More stories

  • in

    Find Me the Votes review: Fani Willis of Georgia, the woman who could still take down Trump

    If this week’s hearing about Fani Willis’s affair with her assistant Nathan Wade has piqued America’s interest in the character of the Fulton county district attorney, Michael Isikoff and Daniel Klaidman have written the perfect book for this moment.Isikoff has been a dogged investigator for the Washington Post, NBC and Yahoo, while his longtime friend and collaborator Klaidman is a former managing editor of Newsweek now a newly minted investigative reporter for CBS. Together they have produced the most readable and authoritative account to date of all of Donald Trump’s efforts to overturn the 2020 election.At its center is a nuanced portrait of Willis, who at least until a couple of days ago appeared to be Trump’s most effective nemesis, having indicted him, his lawyer, Rudy Giuliani, and the former White House chief of staff, Mark Meadows, as well as 16 other co-conspirators.Whether Willis’s affair with one of her principal assistants is a valid reason to force the presiding judge to dismiss her from the case remains to be seen. But the revelation seems to have been as much of a bombshell for her biographers as it was for everyone else.Contacted by the Guardian, both authors declined to predict the outcome of the current proceeding. But Isikoff sounded optimistic that Willis would survive this latest assault.“How did the relationship between Willis and Wade prejudice any of the other defendants?” Isikoff asked. “There is simply no evidence that it did.”Willis is a daughter of the civil rights movement. In the 1960s, her father, John C Floyd III, migrated from the politics of John F Kennedy and the non-violence of Martin Luther King Jr to the much tougher ideology of the Black Panther Party of Los Angeles, which he co-founded in 1967. After that he became a criminal defense and civil rights lawyer.Isikoff and Klaidman say Floyd’s odyssey gives us “a glimpse into his daughter’s pugnacious personality and her deep-seated loathing of bullies” – both of which were on prominent display when she defended herself in the hearing room.While it was her personal passion that brought Willis into an unwelcome spotlight, it was her own focus on allegations of sexual harassment against her previous boss and mentor that made her election as the first woman district attorney of Fulton county possible. Paul Howard became the first Black person to hold the job of Fulton county DA in 1996, and made Willis a star by giving her some of his Atlanta office’s most famous cases. She became famous as the lead prosecutor in an indictment of 35 public school officials for alleged violations of Georgia’s Racketeer Influenced and Corrupt Organizations (Rico) Act. The Atlanta schools superintendent, six principals, two assistant principals and 14 teachers were accused of faking students’ test scores, in response to the requirements of No Child Left Behind.That law, championed by George W Bush, put schools at risk of losing federal aid if students didn’t meet minimum standards for success on standardized tests. All but one of the defendants was Black, which made the prosecution even more controversial. By the time Howard gave Willis the case she was chief of the office’s trial division. Isikoff and Klaidman say she proved a “hands-on micromanager” who “plunged into every detail of the case”. Its complexity turned out to be the perfect training for Willis to use the same Rico statute to go after Donald Trump and his co-conspirators.One of this book’s most important contributions is to remind us of the breadth and viciousness of the president’s efforts to undermine democracy – and the horrendous effects they had on the lives of decent, honest election officials in every swing state Trump lost.After multiple lawsuits alleging voter fraud were thrown out by nearly every judge who heard them, Trump famously turned his attention to the Georgia secretary of state, Brad Raffensperger, one of several Republicans whose resistance proved heroic. When Trump got Raffensperger and his assistants on the phone, they were shocked by how many QAnon conspiracy theories Trump seemed to have accepted as fact – just because so many of his supporters had retweeted them. A particular favorite of the president’s was the notion there had been 200,000 forged signatures on absentee ballots in Fulton county – even though the total number of absentee votes had been 148,319.skip past newsletter promotionafter newsletter promotionIn the same call, Trump repeated the big lie that the Georgia election workers Ruby Freeman and Wandrea “Shaye” Moss had run between 18,000 and 56,000 bogus ballots through election scanners. Trump said Freeman was “known all over the internet”. This was the same lie promoted by Giuliani, which ultimately cost him a richly deserved verdict of $148m for libeling the two innocent women.In one of the many telling details of Isikoff and Klaidman’s book, the authors remind us that the other hero from that phone call was the Georgia deputy secretary of state, Jordan Fuchs.“Fuchs did what was arguably the single gutsiest and most consequential act of the entire post-election battle,” the authors believe. To protect her boss, she decided to tape the phone call – without telling Raffensperger. After the tape leaked to the Washington Post, it quickly became the single most powerful piece of evidence against the ex-president in any of the four prosecutions he is still facing.When you see all of Trump’s alleged crimes piled together in a single narrative, it is beyond belief that he remains the favorite of a majority of Republican primary voters. But these same facts should surely be enough to guarantee his defeat if he actually gets the chance to face the larger electorate in November.
    Find Me the Votes is published in the US by Twelve More

  • in

    Kamala Harris on Trump: ‘No previous US president has bowed down to a Russian dictator before’

    Kamala Harris on Saturday criticized Donald Trump’s cajoling of Russia to attack Nato allies of the US who don’t pay their dues, saying the American people would never accept a president who bowed to a dictator.The vice-president’s comments, in a wide-ranging interview on MSNBC’s The Weekend, represent some of the strongest criticism to date of Trump’s apparent allegiance to Russian president Vladimir Putin.The Joe Biden White House has previously called the remarks by the frontrunner for the Republican presidential nomination – made last week at a campaign rally in Pennsylvania – “appalling and unhinged”.“The idea that the former president of the US would say that he – quote – encourages a brutal dictator to invade our allies, and that the United States of America would simply stand by and watch,” Harris said. “No previous US president, regardless of their party, has bowed down to a Russian dictator before.“We are seeing an example of something I just believe that the American people would never support, which is a US president, current or former, bowing down with those kinds of words, and apparently an intention of conduct, to a Russian dictator.”Harris, who was interviewed in Germany, where she is attending the Munich Security Conference, also attacked House Republicans who are stalling the Biden administration’s $95bn foreign military aid package.The bill includes money for Ukraine’s defense against the Russian invasion. But it has been disconnected from US border security measures that Republicans insisted they wanted – then voted down.“We need to do our part [to support Ukraine], and we have been very clear that Congress must act,” she said.“I think all members of Congress, and all elected leaders, would understand this is a moment where America has the ability to demonstrate through action where we stand on issues like this, which is, do we stand with our friends in the face of extreme brutality or not?”She said she was confident the $95bn Ukraine and Israel package, which passed the Senate on Monday on a 66-33 vote, would also win bipartisan support in the Republican-controlled House. So far, however, Republican speaker Mike Johnson has refused to allow a vote, and the chamber is in recess.“One point that gives me some level of optimism is we are clear in the knowledge that there is bipartisan support, both in the Senate, which we’ve seen a demonstration of, and the House,” she said.“So let’s put this to a vote in the House, and I’m certain that it will pass. We are working to that end, and we’re not giving up.”Harris was also questioned about Biden’s increasingly tougher approach to Israel’s prime minister Benjamin Netanyahu, with the president warning this week against an escalation of the military onslaught in Rafah without a safety plan for up to 1.5 million trapped Palestinian civilians.“We have been clear that we defend Israel’s right to defend itself. However, how it does so matters,” she said.“Far too many Palestinians, innocent Palestinian civilians, have been killed. Israel [needs to take] concrete steps to protect innocent Palestinians.”But she refused to say whether the US would restrict or halt weapons supplies to Israel if Netanyahu ignored Biden’s urging and pressed ahead with operations in Rafah without civilian safety rails.“We have not made any decision to do that at this point, but I will tell you that I am very concerned that there are as many as 1.5 million people in Rafah who for the most part are people who have been displaced because they fled their homes, thinking they would be in a place of safety,” she said.“I’m very concerned about where they would go and what they would do.” More

  • in

    Trump’s legal woes have now set him back by more than $500m – how will he pay?

    Donald Trump awoke on Saturday facing a stark new reality of legal obligations in excess of half a billion dollars after his stunning defeat in his civil fraud trial a day earlier, and questions swirled over his ability, or intention, to pay.Yet the former president remained defiant late on Friday, insisting in a vitriolic rant from his Mar-a-Lago mansion in Florida that he would win an appeal against a New York judge’s ruling that he must pay more than $350m plus pre-judgment interest for intentional financial fraud stretching more than a decade.Lashing out at the New York attorney general, Letitia James, who brought the case, and state judge Arthur Engoron, who issued the penalty, as “totally corrupt”, Trump slammed what he said was a “sham prosecution” driven by Joe Biden and the Democratic party to prevent him from returning to the White House.“We’ll appeal, we’ll be successful,” he said. “A crooked New York judge ruled that I have to pay $355m for having built the perfect company. Great cash, great buildings, great everything.”The precise amount Trump was ordered to pay is not entirely clear. At a press conference on Friday night, James put the figure at $463.9m. “That represents $363.9m in disgorgement, plus $100m in interest, which will continue to increase every single day until it is paid,” she said.But with the ruling adding to the $83.3m he must pay writer E Jean Carroll from a defamation hearing last month, plus another $5m from the original case last year that found he sexually abused her, Trump’s legal debts are mounting quickly – and are estimated now at about $542m, including interest.Nikki Haley, Trump’s sole remaining rival for the Republican presidential nomination, speculated he would siphon campaign cash from the Republican National Committee (RNC) to pay at least some of it.“I don’t want the RNC to become his piggy bank for his personal court cases,” she told CNN’s The Source.“We’ve already seen him spend $50m worth of campaign contributions … Now we see him trying to get control of the RNC so that he can continue not to have to pay his own legal fees.”Trump has moved to install his daughter-in-law, Lara Trump, as co-chair of the RNC, with other loyalists in leadership positions.Analysts say it’s possible he can delay paying up by appealing Engoron’s ruling. That’s what he did in the first Carroll case by depositing the $5m into a court-controlled account, plus an additional $500,000 in interest required by New York law.But such a strategy would also be costly. One alternative is securing a bond paying only a portion upfront, which would come with interest and fees and the challenge of finding a financial institution willing to front him the money.In the civil fraud case, it will be up to the courts to decide how much Trump must put up as he mounts his appeal. And he may be required to pay the full sum immediately after the appellate court rules, which could come as soon as this summer, according to University of Michigan law professor Will Thomas.“New York’s judicial system has shown a willingness to move quickly on some of these Trump issues,” Thomas said.“When we hear from the first appellate court, that’s a point where money is almost certainly going to change hands.”Bloomberg estimates Trump’s net worth at $2.3bn. But it is unclear how much cash he has on hand. Much of his wealth is tied up in a global real estate portfolio, and James’s team determined in 2020 he had less than $100m in liquid assets.Under the ruling, Trump would still be liable even if the Trump Organization declared bankruptcy. Enforcement of the judgment would be paused with a personal declaration of bankruptcy, but that would further harm his credibility as he pursues a return to the presidency.skip past newsletter promotionafter newsletter promotionThe ruling, meanwhile, also makes it hard for any family member to run the Trump Organization in the near future.Trump’s adult sons – Eric, the company’s chief executive, and Donald Jr – were each fined $4m and banned from serving as officers or directors of any corporation or entity in New York for two years. Donald Trump and two other executives were barred for three.For James, the ruling marks the successful culmination of a case years in the making. Her office has been investigating Trump’s business since 2019, finding that it consistently overvalued its properties and other assets to illegally obtain favorable terms on loans and insurance.One of the most striking examples concerned Trump’s triplex apartment in Manhattan’s Trump Tower, which records showed was reported to be 30,000 sq ft but is closer to 11,000 sq ft.Another was the worth of Mar-a-Lago, his Palm Beach resort. While Engoron valued it at a conservative $18m, Trump continues to insist it is worth “50 to 100 times” that figure.In determining the size of the fine, Engoron agreed with prosecutors that Trump saved about $168m in interest by inflating the value of assets. Another $126m profit came from selling the Old Post Office building in Washington DC that Engoron said Trump could not have bought without false financial statements.In her own press conference on Friday night in Manhattan, James mocked the title of Trump’s bestselling 1987 business advice book.“Donald Trump may have authored The Art of the Deal, but he perfected the art of the steal,” she said. “[He] falsely, knowingly inflated his net worth by billions of dollars to unjustly enrich himself, his family and to cheat the system. This long-running fraud was intentional, egregious, illegal, and he did it, all of this, with the help of the other defendants, his two adult sons, and senior executives at the Trump Organization.“The scale and the scope of Donald Trump’s fraud is staggering. And so is his ego, and his belief that the rules do not apply to him.“We are holding him accountable for lying, cheating and a lack of contrition, and for flouting the rules of all of us. There cannot be different rules for different people in this country, and former presidents are no exception.”The Associated Press contributed reporting More

  • in

    Fani Willis must prove herself before a judge, her voters and the whole country

    When Fani Willis took the stand to trade sharp elbows with lawyers defending Donald Trump and his co-defendants, she stood before three audiences.But Willis only really cares about two of them.The first is an audience of one: the superior court judge Scott McAfee, who will rule sometime two weeks or so from now on whether Willis, the special prosecutor Nathan Wade and the rest of the Fulton county district attorney’s office will continue to handle the Trump trial, or if instead it will be handed to another attorney chosen by the Prosecuting Attorneys’ Council of Georgia.If Willis is bumped off the case, it almost certainly means there will be no resolution before the US presidential election in November, in which Trump is almost certainly going to be the Republican nominee for president again.Willis and her team have been presenting evidence and testimony to rebut questions about financial motivations for pressing the case against Trump by showing how much personal harm Willis and her staff have had to endure in the process. Willis’s father, the venerable civil rights attorney John C Floyd, gave florid testimony today about the death threats and harassment that drove Willis from her home as she prosecuted the case, for example.McAfee recognizes high-drama courtroom confrontations for what they are: irrelevant to the legal question. He must decide if the appearance of impropriety and the legal question of alleged unjust enrichment raised by the defense are sufficient to create an appellate court problem if Trump and others are convicted at trial. Has there been misconduct, and is removing Willis the appropriate remedy under the law if there has been misconduct? That’s the legal question.But it’s not the only issue for Fani Willis, who is up for re-election in 263 days.Until this moment, Willis looked like an unbeatable shoe-in for re-election. She is, arguably, the highest-profile district attorney in the US today, and she’s as recognizable to a Fulton county voter as the president, governor or Georgia’s senators. In a game of name recognition … well, people have stopped mispronouncing her first name in Atlanta now.But the revelation that she had been dating a highly paid office subordinate while working on a trial with the presidency on the line raises questions about her judgment. She may be contemplating a political challenger, who will argue that Willis is not the one to continue the case … assuming it is still in court in November.Her challenge here was to remind voters why they voted for her in the first place: to aggressively confront crime in Atlanta. Willis beat a 20-year incumbent in 2020 amid sharply rising crime and issues with prosecutions by her predecessor. She won in part by arguing that she would get the job done where her previous boss could not.Willis has to make her case to the Fulton county voters that she’s still their best choice. That’s where the sharp elbows and Black cultural callbacks on the stand come from: she’s speaking to the second audience – the primarily Black, majority-female, predominantly Democratic Fulton county electorate who is watching all of this unfold dreading the possibility that the county’s chance to impose justice on the powerful may be slipping through her fingers.By showing her grief and rage, she humanizes herself before this audience, which is likely to be sympathetic to the horrors of a Black professional’s love life aired like a reality television show before the American public as a Trump defendant’s legal ploy.It’s telling, perhaps, that Atlanta’s mayor, Andre Dickens, and the former mayor Shirley Franklin were both in attendance at the hearing on Friday morning, ostensibly as a show of political and moral support for Willis.There is, of course, a third audience. Every other person in the free world.Americans of all political stripes recognize that there’s a lot riding on the outcome of this case. Of all the criminal and civil cases Trump faces today, a conviction in Georgia is the only one for which he is almost certain to do time in prison, because there’s effectively no pardon power to save him. And Trump’s recorded phone call provides powerful evidence for a prosecutor to present to a jury.Voters across the country have a stake in the outcome here. But the only voters that count for Willis’s purposes are the ones that live in Fulton county. And until that changes, she’s not going to care about what they think. More

  • in

    Trump’s hubris has brought about the downfall of his family’s business empire | Sidney Blumenthal

    Judge Arthur Engoron’s ruling on Friday concludes the nearly century-long history of the Trump Organization in New York in disgrace and ruin. For his financial fraud, Donald Trump must pay $355m in fines. He is suspended for three years from doing business in New York. His sons – Donald Jr and Eric, executives of the company – are barred for two years. “New York means business in combating business fraud,” the judge stated in his decision. The Trump brand is now adjudicated to be synonymous with fraud and failure.“In order to borrow more and at lower rates, defendants submitted blatantly false financial data to the accountants, resulting in fraudulent financial statements,” the judge wrote in his decision. “When confronted at trial with the statements, defendants’ fact and expert witnesses simply denied reality, and defendants failed to accept responsibility or to impose internal controls to prevent future recurrences … Their complete lack of contrition and remorse borders on pathological.”The hundreds of millions that Fred Trump bestowed on his son could not prevent him from steering the family legacy on to the rocks.The Trumps were Democrats. They had always been Democrats. Fred Trump had made his fortune through the Democrats. There was no Trump Organization apart from the Democratic organization of Brooklyn. Who Fred knew was what he was worth.In 1977, Fred Trump and Donald Trump reached a pinnacle of acceptance: they were listed as sponsors on the invitation for New York’s Salute to the President, a fundraiser for the Democratic National Committee held in the ballroom of the Waldorf Astoria. The political, corporate and social cream of the city were present to toast Jimmy Carter. The Trumps’ high-dollar donation got them an invitation to the exclusive party at the Upper East Side home of the dinner’s organizer, Arthur Krim, the chair of United Artists.The Trumps mingled there with Governor Hugh Carey, Mayor Abe Beame, Senator Daniel Patrick Moynihan and John Glenn, Hubert Humphrey and Vice-President Walter Mondale. Donald posed for a photo with the president. Between them stood an unsmiling Louise Sunshine, Fred’s executive vice-president of the Trump Organization, his all-purpose lobbyist, and finance co-chair of the New York Democratic party. She was the granddaughter of Barney Pressman, who had founded the Barney’s department store.Donald Trump had been working out of his father’s nondescript office on Avenue Z in Brooklyn. But he was restless being sent as his father’s rent collector. He was intent on conquering the heights of Manhattan, making all the money in the world, basking in the glow of fame and being ushered past the rope line into the pulsating clubs with the celebrities and the models. He had the arrogance and complacency of a pampered heir who wouldn’t have to claw his way upward.Donald was uncontrollable and Fred was controlling. Fred was self-disciplined, meticulous down to his monogrammed shirts and cufflinks, and brutally demanding. He had dispatched the unruly Donald to a military academy in his early teens hoping he would learn to conform. Now he thought he might harness Donald to be useful to the family business.Fred bought a new Cadillac every two years and he wanted Donald to be more than the equivalent of a hood ornament. His older son, Fred Jr, his namesake, had sorely disappointed him. Resisting Fred’s pressure, Fred Jr had gone off to become an airline pilot, only to become an alcoholic, and was at the moment living in the top floor of the Trump home in Queens. Fred had ordered his sons to be “killers”. Fred and Donald derided Fred Jr as a loser. Fred’s hopes devolved on to his second son.View image in fullscreenFred was hardly an outlier among the powerful at Krim’s townhouse. He had helped make many of the New York politicians there. They were among his closest friends, some since the 1930s and 1940s. Donald trailed after Fred through the crowd until finally Fred located the DNC official with whom he had arranged his donation.The DNC official, a friend of mine, recalled that Fred had asked him: “Wouldn’t it be great if Donald got experience in Washington?” Clearly, he wanted to get Donald a gig so that he could make national connections. Donald’s expression was unhappy. He opened his mouth, getting out only a couple of words: “Well, I … ”Fred cut him off before he could say anything else. “Shut the fuck up,” he said sternly. “We didn’t fucking ask you. Who the fuck cares what you think?” And Donald shut up. The official told Fred he would look into it. But Donald wasn’t interested in Washington, at least not then.Donald Trump had crossed the East River into Manhattan with the ambition to be the king of the heap. Walking through Central Park in 1974 with the manager of the bankrupt Penn Central yards he sought to develop, he boasted: “I’ll be bigger than all of them. I’ll be bigger than Helmsley in five years.” To attain the stratospheric level of Helmsley was Donald’s ultimate aspiration.He was referring to Harry Helmsley, the billionaire real estate developer, owner of the Empire State Building and other trademark properties, married to the flamboyant Leona Helmsley, notorious tabloid grist as the Queen of Mean. (In 1988, Helmsley was charged with financial fraud for inflating the value of his buildings and tax evasion, but was judged too frail to stand trial, while Leona was convicted and sent to prison.)Then, Trump and the Penn Central manager walked down Lexington Avenue, where a tabloid headline shrieked about the arrest of a New Jersey mayor for taking an $800,000 bribe. “There is no goddamn mayor in America worth $800,000,” Trump said, according to his biographer, Wayne Barrett. “I can buy a US senator for $200,000.”But Donald had not bought any politicians. He stood on his father’s wealth and connections surveying the island he planned to capture as his own. Donald would catapult to the top by starting at the top.Fred Trump built his real estate empire favor by favor, brick by brick. From the 1930s onward, starting in Flatbush, relying on the New Deal program of the Federal Housing Authority to underwrite loans, he made millions, then tens of millions, then more. He was the biggest operator in Brooklyn. He built thousands of homes and owned tens of thousands of apartments. He didn’t want to edge into the Manhattan market, where the land prices were high and the competition fierce. He had Brooklyn wired.Fred was an indispensable player in the borough’s political machine. His rise in Brooklyn would explain Donald’s calculation about invading Manhattan. In the naked city, Fred’s story was inextricable from that of the Madison Democratic Club. He stood at the center of a dense network of patronage, influence and money. From his relationships and donations flowed land deals and tax abatements. The clubhouse was his cornucopia.Fred’s clout originated with his relationship with the Brooklyn political boss Irwin Steingut, a powerful member of the New York state assembly for 30 years and once the speaker. His chief fundraiser, Abe “Bunny” Lindenbaum, provided the insurance for Fred’s buildings. On Steingut’s recommendation, he became Fred’s attorney. Steingut’s accountant and Lindenbaum’s closest friend, Abe Beame, became the city comptroller.Fred Trump and Beame were friends for 30 years, with Trump financially backing his career for decades. After Steingut’s death in 1952, his son Stanley succeeded him in the assembly and as the Brooklyn boss. Fred’s biggest project, Trump Village, received approval from the city planning commission and the board of estimate in 1960 after Lindenbaum and Steingut lobbied its key members. Fred got a 72% tax write-off on a parcel, too. A week later, Lindenbaum became the city’s new planning commissioner.Beame was elected mayor in 1973 and Stanley Steingut became speaker of the state assembly two years later. Moreover, Hugh Carey had been elected governor in 1974; Bunny and the Trumps were the first donors to his campaign. The Trumps had co-signed a loan for $23,000 to open his headquarters. The influence of the Brooklyn machine – and Fred Trump – was at its peak.Donald not only had his eye on the Penn Central yards but also spotted the seedy Commodore hotel next to Grand Central Station. The part-owners of the Penn Central property were owners of the hotel. He thought he could get a two-for-one bargain. Donald got an agreement from the Hyatt hotels to manage it, but it was non-binding. He needed a huge tax abatement to finance the $80m renovation to pay the mortgage and property taxes. This is when the art of the deal kicked in. Its secret was the friends of Fred Trump.Beame and Steingut got behind a bill in the assembly crafted to provide exactly this unique type of tax abatement. Unfortunately, the assembly was overwhelmed with the city fiscal crisis and adjourned before passing it in the 1975 session. Beame’s administrator for the Lower Manhattan Development Corporation, Michael Bailkin, devised a scheme for Trump to buy the Commodore from Penn Central and donate it to the city, which would pay the taxes to itself and lease it to Trump for 99 years, who would reap the benefits but pay no taxes.Donald hired a lawyer, Bunny Lindenbaum’s son, Samuel “Sandy” Lindenbaum, who would become renowned as the “dean of zoning”. The idea of the 99-year lease wouldn’t fly. If the city owned the hotel, it would have to put it up for sale to public bidding. So Bailkin proposed using the state’s Urban Development Corporation as a vehicle to give the tax exemptions and evade public bidding.Promising this to the brash young Donald was a problem. Mayor Beame had his deputy John Zuccotti check in with Fred, who promised he’d oversee it all. That satisfied Beame, who announced the project as the first of his brand-new business incentive program. But it still had to pass the board of estimate, where there was static from the Hotel Association, led by Helmsley, peeved because its operators would not get the tax abatement under the plan.Louise Sunshine, Fred’s right-hand person in the Trump Organization, also fundraising for Governor Carey’s re-election, happened to be hired just then as the lobbyist for the UDC. She arranged with Carey’s chief counsel, Charles Goldstein, for the city development chief, Richard Kahan, to be appointed the new UDC head, who wrote Donald a letter approving the terms of the Commodore deal. But it still had to pass the hurdles of the board of estimate and the bureau of franchises.Stanley Friedman, the deputy mayor and former secretary of the Bronx Democratic organization, took charge. He enlisted help in wrangling quid pro quos from Roy Cohn, mob lawyer extraordinaire, another heir to power, whose father had been an influential judge in the Bronx. Cohn happened to be the lawyer for the Commodore. The consent agreement was rewritten so that Donald would pay less in franchise fees for using public space than the hotel restaurant would earn in a day. The boards approved the deal.But there was one more requirement. There would be no mortgage unless it was financially guaranteed by a third party. Donald himself didn’t have the money. The banks lacked confidence in him and withheld financing. Fred stepped forward to sign the guarantee. Only then did the banks provide the money.“When it came to the financial bottom line of the deal, Donald was barely a factor,” wrote Wayne Barrett. An investigative reporter for the Village Voice, Barrett was the most dedicated pursuer of fact about Trump’s financial chicanery for decades.The day after Beame left office, with the deal signed, sealed and delivered, Stanley Friedman joined Cohn’s law firm. (He would be convicted of corruption in 1986 and sentenced to prison.)View image in fullscreenThe Commodore deal was the making of Donald Trump. All his father’s powers had been exerted invisibly to move the pieces. Donald entered into Cohn’s demimonde for the first time. While Cohn applied his dark arts to secure the Commodore, he convinced Donald to force his fiancé, Ivana Winklmayr, to sign a harsh pre-nuptial agreement. Donald owed him. Roy was a man for all seasons. Donald brought Roy as his guest to the Carter event. Roy hated Carter.Donald stomped through the city like he was King Kong. He built Trump Tower on Fifth Avenue with ready-mix cement from the mob, the “Concrete Club”, they called it, provided by Anthony “Fat Tony” Salerno, boss of the Genovese crime family, the client of Roy Cohn, and under the supervision of teamster boss John Cody, under the control of Paul Castellano, boss of the Gambino crime family. Cody bought an apartment for his mistress in the completed building without filing a loan application to show his income.(Cody was convicted of labor racketeering in 1982 and sentenced to prison. Salerno was convicted in 1988 and sent to prison. His contract for concrete to build Trump Plaza was listed in his indictment as one of the charges of racketeering. Castellano was assassinated at Sparks Steak House in Manhattan in 1985 on the orders of John Gotti, who assumed control of the Gambino family.)“If people were like me, there would be no mob, because I don’t play that game,” Trump said when asked later about his ties to what he called “OC”, or organized crime. He called himself “the cleanest guy there is”.Fred’s Cadillac bore the vanity license plate “FCT”. (His middle name, from his mother’s family, was “Christ”.) Louise Sunshine arranged a little present for Donald to get his own vanity license plate reading “DJT”.He wanted to shake off the image of the outer borough. He raced in his limo from Fifth Avenue to a red banquette at 21 for lunch with Roy, to leering at the celebs and models frolicking at Studio 54.Donald tried to imitate Fred’s methods, but misunderstood them. Fred had slowly nurtured relationships with the Brooklyn clubhouse. The line between business and friendship was seamless. There were Brooklyn Democratic dinners where Fred brought his family. He hosted lavish parties at the country club, inviting everyone and their families. He knew how to become the godfather. But when Beame left office, Fred’s glory days of connections were fading.Donald was crass, belligerent and bullying. He believed that the conspicuous display of gold-plated wealth showed an irresistible Midas touch and that all publicity was good publicity. He threw $70,000 in campaign contributions at Ed Koch, who replaced Beame, and turned up at his election night victory party to celebrate like he had made Koch.Koch, a former reform Democrat, was voluble and insecure, with a penchant for turning political disagreements into personal battles. Trump yelled at him for easements and tax abatements. Koch detested him. “I wouldn’t believe Donald Trump if his tongue were notarized,” he said.Trump bloated his holdings, emblazoning his name in gold letters on everything he could get his hands on. He bought the Eastern airline shuttle and renamed it the Trump shuttle. He started the United States Football League. He built the Taj Mahal casino in Atlantic City. He dumped Ivana for an actress, Marla Maples.And he floated his greatest scheme of all, a multibillion-dollar complex over the West Side railyards, “a new mini-city on the Hudson River … containing thousands of luxury apartments, the world’s tallest building, a huge shopping mall and a television studio complex that he said would be ‘the largest and most spectacular’ in the world,” according to the New York Times. He called it Television City. In his plan, NBC would relocate from Rockefeller Center. Then he changed its name to Trump City. He would rebrand New York in his own image.After seeming to approve the deal, Koch killed it in 1987. He wouldn’t become in effect Trump’s partner through tax abatements and zoning. The Television City debacle was the reverse of the Commodore bonanza. Trump called Koch “a moron”, and Koch called him “greedy, greedy, greedy”, and said that if he was “squealing like a stuck pig, I must have done something right”. The house of cards began to crumble.Trump tried to cover his financial crisis with stories about his sex life. He leaked to the New York Post a fake quote, supposedly Maples’ statement about his sexual prowess, timed for just after Valentine’s Day 1990, splashed on the front page: Best Sex I Ever Had.Spy magazine, edited by Kurt Andersen and Graydon Carter, had pegged Trump as “a short-fingered vulgarian” from the start. Along with the Village Voice, Spy pointed out Trump’s financial trickery for years. In April 1991, it published a compendium: How to Fool All of the People, All of the Time: How Donald Trump Fooled the Media, Used the Media to Fool the Banks, Used the Banks to Fool the Bondholders, and Used the Bondholders to Pay for the Yachts and Mansions and Mistresses.Trump’s Atlantic City properties were leveraged with debt to the hilt. In November 1991, he failed to meet the debt payment. Fred dispatched a lawyer to buy $3.35m in chips at the Trump Castle casino to give Donald cash to meet the bill. The New Jersey gaming authorities found him guilty of violating the Casino Control Act and fined him $33,000. In 1998, the US Treasury fined Donald’s casino $477,000.Trump filed six bankruptcies. He was forced to sell his airline, the Plaza Hotel on Fifth Avenue and his yacht, named Princess for his daughter Ivanka. The Taj Mahal and the Castle went belly up. Fortune dumped him from its list of billionaires. Forbes reported he had a negative net worth. The New York banks cut him off from future loans. They put him on an allowance to give him a chance to repay part of his debts. His casino company filed for bankruptcy protection in 2014 for the fifth time.Trump eventually found a new lender to guarantee loans in Deutsche Bank. Its records were subpoenaed in the New York state financial fraud case. “The bank did not trust all of Trump’s numbers, but it underestimated the depth of Trump’s lies,” Forbes reported in 2023.What If You Could Have It All? read the chyron to the throbbing beat of the O’Jays’ For the Love of Money, to open The Apprentice television series in 2004, featuring Trump striding as the master of the universe. His limo, his helicopter, his Trump Tower and even the bankrupt Taj Mahal flashed as fantasy images of his brilliant success. He was the top of the list, king of the hill, a No 1.During the 2016 campaign, Donald lied that he was a self-made man who started with a measly $1m loan from Fred. But the New York Times, after reviewing his tax records, determined in 2018 that he had “received the equivalent today of at least $413m from his father’s real estate empire”.Fred died in 1999. He is not here to buy the chips.
    Sidney Blumenthal is a Guardian US columnist. He is a former senior adviser to President Bill Clinton and Hillary Clinton and has published three books of a projected five-volume political life of Abraham Lincoln: A Self-Made Man, Wrestling With His Angel and All the Powers of Earth More

  • in

    With business empire on brink of abyss, tycoon Trump recasts himself as victim

    From Trump Tower on Fifth Avenue to the Trump Building on Wall Street, the Trump World Tower by the United Nations to the Trump International overlooking Central Park, Donald Trump has stamped his name in golden letters on skyscrapers across New York City.This real estate empire was the springboard for Trump’s ascent from tabloid fodder to reality TV stardom, and ultimately the presidency, all built on his self-projected image as America’s most famous businessman.While the reality of Trump’s business acumen – and the true extent of his wealth – have long been questioned, on Friday a New York judge forever tarnished his gilded image, finding Trump and his allies guilty of frauds that “shock the conscience” and a “lack of contrition and remorse borders on pathological”.Trump was ordered to pay $354.9m and was banned from leading a New York business for three years after a court found that he and his associates fraudulently overstated his net worth. The Trump Organization was wrenched from his family’s control – and its future looks far from certain.For decades, the former president has portrayed himself as a brash, bronzed, brilliant businessman who ruled the Manhattan skyline. Whether lecturing Apprentice contestants, charming voters, or bragging to fellow world leaders, he could point to more than a dozen Trump-branded towers as evidence of all he had achieved.Trump is “the archetypal businessman – a dealmaker without peer”, with a name “synonymous with the most prestigious of addresses”, according to his own company: the “very definition of the American success story”.View image in fullscreenBut Judge Arthur Engoron’s ruling is a shocking blow to this image. The same buildings which once embodied the former president’s fame and fortune will, for years, remain supervised by court-appointed monitors. For now, Trump has lost control of the corporation which once provided a stage for his persona.And yet, just as he is separated from his business empire, his political machine is gearing up to propel him back into the Oval Office.Trump has marched closer to the Republican nomination amid – not despite – these legal woes. He has tried to utilize this trial, and the others he faces, to bankroll his comeback campaign. They amount to politicized “witch-hunts”, he tells loyal supporters, suggesting that they, rather than he, are the true targets.Minutes after Trump left the first day of his civil fraud trial in October, his machine sent out a fundraising email. “I just left the courthouse,” it began, claiming that politicians were “weaponizing the legal system to try and completely destroy me” and requesting contributions “of ANY amount – truly, even just $1 – to peacefully DEFEND our movement from the never-ending witch hunts”.View image in fullscreenOver 11 weeks in a Manhattan courtroom, the Trump Organization was publicly exposed to forensic scrutiny for the first time. This is a business that says it has “set new standards of excellence”, affording Trump “the designation of arguably being the preeminent developer of luxury real estate” in the world. Engoron took an altogether different view.Before the trial had even started, he ruled that the former president had committed fraud for years by exaggerating the value of his assets.skip past newsletter promotionafter newsletter promotionNow, having heard the evidence, Engoron has imposed an eyewatering financial penalty. How Trump foots this bill is an open question. While his fortune has been pitted at around $2.3bn, the majority of this is tied up in the very business empire at the heart of this case.The money is still coming in. Trump has proven to be a highly effective fundraiser. His campaign raised about $44m in the second half of last year. His legal battles appear to have provided an additional boost.View image in fullscreenBut beyond his race to regain the presidency, Trump is now grappling with legal penalties that could destroy the personal cash pile he has said is at his disposal. Even before Friday’s decision, he had been ordered to pay $83.3m to E Jean Carroll. The former president claimed in a deposition last year to have “substantially in excess” of $400m – a huge sum, but one that would be wiped out by these bills.But this process has a long way left to run. “There’s enough uncertainty that it’s not an immediate concern,” said Gregory Germain, professor of law at Syracuse University. Trump, who has already appealed Engoron’s initial ruling, and is widely expected to do the same with this decision.View image in fullscreenOn the campaign trail and social media, in the courtroom and the inboxes of supporters, the former president has repeatedly pledged to fight what he argues is a gross injustice. On Friday Trump once again attacked the “tyrannical Abuse of Power” he claims is arrayed against him and the “liquid and beautiful Corporate Empire that started in New York, and has been successful all around the world.”In November, the American people will deliver their verdict on whose story they believe. More

  • in

    Trump, the ‘law-and-order’ candidate, is an adjudicated fraudster | Lloyd Green

    The week-that-was will likely weigh heavily on the 45th president for the months and years to come. On Friday, Arthur Engoron, a New York judge, found Donald Trump and his businesses liable for conspiracy and ordered them to pay $355m. On top of that, the court banned Trump and his two adult sons from serving at the helm of any New York company for three years, while imposing a $4m penalty on both of the boys.In a 92-page decision, Engoron also lacerated Trump’s pretensions of credibility. He repeatedly tagged Trump for his allergy to the truth.“Donald Trump rarely responded to the questions asked, and he frequently interjected long, irrelevant speeches on issues far beyond the scope of the trial,” the decision reads. “His refusal to answer the questions directly, or in some cases, at all, severely compromised his credibility.”He added that the court had “found preliminarily that defendants had a propensity to engage in persistent fraud by submitting false and misleading Statements of Financial Condition … on behalf of Donald Trump”.One footnote in the legal judgment went like this: “Peterson-Withorn, Chase. ‘Donald Trump Has Been Lying About The Size of His Penthouse.’ Forbes, May 3, 2017.”For the record, Trump invoked his fifth amendment right against self-incrimination more than 400 times at deposition. “Anyone in my position not taking the fifth amendment would be a fool, an absolute fool,” he said. It is all of a piece.Trump is on a roll, of sorts. One day earlier, Juan Merchan, a second Manhattan judge, set a 25 March start date for Trump’s trial on state-law felony charges. “Stop interrupting me,” the judge scolded the defendant’s legal team.Merchan also denied Trump’s motion to dismiss the underlying 34-count indictment. According to Manhattan prosecutors, Trump purportedly directed hush-money payments to Stormy Daniels, an adult film actress, and Karen McDougal, an adult model.But Trump’s streak doesn’t end there. Last week, a US court of appeals rejected his demand for absolute immunity. US presidents are not kings, the court reminded us.“We cannot accept former President Trump’s claim that a president has unbounded authority to commit crimes that would neutralize the most fundamental check on executive power,” the unsigned but unanimous opinion read.“We cannot accept that the office of the presidency places its former occupants above the law for all time thereafter.”Then again, the US supreme court may put the case on ice. We may know more next week.Appeals are expensive. Trump will also need to bond or otherwise secure the mammoth-sized judgment. Interest accrues too. Regardless, others must pay for his sins.The forced departure of Ronna McDaniel from the helm of the Republican National Committee signals that Trump intends to make the RNC a personal piggy bank. After essentially self-financing his primary run in 2016, he turned up his palms to face off against Hillary Clinton. According to campaign finance filings, his political committees have shelled out more than $50m in legal fees.The ex-reality show host has not always been awash in cash. “My net worth fluctuates,” Trump once swore. “It goes up and down with the markets and with attitudes and with feelings, even my own feelings.”His casinos have gone bust, his companies bankrupted a half-dozen times. Restructurings pock his borrowings. Trump University is no more.skip past newsletter promotionafter newsletter promotionFilings with the Securities and Exchange Commission, first uncovered by the Guardian in 2016, placed his liquidity at north of $250m as of mid-2011, his wealth at $4.2bn. This past October, Forbes pegged his worth at $2.6bn. He did not make its iconic 400 richest list. “He’s nowhere near as rich as he boasts, nor as poor as some critics claim.”The value of his assets appears to have shrunk even as his liquidity has grown. “I have over 400 – fairly substantially over $400m in cash,” he recently testified. These days, he’s staring at judgments hovering near $450m.The latest blows come on the heels of January’s $83.3m verdict in E Jean Carroll’s second defamation trial. Heading toward November, the “law-and-order” candidate is an adjudicated predator. Lewis Kaplan, the presiding judge in the Carroll cases, stressed that Trump had sexually assaulted her.Guilty verdicts loom as possibilities in both the hush money and election interference cases. Manhattan juries don’t love him, judging by the size of the recent Carroll verdict. DC juries previously convicted Trump’s cronies Steve Bannon, Peter Navarro and Roger Stone. January 6 defendants have also fared poorly.Trump later pardoned Bannon and Stone. He has vowed to do the same for those who stormed the Capitol in his name.Americans aren’t enamored with a convicted felon sitting in the Oval Office. Then again, they haven’t cottoned to the incumbent. By itself, Friday’s ruling will sway few. On the other hand, wavering voters may get off the fence if a criminal conviction or two follow.Days ago, Trump raged against Letitia James and Engoron. He blasted the attorney general as “corrupt”, the judge as “biased”, the case as “rigged”.It’s been nearly a decade since he hosted The Apprentice. The former reality show host sounds scared. Welcome to the theatre of the real.
    Lloyd Green is an attorney in New York and served in the US Department of Justice from 1990 to 1992 More

  • in

    Fani Willis hearing struggles to dent Trump prosecutor’s credibility

    Lawyers for Donald Trump’s co-defendants charged over efforts to overturn the 2020 election in Georgia struggled on Friday to undermine the credibility of the Fulton county district attorney and her top deputy, with whom she had a romantic relationship, in order to disqualify them from bringing the case.The district attorney, Fani Willis, and her deputy, Nathan Wade, both previously testified there was no financial conflict of interest (the defendants alleged Willis hired him to benefit financially) because the relationship started after Wade was retained as a special prosecutor.At an extended hearing, the defendants called Terrence Bradley, a former divorce lawyer for Wade, on the expectation that he would testify that the romantic relationship started before Wade started work on the Trump case on 1 November 2021.The objective, in essence, was to have Bradley to contradict under oath the testimony of Willis and Wade. Had that happened, that could lead the presiding Fulton county superior judge Scott McAfee to discredit, or at least give less weight to, the narrative advanced by the prosecutors.But the lawyers for the defendants were not immediately successful in their approach. Bradley was a particularly reluctant witness and testified he had privileged information about when the relationship started, but not personal knowledge he obtained separate from him representing Wade.That proved to be important because it meant Bradley provided little new evidence to help the defendants as they attempt to have Willis and Wade disqualified from prosecuting them on alleged conflict of interest grounds.The eventual outcome of the hearing – expected to continue potentially next Tuesday for arguments over what legal standards should be applied for disqualification – could have far-reaching implications for the viability of one of the most perilous criminal cases against Trump.If the defendants are able to meet their burden to show a conflict of interest that leads to the disqualification of Willis, it would also mean that the entire district attorney’s office would be disqualified. That would cast into disarray the already complicated racketeering prosecution.After a morning during which Willis did not return to the stand for further testimony – the state told the judge it had no further questions – and two additional witnesses gave evidence that tracked Willis’s narrative from the day before, the defendants called Bradley to testify under subpoena.Roman’s lawyer Ashleigh Merchant wanted Bradley to say on the witness stand what he had texted her in January: the relationship between Willis and Wade had started after they met at a judicial conference, long before Wade was hired to work on the Trump case.But the judge restricted the line of questioning to include information that Bradley learned independent of his legal work representing Wade in the divorce case, because that would be protected by attorney-client privilege protections.That led Merchant to try to overcome the privilege by invoking the so-called crime-fraud exception, which pierces privilege if legal advice is used in furtherance of a crime. The judge ruled that did not apply, but allowed the defendants to contest his decision with a sealed filing after the hearing.In a further twist, Merchant appeared to win a partial victory when Bradley testified that the relationship allegations as initially filed by Merchant earlier this year were accurate.skip past newsletter promotionafter newsletter promotionThat raised the dueling situation that crediting Bradley as a witness meant Willis and Wade had committed perjury, but not crediting Bradley meant he had lied about his former client and committed perjury himself for seemingly no clear reason.The allegations first surfaced in an 8 January motion filed by Merchant, who complained about a potential conflict of interest arising from what she described as “self-dealing” between Willis and Wade as a result of their then-unconfirmed romantic relationship.Roman’s filing, in essence, accused Willis of engaging in a quasi-kickback scheme, in which Wade paid for joint vacations to Florida and California using earnings of more than $650,000 from working on the Trump case. The filing also alleged the relationship had started before he was hired.Whether Willis will be disqualified remains uncertain.Legal experts have generally suggested the evidence to date – there has been almost none, bar Wade’s bank statements showing he paid for a couple of trips – does not show an actual conflict of interest.The potential problem for Willis is that she was previously disqualified from investigating the Georgia lieutenant governor, Burt Jones, over a lower legal standard of “appearance of impropriety”, after she publicly endorsed Jones’s political rival in Jones’s re-election race.The allegations have also threatened to turn the case into political theatre. Trump, the frontrunner for the Republican nomination, has derided the prosecution as scandal-plagued in addition to his usual refrain that the criminal charges against him are a political witch-hunt. More