WASHINGTON—Special Counsel Robert Mueller is investigating possible money laundering by Paul Manafort, Donald Trump’s former campaign manager, as part of his criminal investigation into what U.S. intelligence agencies say was a Kremlin-backed campaign to meddle in the 2016 presidential election, according to a person familiar with the matter.
The inquiry into the issue by Mr. Mueller, a former director of the Federal Bureau of Investigation, and his team began several weeks ago, this person said. A spokesman for Mr. Manafort, Jason Maloni, declined to comment, as did a spokesman for Mr. Mueller.
Mr. Mueller’s investigation is focusing on Russian meddling as well as whether any members of the Trump campaign colluded with Moscow. Mr. Trump has denied any collusion and described investigations into the issue a “witch hunt.” Russia has denied meddling.
The Senate and House intelligence committees also are probing possible money laundering by Mr. Manafort, according to people with knowledge of those investigations.
The Senate committee also has received reports from the Treasury Department’s Financial Crimes Enforcement Network, which tracks illicit money flows, to learn if any of Mr. Trump’s businesses may have financial ties to Russian interests, these people said. Mr. Trump has said he has no such ties.
Mr. Manafort, a Republican political consultant, spent years working for a pro-Russia party in Ukraine. He served as Mr. Trump’s presidential campaign manager for roughly three months in 2016 before resigning.
New York Attorney General Eric Schneiderman and Manhattan District Attorney Cyrus Vance Jr. also are investigating Mr. Manafort’s real-estate transactions, The Wall Street Journal has reported, with both offices examining his dealings for possible money-laundering and fraud. Messrs. Schneiderman and Vance are Democrats.
Mr. Manafort has spent and borrowed tens of millions of dollars in connection with properties in the U.S. over the past decade, including a Brooklyn, N.Y., townhouse and California properties being developed by his son-in-law, the Journal has reported.
Through his spokesman, Mr. Manafort has said his “personal investments in real estate are all ordinary business transactions.”
In April, before Mr. Mueller’s appointment as special counsel, the Justice Department requested Mr. Manafort’s banking records as part of the Russia probe that is now being led by Mr. Mueller, the Journal reported.
And earlier this month, the Journal reported that the Manhattan district attorney’s office had subpoenaed records relating to up to $16 million in loans that a bank run by Steve Calk, a former campaign economic adviser to Mr. Trump, made to Mr. Manafort.
Mr. Manafort and two other top Trump campaign aides—Donald Trump Jr. and the president’s son-in-law and senior adviser, Jared Kushner —are expected to speak with Senate committees next week as part of their inquiries.
—Shane Harris and Aruna Viswanatha contributed to this article.
Jared Kushner sealed real estate deal with oligarch's firm cited in money-laundering case
Donald Trump’s son-in-law bought part of old New York Times building from Soviet-born tycoon, Guardian investigation into Russian money in NYC property market finds
Jared Kushner, the son-in-law of Donald Trump, who acts as his senior White House adviser, secured a multimillion-dollar Manhattan real estate deal with a Soviet-born oligarch whose company was cited in a major New York money laundering case now being investigated by members of Congress.
A Guardian investigation has established a series of overlapping ties and relationships involving alleged Russian money laundering, New York real estate deals and members of Trump’s inner circle. They include a 2015 sale of part of the old New York Times building in Manhattan involving Kushner and a billionaire real estate tycoon and diamond mogul, Lev Leviev.
The ties between Trump family real estate deals and Russian money interests are attracting growing interest from the justice department’s special counsel, Robert Mueller, as he seeks to determine whether the Trump campaign collaborated with Russia to distort the outcome of the 2016 race. Mueller has reportedly expanded his inquiry to look at real estate deals involving the Trump Organization, as well as Kushner’s financing.
Kushner will go before the US Senate intelligence committee on Monday in a closed session of the panel’s inquiry into Russian interference in the election in what could be a pivotal hearing into the affair.
Leviev, a global tycoon known as the “king of diamonds”, was a business partner of the Russian-owned company Prevezon Holdings that was at the center of a multimillion-dollar lawsuit launched in New York. Under the leadership of US attorney Preet Bharara, who was fired by Trump in March, prosecutors pursued Prevezon for allegedly attempting to use Manhattan real estate deals to launder money stolen from the Russian treasury.
The scam had been uncovered by Sergei Magnitsky, an accountant who died in 2009 in a Moscow jail in suspicious circumstances. US sanctions against Russia imposed after Magnitsky’s death were a central topic of conversation at the notorious Trump Tower meeting last June between Kushner, Donald Trump Jr, Trump campaign manager Paul Manafort and a Russian lawyer with ties to the Kremlin.
Donald Jr and Manafort have been called to testify before the Senate judiciary committee on Wednesday, at which they are certain to face questions about the Trump Tower encounter.
Two days before it was due to open in court in May, the Prevezon case was settled for $6m with no admission of guilt on the part of the defendants. But since details of the Trump Tower meeting emerged, the abrupt settlement of the Prevezon case has come under renewed scrutiny from congressional investigators.
Four Russians attended the meeting, led by Natalia Veselnitskaya, a lawyer with known Kremlin connections who acted as legal counsel for Prevezon in the money laundering case and who called the $6m settlement so slight that “it seemed almost an apology from the government”. Sixteen Democratic members of the House judiciary committee have now written to the justice department in light of the Trump Tower meeting demanding to know whether there was any interference behind the decision to avoid trial.
Constitutional experts are also demanding an official inquiry. “We need a full accounting by Trump’s justice department of the unexplained and frankly outrageous settlement that is likely to be just the tip of a vast financial iceberg,” said Laurence Tribe, Harvard University professor of constitutional law.
Separately, the focus of investigators on Trump family finances stem from the vast flow of Russian wealth that has been poured into New York real estate in recent years. As Donald Trump Jr put it in 2008, referring to the Trump Organization: “We see a lot of money pouring in from Russia.”
Among the overlapping connections is the 2015 deal in which Kushner paid $295m to acquire several floors of the old New York Times building at 43rd street in Manhattan from the US branch of Leviev’s company, Africa Israel Investments (AFI), and its partner Five Mile Capital. The sale has been identified as of possible interest to the Mueller investigation as Kushner later went on to borrow $285m in refinancing from Deutsche Bank, the German financial house that itself has been embroiled in Russian money laundering scandals and whose loans to Trump are coming under intensifying scrutiny.
Court documents and company records show that AFI was cited in the Prevezon case as a business partner of the defendants. In 2008, Prevezon entered a partnership with AFI in which Prevezon bought for €3m, a 30% stake in four AFI subsidiaries in the Netherlands. Five years later, AFI tried to return the money to the Russian-owned company, but it was intercepted and frozen by Dutch authorities at the request of the US government as part of the Prevezon money-laundering investigation.
In Manhattan, Leviev’s firm also sold condominiums to Prevezon Holdings from one of its landmark developments at 20 Pine Street, just a few blocks from Wall Street.
Real estate brochures describe the lavish interior decor of the condominiums, replete with bathrooms bedecked in stone and exotic woods, and boasting “the ultimate in pampering; a sybaritic recessed rain shower”. The 20 Pine Street apartments that Leviev sold to Prevezon were later frozen by US prosecutors seeking to block the flow of what they alleged to be money stolen from the Russian treasury and laundered through New York real estate.
Prevezon’s 20 Pine Street apartments and €3m in assets were all released as part of the settlement in May.
The Guardian contacted both Kushner and Leviev for comment, but they did not immediately respond.
The pursuit of Prevezon Holdings for alleged money laundering took on enormous political significance as it unfolded. For the prosecutors, it was a test case over suspicious Russian money flows designed to show the US was serious about going after money launderers. For the Russians, it was an opportunity to push back against stringent US sanctions that had long infuriated the Kremlin.
In court documents, US prosecutors accused Prevezon and its sole shareholder, Denis Katsyv, of participating in the laundering of proceeds of the vast tax fraud that stole $230m from the Russian treasury and moved it out of the country in chunks. Prevezon was alleged to have received some of the fraudulent spoils through a network of shell companies, hiding the money by investing in Manhattan real estate including the Leviev condominiums in 20 Pine Street.
Prevezon and Katsyv have consistently denied any involvement in money laundering and have dismissed the lawsuit as “ill-conceived”. In a statement released at the time of the settlement, they said they had “no involvement in or knowledge of any fraudulent activities”.
Magnitsky discovered the massive tax fraud, said to be one of the largest in Vladimir Putin’s Russia, in 2007. After he blew the whistle on the scam, he was arrested by the same officials whom he had accused of covering up the racket and imprisoned, dying in jail having been denied medical treatment.
Magnitsky’s death led to a political backlash in the US that in turn spawned tough sanctions on Russia, known as the Magnitsky Act. Russian individuals associated with the lawyer’s demise and other human rights abuses were banned entry to the US.
Veselnitskaya not only acted as Prevezon’s Russian counsel in the money-laundering case, she also was a leading lobbyist against the Magnitsky sanctions. She raised the subject prominently at the meeting in Trump Tower with Don Jr and Kushner, though according to Veselnitskaya the president’s son-in-law left after 10 minutes.
By the time of the Trump Tower meeting, Veselnitskaya was already personally acquainted with Russia’s powerful prosecutor general, Yuri Chaika, and her lobbying against the Magnitsky sanctions had drawn significant attention in government circles.
“Natalia’s main role was coordinating, including regular coordination with Chaika, whom she knew personally,” said a source acquainted with the Prevezon case.
Veselnitskaya told the Guardian: “My meeting with Trump’s son was a private meeting; nobody in the government had anything to do with it.” She declined to answer a follow-up question about whether and how she knew Chaika.
Jamison Firestone, the founder of the Russian law firm that employed Magnitsky at the time that he exposed the fraud, said that Veselnitskaya clearly intended to use the Trump Tower meeting to lobby against the Magnitsky sanctions. “They really made it a state priority to get rid of these sanctions,” he said.
FRANKFURT (Reuters) - Eleven Deutsche Bank (DBKGn.DE) executives who served during the financial crisis and afterwards have agreed to waive 38.4 million euros (34.33 million pounds) in bonuses to make amends for past misdeeds by the bank, the German lender said on Thursday.
The agreement, reached between the bank's supervisory board and 10 former and one current management board member, is one of the first of its kind at a major European bank in which bosses have collectively agreed to forgo outstanding bonus payments.
Their decision aims to help Deutsche Bank put behind it financial scandals that have cost billions of euros in fines and settlements.
Deutsche Bank said a number of investigations and regulatory penalties had prompted the board to suspend the bonuses of the 11 individuals.
The board had held on to 69.8 million euros in bonuses while it looked at whether the individuals were personally liable.
Under Thursday's agreement, the bank paid out 31.4 million euros and the individuals agreed to waive the rest.
"The supervisory board, on the basis of extensive investigations by several leading law firms and forensic advisors ... has decided not to hold the management board members personally liable," Deutsche Bank said in a statement.
Deutsche Bank said the executives "always administered their office with due care and that they cannot be accused of any breach of duty." The executives agreed voluntarily to waive the payments "as an act of solidarity with Deutsche Bank", the bank said.
Chairman Paul Achleitner said that with the additional waiver of bonuses, the management board members in office at that time were making a further personal contribution to closing the chapter. "This helps us to look forward towards the future again."
Deutsche Bank did not identify the executives.
Sources have said they include former chief executives Anshu Jain, Juergen Fitschen and Josef Ackermann. Others included Stephan Leithner, Rainer Neske, Henry Ritchotte, Stefan Krause, Hugo Baenziger and current board member Stuart Lewis, the sources have said.
The individuals declined to comment or did not respond when contacted by Reuters.
($1 = 0.8549 euros)
Reporting Arno Schuetze and Tom Sims; Editing by Victoria Bryan and Jane Merriman
Market Data 
Markets 
AI
