Friday, March 31, 2017

Why FBI Can't Tell All on Trump, Russia

Published on Alternet (http://www.alternet.org)

Why FBI Can't Tell All on Trump, Russia

By Russ Baker [1], C. Collins [2], Jonathan Z. Larsen [3] / WhoWhatWhy [4]
March 30, 2017

   Reporters: Jonathan Z. Larsen is the former editor of The Village Voice, whose reporting team included the late Wayne Barrett and Robert I. Friedman. These people and the paper produced many of the important early investigative reports on Donald Trump and on the mob. Larsen is now a senior editor and board member of WhoWhatWhy. Russ Baker, a former investigative reporter for The Village Voice, is Editor-in-Chief of WhoWhatWhy. C. Collins is a WhoWhatWhy reporter.

  UPDATE: Listen to a behind-the-scenes interview on this exclusive Trump-Russia-FBI story  a conversation with Russ Baker and Jonathan Larsen on Radio WhoWhatWhy [5].

***

  The Federal Bureau of Investigation cannot tell us what we need to know about Donald Trump’s contacts with Russia. Why? Because doing so would jeopardize a long-running, ultra-sensitive operation targeting mobsters tied to Russian President Vladimir Putin — and to Trump.

   But the Feds’ stonewalling risks something far more dangerous: Failing to resolve a crisis of trust in America’s president. WhoWhatWhy provides the details of a two-month investigation in this 6,500-word exposé.

     The FBI apparently knew, directly or indirectly, based upon available facts, that prior to Election Day, Trump and his campaign had personal and business dealings with certain individuals and entities linked to criminal elements — including reputed Russian gangsters — connected to Putin.

   The same facts suggest that the FBI knew or should have known enough prior to the election to justify informing the public about its ongoing investigation of potentially compromising relationships between Trump, Putin, and Russian mobsters — even if it meant losing or exposing a valued informant.

***

    It will take an agency independent of the Federal Bureau of Investigation (FBI) to expose Donald Trump’s true relationship with Moscow and the role Russia may have played in getting him elected.

     Director James Comey rece [6]ntly revealed [6] in a congressional hearing for the first time that the FBI “is investigating … the nature of any links between individuals associated with the Trump campaign and the Russian government and whether there was any coordination between the campaign and Russia’s efforts.”

   However, a two-month WhoWhatWhy investigation has revealed an important reason the Bureau may be facing undisclosed obstacles to revealing what it knows to the public or to lawmakers.

   Our investigation also may explain why the FBI, which was very public about its probe of Hillary Clinton’s emails, never disclosed its investigation of the Trump campaign prior to the election, even though we now know that it commenced last July.
Such publicity could have exposed a high-value, long-running FBI operation against an organized crime network headquartered in the former Soviet Union. That operation depended on a convicted criminal who for years was closely connected with Trump, working with him in Trump Tower — while constantly informing for the FBI and the Department of Justice (DOJ), and being legally protected by them.

     Some federal officials were so involved in protecting this source — despite his massive fraud and deep connections to organized crime — that they became his defense counsel after they left the government.

     In secret court proceedings that were later unsealed, both current and former government attorneys argued for extreme leniency toward the man when he was finally sentenced. An FBI agent who expressed his support for the informant later joined Trump’s private security force.

    In this way, the FBI’s dilemma about revealing valuable sources, assets and equities in its ongoing investigation of links between the Trump administration and Russian criminal elements harkens back to the embarrassing, now infamous Whitey Bulger episode. In that case, the Feds protected Bulger, a dangerous Boston-based mobster serving as their highly valued informant, even as the serial criminal continued to participate in heinous crimes. The FBI now apparently finds itself confronted with similar issues: Is its investigation of the mob so crucial to national security that it outweighs the public’s right to know about their president?

    Jack Blum, a former senior Senate investigator and one of America’s foremost experts on white-collar financial crime, sums up the complexity — and the urgency — of the situation:

    “What makes this investigation especially difficult is that it will lead into the complex relations between the counterintelligence operations of the FBI and its criminal investigative work,” says Blum.

   “Further, it is likely other elements of the intelligence community are involved and that they have ‘equities’  to protect. Much of the evidence, justifiably, will be highly classified to protect sources and methods and in particular to protect individuals who have helped one or another of the agencies involved.

“I Can’t Go into Those Details Here”

    In his March 20 testimony before the House Intelligence Committee, FBI Director James Comey said that he could not go into detail about its probe into the Trump administration’s Russian connection.

    If he had, we might have learned that, for more than three decades the FBI has had Trump Tower in its sights. Many of its occupants have been targets of major investigations, others have been surveilled, and yet others have served as informants. One thing many of them have in common is deep ties to organized crime — including the Russian mafia.

    Felix Sater fits all of these categories. A convicted felon, Sater worked in Trump Tower, made business deals with Donald Trump through Sater’s real estate firm, Bayrock, cooperated with the FBI and CIA [7] and was subsequently protected by the DOJ from paying for his crimes. And the Moscow-born immigrant remains deeply linked to Russia and Ukraine.

   Based on documents examined by WhoWhatWhy, it is possible to draw certain conclusions that help connect the dots between Trump, the FBI, Russia and the mob.
The resulting picture is not a pretty one for Donald Trump. However, because of its efforts to neutralize the organization of perhaps the world’s most powerful mobster — a man considered a serious national security threat — the Bureau might just have compromised its own ability to provide to Congress or inform the American public about all of the ties that exist between Trump, his presidential campaign and the regime of Vladimir Putin.

   Further, Trump’s business association with Sater and Bayrock may have put the president’s financial interests at substantial risk, including possibly millions of dollars in fines, penalties, or other damages, should civil or criminal misconduct be proven in court or otherwise resolved if claims were triggered. Anyone who knew of Trump’s jeopardy in this matter would have enormous leverage over the Trump operation.
The government’s kid-glove treatment of Sater is partially explained in those long-suppressed legal documents, which reveal that the mobbed-up businessman was perceived by the authorities to be extraordinarily cooperative and useful. Legal filings on Sater’s behalf state that he “reported daily” to the FBI for many years.

     Sater agreed to assist the US government on issues of national security and organized crime. His activities were first revealed in a lawsuit brought by a former employee of Sater’s real estate firm, Bayrock. While working with Trump, Sater’s name became “Satter” publicly — presumably with the knowledge if not the encouragement of the FBI. 

     This distanced Satter the businessman, and his partners, from Sater the criminal.
Attorneys representing the plaintiff spent years untangling the financial machinations of Bayrock — which they allege involve hundred of millions of dollars in claims arising from, among other things, money laundering and fraud.

     They also sought to expose the government’s awareness of — even complicity in — Sater’s activities.

    Their efforts to unseal court documents, including Sater’s legal history, have been met with a concerted pushback by DOJ lawyers, mischaracterizations of the case record, and even — according to the attorneys — anonymous death threats.

    Felix Sater could not be reached for comment.

A Stunning Discovery

   The story of Donald Trump’s business dealings with a Russian mobster might never have come out were it not for a Bayrock employee stumbling upon Sater’s cooperation agreement with the FBI, among other sensitive information, that had inadvertently been left accessible.

    That employee sought out attorney Fred Oberlander, who combed through the documents. Over time, Oberlander — who was instructing undergraduates at Yale University in computational physics and computer science from age 18 — began to deconstruct the byzantine financial structure that was Bayrock, which allegedly hid a range of crimes, including massive-scale money laundering from sources in the former Soviet Union.

   On February 10, 2010, the US Court of Appeals for the Second Circuit, in Manhattan, instructed Oberlander, in a secret order, not to inform the legislative branch of the United States government what he knew about Felix Sater. (That order remains under seal, but a federal judge has unsealed a redacted version [8].)

  Apparently, the appellate court was persuaded that the unusually broad order was justified on the merits, but the lawyers opposing Sater found the imposed remedy extraordinary.

  “Our being ordered to not tell Congress what we know may well be the first and only hyper-injunction in American history,” asserts Oberlander’s own attorney, Richard Lerner. “If there are others who have been scared silent by judges who wish to nullify Congressional and public oversight, we may never know. That is frightening.”
[9]

Characters Out of a James Bond Movie

   Preventing the Russian mafia from expanding its foothold in the United States has been one of the Bureau’s top priorities. In fact, it might be the FBI’s most important function apart from its role in the fight against terrorism.

  The Russian mob has a breathtaking and underappreciated reach. It is so powerful that FBI Agent Peter Kowenhoven told CNN in 2009 [10] that Semion Mogilevich, its “boss of bosses,” is a strategic threat, and a man who “can, with a telephone call or order, affect the global economy.”


        [14]



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