Last week, Tony Podesta, an eminence in the annals of Washington lobbying, threw one of his signature events, a big birthday bash at his stately stone manse in Kalorama. His guests thought he was on top of his world, one of the men who makes the city go.
On Monday, hours after the first indictments in the investigation into ties between President Trump’s campaign and the Russian government, Podesta abruptly quit his post atop the Podesta Group, the capital’s eighth-wealthiest lobbying firm.
.. raised questions about the work Podesta’s firm did with Manafort to buff the image of the Ukrainian government.
.. “It is impossible to run a public affairs firm while you are under attack by Fox News and the right wing media,”
.. For decades, Tony and John Podesta — brothers who share a Jesuit education, a devotion to liberal causes and a passion for politics — have been central players in Washington. And in the past year, both have been drawn into the orbit of scandals.
.. Tony’s Podesta Group is one of two firms described in Monday’s indictment as having been recruited by Manafort and Gates to lobby on behalf of Viktor Yanukovych
.. Both the Podesta Group and the other firm, Mercury Public Affairs, have said they were hired to lobby for a European nonprofit based in Brussels trying to polish Ukraine’s image in the West. But behind the scenes, prosecutors allege, the real client was a political party led by the former Ukraine president, who was friendly with Russia.
.. To their opponents, the Podestas are quintessential swamp rats, exemplars of the permanent Washington establishment. Their defenders, however, view them as the oil that makes the gears of government turn.
.. Tony Podesta has been a pivotal figure in the murky connections between policy and politics, becoming wealthy on fees from industries and foreign entities that want something from Congress and the White House. He also bundles big donations and dispenses them to politicians who might someday be helpful to those lobbying clients.
.. the Podesta Group, representing some of the country’s biggest and most powerful businesses, including Walmart, Bank of America and BP.
.. This year, the firm’s top clients are Mylan, a pharmaceutical company; Wells Fargo; Crawford Group, the parent of Enterprise car rentals; and Lockheed Martin
.. Along the way, the firm also represented a number of foreign entities, including the government of Egypt under ex-dictator Hosni Mubarak.
.. “More and more, foreign countries turn to lobbyists to do work that diplomats once did themselves,”
Did Russia teach Paul Manafort all its dirty tricks?
Manafort is alleged to have laundered money, to have cheated on taxes and to have lied about his clientele. All of this he did in order to “enjoy a lavish lifestyle in the United States,” according to the indictment. Among other things it is alleged that he spent $1,319,281 of his money, illegally hidden from the U.S. Treasury, to pay a home lighting and entertainment company in Florida; to purchase $934,350 worth of rugs at a shop in Virginia; and to drop $655,500 on a landscaper in the Hamptons.
.. Some will find it ironic that Manafort did all of this while coaching candidate Donald Trump to run an “anti-elite” election campaign, one directed at “draining the swamp” and cleaning up Washington.
But in fact, this is exactly the kind of tactic that Manafort perfected on behalf of Russia, in Ukraine, where he worked for more than a decade.
.. in 2006, when he brought dozens of American political consultants to Ukraine to assist in an ethnically charged election that pit Russian and Ukrainian speakers against one another, in an attempt to help Russia retain influence over the country.
.. In 2010, he was one of several advisers — the others were mostly Russians — who helped remake the image of Viktor Yanukovych, the ex-con whom the Russian government then supported for president of Ukraine. Yanukovych charged the sitting government with corruption, declared that the election would be “rigged” and finally won.
.. The exploitation of ethnic tension; the dislike of NATO; the constant talk of opponents’ corruption, whether warranted or not; the shouting about falsified elections — these were Trump tactics, too
.. And he sought to undermine Ukraine’s constitution, first subtly and then openly.
.. For a long time now, a part of the U.S. political and business class has been merging, ideologically and aesthetically, with its post-Soviet counterparts. The use of shell companies and Cypriot bank accounts; the over-the-top spending on clothes and houses; the profoundly cynical manipulation of ethnic or racial divides to win elections — these behaviors are now common to a particular set of sleazy operators on two continents. If this indictment is correct, Manafort is the living embodiment of this Russian-American convergence.
Former Trump Campaign Chairman Paul Manafort Charged in Russia Probe
Former Trump campaign manager Paul Manafort was taken into custody Monday on charges that he laundered more than $18 million in funds from his work for a pro-Russia party in Ukraine through offshore accounts.
.. Mr. Manafort and his attorney, Kevin Downing, arrived about 8:15 a.m. at the FBI’s Washington field office.
Paul Manafort Is in Legal Jeopardy
But Trump may not be :
prosecutors do not obtain warrants to toss the homes of people they regard as cooperating witnesses. When they are dealing with cooperators, prosecutors politely request that documents be produced, expecting the witness (and his lawyers) to comply. If some coercion is thought necessary, they will issue a grand-jury subpoena — an enforceable directive to produce documents, but one that still allows the witness to hand over the materials, not have them forcibly seized. The execution of a search warrant, even if it goes smoothly, is a show of force. It is intimidating
.. I also emphasized its timing: predawn. Under federal law, search warrants are supposed to be executed during daytime hours, when agents can be expected to knock on the door, announce their presence and purpose, and be admitted by the occupant of the premises. If investigators want to search a home before 6 a.m., they need permission. To get it, they have to convince the judge that, if the occupant were alerted to the agents’ presence before they entered, it is likely he would destroy evidence or pose a danger.
.. the FBI entered covertly by picking the lock on Manafort’s front door while he was sleeping. Clearly, that is not standard operating procedure — certainly not in a white-collar case.
.. Mueller’s investigators wanted to start grabbing files and copying hard drives before Manafort had a chance to call his lawyers or impede the search in any way. It was their way of saying Manafort could not be trusted. That’s intimidating, too.
.. Being a foreign agent is not a crime, per se; whether the relationship is criminal depends on the nature of the actions the operative takes (including whether he has disclosed his agency, as required by federal law)
.. So in a FISA investigation, it is not necessary to show probable cause that a suspect has committed a crime in order to search his home or tap his phone; all that is needed is probable cause that he is acting as an agent of a foreign power.
.. the FISA surveillance took place in two phases:
- the first, from 2014 until sometime in early 2016;
- the second in late 2016 into early 2017
.. Initially, I suspect Manafort was investigated as an agent of the Kremlin-backed Yanukovich faction in Ukraine
.. subsequently, Manafort was investigated as a suspected agent of Russia in connection with the Putin regime’s meddling in the 2016 election. I am betting the probable-cause evidence was overwhelming in Phase I, and sketchy in Phase II.
.. the federal government is not permitted to use FISA as a ruse to conduct what is actually a criminal investigation
.. the criminal search warrant executed at Manafort’s home on July 26 would give us insight into what suspected crimes Mueller is investigating. There would have to have been a probable-cause showing of specific crimes before a judge authorized the warrant; and the warrant itself had to have described the evidence the agents expected to find.
.. Manafort has a good idea of what Mueller is after, because the agents were required by law to provide Manafort with a copy of the warrant and an inventory of what they seized. These have not been publicly revealed.
.. Not only did Manafort meet with Senate Intelligence Committee investigators the day before the search; he was also scheduled to testify before the Senate Judiciary Committee on the very day of the search. Indeed, by pouncing at the precise time Manafort was cooperating with Congress, Mueller’s investigators were able to seize binders of documents that Manafort and his counsel had prepared to assist his Senate testimony.
.. Obviously, though, Manafort would not have the same willingness to testify before Congress if he suddenly had reason to believe he was likely to be indicted (such that any testimony he gave could be used against him in a criminal case). The New York Times reports that Mueller’s prosecutors have told Manafort they intend to indict him. That, too, is intimidating.
.. CNN claims that the first FISA surveillance of Manafort was shut down in 2016, after over a year, due to “lack of evidence.” That is strange. Again, the point of FISA surveillance is not to build a criminal case but to gather intelligence about the foreign power for which the subject is allegedly acting as an agent. To say FISA surveillance was aborted for “lack of evidence” makes it sound like Manafort was not an agent for the Ukrainian faction after all.
.. Was any part of Steele’s claims used by the FBI in applications to the FISA court for surveillance and searches of Manafort or other Trump associates?
.. Was there correlation between (a) the intelligence generated by the FISA surveillance of Manafort and (b) the unmasking of people associated with the Trump campaign?
.. We should stress, of course, that if there was solid evidence of an espionage relationship between Manafort and the Kremlin, there would be nothing necessarily inappropriate in conducting surveillance and unmasking relevant American identities. The question is: Was there solid evidence?