The president also pardoned or commuted the sentences of eight others on Tuesday, including Edward DeBartolo, a former owner of the San Francisco 49ers.
WASHINGTON — President Trump, citing what he said was advice from friends and business associates, granted clemency on Tuesday to a who’s who of white-collar criminals from politics, sports and business who were convicted on charges involving
- corruption and
— including the financier Michael R. Milken.
The president pardoned Mr. Milken, the so-called junk bond king of the 1980s, as well as the former New York City police commissioner Bernard B. Kerik and Edward J. DeBartolo Jr., a former owner of the San Francisco 49ers. He also commuted the sentence of Rod R. Blagojevich, a former Democratic governor of Illinois.
Their political and finance schemes made them household names, and three received prison terms while Mr. DeBartolo paid a $1 million fine.
Mr. Trump also pardoned David Safavian, the top federal procurement official under President George W. Bush, who had been sentenced in 2009 to a year in prison for lying about his ties to the lobbyist Jack Abramoff and obstructing the sprawling investigation into Mr. Abramoff’s efforts to win federal business. The president also granted clemency to six other people.Mr. Trump has repeatedly stated his commitment to prison reform and addressing the excessive sentences given to minorities. At the urging of Kim Kardashian West in 2018, he pardoned Alice Marie Johnson, a 63-year-old African-American woman serving a life sentence for a nonviolent drug conviction. Ms. Johnson was the centerpiece of a TV ad the Trump campaign ran this month during the Super Bowl.
But the president’s announcements on Tuesday were mostly aimed at wiping clean the slates of rich, powerful and well-connected white men. And they came after years of sophisticated public relations campaigns aimed at persuading Mr. Trump to exercise the authority given to him under the Constitution.
Patti Blagojevich, the wife of the former Illinois governor, frequently appeared on Fox News calling for Mr. Trump to commute her husband’s sentence. Mr. Kerik, a regular on Fox News, appeared on the network as recently as Monday night. Mr. Milken has sought to rebrand himself as a philanthropist in recent years as allies campaigned on his behalf for a pardon.
In conversations with his advisers, Mr. Trump has also raised the prospect of commuting the sentence of Roger J. Stone Jr., his longtime adviser, who was convicted in November of seven felony charges, including tampering with a witness and lying under oath in order to obstruct a congressional inquiry into whether the Trump campaign conspired with Russia to influence the 2016 election.
Asked about a pardon for Mr. Stone on Tuesday, Mr. Trump insisted that “I haven’t given it any thought.”
Democrats pounced on the president’s announcements.
“Today, Trump granted clemency to tax cheats, Wall Street crooks, billionaires and corrupt government officials,” said Senator Bernie Sanders, independent of Vermont, the leading Democratic candidate for president. “Meanwhile, thousands of poor and working-class kids sit in jail for nonviolent drug convictions. This is what a broken and racist criminal justice system looks like.”
Representative Bill Pascrell Jr., Democrat of New Jersey, said in a statement that the president abused the pardon power by using it to reward friends and repair the reputations of felons who do not deserve it.
“The pardoning of these disgraced figures should be treated as another national scandal by a lawless executive,” he said.
But Mr. Trump defended his grants of clemency on Tuesday.
He was particularly critical of the 14-year prison sentence for Mr. Blagojevich, who was convicted of trying when he was governor of Illinois to essentially sell the Senate seat vacated by Barack Obama when he became president. Mr. Blagojevich also once appeared on the reality series “The Celebrity Apprentice,” which Mr. Trump hosted.
“That was a tremendously powerful, ridiculous sentence, in my opinion,” Mr. Trump said after announcing that Mr. Blagojevich would go free after serving eight years in prison. The president alleged that the former governor was a victim of the same forces that investigated him for years, citing James B. Comey, the former F.B.I. director, and Patrick Fitzgerald, the U.S. attorney in Chicago who prosecuted Mr. Blagojevich.
“It was a prosecution by the same people — Comey, Fitzpatrick, the same group,” Mr. Trump told reporters, misstating Mr. Fitzgerald’s name.
Mr. Trump gave no indication that he relied on the usual vetting process that guides presidents making use of their constitutional authority to wipe away criminal convictions or commute prison sentences.
Traditionally, the Justice Department’s pardons office would make recommendations about pardons and commutations to the deputy attorney general, who would weigh in and then pass the Justice Department’s final determinations to the White House. Instead, Mr. Trump told reporters that he followed “recommendations” in making his decisions.
Those recommendations, according to a White House statement, came from the president’s longtime friends, business executives, celebrities, campaign donors, sports figures and political allies.
In pardoning Mr. Kerik, who pleaded guilty of tax fraud and lying to the government, Mr. Trump said he heard from more than a dozen people, including Rudolph W. Giuliani, the former New York mayor and Mr. Trump’s personal lawyer; Geraldo Rivera, a Fox TV personality; and Eddie Gallagher, a former Navy SEAL and accused war criminal whose demotion was overturned by Mr. Trump last year.
Mr. Kerik had a pardon application pending and Mr. Blagojevich had a commutation application pending; but a source close to the pardons office did not believe that the pardon attorney had given either of those applications full-throated support.
Mr. Milken, whose dealings contributed to the collapse of the savings-and-loan industry, fought for decades to reverse his conviction for securities fraud. Richard LeFrak, a billionaire real-estate magnate and long time friend, Sheldon G. Adelson, a prominent Republican donor, and Nelson Peltz, a billionaire investor who hosted a $10 million fund-raiser for the president’s 2020 campaign on Saturday, were among those who suggested that the president pardon him.
Mr. Milken did not have a pardon or commutation applications pending at the Justice Department’s pardons office, meaning that Mr. Trump made that decision entirely without official Justice Department input. Two previous applications had been denied and closed.
Football greats Jerry Rice and Joe Montana — but also the singer-songwriter Paul Anka — urged him to pardon Mr. DeBartolo, who pleaded guilty in 1998 to concealing an extortion attempt. Mr. DeBartolo avoided prison but was fined $1 million and suspended for a year by the National Football League. He later handed over the 49ers to his sister Denise DeBartolo York.
Previous presidents have often waited until the final moments of their presidency to wield the pardon power on behalf of their friends. Former President Bill Clinton pardoned Marc Rich, a hedge fund manager and financier who was convicted of tax evasion and other crimes, on January 20, 2001, Mr. Clinton’s last day in office.
Others, including former presidents Bush and Obama, largely reserved their clemency authority for people convicted of nonviolent, low-level drug crimes and other offenses who were identified as part of a rigorous process run by a team of government lawyers in the Justice Department.
Mr. Trump, however, has shrugged off those traditions and the controversy that sometimes comes with the use of the pardon power. He issued a “full and unconditional pardon” to Joseph M. Arpaio, the Arizona sheriff and immigration hard-liner convicted of contempt of court, in August of 2017.
Less than a year later, he did the same for I. Lewis Libby Jr., a former aide to Mr. Bush who was convicted of obstructing justice and perjury.
In addition to helping erase the convictions of the well-connected and powerful, Mr. Trump on Tuesday also pardoned a tech executive who pleaded guilty to conspiracy, the owner of a construction company who underpaid his taxes and a woman convicted of stealing cars. He also commuted the sentences of a woman convicted of drug distribution, another woman who was part of a marijuana smuggling ring, and a minority owner of a health care company who was sentenced to 35 years for a scheme to defraud the government.
Their relative anonymity was a sharp contrast to the prominence of the four men highlighted by the president.
Mr. Milken, was credited in the 1980s with using junk bonds to finance big debt-laden corporate buyouts an, pleaded guilty to securities reporting violations and tax offenses and the Securities and Exchange Commission banned him for life. The investigation came to highlight the corporate excesses on Wall Street in the 1980s.
In the years since his conviction, Mr. Milken has emerged as a major cancer philanthropist and is the founder of the Milken Institute, a nonpartisan think tank that holds a popular conference in Los Angeles, which convenes the world’s most powerful people in government, industry and finance.
Mr. Kerik, a police detective, served as Mr. Giuliani’s bodyguard and chauffeur during the 1993 mayoral race and later served in a series of high-ranking positions in the city’s Department of Correction. Eventually, Mr. Giuliani named Mr. Kerik correction commissioner in 1997 and police commissioner in 2000.
In 2004, his bid to become Homeland Security secretary in the Bush cabinet collapsed amid scandals. In June 2006, he pleaded guilty in State Supreme Court in the Bronx to two misdemeanors tied to renovations done on his apartment. Four years later, Mr. Kerik pleaded guilty to tax fraud and making false statements.
Mr. DeBartolo presided over the golden era of the 49ers when the team won five Super Bowl championships under coach Bill Walsh with legendary players like Joe Montana, Steve Young, Ronnie Lott and Jerry Rice. He was elected to the National Football League Hall of Fame in 2014 despite his conviction.
But in the late 1990s, Mr. DeBartolo was an investor in the Hollywood Casino Corp., a Dallas company seeking permission for a riverboat casino in Louisiana. On March 12, 1997, he met Edwin W. Edwards, the influential former governor of Louisiana, for lunch in California and handed over $400,000 that Mr. Edwards had demanded for his help in securing a license. The next day, the Gaming Board granted the license. A month later, federal agents raided Mr. Edwards’s house and office, seizing the $400,000.
“Why do it? It actually was just plain stupidity, and I should have just walked away from it,” Mr. DeBartolo told NFL Films for a biographical documentary in 2012. “I was as much to blame because I was old enough to know better and too stupid to do anything about it.”
When one of the defense lawyers tried to suggest to Mr. Manafort’s tax accountant Monday that Mr. Gates had kept Mr. Manafort in the dark about his own finances, the accountant, Cynthia Laporta, pushed back.
“In most instances, it was clear that Mr. Manafort was aware what was going on,” she testified.
Mr. Gates’s statements reinforced that picture. He said that Mr. Manafort knew it was illegal not to report his foreign bank accounts to the Treasury Department but asked Mr. Gates to help him deceive his accountants so he could conceal income and pay less in taxes.
“I assisted Mr. Manafort in filing false tax returns,” Mr. Gates testified. “We didn’t report the income or the fact that the accounts existed.”
.. He said that some of Mr. Manafort’s income was disguised as loans from 15 shell companies that Mr. Manafort controlled, most of them in Cyprus... Once that income dried up, the government alleges, Mr. Manafort, with Mr. Gates’s help, falsified financial records so he could obtain bank loans to maintain his opulent lifestyle... Gates testified that Mr. Manafort also was paid $4 million a year to help Mr. Yanukovych govern after he was elected president in 2010... while Mr. Yanukovych ran on a platform of integrating with the European Union, while also maintaining good relations with Russia, he eventually pivoted toward Moscow.. Mr. Gates also said that two American lobbying firms — the Podesta Group and Mercury Public Affairs — assisted with their policy consulting efforts. Mr. Mueller’s team has referred cases related to the firms’ work to federal investigators in the Southern District of New York... Mr. Manafort asked Mr. Gates to help arrange inauguration tickets and administration posts — including secretary of the Army — for a banker from whom Mr. Manafort is accused of fraudulently seeking loans, Mr. Gates testified.
.. Emails presented during Mr. Manafort’s trial showed that he sought the favors for Stephen M. Calk, the founder and chief executive of The Federal Savings Bank of Chicago. The bank began issuing loans that eventually totaled $16 million to Mr. Manafort in the days after Mr. Trump’s election based on false information provided by Mr. Manafort.
.. Mr. Gates said he was involved in discussions about nominating Mr. Calk to an economic advisory council.
.. Mr. Gates, 46, admitted Monday that he was guilty of a long list of crimes, including stealing hundreds of thousands of dollars from Mr. Manafort’s accounts by inflating his business expenses. He said that while he was helping Mr. Manafort hide income to evade taxes, and later to inflate his income to obtain bank loans, he was doing essentially the same on his own behalf.
.. In exchange for his cooperation, the government in February agreed to dismiss 22 criminal charges stemming from his involvement in the scheme for which Mr. Manafort is now on trial.
.. sentencing guidelines recommend a prison term of up to six years, he testified that prosecutors have agreed not to object if his defense attorney argues that he should receive probation.
Paul Manafort was using fraudulently obtained loans and tax-cheating tricks to prop up his personal finances as he became chairman of the Trump campaign in 2016, according to a new 32-count indictment filed against him and his business partner Thursday.
The indictment ratchets up pressure on Manafort and his deputy, Rick Gates, who were already preparing for a trial
.. Mueller accused the men of lying on their income-tax returns and conspiring to commit bank fraud to get loans.
.. these are two fellows on a multiyear tear of lying to every bank they could find about their income. To a federal prosecutor, it’s fairly crude. It’s extensive and bold and greedy with a capital ‘G,’ but it’s not all that sophisticated.”
.. there was one hero in the special counsel’s tale — a bookkeeper who refused an alleged request by Gates to falsely inflate a revenue claim
.. they could be facing de facto life prison sentences.
.. from 2006 to 2015, Manafort, with help from Gates, avoided paying taxes on income from Ukraine by disguising it as loans from offshore corporate entities
.. using foreign bank accounts to make payments to businesses in the United States on Manafort’s behalf.
.. unidentified co-conspirator wrote that a document looked doctored and asked them to “do a clean excel doc” and send that instead.
.. When Manafort joined the Trump campaign as an adviser in early 2016, he agreed to work with no pay
.. prosecutors alleged Manafort was taking out multimillion-dollar loans in those same months, including $5.5 million that he sought in the same month he joined the campaign.
.. Manafort was under significant financial pressure even as he ascended to the top of the Trump campaign in mid-2016.
.. One bank lender “questioned Manafort about a $300,000 delinquency on his American Express card, which was more than 90 days past due. The delinquency significantly affected Manafort’s credit rating score.”
.. On Oct. 25, 2017 — just days before the first indictment was revealed — Gates submitted a false tax document for the 2013 tax year
.. Three of his lawyers had asked to leave the case
.. Thomas C. Green
.. Green is an experienced white-collar attorney with a reputation for cutting plea deals on behalf of his clients.