Report: Trump Organization planned to give $50 million penthouse to Putin amid Moscow deal
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Cohen Pleads Guilty and Details Trump’s Involvement in Moscow Tower ProjectThe Trump Organization planned to offer a $50 million penthouse suite to Russian President Vladimir Putin amid negotiations over a real estate deal to build a Trump Tower in Moscow, according to a report by BuzzFeed News.
The bombshell report includes Felix Sater, a longtime Donald Trump associate accused of having Russian mafia ties, telling BuzzFeed News that he and Michael Cohen, the president's former attorney and fixer, thought giving the suite to Putin could help sell other apartments.
"In Russia, the oligarchs would bend over backwards to live in the same building as Vladimir Putin," Sater told BuzzFeed News. "My idea was to give a $50 million penthouse to Putin and charge $250 million more for the rest of the units. All the oligarchs would line up to live in the same building as Putin."
Trump’s Recall of Moscow Deal Matches Cohen’s, President’s Lawyers SayDonald J. Trump was more involved in discussions over a potential Russian business deal during the presidential campaign than previously known, his former lawyer Michael D. Cohen said Thursday in pleading guilty to lying to Congress. Mr. Trump’s associates pursued the project as the Kremlin was escalating its election sabotage effort meant to help him win the presidency.
Mr. Trump’s participation in discussions about building a grand skyscraper in Moscow showed how the interests of his business empire were enmeshed with his political ambitions as he was closing in on the Republican nomination for president. During the early months of 2016, when the business discussions were taking place, he was publicly pressing for warmer relations between the United States and Russia and an end to economic sanctions imposed by the Obama administration, policy positions that might have benefited his family business.
Court documents made public by the special counsel, Robert S. Mueller III, detailed new accusations against Mr. Cohen, the president’s former fixer, who already pleaded guilty this year to committing campaign finance violations and financial crimes. Mr. Cohen was the point person at Trump Organization for negotiating a deal for the Moscow project, and on Thursday he admitted lying to congressional investigators about the duration of the negotiations and the extent of the involvement of Mr. Trump — who is identified in the court documents as “Individual 1.”
After pleading guilty in a Manhattan courtroom on Thursday morning, Mr. Cohen said that he made the false statements to Congress out of loyalty to the president and to align with Mr. Trump’s “political messaging.”
Mr. Cohen’s cooperation with the special counsel’s investigation raises the possibility that he might have information about the central focus of the inquiry: whether President Trump or any of his associates conspired with Russia’s efforts to disrupt the 2016 election. And it was the second time that Mr. Cohen has imperiled the presidency; he said in court in New York in August that Mr. Trump directed hush money payments during the 2016 campaign to conceal potential sex scandals.
The Trump Tower discussions were occurring as Russia ramped up its sabotage campaign, the information provided on Thursday by Mr. Cohen showed, though the documents do not say whether any of Mr. Trump’s advisers were aware of the Russian disruption effort. According to a grand jury indictment made public this year, Russian intelligence operatives hacked the emails of Hillary Clinton’s campaign chairman in March 2016. That same month, an obscure professor whom Mr. Mueller’s team has identified as a likely cutout for Russian intelligence began courting a Trump campaign aide, George Papadopoulos.
Mr. Cohen admitted that the discussions about Trump Tower Moscow went on for at least six months after he had told Congress they had ended. They lasted until at least June 14, 2016, when Mr. Cohen met in New York with an associate who had been trying to arrange his trip to Russia, and told him he would not be traveling “at that time,” court documents said. Mr. Cohen also discussed the deal in a 20-minute phone call with a Russian government employee.
That same day, The Washington Post reported that Russian operatives had infiltrated the computer network of the Democratic National Committee — the first public evidence of Moscow’s campaign to disrupt the election.
Mr. Cohen said on Thursday that he discussed the status of the project with Mr. Trump on more than the three occasions he had previously acknowledged and briefed Mr. Trump’s family members about it.
Some of those exchanges, which continued until January 2016, included the president’s children Ivanka Trump and Donald Trump Jr., both of whom are executives at the Trump Organization, according to three people familiar with the documents that the company turned over to Mr. Mueller’s team.
In one email exchange in 2015, Ms. Trump made a suggestion about the architecture, according to two of the people familiar with the messages.
Donald Trump Jr. appeared to have replied to only one message, saying “Cool” in response to an update about the project, the people said.
Mr. Trump and Mr. Cohen discussed Mr. Trump himself traveling to Russia after the Republican National Convention, though that trip never materialized.
Mr. Trump defended his role in the Trump Tower Moscow discussions, brushing aside concerns that he was advancing his business interests at the time he was hoping to become president.
“There was a good chance that I wouldn’t have won, in which case I would have gotten back into the business, and why should I lose lots of opportunities?” he said to reporters as he left Washington for the Group of 20 meeting in Buenos Aires.
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“We decided — I decided ultimately — not to do it,” he said, adding, “There would have been nothing wrong if I did do it.”
Mr. Trump accused his former fixer of lying to receive a reduced sentence for the crimes he has pleaded guilty to. Under his earlier plea agreement, Mr. Cohen faced about four to five years in prison.
“He was convicted of various things unrelated to us,” Mr. Trump said, adding, “He’s a weak person and what he’s trying to do is get a reduced sentence.”
The proceedings in Lower Manhattan appeared to have global repercussions. After Mr. Cohen’s appearance in court, Mr. Trump abruptly canceled a planned meeting with President Vladimir V. Putin of Russia while both leaders are in Argentina. The president said he called off the meeting because of Russia’s recent hostilities with Ukraine.
[Read about Trump associates’ connections with Russia and Ukraine.]
The new revelations were certain to increase the strain between Mr. Trump and the Justice Department. In recent days, the president and his lawyers have increased their attacks on the department and the Russia investigation, including Mr. Mueller. This week, the special counsel’s office accused Mr. Trump’s onetime campaign chairman, Paul Manafort, of repeatedly lying to investigators in breach of his plea agreement.
The acting attorney general, Matthew G. Whitaker, was told of Mr. Cohen’s impending plea Monday or earlier, a person familiar with the special counsel’s investigation said. The White House learned of it late Wednesday, people close to Mr. Trump said.
The new revelations also came a week after Mr. Trump’s lawyers provided Mr. Mueller with written responses to a set of questions.
The special counsel identified Mr. Cohen’s false statements to Congress in testimony and materials that Mr. Cohen provided to the Senate and House Intelligence Committees, which have been conducting their own investigations into possible coordination between the Trump campaign and Russia.
“There’s a reason people shouldn’t lie when they’re in front of a congressional investigation,” Senator Richard M. Burr of North Carolina, the chairman of the Intelligence Committee, said on Thursday. The committee’s top Democrat, Senator Mark Warner of Virginia, said that the panel had made additional criminal referrals to Mr. Mueller, but he gave no specifics.
Federal agents raid office of lawyer who previously did tax work for TrumpThe latest criminal charges against Michael D. Cohen, President Trump’s longtime fixer, for lying about a Moscow hotel deal raised questions of whether Mr. Cohen created new legal risks for Mr. Trump or his family members, possibly by contradicting what they told investigators about the same project.
The answer, at least according to the president’s lawyers and people close to his family, is no. Although Mr. Trump’s lawyers have long worried that the special counsel, Robert S. Mueller III, is trying to catch Mr. Trump in a lie, they said Mr. Cohen’s new account of the Trump Organization’s abortive hotel project in Moscow essentially matches what Mr. Trump himself stated in written answers delivered to prosecutors just nine days ago.
Mr. Cohen might have lied to the authorities about aspects of the deal, as the complaint charges, they said, but the president did not.
“The president said there was a proposal, it was discussed with Cohen, there was a nonbinding letter of intent and it didn’t go beyond that,” said Rudolph W. Giuliani, one of Mr. Trump’s lawyers, who with others negotiated the president’s responses to Mr. Mueller’s questions for nearly a year. He said prosecutors did not raise certain details that Mr. Cohen now says he misled Congress about — including how long the hotel project stayed alive — and that the president did not volunteer those details.
According to the new documents released by the special counsel, Mr. Cohen lied when he told Congress last year that he had talked to Mr. Trump about the project only three times and that the proposal died in January 2016 — before the first primary in the race for the Republican presidential nomination. He also concealed his interactions with Russian officials and the fact that he asked Mr. Trump to travel to Russia to promote the deal because, he said, he wanted to support Mr. Trump’s “political messaging.”
Mr. Giuliani refused to disclose Mr. Mueller’s precise questions to Mr. Trump about the deal or exactly how the president responded. He said only that Mr. Trump and the Trump Organization, his company, provided the prosecutors “with every document about this from the beginning,” adding, “That’s the only reason they know about it.”
Notes by the president’s lawyers this year show that prosecutors were trying to scrutinize Mr. Trump’s business dealings in Russia during the campaign, including what he knew about the hotel deal that Mr. Cohen was pursuing with Felix Sater, another business associate.
“What interaction and communication did you have with Michael Cohen, Felix Sater and others, including foreign nationals, regarding real estate developments in Russia during the period of the campaign?” Mr. Mueller’s team asked in a meeting with Mr. Trump’s lawyers, according to the notes.
Mr. Cohen’s new account of the hotel deal will inevitably be compared not only to the president’s, but also to those of Donald Trump Jr., his eldest son, who testified repeatedly before congressional committees last year about that project and other matters. The complaint states that Mr. Cohen misled Congress about the fact that he had briefed Trump family members about the project. Although the family members were not named, a person familiar with the situation said Mr. Cohen discussed the deal with Donald Trump Jr. and Ivanka Trump.
Testifying before the Senate Judiciary Committee in September 2017, the younger Mr. Trump said that he was only “peripherally aware” of the proposed venture to build a new Moscow hotel bearing the Trump name. Most of what he knew about it, he said, he had learned recently while preparing to testify. He told the committee that Mr. Cohen pursued the project in 2015 and told the House Intelligence Committee that the deal fell dormant as of June 2016 — an accurate date, according to Thursday’s court documents.
Lawyers for Ms. Trump and her brother declined to comment on their interactions with Mr. Cohen about the project. But people close to the Trump family said that while emails indicate that both of them were aware of Mr. Cohen’s efforts to get it off the ground in 2015, their involvement appears to end in January 2016. If Mr. Cohen tried to continue with the project after that, these people added, they did not know.
The president’s critics will also inevitably seek to learn whether he knew that Mr. Cohen, then still a trusted aide, falsely testified to Congress last year. As they continue to do, Mr. Trump’s lawyers then closely monitored what witnesses like Mr. Cohen were telling the authorities through joint defense agreements with their lawyers.
But even if the president knew that Mr. Cohen misled Congress, legal experts said, he is not in legal jeopardy as long as he did not ask Mr. Cohen to lie. And there is no allegation that he did so.
The latest complaint, on its face, seems less worrisome for the president than the previous one lodged against Mr. Cohen in August, said Chuck Rosenberg, a former United States attorney and senior F.B.I. official. In that case, Mr. Cohen directly implicated Mr. Trump in a crime, saying he instructed him to pay money to two women to cover up a potential sex scandal that he feared could endanger his presidential candidacy. Mr. Cohen pleaded guilty to campaign finance violations and a host of other charges for which he has yet to be sentenced.
The president lashed out fiercely at Mr. Cohen on Thursday, calling him a “weak” prevaricator who concocted a false tale about the hotel deal in hopes of winning a lesser punishment. That charge conflicts with Mr. Giuliani’s assertion that Mr. Cohen and Mr. Trump have now given prosecutors much the same account.
Asked how he reconciled the seeming contradiction, Mr. Giuliani blamed Mr. Cohen.
“He has so many different versions of the same stories, so by definition he is a liar and we can’t trust him,” Mr. Giuliani said. “Given the fact that he’s a liar, I can’t tell you what he’s lying about.”
Federal agents have reportedly raided the Chicago City Hall office of a lawyer who previously did tax work for President Trump.
The Chicago Sun-Times reports that federal agents removed everyone from the office of Chicago Finance Committee Chairman Ed Burke on Thursday morning, covering the floor-to-ceiling windows with brown paper.
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Burke worked for Trump for more than a decade doing property tax work.
Burke’s law firm of Klafter & Burke has worked with Trump’s companies repeatedly to reduce the property tax that Trump Tower and his other properties in Chicago have had to pay, according to the Sun-Times.
Over his 12 years working for Trump, Burke was allegedly able to cut the property taxes on the downtown tower by more than $14 million.
Burke stopped working for Trump this summer, citing “irreconcilable differences” in letters filed with the Illinois State Property Tax Appeal Board.
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