From Russia with Donald Trump

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As of 2018, we don’t know whether the Trump campaign willingly colluded with Russia in its efforts to undermine the 2016 election. But we do know that Russia hacked into DNC emails and spread fake news propaganda on social networks to help Donald Trump. We know the Russians wanted Trump to win and did whatever they could to accomplish that. We know the Trump campaign was at least okay with the Russian hacking and efforts. Hell, one Trump campaign official even drunkenly bragged about the Russians hacking into Hillary Clinton’s emails. And we know that several Trumpworld figures have corresponded with Russian hackers, Russian oligarchs, and people with ties to the Russian government. Furthermore, Trump has praised Russian President Vladimir Putin in his speeches, even when he’s every opportunity to criticize the Kremlin dictator. Though collusion hasn’t been proven, what we do know of Trumpworld’s connections with Russia gives us a reasonable case for Robert Mueller to investigate.

On November 9, 2016, just a minutes after Donald Trump was elected president of the United States, a man named Vyacheslav Nikonov made a very unusual statement in the Russian State Duma. “Dear friends, respected colleagues!” he said. “Three minutes ago, Hillary Clinton admitted her defeat in US presidential elections, and a second ago Trump started his speech as an elected president of the United States of America, and I congratulate you on this.” Since Nikonov is the leader of the pro-Putin United Russia Party, his announcement that day was a clear signal that Trump’s victory was a victory for Putin’s Russia.

Longtime journalist Craig Unger has attempted to gather all the evidence we have of Donald Trump’s connections to the Russian mafia and government and lay it all out in a clear, comprehensive narrative in his book, House of Trump, House of Putin: The Untold Story of Donald Trump and the Russian Mafia. Though the book claims to tell the “untold story,” it’s not entirely unclear of how much is new. Because like a lot of the skeletons in Trump’s gilded closet, one of the hardest things to accept about the Trump-Russia saga is how transparent it is. In fact, so much evidence hides in plain sight, and somehow that’s made it more difficult to accept. In his book, Unger names 59 Russians as Trump business associates and follows the purported financial links between them and the Trump Organization, going back decades. Many of them are quite shady. Although Unger doesn’t provide any evidence that Trump gave Russia anything concrete in return for their help, the case he makes for how much potential leverage the Russians have over Trump is damning. In fact, Unger thinks Russia’s use of Trump constitutes “one of the greatest intelligence operations in history,” as he puts in his book.

As Craig Unger claims. what most Americans don’t understand is that the Russian mafia is different from the American mafia. While American crime syndicates are often targets for FBI investigation, the mafia is essentially a state actor in Russia. When asked about the mafia, former KGB Russian counterintelligence operations Gen. Oleg Kalugin told Unger, “Oh, it’s part of the KGB. It’s part of the Russian government.” In Russia, there’s no Wall Street or anything like Goldman Sachs. After the collapse of the Soviet Union, rich gangsters and government officials were able to privatize and loot state-held assets in coal, oil, minerals, and banking. In Vladmir Putin’s Russia, criminal syndicates have become increasingly intertwined with its intelligence services, blurring the line between mafia dons and spies. In fact, Russia expert Mark Galeotti would agree with Unger since he wrote in his book, The Vory: Russia’s Super Mafia that Putin’s Kremlin consolidated power by “not simply taming, but absorbing, the underworld.” Putin didn’t care what these gangsters did as long as they strengthened his power and personal financial interests. Since the 1990s, its estimated that some $1.3 trillion has flowed out of Russia.

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Semion Mogilevich is one of the richest and most influential gangsters in the world. Known as the ultimate Russian mob boss, he may not have any direct connection to Donald Trump. But many of his associates and underlings do.

One of the key mob bosses is the squat Ukranian Semion Mogilevich. In Russia, he’s a big time Russian crime boss with a multibillion empire and a wide range of crimes that will make Al Capone look like an inept convenience store robber. According to the FBI, Mogilevich started out as the key money-laundering contact for the Solntsevskaya Bratva, or Brotherhood, one of the richest criminal syndicates in the world. Craig Unger believed that he could’ve been the CEO of Goldman Sachs if he was born in America. The FBI considers Mogilevich the “boss of bosses” of the Russian mafia who’s even feared by his fellow gangsters as “the most powerful mobster in the world.” He’s run drug trafficking rings at an international scale. He’s used a jewelry business in Moscow and Budapest as a front for art that Russian gangsters stole from museums, churches, and synagogues all over Europe. He’s even been accused of selling $20 million in stolen weapons to Iran. From what the FBI has on him, Mogilevich has laundered money through more than 100 front companies around the world and held bank accounts in at least 27 countries. Mogilevich is famous for designing elaborate financial schemes that are extremely difficult, even possible to detect. Since the planning and setup can take years and involve a wide range of people in various positions of power whose roles/identities are sometimes never discovered. In Russia, his influence reaches all the way to the top. Ex-Russian spy, Alexander Litvinenko said in an interview with investigators in 2005, “Mogilevich have good relationship with Putin since 1994 or 1993.” A year later Litvinenko was dead, suspiciously poisoned by Kremlin agents. Many of the Russian mobsters who bought units from Donald Trump have ties to this man.

According to Craig Unger, it probably all began as a money-laundering operation with the Russian mafia. After all, anyone who’s known about Donald Trump for a long time knows that he likes doing business with gangsters. Partly because they pay top dollar and loan money when traditional banks won’t. Essentially, for more than 30 years Trump was working with the Russian mafia. He profited from them. They rescued and bailed him out, taking him from being $4 billion in debt to becoming a multibillionaire again. And they fueled his political ambitions. And since Trump had worked with the Russian mafia, he was in bed with the Kremlin as well, whether he knew it or not.

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This is a chart of the Russian-linked and notorious criminals who lived and worked at Trump Tower. Since the place has been the HQ for money laundering operations and more. Helps that during the 1980s, it was the only high-rise to accept anonymous buyers.

To Craig Unger’s knowledge, the very first documented episode he could find was in 1984 when a man named David Bogatin met with Donald Trump in Trump Tower right after it opened since it was the only high-rise in New York City at the time to accept anonymous buyers. Now Bogatin is a Russian mobster, convicted gasoline bootlegger, and close ally of major Russian mob boss and king of money launderers Semion Mogilevich. Anyway, Bogatin came to that meeting prepared to spend $6 million which is equivalent to $15 million today. At that meeting, he bought 5 condos, which the Kremlin later seized on claims they were used to launder money for the Russian mob. We don’t exactly know what was in Trump’s head at the time or what he knew. But Unger has documented 1,300 transactions of this kind with Russian mobsters. These real estate transactions were all cash purchases made by anonymous shell companies that were obviously fronts for criminal money-laundering operations. By the early 2000s, 1/3 of the buyers of Trump Tower’s most expensive condos were either Russia-linked shell companies or individuals from the former Soviet Union. In Florida, about 63 Russian buyers spent at least $98 on Trump properties while another 1/3 of the units were bought by shell companies. Since this represents a large chunk of Trump’s real estate activity in the United States, it’s difficult to argue he had no idea what was going on. Aside from Bogatin, there’s his brother Yakov, who was involved in an elaborate stock fraud with Mogilevich. Two of Trump’s Sunny Isles buyers Anatoly Golubchik and Michael Sall were convicted of taking part in a massive international gambling and money laundering syndicate run out of the New York Trump Tower.

Another Trump buyer was an Uzbek mob-connected diamond dealer named Eduard Nektalov. At the time, Nektalov was under investigation by a Treasury Department task force for mob-connected money laundering. He bought a condo in midtown Manhattan’s Trump World Tower on the 79th floor, directly below Kellyanne Conway. A month later, he sold his unit for $500,000 profit. The next year after rumors circulated of him cooperating with federal investigators, Nektalov was gunned down on Sixth Avenue.

In 1991, Semion Mogilevich paid a Russian judge to spring fellow mob boss Vyachelsav Kirillovich Ivankov, from a Siberian gulag. In Russia, Ivankov was infamous for torturing his victims and boasting about murders he arranged. After his release, Ivankov headed to New York City on an illegal business visa. Once there, he bought a Rolls Royce dealership to use “as a front to launder criminal proceeds.” One of Ivankov’s partners in the operation was Felix Komarov, an upscale art dealer who lived in Trump Plaza on Third Avenue. After receiving a briefcase filled with $1.5 million in cash, over the next 3 years, Ivankov oversaw the mob’s growth from a local extortion racket to a multibillion dollar enterprise. According to the FBI, he recruited 2 “combat brigades” of Special Forces veterans from the Soviet war in Afghanistan to run the mafia’s protection racket and kill his enemies. Feds later found out that Ivankov made frequent visit to Trump Taj Mahal in Atlantic City, New Jersey, where Russian gangsters routinely laundered huge sums of money. So much that it was repeatedly cited by the Treasury Department’s Financial Crimes Enforcement Network for having inadequate money-laundering controls. And in 2015, was fined $10 million and admitted for having “willfully violated” anti-money-laundering regulations for years. The also found that he lived in a luxury condo at Trump Tower. Though despite being Donald Trump’s neighbor, there’s no evidence they knew each other personally. But the fact a top Russian mafia boss lived and worked in Trump’s building shows just how much high-level Russian gangsters saw Trump’s properties as a home away from home.

Then there’s Russian mob leader Alimzhan Tokhtakhounov who ran an entire gambling and money-laundering network out of Unit 63A at Trump Tower (which is 3 floors below Donald Trump’s residence). In fact, Tokhtakhounov was a VIP attendee at Trump’s 2013 Miss Universe Pageant in Moscow just 7 months after the FBI busted his gambling rings and rounded up 29 suspects. The operation, which prosecutors called “the world’s largest sports book,” was run out of Trump Tower condos, including the building’s whole 51st floor. In addition, Unit 63A served as “sophisticated money-laundering scheme” moving an estimated $100 million out of the former Soviet Union, through shell companies in Cyprus, and into investments in the United States. According to the federal indictment, the money launderers paid Tokhtakhounov $10 million. A decade earlier, Tokhtakhounov was indicted for conspiring to fix the ice-skating competition at the 2002 Winter Olympics and was the only suspect to avoid arrest.

Russian mobsters and oligarchs also had ties to some of Donald Trump’s other properties outside the United States. In November 2017, NBC News reported Trump’s Panama hotel had ties to organized crime. While a Russian state-owned bank under US sanctions helped finance the construction of the 65-story Trump International Hotel and Tower in Toronto. And in December 2016, Jared Kushner met with that bank’s CEO. Since this represents a large chunk of Trump’s real estate activity in the United States, it’s difficult to argue he had no idea what was going on.

But how did Donald Trump become a “person of interest” to the Russians over 30 years ago, before his ascent to the presidency was even fathomable? It’s actually not as strange as it seems. First of all, Russians have always wanted to align with certain powerful businessman. Nor was Trump the only guy they targeted. For the Russians have a history going back to the American businessman Armand Hammer during the 1970s-80s who they turned into an asset. In fact, Russia had hundreds of agents and assets in the US. According to Gen. Kalugin, the US was a paradise for spies and they had recruited roughly 300 agents and assets in the country. Trump was one of them.

Nor were Russian operations just limited to money laundering for there was a parallel effort to seduce Donald Trump. Sometime in 1986, Russia’s ambassador to the US, Yuri Dubinin visited Trump in Trump Tower, said that his building was “fabulous,” suggested that he should build one in Moscow, and they arranged for a trip to the Russian capital. According to Gen. Kalugin, this was likely the first step in the process to recruit and compromise Trump, which they probably succeed with flying colors. Since Trump is a sucker for flattery. So we shouldn’t be the least surprised if the Russians have compromising materials on Trump’s Moscow activities. Since they’re very good at acquiring compromising stuff on just about anyone. Not that it would be hard for them.

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Here’s a picture of Donald Trump with Tevfik Artif and Felix Sater. Artif would be busted for running a prostitution ring on his boat in Turkey. While Sater served as an informant while doing his Russia-linked dirty deeds to avoid prison time for racketeering.

Though we don’t have evidence whether such compromising material on Donald Trump’s Moscow activities exists and Craig Unger has tried but couldn’t find any corroboration from several people who assured him it does. But that’s all beside the point. Since Unger believes that the real evidence is already out there in the form of the Bayrock Group, a real estate development company located on Trump Tower’s 24th floor. The founder was a Kazakh man named Tevfik Arif while the managing director was Felix Sater. In 2005, Bayrock proceeded to partner with Trump and helped him develop a new business model he desperately needed. Because Trump was $4 billion in debt after his Atlantic City casinos went bankrupt that he couldn’t get a bank loan from anywhere in the West. Bayrock came in with a new business model that says, “You don’t have to raise any money. You don’t have to do any of the real estate development. We just want to franchise your name, we’ll give you 18 to 25 percent royalties, and we’ll effectively do all the work. And if the Trump Organization gets involved in the management of these buildings, they’ll get extra fees for that.” Apparently, Trump found the idea fabulously lucrative. Meanwhile, the Bayrock associates (particularly Sater) operated out of Trump Tower as well as constantly flew back and forth to Russia. In his book, Unger detailed several channels through which various people at Bayrock have close ties to the Kremlin. While he talked about Sater’s trips to Moscow even as late as 2016, hoping to build Trump Tower there.

Yet, Bayrock and its deals became quickly mired in controversy. First, Forbes and other publications reported that the company was financed by a notoriously corrupt group known as the Trio. In 2010, Turkish prosecutors arrested Tevfik Arif on charges of setting up a prostitution ring after found aboard his boat with 9 young women, 2 of whom were 16 years old. He was later acquitted since the women refused to talk. That same year, 2 former Bayrock executives filed a lawsuit alleging Artif started a firm “backed by oligarchs and money they stole from the Russian people.” In addition, the suit alleged Bayrock “was substantially and covertly mob-owned and operated.” According to them, the company’s real purpose was to develop expensive properties bearing the Trump brand and use the projects to launder money and evade taxes. Though the suit doesn’t claim that Donald Trump was complicit in the scam, The Financial Times found that Trump SoHo had “multiple ties to an alleged international money-laundering network.” In one case, a former Kazakh energy minister is being sued in federal court for conspiring to “systematically loot hundreds of millions of dollars of public assets” before purchasing three condos in Trump SoHo to launder his “ill-gotten funds.”

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Donald Trump has often denied his association with Felix Sater. Yet, in reality, the two have been quite close as this business card shows.

During his collaboration with Bayrock, Donald Trump became close to the man who ran the firm’s daily operations, Felix Sater. Sater had numerous ties to Russian oligarchs and Russian intelligence. His father was a boss for Semion Mogilevich who was convicted for extorting local restaurants, grocery stores, and a medical clinic. Sater tried making it as a stockbroker. But his career came to an end in 1991 when he stabbed a Wall Street foe in the face with a broken margarita glass during a bar fight, opening wounds requiring 110 stitches. He then lost his trading license over the attack and served a year in prison. In 1998, Sater pleaded guilty to racketeering on grounds of operating a “pump and dump” stock fraud partnership with alleged Russian mobsters that bilked investors of at least $40 million. To avoid prison time, Sater turned informer. But according to documents from the lawsuit against Bayrock, he also resumed “his old tricks.” By 2003, the suit alleges, Sater controlled the majority of Bayrock shares and proceeded to use the firm to launder hundreds of millions of dollars while skimming and extorting millions more. In addition, the suit claimed that Sater committed fraud by concealing his racketeering and that he threatened “to kill anyone at the firm he thought knew of the crimes committed there and might report it.”

By Felix Sater’s account in sworn testimony, he was very tight with Donald Trump. He flew to Colorado with him. He accompanied Donald Jr. And Ivanka on a trip to Moscow at Trump’s invitation. And he met with Trump’s inner circle “constantly.” In Trump Tower, he often dropped by Trump’s office to pitch business ideas. Trump and his lawyers claim he wasn’t aware of Sater’s checkered past when he signed on to do business with Bayrock. This is plausible since Sater’s plea deal in the stock fraud was kept secred due to his role as an informant. But even after The New York Times revealed Sater’s criminal record in 2007, Sater kept using office space provided by the Trump Organization. In 2010, he received a Trump Organization business card reading: FELIX H. SATER, SENIOR ADVISOR TO DONALD TRUMP. As of 2017, Sater apparently remains close to Trump’s inner circle. One week before National Security Adviser Michael Flynn was fired for failing to report meetings with Russian officials, Trump’s personal attorney Michael Cohen hand-delivered a “back channel plan” for lifting sanctions on Russia to Flynn’s office. According to the Times, the co-author was Felix Sater.

Nonetheless, like many of Donald Trump’s business projects, his deals with Bayrock didn’t bear fruit. International projects in Russia and Poland never materialized. A Trump Tower being built in Ft. Lauderdale ran out of money before completion, leaving behind a massive concrete shell. Trump SoHo was ultimately foreclosed and resold. But Trump’s Russian investors left him with a high-profile property he could leverage since he and Ivanka are still listed as managers. And it’s said he made $3 million from it in 2015.

But is there any evidence that Donald Trump actively sought out Russian money by making clear that his businesses could be used to hide ill-gotten gains? According to Craig Unger, it’s difficult to say. Because he’s not sure if Trump had to. From how the Russian mob transactions took place, Trump didn’t have to say anything. After all, the Trump Organization was desperate for money and knew the caliber of people they were dealing with. So they were either okay with this or deliberately chose not to do their due diligence. Other real estate developers may do this as well, but they usually don’t become president of the United States.

Donald Trump seems much more motivated by money than political ideology. But was his drift into politics in any way influenced by his financial entanglements? There’s no clear answer. Yet, Craig Unger told Vox one weird anecdote about Trump’s first wife, Ivana, whom he married in 1977. Apparently, Czech secret police had started following her and her family in the late 1980s and one of their files said that Trump was being pressured to run for president. But what does that mean? Who was pressuring him and why? How were they applying the pressure? And did it have anything to do with potentially compromising materials the Russians had on Trump during his 1987 trip to Moscow? What we do know is that when Trump returned from his first Moscow trip, he took out full-page ads in the Washington Post, New York Times, and Boston Globe which pushed anti-European and anti-NATO views that were aligned with the Soviet plan to destroy the Western alliance. Whether he always believed such things or not, it’s worth noting.

Now Craig Unger didn’t go to Russia for obvious reasons given how Vladimir Putin tends to murder critical reporters. But most of what he found out came from public sources, which is stunning. One of his sources tipped him off on the high-ranking Russian mob boss Semion Mogilevich, whom he had never heard of before. He’s even been accused of selling $20 million in stolen weapons to Iran. Anyway, that led Unger to an online database revealing home ownership in the state of New York, along with purchases and sales. So he went to the Trump properties. Every time Unger found a Russian name, he’d research it. He’d take their name and Mogilevich in Google and as he told Vox, “it was like hitting the jackpot on a slot machine, time after time after time.” Among the Russians Unger found on the Trump property listings, there were countless people either indicted on money laundering or gunned down on Sixth Avenue. He also found a huge percentage with criminal histories, which sort of got him started. He also had a research assistant who spoke Russian and helped him break the language barrier for him.

But does Craig Unger’s book about Donald Trump and Russia offer anything new? Well, the insights Unger gained from Gen. Kalugin were completely new. Yet, most of what he did was compile what was out there but haven’t been pieced together. For instance, he found a lot of the Russian-connected stories published in the crime pages of the New York Post and the New York Daily News. These were just straight-up crime stories you’d see in a tabloid. After all, Americans don’t think crime stories involving the Russian mob would have any geopolitical implications or forces behind it. Nevertheless, many of these seemingly random Russian crime stories appearing in the tabloids again and again was connected to a much larger operation ensnaring Trump and the people around him.

Still, even if Donald Trump has no idea how many deals he and his businesses made with Russian investors, he certainly didn’t “stay away” from Russia. After all, he and his organization have aggressively promoted his business there for decades, seeking to entice investors and buyers for some of his most high-profile developments. Whether he knew it or not, Russian mobsters and corrupt oligarchs used his properties not only to launder vast sums of money from extortion, drugs, gambling, and racketeering, but even as a base for their criminal activities. In the process, they propped up Trump’s business and enabled him to reinvent his image. Without the Russian mafia, Trump wouldn’t be president of the United States.

However, if Donald Trump is a Russian asset, he’s not the only one targeted. During the 1980s and 1990s, the US government saw a pattern by which criminals used condos to launder money. As former Clinton official Jonathan Winer told The New Republic, “It didn’t matter that you paid too much, because the real estate values would rise, and it was a way of turning dirty money into clean money. It was done very systematically, and it explained why there are so many high-rises where the units were sold but no one is living in them.” One of the things Craig Unger’s book shows is that there’s a new kind of global war going on in which the weapons are information, data, social media, and financial institutions. The Russian mafia is only one weapon in this global conflict and the Russians have been smartly fighting it since the fall of the Soviet Union. The Russians start businesses and front companies and commodities firms appearing legitimate but essentially work to advance the Russian state’s interests. Many of today’s Russian oligarchs seek to portray themselves as unremarkable businessmen, preferring that their life-and-death struggles for riches in the 1990s fade into history. Yet, as their influence in the west grows, it becomes more important to understand any links to the authoritarians and kleptocrats back home. The Russians are very good at getting people financially entangled and then using that leverage to get what they want. This appears what the Russians have done with Trump and now he’s president. As former top official Elsie Bean told The Financial Times, “Russia has long been associated with dirty money. Anyone getting substantial funds originating in the former Soviet Union should have known that the funds were high risk and required a careful due diligence review to ensure the money was clean.”

Nonetheless, the most troubling part of all this is that the Russians simply exploited our own corrupt system. The studied our pay-to-play culture, found its weak spots, and very carefully manipulated it. As long as our culture remains unchanged, we should expect this kind of exploitation. Sometimes the worst part about a scandal is what’s legal. The Russians studied our campaign system and campaign finance law and masterfully exploited it. They’ve used pharmaceutical companies, energy companies, and financial institutions to pour money into politics. And we really have no idea the extent of their influence. Vladimir Putin may be right in his insistence that American democracy is also corrupt while he’s showing us exactly how screwed up it is. Donald Trump is just the most glaring example. But there are others, most of who we don’t know anything about.

Whether you believe Donald Trump is owned by the Russian mob or not, Craig Unger presents a compelling case in his book. Though some of his statements in issues might read like conspiracy theories, but so much of it makes a lot of sense. Besides, Unger isn’t the only guy who thinks the Russian mafia owns Trump. Nor Trump is the only prominent figure with shady Russian ties as you can see within his administration. Nor is the Trump Organization the only entity. Trump’s longtime personal lawyer Michael Cohen had an uncle who owned a Brooklyn catering hall called El Caribe, which “for decades was the scene of mob weddings and Christmas parties,” and housed offices of “two of New York’s most notorious Russian mobsters.” Then there’s the matter with the NRA receiving money from 23 Russian donors during the 2016 campaign. Not to mention, Rep. Dana Rohrbacher was considered “Putin’s favorite congressman” long before Trump ran for president and was instrumental in killing some critical anti-Russian legislation. Thankfully, he’s lost to a Democrat this year. We may not know whether the Trump campaign colluded with Russia or the full extent of the Trump-Russian relationship. But as with many aspects of Trump’s business practices, what we know is damning. There is no doubt that Trump has taken Russian money. And when Trump receives millions of dollars from someone, he’s more likely to be beholden to them. But that doesn’t mean Trump is loyal to them, because he’s just as likely to drop his Russian backers once they prove no longer useful. Since Trump’s true loyalty is only to himself. So we must be concerned.

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