Sales of Trump Properties Suggestive of Money Laundering: Researcher

The Trump Organisation dismissed the allegations as unsubstantiated.

Ranking Member of the House Intelligence Committee Adam Schiff (D-CA) speaks after US Attorney General Jeff Sessions attended a closed door interview with the House Intelligence Committee on Capitol in Washington, US, November 30, 2017. Credit: Reuters/Joshua Roberts

Washington: Testimony to the US Congress by the head of a political research firm indicates that the Trump Organisation’s sales of properties to Russian nationals may have involved money-laundering, the top Democrat on the House Intelligence Committee said on Thursday.

The panel released the transcript of a November 14 closed-door interview with Fusion GPS founder Glenn Simpson, whose firm hired a former British spy to research then-presidential candidate Donald Trump‘s campaign ties to Russians and produced a dossier.

“Those transcripts reveal serious allegations that the Trump Organisation may have engaged in money laundering with Russian nationals,” Representative Adam Schiff said.

The Trump Organisation dismissed the allegations as unsubstantiated.

Another Democrat on the Republican-controlled committee, Representative Jim Hines, sought to temper Schiff’s comment, telling CNN that Simpson “did not provide evidence and I think that’s an important point. He made allegations.”

The House of Representatives panel is conducting one of the three congressional investigations into possible collusion between Trump‘s 2016 campaign and Russia. Special Counsel Robert Mueller is leading a separate probe by the US Justice Department. Moscow denies the conclusions of US intelligence agencies that it interfered in the 2016 election to help Trump and Trump denies any collusion.

In his testimony, Simpson said that his firm closely examined sales of condominiums in Trump properties in New York, Miami, Panama City and Toronto.

“There were a lot of real estate deals where you couldn’t really tell who was buying the property,” Simpson said. “And sometimes properties would be bought and sold, and they would be bought for one price and sold for a loss shortly thereafter, and it really didn’t make sense to us.”

“We saw patterns of buying and selling that we thought were suggestive of money-laundering,” he continued.

Alan Garten, the Trump Organisation’s chief counsel, said that the deals Simpson referenced primarily involve properties to which Trump licensed his name, rather than owning, developing or selling them.

“These accusations are completely reckless and unsubstantiated for a multitude of reasons,” Garten said.

“These issues have nothing to do with the scope of the investigation” by the House intelligence committee, Garten said in a phone interview. “But it’s not surprising the minority (Democrats) would focus on this given they’ve found absolutely no evidence of collusion.”

Simpson, under questioning by Republican Jackie Speier, California Democrat, also said that Russia’s operation to influence US politics included attempts to infiltrate the National Rifle Association (NRA) and other conservative organisations, such as groups promoting independence for the states of Texas and California.

“They seem to have made a very concerted effort to get in with the NRA,” Simpson said, according to the transcript.

The NRA did not immediately respond to a request for comment.

Earlier this month, Democratic US Senator Dianne Feinstein released Simpson’s testimony before the Senate Judiciary Committee, where she is the ranking Democrat. The panel’s Republican chairman, Chuck Grassley, had not agreed to the release.

Fusion GPS, based in Washington, hired former British spy Christopher Steele to investigate Trump‘s business dealings with Russia. It first investigated Trump on behalf of the conservative Washington Free Beacon online news site and then for the Democratic National Committee.

Trump has repeatedly criticised the dossier, which was based on Steele’s investigation, calling it “bogus” and “discredited and phony.”

Some Republicans critical of Mueller’s investigation have said that Steele’s dossier triggered the initial probe by the Federal Bureau of Investigation.

They have raised questions about whether the FBI may have relied on the Steele document to improperly obtain surveillance warrants to spy on Trump‘s campaign associates.

The testimony by Fusion GPS’s Simpson before the Senate Judiciary Committee last August contradicted those claims.

Ever since Feinstein released the testimony on January 9, House Intelligence Committee Democrats have been asking that Simpson’s testimony to their committee be made public.

(Reuters)

Trump’s New Counterterrorism Strategy Urges Allies to Do More

The 11 page draft of President Trump’s counterterrorism strategy demands that the US allies shoulder more of the burden in combating Islamist militants.

President Trump arrives aboard Air Force One at JFK International Airport. Credit: Reuters/Jonathan Ernst

President Trump arrives aboard Air Force One at JFK International Airport. Credit: Reuters/Jonathan Ernst

Washington: A draft of President Donald Trump‘s new counterterrorism strategy demands that US allies shoulder more of the burden in combating Islamist militants, while acknowledging that the threat of terrorism will never be totally eliminated.

The 11-page draft, seen on Friday by Reuters, said the US should avoid costly, “open-ended” military commitments.

“We need to intensify operations against global jihadist groups while also reducing the costs of American ‘blood and treasure’ in pursuit of our counterterrorism goals,” states the document, which is expected to be released in coming months.

“We will seek to avoid costly, large-scale US military interventions to achieve counterterrorism objectives and will increasingly look to partners to share the responsibility for countering terrorist groups,” it says.

However, it acknowledges that terrorism “cannot be defeated with any sort of finality.”

Michael Anton, spokesman for the White House National Security Council, said, “As part of its overall approach, the administration is taking a fresh look at the entire US national security strategy, to include the counterterrorism mission – which is especially important since no such strategy has been produced publicly since 2011.”

The process is aimed at ensuring “the new strategy is directed against the pre-eminent terrorist threats to our nation, our citizens, our interests overseas and allies,” Anton said. “Moreover, this new strategy will highlight achievable and realistic goals, and guiding principles.”

Combating Islamic extremism was a major issue for Trump during the 2016 presidential campaign. The draft strategy paper, which officials said was still being fine-tuned at the White House, describes the threat from Islamic militant groups in stark tones.

It remains to be seen how Trump can square his goal of avoiding military interventions with ongoing conflicts involving US troops in Iraq, Syria, Afghanistan, Yemen and elsewhere.

Rather than scale back US commitments, he has so far largely adhered to former Obama administration plans to intensify military operations against militant groups and granted the Pentagon greater authority to strike them in places like Yemen and Somalia.

Trump may soon reverse years of Obama-ordered drawdowns in Afghanistan. His administration is now considering boosting by 3,000 to 5,000 soldiers the 8,400-strong US contingent helping Afghan forces fight a resurgent Taliban, current and former US officials say.

A senior administration official noted that only a small number of troops have been added to US forces in Iraq and Syria under Trump, at the discretion of his military commanders.

“If you do see additions elsewhere, they will be in keeping with this [draft] strategy,” said the official, who spoke on condition of anonymity.

The increased pace of US military operations has seen a recent spate of American casualties. The latest came in Somalia, where a Navy SEAL died and two others were wounded in an attack by al Shabaab militants, US officials said on Friday.

Since President Barack Obama released the last US counterterrorism strategy in 2011 before the emergence of ISIS, the threat has “diversified in size, scope and complexity from what we faced just a few years ago,” the draft strategy said.

In addition to ISIS, the United States and its allies are endangered by a reconstituted al Qaida, groups such as the Haqqani network and Hezbollah, as well as from homegrown extremists radicalised online, it said.

Bruce Hoffman, director of Georgetown University’s Center for Security Studies and who reviewed the document at Reuters’ request, said the draft strategy “paints – and I think accurately – a more dire picture” of the threat than the Obama document, which sounded a “triumphalist” tone following al Qaida leader Osama bin Laden’s death in a 2011 US raid in Pakistan.

Missing phrase

The senior administration official said the document describing an overarching counterterrorism approach is separate from a detailed strategy to defeat ISIS that Trump also has ordered.

The draft strategy seen by Reuters appears to flow from Trump‘s “America First” foreign policy calling for foreign aid cuts and more burden-sharing by allies and alliances such as NATO.

It does not include a signature phrase from Trump‘s 2016 campaign, “radical Islamic terrorism.” Instead, it says that jihadist groups “have merged under a global jihadist ideology that seeks to establish a transnational Islamic caliphate that fosters conflict on a global scale.”

The draft’s first guiding principle is that the United States “will always act to disrupt, prevent and respond to terrorist attacks against our nation, our citizens, our interests overseas and our allies. This includes taking direct and unilateral action, if necessary.”

The administration would boost US homeland security by working with allies and partners to eliminate terrorist leaders, “ideologues, technical experts, financiers, external operators and battlefield commanders.”

The draft also calls for denying militants physical and online sanctuaries in which to plan and launch attacks and “degrade their efforts to develop and deploy” chemical and biological weapons.

Yet it provides few details on how the US, which has led global counterterrorism efforts since the September 11, 2001 attacks, can achieve those goals by passing more of the burden to other countries, many of which lack the requisite military and intelligence capabilities.

The draft makes little mention of promoting human rights, development, good governance and other “soft power” tools that Washington has embraced in the past to help foreign governments reduce grievances that feed extremism.

In contrast, the Obama counterterrorism strategy made “respecting human rights, fostering good governance, respecting privacy and civil liberties, committing to security and transparency and upholding the rule of law” the foremost of its guiding principles.

“Soft power has a role to play, but not to the exclusion of kinetics,” or military action, said Hoffman. He called the draft “a very sober depiction of the threat and what is needed now and in the immediate future to counter it.”

(Reuters)

Defence Experts Question Trump’s Military Spending Proposal

There were no cost estimates in the proposal and Trump proposed revenue-raising steps that budget experts called insufficient.

Republican presidential nominee Donald Trump speaks at the Cleveland Arts and Social Sciences Academy in Cleveland, Ohio, US, September 8, 2016. Credit: Reuters/Mike Segar

Republican presidential nominee Donald Trump speaks at the Cleveland Arts and Social Sciences Academy in Cleveland, Ohio, US, September 8, 2016. Credit: Reuters/Mike Segar

Washington: Republican presidential nominee Donald Trump’s US military buildup plan would cost hundreds of billions of dollars – but with no apparent strategy, defence experts from across the political spectrum said on Thursday.

“I haven’t seen any kind of strategy,” said William Hartung, director of the Arms and Security Project at the Center for International Policy. “He (Trump) says nobody is going to challenge us because we will be so strong. But that’s not a strategy. It’s just a kind of wish-fulfillment.”

US senator Jeff Sessions, a top Trump backer who sits on the Senate armed services committee, said the proposal was based on recommendations from groups such as the National Defense Panel and served as a statement of Trump‘s commitment to build the military.

“I believe this lays out a framework for rebuilding the military, and it represents a commitment by Donald Trump to make this a priority,” Sessions said in an interview. “If you don’t have presidential leadership really defending the need for a robust national defense, you’re not going to maintain the defense budget.”

Trump‘s proposal, unveiled in a speech on Wednesday, did not spell out how he would accommodate the additional manpower and hardware as the US shutters military bases or where and for what purposes the larger forces would be employed. There were no cost estimates and Trump proposed revenue-raising steps that budget experts called insufficient.

“He just called for higher defense spending without giving us a number and without telling us how he is going to pay for it,” said Lawrence Korb, a former Reagan administration Pentagon official and senior fellow at the Center for American Progress, a think tank aligned with the Barack Obama administration.

Trump’s Democratic opponent in the November 8 election, Hillary Clinton, advocates tough defence and foreign policies, but has yet to take a stand on the size of the Pentagon budget.

Stephen Miller, a Trump policy adviser, said Trump‘s proposal came in contrast to Clinton, who he said has “no military plan.”

Trump pledged to expand the army to 540,000 active-duty troops from its current 480,000, increase the Marine Corps from 23 to 36 battalions – or as many as 10,000 more Marines – boost the Navy from 276 to 350 ships and submarines, and raise Air Force tactical aircraft from 1,100 to 1,200.

Trump said those numbers were based on assessments by the conservative Heritage Foundation and other groups. Heritage said in a report that it looked at the capacity needed to handle two major wars to determine its force-size recommendations.

Trump said he would bolster the development of missile defenses and cyber capabilities. He made no mention of US nuclear forces already in the midst of a modernisation effort that will cost an estimated $1 trillion over 30 years.

To pay for the buildup, Trump said he would ask Congress to lift a Pentagon budget cap and “fully offset” the increased costs by collecting unpaid taxes, cutting appropriations for federal programmes operating without congressional reauthorization, cracking down on social welfare fraud and other fraud, and collecting additional taxes and fees from increased energy production.

‘Soft pedalling’ the cost

Writing in The Weekly Standard, a conservative magazine, Tom Donnelly, a defence scholar at the American Enterprise Institute think tank who opposes Trump’s election, praised Trump for embracing a buildup that many mainstream Republicans advocate.

“However, Trump undercut the power of his proposals by soft-pedaling the cost of such a buildup,” he wrote.

Independent cost estimates for Trump‘s plan range from $150 billion in additional spending over 10 years, according to the bipartisan Committee for a Responsible Federal Budget, to as much as $900 billion over the same period, as assessed by Todd Harrison, a defense budget analyst at the Center for Strategic and International Studies think tank.

Harrison said that increase could be achieved only by raising the federal budget deficit, raising taxes, or cutting other spending, such as benefits programs for seniors and the poor. “None of those things are politically popular,” he said.

The Committee for a Responsible Federal Budget estimated that lifting the cap would cost $450 billion over 10 years. The revenue-generating steps proposed by Trump would leave $150 billion of that amount uncovered, it said.

Another flaw in Trump‘s plan is the assumption that Republican members of the House of Representatives who belong to the deficit-fighting tea party movement would agree to end the budget cap.

In April, army chief of staff General Mark Milley told a Senate committee that adding more soldiers without a sufficient budget would be disastrous for the country and the army. Bases would close and programs that support troops and their families would have to be curtailed to make up the shortfall, he said.

The navy already has launched a shipbuilding program to raise the number of vessels to more than 300 by 2021. Trump‘s plan fails to account for the country’s limited shipbuilding capacity and the cost of manning, maintaining and basing the additional warships he proposes to build.

“The whole thing is unrealistic,” said Dov Zakheim, the Pentagon’s top financial official under former President George W. Bush. Zakheim, who opposes a Trump presidency, estimates that Trump’s plan would boost defense spending by roughly $300 billion over five years. “It’s a soundbite,” he said.

(Reuters)