[Updated 9 May]
So, just the headlines—for now—because life is rushing past…
[Updated 11 May] Yeah, Michael Cohen may be just a cheap very expensive New York thug lawyer with really good marketing skills—and a not-so-good education—when it comes to whoring his access to President Donald John Trump.
I’m thinking that Trump is wishing he’d hired a better class of attorney after news of millions in cash surfaced. Paul Blest, writing in Michael Cohen Is Just a Web of Corruption for Splinter, reported:
Stormy Daniels’ attorney Michael Avenatti dropped a bombshell today: Trump fixer Michael Cohen allegedly took $500,000 from a Russian oligarch over the course of eight payments made between January and August 2017.
It’s not clear how Avenatti obtained the information. The top of the report includes this disclaimer: “Note: This information is true and correct as of the date of this Preliminary Report of Findings (May 8, 2018) to the best of our knowledge. Additional information is being obtained on a near daily basis. The below information and findings, therefore, are subject to change.”
The Daily Beast confirmed the Vekselberg payments in its own story. “How the fuck did Avenatti find out?” a source reportedly asked the Daily Beast. And according to CNN, the office of special counsel Robert Mueller has interviewed Vekselberg in connection with the payments.
According to Avenatti, the payments were made through the private equity firm Columbus Nova, whose CEO is Vekselberg’s American cousin Andrew Intrater, to an LLC that Cohen set up, Essential Consultants. Essential Consultants was also the LLC through which he paid Daniels $130,000 prior to the 2016 election, as a hush money payment about her alleged affair with Donald Trump. (Columbus Nova was also previously a minority investor in Gawker Media Group, which owned several Gizmodo Media Group properties before its bankruptcy in 2016.)
Yeah, $500,000 is much worse than $130,000, But not nearly half as bad as $1,200,000.
[Updated 9 May] Blest followed up the story on Wednesday with Novartis Says It Paid Michael Cohen $1.2 Million For Basically Nothing.
Then, the company reportedly signed Cohen to a one-year, $1.2 million contract in February of 2017. STAT’s source, identified only as a Novartis employee “familiar with the matter,” described the deal as the company hoping Cohen could help it through issues such as the ACA, tax reform, and “navigating reimbursement challenges for medicines.”
“We were trying to find an inroad into the administration. Cohen promised access to not just Trump, but also the circle around him,” the employee told STAT. “It was almost as if we were hiring him as a lobbyist.” You don’t say!
Apparently, the meeting did not go well.
In March 2017, a group of Novartis employees, mostly from the government affairs and lobbying teams, met with Cohen in New York to discuss specific issues and strategies. But the meeting was a disappointment, the insider explained, and the Novartis squad left with the impression that Cohen and Essential Consultants—the firm controlled by Cohen that Novartis was making payments to—may not be able to deliver.
“At first, it all sounded impressive, but toward the end of the meeting, everyone realized this was a probably a slippery slope to engage him. So they decided not to really engage Cohen for any activities after that,” the employee continued. Rather than attempt to cancel the contract, the company allowed it to lapse early in 2018 and not run the risk of ticking off the president. “It might have caused anger,” this person said.
You read that right: Novartis says they paid Cohen $100,000 a month for nothing because they were scared of pissing off the president.
[Updated 9 May] The same day, Adam Davidson, reporting in, The Michael Cohen Revelations Are a Crash Course in Shady Corporate Entities for The New Yorker, wrote:
After the news came out, on Tuesday, that Columbus Nova, an American company linked to the Russian oligarch Viktor Vekselberg, gave Michael Cohen, President Trump’s lawyer, a half million dollars last year, a lawyer for the company issued a statement that said, “Columbus Nova is a management company solely owned and controlled by Americans. . . . Neither Viktor Vekselberg nor anyone else other than Columbus Nova’s owners, were involved in the decision to hire Cohen or provided funding for his engagement.” So who are these owners? I happened to have a phone number for Reinhard Freimuth, a managing director at Columbus Nova’s financial-management arm, so I called him up to ask. Who owns Columbus Nova? “I haven’t got a clue,” Freimuth said. He pointed me to the lawyer’s statement.
The fact is that Columbus Nova’s lawyer is using the phrase “owned and controlled” to mean something more narrow and technical than what we normally think of as ownership and control. “Think about us as his property manager,” Freimuth said. “Like a family office.” Viktor Vekselberg, the founder of a company called the Renova Group, is one of Russia’s richest men, with a multibillion-dollar fortune made in the oil and metal industries. It has become common for very rich people to have something called a family office, essentially a company tasked with managing and investing their money. Columbus Nova, which is based in New York City, functions in a similar way for Vekselberg. It is a company technically owned by others but which looks after money owned and controlled in large part—if not entirely—by Vekselberg and his family. (Columbus Nova’s president, Andrew Intrater, is Vekselberg’s cousin.) It’s the kind of clever corporate structure that allows a lawyer, at a crisis moment such as this, to say truthfully that the company is not owned and controlled by the man who owns and controls everything of value within the firm. (Columbus Nova’s lawyers did not respond to a request for comment.)
Great lawyers are masters of weasel words. Just ask President William Jefferson Clinton.
[Updated 9 May] The same day, Amy Davidson Sorkin, also writing for The New Yorker dives deeper still in Is Michael Cohen’s Essential Consultants L.L.C. a Slush Fund for Donald Trump? and asks the simplest of questions: Who is paying whom?
Sometimes the most convoluted question, when it comes to the financial dealings that swirl around President Donald Trump, is the most basic: Who is paying whom? The follow-up, which can be even more troubling, is: And for what? These questions arose, again, on Tuesday night, in a series of revelations that began with a tweet from Michael Avenatti, the lawyer representing Stephanie Clifford, the adult-film actress and director known as Stormy Daniels, in her fight to void a hush agreement about her relationship with Trump. The revelations involved Essential Consultants, a Delaware limited liability company that Michael Cohen, Trump’s personal attorney, had set up as a vehicle to pay Clifford a hundred and thirty thousand dollars. As it turns out, companies such as A.T. & T., Novartis, Korea Aerospace Industries, and Columbus Nova—whose largest client is a company controlled by the Russian oligarch Viktor Vekselberg, who is under U.S. sanctions—had made payments to Essential Consultants adding up to more than four million dollars. There does not appear to be any legitimate business rationale for these payments (the emphasis there being on the word “legitimate”). In short, the account that was depleted to pay for Clifford’s silence was filled up again to pay—whom?
Put another way, did the Russians and A.T. & T. inadvertently help to pay for Clifford’s silence? Tuesday’s revelations felt a bit like the moment, in November, 1986, when it was revealed that the money from the Reagan Administration’s secret sale of weapons to Iran (in the interest of freeing American hostages) had been diverted to, of all people, the Nicaraguan Contras.
The companies have offered varying explanations for their payments, none of them persuasive. A.T. & T. said that it wanted “insights” into the Trump Administration; that is not something you pay the President’s personal attorney to give you, under any circumstances. (Did the company expect the lowdown on Trump’s next moves? That would possibly be a violation of attorney-client privilege.) It is particularly not something you pay for when, as was the case with A.T. & T., you are trying to get Cohen’s client’s other subordinates to approve a merger. That might be topped by Korea Aerospace’s statement saying that it had turned to Essential Consultants for advice on meeting “accounting standards on production costs.” Korea Aerospace, alongside Lockheed Martin, is currently competing for a defense contract.
I’ve not heard this yet mentioned, but I have to wonder at what point the emollients clause will again raise its ugly head.
[Updated 10 May] As the drip, drip, drip becomes a steady stream, Michael Harriot, writing in Did Michael Cohen Get $600,000 From AT&T so Trump Would Kill Net Neutrality and OK a Merger? for The Root, connects more dots:
Don’t you find it funny that AT&T paid Michael Cohen’s shell company, Essential Consultants, $50,000 per month for all of 2017? Even though the $600,000 is 3.5 percent of all the money the huge corporation spends on lobbying, AT&T said Essential Consultants “did no legal or lobbying work for us, and the contract ended in December 2017,” according to the Washington Post.
Now, we know that Cohen is not a lobbyist, and he only had three clients, one of whom was Donald Trump. We also know that AT&T, as the No. 1 internet provider in the U.S., had a vested interest in dismantling net neutrality because the company stood to make a fortune if the regulations were nixed.
Now, I’m not accusing AT&T of bribing anyone, but I find it funny that the telecom behemoth began paying the money to Trump’s fixer, Cohen, the not-lobbyist, two months after AT&T announced that it would try to merge with Time Warner, the second-largest internet provider in America.
Again, I’m not trying to start anything, but Cohen, Trump’s fixer, who, AT&T said, did nothing for the company, began receiving these payments in January 2017, the month Trump took office. Now, it’s probably a hilarious coincidence that January 2017 was also the same month that Trump nominated Ajit Pai to head the Federal Communications Commission.
[Updated 11 May] Finally, for now—remember, Independent Counsel Kenneth Starr’s investigation ran 49 months (August 1994 to September 1998) and Special Counsel Robert Mueller only began work in May of 2017—Susan B. Glasser, writing for The New Yorker explores The Price of Getting Inside Trump’s Head. She writes:
On Easter Sunday, Chris Christie, the former New Jersey governor, was holding forth in the green room at ABC News in New York before going on the air. A friend of Donald Trump from well before the 2016 campaign, Christie had run against Trump in the Republican primaries, then dropped out and travelled around the country on behalf of his onetime rival. Eventually, he went on to become the chief of Trump’s transition team, although, when Trump surprised everyone by winning the election, Christie was pushed out in favor of Vice-President-elect Mike Pence. These days, Christie is once again a regular on Trump’s call list, one of the outside advisers with whom the President frequently consults in lieu of a more conventional White House staff. Trump has even been known to call and kibbitz with Christie over Sunday-show appearances like the one he was about to make.
In other words, Christie knows Trump a lot better than the rest of us do. As I and a couple of other guests peppered Christie that morning at ABC with questions about how to understand Trump (the latest tumult included his firing, by tweet, of the Secretary of State, ousting the Veterans Affairs Secretary, and deciding to name the unvetted White House physician to the post instead), he interrupted in frustration. Christie argued that pesky journalists and amateur Trump watchers were always getting the President wrong, making it out as if there were some “Machiavellian” grand plan by Trump that could explain many otherwise seemingly unexplainable moves. “There is no strategy,” he exclaimed.
Christie may not be the White House chief of staff, or Attorney General, or any of the other jobs he once aspired to in a Trump Administration (and his prospects remain dim, so long as his rival Jared Kushner, the President’s son-in-law, stays in the White House; Christie, as a federal prosecutor, helped send Kushner’s father, Charles, to jail). But, as far as I’m concerned, he belongs on the short list of reliable Trump decoders, at least when he avoids partisan spin and transparently self-serving plugs. Others have their own favored Trump whisperers helping to make sense of this President. Administrations have always needed their interpreters to the outside world, but never more than this one, where Trump explodes orderly decision-making processes, routinely countermands or bypasses his staff, and just generally operates as if his is a government of one. “I’m the only one that matters,” he proclaimed in response to a question, last fall, about the many vacancies in the State Department.
Meanwhile, we all have 12 June to look forward to.