Category: Selling Access

Following Sessions’ Mar-a-Lago Appearance, New Ethics Questions Arise

At some point during the Obama era, conservatives convinced themselves that the Democratic president took an outrageous amount of time off, traveled constantly, and vastly preferred golfing to working. The criticisms were always quite silly – especially after George W. Bush broke every modern record for time off taken by a sitting president – but the right nevertheless embraced the nonsense with great enthusiasm.

Vox recently talked to a series of CPAC attendees, many of whom continued to complain bitterly about Obama’s travel costs and downtime. Told that Donald Trump is actually spending more on travel and enjoying more downtime, conservatives were incredulous. The facts “can’t possibly be right,” one said. “That absolutely can’t be right.”

Reality, however, is stubborn. Trump headlined a political fundraiser on Friday night, before heading to Mar-a-Lago, the for-profit club he still owns, for another relaxing weekend. Over the last five weekends, the president has visited his luxury resort four times – each trip costs American taxpayers about $3 million – and as of last night, Trump had spent 31% of his presidency at Mar-a-Lago.  He’s now played golf eight times since taking office six weeks ago.

In October 2014, Trump whined via Twitter, “We pay for Obama’s travel so he can fundraise millions so Democrats can run on lies. Then we pay for his golf.” A year later, as a presidential candidate, Trump declared that if he were in office, he’d dispense with breaks. “I’d want to stay in the White House and work my ass off,” he told voters.

Like so many of his claims, Trump apparently didn’t mean a word of it. (Last week, the White House even gave the press misleading information about one the president’s golf outings.)

But this latest trip was a little different – because as the Palm Beach Post noted, Trump this time brought along some powerful friends.

President Donald Trump mingled with guests outside a charity ball at his Mar-a-Lago Club on Saturday night. As attendees danced inside the ballroom where the Bascom Palmer Eye Institute held its gala, the president was spotted nearby, shaking hands and talking with club members and guests.

Earlier, Attorney General Jeff Sessions also took a few moments from high-level meetings to greet guests at the estate.

Oh good, we’ve reached the point at which the attorney general of the United States is a prop for members at the president’s for-profit club.

What’s more, Sessions wasn’t alone. Two other members of Trump’s cabinet – Homeland Security Secretary John Kelly and Commerce Secretary Wilbur Ross – were also on hand in Florida over the weekend.

I appreciate the fact that there are a variety of very serious scandals surrounding this White House, but the conflicts surrounding Trump and Mar-a-Lago are tough to defend. I’m reminded anew of this recent New York Times piece, which noted that Team Trump has created “an arena for potential political influence rarely seen in American history: a kind of Washington steakhouse on steroids, situated in a sunny playground of the rich and powerful, where members and their guests enjoy a level of access that could elude even the best-connected of lobbyists.”

… Mr. Trump’s weekend White House appears to be unprecedented in American history, as it is the first one with customers paying a company owned by the president, several historians said.

“Mar-a-Lago represents a commercialization of the presidency that has few if any precedents in American history,” said Jon Meacham, a presidential historian and Andrew Jackson biographer. “Presidents have always spent time with the affluent,” he added. “But a club where people pay you as president to spend time in his company is new. It is kind of amazing.”

And it’s not just Trump. Those who pay the $200,000 membership fee also, evidently, get access to the U.S. attorney general and other powerful cabinet secretaries, and even get front-row seats to see officials respond in real time to national security challenges, conducted in full view of civilians.

The club’s managing director conceded to the Times that Trump’s presidency “enhances” club membership – which may help explain the increase in entrance fees – adding, “People are now even more interested in becoming members.”

If you voted Republican because you were worried about Hillary Clinton and pay-to-play controversies, I have some very bad news for you. Trump is profiting from the presidency in ways no one has been able to credibly defend.

As we discussed a couple of weeks ago, we’re looking at an ethical nightmare. A president who refuses to divest from his many business ventures still owns a for-profit enterprise, in which undisclosed people pay hundreds of thousands of dollars for exclusive access – and the facility itself openly acknowledges the financial benefits of exploiting Trump’s presidency.

How many lobbyists or agents of foreign governments are signing up to take advantage? We don’t know – because Mar-a-Lago doesn’t disclose its membership list.

The Washington Post’s Greg Sargent talked recently to Norm Eisen, the chief ethics czar under President Obama, who pointed to Trump’s dramatic use of his for-profit club as a serious problem.

Eisen argued to me … that you cannot divorce this latest story from Trump’s seemingly reflexive or deliberately thought out use of his position as president to promote his business interests or those of his family. After all, Eisen notes, the very act of inviting [Japanese Prime Minister Shinzo] Abe to Mar-a-Lago itself must be evaluated as, potentially, an effort to promote his resort, given the pattern of behavior we’ve seen from this White House, which has included repeated efforts by Trump and his aides to punish Nordstrom for declining to carry Ivanka Trump’s clothing line or to drive customers to Ivanka.

“We’ve had a lot of presidents who hosted foreign leaders away from the White House,” Eisen said. “But we’ve never in history had one do it in a place where he’s selling memberships for hundreds of thousands of dollars a pop. Trump just could not resist the opportunity to make an infomercial for his property. He’s worked hard all his life to generate free media. Now he’s hit the mother lode, and he’s not going to stop.”

There’s no reason to go along with this as if it were somehow normal.

(h/t MSNBC)

DOJ Walks Back Guidance Discouraging Use of Private Prisons

The Department of Justice has rescinded guidance from August that discouraged the use of private prisons.

“This will restore (the Bureau of Prison’s) flexibility to manage the federal prison inmate population based on capacity needs,” the Justice Department said in a statement.

In August, then-deputy Attorney General Sally Yates directed the Bureau of Prisons to reduce its use of private prison contracts. In the August memo, she said private prisons had been used to house a prison population that had grown 800% between 1980 and 2013.

But, she said, the population is now on the decline, from 220,000 in 2013 to 195,000 in 2016.

A DOJ official said on background Thursday that the BOP has 12 private prison contracts, housing approximately 21,000 inmates.

In a new memo dated February 21 and released for the first time on Thursday, Attorney General Jeff Sessions wrote that the Yates memo “changed long-standing policy and practice, and impaired the bureau’s ability to meet the future needs of the federal correctional system.” He directed the bureau to “return to its previous approach.”

“This will restore BOP’s flexibility to manage the federal prison inmate population based on capacity needs,” the Justice Department said in a statement Thursday.

New Jersey Democratic Sen. Cory Booker was quick to speak out against the change in policy.

“The Trump administration’s decision to reverse course on existing policies designed to gradually end the use of private prisons is a major setback to restoring justice to our criminal justice system,” Booker said in a statement. “The Bureau of Prisons’ own inspector general has found that privately-managed prisons housing federal inmates are less safe and less secure than federal prisons, and these facilities have seen repeated instances of civil rights violations. Attaching a profit motive to imprisonment undermines the cause of justice and fairness.”

(h/t CNN)

Reality

As The Week put it: “Private prisons ultimately pose a greater threat to inmates because of their raison d’être; they exist solely to make a profit off of incarcerated individuals.”

The private prison industry also have contributed big sums to pro-Trump groups, including the organization that raised a record $100 million for his inauguration last month.

Pay to Play: Trump’s Cabinet is His Donors

President Donald Trump’s transition efforts raised more than $6.5 million, according to government filings, with the vast majority of the donations coming after the election — including thousands of dollars from people linked to his future Cabinet.

According to filings with the General Services Administration obtained by CNN through the Freedom of Information Act, Trump’s transition fundraising vehicle, Trump for America Inc., raised $6,513,947.93 through February 14.

Donors included individuals, corporations and advocacy groups. Each entity is by law allowed to donate up to $5,000 maximum to transition efforts, which are financed in part by private fundraising and in part by federal funds.

Trump Cabinet nominees or their families were consistent donors.

His earliest supporter of the Cabinet was Linda McMahon, who is now confirmed as chief of the Small Business Administration. She gave the maximum donation on July 14, before Trump was even formally named the nominee by the Republican National Convention.

McMahon was nominated in December.

Wilbur Ross, expected to be confirmed as commerce secretary, maxed out on October 31. He was formally announced on November 30.

Other nominees waited until after the election.

The DeVos family gave 10 individual $5,000 donations on December 14. Betsy DeVos, now the secretary of education, was announced as the nominee on November 23.

Alan Mnuchin, the brother of Treasury Secretary Steven Mnuchin, gave $5,000 on December 9, though Steven Mnuchin did not donate. Exxon Mobil Corporation, the company that was helmed by Secretary of State Rex Tillerson before he was confirmed, gave $5,000 December 28 — though Tillerson himself did not donate to the transition.

Tillerson was named December 13 and Mnuchin was named November 30.

Former Labor nominee Andrew Puzder, a fast food executive, gave $5,000 on November 30. He withdrew from consideration this month after a series of controversial headlines and opposition from GOP senators. He was nominated on December 8.

There is no indication that Trump or his decision-making inner circle would have known about the donations.

Asked if DeVos had any concerns about the appropriateness of donating, her personal spokesman Greg McNeilly said “no concerns whatsoever.” The Department of Education did not immediately respond.

The White House did not immediately answer an inquiry as to whether Trump or his staff knew about the donations.

(h/t CNN)

Leaked Tape Reveals Trump Invited Club Guests To Witness Cabinet Interviews

Newly leaked audio from a November party at President Trump’s Bedminster, N.J., golf club reveals then president-elect Trump touting to guests his scheduled interviews on premises with potential cabinet members and White House staff.

“We’re doing a lot of interviews tomorrow — generals, dictators, we have everything,” Trump says in the tape, obtained by Politico and published Saturday. “You may wanna come around. It’ll be fun. We’re really working tomorrow. We have meetings every 15, 20 minutes with different people that will form our government.”

We’re going to be interviewing everybody — Treasury, we’re going to be interviewing Secretary of State,” he continued. “We have everybody coming in — if you want to come around, it’s going to be unbelievable … so you might want to come along.”

The tape was recorded at the same New Jersey golf club where Trump interviewed several potential cabinet picks, including former GOP presidential candidate Mitt Romney, who was under consideration to be secretary of State.

The tape sheds some light on how Trump conducts himself at his clubs, just as he returns this weekend to his Mar-a-Lago resort in Palm Beach, Fla., for his third straight weekend.

Last weekend, Trump was criticized for handling a North Korea missile crisis in public at his Mar-a-Lago dining room. Guests at the club took photos of the meeting, and one person even shared a Facebook post of the person responsible for carrying “nuclear football“—  the black bag that contains the nuclear launch codes.

(h/t The Hill)

Media

https://www.youtube.com/watch?v=jTQ6UwkO9pY

CEO of Russia’s State Oil Company Offered Trump Adviser, Allies a Cut of Huge Deal If Sanctions Were Lifted

A dossier with unverified claims about President Donald Trump’s ties to Russia contained allegations that Igor Sechin, the CEO of Russia’s state oil company, offered former Trump ally Carter Page and his associates the brokerage of a 19% stake in the company in exchange for the lifting of US sanctions on Russia.

The dossier says the offer was made in July, when Page was in Moscow giving a speech at the Higher Economic School. The claim was sourced to “a trusted compatriot and close associate” of Sechin, according to the dossier’s author, former British spy Christopher Steele.

“Sechin’s associate said that the Rosneft president was so keen to lift personal and corporate western sanctions imposed on the company, that he offered Page and his associates the brokerage of up to a 19 per cent (privatised) stake in Rosneft,” the dossier said. “In return, Page had expressed interest and confirmed that were Trump elected US president, then sanctions on Russia would be lifted.”

Four months before the intelligence community briefed Trump, then-President Barack Obama, then-Vice President Joe Biden, and the nation’s top lawmakers on the dossier’s claims — most of which have not been independently verified but are being investigated by US intelligence agencies — a US intelligence source told Yahoo’s Michael Isikoff that Sechin met with Page during Page’s three-day trip to Moscow. Sechin, the source told Yahoo, raised the issue of the US lifting sanctions on Russia under Trump.

Page was an early foreign-policy adviser to the Trump campaign. He took a “leave of absence” in September after news broke of his July trip to Moscow, and the campaign later denied that he had ever worked with it.

Page, for his part, was “noncommittal” in his response to Sechin’s requests that the US lift the sanctions, the dossier said. But he signaled that doing so would be Trump’s intention if he won the election, and he expressed interest in Sechin’s offer, according to the document.

In a recent interview with The Wall Street Journal, Trump suggested the sanctions could be lifted if Moscow proved to be a useful ally. “If you get along and if Russia is really helping us,” Trump asked, “why would anybody have sanctions if somebody’s doing some really great things?”

Page has criticized the US sanctions on Russia as “sanctimonious expressions of moral superiority.” He praised Sechin in a May 2014 blog post for his “accomplishments” in advancing US-Russia relations. A US official serving in Russia while Page worked at Merrill Lynch in Moscow told Isikoff that Page “was pretty much a brazen apologist for anything Moscow did.”

Page is also believed to have met with senior Kremlin internal affairs official Igor Diveykin while he was in Moscow last July, according to Isikoff’s intelligence sources. The dossier separately claimed that Diveykin — whom US officials believe was responsible for the intelligence collected by Russia about the US election — met with Page and hinted that the Kremlin possessed compromising information about Trump.

It is unclear whether Isikoff’s reporting is related to the dossier, which has been circulating among top intelligence officials, lawmakers, and journalists since mid-2016.

A scramble for a foreign investor

After mid-October, the dossier said, Sechin predicted that it would no longer be possible for Trump to win the presidency, so he “put feelers out to other business and political contacts” to purchase a stake in Rosneft.

Rosneft then scrambled to find a foreign investor, holding talks with more than 30 potential buyers from Europe, the US, Asia, and the Middle East. The company signed a deal on December 7 to sell 19.5% of shares, or roughly $11 billion, to the multinational commodity trader Glencore Plc and Qatar’s state-owned wealth fund. Qatar’s sovereign wealth fund is Glencore’s largest shareholder.

The “11th hour deal” was “so last minute,” Reuters reported, “that it appeared it would not close in time to meet the government’s deadline for booking money in the budget from the sale.”

The purchase amounted to the biggest foreign investment in Russia since US sanctions took effect in 2014. It showed that “there are some forces in the world that are ready to help Russia to circumvent the [West’s] sanction regime,” said Lilia Shevtsova, an associate fellow in the Russia and Eurasia program at Chatham House.

“In Russia we have a marriage between power and business, and that is why all important economic deals need approval and the endorsement of the authorities,” Shevtsova said. “This was a very serious commercial deal that hardly could have succeeded without the direct involvement of the Kremlin.”

The privatization deal was funded by Gazprombank, whose parent company is the state-owned Russian energy giant Gazprom.

Page holds investments in Gazprom, though he claimed in a letter to FBI Director James Comey in September that he sold his stake in the company “at a loss.” His website says he served as an adviser “on key transactions” for the state-owned energy giant before setting up his energy investment fund, Global Energy Capital, in 2008 with former Gazprom executive Sergei Yatsenko.

There is no evidence that Carter played any role in the Rosneft deal. But he was back in Moscow on December 8 — one day after the deal was signed — to “meet with some of the top managers” of Rosneft, he told reporters at the time. Page denied meeting with Sechin, Rosneft’s CEO, during that trip but said it would have been “a great honor” if he had.

The Rosneft deal, Page added, was “a good example of how American private companies are unfortunately limited to a great degree due to the influence of sanctions.” He said the US and Russia had entered “a new era” of relations but that it was still “too early” to discuss whether Trump would be easing or lifting sanctions on Moscow.

Page’s extensive business ties to state-owned Russian companies were investigated by a counterintelligence task force set up last year by the CIA. The investigation, which is reportedly ongoing, has examined whether Russia was funneling money into Trump’s presidential campaign — and, if it was, who was serving as the liaison between the Trump team and the Kremlin.

The dossier claims that Trump’s former campaign manager Paul Manafort asked Page to be the liaison. That claim has not been verified. Manafort served as a top adviser to a pro-Russian political party in Ukraine from 2004 to 2012 and emerged as a central figure in both the dossier and the intelligence community’s early inquiries into Trump’s ties to Russia.

(h/t Business Insider)

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