Deep State Secrets? Declassify the Sater Files

The outlaw Felix Sater didn’t show up last Friday for planned closed-door testimony to the House Intelligence Committee about the Russia affair. He says he overslept, he wasn’t feeling well, he’d like to reschedule. But the committee isn’t waiting. It issued a subpoena for his appearance.

Don’t hold your breath waiting for new revelations. The Moscow-born Sater is a master of the long con, a Gatsbyesque figure with known ties to organized crime, the FBI, and the CIA—and to Donald J. Trump. He’s fabulously wealthy. Or maybe he’s not. In February, he sold his 10-room house in Sands Point and shipped himself and his Porsche across the country to LA, where he’s reinventing himself again.

He entered Donald Trump’s life around 2002 with some spectacularly unsuccessful real estate deals. Before that, he was a low-level New York criminal, a tough guy from Brighton Beach, allegedly connected to Russian organized crime back in the old country. He was sent to prison for using a broken bar glass to rearrange a man’s face, then busted again for a Mafia-connected pump-and-dump scheme. He turned on his pals and cooperated with the FBI, ran into more trouble, and persuaded the CIA to take him on as an intelligence asset in Russia. He appears to have found his true calling as a government informant. The FBI and CIA say he was a very successful rat. (Read more about his past here and here.)

Sater reappeared in Trump’s orbit in 2015, reviving a foundering scheme to build a billion-dollar Trump property in Moscow just as the candidate’s improbable presidential campaign was gaining traction.

The standard media narrative of the Moscow deal is that candidate Trump did not expect to win the presidency and was reluctant to let go of a shot at a billion-dollar business bonanza. But Sater’s swaggering presence at the center of the action suggests the possibility of a more sinister counter-narrative: that someone may have been trying to lure Trump into a trap—a politically damaging entanglement with Moscow money.

“Beginning in late 2015,” the Mueller Report notes, “Sater repeatedly tried to arrange for [Trump attorney Michael] Cohen and candidate Trump, as representatives of the Trump Organization, to travel to Russia to meet with Russian government officials and possible financing partners.”

The politically suicidal proposal appears to have been swiftly rejected by the campaign. But Sater persisted. “Into the spring of 2016,” the Mueller Report notes, “Sater and Cohen continued to discuss a trip to Moscow.” Sater emails Cohen that he is trying to arrange a meeting between “the 2 big guys,” Putin and Trump.

Sater upped the ante sometime in 2016—the timeline is not clear—when he floated to Cohen the idea of giving Putin a $50 million penthouse at Trump Tower Moscow.

“My idea was to give a $50 million penthouse to Putin and charge $250 million more for the rest of the units. All the oligarchs would line up to live in the same building as Putin,” Sater told Buzzfeed, which first reported the story.

It’s “not clear whether Trump knew of the intention to give away the penthouse,” Buzzfeedreported. But it’s difficult to see news of Trump doing a $50 million deal with Putin, had it emerged during the campaign, as anything other than a death blow aimed at the candidate.

After the election, Sater transitioned to cooperating with the Mueller investigation. A footnote to the Mueller Report notes that Sater was interviewed twice under a proffer agreement. And the Intercept reports that Sater has long been connected to Andrew Weissmann, a top Mueller lieutenant, who supervised the stock fraud case that first led to Sater becoming a government informant.

Much of what Sater did in the past is hidden in sealed in court records and FBI and CIA files. Three separate investigations—by Justice Department Inspector General Michael Horowitz, U.S. Attorney John Huber, and special prosecutor John Durham—are grinding away at aspects of the Russia affair. And Judicial Watch is on the case with Freedom of Information Act requests and court actions, including FOIAs for all FBI interactions with Sater and the Mueller proffer agreement.

What master was Felix Sater serving during the Trump presidential campaign? Was he a central figure in a Deep State scheme to derail Trump or just another entry in the annals of con men and crooks? We don’t have to wait years for answers to dribble out from federal investigations and FOIA actions. President Trump has given Attorney General William Barr sweeping authority to declassify intelligence related to the Russia case. Barr should start by declassifying the Sater files.

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Micah Morrison is chief investigative reporter for Judicial Watch. Follow him on Twitter @micah_morrison. Tips: mmorrison@judicialwatch.org

Investigative Bulletin is published by Judicial Watch. Reprints and media inquiries: jfarrell@judicialwatch.org

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The Qatar Connection

A tiny and vulnerable country that punches well above its weight, Qatar takes a traditional route to security: it spreads money around and cultivates alliances far and wide. Contradictions abound. The Persian Gulf monarchy has strong business ties to Iran, angering its Saudi neighbors and the U.S. But it hosts the Americans at the critical Al Udeid Air Base—the forward operations post for the entire U.S. military effort in the Middle East. Qatar supports terror-aligned groups such Hamas, but sponsors the freewheeling Al Jazeera television network. A Sunni nation, its Shia minority worships freely. But its media is filled with anti-Semitic and anti-Israel propaganda. It’s an inconsistent partner in the American-led war on terror and terror financing. Regional players, led by Saudi Arabia and angered over Qatar’s ties with Iran and support for the Muslim Brotherhood, slapped an economic blockade on it in 2017. But Qatar’s dynamic economy, powered by vast oil and natural gas reserves,  shook it off.

Qatar’s influence operations extend into the U.S. In 2017, it quadrupled American lobbying efforts to $16 million spread across 23 firms, including targeting friends of the president, according to a report in the Wall Street Journal. Qatar also pours money into American universities. Luke Rosiak of the Daily Caller put the numbers together. Qatar has given $1 billion to American universities since 2011, with more than $830 million directed to three U.S. universities—Georgetown, Northwestern, and Texas A&M. Not coincidentally, all three now operate satellite campuses in Qatar.

Does Qatar’s money come with strings attached? Is it supporting anti-Israel and anti-Semitic activities at American universities? Inquiries have hit stone walls. Universities have “refused to discuss where strings are attached,” Rosiak noted. Qatar hired the powerhouse law firm Squire Patton Boggs to crush a freedom of information request to Texas A&M. At Georgetown, Rosiak wrote, requests for basic information about Qatari funding were “repeatedly ignored.”

In April, Judicial Watch took up the Texas A&M case. We filed a petition to intervene on behalf of our client, the Zachor Legal Institute, which is seeking information about Qatari funding of the university. Qatar and Texas A&M want to prevent the release of that information.

“Judicial Watch and the Zachor Legal Institute are battling in court for the truth about how the foreign government of Qatar lassoed Texas A&M into setting up a campus in a country run by a government known for its promotion of terrorism and extreme anti-Israel and anti-Semitic policies” said Judicial Watch President Tom Fitton.

The case began when Zachor—a think tank and advocacy group investigating anti-Israel and anti-Semitic activities—started asking questions about how state-funded Texas A&M was able to establish a campus in Qatar without the approval of the Texas state legislature. Zachor filed a request to Texas A&M under the Texas Public Information Act seeking summaries of all monies directed to the university. In a later request, Zachor sought all Qatar-connected communications related to the funding.

That’s apparently when Qatari officials grew alarmed. Squire Patton Boggs stepped into the case on behalf of Texas A&M and the Qatar Foundation. The foundation is an arm of the Qatari royal family that directs funding worldwide. In a letter to the Texas attorney general, the law firm argued that Texas law prohibits release of the information because it would give commercial advantage to competitors, disclose trade secrets, and reveal the identity of donors.

Judicial Watch is fighting back. In our court filing, we point out that the Qatari government and its agencies are not protected under Texas public information law.

In addition, the law is specific: it protects only the identity of private donors, not government entities such as the Qatar Foundation. There’s no doubt the Qatar Foundation is a government entity. The Judicial Watch filing notes: “the Qatar Foundation was created by the emir of Qatar, is chaired by his consort, and is sponsored and supported by the government of Qatar, a monarchy.”

Why does any of this matter? Go back to that $1 billion Qatar has been spreading around American universities. “We suspect that Qatar may be using university grants to surreptitiously fund radical individuals and groups on campuses and if this is happening, we expect to find evidence through the financial records,” Zachor president Marc Greendorfer told the Jewish News Service.

If you’re the government of Qatar or Texas A&M, that’s a secret worth hiding.

We’ll keep you updated on the case. For more, read Judicial Watch’s filing and related documents here.

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Micah Morrison is chief investigative reporter for Judicial Watch. Follow him on Twitter @micah_morrison. Tips: mmorrison@judicialwatch.org

Investigative Bulletin is published by Judicial Watch. Reprints and media inquiries: jfarrell@judicialwatch.org

Cardillo Murder, de Blasio FOIL Fail

Judicial Watch’s probe into the murder of NYPD Patrolman Phillip Cardillo is heading back to court in New York. Cardillo was murdered more than four decades ago, but the NYPD has advanced the preposterous legal claim that its investigation is still “active and ongoing” to deny Judicial Watch documents in the case. That’s an extreme interpretation of the state’s Freedom on Information Law, but typical of the assault on transparency underway in New York City under Mayor Bill de Blasio.

Cardillo was shot down in 1972 in Louis Farrakhan’s Nation of Islam Mosque in Harlem. No one ever served a day in jail for the crime. Controversy surrounded the case from the moment bullets flew. Why were suspects released from police custody? Why was the crime scene erased? Why was the FBI quickly on the scene? Why were investigations stonewalled? Who lured Cardillo to the mosque? Who in the political echelon cut a deal with whom, and why?

A suspect was arrested, indicted, went to trial—hung jury—went to trial again, acquitted. The alleged shooter was free—”not guilty” in the eyes of the law—but the NYPD was confident it arrested the right guy. The collar was righteous, but the prosecutions failed due to tainted and withheld evidence. Case closed.

Then, in 2006, NYPD Commissioner Ray Kelly re-opened the case. According to a 2006 letter from the NYPD to the FBI obtained by Judicial Watch, the new investigation was launched “to determine if there is evidence of a conspiracy in 1972” to kill Cardillo. Six years later, the case was closed again. An NYPD spokesman told the Daily News that the new probe was finished and that it “didn’t turn up any useful information.”

That’s when Judicial Watch began requesting documents in the case—and hit a stone wall. Year after year, Judicial Watch’s requests for information were met with silence. In 2017, Judicial Watch went to court, arguing that the NYPD should be compelled to turn over the Cardillo case file and a tape-recording of an anonymous caller luring police to the Harlem mosque.

The NYPD responded by submitting a sworn affidavit that the Cardillo murder—45 years later—is “an open investigation and remains actively pursued.” And that tape recording? Sorry, we can’t find it.

A New York judge accepted the NYPD’s argument. Read a legal update here.

Last month, we filed our appeal. We argued that on the facts and the law, the NYPD was wrong. The NYPD had failed to demonstrate that there is a bona fide “ongoing investigation,” that it had not provided a legitimate legal basis for withholding the Cardillo documents, and that it “is making a mockery” of Freedom of Information laws. Read the Judicial Watch appeal here.

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Schock & Awe

Aaron Schock always has been an awesome character. At 23, he won a seat in the Illinois House of Representatives, becoming the youngest member in state history. At 27, he won a race for the Illinois 18th Congressional district, becoming the youngest member of Congress. He was a Republican star, a prodigious fundraiser, raising more than $11 million for his congressional campaigns. An exercise aficionado, he once appeared on the cover of Men’s Health magazine. He got in trouble with the Washington Post for decorating his DC office in the luxurious style of the British period drama, “Downton Abbey.”

That’s when it all came crashing down. Washington had a good laugh over Schock’s cover shoot and interior decorating, but questions about improper spending mounted and in March 2015, he resigned from Congress. And there was nothing funny about the federal indictment that came twenty months later, a few days after the 2016 election. The U.S. Attorney for the Central District of Illinois charged Schock with 24 counts of wire fraud, mail fraud, theft, false statements and filing false documents.

The indictment, reported the Post, “alleged that the former congressman from Peoria, Ill., reimbursed himself for 150,000 miles he never drove, bought a new 2015 Chevrolet Tahoe for his exclusive use with campaign committee funds, and reimbursed himself with congressional funds for camera equipment purchased for himself and his personal photographer. It alleges that Schock used government and campaign money to take a private plane with a group to Chicago for a Bears football game, and remodeled his Illinois apartment and Capitol Hill office — paying those who did the thousands of dollars’ worth of work at least in part from government and campaign funds.”

The total tab for the misdeeds: $100,000

Schock was, well, shocked. “I simply cannot believe it has come to this,” he said in a statement after the indictment. He said his campaign team “might have made errors among a few of the thousands and thousands of financial transactions we conducted, but they were honest mistakes—no one intended to break any laws.”

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Sunshine Week, Stormy Weather

It’s Sunshine Week—the annual celebration of freedom of information brought to you by the American Society of News Editors—but unfortunately the forecast is for stormy weather ahead. Everywhere, it seems, public access to information is under fire. Journalism is besieged by charges of “fake news.” Newspapers are closing at record rates. Government secrecy is on the upswing. Freedom of information requests—a critical tool in the fight for transparency and accountability in public life—are increasingly delayed, denied and disparaged.

The Great Recession and the creative destruction brought by technological change has resulted in the closure of almost 1,800 newspapers in the last fifteen years. But digital media will fill the information gap from all those vanishing publications, right?

Wrong. Not even close. In the decade ending in 2017, notes former Sacramento Bee executive editor Joyce Terhaar, citing a study by the Pew Research Center,  “roughly 32,000 newspaper journalist jobs evaporated and only 6,000 were created by digital news startups.” The Pew report is grim tidings for the newspaper industry. Read it here.

Federal and state freedom of information laws are at the heart of the fight for transparency in government. But here, too, the news is bad. “The United States government is bigger than ever and the most secretive in recent memory,” Judicial Watch President Tom Fitton told Congress in 2017.

We should know. Judicial Watch is the nation’s top filer of Freedom of Information requests in the Nonprofit/Advocacy Group category, according to the FOIA Project of Syracuse University. By the way, we also outstrip every news organization in filing lawsuits to obtain government records.

We’ve learned from long experience that lawsuits are the key to sunshine success. Freedom of information requests are dragged out for months and years, or simply ignored. That’s much more difficult to do when a judge gets involved.

The investigative website ProPublica published a litany of FOIA horror stories that gets to the heart of how governments game the transparency crisis to their advantage.

“Local, state and federal agencies alike routinely blow through deadlines laid out in law or bend them to ludicrous degrees, stretching out even the simplest requests for years,” ProPublica reported. “And they bank on the media’s depleted resources and ability to legally challenge most denials. Many government agencies have gutted or understaffed the offices that respond to public records requests. Even when agencies aren’t trying to stymie requests, waits for records now routinely last longer than most journalists can wait — or so long that the information requested is no longer useful. This, in turn, allows public agencies to control scrutiny of their operations.”

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De Blasio Failure to Thrive

The national economy is humming along, but in America’s greatest city it feels like the canaries in the coal mine are starting to drop dead. A “progressive” mob so terrified the Amazon behemoth that it abandoned plans to build a giant technology hub in New York and fled, costing the city 25,000 jobs. Murders and domestic assaults, while still low by historical measures, have jumped. Ditto hate crimes. So-called “quality of life” offenses like subway turnstile jumping, public urination, public drinking and littering have been decriminalized as part of the social experiment. Mayor Bill de Blasio recently abandoned his highly touted education “Renewal” program, an attempt to improve struggling schools, after throwing $773 million at it. And reports now indicate that the mayor’s wife, Chirlane McCray, has blown $850 million in a poorly managed mental health initiative.

Ms. McCray, a former freelance writer and public-affairs specialist, leads “ThriveNYC,” a sprawling and ambitious effort to improve the city’s mental health practices. It’s a smorgasbord of social programs reaching into more than a dozen city agencies.

“In January 2015, I had the honor of announcing an unprecedented commitment by the City of New York to create a mental health system that works for all New Yorkers,” Ms. McCray wrote in a Thrive report. Everything, it seemed, was on the table: suicide, anxiety, depression, discrimination, substance abuse, maternal and fetal health, hospitals, homelessness, housing, jails, veteran affairs, youth issues, LGBT issues, parenting issues, senior citizens, schooling, public awareness, citizen education, physician training, public and private sector partnerships. The system would operate “in part through 54 targeted initiatives— representing an investment of $850 million over four years—that together comprise an entirely new and more holistic approach to mental health in New York City,” the report noted.

Four years later, no one can figure out where the money went.

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Highway of Tears (The Murders in Indian Country)

In January, Judicial Watch published a short report, “The Murders in Indian Country,” outlining the shocking rate of murders and assaults inflicted on Native American and Alaska Native women. While accurate information is scarce, surveys suggest that the women are murdered at a rate ten times the national average. The response to the Judicial Watch report was tremendous. The story bounced around social media for weeks and prompted a stream of emails.

We noted that Congress had dropped the ball last year, allowing “Savanna’s Act” to die in the House of Representatives. The bill had strong bipartisan support and would have forged new ties between law-enforcement agencies and improved data collection related to crimes against Native Americans and Alaska Natives. The bill was named for 22-year-old Savanna LaFontaine-Graywind, brutally murdered in North Dakota in 2017.

Now, Savanna’s Act is back, reintroduced in the Senate by Lisa Murkowski of Alaska and Catherine Cortez Masto of Nevada. There is an “epidemic of murdered and missing Native women and girls,” the senators said in a joint press release.

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A Rising Tide of Global Corruption

ATransparency International is out with its annual global corruption index and the news is not good. Around the world, according to the group’s sophisticated scoring system, democratic institutions are embattled by a rising tide of corruption.

TI’s “Corruption Perceptions Index” is the gold standard in assessing corruption worldwide. The index is drawn from comprehensive data sets of more than a dozen international organizations, including the World Bank, the World Economic Forum, Freedom House, and the Economist’s Country Risk Service. Descriptions of sources, statistics and methodology can be found here, below “Resources and Downloads.”

Because corruption operates in the shadows, hard data is elusive. TI’s index measures expert and in-country perceptions, focusing on public corruption, bribery, diversion of public funds, malfeasance and crime by public officials, transparency and accountability.

The failure to curb corruption is “contributing to a worldwide crisis of democracy,” TI says. The 2018 research shows “a disturbing link between corruption and the health of democracies, where countries with higher rates of corruption also have weaker democratic institutions and political rights.”

According to the new data, “on a scale of zero (a highly corrupt public sector) to 100 (a very clean public sector), two-thirds out of the 180 countries surveyed have scored below 50 in 2018’s CPI—meaning that the majority pass as corrupt.”

Since 2006, democratic practices have declined in 113 countries. “Corruption chips away at democracy to produce a vicious cycle, where corruption undermines democratic institutions and, in turn, weak institutions are less able to control corruption,” says TI Managing Director Patricia Moreira.

The most corrupt country? Somalia, scoring a meager 10 out of 100 on the index.

The other top ten most corrupt countries, from the bottom up, are Syria, South Sudan, Yemen, North Korea, Sudan, Guinea Bissau, Equatorial Guinea, Afghanistan, and Libya.

Sub-Saharan Africa is the lowest scoring region, the report notes. It struggles with “stark political and socio-economic contrasts” and rampant, longstanding corruption.

In the Middle East, another low scoring region, the situation “remains grim.” Civil liberties “continue to be under repressive state control” and “corruption remains stubbornly high.”

The least corrupt country is (drumroll please….) Denmark, with a score of 88.

Coming in one point below Denmark is New Zealand, at 87.

The rest of the top ten least corrupt countries, from the top down, are Finland, Singapore, Sweden, Switzerland, Norway, Netherlands, Canada, and Luxembourg.

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Suddenly Strategic Guyana

The government has fallen. The Russians are coming. The Chinese are coming. There’s chaos at the border and corruption in the capital. And a vast treasure tempts all takers. That’s the situation in small, suddenly strategic Guyana. Is anybody in Washington paying attention?

The current crisis began in December when a single member of the Guyanese ruling coalition switched to the opposition in no-confidence vote that brought down the government. MP Charrandass Persaud earlier had been spotted around the capital looking to buy $1 million in gold, selling his SUV, and handing over the keys to his law office. Immediately after the vote, he hopped a plane for Canada.

Allegations flew on social media that Persaud had been bribed to switch his vote. Persaud denied the charge. That $1 million in gold he was looking to buy? Well, yes, true, Persaud said, but that was on behalf of a client.

The motive for bringing down the government?

New elections.

The powerful opposition People’s Progressive Party desperately wants a seat at the table carving up Guyana’s sudden new wealth. ExxonMobil has discovered vast oil reserves off the Guyana coast, a discovery set to transform one of the poorest countries in the Western Hemisphere. Millions of dollars have started to flow into Guyana. Soon it will be billions.

The government has struggled to create the institutions and laws to manage the money. (Judicial Watch reported on the situation in August.) Opposition politicians complain that the current government was taken to the cleaners by ExxonMobil. “They sold our patrimony,” said PPP leader Bharrat Jagdeo. Despite attempts at reform and reconciliation, Guyana politics is largely dominated—and at times bitterly divided—between the Indo-Guyanese PPP and the Afro-Guyanese People’s National Congress. The PNC dominated the most recent government—until December.

Neighboring Venezuela was quick to declare its interest in the Guyanese political developments. A day after the no-confidence vote, the Venezuelan Navy intercepted an ExxonMobil research ship in Guyanese waters.

Consider it a warning. Venezuela and Guyana have been disputing territory for decades, but this is different. Venezuela is falling apart, Guyana is oil rich, and the Maduro regime in Caracas may be looking to divert attention from its domestic troubles. “Is Venezuela willing to start a Caribbean war?” asked geopolitical risk analyst Scott MacDonald.

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New York’s War on Religious Education

New York State has opened the door to a war on religious education. New guidelines from the state’s Department of Education are framed as applying to all “religious and independent schools” in New York, but no one is fooled. The changes are aimed right at New York City’s freewheeling Orthodox Jewish seminaries, known as yeshivas. More than 100,000 students attend yeshivas in New York City.

The new guidelines revisit the “substantial equivalency” statute that has kept the peace in New York schools since 1897. Non-public schools can educate their students as they see fit, provided the education is “substantially equivalent” to public schools. The new guidelines change the equation. Math must be taught every day. English, science, and social studies must be taught. Schools must provide samples of teaching schedules, textbooks, and lesson plans. Non-compliant schools risk withdrawal of funding for things like textbooks and transportation, and students ultimately could be forced to go to another school. Students that resist transfer risk being declared “truant” and legal steps to challenge parental competency could follow. The new mandates will be enforced by inspections from local school district officials.

The guidelines, wrote two Orthodox educators in the Wall Street Journal, are a shocking power grab by secular forces. They “empower local school boards to evaluate private schools and to vote on our right to continue educating our students.” The new curriculum requirements demand “so much time that it crowds out Torah study, our sacred mission.”

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