In the twilight of the ceaselessly dueling courtroom gods, legacies wobble and crack.
Once, they were unquestioned giants of the legal profession. David Boies, the slayer of Microsoft’s monopoly, the man Al Gore turned to in hopes of salvaging his bid for the presidency. Alan Dershowitz, one of the intellectual bulwarks of the O.J. Simpson defense team, the tactician immortalized on the big screen for reversing the murder conviction of socialite Claus von Bülow.
But now, as they reach an age when other esteemed elder statesmen of the bar might be basking in acclaim for their life’s work, the 78-year-old Boies and the 80-year-old Dershowitz are brutally yoked in a subplot of the Jeffrey Epstein sex trafficking case. Their link became even tighter and more complicated this past weekend when the disgraced multimillionaire was found dead of an apparent suicide at a federal detention center in New York where he was awaiting trial on new sex trafficking charges. Epstein’s death occurred the day after newly unsealed court documents claimed he had a voracious sexual appetite for underage girls and detailed the alleged methods he and his friends used to recruit them.
The clash between Dershowitz and Boies, and its offshoots, have spawned lawsuits, swarms of stinging court documents, ferocious accusations, angry television appearances, a secretly taped call and more. In this long-running melodrama, Boies and his partners at Boies Schiller Flexner represent one of Epstein’s accusers, Virginia Roberts Giuffre — who was a teenage locker-room attendant at President Trump’s Mar-a-Lago resort when she met Epstein. Giuffre has alleged that Epstein demanded that she have sex with him repeatedly when she was underage and lent her for sex to his friends, including Dershowitz.
Dershowitz finds himself labeled as an alleged sex abuser in a personal affidavit by Boies, a claim he has volcanically denied. Dershowitz’s effort to counter the accusations has been made all the more nettlesome because his long-ago representation of Epstein has come under greater scrutiny following Epstein’s arrest last month. Dershowitz, an emeritus Harvard University law professor, is also fending off a defamation suit filed by Giuffre, set for key oral arguments next month, in which Boies has become a vital player.
Because Epstein’s death will end his criminal case, the Giuffre defamation action against Dershowitz could be one of the dwindling number of cases that would allow for the full public airing of numerous accusations against Epstein that his alleged victims have long sought.
As the Boies-Dershowitz conflict has dragged on, Boies, his partners and his allies have tarred Dershowitz in personal affidavits related to a bar complaint and a defamation lawsuit for allegedly bedding Giuffre when she was an underage teenager. In court filings, they portray Dershowitz, who has never been charged with a sex crime, as a liar and a sneak who secretly recorded a call with a fellow lawyer.
“After extensive consideration of everything Mr. Dershowitz told and showed me, I ultimately concluded that his denials were not credible,” Boies wrote in an affidavit included in Giuffre’s defamation suit against Dershowitz. (Giuffre sued Dershowitz because of numerous statements he made in media interviews, including calling her a “certified, complete, total liar” and saying that “she simply made up the entire story for money.”)
Meanwhile, Dershowitz has painted Boies as a corrupt attorney with a long trail of ethical lapses, a cheat and the head of a criminal enterprise.
“I believe the law firm of Boies Schiller is a RICO,” Dershowitz said in a recent interview at his New York apartment, citing the acronym used for Racketeer Influenced and Corrupt Organizations Act, a law frequently used against the mafia. “I believe they are the law firm of extortion, subornation of perjury and other crimes.”
Boies declined repeated interview requests and did not respond to written questions that specifically referenced the RICO allegation, as well as other assertions made by Dershowitz. Giuffre’s attorneys did not respond to requests for comment.
Named in a court filing
The mudslinging between two of America’s most famous and celebrated attorneys tracks to the wee hours of Jan. 22, 2015, when the men were casual acquaintances and occasional confidants. Dershowitz, a ubiquitous TV presence, awoke early that morning at his New York apartment and headed to Rockefeller Center, where he was scheduled to appear on NBC’s “Today” show to discuss the sex allegations made by Giuffre.
On the way, Dershowitz seethed.
Three weeks earlier, his name had surfaced in a court filing by Giuffre, who was then known only as Jane Doe No. 3, asking to join a lawsuit related to the Epstein case. The suit alleged that Epstein’s victims hadn’t been notified in advance of a non-prosecution agreement with federal prosecutors after the wealthy financier was arrested on suspicion of sex trafficking involving minors.
It wasn’t the substance of the complaint about victim notification that was most important to Dershowitz, though. Instead, he was incensed that the filing asserted that Giuffre had been lent to Britain’s Prince Andrew for sex and to Dershowitz, whom she alleged had sex with her at Epstein’s private island, his Palm Beach estate, his New Mexico ranch, his New York mansion and on his private plane.
Dershowitz and the prince adamantly denied the accusations at the time. Dershowitz and Buckingham Palace, speaking on behalf of Andrew, also issued strongly worded denials last week when the court documents were unsealed.
On “Today” that day in 2015, Dershowitz went nuclear. He accused Giuffre of filing “perjured” court papers and said, “She is categorically lying and making the whole thing up.”
Dershowitz has bolstered his contention that Giuffre cannot be trusted by referencing claims that she has made about having dinner with former president Bill Clinton on Epstein’s island. Dershowitz took it upon himself to investigate the Clinton allegation and to clear his name. He hired a security firm headed by former FBI director Louis Freeh to investigate.
Through Freedom of Information Act requests, the firm determined that Clinton could not have been on Epstein’s island during the time period when Giuffre said she had dinner with him. A summary of findings prepared by the Freeh firm states that the FOIA records “completely undermine [Giuffre’s] credibility.” The firm also said it found no evidence to support the sex allegations against Dershowitz.
Last week, Dershowitz also gained what might be a potent weapon in his quest to impeach Giuffre’s credibility in the newly unsealed court documents. The papers relate to a defamation suit filed against Ghislaine Maxwell, whom Giuffre and others have accused of procuring girls and women for Epstein. The suit was settled for an undisclosed amount in 2017. The records were unsealed at the request of several news organizations, including The Washington Post and the Miami Herald, which published a series of articles about Epstein’s alleged abuses prior to his recent arrest.
Among the documents was a 2011 email sent to Giuffre from Sharon Churcher, a journalist for the British tabloid the Mail on Sunday, that Dershowitz contends is proof that Giuffre was being encouraged to lie about him. The email appears to reference a book proposal Giuffre was compiling.
“Don’t forget Alan Dershowitz . . . JE’s buddy and lawyer,” Churcher writes to Giuffre in an apparent reference to Jeffrey Epstein’s initials. “Good name for your pitch as he repped Claus von Bulow and a movie was made about that case . . . title was Reversal of Fortune. We all suspect Alan is a pedo and tho no proof of that, you probably met him when he was hanging put [sic] w JE.”
Churcher did not respond to a request for an interview.
The famed law professor’s campaign to refute Giuffre’s allegations created a pile of legal trouble because of the words he chose. While defending himself, he also cast aspersions on the character and ethics of the two attorneys representing Giuffre in her attempt to join the lawsuit related to notifying Epstein’s victims.
Dershowitz had said in a television interview that the attorneys — Florida-based Brad Edwards and former federal judge Paul Cassell — were “prepared to lie, cheat and steal.” He had described Cassell as “essentially a crook.” (Cassell and Edwards did not respond to interview requests.)
Cassell and Edwards responded in the way lawyers might be expected to — they sued him for defamation.
Despite the lawsuit, Dershowitz continued to vociferously and publicly defend himself.
In Florida, an attorney in Boies’s firm named Carlos Sires was watching “Today” when Dershowitz appeared. He reached out via email to Dershowitz offering to help him with the dispute and later discussed the possibility of representing him. (Dershowitz has said he considered Sires his attorney at that point, a contention that Sires has disputed in an affidavit attached to a bar complaint Dershowitz later filed against Boies.)
Sires also said in the affidavit that he was not aware at the time of his initial contact with Dershowitz that other lawyers in his firm were representing Giuffre in a separate case. That digital note set in motion a cascading series of events that have put Dershowitz and Boies at odds for the past four years. (Sires could not be reached for comment.)
The dispute centered on Dershowitz’s claim that Sires reviewed confidential material about the defamation case filed against Dershowitz by Edwards and Cassell. About a week later, Boies determined that there was a conflict that Sires had not known about and the firm notified Dershowitz that it couldn’t represent him.
Dershowitz was angry, concluding that the firm sneakily got inside information about his defense in order to gain an advantage, according to interviews with Dershowitz. Boies has dismissed that suggestion, saying in a personal affidavit connected to the Florida bar complaint Dershowitz later filed against him that material Sires reviewed was nothing more than a recap of Dershowitz’s public statements.
What Dershowitz didn’t know at the time was that Boies, the man who would become his nemesis, had been in contact with Giuffre for nearly six months. Boies was contacted in June 2014 by Stanley Pottinger, an attorney who was the former head of the Justice Department’s civil rights division, about representing Giuffre, according to an affidavit by Boies included in Giuffre’s ongoing case against Dershowitz.
Although Giuffre had two attorneys, Pottinger thought she needed more legal help because he expected her to “become the target of vicious attacks” by people she accused of sex abuse, according to an affidavit Pottinger wrote that is included in Giuffre’s ongoing case against Dershowitz.
The next month, Boies met with Giuffre in New York, according to his affidavit, and he asked Pottinger to vet Giuffre’s claims. Satisfied that she was credible, Boies agreed that his firm would take her on as a client, although he says the firm did no work related to her until November. Boies said in the affidavit that partner Sigrid McCawley represented Giuffre while she was a witness in the defamation suit filed in January 2015 by Edwards and Cassell.
Eventually, Dershowitz came to allege even darker motives for Sires’s outreach after the “Today” interview. He developed a complicated extortion theory involving Boies after being contacted in April 2015 by one of Giuffre’s friends — a woman named Rebecca Boylan — who’d seen coverage of the scandal and agreed to speak with him in a tape-recorded conversation, Dershowitz said in an interview. He played the tape for The Post, but did not let the news organization have a copy,
Boylan, according to Dershowitz’s account of the conversation, told him that Giuffre had never mentioned having sex with him. She added that Giuffre had told her she had been urged by her lawyers to name Dershowitz.
“She felt pressure to do it, she didn’t want to go after you personally,” Boylan said, according to Dershowitz’s tape of the conversation. “She felt pressured by her lawyers.”
But that wasn’t all. Boylan also said that naming Dershowitz was a step in a plan to win an enormous settlement from the founder and CEO of the parent company of Victoria’s Secret, the lingerie giant. Dershowitz knew Boylan was referring to Leslie Wexner, a billionaire who was a close friend and mentor to Epstein.
“They wanted to sue him for at least half his money,” Boylan said, according to Dershowitz’s tape .
Dershowitz also claims that Boies and his firm were attempting to send a message to Wexner, whom Giuffre had not publicly accused at that point of having sex with her at the behest of Epstein, although she later would. The message, according to Dershowitz, was that Wexner would be publicly shamed, in the same way that Dershowitz had been, if he didn’t pay up.
Boies wrote in his response to Dershowitz’s Florida bar complaint that neither he nor McCawley had been involved in the decision to name Dershowitz and has denied attempting to extort Wexner. He also wrote that “no settlement demand was ever made, or even discussed with, Mr. Wexner or his counsel.”
(Wexner declined to be interviewed, and Boylan could not be reached for comment.)
A secretly taped call
Still, Dershowitz was eager to persuade Boies that he was innocent, according to interviews with Dershowitz and accounts of their interactions included in an affidavit by Boies. The two men began a series of meetings between May and July 2015, according to Boies’s affidavit.
Among the items Dershowitz showed Boies, according to Dershowitz, were detailed calendars that he cited as definitive proof that he could not have been at Epstein’s island, ranch, Palm Beach mansion or on his private plane during the time period when Giuffre said he was having sex with her. (Dershowitz keeps a massive spreadsheet handy at his New York apartment to show the reporters he’s courted to tell his version of events.)
The two lawyers have different memories of those meetings. Dershowitz has asserted in interviews with The Post that Boies told him during those meetings that Giuffre must have mistaken him for someone else. Boies wrote in his affidavit that Dershowitz’s account “is not true.” Among the data points Boies cites in his affidavit is a lie-detector test that he says Giuffre passed. (Results of such tests are seldom deemed admissible in court.)
Later in 2015, Dershowitz took the unusual step of secretly taping a call with Boies. Dershowitz played the tape, which is muffled and cuts off at points, for The Post, but did not allow the newspaper to have a copy. On the tape, Boies appears to say he and one of his partners are convinced Giuffre’s claim of having sex with Dershowitz is “wrong.” Boies said in his affidavit that he never told Dershowitz that Giuffre wasn’t telling the truth.
In Giuffre’s defamation case against Dershowitz, two of Boies’s partners assert that the taping was “a violation of the canons of ethics.” They also say Boies was merely discussing a hypothetical and that he believed all along that Giuffre was telling the truth. Dershowitz has said the taping was entirely legal because at the time he was in New York, which only requires the consent of one of the parties on the call for a legal taping.
Armed with what he thought was a plausible extortion theory and with his taped evidence, Dershowitz went to war.
In 2017, he filed the bar complaint against Boies in Florida. The document lays out his allegations about the Boies firm’s handling of the defamation case filed against him by Edwards and Cassell, and then goes on to read almost like a lengthy Wikipedia article about controversies during what he describes as the Boies firm’s “long and sordid history.” He cites a 2012 case in which a New York judge chided Boies’s firm, saying “a clearer conflict of interest cannot be imagined. A first-year law student on day one of an ethics course should be able to spot it.”
Dershowitz also summarized the controversy over a potential conflict spurred by Boies serving on the board of directors and as a lawyer for Theranos, the scandal-plagued blood-testing start-up.
The bar complaint, which was obtained by The Post, surfaced shortly after Boies was enmeshed in a major conflict-of-interest scandal in 2017 involving the famed movie producer Harvey Weinstein, who was being accused in a series of sexual abuse incidents. At the time, Boies was getting a torrent of bad publicity because of the revelation in media reports that he was representing the New York Times in legal matters without telling the newspaper that he was simultaneously representing Weinstein, who was being investigated by Times reporters. Boies also secretly oversaw an effort to undermine the paper’s reporting by hiring a firm that employed former agents of the Israeli intelligence service, Mossad, to collect information on Times reporters and Weinstein’s alleged victims.
The Times cut ties with Boies and issued a blistering statement.
“We learned today that the law firm of Boies Schiller and Flexner secretly worked to stop our reporting on Harvey Weinstein at the same time as the firm’s lawyers were representing us in other matters. We consider this intolerable conduct, a grave betrayal of trust, and a breach of the basic professional standards that all lawyers are required to observe.” It added: “We never contemplated that the law firm would contract with an intelligence firm to conduct a secret spying operation aimed at our reporting and our reporters. Such an operation is reprehensible.”
Boies had signed the contract with the spy group, but later tried to distance himself from its work.
“I regret having done this,” Boies said in an email sent to his staff that was published by New York magazine. “It was a mistake to contract with, and pay on behalf of a client, investigators who we did not select and did not control. I would never knowingly participate in an effort to intimidate or silence women or anyone else. . . . That is not who I am.”
Dershowitz seized on the Times imbroglio to press his argument in public that Boies is an unethical lawyer.
“No lawyer in modern American history has ever been more credibly accused of more ethical violations than David Boies and his law firm,” Dershowitz said in a recent interview with The Post.
In 2017, Boies’s firm issued a statement in response to Dershowitz’s conflict-of-interest allegations, saying: “Over the years, there have been some bar complaints filed against Mr. Boies. Each of them was filed by an unhappy adverse party; none was filed by a client. No disciplinary action was ever taken.”
The dispute goes on
The feud between Dershowitz and Boies is well known in legal circles, where both men have earned stellar reputations over the years.
“People can have grudges and sometimes things get heated between lawyers, but based on headlines about two people I’ve worked with, who are talented, smart and committed to their clients, we just don’t have enough information to make a judgment,” said Lawrence Fox, a Yale Law professor and former chairman of the American Bar Association Standing Committee on Ethics and Professional Responsibility who has worked alongside both men.
As the months have passed, one by one, Dershowitz’s broadsides against Boies and his allies have cratered. He settled the defamation case filed by Cassell and Edwards, Giuffre’s attorneys, before Boies and his partners came on the scene.
Earlier this year, the Florida bar complaint against Boies got tossed out.
But their dispute continues, with the next field of battle in New York, where Giuffre’s defamation case against Dershowitz — with a potential star plaintiff’s witness named David Boies — trudges on. Boies is a potential witness because he could be called to testify about his interactions with Dershowitz and about Dershowitz’s extortion theory. That means that Dershowitz, the 80-year-old, and Boies, the 78-year-old, will tangle again as the elder party in the grudge match tries to get the younger one’s law firm barred from representing Giuffre in the defamation suit against Dershowitz.
And so it has gone for years, an endless cycle of enmity playing out on a continuous loop. This clash of the titans is so persistent and many-tentacled that one could imagine it outliving the legal giants it has consumed.
Amazon CEO Jeff Bezos accuses the National Enquirer of trying to blackmail with compromising photos unless the Washington Post ended an investigation into how the magazine obtained private texts related to his divorce
Something unusual happened to me yesterday. Actually, for me it wasn’t just unusual — it was a first. I was made an offer I couldn’t refuse. Or at least that’s what the top people at the National Enquirer thought. I’m glad they thought that, because it emboldened them to put it all in writing. Rather than capitulate to extortion and blackmail, I’ve decided to publish exactly what they sent me, despite the personal cost and embarrassment they threaten.
AMI, the owner of the National Enquirer, led by David Pecker, recently entered into an immunity deal with the Department of Justice related to their role in the so-called “Catch and Kill” process on behalf of President Trump and his election campaign. Mr. Pecker and his company have also been investigated for various actions they’ve taken on behalf of the Saudi Government.
“After Mr. Trump became president, he rewarded Mr. Pecker’s loyalty with a White House dinner to which the media executive brought a guest with important ties to the royals in Saudi Arabia. At the time, Mr. Pecker was pursuing business there while also hunting for financing for acquisitions…”
Here’s a piece of context: My ownership of the Washington Post is a complexifier for me. It’s unavoidable that certain powerful people who experience Washington Post news coverage will wrongly conclude I am their enemy.
President Trump is one of those people, obvious by his many tweets. Also, The Post’s essential and unrelenting coverage of the murder of its columnist Jamal Khashoggi is undoubtedly unpopular in certain circles.
.. Back to the story: Several days ago, an AMI leader advised us that Mr. Pecker is “apoplectic” about our investigation. For reasons still to be better understood, the Saudi angle seems to hit a particularly sensitive nerve.
.. In the AMI letters I’m making public, you will see the precise details of their extortionate proposal: They will publish the personal photos unless Gavin de Becker and I make the specific false public statement to the press that we “have no knowledge or basis for suggesting that AMI’s coverage was politically motivated or influenced by political forces.”
If we do not agree to affirmatively publicize that specific lie, they say they’ll publish the photos, and quickly. And there’s an associated threat: They’ll keep the photos on hand and publish them in the future if we ever deviate from that lie.
Be assured, no real journalists ever propose anything like what is happening here: I will not report embarrassing information about you if you do X for me. And if you don’t do X quickly, I will report the embarrassing information.
.. These communications cement AMI’s long-earned reputation for weaponizing journalistic privileges, hiding behind important protections, and ignoring the tenets and purpose of true journalism.
Amazon chief executive Jeffrey P. Bezos said Thursday that he was the target of an extortion and blackmail effort by the National Enquirer, which he accused of threatening to publish intimate pictures of him unless he backed off an investigation of the tabloid.
In an extraordinary post to the online publishing platform Medium, Bezos said the Enquirer and its parent company, American Media Inc., made the threat after he began investigating how the tabloid obtained text messages that revealed his relationship with former TV anchor Lauren Sanchez.
Bezos, who owns The Washington Post, wrote that the Enquirer wanted him to make a false public statement that he and his security consultant, Gavin de Becker, “have no knowledge or basis for suggesting that AMI’s coverage was politically motivated or influenced by political forces.”
Bezos declined to do so.
Instead, he published what he said were emails from Enquirer executives to a lawyer representing de Becker. In one, top Enquirer editor Dylan Howard appears to suggest that the tabloid would publish a series of salacious photos of Bezos and one of Sanchez if AMI’s terms weren’t met.
“I wanted to describe to you the photos obtained during our newsgathering,” Howard wrote, going on to say that the Enquirer had a “below the belt selfie” of Bezos, among other shots. Howard added, “It would give no editor pleasure to send this email. I hope common sense can prevail — and quickly.”
Bezos noted that the email “got my attention,” but said that “any personal embarrassment AMI could cause me takes a back seat because there’s a much more important matter involved here. If in my position I can’t stand up to this kind of extortion, how many people can?”
.. On Feb. 5, The Post reported that Bezos and de Becker suspected that the source of the text and photo leaks may have been Sanchez’s brother, Michael, a California public relations executive who is close to Pecker and various figures in Trump’s orbit, including former campaign advisers Roger Stone and Carter Page. Michael Sanchez denied any involvement in revealing his sister’s relationship with Bezos.
The Post reported that Sanchez said he was told by multiple people at AMI that the Enquirer set out to do “a takedown to make Trump happy.”
.. “Rather than capitulate to extortion and blackmail, I’ve decided to publish exactly what they sent me, despite the personal cost and embarrassment they threaten,”
.. “This could constitute criminal conduct in the eyes of a prosecutor, if these allegations are true,” said Mintz. “For prosecutors, your worst nightmare is watching a cooperation deal unravel. Alleged conduct like this puts them in the position to rethink that deal and potentially turn around and have to prosecute AMI, and that undermines their ability to continue to use them to assist other ongoing investigations.”
.. Bezos said in his Medium post that the tabloid threatened to keep the photos on hand and publish them in the future “if we ever deviate from [the] lie” that politics played no role in the Enquirer’s pursuit of Bezos’s relationship with Lauren Sanchez.
.. The Enquirer has said that it obtained the texts and photos lawfully, and that it had the right to publish the material under the “fair use” doctrine of copyright law. It also said the photos were newsworthy, given Bezos’s prominence.
But as Bezos began to investigate the leak, the tabloid’s parent disputed any suggestion that its story was politically motivated. The company “emphatically rejects any assertion that its reporting was instigated, dictated or influenced in any manner by external forces, political or otherwise,” Fine wrote in an email to de Becker’s lawyer, Martin Singer, which Bezos shared. “Simply put, this was and is a news story.”
Ted Boutrous, a veteran lawyer who briefly represented McDougal in a dispute with the Enquirer, said the emails Bezos described in his post are “a textbook example of blackmail and extortion. It’s ripped right out of the law books.”
He added, “At an extreme level, this shows how frightening it should be to the citizens of the United States that the National Enquirer reportedly has a safe full of information about the president of the United States. That’s one of the dangers to democracy of what they were engaged in when they were catching and killing information they could have used against Candidate Trump and now President Trump. . . . It’s a shocking and frightening thing Mr. Bezos has revealed.”
There are countless presidential scandals in U.S. history, but very few of them have resulted in resignation or impeachment — which is precisely why MSNBC host Rachel Maddow was drawn to the story of Spiro Agnew, Richard Nixon’s first vice president, who resigned in 1973.
Maddow notes there are many misconceptions concerning the former vice president — including the notion that his “big sin” centered on taxes.
“When I tried to sort of thumbnail in my mind what happened in the Agnew resignation, everything I thought about it was wrong,” she says. “I had assumed that it was a Watergate-adjacent scandal, that the FBI was looking into Watergate-related crimes and they stumbled upon something in Spiro Agnew’s taxes. … All of those things were completely wrong.”
Maddow and her former producer Mike Yarvitz created the podcast Bag Man to revisit Agnew’s story. Though his resignation was officially linked to tax evasion, they say that Agnew had engaged in bribery that dated to the early 1960s, when, as Baltimore County executive, he demanded kickbacks in exchange for local engineering or architecture contracts. He continued the practice even after being elected governor of Maryland in 1967 and then vice president in 1969.
This week, the Trump administration further eased its pressure on Rusal, Russia’s largest aluminum company, less than four months after sanctions on it and its notorious leader were imposed. Even as the White House seems willing to inflict pain on American farmers and consumers with its trade wars, Russian aluminum workers are apparently worthy of special protection.
.. Rusal is controlled by Oleg Deripaska, a member of Mr. Putin’s inner circle. As the Treasury Department acknowledges, he has been investigated for
- money laundering and accused of
- threatening the lives of business rivals,
- illegally wiretapping a government official and
- taking part in extortion and racketeering.
.. There are also allegations, made public by the Treasury Department’s Office of Foreign Assets Control, that Mr. Deripaska
- bribed a government official,
- ordered the murder of a businessman and
- had links to a Russian organized crime group. During the 2016 presidential campaign,
- Paul Manafort, then Mr. Trump’s campaign manager, tried to offer Mr. Deripaska private briefings about the campaign.
.. Treasury Secretary Steven Mnuchin has said he is considering lifting the sanctions altogether because they are punishing the “hardworking people of Rusal.” But Mr. Mnuchin has it backward. If he was truly concerned about Rusal’s 61,000 employees, he would not relent until the company fully washed its hands of Mr. Deripaska and the corrupt regime the aluminum giant serves.
.. Behind Mr. Deripaska’s estimated fortune of as much as $5.3 billion, there stands a great crime. During the “aluminum wars” of the 1990s, when that economic sector was consolidating in the chaotic privatization that followed the collapse of the Soviet Union, the young metals trader was suspected of ties to gangsters as he seized control of huge Siberian smelters. According to testimony by a gang member in Stuttgart, Germany, part of Mr. Deripaska’s value to the group were his links to Russia’s security services. While his rivals were killed off or fled Russia, Mr. Deripaska somehow emerged as the director general of Rusal, a company that reported revenues last year of nearly $10 billion. But suspicions that the oligarch has had links to organized crime have denied him a visa to enter the United States.
.. they must do its bidding, which in Mr. Deripaska’s case meant spending more than $1 billion, through his holding company, on new infrastructure for the 2014 Winter Olympics in Sochi, Russia
Mr. Deripaska has embraced his role, stating that he does not separate himself from the Russian state.
.. Manafort tried to pitch him a plan for an influence campaign to “greatly benefit the Putin government.”
.. “Rusal’s own website says that it supplied military material to the Russian military that was potentially used in Syria.”
.. Mr. Deripaska’s holding company, hired a $108,500-a-month lobbyist to continue to negotiate with the Treasury Department. The firm he chose, Mercury Public Affairs, is the firm Mr. Manafort paid $1.1 million to lobby members of Congress on behalf of Ukraine and its then-president, Viktor Yanukovych
.. Led by David Vitter, a former Republican senator from Louisiana, Mercury has sought to enlist support from ambassadors of France, Germany and Australia, among others.
.. emanding more time to reduce the oligarch’s ownership stake in En+ from 70 percent to below 50 percent. In a July 24 filing with the Justice Department, Mercury outlined a host of calamities that might be unleashed if sanctions aren’t eased
- The global aluminum market might suffer significant disruptions with “severe collateral damage to United States interests, allies”;
- En+ might have to entertain a potential acquisition by “Chinese and/or other potentially hostile interests”; or
- Mr. Deripaska might just hang on to his majority stake.
.. The specter of a fellow traveler with gangsters dictating terms to the United States government is yet another sign of the Trump administration’s inexplicable capitulation to Russia.
.. July 16 summit in Helsinki, at which President Trump and President Putin met privately for more than two hours.
We don’t know what they discussed, but given the stakes on both sides, there’s a good chance that the discussion touched on the subject of the sanctions the United States has imposed on Russia’s biggest aluminum company.
the more compelling and consequential issue is the Trump-Cohen relationship.
.. given Trump’s odd account that he repaid Cohen for his services “sometimes” and not others, he may well argue that he did not, in the first instance, recognize an obligation for the Daniels payment
.. Rudolph W. Giuliani, Trump’s lawyer, said earlier this month that Trump’s “reimbursement” was in the neighborhood of $470,000, considerably more than three times the sum paid to Daniels.
.. It is far less threatening than questions of bribery, extortion, mail or wire fraud, or direct or indirect indebtedness to a foreign power.