Baker, James E

Subterms

    Latest story

    150 Shares169 Views

    Trump-Era Special Counsel Secures Indictment of Lawyer for Firm With Democratic Ties

    by

    The defendant, Michael Sussmann, is accused of lying to the F.B.I. in a meeting about Trump and Russia. He denies wrongdoing.WASHINGTON — The special counsel appointed by the Trump administration to scrutinize the Russia investigation obtained a grand jury indictment on Thursday of a prominent cybersecurity lawyer, accusing him of lying to the F.B.I. five years ago during a meeting about Donald J. Trump and Russia.The indictment secured by the special counsel, John H. Durham, also made public his findings about an episode in which cybersecurity researchers identified unusual internet data in 2016 that they said suggested the possibility of a covert communications channel between the Trump Organization and Alfa Bank, a Kremlin-linked financial institution.He concluded that the Clinton campaign covertly helped push those suspicions to the F.B.I. and reporters, the indictment shows. The F.B.I. looked into the questions about Alfa Bank but dismissed them as unfounded, and the special counsel who later took over the Russia investigation, Robert S. Mueller III, ignored the matter in his final report.The charging of the lawyer, Michael A. Sussmann, had been expected. He is accused of falsely telling a top F.B.I. lawyer that he was not representing any client at the meeting about those suspicions. Prosecutors contend that he was instead representing both a technology executive and the Hillary Clinton campaign.“Sussmann’s false statement misled the F.B.I. general counsel and other F.B.I. personnel concerning the political nature of his work and deprived the F.B.I. of information that might have permitted it more fully to assess and uncover the origins of the relevant data and technical analysis, including the identities and motivations of Sussmann’s clients,” the indictment said.Mr. Sussmann’s defense lawyers, Sean Berkowitz and Michael Bosworth, have denied the accusation, insisting that he did not say he had no client and maintaining that the evidence against him is weak. They also denied that the question of who Mr. Sussmann was working for was material, saying the FB.I. would have investigated the matter regardless.“Michael Sussmann was indicted today because of politics, not facts,” they said on Thursday. “The special counsel appears to be using this indictment to advance a conspiracy theory he has chosen not to actually charge. This case represents the opposite of everything the Department of Justice is supposed to stand for. Mr. Sussmann will fight this baseless and politically inspired prosecution.”A former computer crimes prosecutor who worked for the Justice Department for 12 years, Mr. Sussmann in 2016 represented the Democratic National Committee on issues related to Russia’s hacking of its servers.He has been a cybersecurity lawyer for 16 years at the law firm Perkins Coie, which has deep ties to the Democratic Party. A colleague of Mr. Sussmann’s, Marc Elias, was the general counsel to the Clinton campaign. He left the law firm last month.The firm said in a statement on Thursday that Mr. Sussmann had also departed: “In light of the special counsel’s action today, Michael Sussmann, who has been on leave from the firm, offered his resignation from the firm in order to focus on his legal defense, and the firm accepted it.”The charge against him centers on a Sept. 19, 2016, meeting with the F.B.I. lawyer, James A. Baker, in which Mr. Sussmann relayed concerns about the odd internet data. Cybersecurity researchers had said it might be evidence of clandestine communications channel between computer servers associated with the Trump Organization and with Russia’s Alfa Bank.The case against Mr. Sussmann turns on Mr. Baker’s recollection that Mr. Sussmann told him he was not at the meeting on behalf of any client — which Mr. Sussmann denies saying. There were no witnesses to their conversation.The indictment says Mr. Baker later briefed another F.B.I. official — apparently Bill Priestap, the bureau’s top counterintelligence official — about the meeting, and that Mr. Priestap’s notes say Mr. Baker recounted that Mr. Sussmann said he was “not doing this for any client.” (It is not clear whether such notes would be admissible at a trial.)In 2017, Mr. Sussmann testified under oath to Congress that he was representing the unnamed technology executive, and his legal team agrees that executive was his client at the meeting — but the only one.Internal law firm billing records, however, show that Mr. Sussmann had been logging his time on Alfa Bank matters to the Clinton campaign, the indictment says, contending that the campaign was his client, too. Those records are said to also show that Mr. Sussmann met or spoke with Mr. Elias about Alfa Bank repeatedly.Seeking to head off any indictment, Mr. Sussmann’s defense lawyers had argued to the Justice Department that the billing records were misleading and that he was not at the meeting at the direction or on behalf of the Clinton campaign, according to people familiar with the case. They also denied that the records could be fairly interpreted as showing that he billed the meeting with Mr. Baker to the campaign, as the indictment accuses him.Mr. Durham is known to have been closely scrutinizing the Alfa Bank episode since last fall, including using a grand jury to subpoena documents and question witnesses in ways that suggested he was pursuing a theory that the data had been manipulated or the analysis of it knowingly torqued.The 27-page indictment disclosed much of what he found, including quoting extensively from internal communications of unnamed researchers.The unidentified technology executive whom Mr. Sussmann represented was not the first researcher to scrutinize the data. But his company had access to large amounts of internet data, and he came to play an important role in driving the research and analysis, which he told Mr. Sussmann about around July 2016, the indictment said.In August of that year, the technology executive outlined to other researchers the goal of the effort, saying that unspecified “VIPs” wanted to find “true” information that would merit closer scrutiny. Noting that Mr. Trump had claimed he had no interactions with Russian financial institutions, the executive wrote that data suggesting that was false “would be jackpot” and would “give the base of a very useful narrative.”The executive also wrote: “Being able to provide evidence of *anything* that shows an attempt to behave badly in relation to this, the VIPs would be happy. They’re looking for a true story that could be used as the basis for closer examination.”But one of the researchers working on the project worried that their analysis had weaknesses and that suggested they all shared anti-Trump sentiment.“The only thing that drive[s] us at this point is that we just do not like” Trump, the indictment quoted one unnamed researcher as writing. “This will not fly in eyes of public scrutiny. Folks, I am afraid we have tunnel vision. Time to regroup?”In early September, the indictment said, Mr. Sussmann met with a New York Times reporter who would later draft a story about Alfa Bank, and also began work on a so-called white paper that would summarize and explain the researchers’ data and analysis, billing the time to the Clinton campaign.On Sept. 12, the indictment said, Mr. Sussmann called Mr. Elias, the Clinton campaign lawyer, and spoke about his “efforts to communicate” with the Times reporter about the Alfa Bank allegations. Both billed the call to the campaign. And three days later, Mr. Elias exchanged emails with top campaign officials about the matter.In the meantime, on Sept. 14, five days before Mr. Sussmann met with the F.B.I., the technology executive emailed three researchers helping him with data. The executive sought to ensure the analysis they were assembling would strike security experts as simply “plausible,” even if it fell short of demonstrably true, prosecutors said.Mr. Sussmann also continued to push the Alfa Bank story to reporters. A month before the election, as Times editors were weighing whether to publish an article the reporter had drafted, Mr. Sussmann told him he should show the editors an opinion essay saying the paper’s investigative reporters had not published as many stories regarding Mr. Trump as other media outlets, the indictment said.Michael E. Sussmann, a lawyer from the firm Perkins Coie, during a cybersecurity conference in 2016.via C-SPANAttorney General William P. Barr appointed Mr. Durham in May 2019 to scour the Russia investigation for any wrongdoing. Both Mr. Trump and Mr. Barr stoked expectations among Mr. Trump’s supporters that the prosecutors would uncover grave offenses by high-level government officials and support claims that the Russia investigation was a plot concocted by the so-called deep state to sabotage Mr. Trump.To date, Mr. Durham’s investigation has fallen short of those expectations. Out of office, Mr. Trump has repeatedly issued statements fuming, “Where’s Durham?”The current attorney general, Merrick B. Garland, said at his confirmation hearing in February that he would let Mr. Durham continue to work and told Congress in July that he agreed with Mr. Barr’s earlier direction that Mr. Durham should eventually submit a report in a form that could be made public.Funding for most Justice Department operations, like much of the federal government, is controlled by an annual budget that covers a fiscal year that ends on Sept. 30. Spokesmen for Mr. Garland and Mr. Durham have declined to answer questions about whether Mr. Durham’s office has funding approval to continue operating beyond this month.But in announcing the indictment of Mr. Sussmann, the Justice Department said, “The special counsel’s investigation is ongoing.” More

    More stories

    • 163 Shares119 Views

      in Elections

      Durham Is Said to Seek Indictment of Lawyer at Firm With Democratic Ties

      by

      The lawyer, Michael Sussmann, is accused of lying to the F.B.I. in a 2016 meeting about Trump and Russia. He denies wrongdoing.WASHINGTON — John H. Durham, the special counsel appointed by the Trump administration to scrutinize the Russia investigation, has told the Justice Department that he will ask a grand jury to indict a prominent cybersecurity lawyer on a charge of making a false statement to the F.B.I., people familiar with the matter said.Any indictment of the lawyer — Michael Sussmann, a former federal prosecutor and now a partner at the Perkins Coie law firm, and who represented the Democratic National Committee on issues related to Russia’s 2016 hacking of its servers — is likely to attract significant political attention.Donald J. Trump and his supporters have long accused Democrats and Perkins Coie — whose political law group, a division separate from Mr. Sussmann’s, represented the party and the Hillary Clinton campaign — of seeking to stoke unfair suspicions about Mr. Trump’s purported ties to Russia.The case against Mr. Sussmann centers on the question of who his client was when he conveyed certain suspicions about Mr. Trump and Russia to the F.B.I. in September 2016. Among other things, investigators have examined whether Mr. Sussmann was secretly working for the Clinton campaign — which he denies.An indictment is not a certainty: On rare occasions, grand juries decline prosecutors’ requests. But Mr. Sussmann’s lawyers, Sean M. Berkowitz and Michael S. Bosworth of Latham & Watkins, acknowledged on Wednesday that they expected him to be indicted, while denying he made any false statement.“Mr. Sussmann has committed no crime,” they said. “Any prosecution here would be baseless, unprecedented and an unwarranted deviation from the apolitical and principled way in which the Department of Justice is supposed to do its work. We are confident that if Mr. Sussmann is charged, he will prevail at trial and vindicate his good name.”A spokesman for Attorney General Merrick B. Garland, who has the authority to overrule Mr. Durham but is said to have declined to, did not comment. Nor did a spokesman for Mr. Durham.The accusation against Mr. Sussmann focuses on a meeting he had on Sept. 19, 2016, with James A. Baker, who was the F.B.I.’s top lawyer at the time, according to the people familiar with the matter. They spoke on condition of anonymity.Because of a five-year statute of limitations for such cases, Mr. Durham has a deadline of this weekend to bring a charge over activity from that date.At the meeting, Mr. Sussmann relayed data and analysis from cybersecurity researchers who thought that odd internet data might be evidence of a covert communications channel between computer servers associated with the Trump Organization and with Alfa Bank, a Kremlin-linked Russian financial institution.The F.B.I. eventually decided those concerns had no merit. The special counsel who later took over the Russia investigation, Robert S. Mueller III, ignored the matter in his final report.Mr. Sussmann’s lawyers have told the Justice Department that he sought the meeting because he and the cybersecurity researchers believed that The New York Times was on the verge of publishing an article about the Alfa Bank data and he wanted to give the F.B.I. a heads-up. (In fact, The Times was not ready to run that article, but published one mentioning Alfa Bank six weeks later.)Mr. Durham has been using a grand jury to examine the Alfa Bank episode and appeared to be hunting for any evidence that the data had been cherry-picked or the analysis of it knowingly skewed, The New Yorker and other outlets have reported. To date, there has been no public sign that he has found any such evidence.But Mr. Durham did apparently find an inconsistency: Mr. Baker, the former F.B.I. lawyer, is said to have told investigators that he recalled Mr. Sussmann saying that he was not meeting him on behalf of any client. But in a deposition before Congress in 2017, Mr. Sussmann testified that he sought the meeting on behalf of an unnamed client who was a cybersecurity expert and had helped analyze the data.Moreover, internal billing records Mr. Durham is said to have obtained from Perkins Coie are said to show that when Mr. Sussmann logged certain hours as working on the Alfa Bank matter — though not the meeting with Mr. Baker — he billed the time to Mrs. Clinton’s 2016 campaign.Another partner at Perkins Coie, Marc Elias, was then serving as the general counsel for the Clinton campaign. Mr. Elias, who did not respond to inquiries, left Perkins Coie last month.In their attempt to head off any indictment, Mr. Sussmann’s lawyers are said to have insisted that their client was representing the cybersecurity expert he mentioned to Congress and was not there on behalf of or at the direction of the Clinton campaign.They are also said to have argued that the billing records are misleading because Mr. Sussmann was not charging his client for work on the Alfa Bank matter, but needed to show internally that he was working on something. He was discussing the matter with Mr. Elias and the campaign paid a flat monthly retainer to the firm, so Mr. Sussmann’s hours did not result in any additional charges, they said.Last October, as Mr. Durham zeroed in the Alfa Bank matter, the researcher who brought those concerns to Mr. Sussmann hired a new lawyer, Steven A. Tyrrell.Speaking on the condition that The New York Times not name his client in this article, citing a fear of harassment, Mr. Tyrrell said his client thought Mr. Sussmann was representing him at the meeting with Mr. Baker.“My client is an apolitical cybersecurity expert with a history of public service who felt duty bound to share with law enforcement sensitive information provided to him by D.N.S. experts,” Mr. Tyrrell said, referring to “Domain Name System,” a part of how the internet works and which generated the data that was the basis of the Alfa Bank concerns.Mr. Tyrrell added: “He sought legal advice from Michael Sussmann who had advised him on unrelated matters in the past and Mr. Sussmann shared that information with the F.B.I. on his behalf. He did not know Mr. Sussmann’s law firm had a relationship with the Clinton campaign and was simply doing the right thing.”Supporters of Mr. Trump have long been suspicious of Perkins Coie. On behalf of Democrats, Mr. Elias commissioned a research firm, Fusion GPS, to look into Mr. Trump’s ties to Russia. That resulted in the so-called Steele dossier, a notorious compendium of rumors about Trump-Russia ties. The F.B.I. cited some information from the dossier in botched wiretap applications.Some of the questions that Mr. Durham’s team has been asking in recent months — including of witnesses it subpoenaed before a grand jury, according to people familiar with some of the sessions — suggest he has been pursuing a theory that the Clinton campaign used Perkins Coie to submit dubious information to the F.B.I. about Russia and Mr. Trump in an effort to gin up investigative activity to hurt his 2016 campaign.Mr. Durham has also apparently weighed bringing some sort of action against Perkins Coie as an organization. Outside lawyers for the firm recently met with the special counsel’s team and went over the evidence, according to other people familiar with their discussions, arguing that it was insufficient for any legal sanction.The lawyers for Perkins Coie and the firm’s managing partner did not respond to phone calls and emails seeking comment.Mr. Sussmann, 57, grew up in New Jersey, attending Rutgers University and then Brooklyn Law School. He spent 12 years as a prosecutor at the Justice Department, where he came to specialize in computer crimes. He has since worked for Perkins Coie for about 16 years and is a partner in its privacy and cybersecurity practice. Mr. Sussmann and his firm have been particular targets for Mr. Trump and his supporters.In October 2018, a Wall Street Journal columnist attacked Mr. Sussmann, calling him the “point man for the firm’s D.N.C. and Clinton campaign accounts,” apparently conflating him with Mr. Elias. Perkins Coie responded with a letter to the editor saying that was not Mr. Sussmann’s role and that the unnamed client on whose behalf he spoke to the F.B.I. had “no connections to either the Clinton campaign, the D.N.C. or any other political law group client.”Four months later, Mr. Trump attacked Mr. Sussmann by name in a slightly garbled pair of Twitter posts, trying to tie him to the Clinton campaign and to the Steele dossier.Raising the specter of politicization in the Durham inquiry, lawyers for Mr. Sussmann are said to have argued to the Justice Department that Mr. Baker’s recollection was wrong, immaterial and too weak a basis for a false-statements charge. There were no other witnesses to the conversation, the people familiar with the matter said.In a deposition to Congress in 2018, Mr. Baker said he did not remember Mr. Sussmann “specifically saying that he was acting on behalf of a particular client,” but also said Mr. Sussmann had told him “he had cyberexperts that had obtained some information that they thought should get into the hands of the F.B.I.”However, Mr. Durham’s team is said to have found handwritten notes made by another senior F.B.I. official at the time, whom Mr. Baker briefed about the conversation with Mr. Sussmann, that support the notion that Mr. Sussmann said he was not there on behalf of a client. It is not clear whether such notes would be admissible at trial under the so-called hearsay rule.A lawyer for Mr. Baker declined to comment.Mr. Durham has been under pressure to deliver some results from his long-running investigation, which began when then-Attorney General William P. Barr assigned him in 2019 to investigate the Russia inquiry. Out of office and exiled from Twitter, Mr. Trump has issued statements fuming, “Where’s Durham?” More