Frauds and Swindling

Subterms

    More stories

    • 100 Shares129 Views

      in Elections

      Honor Roberto Clemente With a Coin, Congressman Says

      by

      The right fielder for the Pittsburgh Pirates deserves to be commemorated with a coin, Representative Adriano Espaillat says.Good morning. It’s Thursday. Today we’ll find out why a congressman from the Bronx is pressing for a coin to commemorate a baseball player from the Pittsburgh Pirates. We’ll also see what to expect as Donald Trump’s civil fraud trial moves into its final phase.Preston Stroup/Associated PressRepresentative Adriano Espaillat has introduced 49 bills in this session of Congress. One would direct colleges to send information about hate crimes to the federal Department of Education. Another would simplify the requirements for federal assistance after disasters like Hurricane Maria, which devastated Puerto Rico in 2017.Yet another bill would authorize a coin commemorating Roberto Clemente, the superlative right fielder who played for only one team in 18 years in the major leagues, the Pittsburgh Pirates.Why is a congressman from the Bronx cheering on a star of a team that beat the Yankees in the World Series?“I watched him play,” Espaillat said, before talking about how deep the Pirates’ stadium was when Clemente played there — 457 feet to the center-field wall.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber?  More

    • 125 Shares149 Views

      in Elections

      A Troubling Trump Pardon and a Link to the Kushners

      by

      A commutation for a drug smuggler named Jonathan Braun had broader implications than previously known. It puts new focus on how Donald Trump would use his clemency powers in a second term.Even amid the uproar over President Donald J. Trump’s freewheeling use of his pardon powers at the end of his term, one commutation stood out.Jonathan Braun of New York had served just two and a half years of a decade-long sentence for running a massive marijuana ring, when Mr. Trump, at 12:51 a.m. on his last day in office, announced he would be freed.Mr. Braun was, to say the least, an unusual candidate for clemency.A Staten Islander with a history of violent threats, Mr. Braun had told a rabbi who owed him money: “I am going to make you bleed.” Mr. Braun’s family had told confidants they were willing to spend millions of dollars to get him out of prison.At the time, Mr. Trump’s own Justice Department and federal regulators, as well as New York state authorities, were still after him for his role in an entirely separate matter: his work as a predatory lender, making what judges later found were fraudulent and usurious loans to cash-strapped small businesses.Nearly three years later, the consequences of Mr. Braun’s commutation are becoming clearer, raising new questions about how Mr. Trump intervened in criminal justice decisions and what he could do in a second term, when he would have the power to make good on his suggestions that he would free supporters convicted of storming the Capitol and possibly even to pardon himself if convicted of the federal charges he faces.Just months after Mr. Trump freed him, Mr. Braun returned to working as a predatory lender, according to New York State’s attorney general. Two months ago, a New York state judge barred him from working in the industry. Weeks later, a federal judge, acting on a complaint from the Federal Trade Commission, imposed a nationwide ban on him.A New York Times investigation, drawing on documents and interviews with current and former officials, and others familiar with Mr. Braun’s case, found there were even greater ramifications stemming from the commutation than previously known and revealed new details about Mr. Braun’s history and how the commutation came about.The commutation dealt a substantial blow to an ambitious criminal investigation being led by the Justice Department’s U.S. attorney’s office in Manhattan aimed at punishing members of the predatory lending industry who hurt small businesses. Mr. Braun and prosecutors were in negotiations over a cooperation deal in which he would be let out of prison in exchange for flipping on industry insiders and potentially even wearing a wire. But the commutation instantly destroyed the government’s leverage on Mr. Braun.The investigation into the industry, and Mr. Braun’s conduct, remains open but hampered by the lack of an insider.At multiple levels, up to the president, the justice system appeared to fail more than once to take full account of Mr. Braun’s activities. After pleading guilty to drug charges in 2011, Mr. Braun agreed to cooperate in a continuing investigation, allowing him to stay out of prison but under supervision for nine years — a period he used to establish himself as a predatory lender, making violent threats to those who owed him money, court filings show.Since returning to predatory lending after being freed, Mr. Braun is still engaging in deceptive business tactics, regulators and customers say.In working to secure his release, Mr. Braun’s family used a connection to Charles Kushner, the father of Jared Kushner, Mr. Trump’s son-in-law and senior White House adviser, to try to get the matter before Mr. Trump. Jared Kushner’s White House office drafted the language used in the news release to announce commutations for Mr. Braun and others.In a telephone interview, Mr. Braun said he did not know how his commutation came about.“I believe God made it happen for me because I’m a good person and I was treated unfairly,” he said, adding that his supporters tried “multiple paths” to get him out of prison but he had no idea which one succeeded.He said the 10-year sentence he received for marijuana trafficking was excessive and made him a victim of the criminal justice system. He denied any wrongdoing as a lender, and insisted that he had never talked to prosecutors about cooperating in the criminal predatory lending investigation.He said he had never met Jared Kushner. And he said a picture from April 2022, showing him and his wife on a golf course with the former president, had nothing to do with the commutation but was a chance three-minute encounter during a visit to a Trump property in Florida for a Passover event.“I didn’t meet him because of what happened, I just happened to be there the same time,” Mr. Braun said.Mr. Braun’s commutation highlights what former administration officials say were major problems at the Trump White House as it considered clemency applications: the lack of rigorous vetting of applications and the sidelining of the Justice Department, which has traditionally screened candidates.Mr. Kushner took a major role in the less structured vetting process that resulted in Mr. Braun’s commutation. The Justice Department investigators from Manhattan involved in the cooperation negotiations with Mr. Braun were never consulted.As other convicts seeking clemency did, Mr. Braun’s family retained Alan Dershowitz, the prominent lawyer and Trump ally who worked with Jewish organizations pushing for pardons, at least one of which had received financial support from the Kushner family.Mr. Dershowitz, who represented Mr. Trump in his first impeachment, had a direct line into Mr. Kushner’s office, and succeeded in helping win clemency from Mr. Trump for a number of other people. Mr. Dershowitz said he did not remember what steps he took to help Mr. Braun but said they were minimal.Jared Kushner declined to comment, and Charles Kushner hung up when called by a reporter, as did Jacob Braun, Mr. Braun’s father. The U.S. attorney’s office in Manhattan did not respond to messages seeking comment.A spokesman for Mr. Trump said all pardon applications “went through a vigorous vetting and review process,” but he did not address specific questions about Mr. Braun’s commutation.William P. Barr, a Trump attorney general who had left by the time of the Braun commutation, said when he took over the Justice Department he discovered that “there were pardons being given without any vetting by the department.”Mr. Barr added that he told Trump aides they should at least send over names of those being considered so the department could thoroughly examine their records. While the White House Counsel’s Office tried to do so, the effort fell apart under the crush of pardon requests that poured in during the final weeks before Mr. Trump left office, according to people with direct knowledge of the process.Mr. Trump boarding Air Force One for the last time on Jan. 20, 2021. He pardoned Mr. Braun in the final hours of his presidency.Pete Marovich for The New York TimesMarc Short, the chief of staff to Mr. Trump’s vice president, Mike Pence, said when the vice president’s office was approached by Mr. Trump’s aides about clemency applications, it opted not to participate.“The pardon process at the end of the administration was so unseemly it would make the Clintons blush,” Mr. Short said, referring to the final-days pardons issued by President Bill Clinton — including one to the fugitive financier Marc Rich, whose ex-wife donated $450,000 to Mr. Clinton’s presidential library.Threats and a 10-Year SentenceMr. Braun’s path to receiving a last-minute commutation began in 2009, when the U.S. attorney’s office in Brooklyn, working with the Drug Enforcement Administration, raided what prosecutors said was a stash house for a marijuana smuggling ring run by Mr. Braun.When Mr. Braun found out about the raid, he rented a car and drove 25 hours straight from Florida to an Indian reservation in upstate New York where, dressed in all black, he was smuggled into Canada, according to court filings. He then fled to Israel.The Justice Department placed him on a special Interpol list that asked Israel to apprehend him. By 2010, he was back in New York, the Justice Department had charged him and he was behind bars.In the days after his arrest, prosecutors asked a federal judge to keep him in jail until he went on trial. The prosecutors said Mr. Braun could not be deterred and was violent or willing to use the specter of violence against those who owed him money or might turn on him. Mr. Braun, the prosecutors said, had access to millions of dollars in untraceable cash, and was willing to do anything to stay out of prison.The judge ordered that Mr. Braun be held pending trial. After nearly a year and a half in custody, Mr. Braun agreed to plead guilty. As part of the plea deal, he began cooperating secretly with the government’s investigations into other drug smugglers, particularly higher profile ones abroad, according to a former law enforcement official, who spoke on the condition of anonymity to discuss the internal workings of an investigation.In exchange, the prosecutors agreed to release Mr. Braun from jail, putting him on house arrest and delaying his sentencing on the drug charges while they pursued new cases with his help. It is unclear what information Mr. Braun provided the authorities or whether it led to convictions.Often, a cooperator can remain free for a few months by providing investigators with useful information. Sometimes, a court will hold off sentencing for a year or two as the cooperation continues. Throughout the process, federal authorities are supposed to monitor cooperators to ensure they do not break the law.For reasons that remain unexplained, Mr. Braun was permitted by the U.S. attorney’s office in Brooklyn to live relatively freely for nearly the next decade, and he was able to turn his focus to an enterprise rife with cash and threats: providing loans to struggling small businesses that often had nowhere else to turn.Former prosecutors and defense lawyers said they had never heard of a defendant being allowed to delay sentencing for such a long period or using his freedom to engage in the conduct he did. A spokesman for the Brooklyn federal prosecutor’s office declined to comment on Mr. Braun’s case.The business Mr. Braun entered is known by many names: the merchant cash advance industry, predatory lending or, in the view of some law enforcement officials, loan sharking.Small businesses — like restaurants and contractors — have long faced a problem: They need cash on a daily basis to buy ingredients and supplies, and pay employees so they can operate while awaiting customer payments.Banks often won’t lend to them, especially small firms with troubled credit histories, providing an opening for the merchant cash advance business to offer them financing on strict, sometimes usurious, terms that include high-interest rates and exorbitant fees. (Technically, they provide cash in exchange for a percentage of future revenues, an arrangement that typically gives them access to the borrower’s books and sometimes the borrower’s bank accounts.)An examination of court records by The Times found that between when the U.S. attorney’s office in Brooklyn first let him out of prison in 2011 and when he reported to prison in 2020, Mr. Braun was accused of violently threatening eight people who owed him money. Another man accused Mr. Braun in a lawsuit of shoving him from the deck of a house in Staten Island in 2018.Mr. Braun eventually reported to the federal prison in Otisville, N.Y., in 2020.Mike Segar/ReutersAmong those threatened was a real estate developer, who said Mr. Braun told him: “I will take your daughters from you,” according to court documents.Another borrower said in an affidavit Mr. Braun told him, “Be thankful you’re not in New York, because your family would find you floating in the Hudson.”Over that time, companies connected to Mr. Braun made 1,900 fraudulent and illegal loans, some with interest rates greater than 1,000 percent, according to the New York State attorney general.Even as Mr. Braun was starting to become a threatening presence, the U.S. attorney’s office in Brooklyn actually gave him more freedom. In May 2017, prosecutors and probation officers approved Mr. Braun being removed from house arrest.Five months later, Mr. Braun threatened the rabbi of a synagogue that had borrowed money from him, according to New York’s attorney general. Mr. Braun told the rabbi he would beat and “publicly embarrass him,” adding: “I am going to make you bleed” and “I will make you suffer for every penny.”Nearly a decade after he was first charged in the drug case, prosecutors scheduled his sentencing. Anonymous letters accusing him of violent threats were then filed on the docket of the judge overseeing his case.Despite his cooperation with the ongoing drug investigations, the judge sentenced him to 10 years in prison. Mr. Braun tried to appeal, but weeks before the pandemic hit in early 2020, he reported to the federal penitentiary in Otisville, N.Y.In prison, Mr. Braun’s legal troubles actually worsened. In June 2020, New York’s attorney general and the Federal Trade Commission, which was run by a Trump appointee at the time, sued him for his role as a predatory lender. The New York attorney general credited reporting by Bloomberg News — which in 2018 first documented Mr. Braun’s business practices and revealed last year that he had returned to predatory lending — as the impetus for the suit.At the same time, a dogged New York Police Department detective named Joseph Nicolosi, who was assigned to work as an investigator for the U.S. attorney’s office in Manhattan, was trying to build a wide-ranging criminal case focused on predatory lenders.The inquiry faced a big challenge. Unlike many financial fraud cases, where the government relies on documents to prove charges, federal prosecutors concluded they needed something more in this case: a turncoat to flip on higher-ups, explain the intricacies of lending agreements, say they knew what they were doing was wrong and serve as a narrator on the witness stand.Finding that witness was proving difficult, but investigators believed they had a strong candidate sitting behind bars.So in the fall of 2020, Mr. Nicolosi drove to Otisville to meet with Mr. Braun. Mr. Nicolosi had previously tried to flip Mr. Braun when he was free, but now Mr. Nicolosi — armed with a possible get-out-of-jail card in exchange for cooperation — had leverage over him as he sat marinating in the misery of federal prison.At the meeting, which Mr. Braun’s lawyer attended, both sides discussed what a deal could look like.Mr. Braun made clear he would do anything the government asked of him — including wearing a wire to record calls with his former business partners — if the government would agree not to prosecute him for his role in the lending business, according to a person familiar with the matter.Ties to the KushnersNegotiations between Mr. Braun and prosecutors stretched into the final days of Mr. Trump’s presidency. But what the prosecutors did not know was that Mr. Braun, his family and allies were pursuing an entirely different effort to help him regain his freedom through the White House’s clemency process. And among the channels they were exploiting was a tie to the Kushner family.Mr. Braun had ties to the family of Jared Kushner, Mr. Trump’s son-in-law and a former White House senior adviser.Doug Mills/The New York TimesMr. Braun, The Times found, was in the inaugural class of the Kushner Yeshiva High School in Livingston, N.J., which was heavily funded by Jared Kushner’s family. Mr. Braun enrolled in its first freshman class, alongside Jared Kushner’s youngest sister, Nicole.In an interview, a merchant cash advance dealer recounted how a cousin of Mr. Braun — whom Mr. Braun put in charge of his business when he went to prison and who took on a major role in trying to get him out — had told him in the wake of the commutation that Mr. Braun’s father, Jacob Braun, had sought help from Jared Kushner’s father, Charles Kushner, about getting their pleas for a commutation before Mr. Trump.The cousin, Isaac Wolf, was said to have recounted that Charles Kushner and Jacob Braun had known each other for many years. Mr. Wolf credited the Kushner family with coming through for Mr. Braun, the merchant cash advance dealer said, speaking on the condition of anonymity because he did not want to be publicly associated with Mr. Braun.Others who dealt with Mr. Braun also later relayed to investigators that they had been told that the Braun family helped secure the commutation by relying on their connections to the Kushner family.The Brauns also retained Mr. Dershowitz, a Trump ally who developed such a strong relationship with Jared Kushner that he nominated Mr. Kushner for the Nobel Peace Prize for his work on Middle East peace 10 days after Mr. Trump left office.Mr. Dershowitz said Jacob Braun would call him regularly.“Every single Friday by 3 o’clock in the afternoon: ‘Hi this is Jacob Braun, I’m so upset my son is still in prison, what can you do? It’s unfair, he’s a good boy,’” Mr. Dershowitz recounted.Mr. Dershowitz said he handled so many clemency requests that he could not recall what he did for Mr. Braun, whom he might have talked to at the White House about his case or how much he was paid. But he said his involvement was minimal, perhaps just a phone call.In the chaotic final weeks of the Trump presidency, the volume of clemency requests overwhelmed the White House Counsel’s Office. Requests were being fielded by numerous White House officials — and many came in through Mr. Kushner’s office.It is unclear what type of due diligence, if any, the White House did on Mr. Braun. The New York attorney general and the F.T.C. had put out news releases about their civil actions against him in June 2020, and the suits they filed were a matter of public record. An inquiry to the Justice Department could have revealed the plea deal discussions.Jacob Braun, Mr. Braun’s father, made contact with and retained Alan Dershowitz, seen in a 2015 photo, the prominent lawyer and Trump ally who was active in seeking clemency for convicts.Todd Heisler/The New York TimesJust hours before Mr. Trump left office on Jan. 20, 2021, the White House sent out the news release, written by Mr. Kushner’s office, announcing Mr. Braun’s commutation, along with similar summaries for the 143 convicts who received pardons and commutations in the final batch, according to a person familiar with the matter. Mr. Kushner thought it was important to honor each person granted clemency with a personalized write-up, the person said.The release misspelled Mr. Braun’s first name. And it overstated the time he had served in prison.“Upon his release, Mr. Braun will seek employment to support his wife and children,” the release said.The federal investigators in Manhattan learned of the commutation early that morning, immediately calling Mr. Braun’s lawyer to express their fury over how the president had undercut his own department’s investigation by removing all the leverage prosecutors had over Mr. Braun.In the weeks that followed, investigators made another attempt to reach a cooperation deal with Mr. Braun, meeting with him in person. But no longer needing help getting out of prison, Mr. Braun essentially called their bluff, signaling that if they thought they had a case against him they should indict him. Since then, the prosecutors have brought no charges against Mr. Braun or anyone else with ties to him in the industry.Back in BusinessJust a few months after his release, Mr. Braun returned to working in the merchant cash advance business.Amid the ongoing suits against him by state and federal regulators, he remained in a relatively behind-the-scenes role. While he would make major decisions, he would use an email account that did not include his name, his name was left off business documents and his interactions with customers were limited, according to court documents and a former merchant cash advance dealer.But in the experience of at least one borrower who dealt with him, his business practices remained unchanged.Dr. Robert Clinton is a North Carolina physician who during the pandemic turned his urgent care facility into a Covid testing center. He turned to merchant cash advance dealers because it took months for insurance companies and the federal government to reimburse him.Mr. Braun’s companies made arrangements with Dr. Robert Clinton for loans and eventually pushed him to the brink of financial ruin.Kate Medley for The New York TimesRelying on similar tactics to what he was accused of employing before he went to prison, the companies affiliated with Mr. Braun withheld some of the financing they had agreed to provide Dr. Clinton but charged him interest on the full amount, imposed heavy fees with little or no warning and unilaterally withdrew money from Dr. Clinton’s bank accounts, according to court documents.At one point, another merchant cash advance dealer who had lent money to Dr. Clinton called him in a panic to warn about Mr. Braun.“You gotta get away from him and pay him off — we are all afraid of him — anytime Jon Braun is involved he could seize your assets, block your bank accounts,” the other merchant cash advance dealer told Dr. Clinton, in the doctor’s recounting of the conversation.As Dr. Clinton’s finances deteriorated, he got a call from a man who claimed his name was Mike Wilson and that he was working for one of the Braun-affiliated lenders. The man told Dr. Clinton that he would send a private jet down to pick him up so he could bring expensive watches he had to New York to use as collateral for the money he owed, Dr. Clinton said.In an apparent slip-up during conversations with Dr. Clinton at the time, the man said: Refer to me as Jon.Dr. Clinton rejected the idea and, with help from a lawyer, Shane Heskin, sued the Braun-affiliated companies, saying they had fleeced him for over a million dollars.A major portion of the suit was dismissed because North Carolina usury laws provided no protection for Dr. Clinton. Now, Dr. Clinton — who still owes other merchant cash advance dealers several million dollars — spends his days doing some telemedicine and the rest of his time trying to get money back from insurance companies and the federal government.In a filing this summer, the New York attorney general said Mr. Braun, through his companies, “continues to commit usury.”Mr. Braun continues to portray himself as a victim of an unfair criminal justice system.“What is so bad about me?” he said in the interview with The Times. “I never hurt anybody, never did anything wrong to anybody.”Mr. Braun and his companies put liens on Dr. Clinton’s business, leading to cascading financial problems that Dr. Clinton said cost him $1.6 million.Kate Medley for The New York TimesMatthew Cullen More

    • 88 Shares149 Views

      in Elections

      Israel’s ‘Large Attack’ on Gaza, and More

      by

      The New York Times Audio app is home to journalism and storytelling, and provides news, depth and serendipity. If you haven’t already, download it here — available to Times news subscribers on iOS — and sign up for our weekly newsletter.The Headlines brings you the biggest stories of the day from the Times journalists who are covering them, all in about 10 minutes.The Israeli military announced that its forces had fully encircled Gaza City and were carrying out “a significant operation” in the Gaza Strip late on Sunday.Mohammed Saber/EPA, via ShutterstockOn Today’s Episode:Israel Announces “Large Attack” as Communications Blackout Cuts Off GazaBlinken Meets With Palestinian and Iraqi Leaders in Bid to Contain Gaza WarTrump’s Credibility, Coherence and Control Face Test on Witness StandTrump Leads in 5 Critical States as Voters Blast Biden, Times/Siena Poll FindsEmily Lang More

    • 163 Shares189 Views

      in Elections

      Did Fake Donors Give Eric Adams Real Money? The F.B.I. Wants to Know.

      by

      A search at the home of Mayor Eric Adams’s fund-raising chief sought information about a so-called straw donor scheme.It is a type of scheme that took down New York’s lieutenant governor last year, and sank the 2013 mayoral campaign of a top Democratic contender: the use of so-called straw donors to funnel illegal contributions to candidates from secret sources.Now, for the second time, the campaign of Mayor Eric Adams is being scrutinized for the same thing.On Thursday, the F.B.I. searched the home of Brianna Suggs, Mr. Adams’s chief fund-raiser, as part of an investigation into whether his campaign had received illegal foreign campaign contributions from the Turkish government and Turkish nationals, disguised as coming from U.S. donors who had not actually given their own money, according to a search warrant.And in July, six men were indicted in Manhattan in connection with a similar scheme, accused of funneling thousands to Mr. Adams’s campaign. Two brothers have pleaded guilty to a misdemeanor conspiracy charge in the case, and the news outlet The City and other organizations have found additional inconsistencies in donations to the mayor’s campaign.Neither Mr. Adams nor Ms. Suggs have been accused of wrongdoing, and Mr. Adams has denied any knowledge of illegal contributions. But both investigations appear to be focused on whether donors who were eager to get Mr. Adams’s attention sought to mask large donations by funneling them through straw donors — and on who might have coordinated that effort.The inquiries also raise questions about whether Mr. Adams’s campaign was properly vetting its donations to root out abuse. Andrew Yang’s rival 2021 mayoral campaign had two staff members vet donations over $100, according to a person who was familiar with the matter.A lawyer for Mr. Adams’s 2021 campaign, Vito Pitta, said in an email that the campaign had worked to flag and investigate any questionable contributions rigorously. Mr. Pitta said the campaign had received over 10,000 donations, and had worked to match handwriting and signatures, review donors’ affirmation forms and more.In New York City, small donations are particularly appealing. A generous matching program provides $8 in public funds for every $1 donated. That turns the maximum matched donation of $250 into $2,250, a potential enticement for anyone seeking to multiply their money.“That’s probably the dumbest way to try to funnel money into trying to influence a candidate,” said John Kaehny, the executive director of the government watchdog group Reinvent Albany. “They’re all looked at by the Campaign Finance Board, which has the most extensive vetting and audit process in the United States. I think it’s actually a sign of amateurism.”The city’s Campaign Finance Board examines donations closely and has pored over those to Mr. Adams’s first mayoral campaign.Mr. Adams, a moderate Democrat and former police captain, has been involved in politics for decades, and his fund-raising tactics have repeatedly pushed the boundaries of campaign-finance and ethics laws.As a state senator, he became embroiled in a scandal after a committee he led helped choose a provider of video-lottery machines at Aqueduct Racetrack.And according to an indictment in the Manhattan case, a retired police inspector who worked and socialized with Mr. Adams told one prospective donor that Mr. Adams “doesn’t want to do anything if he doesn’t get 25 Gs” — a reference to the $25,000 minimum he expected for attending a campaign fund-raising event.The early-morning search at Ms. Suggs’s Brooklyn home came as part of a broad public corruption investigation. Ms. Suggs, 25, is in the mayor’s inner circle and close with Ingrid Lewis-Martin, Mr. Adams’s longtime top aide and confidante, who has taken an active role in his campaigns and those of others.The warrant suggested that foreign nationals had made campaign contributions through a straw donor scheme.The warrant authorized agents to seize evidence related to payments or reimbursements made to employees of KSK Construction Group in Brooklyn, “or other persons serving as conduits for campaign contributions to the Adams Campaign originating from Turkish nationals.”City campaign finance records reflect contributions to Mr. Adams’s first mayoral campaign from 11 KSK employees, all on May 7, 2021, totaling nearly $14,000. Nine of the 11 were in the identical amount of $1,250; most were eligible to earn matching funds for the campaign, the records show.Ten years ago, John Liu, the city comptroller at the time, was a top contender for mayor when an investigation into his campaign uncovered a scheme to funnel money through straw donors.Two of his former associates were convicted in the scheme in 2013, including Jia Hou, a former Liu campaign treasurer who was in her 20s. Mr. Liu, who is now a state senator representing a Queens district, was not charged, but his mayoral campaign never recovered and he finished fourth in the Democratic primary.Last year, Brian Benjamin, New York’s lieutenant governor at the time, resigned after he was indicted in what federal prosecutors described as a brazen scheme that appeared to involve straw donors. Mr. Benjamin was accused of accepting thousands of dollars in illegal donations from developer for his 2020 State Senate campaign and his unsuccessful 2021 bid for New York City comptroller, the indictment said. (A federal judge later dismissed bribery charges against Mr. Benjamin, but let two counts of falsifying records related to straw donations stand.)Chris Coffey, a Democratic political strategist and Mr. Yang’s campaign manager, said donors did not always understand that it was illegal to contribute money in someone else’s name.“Donors are often oblivious to campaign finance,” he said. “They think it’s like donating to a charity where you can be reimbursed. It’s added pressure for every campaign to make sure folks know the rules.”Whether Mr. Adams knew any details about potential straw donors to his campaign, he has given the appearance that he is open to being influenced, Mr. Kaehny of Reinvent Albany said.“There’s a big concern that the city is for sale and that New York has gone back to the bad old days where pay to play and bribery were just a part of political life,” he said. More

    • 138 Shares119 Views

      in Elections

      Jenna Ellis, Former Trump Lawyer, Pleads Guilty in Georgia Election Case

      by

      Three lawyers indicted with Donald Trump for trying to overturn the 2020 election results will now cooperate with prosecutors in the racketeering case.Jenna Ellis, a pro-Trump lawyer who amplified former President Donald J. Trump’s baseless claims of election fraud as part of what she called a legal “elite strike force team,” pleaded guilty on Tuesday as part of a deal with prosecutors in Georgia.During a public hearing Tuesday morning in Atlanta, Ms. Ellis pleaded guilty to a charge of aiding and abetting false statements and writings. She is the fourth defendant to plead guilty in the Georgia case, which charged Mr. Trump and 18 others with conspiring to overturn the 2020 presidential election in Mr. Trump’s favor.Ms. Ellis agreed to be sentenced to five years of probation, pay $5,000 in restitution and perform 100 hours of community service. She has already written an apology letter to the citizens of Georgia, and she agreed to cooperate fully with prosecutors as the case progresses.Prosecutors struck plea deals last week with Kenneth Chesebro, an architect of the effort to deploy fake Trump electors in swing states, and Sidney Powell, one of the most outspoken members of Mr. Trump’s legal team in the aftermath of the 2020 election.Late last month, Scott Hall, a bail bondsman charged along with Ms. Powell with taking part in a breach of voting equipment and data at a rural Georgia county’s elections office, pleaded guilty in the case.Fani T. Willis, the district attorney in Fulton County, Ga., obtained an indictment of the 19 defendants in August on racketeering and other charges, alleging that they took part in a criminal enterprise that conspired to interfere with the 2020 presidential election in Georgia. More

    • 138 Shares199 Views

      in Elections

      Trump’s Trial Starts Monday. It Will Spotlight What He’s Really Worth.

      by

      The judge in the civil case has already decided Donald J. Trump inflated his financial statements. Now, he will make rulings that will affect Mr. Trump’s future as a businessman.Follow our live coverage of Trump’s civil fraud trial.From his earliest days as a real estate developer to his renegade run for the White House, Donald J. Trump honed a very particular skill: the art of the boast.“I look better if I’m worth $10 billion than if I’m worth $4 billion,” he once said, disputing his ranking on the Forbes billionaires list.After decades of exaggerating with impunity, Mr. Trump will go on trial Monday, facing a lawsuit brought by New York’s attorney general, Letitia James, that accuses him of inflating his riches by billions of dollars and crossing the line into fraud. It will be the first of several government trials he will face in the coming year, a procession of high-stakes courtroom battles that coincide with his third White House run.And it will be an avidly scrutinized spectacle that will lift the curtain on Mr. Trump’s reputation as a businessman, a core piece of his identity.Ms. James’s civil case, separate from Mr. Trump’s four criminal indictments, accuses the former president, his adult sons and their family business of inflating the value of Mr. Trump’s assets to secure favorable loan terms from banks. Mr. Trump, who has denied wrongdoing, is expected to attend the opening day of the trial and eventually will be called to testify.Before the trial even begins, Mr. Trump is losing. The New York State Supreme Court judge overseeing the case ruled last week that Mr. Trump had persistently committed fraud, deciding that no trial was needed to determine the veracity of the claims at the core of Ms. James’s lawsuit. The judge, Arthur F. Engoron, also imposed a heavy punishment, stripping the Trumps of control over their signature New York properties — a move that could crush much of the business known as the Trump Organization.Ms. James is now asking for more from Justice Engoron, who will determine the outcome of the trial himself; there will be no jury. She wants Mr. Trump to be fined as much as $250 million and to be permanently barred from running a business in New York. If she succeeds, the former president would be unceremoniously evicted from the world of New York real estate that made him famous.The New York attorney general, Letitia James, brought the case under a state law that gives her sweeping power.Hiroko Masuike/The New York TimesWhile there is no doubt that the former president is worth a lot of money, the trial will determine how much he and his adult sons exaggerated that wealth and what the ultimate consequences will be.Howard M. Erichson​, a professor at Fordham Law School who specializes in civil procedure, emphasized that Justice Engoron’s earlier decision had already resolved the question of fraud at the heart of the case. What remained were details, he said.“But those details are important,” he said, “Because those details determine what Donald J. Trump and the Trump Organization will be prohibited from doing, as well as the size of any civil penalty.”Until last week, it appeared as if the trial might not start on time, or have much impact on the former president. Mr. Trump had sued Justice Engoron and Ms. James, claiming that they had ignored an appeals court decision in June that raised the prospect that some of the accusations were too old to proceed to trial. The appeals court granted a brief pause while it considered his case.On Thursday, the appeals court rejected that last-ditch effort, clearing the way for the trial to begin.Mr. Trump has accused Ms. James and Justice Engoron, who are both Democrats, of carrying out a political crusade against him. He has called the judge “deranged” and Ms. James, who is Black, a racist.The former president and his sons, Donald Trump Jr. and Eric Trump, who took the reins of the family business when their father ascended to the White House, are all expected to be called to the witness stand. Ms. James has already questioned Mr. Trump twice under oath, though at one session he invoked his Fifth Amendment right against self-incrimination. A lawyer for Ms. James indicated last week that Mr. Trump will be one of the last witnesses called.Harlan Levy, who served as chief deputy New York state attorney general under one of Ms. James’s predecessors and is now a partner at Foley Hoag, called the former president’s testimony “a wild card.”Whether or not Mr. Trump ultimately takes the stand, Ms. James’s trial kicks off what is shaping up to be one of the most painful periods in his long public life.In March, he will stand trial on federal criminal charges for his effort to overturn the results of the 2020 election. In May, the federal case accusing him of mishandling classified documents and obstructing the government’s efforts to wrest them back is scheduled to go to trial. And after that, he will face two criminal trials from local prosecutors: one in Manhattan, where he was charged related to hush-money payments to a porn star, and the other in Georgia, where he is accused of racketeering for trying to alter the outcome of the state’s vote in the election.The criminal consequences in those cases are starker than the punishments Ms. James is seeking in her civil proceeding; in some of the proceedings, Mr. Trump could face years behind bars.All the legal peril, however, has only helped him politically. Mr. Trump is running far ahead of the rest of the Republican field — his polling went up after he was first indicted this spring — and is a heavy favorite for the 2024 nomination.Yet even as he thrives in the race, Mr. Trump faces a threat to the heart of his identity: Ms. James’s case rips away the facade of unlimited wealth that he is most proud of and that provided the platform for his political rise.The trial will begin at 10 a.m. at the New York State Supreme Court Building on Foley Square in Lower Manhattan, which is emblazoned with the slogan “the true administration of justice is the firmest pillar of good government.”The witness lists suggest that the trial could last months — and will involve a who’s who of Mr. Trump’s universe. More than 50 people are on Ms. James’s list — including Allen H. Weisselberg, the Trump Organization’s former financial gatekeeper who testified in the company’s criminal tax fraud trial last year and who is also a defendant in this case. The list may shrink, and although the trial was scheduled to last nearly until Christmas, it is likely to be shorter.Presiding over it all will be Justice Engoron, a charismatic and eccentric judge who has been a thorn in the side of Mr. Trump and his lawyers for more than a year.Justice Engoron maintains a light atmosphere in the courtroom, often ribbing the lawyers, particularly Christopher M. Kise, who represents Mr. Trump. But he has been harsh at times: Even before he removed Mr. Trump’s control of his New York companies last week, he fined the former president $110,000 for failing to comply with a subpoena. And he fined Mr. Trump’s lawyers $7,500 each for repeating arguments that he had previously rejected.Donald Trump Jr., far left, and Eric Trump took the reins of the family business when their father ascended to the presidency. Drew Angerer/Getty ImagesThose defense arguments essentially amounted to no harm, no foul. Mr. Trump, his lawyers argued, is accused of misleading banks that actually made money from their dealings with him. He never missed a loan payment, and the banks did not rely on the financial statements that Ms. James believes are a work of fiction.But Justice Engoron noted in his ruling last week that a powerful state law allows Ms. James to pursue “persistent fraud” without having to show that a defendant actually intended to defraud anyone, or that their actions resulted in financial loss — a lower bar than most fraud cases. It also affords drastic remedies, empowering her to seek steep financial punishments and the cancellation of Mr. Trump’s certificates to operate a business in New York.Justice Engoron’s decision last week went property by property — from Trump Tower on Fifth Ave to his Mar-a-Lago estate in Florida and a golf course in Scotland — concluding that Mr. Trump had in fact engaged in fraud as Ms. James said. (The accusations concern some of Mr. Trump’s properties outside New York, but any consequences would apply to his assets within the state.)Take, for example, Mr. Trump’s triplex apartment in Trump Tower. Ms. James accused Mr. Trump of overestimating its size, saying it was 30,000 square feet, when it was actually about 11,000. Justice Engoron noted that Mr. Trump’s lawyers had “absurdly” suggested that the calculation of square footage was subjective.“A discrepancy of this order of magnitude, by a real estate developer sizing up his own living space of decades, can only be considered fraud,” he wrote. The matters still to be hashed out at trial will require Ms. James to show that Mr. Trump intended to commit fraud and may require her to convince Justice Engoron that the inflated financial statements were taken seriously by the banks and insurance companies that received them.If Mr. Trump testifies, he will have to do a better job of defending himself than he did in his sworn deposition earlier this year. Justice Engoron was not impressed, as he made clear in his order last week.“The defenses Donald Trump attempts to articulate in his sworn deposition are wholly without basis in law or fact,” the judge wrote. More

    • 125 Shares129 Views

      in Elections

      As His Trial Begins, Trump Looks to Capitalize On It

      by

      The former president is making the case to his supporters that he is being wrongfully prosecuted. And it might bring him more support.Former President Donald J. Trump is expected to attend the opening of the civil trial in the New York attorney general’s fraud case against him on Monday, as his political team seeks to turn it into a rallying cry for supporters.The decision to show up voluntarily in court by Mr. Trump, who has already been compelled to courthouses in four different criminal arraignments this year, underscores how personally aggrieved Mr. Trump feels by the accusations of fraud, as well as his own self-confidence that showing up will help his legal cause.The move also reveals how inverted the norms of politics have become in the Trump-era Republican Party: Being accused of wrongdoing could be politically beneficial despite the very real legal jeopardy.In a political age in which candidates are defined as much by their critics and opponents as by their stances, some of Mr. Trump’s advisers see an opportunity in a case first brought by a Democratic New York attorney general, Letitia James, even if the accusations cut to the heart of his identity.In some ways, the Trump campaign, which has seen his supporters galvanized by the criminal charges he’s faced, is trying to turn the civil case into something akin to a fifth indictment — a moment to motivate his base.“Trump seems to be approaching his legal troubles like a hand of hearts — one or two indictments hurt you politically, but if you collect them all, you might shoot the moon,” Liam Donovan, a Republican operative, said. “The sheer volume and variety obscures the individual cases and their fact patterns, and plays into Trump’s argument that his opponents are trying to take him down by whatever means they can.”For Mr. Trump, his attendance at trial is far more personal than political, according to a person familiar with his thinking. The former president is enraged by the fraud charges and furious with both the judge and the attorney general. And Mr. Trump, who is a control enthusiast, believes that trials have gone poorly for him when he hasn’t been present, and he hopes to affect the outcome this time, according to the person.The former president, for instance, never attended the civil trial earlier this year in which the writer, E. Jean Carroll, accused him of raping her in the 1990s, despite publicly toying with the idea of appearing. Mr. Trump was found liable for sexually abusing Ms. Carroll and defaming her.People close to Mr. Trump cautioned that he could decide against appearing, since he was not required to do so, but they were planning for him to attend at least the first day and possibly the second day as well.Over the weekend, Mr. Trump’s campaign openly sought to take advantage of the attention, sending fund-raising solicitations that teased his possible attendance and accusing Democrats of “trying to keep me off the campaign trail.”“After four sham arrests, indictments, and even a mug shot failed to break me, a Democrat judge is now trying to destroy my Family Business,” Mr. Trump wrote in a fund-raising message on Saturday.The push to highlight the trial comes at a critical juncture for Mr. Trump’s primary challengers, who face a narrowing window to show signs of life in a race that Mr. Trump has threatened to run away with.The specifics of the case can seem almost beside the point. A New York trial judge, Arthur F. Engoron, issued a surprise pretrial ruling last week that found Mr. Trump liable for overvaluing his properties. The ruling left his assets, including Trump Tower itself, vulnerable to seizure. The point of the trial is to determine the scope of damages that Mr. Trump and his company must pay — as much as $250 million. Mr. Trump and his lawyers have argued that the ruling is illegitimate and doesn’t follow the facts of the case.Years ago, a decision like the one that Justice Engoron issued would have been a source of embarrassment for a candidate and might have been considered by that candidate’s supporters as a reason to back someone else.But this is the new post-shame period of politics, in which candidates have observed over time that the mistake is allowing oneself to be thrown out of the ring. That sentiment affects both parties, to a degree: A Democratic senator, Bob Menendez of New Jersey, was indicted on corruption charges, and gold bars were found in his house. He has pleaded not guilty and vowed to stay in the Senate.However, a number of his colleagues have called for him to resign, in stark contrast to how the vast majority of Republican officials have gingerly handled — and continued to support — Mr. Trump, echoing his repeated claim that he’s the victim of political persecution.Mr. Trump’s single previous highest day of fund-raising, according to the campaign, came after his mug shot was released in his Georgia indictment, which accused him of being part of a criminal conspiracy to overturn the 2020 election.Corry Bliss, a veteran Republican political strategist, said all the previous indictments and legal cases have blended together for most Republican primary voters into a single picture of a former president wrongly under attack.“If anything, it’s reinforced a belief among the large segment of the base that Trump is treated unfairly and the Democrats dislike him so much that they’re willing to do whatever it takes to defeat him — whether that’s electorally or in the judicial system,” Mr. Bliss said. “The legal facts that most Republicans are interested in are the Hunter Biden facts. Period. End of discussion.”Any attention on the Trump case is also likely to rob Mr. Trump’s rivals of the political oxygen they need to close the substantial advantage that the former president holds in the polls. None of his opponents, including Gov. Ron DeSantis of Florida, have yet to figure out a way to turn Mr. Trump’s multitude of legal troubles against him, or to cut through the extensive media coverage.“It starves them,” said Raheem Kassam, editor in chief of The National Pulse, a conservative news site, who interviewed Mr. Trump last week. “It starves them.”For Mr. Trump, Mr. Kassam said, “every step of the way it drags on, it only empowers him” in part because “notoriety at this point” is an advantage itself. And that trend, he noted, is not exclusive to Mr. Trump, citing Representative Matt Gaetz of Florida, a Trump ally, who faced an investigation related to sex-trafficking that was eventually dropped.“If you look at what happened to Gaetz, his star rose because of it,” Mr. Kassam said.Mr. Trump’s family has explicitly tried to frame the coming trial as an example of political persecution, deploying the same language as they have in his criminal cases. Mr. Trump has called Judge Engoron “deranged,” the very same term he has sought to apply to the Justice Department’s special counsel, Jack Smith.“I’ve never even seen anything like it,” Donald Trump Jr. said in an interview last week on The Charlie Kirk Show. “This is sort of like the start of the Bolshevik Revolution — we don’t like you, so we’re going to confiscate property.”He added, “Hey, our last name is Trump, so we have to be punished.” More

    • 63 Shares129 Views

      in Elections

      The Fraud Ruling Against Trump

      by

      More from our inbox:Reducing Gun ViolenceThe Embattled SpeakerInvesting in Artistic Creators, Not BuildingsBar Russian PerformersChinese Truth Tellers Doug Mills/The New York TimesTo the Editor:Re “Fraud by Trump Found as Judge Issues Penalties” (front page, Sept. 27):Justice Arthur F. Engoron’s ruling that Donald Trump engaged in a pattern of widespread fraud, whereby he embellished the size and scope of his various business entities for accounting advantages, is very much in keeping with his propensity for engaging in similar grandiose fabrication as president.In fact, literally on the very first day of his presidency, Mr. Trump found it necessary to overstate the size of the inaugural crowd to a demonstrably laughable degree. Such reflexive and self-serving exaggeration, regarding matters large and small, by Mr. Trump persisted to the end of his term, culminating in his wildly fantastical claims of election fraud.Mr. Trump’s fraudulent business practices over a period of several years were a glaring road map, for anyone bothering to look, as to how he would conduct himself as commander in chief. His fate now rests in the combined hands of the judicial system and the electorate.Mark GodesChelsea, Mass.To the Editor:In an extraordinary ruling, Justice Arthur F. Engoron held that Donald Trump, by illegally inflating the value of his properties, committed fraud by as much as $2.2 billion. A trial in this case, brought by New York’s attorney general, Letitia James, is scheduled for Monday morning, but this ruling is a huge blow to Mr. Trump and his entire family.The ruling called for the cancellation of some of Mr. Trump’s business certificates in New York, which could spell the end of the Trump real estate dynasty, or what’s left of it. The possible financial cost for Mr. Trump could be enormous, as Ms. James is seeking fines up to $250 million.It seems “Teflon Don” will not slip away from the damning case against him here in New York.Henry A. LowensteinNew YorkTo the Editor:Somewhere the late Wayne Barrett is smiling. He mapped out Donald Trump’s crooked business deals years ago. The bookkeeping and tax-evading maneuvers were all laid out in his 1992 investigative biography, “Trump: The Deals and the Downfall.” Tuesday’s court ruling was long overdue.That it took so long for someone to bring the hammer down on Mr. Trump is an indictment of a legal system that has too many escape hatches. Delay, appeal after appeal, loophole-seeking lawyers, statutes of limitations, dismissals on technical grounds — all strands woven into Mr. Trump’s web of corruption.Fred SmithBronxReducing Gun ViolenceSurvivors of school shootings and those who had lost loved ones to gun violence were among the hundreds of attendees at the Rose Garden event.Kent Nishimura for The New York TimesTo the Editor:Re “Biden Forms a New Office to Address Gun Violence” (news article, Sept. 23):In his effort to combat gun violence, President Biden should consider issuing an executive order stating that gun manufacturers who currently market to the U.S. military must agree to sell only to our armed forces, to foreign militaries approved of by the U.S., and to American citizens who have undergone extensive background checks and are on a federal registry list.If these manufacturers wish to continue to sell assault weapons to the public at large, then they will lose the U.S. military as a major client.This order would be issued under the president’s authority as commander in chief and would not require congressional approval.Susan AltmanWashingtonThe Embattled Speaker Kenny Holston/The New York TimesTo the Editor:Re “Maybe Matt Gaetz Is Right,” by Michelle Cottle (Opinion, Sept. 21):With the continuing threat of the Freedom Caucus to file motions to “vacate the chair” (depose the speaker), Hakeem Jeffries, the minority leader, has a golden opportunity: Form a group of 25 to 30 Democrats to either support Kevin McCarthy or find a centrist Republican member who can be elected speaker with their aid.Then, by abolishing the rule permitting any one member from calling a vote to vacate the chair, the House could function without threats of blackmail and do the people’s business. Mr. Jeffries, go for it.Doug McConeWayne, Pa.Investing in Artistic Creators, Not BuildingsA view of the new Perelman Performing Arts Center at night, when the white marble building turns amber and becomes a beacon in Lower Manhattan.George Etheredge for The New York TimesTo the Editor:Re “A Dazzling Arts Haven Blossoms at Ground Zero,” by Michael Kimmelman (Critic’s Notebook, front page, Sept. 14):As dazzling as the Perelman Performing Arts Center is — and it is truly dazzling — Mr. Kimmelman’s comment that the building itself cost “enough to support who knows how many existing community organizations around the city for who knows how many years” struck me as the story of America’s perpetual disregard of the arts.The building always comes first, followed by whatever potpourri of productions the owners can scrabble together to put inside it. Can we never begin the investment with the people, the artistic creators themselves? Is it always because the donors need an edifice on which to implant his or her name?America doesn’t believe in financing the arts; America believes the arts are a business and should finance itself.The Times recently ran an article saying that our theaters are in crisis, as is our creative community in general. When are we going to finance the creators instead of the buildings?Jennifer WarrenLos AngelesThe writer is a professor of directing at the U.S.C. School of Cinematic Arts and chair of the Alliance of Women Directors.Bar Russian PerformersNetrebko bowing on the stage of the State Opera after performing in Verdi’s “Macbeth.”Annette Riedl/DPA, via Associated PressTo the Editor:Re “Receiving Boos, and an Ovation” (Arts, Sept. 18), about the Russian soprano Anna Netrebko, who has supported Vladimir Putin:Your article raises the issue of whether citizens of countries with criminal regimes should be allowed to participate or perform in international events and forums. While punishing individual artists, performers and athletes for their country’s bad acts seems to be unfair, the fact is that their participation promotes their nation’s prestige and interests, even if indirectly.In addition, changes in Russia’s behavior will occur only if the populace forces those in power to change course. The international community should not endorse Russian talent by allowing those individuals to participate in international events or competitions.The message of the international community to the most talented Russians should be that they need to change their country. And while those individuals may be unhappy, that’s exactly the point; history shows that changes in authoritarian governments occur when the population is unhappy and demands change.Russians should be barred from participation in all international events until Russia ends the war in Ukraine and removes its troops from all of Ukraine.Daniel ShapiroSuffern, N.Y.Chinese Truth Tellers Illustration by Linda Huang; source photograph by Tsering DorjeTo the Editor:I write to commend you for “China’s Underground Historians,” by Ian Johnson (Opinion, Sept. 24). These are brave individuals dedicated to ensuring that their country’s past is documented as accurately as possible.As a historian myself, I am increasingly aware of how authoritarian leaders want to cover up their country’s misdeeds, whether in the U.S. or abroad.I stand in awe of the courage of these Chinese truth tellers.Glenna MatthewsSunnyvale, Calif. More