, run under a litany of subsidiary companies, include the following notable ventures:

1978: Commodore Hotel/Grand Hyatt Hotel

1978-1983: Trump Tower

1984: Trump Plaza/Trump Castle

1985: Mar-a-Lago in Palm Beach, Florida

1988-1995: Plaza Hotel

1988: Taj Mahal in Atlantic City

1994-2002: Empire State Building

1996: Trump Building (40 Wall Street)

1996-2015: Miss Universe pageants

1997: Trump Place

2001: Trump World Tower/Trump Park Avenue

2004: Trump University

2004: Trump Camelback/Trump International

2006: Trump Beach Club/Trump Ocean Club (Panama)

2008: Trump SoHo

Trump’s borrowing practices

During 1991 and 2009, Trump filed for bankruptcy six times, each time leaving lenders and developers holding the bag. It has been reported that by the late 2000’s, American lenders would no longer lend money for his ventures forcing him to seek financing overseas. German-based Deutsche Bank became his lender of choice. As we will see below, Deutsche Bank plays a prominent role in the Trump-Russia story.

Trump money laundering history

In the late 1990’s, federal authorities said Trump Taj Mahal broke anti-money laundering rules 106 times – in its first year of operation. Ultimately it was found that the organization routinely allowed questionable transactions during the 1990s, a time when Taj Mahal was the preferred gambling destination for Russian mobsters operating out of Brooklyn. Trump negotiated with authorities and paid a $10 million fine. The crimes not only demonstrated Trump’s propensity to break the rules, but showed how closely Russian crime syndicates were tied to his business practices.

Trump presidential run

Trump’s ascent to presidency came via a controversial campaign in which he made false and derogatory statements about women, minorities, and other candidates. It was even alleged his misconduct extended beyond disparaging language – at least fifteen women came forward accusing him of sexual misconduct.

In late 2016, Trump won the presidential race in a victory that stunned the world. Mass protests sprang up throughout the country. Democrats denounced his campaign behavior and refusal to release his income tax refunds. Republicans countered that Democrats were merely seeking consolation for a poorly run campaign. Insiders know that Trump’s financial records will likely contain many documented ties to Russian-based business affiliates in addition to campaign violations and shady Manhattan deals.

Russian election interference

What both parties agreed on was Russian interference in the election process. On January 1, 2017, the CIA, FBI, and NSA jointly stated with “high confidence” that the Russian government attempted to intervene in the 2016 presidential election. Russian president Vladimir Putin denied the charges and Trump called their claims the “single greatest witch hunt” in American history.

Trump’s level of involvement with the Russians may never be known. Presidents are often insulated from criminal investigations “for the good of the country”. What can easily be proven though, is that Trump had many business dealings with high-level Russians as early as 1985, that he was involved with several real estate projects that included Russian partners, and that Russians laundered billions of dollars through Manhattan real estate.

Donald Trump Jr.

Donald Trump Jr. is the son of President Donald Trump and his first wife, Ivana. With his brother Eric Trump, he is the executive director of The Trump Organization, a trust controversially established to house his father’s assets during his presidency. Although not a member of Trump’s White House team, he was an active participant in his father’s presidential campaign. He is rumored to have met with Russian operatives during the Trump election campaign.

Jared Kushner

Jared Kushner, eldest son of convicted felon Charles Kushner, married Donald Trump’s daughter, Ivanka, on October 25, 2009. He is the CEO of Kushner Companies (and its subsidiaries) and owner of the New York Observer. He was named as White House Senior Advisor on January 9, 2017. he is also rumored to have met with Russian operatives during the Trump election campaign.

Roger Stone

Roger Stone, a lobbyist and political consultant, describes himself as a dirty trickster. He is a close friend of Paul Manafort. He’s worked on campaigns for both Richard Nixon and Donald Trump. Stone frequently finds himself embroiled in scandal including a rumored drug problem, accusations of forgery, threatening and intimidating opponents, theft, bribery, extortion, and an admitted sex scandal involving ads in a New York newspaper where he sought orgies for him and his wife. He has been described by media outlets as “nasty” and “bigoted”. Ted Crux once told Fox News that Stone “is pulling the strings on Donald Trump. He planned the Trump campaign, and he is Trump’s henchman and dirty trickster.” Stone suspiciously left the Trump campaign on August 8, 2015. It was claimed he actively worked with Russians and Julian Assange to obtain stolen emails with dirt on Hillary Clinton and her campaign. He denies all wrongdoing. However, public Tweets seemingly confirm his role in the criminal affair.

Natalia Veselnitskaya

Veselnitskaya is a prominent Russian attorney whose clients comprise several Russian “state-owned businesses” including the FSB (post KGB), Elektronintorg/Elint SP, and Rostec. Natalia famously represented Denis Katsyv, owner of Prevezon Holdings, defending his company against Russian money-laundering claims. She was formerly married to the Deputy Transportation Minister of the Moscow area. She is rumored to have several close ties withing Washington, D.C. The cases she represented, and the penalties imposed on her clients by the US government, will play a prominent role in the Trump-Russia case as we uncover incentives offered to reduce sanctions against her clients.

Aras Agalarov

Aras Agalarov is a billionaire Russian oligarch and real-estate developer who has often served as a liaison between Donald Trump and Vladimir Putin. He was awarded the Order of Honor from Putin just ten days before the Moscow Miss America pageant that he helped organize with Trump. He is the father of Erin Agalarov.

Emin Agalarov

Erin Agalarov, son of Russian oligarch Aras Agalarov, is a Moscow-based musician. He gained notoriety after Donald Trump Jr. emails revealed he sought to pass nefarious information about Hillary Clinton to Donald Trump. His actions and the communications he carelessly left behind will tie Donald Trump Jr. to the Trump-Russia crimes in a stupidly embarrassing manner.

Rob Goldstone

New York publicist, former tabloid journalist, and prominent New York City playboy Rob Goldstone has been described as racy and flamboyantly gay with an affinity for young males. His clients include musician Emin Agalarov and Donald Trump’s Miss Universe competition. He became widely known after coordinating the dissemination of a Hillary Clinton dossier between the Russian-based Agalarov family and Donald Trump Jr. The knowledge he possesses about the case could prove invaluable to investigators.

Irakly (Ike) Kaveladze)

Reportedly the owner of hundreds of Russian shell companies. In 2000, he was associated with a money laundering case involving funds transferred from Russia through US banks. Kaveladze acted as interpreter during the June 9, 2017 Donald Trump Jr. meeting with Russian nationals.

James Comey

James Comey is a former attorney who first gained visibility after a series of high-profile cases including the prosecution of Martha Stewart. He served as FBI Director from 2013 until May 9, 2017 when he was fired by President Donald Trump. After his dismissal, he accused Trump of pressuring him to drop the Trump-Russia collusion case. Controversially, he publicly announced an investigative maneuver in the Hillary Clinton email investigation which some claimed impacted her run for president.

Advertisements

Comey’s past work included several cases indirectly related to the Trump family’s business practices. He played a prominent part in the Prevezon Holdings and Fusion GPS investigations. He famously investigated former Russian spy Rinat Akhmetshin (one of the participants in the Donald Trump Jr. meeting with the Russians) in a money laundering case. His work in these prior cases provided him extensive knowledge concerning Russian business practices and Trump’s ties to not just Russian crime families, but to officials at the highest level of government office.

Vladimir Putin

Russian President Vladimir Putin has a record of sponsoring activities intended to deride the interests of United States. He’s known for taking an especially hard stance (i.e., imprisonment, execution) against anyone who opposes him. He is suspected to have suspiciously close ties to businessman Donald J. Trump and was accused of sponsoring the Russian hacks with the intent of ensuring Donald Trump won the 2016 presidential election.

Christopher Steele

Christopher Steele, former MI-6 British spy, headed Cambridge Union as president, headed MI 6’s Russia desk, and served as an adviser to British Special Forces. Steele investigated and was first to conclude the Alexander Litvinenko polonium-210 radiation poisoning was a Russian state-sponsored hit. He was hired by Fusion GPS to create a dossier on Donald J. Trump in which he reportedly uncovered illicit sexual encounters and suspected illicit Russian connections (see complete transcript of the Christopher Steele dossier below). Believing the Russians had compromised Donald Trump sufficiently to blackmail him, Steele turned over his dossier to British and US intelligence agencies before it ultimately leaked to the press.

Rinat Akhmetshin

Rinat Akhmetshin is a Russian national and suspected former Russian GRU intelligence officer. He acted as a lobbyist for Prevezon Holdings and is linked to Fusion GPS. He was suspected to have hired Andrey Melnichenko to hack and steal sensitive information from International Mineral Resources. He was subject of a US complaint for failure to register as a foreign agent. He has been linked to US Congressman Dana Rohrabacher (aka “Putin’s favorite congressman”) and US President Donald Trump. Rinat reportedly gave secret documents to Rohrabacher in June 2017 (around the same time Donald Trump Jr. met with Russian reps) which led to Rep. Rohrabacher seeking to alter sanctions against Russia legislation.

Advertisements

Felix Sater (Satter)

Russian-born Felix Sater is a current and former business associate of Donald J. Trump. Despite denials by Trump, he is linked to him through documented business deals and meetings, including at least one meeting in Moscow. Sater is the Russian-born cofounder and managing directory of Bayrock-Sapir, a partner in the development of Trump SoHo. According to his FBI handler, he is the son of Semion Sater, the “Mogilevich crime syndicate boss”.

In 1991, Sater was convicted of first degree assault after stabbing a man in the face (he served one year in prison). In 1998, he was found guilty for his involvement in a $40 million stock fraud scheme. An active member of Chabad of Port Washington, he was contracted to develop the Trump SoHo property in Manhattan in 2005.

After being accused of money laundering in the mid-2000’s, Sater fled the country. Shortly after, he brokered a deal with the FBI involving information on black market Stinger anti-aircraft missiles and allowed to return to the United States. As part of the agreement, his records were sealed for ten years by US Attorney for Eastern District New York Loretta Lynch. According to Lynch, she sealed the records because Sater provided “information crucial to national security and the conviction of over 20 individuals including those responsible for committing massive financial fraud and members of the mafia.” All motions to unseal the documents have been denied.

Reports indicate that in the early period of Trump’s term (January 2017), Sater met with Donald Trump’s personal lawyer, Michael D. Cohen, to discuss plans to lift sanctions against Russia. It is rumored he was involved in undisclosed real estate dealings between Russia and the Trump organization. Whether or not Sater is still under the guiding hand of the FBI is unknown.

Tevfik Arif

Tevfik Arif is the Russian cofounder of Bayrock-Sapir, business associate of Donald Trump, and developer of the Trump SoHo project. According to testimony against him, he “pretends to be Turkish to avoid connection to his questionable past in Russia.”

Arif formerly worked for USSR’s Ministry of Commerce and Trade. In 2010, he was arrested in a raid on a yacht in Turkey and charged with running a prostitution ring with women acquired via human trafficking from Russia and Ukraine. Two of the Russian women rescued in the raid were reportedly only 16 years old. He is one of the largest donors to the Chabad of Port Washington, an organization tied tightly to Felix Sater.

Tamir Sapir

Tamir Sapir was born to a Jewish family in the USSR in 1947. His rather was a major in the Soviet Army. He founded the Sapir Organization, a developing partner in the Trump SoHo project. Sapir famously ran a electronics store in New York City that catered to Russian immigrants and was rumored to sell spy equipment to Russian operatives in the United States.

In 2004, his executive vice president Fred Contini pleaded guilty to participating in a racketeering conspiracy with the Gambino crime family.

Sapir died on September 26,2014, shortly before Trump began his run for presidency.

Sergei Magnitsky

Magnitsky was a Russian lawyer and namesake of the 2012 Magnitsky Act sponsored in part by Senator John McCain. He publicly alleged large-scale theft within the Russian government and was promptly arrested by Russian President Vladimir Putin. Seven days before the expiration of the maximum term he could be held, he died in Russian custody. Russian officials claimed he died of pancreatitis. Witnesses say he was beaten to death by Russian guards.

Advertisements

In 2012, it was discovered that much of the stolen funds Magnitsky referred to had been laundered through Manhattan real estate with potential ties to the Trump organization.

Denis Katsyv

Katsyv is the son of Pyotr Katsyv, former vice governor of the Moscow region. He is the legal owner of Prevezon Holdings and maintains close ties with high-level Russian government officials. As part of the Prevezon case exposed by Sergei Magnitsky, Katsyv was accused of laundering millions through Manhattan real estate. The case was unexpectedly settled on May 12, 2017, two days before it was set to go to trial. Rumors hinted that Katsyv struck some sort of deal.

Lev Leviev

Lev Leviev is the Russian-born President of LLD Diamonds Group, the Federation of Jewish Communities, and VK.com, Russia’s largest social network. He is the Chairman of Africa-Israel USA, a purported shell company for Manhattan real estate deals, and a known associate of Russian president Vladimir Putin.

Key organizations and their relationship to Donald J. Trump/Russia

John Galt Corporation

John Galt Corporation is named after a character in Ayn Rand’s novel Atlas Shrugged, which tells of a dystopian United States where successful businessmen are regulated out of business by a greedy and controlling government. The book begins with this line: “Who is John Galt?” They claim to be a construction business based in New York City.

Post 9/11, John Galt Corp was contracted by Bovis Land Lease to demolish the Deutsche Bank Building after the building suffered damage during the September 11 terror attacks. When their building and business practices were called into question, the New York Times noted the company “has apparently never done any work like it. Indeed, Galt does not seem to have done much of anything since it was incorporated in 1983.”

By the end of the Deutsche Bank Building job they would be drawn into a wide-ranging criminal indictment. One of the company’s purchasing agents would be sentenced to 7 ½ years in prison for embezzling over $1.2 million from the building’s demolition. The company and three of their managers would see manslaughter charges filed against them. It is now believed the company was nothing more than a shell company hired by a parent company – Bovis Lend Lease.

Bovis Lend Lease/Lend Lease Project Management

Bovis Lend Lease operate in more than 40 countries around the world. In 2012, the U.S. Attorney’s office charged them with defrauding clients in three separate schemes resulting in a $50 million deferred prosecution settlement. Bovis Lend Lease were hired to oversee the demolition of the Deutsche Bank Building and were the General Contractor for the Trump International and Trump SoHo projects.

Deutsche Bank

Based in Germany, Deutsche Bank is the 2nd largest bank in the world. They are the former owners of Deutsche Bank Building in New York City and operate through nearly one thousand subsidiaries and special purpose entities including Taunus Crop, Bankers Trust, Deutsche Bank OOO, OJSC Deutsche Bank DBU, and Deutsche Sharp Pixley Metals. Various reports have indicated they are the Trump family’s primary bank (after American banks began refusing loans due to his many bankruptcies). Reports suggest over $3 billion dollars in loans have been distributed to the Trumps through Deutsche Bank. The bank has been involved in more than 7,800 legal disputes with charges including tax evasion, espionage, wire fraud, improper business, and money laundering.

Prevezon Holdings LLC

Prevezon is a real estate company based in New York City. In May 2017, US authorities settled a longstanding case against Prevezon alleging they were one of the companies used for laundering money ($230 million) exfiltrated from Russia and dispersed through Manhattan real estate (more below). Attorneys working the case would later be shown to have close ties to the Trump organization.

Bayrock-Sapir

Bayrock was founded in 2001 by former Soviet official, Tevfik Arif. They are a New York based real estate company with plurality interests in more than 12 subsidiary holding companies including a strategic partnership with mysterious Icelandic investment company, FL Group.

Bayrock-Sapir were a developing partner in the Trump SoHo and other Trump Organization projects. Their office resided on the 24th floor of Trump Tower. They are the subject of several lawsuits accusing them of fraud, extortion, theft, and illicit mob connections.

FL Group/Baugur Group

FL Group is an Icelandic company (Stodir) with an odd link to Baugur Group and Bayrock Sapir. FL Group is partially owned by several Russian entities.

In 2008, FL Group was placed into administration and parts of the company nationalized by the Icelandic government. Around this time, the FL Group Chairman stepped down after being convicted for breaking accounting laws. His wife replaced him.

The line between FL Group and Baugur Group is difficult to discern. In one instance, Baugur Group acquired 20% of FL Group. A short time later, FL Group purchased 39% of Baugur Group. Investigators found that Baugur Group’s only means of contact was a single postal mailbox in the British Virgin Islands that was shared by more than a dozen companies.

In 2002, Baugur’s headquarters were raided and its founders charged on 40 counts including accounting irregularities, fraud, and embezzlement. The founder was convicted in 2007 but inexplicably given only a 3-month suspended sentence.

Baugur Group/Fl Group were developing partners in the Trump SoHo project.

Fusion GPS

Fusion GPS was founded by Glen Simpson and Peter Fritsch. They are a research and strategic intelligence firm based in Washington D.C. When politicians need a person’s reputation destroyed, they call Fusion GPS.

Fusion GPS were lobbyists for Prevezon Holdings. They also hired Christopher Steele to compile the dossier on Donald J. Trump.

DiFama Concrete and the Lucchese Crime Family

DiFama Concrete have been subject of many documented federal violations. They are owned by Joseph Fama and Joseph DiBennedetto, both reportedly members of the Lucchese crime family (aka Cosa Nostra). DiFama Concrete were subcontractors on the Trump SoHo project when they were found to be using inferior materials. As a result, construction on Trump SoHo was halted by regulators.

Federation of Jewish Communities (of Russia/of CIS) / Evraz

The Federation of Jewish Communities were founded by Roman Abramovich, owner of Evraz, a Russian steel and mining company. Interestingly, it has been reported that Evraz holds a 40% interest in the steel contract for the Keystone Pipeline project.

Africa-Israel USA

Africa-Israel USA first emerged in the public eye when Lev Leviev (AFI’s Chairman of the Board) was associated with the construction of Israeli settlements on the West Bank. AFI were on the verge of collapse in late 2009 when US federal government seized their properties at 40 Pine St. during the Prevezon Holdings money laundering case.

New York-based Lucchese crime family

The Lucchese crime family is one of the “Five Families” that dominate organized crime in New York City. They were the basis for the movie Goodfellas. Lucchese arrived on the scene in the 1920’s and achieved great success with illicit labor and construction contracts. On October 1, 2009, forty-nine Lucchese members were charged with bribery, racketeering, bid rigging, and extortion of businesses and construction sites in Manhattan.

On May 31, 2017, one month before details of Donald Trump Jr’s meeting with several Russians was revealed, nineteen members were charged with racketeering and murder. Only three days prior, Federal agents arrested nearly a dozen members of New York City’s Bonanno organized crime family – a mafia organization with alleged ties to Russian businessman Felix Sater.

The Lucchese crime family is still active in New York today and rumored to be run by Victor Amuso from prison. They are thought to hold an interest in at least one contractor for the Trump SoHo project and may have a close relationship with Bovis Lend Lease, the general contractor for Trump SoHo.

US Attorney Preet Bharara brings charges against Prevezon real-estate – accused of money laundering illicit Russian funds (2007)

One of the primary motivators of the Russian government is a little-known set of “adoption laws”. In 2012, the US adopted “Magnitsky Laws” to sanction Russians connected to the death of Segei Magnitsky (the attorney who exposed the Prevezon fraud). The Magnitsky sanctions, which bar many prominent Russian businessmen from operating in the United States, have tormented Russia since the Magnitsky Act was signed into law by President Obama in 2012. As a result, Russians countered with a ban on the adoption of Russian children. To date, Russia and Russian lobbyists have pressured the US to withdraw the Magnitsky sanctions to no avail. Surprisingly, when someone refers to the “ban on Russian adoptions”, it relates as much to the Prevezon case as the Magnitsky case – and neither have anything to do with the adoption of children.

The Prevezon case (US v. Prevezon Holdings, No. 13-cv-06326, U.S. District Court for the Southern District of New York Manhattan) dates to 2007 and was initiated to expose how Russian government officials laundered $230 million through New York City (primarily Manhattan) real estate. According to court testimony, Prevezon and its owner, Moscow businessman Denis Katsyv, stole the identity of American firm, Hermitage Capital Management, and used several of the company’s subsidiaries to launder pilfered Russian federal funds. Hermitage attorney Sergei Magnitsky exposed the fraud and filed a complaint with Russian officials. He was promptly arrested by Russian authorities.

Sergei Magnitsky was held in a Russian prison for nearly a year. Three days before the maximum term he could be held expired, he was found dead in his jail cell. Russian authorities said he died of a heart failure. Witnesses say Magnitsky was beaten to death by Russian guards.

As part of the Prevezon case, US officials (SDNY) seized millions of dollars of Manhattan properties including the following:

250 East 49th St. Unit Comm3

160 Wooster Street Unit Com-1

127 Seventh Avenue Retail Unit 2

20 Pine St. Units 1810, 1816, 2009, 2308, and 1711

The case had originally been brought up by US Attorney Preet Bharara. It was scheduled to go to trial on May 15, 2017, nearly a decade after the charges were filed. Two months before trial, Bharara was fired by President Donald Trump after refusing to follow Attorney General Jeff Sessions’ order for all remaining US Attorneys to resign. A new attorney, Joon H. Kim, was appointed by Donald Trump. Without warning, the case was settled by Joon Kim two days later. The abrupt conclusion left many wondering why the Russian investigation had been cut short.

Many were stunned when it was announced that the case had been settled for $5.9 million, an astonishingly low amount considering an estimated $230 million had been laundered through U.S. real estate properties. As part of the settlement, Prevezon and its business associates did not acknowledge any wrongdoing.

The Prevezon case remained unknown to most Americans until Donald J. Trump won the presidency and appointed the US Attorney that ultimately shuttered the case. Some conclude that a criminal case held over Trump’s head could have been the reason for his complicated entry, and abrupt withdrawal, from the 2012 election. In 2012, the statute of limitations would have still been in effect. They expired in 2016.

Deutsche Bank – Trump family’s primary lender is a German bank (2005)

It has been widely reported that Deutsche Bank of Germany has been Donald Trump’s lender of choice for more than a decade. After declaring six bankruptcies and leaving many banks holding worthless debt, American banks began refusing loans to the billionaire real estate tycoon. It is believed the Trump empire has guided more than $3 billion through the German bank’s doors.

If it seems incredible that the world’s 2nd largest bank could be involved in illicit activities, understand that Deutsche is no stranger to controversial, even illegal, business practices. In the 2008 financial crisis (and resulting Great Recession), the company agreed to a $7.2 billion settlement over the sale of toxic mortgage securities believed to have poisoned the US financial system to the point of collapse. Six former employees were accused of tax fraud in 2015. From 2001 to 2007, the bank admitted to engagement in espionage. In April 2015, the bank agreed to $2.5 billion in fines for its involvement in wire fraud. In November 2015, Deutsche was ordered to pay $258 million for conducting illegal business with foreign countries. As of 2016, the bank has been involved in more than 7,800 legal disputes.

In June 2017, Deutsche Bank announced that it would not comply with a request to hand over information related to its relationship with Donald Trump and trades from the bank’s Moscow operation.

The contamination, resolution, and ultimate deadly fire in the Deutsche Bank Building in New York City (2007)

The Deutsche Bank Building was a 39-story skyscraper located at 130 Liberty Street in New York City – directly adjacent to the World Trade Center. The building was badly damaged in the September 11, 2011 terror attacks. A 24-story gash was torn into the building’s façade.

The bank maintained that the building could not be repaired and wanted it to be declared a total loss. The insurance company insisted the damage be treated as recoverable damage rather than a total loss. Complicating matters, the building was found to be contaminated with asbestos.

In 2004, an agreement was reached – the building would be declared a total loss. However, the building must be dismantled piece by piece, a much more expensive process. On August 18, 2007, a fire broke out in the building. Firefighters struggled to put out the fire and two firemen were killed during the battle. In the subsequent investigation, it was discovered that a large section of basement water pipe had been removed, thus hindering the water supply and hampering firemen’s efforts. Three supervisors and the contractor were indicted on manslaughter charges. They worked for the John Galt Corporation, a company that had done no previous demolition work and ran as a shell company. John Galt Corporation had been subcontracted by the Bovis Lend Lease, the company that acted as General Contractor for the Trump SoHo project.

Trump Beach Club/Trump Ocean Club (2007)

Trump’s Beach Club project in Panama deserves minor mention, not because of its importance in the trail of evidence but rather, because it was potentially Trump’s first foray into government sanctioned money laundering. Little is known about the project except that it began in earnest during Panamanian president Ricardo Martinelli’s term. Martinelli’s involvement in the project is well known – he was on the board of the bank that lent Trump the money for the project.

Martinelli became the subject of an Interpol “red notice” – a request for international arrest and extradition. He was accused of embezzling $45 million in government contracts. He was arrested by U.S. Marshals on June 12, 2017. Opening day photos of the Trump Beach Club project show Donald Trump and a grinning Ricardo Martinelli cutting the red ribbon.

The Trump SoHo project (2008)

The Trump SoHo project is a 45-story hotel/condominium located at 246 Spring Street in Manhattan. The project was announced in 2006 and completed two years later, at the height of the US financial crisis and onset of the Great Recession. It was a time of financial hardship for many Americans – and many American businesses. The real estate sector was hit particularly hard.

The Trump SoHo project was a combined effort between (1) the Trump Organization, (2) Bayrock Group-Sapir, and (3) the FL Group. Bovis Land Lease, the company charged with manslaughter over the Deutsche Bank Building fire, was assigned main contractor duties.

The project faced strong opposition from the beginning as locals complained that Trump had sidestepped a longstanding ordinance prohibiting hotels in the area by labelling the building a “condominium” with strict rental restrictions that left rooms uninhabited during much of the year (during which time they could be rented out daily).

Opposition to the project strengthened in January 2008 when three workers were injured and one killed after a fall from the 42nd floor. The workers were reportedly Russian immigrants employed by the DiFama Concrete company, a Brooklyn based company with suspected ties to the Lucchese crime family. Construction was stopped when investigators found the company was using substandard materials.

It is believed that Donald J. Trump, Donald Trump Jr. and Ivanka Trump received “tens of millions of dollars in fees and partnership interests” for the project. One report indicated the Trumps held a nearly 20% interest. In 2001, about a dozen early SoHo buyers filed lawsuits against Trump SoHo alleging they had been “fraudulently misrepresented”. The case was ultimately settled without going to trial or admitting guilt. Plaintiffs were given 90% of their money back to drop the case.

In 2016, it was discovered that Trump SoHo partner, FL Group, appeared to be a Russian-owned shell company operating under the Baugur Group. Baugur Group was already well known to federal investigators. Owners of the company were charged on 40 counts including accounting irregularities, fraud, and embezzlement in 2002. SoHo’s second partner, Bayrock-Spair was found to be owned by two Russian nationals; Felix Sater, a known mobster convicted in a $40 million stock fraud scheme, and Tevfik Arif, who was later arrested in a raid on a yacht in Turkey and charged with running a prostitution ring. Despite court records showing otherwise, Trump repeatedly denied any association with foreign Russian entities.

Trump’s Moscow Miss Universe Pageant (2013)

Donald Trump purchased the Miss Universe rights from ITT Corp in 1996. Immediately NBC was sold exclusive rights to air the contest. In 2013, Donald J. Trump entered into a partnership with Aras Agalarov and his son, Emin, major Russian real-estate tycoons based in Moscow with close ties to the Kremlin. The contest was funded by the Agalarov’s and held in Moscow. Two years later, Trump began his controversial campaign for US President.

Because of Trump’s controversial comments about women and minorities during the presidential campaign, NBC severed all business relationships with the Trump organization and dropped rights to the Miss Universe contest. A month later, Fox News assumed all rights to the property.

The details of the arrangement between Trump and the Agalarov’s have never been fully understood. It has been proposed that it was during his time in Russia preparing for the Miss Universe contest, Russian authorities compromised the tycoon “sufficiently to be able to blackmail him” (See Christopher Steele dossier below). Others believe a massive Russian real estate deal was (or is) in the works. What is inarguable, is that a long-lasting relationship was developed, one that carried over into his presidency and triggered a public outcry when the brothers resurfaced to offer Russian assistance for his presidential campaign.

Dirt on Clinton (Clinton’s private email server, the DNC email hacks) (2016)

“Russia, if you’re listening, I hope you’re able to find the 30,000 emails that are missing.” – Donald J. Trump, July 2006

The Wall Street Journal was the first to break the story that Russian hackers attempted to get stolen Democrat emails to an intermediary and then to Mike Flynn. The reports were confirmed by former equity advisor and Republican financer Peter W. Smith who admitted to newspapers that he attempted to obtain the Clinton emails from Russian hackers. Smith told reporters that Michael Flynn was aware of his efforts. Shortly after speaking to the Wall Street Journal, Smith was found dead in his hotel room. It was not revealed until two months later that Smith had been asphyxiated.

Ultimately the DNC emails were passed to Wikileaks. Notorious hacker Guccifer 2.0 claimed responsibility for the hack. Guccifer had long been suspected to be a persona, or more accurately, the media arm for a collective of Russian state-sponsored hackers.

On December 9, 2016, the CIA confirmed Russia had conducted adversarial operations during the 2016 US election, including hacking DNC email, to prevent Hillary Clinton from winning the presidency. Given Trump’s conspicuous ties to Russian entities, it was suggested he or his campaign may have colluded with Russia.

The question of Russia’s impact on the election may never be answered. At the time of the hack, polls suggested Clinton would win despite the email hacks and private email server fiasco. Only a single poll suggested Trump had pulled ahead. The IBD/TIPP Poll had been the most accurate poll in recent presidential elections. It showed Trump pulled even with Clinton on November 2 and pulled ahead on November 6 – just two days prior to the election. If this were indeed the case, Russia had not only interfered with a US election – they had determined its outcome.

The Trump dossier (the Christopher Steele report) (2016)

By late 2015, Republicans were concerned about the possibility of Donald Trump winning the presidential nomination. As a result, they secured the services of Fusion GPS to investigate Trump’s Russia-related activities. Once Trump won the nomination, making the point moot, Democrats took over funding of the Fusion GPS investigation.

Ex-British spy Christopher Steele was assigned to lead the investigation and tasked with compiling a dossier of Trump’s activities. In the end, Steele turned over his report to both British and American intelligence officials after concluding that the material should not just be in the hands of Trump’s political opponents since it seemed to him “to be a matter of national security for both countries”.

After Trump’s victory in November 2016, Steele continued working on the dossier. The dossier was made public (i.e. leaked) by BuzzFeed in early 2017. Trump denied the report’s allegations calling it “fake news”. In it were claims that Russia possessed damaging or embarrassing information about Trump which could be used for purposes of blackmail including sexual and financial dealings with Russian entities. Intelligence officials say skepticism and caution should be used when assessing the viability of the dossier claims. However, they note that there is a high degree of confidence that at least some of the claims therein are credible (read complete transcript of the Trump dossier below).

In July 2017, the Senate Judiciary Committee subpoenaed Fusion GPS’s co-founder, Glenn Simpson to testify in the Trump-Russia collusion investigation. Simpson’s attorney’s asserted their client would invoke his Fifth Amendment right in response to the subpoena.

The Donald Trump Jr. email – Don Jr. agrees to meet with the Russians (2017)

“Hillary Clinton has to go to jail. Alright, I said it. She has to go to jail. The fact that they even allow her to participate in this race is a disgrace to the United States, is a disgrace to our nation.” Donald J. Trump, June 2, 2016

The day after the above statement was made, an email chain between publicist Rob Goldstone and Donald Trump Jr., began to circulate. The email began in part, “Emin Agalarov just called and asked me to contact you with something very interesting”.

Goldstone explained that Russia’s Yury Chaika (Prosecutor General of Russia) met with Russian business tycoon Aras Agalarov earlier in the day and offered to provide the Trump campaign with “official documents and information” that could “incriminate Hillary and her dealings with Russia.” Goldstone noted that the information was sensitive but a “part of Russia and its government’s support for Mr. Trump.” The bait had been set.

Goldstone added that he could also “send this info to your father via Rhona” but since it was sensitive, wanted Donald Trump Jr. to see it first. Trump responded, “If it’s what you say, I love it.” He suggested they do a call “first thing next week when I’m back.”

The email chain continued and on June 7, Goldstone said Emin Agalarov asked that the meeting be scheduled two days later with the “Russian government attorney” (Natalia Veselnitskaya). “How about 3 at our offices?”, Trump Jr. wrote back.

Trump Jr. added that Paul Manafort and Jared Kushner would also join him in the meeting. Ultimately, more people attended the meeting than was reported including a representative for the Agalarov family, alleged money launderer Irakly Kaveladze, and Rinat Akhmetshin, former Russian spy and lobbyist who had already been accused of acting as an unregistered foreign agent for Russia.

That same night (June 7) at a political speech, Trump promised to reveal illicit clandestine activities conducted by the Clintons,

“I am going to give a major speech on probably Monday of next week (June 13), and we’re going to be discussing all of the things that have taken place with the Clintons. I think you’re going to find it very informative and very, very interesting. I wonder if the press will want to attend, who knows. Hillary Clinton turned the State Department into her private hedge fund — the Russians, the Saudis, the Chinese — all gave money to Bill and Hillary and got favorable treatment in return.”

The Trump/Russia meeting took place on Thursday, June 9 as planned but according to Trump Jr., he did not receive the information the Russians promised to deliver. Trump appeared to break the news to supporters at a New Hampshire college,

“This was going to be a speech on Hillary Clinton and how bad a president, especially in these times of radical Islamic terrorism, she would be. There will be plenty of opportunity to discuss these important issues at a later time, and I will deliver that speech soon. But today there is only one thing to discuss: the growing threat of terrorism inside of our borders.”

The New York Times revealed the meeting one year later in a series of articles. Minutes before they published the complete transcript of the Trump/Goldstone communication, Donald Trump Jr. tweeted it from his personal account explaining that he wanted to be “totally transparent”. Steven Colbert joked that night, “I’m apologize for thinking Eric was the dumb one.”

Immediately after the email chain was tweeted by Donald Trump Jr., funds were quickly withdrawn from President Donald Trump’s campaign fund and used to hire attorneys for Don Jr.

Can a high-profile businessman run a crooked business and get away with it?

The old adage, “follow the money” still rings true. However, in today’s business environment, Donald J. Trump often lends little more than his capital and expertise to real estate projects that bear his name. In these endeavors, partners (such as Bayrock) can schedule work and execute business transactions, insulating high-level partners from any potential legal or criminal responsibility.

The money trail can be further obscured though layers of corporate entities. For example, a top-level holding company may legally exist under a lower level subsidiary. Below the subsidiary may be layers of additional subsidiaries and under these, interests may be portioned to individuals through partnerships. Taxing differences in each type of entity complicate tracking of money. For instance, partnerships rarely report taxes because profits are expected to be reported as going to the partners personally. The layers-upon-layers of organizational structure offer barriers to financial reporting – and investigations.

Finally, we must consider the Statute of Limitations. Over the past decade, Donald Trump has been especially careful to ensure legal barriers are in place to protect his interests. For older projects, the Statute of Limitations has likely expired.

Given the above considerations, a scenario does indeed exist where all participants could walk away from this with no liability. The President of the United States has the power to pardon anyone for any reason. The only person he cannot pardon is himself in time of impeachment (theoretically). If Trump wishes, he could simply pardon Donald Trump Jr., his cabinet, his campaign team, and everyone else subject to prosecution. Guilt or innocence would not matter – the law could not touch them. That would leave the president himself at risk. However, with careful planning around the Statute of Limitations, he would also walk away with no penalty – and that would make this episode the greatest conspiracy in American history.

Additional information

But what about China?

There are those that believe Trump colluded with Russians and evidence certainly lends credence to the theory. However, some are quick to point out that Trump has massive dealings with China too, and those dealings could involve much larger bribes and massive kickbacks. Directing attention toward Russia may purposefully defer attention from an even worse crime.

Transcripts of Donald Trump Jr. Email between Rob Goldstone

Update (8/9/17): Reports surfaced that FBI agents raided the home of Paul Manafort and seized documents and other materials.

On June 3, 2016 at 10:36 AM, Rob Goldstone wrote:

Good morning Emin just called and asked me to contact you with something very interesting. The Crown prosecutor of Russia met with his father Aras this morning and in their meeting offered to provide the Trump campaign with some official documents and information that would incriminate Hillary and her dealings with Russia and would be very useful to your father. This is obviously very high level and sensitive information but is part of Russia and its government’s support for Mr. Trump—helped along by Aras and Emin. What do you think is the best way to handle this information and would you be able to speak to Emin about it directly? I can also send this info to your father via Rhona, but it is ultra sensitive so wanted to send to you first. Best Rob Goldstone

On June 3, 2016 at 10:53 AM, Donald Trump Jr. wrote:

Thanks Rob I appreciate that. I am on the road at the moment but perhaps I just speak to Emin first. Seems we have some time and if it’s what you say I love it especially later in the summer. Could we do a call first thing next week when I am back? Best, Don

On June 6, 2016 at 12:40 PM, Rob Goldstone wrote:

Sent: Monday, June 06, 2016 at 12:40 PM To: Donald Trump Jr. Subject: Re: Russia – Clinton – private and confidential Hi Don Let me know when you are free to talk with Emin by phone about this Hillary info — you had mentioned early this week so wanted to try to schedule a time and day Best to you and family Rob Goldstone

On June 6, 2016 at 15:03, Donald Trump Jr. wrote:

Rob could we speak now? d

Rob Goldstone’s response

From: Rob Goldstone Sent: Monday, June 06, 2016 3:37 PM To: Donald Trump Jr. Subject: Re: Russia – Clinton – private and confidential Let me track him down in Moscow What number he could call?

On June 6, 2016 15:38, Donald Trump Jr. wrote:

My cell thanks d

On June 6, 2016 at 3:43 p.m., Rob Goldstone wrote:

Ok he’s on stage in Moscow but should be off within 20 Minutes so I am sure can call Rob

On Jun 6, 2016, at 16:38, Donald Trump Jr. wrote:

Rob thanks for the help. D

On Jun 7, 2016, at 4:20 PM, Rob Goldstone wrote:

Don Hope all is well Emin asked that I schedule a meeting with you and The Russian government attorney who is flying over from Moscow for this Thursday. I believe you are aware of the meeting — and so wondered if 3pm or later on Thursday works for you? I assume it would be at your office. Best Rob Goldstone

On Jun 7, 2016, at 5:16 PM, Donald Trump Jr. wrote:

How about 3 at our offices? Thanks rob appreciate you helping set it up. D

On June 7, 2016, at 5:19PM, Rob Goldstone wrote:

Perfect… I won’t sit in on the meeting, but will bring them at 3 pm and introduce you etc. I will send the names of the two people meeting with you for security when I have them later today. best Rob

On Jun 7, 2016, at 18:14, Donald Trump Jr. wrote:

Great. It will likely be Paul Manafort (campaign boss) my brother in law and me. 725 Fifth Ave 25th floor.

On June 8, 2016, at 10:34 AM, Rob Goldstone wrote:

Sent: Wednesday, June 08, 2016 10:34 AM To: Donald Trump Jr. Subject: Re: Russia – Clinton – private and confidential Good morning, Would it be possible to move tomorrow meeting to 4pm as the Russian attorney is in court until 3 i was just informed. Best Rob

On June 8, 2016, at 11:15, Donald Trump Jr. wrote:

Yes Rob I could do that unless they wanted to do 3 today instead … just let me know and ill lock it in either way. d

On June 8, 2016, at 11:18 AM, Rob Goldstone wrote:

From: Rob Goldstone Sent: Wednesday, June 08, 2016 11:18 AM To: Donald Trump Jr. Subject: Re: Russia – Clinton – private and confidential They can’t do today as she hasn’t landed yet from Moscow 4pm is great tomorrow. Best Rob

On June 8, 2016, at 12:03 AM, Donald Trump Jr. wrote:

From: Donald Trump Jr. Sent: Wednesday, June 08, 2016 12:03PM To: Jared Kushner; Paul Manafort Subject: FW: Russia – Clinton – private and confidential Meeting got moved to 4 tomorrow at my offices. Best, Don

The Christopher Steele dossier on President Donald Trump

The Donald Trump-Russia dossier is the report compiled by former British MI6 intelligence officer, Christopher Steele. The report was made public in January 2017. Originally the report was met with skepticism in the conspiracy community. However, it is now clear that some of the outrageous claims contained in the report have been proven to be true, putting the dossier back in the spotlight. Below is the full text transcription of Christopher Steele’s original report.

CONFIDENTIAL/SENSITIVE SOURCE

COMPANY INTELLIGENCE REPORT 2016/080

US PRESIDENTIAL ELECTION: REPUBLICAN CANDIDATE DONALD TRUMP’S ACTIVITIES IN RUSSIA AND COMPROMISING RELATIONSHIP WITH THE

KREMLIN

Summary

· Russian regime has been cultivating, supporting and assisting Trump for at least 5 years. Aim, endorsed by PUTIN, has been to encourage splits and divisions in western alliance

· So far TRUMP has declined various sweetener real estate business deals offered him in Russia in order to further the Kremlin’s cultivation of him. However he and his inner circle have accepted a regular flow of intelligence from the Kremlin, including on his Democratic and other political rivals

· Former top Russian intelligence officer claims FSB has compromised TRUMP through his activities in Moscow sufficiently to be able to blackmail him. According to several knowledgeable sources, his conduct in Moscow has included perverted sexual acts which have been arranged/monitored by the FSB

· A dossier of compromising material on Hillary CLINTON has been collated by the Russian Intelligence Services over many years and mainly comprises bugged conversations she had on various visits to Russia and intercepted phone calls rather than any embarrassing conduct. The dossier is controlled by Kremlin spokesman, PESKOV, directly on PUTIN’s orders. However it has not as yet been distributed abroad, including to TRUMP. Russian intentions for its deployment still unclear

Detail

1. Speaking to a trusted compatriot in June 2016 sources A and B, a senior Russian Foreign Ministry figure and a former top level Russian intelligence officer still active inside the Kremlin respectively, the Russian authorities had been cultivating and supporting US Republican presidential candidate, Donald TRUMP for at least 5 years. Source B asserted that the TRUMP operation was both supported and directed by Russian President Vladimir PUTIN. Its aim was to sow discord and disunity both within the US itself, but more especially within the Transatlantic alliance which was viewed as inimical to Russia’ s interests. source C, a senior Russian financial official said the TRUMP operation should be seen in terms of PUTIN’s desire to return to Nineteenth Century ‘Great Power’ politics anchored upon countries’ interests rather than the ideals-based international order established after World War Two. S/he had overheard PUTIN talking in this way to close associates on several occasions.

2. In terms of specifics, Source A confided that the Kremlin had been feeding TRUMP and his team valuable intelligence on his opponents, including for several years Democratic presidential candidate Hillary CLINTON, (see more below). This was confirmed by Source D, a close associate of TRUMP who had organized and managed his recent trips to Moscow, and who reported, also in June 2016, that this Russian intelligence had been “very helpful”. The Kremlin’s cultivation operation on TRUMP also had comprised offering him various lucrative real estate development business deals in Russia, especially in relation to the ongoing 2018 World Cup soccer tournament. However, so far, for reasons unknown, TRUMP had not taken up any of these.

3. However, there were other aspects to TRUMP’s engagement with the Russian authorities. One which had borne fruit for them was to exploit TRUMP’s personal obsessions and sexual perversion in order to obtain suitable ‘kompromat’ (compromising material) on him. According to Source D, where s/ he had been present, TRUMP’s (perverted) conduct in Moscow included hiring the presidential suite of the Ritz Carlton Hotel, where he knew President and Mrs OBAMA (whom he hated) had stayed on one of their official trips to Russia, and defiling the bed where they had slept by employing a number of prostitutes to perform a ‘golden showers’ (urination) s how in front of him. The hotel was known to be under FSB control with microphones and concealed cameras in all the main rooms to record anything they wanted to.

4. The Moscow Ritz Carlton episode involving TRUMP reported above as confirmed by Source E, [REDACTED] who said that s/he and several of the staff were aware of it at the time and subsequently. S/he believed i t had happened in 2013. Source E provided an introduction for a company ethnic Russian operative to Source F, a female staffer at the hotel when TRUMP had stayed there, who also confirmed the story. Speaking separately i n June 2016, Source B (the former top level Russian intelligence officer) asserted that TRUMP’s unorthodox behavior in Russia over the years had provided the authorities there with enough embarrassing material on the now Republican presidential candidate to be able to blackmail him if they so wished.

5. Asked about the Kremlin’s reported intelligence feed to TRUMP over recent years and rumors about a Russian dossier of ‘kompromat’ on Hillary CLINTON (being circulated), Source 8 confirmed the file’s existence. S/he confided in a trusted compatriot that it had been collated by Department K of the FSB for many years, dating back to her husband Bill’s presidency, and comprised mainly eavesdropped conversations of various sorts rather than details/evidence of unorthodox or embarrassing behavior. Some of the conversations were from bugged comments CLINTON had made on her various trips to Russia and focused on things she had said which contradicted her current position on various issues. Others were most probably from phone intercepts.

6. Continuing on this theme, Source G, a senior Kremlin official, confided that the CLINTON dossier was controlled exclusively by chief Kremlin spokesman, Dmitriy PESKOV, who was responsible for compiling/handling it on the explicit instructions of PUTIN himself. The dossier however had not as yet been made available abroad, including to TRUMP or his campaign team. At present it was unclear what PUTIN’s intentions were in this regard.

RUSSIA/CYBER CRIME: A SYNOPSIS OF RUSSIAN STATE SPONSORED AND OTHER CYBER OFFENSIVE (CRIMINAL) OPERATIONS

Summary

· Russia has extensive program of state-sponsored offensive cyber operations. External targets include foreign governments and big corporations, especially banks. FSB leads on cyber within Russian apparatus. Limited success in attacking top foreign targets like G7 governments, security services and IFIs but much more on second tier ones through IT back doors, using corporate and other visitors to Russia

· FSB often uses coercion and blackmail to recruit most capable cyber operatives in Russia into its state-sponsored programs. Heavy use also, both wittingly and unwittingly, of CIS emigres working in western corporations and ethnic Russians employed by neighboring governments e.g. Latvia

· Example cited of successful Russian cyber operation targeting senior Western business visitor. Provided back door into important Western institutions.

· Example given of US citizen of Russian origin approached by FSB and offered incentive of “investment” in his business when visiting Moscow.

· Problems however for Russian authorities themselves in countering local hackers and cyber criminals, operating outside state control. Central Bank claims there were over 20 serious attacks on correspondent accounts held by CBR in 2015, comprising Rubles several billion in fraud

· Some details given of leading non-state Russian cyber-criminal groups

Details

1. Speaking in June 2016, a number of Russian figures with a detailed knowledge of national cybercrime, both state-sponsored and otherwise, outlined the current situation in this area. A former senior intelligence officer divided Russian state-sponsored offensive cyber operations into four categories (in order of priority):- targeting foreign, especially western governments; penetrating leading foreign business corporations, especially banks; domestic monitoring of the elite; and attacking political opponents both at home and abroad. The former intelligence officer reported that the Federal Security Service (FSB) was the lead organization within the Russian state apparatus for cyber operations.

2. In terms of the success of Russian offensive cyber operations to date, a senior government figure reported that there had been only limited success in penetrating the “first tier” foreign targets. These comprised western (especially G7 and NATO) governments, security and intelligence services and central banks, and the IFIs. To compensate for this shortfall, massive effort had been invested, with much greater success, in attacking the “secondary targets”, particularly western private banks and the governments of smaller states allied to the West. S/he mentioned Latvia in this regard. Hundreds of agents, either consciously cooperating with the FSB or whose personal and professional IT systems had been unwittingly compromised, were recruited. Many were people who had ethnic and family ties to Russia and/or had been incentivized financially to cooperate. Such people often would receive monetary inducements or contractual favors from the Russia n state or its agents in return. This had created difficulties for parts of the Russian state apparatus in obliging/indulging the m e.g. the Central Bank of Russia knowingly having to cover up for such agents’ money laundering operations through the Russian financial system.

3. In terms of the FSB’s recruitment of capable cyber operatives to carry out its, ideally deniable, offensive cyber operations, a Russian IT specialist with direct knowledge reported in June 2016 that this was often done using coercion and blackmail. In terms of ‘foreign’ agents, the FSB was approaching US citizens of Russian (Jewish) origin on business trips to Russia. In one case a US citizen of Russian ethnicity had been visiting Moscow to attract investors in his new information technology program. The FSB clearly knew this and had offered to provide seed capital to this person in return for them being able to access and modify his IP, with a view to targeting priority foreign targets by planting a Trojan virus in the software. The US visitor was told this was common practice. The FSB also had implied significant operational success as a result of installing cheap Russian IT games containing their own malware unwittingly by targets on their PCs and other platforms.

4. In a more advanced and successful FSB operation, an IT operator inside a leading Russian SOE, who previously had been employed on conventional (defensive) IT work there, had been under instruction for the last year to conduct an offensive cyber operation against a foreign director of the company. Although the latter was apparently an infrequent visitor to Russia, the FSB now successfully had penetrated his personal IT and through this had managed to access various important institutions in the West through the back door.

5. In terms of other technical IT platforms, an FSB cyber operative flagged up the ‘Telegram’ enciphered commercial system as having been of especial concern and therefore heavily targeted by the FSB, not least because it was used frequently by Russian internal political activists and oppositionists. His/her understanding was that the FSB now successfully had cracked this communications software and therefore it was no longer secure to use.

6. The senior Russian government figure cited above also reported that non-state sponsored cybercrime was becoming an increasing problem inside Russia for the government and authorities there. The Central Bank of Russia claimed that in 2015 alone there had been more than 20 attempts at serious cyber embezzlement of money from corresponding accounts held there, comprising several billions Rubles. More generally, s/he understood there were circa 15 major organized crime groups in the country involved in cybercrime, all of which continued to operate largely outside state and FSB control. These included the so-called ‘Anunak’, ‘Buktrap’ and ‘Metel’ organizations.

RUSSIA/US PRESIDENTIAL ELECTION: FURTHER INDICATIONS OF EXTENSIVE CONSPIRACY BETWEEN TRUMP’S CAMPAIGN TEAM AND THE KREMLIN

Summary

· Further evidence of extensive conspiracy between TRUMP’s campaign team and Kremlin, sanctioned at highest levels and involving Russian diplomatic staff based in the US

· TRUMP associate admits Kremlin behind recent appearance of DNC e- mails on WikiLeaks, as means of maintaining plausible deniability

· Agreed exchange of information established in both directions. TRUM P’s team using moles within DNC and hackers in the US as well as outside in Russia. PUTIN motivated by fear and hatred of Hillary CLINTON. Russians receiving intel from TRUMP’s team on Russian oligarchs and their families in US

· Mechanism for transmitting this intelligence involves “pension” disbursements to Russian emigres living in US as cover, using consular officials in New York, DC and Miami

· Suggestion from source close to TRUMP and MANAFORT that Republican campaign team happy to have Russia as media bogeyman to mask more extensive corrupt business ties to China and other emerging countries

Detail

1. Speaking in confidence to a compatriot in late July 2016, Source E, an ethnic Russian close associate of Republican US presidential candidate Donald TRUMP, admitted that there was a well-developed conspiracy of co-operation between them and the Russian leadership. This was managed on the TRUMP side by the Republican candidate’s campaign manager, Paul MANAFORT, who was using foreign policy advisor, Carter PAGE, and others as intermediaries. The two sides had a mutual interest in defeating Democratic presidential candidate Hillary CLINTON, whom President PUTIN apparently both hated and feared.

2. Inter alia, Source E, acknowledged that the Russian regime had been behind the recent leak of embarrassing e-mail messages, emanating from the Democratic National Committee (DNC), to the WikiLeaks platform. The reason for using WikiLeaks was “plausible deniability” and the operation had been conducted with the full knowledge and support of TRUMP and senior members of his campaign team. In return the TRUMP team had agreed to sideline Russian intervention in Ukraine as a campaign issue and to raise US/NATO defense commitments in the Bal tics and Eastern Europe to deflect attention away from Ukraine, a priority for PUTIN who needed to cauterize the subject.

3. In the wider context of TRUMP campaign/Kremlin co-operation, Source E claimed that the intelligence network being used against CLINTON comprised three elements. Firstly there were agents/facilitators within the Democratic Party structure itself; secondly Russian emigre and associated offensive cyber operators based in the US; and thirdly, state- sponsored cyber operatives working in Russia. All three elements had played an important role to date. On the mechanism for rewarding relevant assets based in the US, and effecting a two-way flow of intelligence and other useful information, Source E claimed that Russian diplomatic staff in key cities such as New York, Washington DC and Miami were using the emigre ‘pension’ distribution system as cover. The operation therefore depended on key people in the US Russian emigre community for its success. Tens of thousands of dollars were involved.

4. In terms of the intelligence flow from the TRUMP team to Russia, Source E reported that much of this concerned the activities of business oligarchs and their families’ activities and assets in the US, with which PUTIN and the Kremlin seemed preoccupied.

5. Commenting on the negative media publicity surrounding alleged Russian interference in the US election campaign in support of TRUMP, Source E said he understood that the Republican candidate and his team were relatively relaxed about this because it deflected media and the Democrats’ attention away from TRUMP’s business dealings in China and other emerging markets. Unlike in Russia, these were substantial and involved the payment of large bribes and kickbacks which, were they to become public, would be potentially very damaging to their campaign.

6. Finally, regarding TRUMP’s claimed minimal investment profile in Russia, a separate source with direct knowledge said this had not been for want of trying. TRUMP’s previous efforts had included exploring the real estate sector in St Petersburg as well as Moscow but in the end TRUMP had had to settle for the use of extensive sexual services there from local prostitutes rather than business success.

RUSSIA: SECRET KREMLIN MEETINGS ATTENDED BY TRUMP ADVISOR, CARTER PAGE IN MOSCOW (JULY 2016)

Summary

· TRUMP advisor Carter PAGE holds secret meetings in Moscow with SECHIN and senior Kremlin Internal Affairs official, DIVYEKIN

· SECHIN raises issues of future bilateral US-Russia energy co-operation and associated lifting of western sanctions against Russia over Ukraine. PAGE non-committal in response

· DIVEYKIN discusses release of Russian dossier of ‘kompromat’ on TRUMP’s opponent, Hillary CLINTON, but also hints at Kremlin possession of such material on TRUMP

Detail

1. Speaking in July 2016, a Russian source close to Rosneft President, PUTIN close associate and US-sanctioned individual, Igor SECHIN, confided the details of a recent secret meeting between him and visiting Foreign Affairs Advisor to Republican presidential candidate Donald TRUMP, Carter PAGE.

2. According to SECHIN’s associate, the Rosneft President (CEO) had raised with PAGE the issues of future bilateral energy cooperation and prospects for an associated move to lift Ukraine-related western sanctions against Russia. PAGE had reacted positively to this demarche by SE CHIN but had been generally non-committal in response.

3. Speaking separately, also in July 2016, an official close to Presidential Administration Head, S. IVANOV, confided in a compatriot that a senior colleague in the Internal Political Department of the PA, DIVYEKIN (nfd) also had met secretly with PAGE on his recent visit. Their agenda had included DIVEYKIN raising a dossier of ‘kompromat’ the Kremlin possessed on TRUMP’s Democratic presidential rival, Hillary CLINTON, and its possible release to the Republican’s campaign team.

4. However, the Kremlin official close to S. IVANOV added that s/he believed DIVEYKIN also had hinted (or indicated more strongly) that the Russian leadership also had ‘kompromat’ on TRUMP which the latter should bear in mind in his dealings with them.

RUSSIA-US PRESIDENTIAL ELECTION: KREMLIN CONCERN THAT POLITICAL FALLOUT FROM DNC E-MAIL HACKING AFFAIR SPIRALLING OUT OF CONTROL

Summary

· Kremlin concerned that political fallout from DNC e-mail hacking operation is spiralling out of control. Extreme nervousness among TRUMP’s associates as result of negative media attention/accusations

· Russians meanwhile keen to cool situation and maintain ‘plausible deniability’ of existing /ongoing pro-TRUMP and anti-CLINTON operations. Therefore unlikely to be any ratcheting up offensive plays in immediate future

· Source close to TRUMP campaign however confirms regular exchange with Kremlin has existed for at least 8 years, including intelligence fed back to Russia on oligarchs’ activities in US

· Russians apparently have promised not to use ‘kompromat’ they hold on TRUMP as leverage, given high levels of voluntary co-operation forthcoming from his team

Detail

1. Speaking in confidence to a trusted associate in late July 2016, a Russian emigre figure close to the Republican US presidential candidate Donald TRUMP’s campaign team commented on the fallout from publicity surrounding the Democratic National Committee (DNC) e-mail hacking scandal. The emigre said there was a high level of anxiety within the TRUMP team as a result of various accusations levelled against them and indications from the Kremlin that President PUTIN and others in the leadership thought things had gone too far now and risked spiraling out of control.

2. Continuing on this theme, the emigre associate of TRUMP opined that the Kremlin wanted the situation to calm but for ‘plausible deniability’ to be maintained concerning its (extensive) pro-TRUMP and anti-CLINTON operations. S/he therefore judged that it was unlikely these would be ratcheted up, at least for the time being.

3. However, in terms of established operational liaison between the TRUMP team and the Kremlin, the emigre confirmed that an intelligence exchange had been running between them for at least 8 years. Within this context PUTIN’s priority requirement had been for intelligence on the activities, business and otherwise, in the US of leading Russian oligarchs and their families. TRUMP and his associates duly had obtained and supplied the Kremlin with this information.

4. Finally, the emigre said s/he understood the Kremlin had more intelligence on CLINTON and her campaign but he did not know the details or when or if it would be released. As far as ‘kompromat’ (compromising information) on TRUMP were concerned, although there was plenty of this, he understood the Kremlin had given its word that it would not be deployed against the Republican presidential candidate given how helpful and co-operative his team had been over several years, and particularly of late.

RUSSIA/USA: GROWING BACKLASH IN KREMLIN TO DNC HACKING AND TRUMP SUPPORT OPERATIONS

Summary

· Head of PA IVANOV laments Russian intervention in US presidential election and black PR against CLINTON and the DNC. Vows not to supply intelligence to Kremlin PR operatives again. Advocates now sitting tight and denying everything

· Presidential spokesman PESKOV the main protagonist in Kremlin campaign to aid TRUMP and damage CLINTON. He is now scared and fears being made scapegoat by leadership for backlash in US. Problem compounded by his botched intervention in recent Turkish crisis

· Premier MEDVEDEV’s office furious over DNC hacking and associated anti-Russian publicity. Want good relations with US and ability to travel there. Refusing to support or help cover up after PESKOV

· Talk now in Kremlin of TRUMP withdrawing from presidential race altogether, but this still largely wishful thinking by more liberal elements in Moscow

Detail

1. Speaking in early August 2016, two well-placed and established Kremlin sources outlined the divisions and backlash in Moscow arising from the leaking of Democratic National Committee (DNC) e-mails and the wider pro-TRUMP operation being conducted in the US. Head of Presidential Administration, Sergei IVANOV, was angry at the recent turn of events. He believed the Kremlin “team” involved, led by presidential spokesman Dmitriy PESKOV, had gone to_o far in interfering in foreign affairs with

their “elephant in a china shop black PR”. IVANOV claimed always to have opposed the handling and exploitation of intelligence by this PR “team”. Following the backlash against such foreign interference in US politics, IVANOV was advocating that the only sensible course of action now for the Russian leadership was to “sit tight and deny everything”.

2. Continuing on this theme the source close to IVANOV reported that PESKOV now was “scared shitless” that he would be scapegoated by PUTIN and the Kremlin and held responsible for the backlash against Russian political interference in the US election. IVANOV was determined to stop PESKOV playing an independent role in relation to the US going forward and the source fully expected the presidential spokesman now to lay low. PESKOV’s position was not helped by a botched attempt by him also to interfere in the recent failed coup in Turkey from a government relations (GR) perspective (no further details).

3. The extent of disquiet and division within Moscow caused by the backlash against Russian interference in the US election was underlined by a second source, close to premier Dmitriy MEDVED EV (DAM). S/he said the Russian prime minister and his colleagues wanted to have good relations with the US, regardless of who was in power there, and not least so as to be able to travel there in future, either officially or privately. They were openly refusing to cover up for PESKOV and others involved in the DNC/TRUMP operations or to support his counter-attack of allegations against the USG for its alleged hacking of the Russian government and state agencies.

4. According to the first source, close to IVAN OV, there had been talk in the Kremlin of TRUMP being forced to withdraw from the presidential race altogether as a result of recent events, ostensibly on grounds of his psychological state and unsuitability for high office. This might not be so bad for Russia in the circumstances but in the view of the source, it remained largely wishful thinking on the part of those in the regime opposed to PESKOV and his “botched” operations, at least for the time being.

RUSSIA/US PRESIDENTIAL ELECTION: SENIOR KREMLIN FIGURE OUTLINES EVOLVING RUSSIAN TACTICS IN PRO-TRUMP, ANTI-CLINTON OPERATION

Summary

· Head of PA, IVANOV assesses Kremlin intervention in US presidential election and outlines leadership thinking on operational way forward

· No new leaks envisaged, as too politically risky, but rather further exploitation of (WikiLeaks) material already disseminated to exacerbate divisions

· Educated US youth to be targeted as protest (against CU NTON) and swing vote in attempt to turn them over to TRUMP

· Russian leadership, including PUTIN, celebrating perceived success to date in splitting US hawks and elite

· Kremlin engaging with several high profile US players, including STEIN, PAGE and (former DIA Director Michael Flynn), and funding their recent visits to Moscow

Details

1. Speaking in confidence to a close colleague in early August 2016, Head of the Russian Presidential Administration (PA), Sergei IVANOV, assessed the impact and results of Kremlin intervention in the US presidential election to date. Although most commentators believed that the Kremlin was behind the leaked DNC/CLINTON e-mails, this remained technically deniable. Therefore the Russians would not risk their position for the time being with new leaked material, even to a third party like Wikileaks. Rather the tactics would be to spread rumors and misinformation about the content of what already had been leaked and make up new content.

2. Continuing on this theme, IVANOV said that the audience to be targeted by such operations was the educated youth in America as the PA assessed that there was still a chance they could be persuaded to vote for Republican candidate Dona Id TRUMP as a protest against the Washington establishment (in the form of Democratic candidate Hillary CLINTON). The hope was that even if she won, as a result of this CLINTON in power would be bogged down in working for internal reconciliation in the US, rather than being able to focus on foreign pol icy which would damage Russia’s interests. This also should give President PUTIN more room for maneuver in the run-up to Russia’s own presidential election in 2018.

3. IVANOV reported that although the Kremlin had underestimated the strength of US media and liberal reaction to the DNC hack and TRUMP’s links to Russia, PUTIN was generally satisfied with the progress of the anti-CLINTON operation to date. He recently had had a drink with PUTIN to mark this. In IVANOV’s view, the US had tried to divide the Russian elite with sanctions but failed, whilst they, by contrast, had succeeded in splitting the US hawks inimical to Russia and the Washington elite more generally, half of whom had refused to endorse any presidential candidate as a result of Russian intervention.

4. Speaking separately, also in early August 2016, a Kremlin official involved in US relations commented on aspects of the Russian operation to date. Its goa Is had been threefold- asking sympathetic US actors how Moscow could help them; gathering relevant intelligence; and creating and disseminating compromising information (‘kompromat’). This had involved the Kremlin supporting various US political figures, including funding indirectly their recent visits to Moscow. S/he named a delegation from Lyndon LAROUCHE; presidential candidate Jill STEIN of the Green Party; TRUMP foreign policy adviser Carter PAGE; and former DIA Director Michael Flynn, in this regard and as successful in terms of perceived outcomes.

RUSSIA/US PRESIDENTIAL ELECTION: REACTION IN TRUMP CAMP TO RECENT NEGATIVE PUBLICITY ABOUT RUSSIAN INTERFERENCE AND LIKELY RESULTING TACTICS GOING FORWARD

Summary

· TRUMP campaign insider reports recent DNC email leaks were aimed at switching SANDERS (protest) voters away from CLINTON and over to TRUMP

· Admits Republican campaign underestimated resulting negative reaction from US liberals, elite and media and forced to change course as result

· Need now to turn tables on CLINTON’s use of PUTIN as bogeyman in election, although some resentment at Russian president’s perceived attempt to undermine USG and system over and above swinging presidential election

Detail

1. Speaking in confidence on 9 August 2016, an ethnic Russian associate of Republican US presidential candidate Donald TRUMP discussed the reaction inside his camp, and revised tactics therein resulting from recent negative publicity concerning Moscow’s clandestine involvement in the campaign. TRUMP’s associate reported that the aim of leaking the DNC e-mails to WikiLeaks during the Democratic Convention had been to swing supporters of Bernie SANDERS away from Hillary CU NTON and across to TRUMP. These voters were perceived as activist and anti-status quo and anti-establishment and in that regard sharing many features with the TRUMP campaign, including a visceral dislike of Hillary CU NTON. This objective had been conceived and promoted, inter aIia, by TRUMP’s foreign policy adviser Carter PAGE who had discussed it directly with the ethnic Russian associate.

2. Continuing on this theme, the ethnic Russian associate of TRUMP assessed that the problem was that the TRUMP campaign had underestimated the strength of the negative reaction from liberals and especially the conservative elite to Russian interference. This was forcing a rethink and a likely change of tactics. The main objective in the short term was to check Democratic candidate Hillary CLINTON’s successful exploitation of the PUTIN as bogeyman/Russian interference story to tarnish TRUMP and bolster her own (patriotic) credentials. The TRUMP campaign was focusing on tapping into support in the American television media to achieve this, as they reckoned this resource had been underused by them to date.

3. However, TRUMP’s associate also admitted that there was a fair amount of anger and resentment within the Republican candidate’s team at what was perceived by PUTIN as going beyond the objective of weakening CU NTON and bolstering TRUMP, by attempting to exploit the situation to undermine the US government and democratic system more generally. It was unclear at present how this aspect of the situation would play out in the weeks to come.

RUSSIA/US PRESIDENTIAL ELECTION: FURTHER DETAILS OF TRUMP LAWYER COHEN’S SECRET LIAISON WITH THE KREMLIN

Summary

· Kremlin insider reports TRUMP lawyer COHEN’s secret meeting/ s with Kremlin officials in August 2016 was/were held in Prague

· Russian parastatal organization Rossotrudnichestvo used as cover for this liaison and premises in Czech capital may have been used for the meeting/ s

· Pro-PUTIN leading Duma figure, KOSACHEV, reportedly involved as “plausibly deniable” facilitator and may have participated in the August meeting/ s with COHEN

Detail

1. Speaking to a compatriot and friend on 19 October 2016, a Kremlin insider provided further details of reported clandestine meeting/ s between Republican presidential candidate, Donald TRUMP’s lawyer Michael COHEN and Kremlin representatives in August 2016. Although the communication between them had to be cryptic for security reasons, the Kremlin insider clearly indicated to his/her friend that the reported contact/ s took place in Prague, Czech Republic.

2. Continuing on this theme, the Kremlin insider highlighted the importance of the Russian parastatal organization, Rossotrudnichestvo, in this contact between TRUMP campaign representative/ s and Kremlin officials. Rossotrudnichestvo was being used as cover for this relationship and its office in Prague may well have been used to host the COHEN /Russian Presidential Administration (PA) meeting/ s. It was considered a “plausibly deniable” vehicle for this, whilst remaining entirely under Kremlin control.

3.The Kremlin insider went on to identify leading pro-PUTIN Duma figure, Konstantin KOSACHEV (Head of the Foreign Relations Committee) as an important figure in the TRUMP campaign-Kremlin liaison operation. KOSA CHEV, also “plausibly deniable” being part of the Russian legislature rather than executive, had facilitated the contact in Prague and by implication, may have attended the meeting/ s with COHEN there in August.

Company Comment

We reported previously, in our Company Intelligence Report 2016/135 of 19 October 2016 from the same source, that COHEN met officials from the PA Legal Department clandestinely in an EU country in August 2016. This was in order to clean up the mess left behind by western media revelations of TRUMP ex-campaign manager MANAFORT’s corrupt relationship with the former pro-Russian YANUKOVYCH regime in Ukraine and TRUMP foreign policy advisor, Carter PAGE’s secret meetings in Moscow with senior regime figures in July 2016. According to the Kremlin advisor, these meeting/ s were originally scheduled for COHEN in Moscow but shifted to what was considered an operationally “soft” EU country when it was judged too compromising for him to travel to the Russian capital.

RUSSIA/UKRAINE: THE DEMISE OF TRUMP’S CAMPAIGN MANAGER PAUL MANAFORT

Summary

· Ex-Ukrainian President YANUKOVYCH confides directly to PUTIN that he authorized kick-back payments to MANAFORT, as alleged in western media. Assures Russian President however there is no documentary evidence/trail

· PUTIN and Russian leadership remain worried however and skeptical that YANUKOVYCH has fully covered the traces of these payments to TRUMP’s former campaign manager

· Close associate of TRUMP explains reasoning behind MANAFORT’s recent resignation. Ukraine revelations played part but others wanted MANAFORT out for various reasons, especially LEWANDOWSKI who remains influential

Detail

1. Speaking in late August 2016, in the immediate aftermath of Paul MANAFORT’s resignation as campaign manager for US Republican presidential candidate Donald TRUMP, a well-placed Russian figure reported on a recent meeting between President PUTIN and ex-President YANUKOVYCH of Ukraine. This had been held in secret on 15 August near Volgograd, Russia and the western media revelations about MANAFORT and Ukraine had featured prominently on the agenda. YANUKOVYCH had confided in PUTIN that he did authorize and order substantial kick-back payments to MANAFORT as alleged but sought to reassure him that there was no documentary trail left behind which could provide clear evidence of this.

2. Given YANUKOVYCH’s (unimpressive) record in covering up his own corrupt tracks in the past, PUTIN and others in the Russian leadership were skeptical about the ex-Ukrainian president’s reassurances on this as relating to MANAFORT. They therefore still feared the scandal had legs, especially as MANAFORT had been commercially active in Ukraine right up to the time (in March 2016) when he joined TRUMP’s campaign team. For them it therefore remained a point of potential political vulnerability and embarrassment.

3. Speaking separately, also in late August 2016, an American political figure associated with Donald TRUMP and his campaign outlined the reasons behind MANAFORT’s recent demise. S/he said it was true that the Ukraine corruption revelations had played a part in this but also, several senior players close to TRUMP had wanted MANAFORT out, primarily to loosen his control on strategy and policy formulation. Of particular importance in this regard was MANAFORT’s predecessor as campaign manager, Corey LEWANDOWSKI, who hated MANAFORT personally and remained close to TRUMP with whom he discussed the presidential campaign on a regular basis.

RUSSIA/US: KREMLIN FALLOUT FROM MEDIA EXPOSURE OF MOSCOW’S INTERFERENCE IN THE US PRESIDENTIAL CAMPAIGN

Summary

· Kremlin orders senior staff to remain silent in media and private on allegations of Russian interference in US presidential campaign

· Senior figure however confirms gist of allegations and reports IVANOV sacked as Head of Administration on account of giving PUTIN poor advice on issue. VAINO selected as his replacement partly because he was not involved in pro-TRUMP, anti-CLINTON operation/s

· Russians do have further ‘kompromat’ on CLINTON (e-mails) and considering disseminating it after Duma (legislative elections) in late September. Presidential spokesman PESKOV continues to lead on this

· However, equally important is Kremlin objective to shift policy consensus favorably to Russia in US post-OBAMA whoever wins. Both presidential candidates’ opposition to TPP and TTIP viewed as a result in this respect

· Senior Russian diplomat withdrawn from Washington embassy on account of potential exposure in US presidential election operation/s

Detail

1. Speaking in confidence to a trusted compatriot in mid-September 2016, a senior member of the Russian Presidential Administration (PA) commented on the political fallout from recent western media revelations about Moscow’s intervention, in favor of Donald TRUMP and against Hillary CLINTON, in the US presidential election. The PA official reported that the issue had become incredibly sensitive and that President PUTIN had issued direct orders that Kremlin and government insiders should not discuss it in public or even in private.

2. Despite this, the PA official confirmed, from direct knowledge, that the gist of the allegations was true. PUTIN had been receiving conflicting advice on interfering from three separate and expert groups. On one side had been the Russian ambassador to the US, Sergei KISLYAK, and the Ministry of Foreign Affairs, together with an independent and informal network run by presidential foreign policy advisor, Yuri USHAKOV (KISLYAK’s predecessor in Washington) who had urged caution and the potential negative impact on Russia from the operation/s. On the other side was former PA Head, Sergei IVANOV, backed by Russian Foreign Intelligence (SVR), who had advised PUTIN that the pro-TRUMP, anti-CLINTON operation/s would be both effective and plausibly deniable with little blowback. The first group/shad been proven right and this had been the catalyst in PUTIN’s decision to sack IVANOV (unexpectedly) as PA Head in August. His successor, Anton VAINO, had been selected for the job partly because he had not been involved in the US presidential election operation/s.

3. Continuing on this theme, the senior PA official said the situation now was that the Kremlin had further ‘kompromat’ on candidate CLINTON and had been considering releasing this via “plausibly deniable” channels after the Duma (legislative) elections were out of the way in mid-September. There was however a growing train of thought and associated lobby, arguing that the Russians could still make candidate CLINTON look “weak and stupid” by provoking her into railing against PUTIN and Russia without the need to release more of her e-mails. Presidential Spokesman, Dmitriy PESKOV remained a key figure in the operation, although any final decision on dissemination of further material would be taken by PUTIN himself.

4. The senior PA official also reported that a growing element in Moscow’s intervention in the US presidential election campaign was the objective of shifting the US political consensus in Russia’s perceived interests regardless of who won. It basically comprised of pushing candidate CLINTON away from President OBAMA’s policies. The best example of this was that both candidates now openly opposed the draft trade agreements, TPP and TTIP, which were assessed by Moscow as detrimental to Russian interests. Other issues where the Kremlin was looking to shift the US policy consensus were Ukraine and Syria. Overall however, the presidential election was considered still to be too close to call.

5. Finally, speaking separately to the same compatriot, a senior Russian MFA official reported that as a prophylactic measure, a leading Russian diplomat, Mikhail KULAGIN, had been withdrawn from Washington at short notice because Moscow feared his heavy involvement’ in the US presidential election operation, including the so-called veterans’ pensions ruse (reported previously), would be exposed in the media there. His replacement, Andrei BONDAREV however was clean in this regard.

RUSSIA/US PRESIDENTIAL ELECTION: KREMLIN-ALPHA GROUP CO- OPERATION

Summary

· Top level Russian official confirms current closeness of Alpha Group- PUTIN relationship. Significant favors continue to be done in both directions and FRIDMAN and AVEN still giving informal advice to PUTIN, especially on the US

· Key intermediary in PUTIN-Alpha relationship identified as Oleg GOVORUN, currently Head of a Presidential Administration department but throughout the 1990s, the Alpha executive who delivered illicit cash directly to PUTIN

· PUTIN personally unbothered about Alpha’s current lack of investment in Russia but under pressure from colleagues over this and able to exploit it as lever over Alpha interlocutors

Detail

1. Speaking to a trusted compatriot in mid-September 2016, a top level Russian government official commented on the history and current state of relations between President PUTIN and the Alpha Group of businesses led by oligarchs Mikhail FRIDMAN, Petr AVEN and German KHAN. The Russian government figure reported that although they had had their ups and downs, the leading figures in Alpha currently were on very good terms with PUTIN. Significant favors continued to be done in both directions, primarily political ones for PUTIN and business/legal ones for Alpha. Also, FRIDMAN and AVEN continued to give informal advice to PUTIN on foreign policy, and especially about the US where he distrusted advice being given to him by officials.

2. Although FRIDMAN recently had met directly with PUTIN in Russia, much of the dialogue and business between them was mediated through a senior Presidential Administration official, Oleg GOVORUN, who currently headed the department therein responsible for Social Co-operation With the CIS. GOVORUN was trusted by PUTIN and recently had accompanied him to Uzbekistan to pay respects at the tomb of former president KARIMOV. However according to the top level Russian government official, during the 1990s GOVORUN had been Head of Government Relations at Alpha Group and in reality, the “driver” and “bag carrier” used by FRIDMAN and AVEN to deliver large amounts of illicit cash to the Russian president, at that time deputy Mayor of St Petersburg. Given that and the continuing sensitivity of the PUTIN-Alpha relationship, and need for plausible deniability, much of the contact between them was now indirect and entrusted to the relatively low profile GOVORUN.

3. The top level Russian government official described the PUTIN-Alpha relationship as both carrot and stick. Alpha held ‘kompromat’ on PUTIN and his corrupt business activities from the 1990s whilst although not personally overly bothered by Alpha’s failure to reinvest the proceeds of its TNK oil company sale into the Russian economy since, the Russian president was able to use pressure on this count from senior Kremlin colleagues as a lever on FRIDMAN and AVEN to make them do his political bidding.

RUSSIA/US PRESIDENTIAL ELECTION- REPUBLICAN CANDIDATE TRUMP’S PRIOR ACTIVITIES IN ST PETERSBURG

Summary

· Two knowledgeable St Petersburg sources claim Republican candidate TRUMP has paid bribes and engaged in sexual activities there but key witnesses silenced and evidence hard to obtain

· Both believe Azeri business associate of TRUMP, Araz AGALAROV will know the details

Detail

1. Speaking to a trusted compatriot in September 2016, two well-placed sources based in St Petersburg, one in the political/business elite and the other involved in the local services and tourist industry, commented on Republican US presidential candidate Donald TRUMP’s prior activities in the city.

2. Both knew TRUMP had visited St Petersburg on several occasions in the past and had been interested in doing business deals there involving real estate. The local business/political elite figure reported that TRUMP had paid bribes there to further his interests but very discreetly and only through affiliated companies, making it very hard to prove. The local services industry source reported that TRUMP had participated in sex parties in the city too, but that all direct witnesses to this recently had been “silenced” i.e. bribed or coerced to disappear.

3. The two St Petersburg figures cited believed an Azeri business figure, Araz AGALAROV (with offices in Baku and London) had been closely involved with TRUMP in Russia and would know most of the details of what the Republican presidential candidate had got up to there.

RUSSIA: KREMLIN ASSESSMENT OF TRUMP ANO RUSSIAN INTERFERENCE. IN US PRESIDENTIAL ELECTION

Summary

· Buyer’s remorse sets In with Kremlin over TRUMP support operation In US presidential election. Russian leadership disappointed that leaked emails on CLINTON ‘have not had greater impact in campaign

· Russians have Injected further anti-CLINTON material into the ‘plausibly deniable’ leaks pipeline which will continue to surface, but best material already in public domain

· PUTIN angry with senior officials who “overpromised” on TRUMP and further heads likely to roll as result. Foreign Minister LAVROV may be next.

· TRUMP supported by Kremlin because seen as divisive, anti-establishment candidate who would shake up current international status quo In Russia’