Why Can’t Democrats Let Go of Their “Collusion Delusion?”

Why Can’t Democrats Let Go of Their “Collusion Delusion?”

Why Can’t Democrats Let Go of Their “Collusion Delusion?”

On Sunday, March 24, 2019, U.S. Attorney General William Barr gave Congress a four-page summary of Robert Mueller’s key findings. The summary disappointed many who believed that the President or his campaign conspired with Russia to win the 2016 election. According to Barr, Mueller did not prove that the Trump campaign colluded with Russia and “did not draw a conclusion – one way or the other” on whether Trump obstructed justice. Such conclusions clearly seem to vindicate the President. The obstruction question was left undecided because, Barr claimed, if the President did not commit the crime of conspiring with Russia, by definition he cannot be guilty of trying to obstruct an investigation of that crime. Nonetheless, many on the left find Barr’s summary difficult to believe. To Trump’s supporters, Democrats appear wildly delusional in a hysterical desire to avenge their 2016 electoral defeat. So do the facts that we know actually contradict the most straightforward interpretation of Barr’s letter? Below are some established facts related to Trump and/or Russia:

  • In Russia, government, business, and organized crime are all deeply interconnected. Violence or the threat of it are used in Russia to influence others in business and politics. Another tactic used widely in Russia is “kompromat” – using something compromising as leverage over another (sometimes extending as far as blackmail) including sexual indiscretions, business relationships, debt/financial obligations, chemical dependency, friendships, or knowledge of something embarrassing or illegal.
  • Trump defied decades of standard practice by refusing to release his tax returns, thus preventing the public from seeing what kind of financial obligations and relationships he might have.
  • Trump had worked for years with real estate development company Bayrock – a company believed to have ties to Russian organized crime – to develop the Trump Soho Hotel.
  • Bayrock was owned by Russian-American mobster Felix Sater (Sater was convicted in 1998 of a $40 million federal racketeering charge) and former Soviet official Tefvik Arif (Arif was well-connected in the former Soviet Republic of Kazakhstan, and Trump stated in a deposition that he was impressed by Arif’s ability to bring in wealthy Russian investors).
  • The other financier for Trump Soho was the Sapir family from the former Soviet republic of Georgia.
  • Sater carried Trump Organization business cards, and had an office two floors below Trump’s in the Manhattan Trump Tower, but Trump claimed that he wouldn’t recognize Sater if he saw him.
  • Sater also worked with Michael Cohen to secure the Trump Tower Moscow project during the 2016 campaign, even though Trump repeatedly denied on the campaign trail that he had anything going on in Russia.
  • Sater is currently accused of seeking to use that project to launder money stolen from a large bank in the former Soviet republic of Kazakhstan.
  • The Trump Ocean Club International Hotel and Tower in Panama was used by Russian organized crime figures to launder money.
  • In 2005, Trump Campaign Chair Paul Manafort had proposed an influence campaign on behalf of Russia to “influence politics, business dealings and news coverage inside the United States, Europe and former Soviet Republics to benefit President Vladimir Putin’s government.”
  • Manafort had worked to help pro-Putin politician Viktor Yanukovych get elected President of Ukraine – work for which Manafort was allegedly paid millions of dollars “off the books.” Yanukovych was later exiled and fled to Russia.
  • More recently, Manafort had worked for Oleg Vladimirovich Deripaska, a Russian oligarch with alleged ties to organized crime as well as being a close friend of Vladimir Putin. Manafort had allegedly ripped off Deripaska to the tune of millions of dollars – a debt that no doubt could have been used as kompromat over Manafort.
  • Once he began working for the Trump Campaign, Manafort emailed Konstantin Kilimnik, a Russian/Ukrainian friend of Deripaska believed to be a former GRU (Russian military intelligence agency) officer. Manafort asked of the headlines about his being Trump’s Campaign Manager “How do we use to get whole? Has OVD [Oleg Vladimirovich Deripaska] operation seen?”
  • Manafort later told Kilimnik that he could arrange for “private briefings” between Deripaska and Trump.
  • Manafort also provided Kilimnik with the Trump Campaign’s internal polling data.
  • Special Counsel Mueller indicted 12 GRU agents for their hacking of the DNC, and indicted a company called the Internet Research Agency for waging a social media campaign to interfere with the 2016 election – an interference campaign for which polling data could provide valuable demographic information.
  • At the 2016 Republican National Convention, the Trump Campaign had only one requested modification to the Republican Party platform: weakening the amount of aid that the U.S. provides to Ukraine to defend itself against Russian military aggression.
  • Trump’s attorney Michael Cohen has had a history of associating with Russian organized crime figures from the time that he was a child, and reportedly once claimed that he was part of the Russian mafia.
  • Trump Foreign Policy Advisor Carter Page had come to the attention of the FBI in 2013 when he began meeting with a Russian operative.
  • While a Foreign Policy Advisor for Trump, Carter Page gave a pro-Russia speech in Moscow on July 7, 2016.
  • In 2014, Eric Trump told sports journalist James Dodson of the money that financed the Trump golf courses “We don’t rely on American banks. We have all the funding we need out of Russia.”
  • In December of 2018, Trump’s architect Alan Lapidus said of Donald Trump, “he could not get anybody in the United States to lend him anything. It was all coming out of Russia. His involvement with Russia was deeper than he’s acknowledged.”
  • Lapidus also said “Trump could not get money here. He found Russia, and the Russians gave him a lot of money. He has got to be doing a quid pro quo. It’s just logical. It’s just too much money.”
  • Russians invested nearly $100 million in seven Trump-branded luxury towers in Florida.
  • In 2008, Donald Trump Jr. stated, “In terms of high-end product influx into the U.S., Russians make up a pretty disproportionate cross-section of a lot of our assets.”
  • Numerous people associated with the Trump Campaign inexplicably did not tell the truth (sometimes under oath) regarding communications or connections with Russia, including:
    • Former Trump Attorney General Jeff Sessions (spoke more than once with Russian Ambassador Sergey Kislyak but denied it to the U.S. Senate)
    • Former Trump National Security Advisor Michael Flynn (spoke with Kislyak about lifting sanctions before Trump was inaugurated, undermining Obama Administration policy, and then denied it to the FBI)
    • Former Foreign Policy Advisor George Papadopoulos (lied about having been told about Russian “dirt” on Hillary Clinton and seeking to form a connection between the Trump Campaign and Russian government)
    • Former Foreign Policy Advisor Carter Page (met with Russian officials in July 2016, but denied it publicly until questioned under oath by the House Intelligence Committee)
    • Donald Trump Jr. (repeatedly changed his story about meeting with Russian lawyer Natalia Veselnitskaya at Trump Tower to get “dirt” on Hillary Clinton – a meeting also attended by Manafort and Kushner)
    • Jared Kushner (had to repeatedly revise his federal security clearance application as various Russia ties, initially not mentioned, were uncovered – including a meeting shortly after the 2016 election with a Russian state-owned bank to get a multi-million dollar loan).
    • Donald Trump (among many lies, on the campaign trail, claimed that he had “nothing to do with Russia” at the same time as he was pursuing a Trump Tower Moscow. He intended to give Putin the penthouse suite in the tower. Later, in response to allegations that Trump participated in a lewd act in a room at the Moscow Ritz Carlton in 2013 when he was there for the Miss Universe Pageant, Trump claimed that he had not spent the night in Russia on that trip. His flight records refuted that.)
    • Michael Cohen (prosecuted and going to prison for lying to Congress – allegedly at the President’s request – about the Trump Tower Moscow deal).
    • Why all the lies about Russia?
  • On June 3, 2016, Rob Goldstone, promoter for Russian pop singer Emin Agalarov, emailed Donald Trump Jr. to set up the Trump Tower meeting. In his email, Goldstone stated “This is obviously very high level and sensitive information but is part of Russia and its government’s support for Mr. Trump.”
  • Rather than reporting this to law enforcement, Trump Jr. responded to the email with “If it’s what you say it is, I love it,” and went on to set up the meeting.
  • Alexander Downer, a diplomat from Australia (an American ally), reported to his government that Trump Campaign aide George Papadopoulos had told him in May of 2016 that the Russians had dirt on Hillary Clinton. When the Russian hacking began during the 2016 election, the Australian government informed the U.S. intelligence community of the conversation.
  • Jared Kushner made attempts to set up a “back channel” of communications between the White House and the Kremlin through a Russian diplomatic facility that would bypass America’s national security agencies.
  • Trump had engaged in what appeared to be years of money laundering activities for wealthy Russians, like when he bought a Palm Beach mansion for $41 million and sold it to Russian oligarch Dmitry Rybolovlev two years later with few improvements for $95 million. Putin keeps track of what Russia’s oligarchs do, and if he were aware of money laundering by Trump, he could use that knowledge to blackmail him.
  • Rybolovlev’s plane and yacht showed up a number of times near Trump Campaign events.
  • Interestingly, Rybolovlev’s plane and yacht also arrived in Dubrovnik, Croatia in mid August of 2016, and Ivanka and Jared suddenly appeared in Dubrovnik, Croatia in mid August of 2016.
  • On July 27, 2016, Donald Trump publicly called on Russia to find Hillary Clinton’s 30,000 missing emails.
  • Immediately after that announcement by Trump, according to Mueller’s investigation, Russian hackers began an “after hours’ effort on July 27, 2016 to hack into Hillary Clinton’s private email account.
  • Russia’s interference with the 2016 election served generally to benefit Donald Trump.
  • During the 2016 campaign, U.S. intelligence detected a server at Alfa Bank, one of the largest banks in Russia, “pinging” a specific server at the Trump Organization thousands of times. The unusual activity remains unexplained to this day.
  • A pair of Russian operatives – banker Alexander Torshin and “student” Maria Butina – infiltrated the NRA, which spent $30 million to elect Trump. While the NRA has long supported Republican candidates, this was an unusually large amount for them, and some of that money appears to have been funneled into the NRA via Russia.
  • After Trump took office, acting Attorney General Sally Yates notified Trump that Michael Flynn was compromised by Russia, but Trump waited for over two weeks to fire Flynn.
  • Just before Trump nominated Wilbur Ross to be U.S. Secretary of Commerce, Ross had spent years as Co-Chair of the Bank of Cyprus. Cyprus, an island nation off the coast of Turkey, is known as a place where Russian oligarchs launder their illicit money.
  • Ross has significant financial ties to Russia.
  • Josef Ackermann, Deutsche Bank’s CEO from 2002-2012, was brought on as Chairman of Bank of Cyprus by Wilbur Ross in 2014.
  • Deutsche Bank, one of the only banks willing to loan money to Trump after his multiple bankruptcies, has a documented history of money laundering on a large scale for Russian oligarchs.
  • Wilbur Ross was also the person who initially connected Donald Trump and Dmitry Rybolovlev for the Palm Beach mansion purchase.
  • The day after firing James Comey, Russian Diplomat Sergey Kislyak and Russian Foreign Minister Sergei Lavrov were Donald Trump’s guests in the Oval Office. No American reporters were allowed, but Russian journalists were.
  • During that meeting, Trump disclosed highly classified information to the two Russian officials, endangering the lives of U.S. intelligence assets and causing U.S. allies to question their own sharing of intelligence with the United States.
  • On July 8, 2017, the New York Times first broke the story of the existence of the Trump Tower meeting between Russian lawyer Natalia Veselnitskaya, Donald Trump Jr., Paul Manafort and Jared Kushner, which had taken place on June 9, 2016.
  • On July 8, 2017, on the way back from the G20 Summit (at which Trump met with Putin for over 2 hours when they were only supposed to meet for 30-40 minutes), Trump felt the need to dictate his son’s cover story about the Trump Tower meeting.
  • The President’s misleading cover story for his son was that Veselnitskaya simply wanted to discuss “Russian adoption” – also the topic that the President claimed Putin wanted to talk with him about in a lengthy private discussion. The Magnitsky Act, which calls for the freezing of the U.S.-based assets of Putin and other wealthy Russian oligarchs as a consequence for their human rights violations, was put in place on December 14, 2012. Putin was outraged by this Act, and one of his retaliatory measures was to ban American adoption of Russian children.
  • During his time in office, Trump has had a pattern of taking actions favorable to Putin’s agenda and seemingly contrary to that of the United States, including:
    • Repeatedly making efforts to eliminate or weaken sanctions against wealthy and powerful Russians close to Putin
    • Questioning the legitimacy of and proposing to leave NATO, one of the biggest obstacles to Putin’s military expansion of Russian territory
    • Backing out of the Iran nuclear deal that America’s allies support, alienating us from our allies
    • Sowing division within the European Union
    • Backing out of the Paris Climate Accord that nearly every other country in the world has signed onto, further alienating us from our allies and making us less globally relevant
    • Legitimizing Russia’s illegal seizure of Crimea and suggesting that Crimea should be considered part of Russia
    • Denying Russian interference in the 2016 U.S. election despite the conclusions of the U.S. intelligence community
    • Doing little since the 2016 election to protect future American elections from foreign interference, and actually weakening established efforts to defend our elections
    • Regularly telling easily disproven lies, which damages America’s international credibility and threatens our national security
    • Treating American allies (eg Britain, Germany and Australia) with disrespect, further alienating us from our allies
    • Treating American enemies (eg Russia) graciously, causing suspicion among our allies
    • Fueling and enhancing division within the United States
    • Weakening America’s institutions by appointing cabinet secretaries with backgrounds clearly antithetical to the missions of the institutions that they lead
  • With the exception of translators, Trump’s direct meetings with Putin have been without other aides present, and at times have been undisclosed until uncovered by the press. No detailed notes have been retained from any of these meetings. In fact, in the case of his meeting with Putin in Helsinki, Trump actually confiscated the translator’s notes afterward and told her that she could not tell anyone what had been discussed. Even Trump’s top staff do not know what he and have Putin talked about. All of this secrecy is even more baffling when one considers that Trump must know that everyone is paying attention to how he interacts with Putin.
  • Trump has repeatedly accepted Putin’s word over information from his own intelligence agencies.
  • After the 2017 G20 Summit in Hamburg, Germany, Trump floated the idea of partnering with Putin to help the United States develop its cybersecurity efforts (the equivalent of inviting a burglar back into your home to help find evidence against them and make your home more secure).
  • After his formal discussion with Putin at the 2018 Helsinki Summit, Trump floated an “interesting idea” and “incredible offer” that Putin had suggested: American investigators could come to Russia to work with Russian investigators to determine if the 12 indicted GRU officers had committed any crimes, in exchange for letting the Kremlin interrogate certain U.S. officials, including Michael McFaul, a former U.S. Ambassador to Russia who has been critical of Putin’s human rights record.

These established facts are in addition to what was laid out in the Steele Dossier (compiled by a former British intelligence agent with a track record of reliably passing on accurate, factual information to U.S. law enforcement), which Trump’s supporters claim is the only reason that the Mueller investigation began. The above facts are also completely consistent with the only “collusion”-related quote provided in Attorney General William Barr’s summary of Mueller’s report:

“[T]he investigation did not establish that members of the Trump Campaign conspired or coordinated with the Russian government in its election interference activities.”

This quote does not necessarily mean that there was no conspiracy or coordination. It may well be a statement by Mueller that such a relationship simply could not be legally proven beyond a shadow of a doubt, despite all of the circumstantial evidence above.

And since Mueller’s report also “does not exonerate” the President on obstruction of justice, it is possible that coordination or conspiracy could not be proven because Trump was successful in obstructing justice, that witnesses were swayed by the President’s repeated public suggestions of pardons, that witnesses were afraid of retribution in prison by Trump’s supporters or by members of the Russian mafia, that evidence on the Russian side was successfully destroyed or silenced, or that witnesses were reluctant to willingly admit to outright treasonous acts which, regardless of plea deals, would result in lengthy prison time and lifelong branding of themselves and their families. And not definitively proving coordination with Russia does not mean that Donald Trump was not – and is not currently – compromised by the Kremlin in a way that causes him to act against America’s interests.

In other words, the public needs to see as much of the Mueller report as possible without jeopardizing national security or revealing sources and methods. It would also be very helpful to hear an account from Mueller himself on what is in his report and whether he believes that Barr’s representation of it is accurate. Republicans and Democrats should both be supportive of this, because it can help give the public a more commonly shared understanding of the investigation’s results – something which is not currently happening in the wake of Barr’s ambiguously worded four-page letter.

Lastly, the public needs to be reminded that, despite Barr’s assessment of inconclusive findings in the Mueller report, there are still numerous ongoing investigations into Trump yet to be completed, some of which were farmed out to other law enforcement agencies during the course of Mueller’s investigation.

Americans have witnessed a lot of smoke over the past three years, and many still find it difficult to believe that there is no fire.

– rob rünt

The Trump-Russia Web – Part 11: Glenn Simpson and the Trump Investigation

The Trump-Russia Web – Part 11: Glenn Simpson and the Trump Investigation

Glenn Simpson and the Trump Investigation


Disclaimer: This is an in-depth look at the Fusion GPS Trump-research-related parts of Glenn Simpson’s testimony before the Senate Judiciary Committee on August 17, 2017 and before the House Intelligence Committee on November 14, 2017. The information below was presented by Glenn Simpson in his testimony, and is not being represented here as either fact or as the opinion of the webmaster unless specifically stated. All statements and assertions should be read as if prefaced by “Glenn Simpson states that …” Any content that I add will be surrounded by [brackets] and will likely include a link or reference to the source.


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Glenn Simpson (Photo: ABC News)

What is the narrative that Glenn Simpson told the Senate Judiciary Committee about his Trump research?

(Full Transcript of 10-Hour Testimony – 312 pages)

Glenn Simpson’s research firm, Fusion GPS, was hired by a Republican client to investigate Donald Trump as part of an opposition research campaign. After Trump won the primary, Fusion continued doing the research for a Democratic client. Simpson declined to disclose whether either client paid him directly for the work or if he was paid through an intermediary. [The Committee and Simpson’s attorneys had apparently agreed in advance that certain topics – names of his clients, communications with his clients, and naming sources of information – would not be pursued in any questions.]

Fusion’s research into Trump began in September or October of 2015 with a general exploration of public records regarding Trump’s businesses, associates, finances, bankruptcies, and “offshore or third world suppliers of products that he was selling.” The research “evolved somewhat quickly into issues of his relationships with organized crime figures,” including connections to Italian organized crime and a relationship with Russian organized crime figure Felix Sater.

Some of Trump’s money seemed to be coming from Kazakhstan and other unusual places, and the money couldn’t be accounted for. Trump also seemed to take a lot of business trips to Russia, but little if anything seemed to come from them, which Simpson found odd.

After the Prevezon case ended, Fusion hired Edward Baumgartner – who had worked on the Prevezon case and spoke Russian – as a subcontractor to do work such as researching Russian language newspapers for information about Paul Manafort and his work in Ukraine for now-exiled pro-Russian Ukrainian President Yanukovych. There were no other subcontractors who worked on both the Trump and Prevezon projects.

In May or June of 2016, once Trump was clearly the Republican nominee, Fusion’s Trump research ended for the Republican client and then resumed for a Democratic client. By that time, the research that could be done via public records had largely been exhausted, and a handful of areas of interest had also emerged, one of which was Trump’s business dealings in Russia.

Fusion hired former British intelligence officer Christopher Steele as a subcontractor to do “human intelligence” (interviewing people), a skill that is generally outside of Fusion’s data-and-document-driven strengths. Steele was hired specifically to obtain more in-depth information than could be determined from public records regarding Trump’s activities in Russia and other former Soviet countries, where Trump appeared to have relationships with Russian organized crime figures and other “colorful characters.”

Steele was the former “lead Russianist” with MI6 (Britain’s equivalent of the CIA), was a highly regarded investigator and an expert at identifying Russian disinformation. Simpson and Steele had worked together on other projects since 2009. Steele was known as “a person who delivered quality work in very appropriate ways … he’s basically a Boy Scout.” He “has a sterling reputation as a person who doesn’t exaggerate, doesn’t make things up, doesn’t sell baloney …. Everyone I know who’s ever dealt with him thinks he’s quite good. That would include people from the U.S. government.” Asked if credibility with the FBI was one reason for Fusion hiring Steele, Simpson said no. Consistent with Fusion practices to ensure integrity of gathered information, Christopher Steele and Ed Baumgartner were unaware that each other was working on the case.

Between June-October 2016, Steele created 16 memos that he sent to Simpson, as well as a 17th memo in December 2016, after the election. Steele told Simpson that he did not believe that what he had reported in the memos was disinformation.

The 17th memo was created after Steele’s engagement with Fusion GPS had ended, because Steele’s sources were still continuing to provide him with information. It is unclear whether that 17th memo was sent to Simpson or to someone else. Steele’s attorneys had apparently stated in the past that this 17th memo had been given to a “senior United Kingdom government national security official” although Simpson expressed ignorance of this.

Whenever Steele sent in a memo, Simpson would generally verify it against information that Fusion had already gathered through other sources such as public documents, and Steele’s information matched up. Neither Simpson nor Fusion edited or altered Steele’s memos in any way. Steele did not name the human sources of his information for the memos, and Simpson does not believe that he paid them for information.

Simpson had expected that Steele’s memos might reveal evidence of corruption in Trump’s overseas dealings. Instead, Steele’s first memo raised alarms that the Russian government had been “cultivating and supporting” Trump for at least 5 years, that Trump and his inner circle had been accepting a “regular flow of intelligence from the Kremlin, including on his democratic and other political rivals,” and that Trump was also sufficiently compromised by the FSB (under direction of Putin) that he could be blackmailed, particularly with regards to a potentially videotaped sexual act in the Presidential Suite of the Moscow Ritz Carlton Hotel.

Russian intelligence is known to have recording devices in many Russian luxury hotel rooms to gather “kompromat” – compromising material – on political and business leaders. [This practice dates back to the Soviet Union and KGB, and is believed to have been used by Putin for political advancement early in his career] [New York Times]. Such a situation poses a profound danger to the national security of the United States if a U.S. President or other major U.S. political figure can be blackmailed by a hostile foreign power.

Steele’s first memo also noted that the Kremlin had compiled a dossier of years of recorded phone conversations and other records of Hillary Clinton, mainly revealing her expressing opinions that differed from her public positions.

Simpson was aware of the Kremlin’s hostility toward Hillary Clinton and of Russia’s interference in recent European elections, and was also aware of the possibility of meddling in a U.S. election by a foreign government. While an investigative reporter at the Wall Street Journal, Simpson had exposed a Chinese effort to swing the 1996 Presidential election to Bill Clinton.

Additionally, Simpson recalled a story that he had written as a WSJ journalist about Oleg Daripaska (Russian oligarch suspected to have ties to organized crime) meeting with John McCain (R-AZ) before the 2008 election. And as a journalist, Simpson had written stories about Paul Manafort’s connections to the (pro-Putin) Party of Regions in Ukraine, to pro-Putin ousted Ukrainian President Viktor Yanukovych, and to Russian oligarchs suspected of corruption. The Manafort stories had sprung from earlier stories that Simpson had written about the Kremlin collaborating with the Russian mafia to skim money from the gas trade between Ukraine and Russia. All of these things came to mind for Simpson as he pondered Steele’s first memo.

Steele believed the information in this memo to be potentially evidence of a crime in progress and a matter of national security concern to the United States. He considered it his professional obligation to report it to U.S. authorities, and expressed this to Simpson. Simpson was hesitant at first, but eventually said that Steele should report it if he felt that it was his obligation. Steele reached out to a contact that he had at the FBI. Simpson’s perspective was “to me this was like, you know, you’re driving to work and you see something happen and you call 911.” Simpson did not seek anyone else’s approval [one would assume that “anyone else” would include Fusion’s Democratic client] to authorize Steele to go to the FBI.

Simpson did not know if Steele gave the FBI the actual written memo, and did not know if Steele had actually requested that the FBI open an investigation. Simpson only later learned from news reports that Steele first contacted the FBI in the first week of July [a few days after Simpson had agreed that he should do so]. Simpson wondered for months if the FBI had actually done anything with the information: he knew that the Department of Justice has rules against law enforcement getting involved in the middle of a campaign, but he also increasingly believed that a serious crime was in progress regarding the hacking of the DNC and others.

In mid to late September, the FBI contacted Steele and said that they wanted all of the information that he had, so Steele met with them in Rome (at FBI expense) and debriefed them. Simpson testified that the FBI told Steele that they “had other intelligence about this matter from an internal Trump Campaign source” independent of Steele’s sources, and that they believed that Steele’s information was credible. Later in the testimony, Simpson said that it was unclear if the FBI was the one who told Steele about this, and that he was also unclear if the FBI’s other source was someone in the Trump Campaign or the Trump Organization.

Simpson was nonetheless uncertain and deeply concerned about how seriously the FBI was in investigating Steele’s findings. This concern came to a head when the New York Times ran a story on October 31, 2016 stating that the FBI had been investigating Trump-Russia connections and had found nothing. [New York Times] Shortly after that, Steele cut off his relationship with the FBI, believing that the FBI was possibly somehow being influenced by the Trump Campaign for political purposes. After the election, the FBI contacted Steele about possibly being paid by them to continue his investigative work, but he declined.

Republicans on the Senate Judiciary Committee had a back and forth with Simpson and his attorneys regarding whether the non-disclosure agreement between Fusion and Orbis (the company that Steele worked for) forbade Simpson and/or Steele from giving the memos and/or the information in them to the press or to law enforcement. Republicans also pointed out that in a lawsuit against Steele, Steele’s attorneys had stated that Steele and Fusion, at Fusion’s instruction, had given “off-the-record briefings” in September and October 2016 to journalists from the New York Times, the Washington Post, Yahoo News, the New Yorker, ABC, and others.

Simpson was asked if he or Fusion has provided Steele’s actual memos to their Democratic client or to Buzzfeed, the news outlet that first publicly released them. Simpson’s attorney told Simpson not to answer that question verbally, but the attorney had apparently provided a written statement to the Judiciary Committee stating that they had not provided the actual memos to those entities.

Senate Judiciary Committee Republicans asked a number of questions implying that Fusion’s Trump investigation was unethical, and Simpson responded:

  • No, the amount of Fusion’s pay or Orbis’s pay was not contingent on whether or not the FBI started an investigation.
  • No, to Simpson’s knowledge, Christopher Steele and Rinat Akhmetshin (HRAGI lobbyist employed by Natalia Veselnitskaya and who was at the Trump Tower meeting) did not know each other, and Akhmetshin did not work for Orbis.
  • No, Simpson does not believe that he discussed the existence of Fusion’s Trump investigation with Natalia Veselnitskaya, Rinat Akhmetshin, or anyone involved in the Prevezon case including anyone at Baker Hostetler, and does not believe that Steele did so either. Doing so would have been a violation of their non-disclosure agreements.
  • No, Simpson was not influenced in his actions on the Trump project by Veselnitskaya or Akhmetshin, and does not believe Steele to have been either.

After the election, Sir Andrew Wood, Britain’s former ambassador to Russia, had a chance encounter with U.S. Senator John McCain and his adviser, David Kramer, at a security conference in Nova Scotia, and informed them of the dossier. Rinat Akhmetshin was listed in conference records as being in attendance at that conference, a fact of which Simpson was unaware until the Senate hearing.

It is unclear how Wood had learned of the dossier: nobody at Fusion had provided any information about it to any foreign governments. After the conference, Kramer reached out to Steele to get more information for McCain to bring to the FBI’s attention. At this point, Simpson and Steele were still unclear how seriously the FBI was taking the information or if the information had been conveyed to anyone of high rank in the FBI, so the idea of having a U.S. Senator take the information to the FBI was appealing.

Some miscellaneous information from Simpson’s testimony included:

  • Simpson researched Trump foreign policy adviser Carter Page, as well as Russian government officials Sergei Ivanov and Igor Sechin. Simpson believed Carter Page to be potentially compromised by the Kremlin.
  • Simpson observed that most Russians work to some degree for the Russian government and receive pensions. Simpson speculated that if those Russians were to move to the U.S., the Russian government disbursing their pensions would be an ideal way for the Russian government to launder money and get money out of Russia – a concept suggested in Steele memos #4 (2016/095) and #10 (2016/111). Simpson encouraged the House Judiciary Committee to look further into this, because there is a large amount of Russian money coming into the U.S. through what Simpson believes are fake or inflated pensions. However, such payments might not be easily traceable and would fall under diplomatic privileges.
  • Simpson explained that “Russian organized crime is …. involved in politics and banking and there’s even a lot of connections between the mafia and the KGB or FSB and cyber crime …. Stock fraud in particular was the big thing in the U.S.”
  • Simpson learned of a New York court case in which the government of Kazakhstan was trying to recover billions of dollars that had allegedly been stolen during the failure of a major bank called BTA Bank. The money was allegedly laundered in Europe and the United States. Felix Sater, a real estate developer who at one time had an office in Trump Tower, appeared to be involved in some way, and there were media reports that some of the money went into Sater’s company in the building of Trump Soho.
  • Simpson’s review of estate taxes on Trump’s properties indicated that Trump publicly estimated his individual properties to be worth far more than he says that they are worth on his taxes, and a number of his golf courses don’t make any money.
  • Toward the end of testimony, Simpson was asked about Alfa Bank and its founders, Pyotr Aven, Mikhail Fridman and German Khan. Simpson had little information about them.

Prompted by his attorney, who cited the terms agreed upon by the Senate Committee prior to the testimony, Simpson did not answer a small handful of questions, mainly pertaining to names of his clients, communications with his clients, and naming sources of information. In general, he appeared to be extremely forthcoming in his 10-hour testimony.


What did Glenn Simpson tell the House Intelligence Committee about Fusion’s Trump research that he did not already say in his Senate testimony?

 (Full Transcript of 6-Hour Testimony – 165 pages)

The Republican client who initially engaged Fusion to research Presidential candidate Donald Trump was a conservative web publication called the Washington Free Beacon. [The Beacon’s benefactor, Paul Singer, was a supporter of (then-Presidential hopeful) U.S. Senator Marco Rubio (R-FL)]. [New York Times] Simpson did not believe that the Beacon was acting as a proxy for any specific candidate, but believed that they were generally from the wing of the Republican Party that was concerned about a takeover of the GOP by Trump and his supporters. Simpson also researched (then-Presidential hopeful) U.S. Senator Ted Cruz (R-TX) for the Beacon during the 2016 Republican Primary.

The Beacon would sometimes ask Fusion to pass researched information on to reporters. Other times, reporters would reach out to Fusion for information, and Fusion would make sure that the Beacon authorized sharing the information with that reporter. The Beacon also provided some of Fusion’s research to reporters without necessarily notifying Fusion.

During the period when the (conservative) Beacon was Fusion’s client, the issues that surfaced about Trump with regard to Russia that raised enough questions in Simpson’s mind to warrant further exploration included:

  • Trump’s relationship with Felix Sater and Sater’s real estate development company Bayrock – a company that Simpson believed had ties to Russian organized crime and received “opaque” funding from Russia and other former Soviet countries. Alexander Mashkevich, a financial backer of Bayrock, is a Central Asian organized crime figure who has been involved in money laundering, the mining industry, and Kazakhstan.
  • The Trump campaign’s hiring of Paul Manafort, who Simpson knew had worked for Ukraine’s pro-Russia political party, and who had also successfully worked to get pro-Russian candidate Viktor Yanukovych (now exiled in Russia) elected President of Ukraine.
  • The “amazing number of people from the former Soviet Union who had purchased properties from Mr. Trump.” [One of them was Dmitry Rybolovlev. Rybolovlev was a wealthy Russian oligarch who purchased a Palm Beach mansion from Trump for a staggering $95 million in 2008. Trump had paid around $41 million for it just two years earlier and had made very few improvements to it, raising questions about why Ryoboloviev had paid so much for it. The current U.S. Secretary of Commerce, Wilbur Ross (former Vice Chair of the Bank of Cyprus) connected Rybolovlev and Trump to do the transaction.] [MSNBC]
  • The number of Trump properties where it was not easy to determine who the buyer was.
  • Various criminals buying Trump properties, including one who was running a high stakes gambling ring out of Trump Tower.
  • The number of Trump properties that were sold at a loss shortly after they were bought.
  • “Patterns of buying and selling that we thought were suggestive of money laundering”
  • The number of trips that Trump had taken to Russia.

All of these activities started surfacing in a period in Trump’s career beginning in about 2005. Recent Trump projects that also raised questions for Simpson included a Trump development in Panama, one in Toronto, and Trump’s golf courses in Scotland and Ireland, which seemed to have a lot of opaque money coming into them and were not making any money.

The numerous Russia connections got Simpson wondering about possible connections between Trump and the Russian mafia. Simpson had learned as an investigative reporter at the Wall Street Journal that the Russian mafia is more sophisticated and more global in their activities than the Italian mafia – “[the Russian mafia] understand finance a lot better” – and they often create very elaborate money laundering schemes, including fake court arbitrations, commodities deals, and “securities straits” [this was probably incorrectly transcribed during testimony and was supposed to be “securities trades”] in order to make the source of the money harder to trace: “if you can think of a way to launder money, the Russians are pretty good at it.”

The Russian mafia is also involved in legitimate American businesses and the American government. Simpson had actually left the Wall Street Journal in 2009 in part because he wanted to investigate Russian involvement in Washington DC, but the Journal had lost interest in the topic. In talking to his sources at the time, Simpson found that “everyone said the Russians are back, and they are buying influence in Washington left and right, and they are trying to bribe all these Congressmen.”

The Russian mafia is “essentially under the dominion of the Russian Government and Russian Intelligence Services. And many of the oligarchs are also mafia figures.”

Putin’s rise to power basically included gaining control over the oligarchs and the Russia mafia [this account by Simpson is consistent with William Browder’s description of Putin’s rise to power, and corroborates why Putin might have initially been supportive of Browder’s efforts to expose how oligarchs were ripping off shareholders]. Everyone in Russia essentially works for Putin, and U.S. law enforcement believes this to be true of Russian mafia figures in the United States as well.

Because of this connection between organized crime and the Kremlin, if Trump’s businesses were taking in large amounts of illicit money from Russian mafia figures, the Kremlin would certainly know about it. “If people who seem to be associated with the Russian mafia are buying Trump properties or arranging for other people to buy Trump properties, it does raise a question about whether they’re doing it on behalf of the Russian government.” Knowledge by the Kremlin of such dealings by Trump or his businesses could also be used as “kompromat,” potentially giving the Kremlin leverage over Trump, particularly once Trump began running for President, and even more so once he became President.

After the Republican Primary ended and Trump was the Republican candidate, Fusion was hired by Seattle-based international law firm Perkins Cole – whose clients include the DNC – to continue researching Donald Trump. Peter Fritsch, Simpson’s business partner at Fusion, originally spoke with Perkins Cole about doing Trump research for them. Simpson was unaware if Fritsch approached Perkins about the project or vice-versa. Simpson understood his client to be Perkins Cole, and also understood that the DNC was Perkins Cole’s client in the opposition research that Fusion was doing into Trump.

By the time Perkins Cole hired Fusion, Fusion had already explored a wealth of documents and public records on Trump, and was now at a point to “develop more specific lines of inquiry.” Because Fusion was already familiar with the information gathered thus far, Fusion decided which areas were worthy of deeper investigation: “we were the architects of the research.” Simpson asserts that having Fusion determine what to research generally ensures that a client’s preconceived ideas don’t get in the way of producing an accurate picture.

Fusion’s lines of inquiry included Trump’s overseas business dealings, labor practices in his overseas factories, his tax disputes, his bankruptcies, and who some of his business partners were. Simpson stated that “We never set out to investigate whether Donald Trump or anyone else was engaged in sexual activity for the sort of practical reason that I just didn’t think it was a useful subject to investigate. I investigate business stuff and financial crime and corruption and those kind of things. That’s my gig. So people came to us with stories that we never pursued.”

Regarding Simpson’s relationship with Christopher Steele, Simpson originally met Steele while living in Brussels, Belgium – a location that facilitated Simpson’s reporting on one of his biggest areas of interest, organized crime and corruption in the former Soviet Union. This interest had continued after Simpson left the Wall Street Journal in 2009. By then, Simpson’s Russia/ex-Soviet focus had become a rather obscure topic in an age where most U.S. media attention abroad focused on al-Qaeida and the Middle East. A mutual friend, who knew that Steele shared this interest in Russia, introduced Simpson to Steele.

Steele was paid by Fusion for his work on the Trump project. Fusion billed Perkins Cole for Steele’s time as one of the expenses of Fusion’s work (in other words, as an outside consultant, not as a full-time Fusion employee).

Christopher Steele can speak Russian, and told Simpson that when he gathers information, he is aware that he is being given some misinformation, and does his best to filter that out before passing it on to his client (in this case, Fusion).

Simpson believes that Steele did not personally go to Russia to do his research for the Trump project. Steele had not billed Fusion for any trips to Russia, and it would also be dangerous for Steele to go there, because he had been previously exposed as a former member of British intelligence who had worked in Moscow. So instead, Simpson believes that Steele hired paid subcontractors in or from Russia who could travel around and ask questions without raising suspicion. The people that those subcontractors spoke to (in bars, etc.) were not paid for information, and were likely not told that they were being asked questions as part of a paid project.

Simpson did not know who Steele’s subcontractors were, and Simpson did not thoroughly verify their information. He trusted Steele’s expertise in filtering out disinformation and Steele’s reputation for obtaining quality information. Verification by Simpson consisted of checking Steele’s information against Simpson’s knowledge of events from public documents that Fusion had researched for the case. Simpson found nothing in Steele’s reports that was contradicted by publicly available information.

While Simpson normally edits and provides analysis of field memos from a subcontractor and incorporate it into an overall report, the information provided by Steele was so shocking and concerning that Simpson just left it raw: all of the memos are exactly what Steele sent him. The 17th Steele memo came in after the election, and Fusion was not paid for it.

Fusion’s client did not direct or authorize Simpson or Steele to go to the FBI: that was Steele’s decision, which Simpson had assented to.

Going to the FBI

Because Steele’s information, by its nature, could not be conclusively and definitively proven with official documents, Simpson was not certain at first whether Steele’s information rose to the level of certainty to take it to law enforcement, but after consideration, on July 1 or 2 Simpson consented to Steele taking his info to the FBI. Describing the situation in which he and Steele found themselves, Simpson said “We threw a line in the water and Moby Dick came back, and we didn’t know what to do with it at first.”

On July 4, Steele went to the FBI, and informed Simpson of this shortly thereafter. Steele told Simpson that the FBI thanked him and said that they would be in touch if they needed to follow up. Simpson believes that Steele likely mentioned to the FBI that he had uncovered the information in the course of work for Fusion GPS on behalf of a Democratic client, but does not know for certain if that disclosure was made.

The FBI contacted Steele before the election, but did not contact Fusion before the election.

After FBI Director Janes Comey’s October 29, 2016 announcement that the FBI was reopening the investigation into Hillary Clinton, and the October 31, 2016 New York Times story that the FBI had found no ties between Trump and Russia, Steele and Simpson “were, frankly, you know, very scared for the country and for ourselves and felt that if we could give it to someone else, we should, higher up.”

After the election, Steele told a friend – a U.S. Prosecutor named Bruce Ohr – about what he had uncovered during his work for Fusion, and suggested that Ohr contact Simpson. Around Thanksgiving, Ohr did contact Fusion to get information for the Department of Justice. [According to Fox News, Ohr’s wife Nellie Ohr worked for Fusion on Trump-related issues during the summer of 2016.] [Fox News]

Concerned that the FBI was possibly being unduly influenced behind the scenes and that Russia, a hostile foreign power, was in the process of swaying the election, Steele and Simpson also decided to go to the major media again with their Trump-Russia info.

The Meeting With Journalists

The journalists that Simpson and Steele had met with in September 2016 were generally national security reporters, not political reporters, because Simpson and Steele were concerned that they had stumbled on a national security issue. At the time, Simpson assumed that Clinton was going to win the election, so there was “no urgency to it” – he just wanted reporters to start looking into it because it was concerning. He was aware that the reporters would likely not be doing a story on it before the election, because “when you get past Labor Day, people stop publishing stories that could be perceived as a late hit or an October surprise.”

And in fact there was little coverage of it.

Simpson believes that Perkins Cole would generally have known that his conversations with reporters in the summer of 2016 were informed by the Steele dossier, but he would not have needed to clear every such conversation with Perkins Cole.

Regarding Buzzfeed getting the Steele dossier, Simpson said (under oath) “Well, to just put it on the record, we were not the ones that gave this document to Buzzfeed, and I was not happy when this was published. I was very upset. I thought it was a very dangerous thing and that someone had violated my confidences.” Simpson said that he had his suspicions about who might have passed the dossier to Buzzfeed, but would not share that speculation in his testimony.

Republicans asked Simpson if he believed that, based on the evidence that he and Steele had gathered, Simpson “could conclusively say as fact that the Russian Government and the Trump Campaign were colluding with each other to beat Hillary Clinton.” Simpson said no, and that even with information publicly known now, such an assertion cannot be made, but since the election, there has been a clear pattern of secretive contacts and other odd behavior that “supports the broad allegation of some sort of an undisclosed political or financial relationship between the Trump Organization and people in Russia.”

Trump’s Russian Connections

In Simpson’s deeper research of Trump associates, he found more key Russian connections, including:

  • A Trump-linked Russian linguist named Sergei Millian (aka Siarhei Kukuts – his name before moving to Atlanta). Millian ran the Russian-American Chamber of Commerce (Russians have used such groups as intelligence operations), and claimed to have worked for the Russian Foreign Ministry in the past. He boasted of being an exclusive agent for Trump in Russia, and claimed to have sold hundreds of million of dollars in Trump properties to Russians. He was also connected with Russotrudnichestvo, believed by the FBI to be a front for the Russia’s foreign intelligence agency SVR. Millian was also linked to Trump’s lawyer, Michael Cohen, who appeared to have a lot of connections in the former Soviet Union and to Russian organized crime figures in New York and Florida.
  • Around 2003/2004, Trump was having trouble getting bank loans for buying or developing property, but was able to get credit if he could show that he had already pre-sold a certain percentage of units. Russians were willing to vouch for those pre-sales. For a project in Panama, a number of Russian gangsters agreed in advance to purchase condos there, which enabled Trump to get a bond from Bear Stearns. In addition to getting funding, the goal of such “pre-sales” was to hook in additional legitimate condo buyers who would believe that the project already had a lot of committed interest from other buyers. In Panama, the alleged Russian buyers signed paperwork, but never paid. Simpson believes that the project was built, but went “belly up.” A similar arrangement with pre-sales to Russians took place with Trump’s Toronto project.
  • The Agalarovs (who organized the Trump Tower meeting) appeared to be associated with people involved in major money laundering activity in New York in the 1990s. The Agalarovs had come to the United States from Russia around the fall of the Soviet Union, during which period, many powerful Russians came to the United States to launder money.
  • Based on what Simpson knows about the Agalarovs and Russian intelligence, he now believes that it is reasonable to assume that the Trump Tower meeting, organized by Aras Agalarov, was part of a Russian intelligence operation.
  • The Kushners are ethnic Russian and have a number of connections with Russians who immigrated to New York in the 1970s during the Refusenik era.
  • Howard Lorber, a real estate investor who did a lot of deals in Russia when things were fairly “wild” after the fall of the Soviet Union, is someone who Trump considers a good friend. Lorber and Bennett LeBow “introduced Trump to Russia.”
  • Trump had been to Russia a minimum of 4-5 times since the late Soviet years. Simpson found it odd that Trump made a number of “opaque” trips to Russia without coming back with a deal. Simpson initially thought that perhaps Trump’s lawyers were preventing him from going through with any deals out of concern that he would be violating the Foreign Corrupt Practices Act (FCPA), which makes it unlawful for U.S. citizens to bribe foreign government officials to get business. Simpson later concluded that money was actually coming out of Russia and being invested in Trump’s properties in the U.S. and elsewhere.
  • Simpson believed that Felix Sater, a friend of Trump, had connections to Russian organized crime. Simpson also believed that Sater’s company, Bayrock – which developed the Trump Soho Hotel – was involved in “illicit financial business activity and had organized crime connections.” Simpson had also noticed a general shift from Trump being associated with Italian mafia figures early in his career to Russian mafia figures starting in the 1990s. Notably, despite Sater’s involvement with developing Trump Soho and having an office in Trump Tower, Donald Trump has said that he is not sure that he would recognize Sater if he saw him.
  • Trump Jr. had gone to Russia a number of times, and had also gone to Kazakhstan for reasons that could not be determined. He had also gone to Latvia.
  • Regarding Dmitry Rybolovlev, the Russian oligarch who had inexplicably bought a run-down Palm Beach mansion from Trump for over twice what Trump had paid for it just two years earlier, Simpson had initially believed that that transaction was part of an overall pattern of excessive spending by Rybolovlev in order to prevent his ex-wife from accessing his money. However, Simpson later learned that Rybolovlev was closely connected to Igor Sechin, described by Simpson as “Putin’s No. 1 compadre in the kleptocracy.” Sechin apparently helped Rybolovlev leave Russia with billions of dollars.

Simpson’s conclusions about Trump possibly being involved in organized crime resulted from a large amount of factual evidence that was suggestive of an organized crime connection. However, due to Simpson’s lack of legal authority to subpoena people, etc., his conclusions not completely provable through documents and data.

Simpson’s Suggestions for Further Investigation

Simpson was asked for his thoughts on areas that the House Intelligence Committee should explore further. His response included:

  • Records (potentially subpoenaed if necessary) from banks, real estate agents, and title companies. Simpson had not gone after bank records because doing so would be illegal due to financial privacy laws, and because he did not have governmental subpoena power. Such records could help determine if Trump properties had been used for money laundering, which Russia could be using to blackmail the President.
  • Of particular interest would be Deutsche Bank’s records related to the characters involved. [Deutsche Bank had been one of the only financial institutions willing to loan money to Trump after he filed for bankruptcy.] [Business Insider]
  • The possibility of an “unacknowledged relationship between the Trump people and the UKIP people and that the path to WikiLeaks ran through that.”
  • A U.S. think tank called Center for the Public Interest, as well as it’s President Dimitri Simes, who Simpson said is believed to be a Russian agent.
  • Russian intelligence defectors living in the United States: ask what they think is going on.
  • The travel records of people in Trump’s circle.
  • The “Manafort-Stone-Trump relationship.” Roger Stone and Manafort worked in Ukraine for some “bad guys” with Arthur Finkelstein around 2005-2006. Finkelstein went on to work for pro-Putin Prime Minister of Hungary, Victor Orban.
  • Irakle Kaveladze, a Russian who was at the Trump Tower meeting. Simpson believes that Kaveladze and the Agalarovs have been involved in money laundering since the 1990s, and have laundered KGB money.
  • A couple weeks in August 2016 when Trump lawyer Michael Cohen, Ivanka Trump, Jared Kushner, and Donald Trump were in the Hamptons. Dmitry Rybolovlev’s plane was close by, and Ivanka and Jared disappeared for a few days. Rybolovlev’s plane landed in Dubrovnik (Croatia), on August 12, and Jared and Ivanka reappeared in Dubrovnik. “There had been rumors of meetings between Trump people and Russians on yachts off Dubrovnik.”
  • The relationship between Jared/Ivanka and Roman Abramovich, a Russian billionaire.
  • A female attorney in Florida [whose name Simpson could not recall during testimony] who used to work for Gazprom, had ties to Michael Cohen, and played some role in distributing Russian pension payments.
  • The oligarchs associated with the school in Russia where Carter Page spoke in July 7, 2016. Simpson believed that a Russian intelligence agent named Evgeny Buryakov had tried to recruit Carter Page, and that Page had been a long-time target of Russian intelligence.
  • Alex Shnaider, a Russian-born Canadian national who was a partner of Trump in developing Trump International Hotel and Tower in Toronto. Simpson says that Shnaider’s father-in-law, Boris Birshtein, was important in the history of the alliance between the KGB and the Russian mafia, and managed the KGB’s offshore funds after the fall of the Soviet Union, mainly at Romania-based Raiffeisen Bank.

The Intersection of Prevezon and Trump

Questions inevitably were asked of Simpson about his having worked with Natalia Veselnitskaya, the Russian lawyer who met with Trump Jr., Paul Manafort and Jared Kushner at Trump Tower.

Simpson never shared any of Christopher Steele’s info with Natalia Veselnitskaya or even with most of his own staff at Fusion. None of the info that Fusion used in its Trump research came from Veselnitskaya.

“I would certainly agree with the observation that for these matters to have intersected in the way that they did is, you know, remarkable. And it caught me totally by surprise, and I have spent a lot of time thinking about what it means, if it means anything.”

Miscellaneous information:

  • Simpson found that Trump estimated his property values very low for tax purposes. However, Simpson believed that Trump was not low-balling to save money, but was in fact giving an accurate record of those property values.
  • Simpson believed that Nigel Farange went to the Ecuadorian Embassy more than the one time reported in the press and provided data to Julian Assange on a thumb drive.
  • In one of Steele’s reports, Simpson learned that the Kremlin’s the U.S. Presidential election operation was run by Sergei Ivanov, a former KGB agent.
  • “Putin seems to be very interested in the Jewish diaspora,” ie, Jewish Russians who have emigrated to other countries.
  • “The Orthodox church is an arm of the Russian state now.” A lot of senior church officials are ex-KGB, and they use the church as a way to move money around.
  • Russia has been working on infiltrating “soft” conservative organizations, including the NRA. Alexander Torshin and Maria Butina were names that came up.
  • Nobody asked Simpson to research Hillary Clinton in 2015 or 2016, but she came up in the course of some of his investigative work. Simpson said that nothing in his research into the Clinton Foundation was relevant to the Russia investigation.
  • Simpson was asked if someone had been killed as a result of the information in the Steele dossier, and Simpson said that that was not the case. This contradicted a statement by Simpson’s attorney, Levy, during the Senate Judiciary testimony.
  • U.S. Rep. Adam Schiff (D-CA) mentioned that Republicans on the Committee are not letting Committee Dems in the loop on documents that are being requested from witnesses, etc.
  • Simpson was asked if he was currently being paid by anyone to continue the Trump research. He refused to answer.

Analysis

Simpson’s testimony about Fusion’s Trump research provides a wealth of leads for journalists and law enforcement to pursue, and seems to make abundantly clear that Trump’s statement that “I have nothing to do with Russia” is false.

If Simpson’s research is accurate, it is well within the realm of possibility that Donald Trump was knowingly or unknowingly involved in money laundering during his real estate career, and in particular, money laundering for Russian oligarchs and Russian mafia figures. Because of the interconnectedness in Russia of the mafia, the oligarchs, and the Kremlin, it is likely that such activities would have come to the attention of Vladimir Putin, who would no doubt be eager to use such “kompromat” as blackmail fodder/leverage over the President of a country that Putin viewed as responsible for the fall of the Soviet Union. It follows that Putin would be supportive of such an individual’s 2016 Presidential candidacy, knowing that he could make use of such an individual in the Oval Office to sow discord and chaos, and to undermine the foundations of America’s institutions.

A particular highlight of Simpson’s testimony was the interactions with the FBI. Steele had brought the information from his first memo to the FBI in early July, 2016, after which there were apparently months that Simpson and Steele had no idea if the FBI had done anything with that information. In mid-late September, the FBI asked Steele for all of his Trump-related research, and Steele provided it, again, not knowing what, if anything, was going to be done with it. Then, less than two weeks before the election, FBI Director James Comey broke with precedent and policy to announce on October 28 that he was reopening the investigation into Hillary Clinton’s e-mails, and three days later, on October 31, Simpson and Steele read in the New York Times that the FBI had been investigating Trump for Russian connections but had found nothing – a conclusion that completely contradicted the information that Steele knew that he had given to the FBI.

At that point, one can imagine the fear and confusion that Simpson and Steele must have felt. They had provided the FBI with a large amount of credible information pointing to a huge, active operation by a hostile foreign power (with a history of deep government corruption, organized crime, and political assassinations) to support one U.S. Presidential candidate over the other. Yet bewilderingly, the FBI seemed to be publicly denying that any such operation was happening, and was instead taking unprecedented actions that would almost certainly undermine the campaign of the candidate that Russia hoped to defeat. At that moment, it certainly must have crossed the minds of Simpson and Steele that the FBI could possibly be somehow complicit in Russia’s operation or complicit with Trump’s Campaign. Realizing that the FBI knew the identities of the two men who could expose the operation – Simpson and Steele – must have resulted in an absolutely terrifying time for those two men.

Of course, the obvious questions concern the intersection of the Trump investigation and the Prevezon case. The fact that Fusion was doing paid work as part of opposition research campaign against Trump (with attention to Russia) at the same time that the Russian lawyer of Fusion’s client on another project met with Trump Campaign officials at Trump Tower to pass on research gathered by Fusion seems like an incredible coincidence. My gut tells me that it is exactly that – a coincidence – but it is certainly enough to reasonably warrant some of the “conspiracy theory” lines of questioning engaged in by House and Senate Republicans.

 

Another area that seems odd is the chance meeting between British citizen Sir Andrew Wood and U.S. Senator John McCain (R-AZ) after the election. According to a U.S. Representative questioning Simpson, Wood was an associate of Orbis, the company that Steele worked for. Wood bumped into McCain at a security conference in Nova Scotia and notified him of Fusion’s Trump investigation.

It seems reasonable to assume that Steele was the one who had informed Wood about the Trump research. Not knowing Wood’s role at Orbis, it may also have been reasonable for Wood to have been attending a security conference. However, the fact that Rinat Akhmetshin (Natalia Veselnitskaya‘s hired lobbyist who had been at the Trump Tower meeting) was on the roster of attendees at that same conference seems highly coincidental. Akhmetshin might have seen the event as a place to meet U.S. legislators and lobby them on behalf of HRAGI, but his surfacing at this particular event under these particular circumstances raises additional questions.

Despite these oddities, Simpson truly comes across as a credible and forthcoming witness, and it is difficult to be suspicious of him given how thoroughly and readily he responded to questions. At times, he seemed to be pushing back against his lawyers’ advice because he wanted to give even more information. It is also difficult to believe that the information that Fusion uncovered about Donald Trump does not point to an undisclosed history of potentially illegal or unethical activities between Trump and the Russians, knowledge of which would almost certainly have made its way back to the Kremlin for blackmail purposes.

– rob rünt


Read more of this special series:
The Trump-Russia Web


 

 

The Trump-Russia Web – Part 10: Glenn Simpson and the Prevezon Case

The Trump-Russia Web – Part 10: Glenn Simpson and the Prevezon Case

Glenn Simpson and the Prevezon Case


Disclaimer: This is an in-depth look at the Prevezon-related parts of Glenn Simpson’s testimony before the Senate Judiciary Committee on August 17, 2017 and before the House Intelligence Committee on November 14, 2017. The information below was presented by Glenn Simpson in his testimony, and is not being represented here as either fact or as the opinion of the webmaster unless specifically stated. All statements and assertions should be read as if prefaced by “Glenn Simpson states that …” Any content that I add will be surrounded by [brackets] and will likely include a link or reference to the source.


Simpson_Glenn-CROP
Glenn Simpson (Photo: ABC News)

What is the narrative that Glenn Simpson told the Senate Judiciary Committee about his Prevezon work?

(Full Transcript of 10-Hour Testimony – 312 pages)

Natalia Veselnitskaya is the attorney for Cyprus-based investment company Prevezon Holdings. She is also the Russian attorney who met with Donald Trump Jr., Paul Manafort and Jared Kushner at Trump Tower.

[In 2013], Veselnitskaya hired U.S. law firm Baker Hostetler to help defend Prevezon against charges by the U.S. Department of Justice that Prevezon had been engaged in money laundering in the United States. Baker Hostetler hired Glenn Simpson’s firm, Fusion GPS, for research to help support Prevezon’s case. Fusion’s involvement in the case was directed by Baker attorney/partner Mark Cymrot.

Baker Hostetler is a well-regarded conservative law firm. They have a legal obligation to research who their clients are to ensure that the firm is not accepting payments from a foreign government. Simpson therefore assumed that Baker had done the work to make that determination before Fusion was brought into the case.

Payment of Baker Hostetler in the case was made by Prevezon, and was directed by Veselnitskaya. Baker Hostetler in turn paid Fusion. There were no direct payments to Fusion by either Prevezon or Veselnitskaya. To assist in gathering Russian language documents and locating witnesses, Fusion hired Edward Baumgartner, a Russian-speaking consultant. Baumgartner would later work on the Trump investigation for Fusion after the Prevezon case ended.

According to Prevezon, the money laundering allegations against them originated from a high-level Russian organized crime figure, Demetri Baranovsky, who had been posing as an anti-corruption campaigner in Russia and blackmailing various Russian companies. Baranovsky had threatened to expose Prevezon for money laundering. Prevezon had notified the Russian authorities of the threat, and Baranovsky was prosecuted and jailed for blackmail.

Veselnitskaya had been Prevezon’s lawyer in that case and had detailed knowledge of it. Baranovsky’s money laundering allegations against Prevezon were brought to the attention of the U.S. Department of Justice by investment manager William Browder. Glenn Simpson had met Browder years earlier as a reporter at the Wall Street Journal. At that time, Browder had spoken highly of Putin, and insisted that Putin was not corrupt at all – an opinion which Browder had thoroughly reversed by the time that he had contacted the DOJ about Prevezon. The DOJ investigated Browder’s allegations against Prevezon, and took the issue to trial.

Through its research for Baker Hostetler, Fusion GPS determined that Baranovsky had in fact been jailed for blackmailing. When Fusion attempted to interview Browder about the allegations, Browder refused. Baker Hostetler tried to subpoena him, but Browder denied having any presence in the U.S., and therefore claimed not to be legally obligated to respond to a subpoena. It seemed odd to Simpson that Browder would feel strongly enough about Prevezon to tip off the DOJ, but would be unwilling to testify to any of his accusations under oath. Fusion also gradually found Browder’s dealings in Russia to raise an increasing number of questions.

Fusion began researching Browder to help Baker Hostetler compel him to testify under oath in court about his role in the case. In 2014, Fusion determined that Browder’s hedge fund, the Hermitage Fund, was registered in Delaware, proving that he did in fact have a U.S. presence. Shortly after Fusion made this discovery, Browder took his name off the registration, claiming that it had been there by mistake.

Browder also claimed to own no property in the U.S., but Fusion discovered that Browder had a $10 million mansion in Aspen, Colorado, registered under the name of a shell company. Browder also owned vehicles registered at that Aspen address under his own name.

When Simpson learned that Browder would be speaking at the Aspen Institute in the summer of 2014, Fusion saw it as an opportunity to serve him with a subpoena. They hired two subcontractors to serve the subpoena in the Aspen Institute parking lot. Browder refused the subpoena, ran back to his car, and drove back to his mansion. Browder later said that the subpoena had been improperly served because he had nothing to do with the United States, and the subpoena was also improper because it was for a case in New York, but had been served in Colorado. Browder also stated that he had thought that the two men approaching him to serve the subpoena were KGB assassins coming after him.

Fusion continued its research into public records on Browder and learned that he had a number of shell companies in Cyprus and other tax havens around the world. Simpson believed that Browder was using these shell companies to channel money into Russia and to hold Russian securities. When the Panama Papers came out in 2015, Fusion also learned that in 1995, Browder had incorporated an offshore shell company in the British Virgin Islands, and had later transferred the shares from the Hermitage Fund to this shell company.

According to Simpson, “one of Putin’s primary rules for business was you can do a lot of things, but you’ve got to pay your taxes.” Simpson believes that Browder’s tax evasion in Russia was how Browder began to fall out of favor with Putin. Putin’s government prosecuted some of Browder’s shell companies and forced Browder to make a massive tax payment in 2006 [in the amount of $230 million].

During the course of Fusion’s investigation in the Prevezon case, Fusion GPS and Baker Hostetler shared information back and forth, with Baker being the central repository for information. Simpson trusted the integrity of the information that he received from Baker, due to the quality of their information on past projects. Fusion did not do any research to verify the information from Baker because “that would have been an enormous task and it would have made no sense,” since Baker was the client for whom Fusion was gathering and researching information. [Note: this means that it is possible that some of Baker’s info came from Prevezon or from Veselnitskaya without being verified.]

Baker Hostetler directed Fusion to be available as an information source to answer reporters’ questions and to actively contact the press to encourage coverage of the Prevezon case. Simpson recalled providing information to Bloomberg, New York Times, Wall Street Journal, Legal 360, Financial Times, NBC, and probably Reuters, Politico, and New Republic.

William Browder turned out to be an “especially aggressive media self-promoter and promoter of his story,” so most of Fusion’s interactions with the press were reactive – responding to news outlets pursuing negative stories about Prevezon based on the story that Browder had already told the press: “a lot of what we were doing was simply responding to his wild allegations, unsupported wild allegations.” Simpson would raise questions about Browder’s credibility, pointing out to reporters that Browder was unwilling to testify to his statements in court under oath, and that he ran whenever Fusion tried to subpoena him.

Simpson peripherally knew Rinat Akhmetshin (former Russian intelligence officer, now an American lobbyist hired by Natalia Veselnitskaya to help persuade Congress to repeal the Magnitsky Act). Simpson had originally met Akhmetshin years earlier while working at the Wall Street Journal covering some stories about Kazakhstan. Akhmetshin had mentioned at that time that he had had a low level position in Russian intelligence, but Simpson was not aware of any current connections between Akhmetshin and Russian intelligence or the Russian government. In light of recent new reports, Simpson is interested to know if Akhmetshin is connected to the Russian government. Simpson was aware that Akhmetshin periodically still went to Moscow.

Akhmetshin had never hired Fusion or vice versa. Akhmetshin attended a handful of the Prevezon meetings at Baker Hostetler, but Simpson was unclear on what his role was. Baker directed Fusion to pass some of its research on to Akhmetshin, and that information was likely used in turn to help Akhmetshin in his anti-Magnitsky lobbying efforts for Veselnitskaya through her organization, HRAGI.

Ed Lieberman, an attorney specializing in international taxes, was hired by Baker Hostetler to look into tax evasion issues by William Browder and Hermitage Capital. Simpson believed that Lieberman had known Rinat Akhmetshin from college. Lieberman was now also working with Akhmetshin to lobby Congress to repeal the Magnitsky Act. Simpson was not aware of any ties between Lieberman and the Russian government.

During the course of the case, Simpson met Veselnitskaya several times. Initially, he communicated with her through Baker Hostetler about Prevezon’s extortion case against Baranovsky. Baker attorney Mark Cymrot had mentioned to Simpson that Veselnitskaya had been a prosecutor in Russia Simpson had no knowledge of her possibly being an agent for the government of Russia or Russian intelligence.

After the initial communications, Simpson saw Veselnitskaya in courtrooms and at a small handful of dinners, most of which were organized by Cymrot. Simpson spoke very little with Veselnitskaya beyond simple cordialities, because she does not speak English and he does not speak Russian.

One of the dinners was in New York on June 8, 2016, and was a dinner for people working on the Prevezon case. Veselnitskaya was at that dinner. Baker attorney John Moscow may have been there as well.

The next day, June 9, Simpson attended a court hearing in the Prevezon case. Veselnitskaya was there, possibly with Rinat Akhmetshin and translator Anatoli Samochornov. After the hearing, Simpson met with some PR people from Weber Shandwick, and then went home to his family.

[That same day, June 9, Veselnitskaya, Akhmetshin, Samochornov and others met at Trump Tower in New York with Trump Jr., Manfort and Kushner. The stated purpose of that meeting had been to provide the Trump campaign with dirt on Hillary Clinton. According to Trump Jr., Veselnitskaya just wanted to talk about Russian orphans. Simpson had no awareness of that meeting at the time.]

On June 10, Mark Cymrot held a social dinner at Barcelona restaurant in Washington DC for a group of his friends. Simpson and his wife attended the dinner, and Veselnitskaya was there as well. Simpson was sitting at the opposite end of the table from Veselnitskaya, and there was “not a lot of chit-chat” between them due to the language barrier and physical distance.

After news of the Trump Tower meeting broke in the New York Times, Simpson spoke with others working on the Prevezon case (not Veselnitskaya or Akhmetshin), including Mark Cymrot, Ed Baumgartner, and Baker attorney Paul Levine, and they too were very surprised about the Trump Tower meeting. Simpson wondered if some of the information shared there had been information that he had gathered for the Prevezon case.

Simpson’s perception of Veselnitskaya was that she was “a very smart and ambitious lawyer, but not like a big political player in the Kremlin.” He recalled her regularly having problems with her visa being accepted to get into the United States.

Simpson recalls meeting Denis Katsyv, the owner of Prevezon, at a handful of meetings or client dinners, but they did not speak much – again due to the language barrier. Prevezon was described to Simpson as Baker Hostetler’s client, and Denis was introduced as Prevezon’s owner. Cymrot told Simpson that Baker had already looked into Katsyv and determined that he was a legitimate businessman who invested in real estate. Simpson accepted this assessment as credible due to the reputation of Baker Hostetler and his past dealings with them. Simpson never met Denis’s father, Pyotr, a Russian government official, and did not know about him until Fusion had to start responding to Browder’s accusations.

Simpson acknowledged knowing Chris Cooper, a public relations person [at the Potomac Square Group] who used to work at the Wall Street Journal. Simpson would occasionally refer PR work to Cooper, and encouraged Baker Hostetler to hire him to do PR work for Prevezon during the money laundering trial.

Cooper created what Browder alleges is a “fake documentary” about Browder and Magnitsky. When Cooper sought to screen the film, Browder hired an aggressive attorney and threatened a libel lawsuit against anyone offering to show the film. Newseum – a Washington DC museum dedicated to journalism and the First Amendment – was not intimidated by Browder and showed the film on June 13, 2016, just days after Veselnitskaya’s meeting at Trump Tower.

Simpson was unclear whether Prevezon or HRAGI was behind the showing, but Fusion GPS provided names of journalists and others to be added to the invitation list, and Simpson may have personally invited some journalists as well, because the film questioned Browder’s credibility, and Browder’s media efforts had been hampering Fusion in their work for Baker on the Prevezon case.

Simpson stated that he was only peripherally involved with HRAGI and did not recall any interactions with the organization. Simpson acknowledged knowing and having lunch once with Lanny Wiles, a well-connected Republican consultant and lobbyist who may have been working for Prevezon or HRAGI.

Simpson was only vaguely aware of HRAGI’s lobbying efforts. He did recall Akhmetshin or Cymrot mentioning a meeting with Paul Behrends, a Congressional aide to U.S. Representative Dana Rohrabacher (R-CA). [Rohrabacher has been an outspoken defender of Russia and a loyal Trump ally, and Behrends, the main contact on Capitol Hill for Veselnitskaya and Akhmetshin, has an interesting history in Washington DC: in a matter of just a couple years, Behrends went from being a fierce hawk against Russia to being a cheerleader for them] [Politico]. There was also e-mail evidence of a meeting with U.S. Representative French Hill (R-AR). Simpson did not believe that HRAGI or Prevezon were connected with the Russian government.

Simpson did not personally know Emin Agalarov, Aras Agalarov, or Rob Goldstone, although he knew who they were. [Goldstone arranged and attended the Trump Tower meeting, allegedly prompted by the Agalarovs] Neither Simpson nor Fusion had ever paid or been paid by any of them, and Simpson did not believe that any of them were working with Prevezon.

Since the election, there have been attempts to hack into Fusion GPS’s communications system. Simpson’s attorney Levy, present with Simpson during his testimony, stated that Fusion has received death threats. When Simpson was asked a question about his sources, Levy said that “Somebody’s already been killed as a result of the publication of this dossier and no harm should come to anybody related to this honest work.”

Simpson was asked a number of questions pertaining to names of his clients, communications with his clients, and naming sources of information – topics which the Senate Judiciary Committee had apparently agreed in advance not to go into. At the advice of his attorney, Simpson declined to answer those questions.


What did Glenn Simpson tell the House Intelligence Committee about the Prevezon case that he did not already say in his Senate testimony?

 (Full Transcript of 6-Hour Testimony – 165 pages)

Baker Hostetler is one of Fusion GPS’s oldest clients. Fusion has done 4-5 projects for them. Simpson describes them as a Republican-oriented law firm of “very serious, sober, reputable attorneys.”

Regarding the Prevezon case, Baker approached Fusion in late 2013 to determine whether it was provable that money from a specific fraud in Russia had gone into some specific real estate projects in New York. Baker attorney John Moscow led Simpson through the financial information of the case, and persuaded Simpson that the money trail between the Russian fraud and New York properties was not clear. Baker retained Fusion in early 2014.

The first thing that Fusion did was to investigate Prevezon. Natalia Veselnitskaya was introduced to Simpson in mid-2014 as a former Russian government lawyer who had retained Baker on behalf of Prevezon. She had told Baker Prevezon’s story about being blackmailed by Russian organized crime figure Baranovsky, who had been jailed for extortion. Baker passed Veselnitskaya’s story to Fusion. Fusion checked the story out, and it appeared to be true.

Fusion then wondered how allegations from a jailed criminal in Russia had gotten to the U.S. Department of Justice. Baker subpoenaed an ICE agent who informed them that they had gotten the information from William Browder.

In addition to Browder’s mansion in Aspen, Colorado, Fusion also uncovered that he had a house in New Jersey. In addition to trying to serve Browder with a subpoena in Colorado, Fusion tried to serve him another time, and then again in New York outside the Daily Show. That attempt at a subpoena was videotaped, and Browder ran down the street without taking the paper.

Simpson’s House testimony contained a few miscellaneous details elaborating on his previous Senate testimony:

  • Ed Baumgartner, who worked on both the Prevezon case and the Trump project, traveled to Russia with the lawyers as part of his work on the Prevezon case. Simpson did not go to Russia.
  • In researching Denis Katsyv for the Prevezon case, Simpson did not find Katsyv to “have a media profile of an oligarch” – no mafia connections, no meetings with Putin, no denial of visas to the U.S. However, Denis’s father, Pyotr Katsyv, is a Russia government official.
  • Browder’s shell companies based in Cyprus likely included Giggs Enterprises Limited, Zhoda Limited, and Peninsular Heights Limited.
  • The Russians regularly do fake news stories on Browder and have even done a documentary accusing him of murder.
  • At the Prevezon hearing on June 9, 2016, the day of the Trump Tower meeting, former U.S. Attorney General Michael Mukasey argued on behalf of Prevezon as their appellate lawyer.

Much of the House Intelligence Committee’s Prevezon-related questioning focused on three things: the period around the time of the Trump Tower meeting, specific information from Simpson’s Prevezon research, and the flow of that information.

According to one of Simpson’s House Intelligence Committee questioners, when Veselnitskaya was at the Trump Tower meeting on June 9, 2016, she presented information about William Browder and the Magnitsky Act. Simpson had read news accounts of that.

Regarding Simpson’s own activities on June 9, after attending the Prevezon hearing (where Veselnitskaya was present), Simpson met with Shandwick public relations “at a hotel somewhere” to explore having them do PR work for the Prevezon case.

The next time that Simpson saw Veselnitskaya was at the dinner in Washington DC organized byBaker attorney Mark Cymrot. During this second testimony, Simpson could not recall if the dinner was on June 10 or 11.

Committee questioners showed Simpson an October 27, 2017 New York Times article, “Talking Points Brought to Trump Tower Meeting Were Shared With Kremlin” [New York Times] as well as a memo from the office of Yuri Chaika, Russia’s Prosecutor General. According to the Times article, Veselnitskaya’s Trump Tower talking points largely matched the memo from Yuri Chaika – in some cases paragraph for paragraph.

[The e-mail to Trump Jr. that sparked the Trump Tower meeting had promised information on Clinton from the “Crown Prosecutor of Russia.” Journalists and others had initially interpreted this to be an exaggerated/inaccurate description of Veselnitskaya, but it was more likely referring to Chaika.]

[Veselnitskaya’s talking points (New York Times) focused on Browder and the Magnitsky Act, but also included allegations that two major Democratic donors – New York billionaires the Ziff brothers – had committed fraud and tax evasion by illegally investing through William Browder’s company and not paying taxes (amounting to millions of dollars) to Russia on the investment. Putin claimed that the U.S. government was ignoring these allegations against the Ziff Brothers because they were major political donors. Veselnitskaya asserted that the alleged tax evasion tainted any potential donations to Clinton from the Ziff brothers. This was her “dirt” on Clinton.]

[Chaika’s memo had been given to pro-Russia U.S. Representative Dana Rohrabacher (R-CA) during an American Congressional delegation to Moscow in April 2016. Veselnitskaya and Chaika were known to have communicated in the months before the June 9th Trump Tower meeting, and worked together to provide the info on Browder and the Ziff brothers to Rohrabacher. Veselnitskaya later got the same info to U.S. Representative French Hill (R-AR). Veselnitskaya then asked Aras Agalarov to help her set up the meeting at Trump Tower to present the information.]

Simpson’s research on Browder had also included information on the Ziff brothers. Baker Hostetler would have given that information to Veselnitskaya for the Prevezon case.

Simpson did not believe that Veselnitskaya was sharing that information with the Kremlin or acting on behalf of the Russian government. Simpson did not recall if she had ever told him that she knew Prosecutor General Yuri Chaika, but she “may have alluded at times to giving information to the [Russian] government for purposes of tax law enforcement” to recover unpaid taxes.

Simpson acknowledged that, because Browder was antagonistic toward both Prevezon and Putin, Putin would likely have been more supportive of Prevezon’s side in the Prevezon case.

As an explanation for how Fusion’s research ended up being used in the Trump Tower meeting, Simpson said:

“In retrospect, I think what might have happened was that – so when the case started it wasn’t about William Browder. It was about a technical argument about whether you could prove that money from something in Russia went into this real estate development. And so it didn’t have a political dimension to me particularly, it was a technical argument. And that is how the case was introduced to me, and the fight was going to be over what the bank records showed.

“So it was a reasonably interesting case, but not very potentially controversial. But as we went into discovery, you know, the discovery trail led to Vladimir Putin’s biggest critic [William Browder].” [This ultimately resulted in Simpson doing work that could be repurposed to oppose the Magnitsky Act.]

“My view is that when we started producing actual information in court that was embarrassing to [Browder], and tended to raise questions about [Browder’s] activities in Russia, that [Veselnitskaya and ultimately Chaika and Putin] opportunistically began to exploit that.

“And that would fit with my view of Ms. Veselnitskaya as well, which is that she viewed the success that we had in finding certain kinds of information as a ticket to political advancement in Moscow. There is only one way up in Russia, and that is to do something that impresses Vladimir Putin.” Developing a relationship with a potential President of the United States would also be a way to impress Putin.”

Simpson was proud of the information that he had gathered in the Prevezon case, but disagreed with the pro-Putin slant that Veselnitskaya added to it in her Trump Tower talking points.

Asked if it bothered him that the information from his research had been used in what he himself at one point in his testimony had described as a Russian Government-directed operation, Simpson stated:

“It all happens to be accurate. And so, you know, if someone used this research that they, you know, commissioned through a law firm for a legitimate legal purpose, took it and repurposed it in some other way, I can’t say as I am upset by that. I must say in my business, right, I am in the information business, so when people commission research from you, it becomes their property when you are finished with the research, when you give it to them. So if they decide to go and use it for something else, I mean, that’s just beyond my control. So I will add that, you know, as someone who is not a fan of Vladimir Putin, I don’t take any great – I certainly am not happy to do anything that anyone would think was helping Vladimir Putin. And so to the extent that this has subjected me to an unfair accusation that I was engaged in some kind of Kremlin operation, I find that very regrettable.”


Analysis

Simpson’s testimony sharply contradicts some of Browder testimony, and paints Browder as a more complex figure than Browder’s portrayal of himself as a wrongly persecuted anti-corruption crusader. Browder’s various shell companies in tax havens around the world muddy the waters of Browder’s story considerably. Was Browder’s $230 million in taxes in fact paid to the Russian government, as Browder claims, and then stolen by the government and laundered overseas for the benefit of Putin and others (creating a pretext for turning Browder into a fugitive)? Or was Browder truly guilty of tax evasion, using his shell companies to hide the money, as the Russian government accused him of? Or is the answer something in between? Regardless, one comes away from Simpson’s testimony with a more multi-dimensional understanding of Browder.

Browder’s evasiveness and unwillingness to testify under oath are somewhat consistent with Browder’s story. If Browder truly is considered by Putin to be a major enemy – a likelihood that seems to be agreed upon by all – it is reasonable for him to be fearful when seeing two strange men approaching him in a Colorado parking lot or on the streets of Manhattan, and it is reasonable for him to be cagey about putting himself in a well publicized location like a courtroom, where he could potentially be assassinated upon entering or leaving. According to accounts of Browder’s Senate testimony, he showed up flanked by two large bodyguards. [Esquire]

Yet Browder has also willingly spoken at publicized events, like his appearance at the Aspen Institute, so his wariness and overabundance of caution seems to be selective.

The major takeaway from Simpson’s testimony about his Prevezon work, however, is that information gathered by Fusion GPS ended up being used by a likely Russian operative, Natalia Veselnitskaya, and ultimately by Russian Special Prosecutor Chaika, to further the interests of the Russian government. That was how the information was used in the Trump Tower meeting, and how it was used in lobbying efforts with U.S. Congresspersons Rep. Dana Rohrobacher (R-CA) and Rep. French Hill (R-AR).

The most important question is whether or not Simpson was aware that Fusion’s research was going to be used in that way and whether or not Simpson provided the research information to someone that he knew was a likely Russian government operative.

The explanation that Simpson gives for how things evolved seems very plausible, and I personally believe it: the case started out as a normal case of technical research, Browder came up in that technical research, and behaved in an actively antagonistic yet evasive way that raised questions. Browder’s actions prompted further investigation into him and his business ties, which produced incriminating information. Veselnitskaya, recognizing the value of that information to her career in Russia, opportunistically took it to the Russian government, who began making use of her and the information to undermine the Magnitsky Act – a major personal goal of Putin’s. In such a situation, where a reputable, conservative law firm with a known track record of prudence had introduced Simpson to Veselnitskaya merely as a lawyer, it was reasonable for Simpson to take that initial understanding of who she was at face value, and to not anticipate the possibility that during the course of the case, she would become an operative for the Russian government.

In general, Simpson appeared to be extremely forthcoming in both of his lengthy, voluntary testimonies, often answering questions with far more thoroughness than required, and at times even including names and dates without prompting.

However, Simpson’s haziness about the events around June 9, 2016 seems inconsistent with his detailed recollection of the events and characters of the Prevezon case (and of Trump’s background). Most notably, regarding his own actions, Simpson seemed unclear about the exact reason that he had gone home on June 9. In the Senate testimony, he said “My son’s junior prom was that night or senior prom and I was under some pressure to go home and be a dad” (p. 260-261). In the House testimony, he said “it was my son’s high school graduation. It was an event for my son’s high school graduation” (p. 121). He also said in the Senate testimony that the Washington DC dinner that he and Veselnitskaya attended was on June 10, and in the House testimony he said that it was on June 10 or 11.

This foggy recollection could be easily attributed to Simpson being more engaged in his research work than in his personal life. Yet given that his actions during this particular time period are crucial to understanding his involvement with Veselnitskaya and her Trump Tower meeting, one would think that he would have looked through his own calendar book and other records between the Senate and House testimonies so that he could give a clearer answer.

Nonetheless, it is also worth noting that in over 16 hours of testimony – 10 without having sworn an oath, then six under oath – with at times aggressive questioning, these were the only inconsistencies between his first and second testimony, and they are not even inconsistencies, but merely an inability to remember exact details of his own life from two specific days that had been over a year in the past by the time he was first asked to account for them.

– rob rünt


Read more of this special series:
The Trump-Russia Web


 

 

The Trump-Russia Web – Part 5: High-Level Summaries

The Trump-Russia Web – Part 5: High-Level Summaries

High Level Summaries


Disclaimer: All of these are summaries of the words of others. They are not being represented here as either fact or as the opinion of the webmaster unless specifically stated. All statements and assertions should be read as if prefaced by “(name of person being summarized) states that …” Any content that I add will be surrounded by [brackets] and will likely include a link or reference to the source.


William Browder’s Opening Statement

(Opening Statement to Senate Judiciary Committee – July 26, 2017)

U.S.-born William Browder was a highly successful investment manager in Russia for several years. He exposed corruption among Russia’s oligarchs, and these efforts were initially supported by Putin because it weakened Putin’s opposition. As Putin became more powerful, he started wanting a cut of any illicit money taken in by the oligarchs and the Russian mafia: Browder’s anti-corruption efforts were no longer welcome, and neither was Browder. He was falsely accused of tax evasion, and hired attorney Sergei Magnitsky to prove him innocent. When Magnitsky found evidence that supported Browder and took it to Russian authorities, he was jailed, treated harshly, and died in prison a year later. To avenge his death, Browder successfully advocated in the U.S. for the Magnitsky Act, which freezes the U.S. assets of all wealthy Russians responsible for Magnitsky’s death, including Putin. 


Natalia Veselnitskaya’s Notes

(Notes allegedly used by Russian lawyer at Trump Tower meeting)

Relations between the U.S. and Russia have become needlessly strained as a result of the Magnitsky Act. William Browder’s story that resulted in passage of the Magnitsky Act is a lie. Browder avoided paying an enormous amount of taxes in both Russia and the United States, and Sergei Magnitsky was an accomplice to his criminal activity. (As a side note, New York billionaires, the Ziff brothers – major Democratic donors – illegally invested with Browder for years, and if they donated to Hillary Clinton, that money would therefore be tainted.) The U.S. should repeal the Magnitsky Act so that relations between Russia and the U.S. can improve. Because Putin retaliated for the Magnitsky Act by banning adoption of Russian orphans by Americans, a removal of the Magnitsky Act will likely also benefit helpless orphans who have been unduly harmed by Putin’s response to the Magnitsky Act. 


Steele Dossier

(Memos developed by Christopher Steele while investigating Trump’s business ties in Russia as part of opposition research)

There appears to be a significant collaborative effort between the Kremlin and the Trump Campaign to help Donald Trump win the 2016 Presidential election. The Kremlin had extensive “kompromat” on both Trump and Clinton, and is actively engaging in cyber operations against the Clinton Campaign. Their kompromat on Trump is sufficient to blackmail him. Major Kremlin objectives appear to be to destabilize the west, achieve removal of U.S. sanctions against Russia, and weaken U.S. policies that negatively impact Russia.


Simpson Testimony #1 – Prevezon Case

(Testimony of Fusion GPS founder Glenn Simpson before Senate Judiciary Committee on August 17, 2017)

Law firm Baker Hostetler hired Simpson’s company, Fusion GPS, to research information that could vindicate their client, Cyprus-based investment company Prevezon Holdings. Prevezon had been accused of money laundering by the U.S. Department of Justice. Russian lawyer Natalia Veselnitskaya was Prevezon’s attorney, and she hired Baker to help with such a major case. During the research, Simpson discovered that William Browder – a major enemy of Vladimir Putin – was the source of the money laundering allegations against Prevezon. Browder was very evasive and reluctant to testify to his accusations against Prevezon under oath. Simpson compiled a large amount of public information on Browder that seemed to call into question Browder’s credibility. During the course of his involvement with the case, Simpson ended up at two group dinners with Veselnitskaya, both the evening before and after her Trump Tower meeting, and was also at a hearing for Prevezon with her on the day of the Trump Tower meeting. Simpson was unaware of Veselnitskaya’s Trump Tower meeting until it was reported in the news.


Simpson Testimony #2 – Prevezon Case

(Testimony of Fusion GPS founder Glenn Simpson before House Intelligence Committee on November 14, 2017)

More details that further fill out Simpson’s previous testimony, including an admission that the information from his research for Prevezon was likely used by Veselnitskaya at the Trump Tower meeting to help her argue against the Magnitsky Act and as her “dirt” on Hillary Clinton. Simpson’s research had not been intended to be used in that way, and Simpson had been unaware that Veselnitskaya might have been acting on behalf of the Russian government.


Simpson Testimony #1 – Trump Investigation

(Testimony of Fusion GPS founder Glenn Simpson before Senate Judiciary Committee on August 17, 2017)

Fusion GPS was hired by a Republican client during the 2016 Presidential primaries – and then by a Democratic client after the Republican Convention – to research Donald Trump. The goal was to learn everything about Trump, good and bad, to provide an accurate picture to the client. Early indications in the research were that Trump had connections to organized crime, particularly Russian organized crime. After exhausting public records, Simpson hired former British intelligence officer/Russia specialist Christopher Steele to see what more he could learn from his contacts in Russia. Steele was alarmed when he uncovered an apparent operation by the Kremlin to help Trump win the U.S. Presidential election. Out of a sense of professional duty, Steele reported his findings to the FBI.


Simpson Testimony #2 – Trump Investigation

(Testimony of Fusion GPS founder Glenn Simpson before House Intelligence Committee on November 14, 2017)

More details that further fill out Simpson’s previous testimony, including his and Steele’s belief that Steele’s information was not being acted on by the FBI. This belief raised deep concern between them that there was something questionable happening at the FBI, and caused them to take their information to the press.


Nunes Memo

(Document compiled by the office of U.S. Rep. Devin Nunes (R-CA))

The information used to obtain a FISA warrant to monitor communications of Trump Campaign foreign policy adviser Carter Page was illegitimate, because it’s direct basis and indirect basis were the Steele dossier – a document funded by a partisan source and therefore not credible. Its use indicates a possible campaign within the FBI and intelligence community to undermine Trump.


Read more of this special series:
The Trump-Russia Web