#Iran | #WhatTheyVotedFor
I admit that in all the time I've been joking about #PutiToots, I didn't really think the problem would be Donald Trump's apparent Iranian connections. And the thing about Adam Davidson's↱ article for the New Yorker is that it would appear President Trump already has exposure.
To this day, the Trump Organization has not provided satisfying answers to the most basic questions about the Baku deal: who owns Baku XXI Century, the company with which they signed the contracts; the origin of the funds with which Baku XXI Century paid the Trump Organization; whether the Mammadovs used their political power to benefit themselves and the Trump Organization; and whether the Mammadovs used money obtained from the Iranian Revolutionary Guard to fund the Trump Tower Baku.
At one point, Garten allowed me to review the Trump Organization's original contract with the Mammadovs. It authorizes the company to order an independent audit of Baku XXI Century's financial records at any time—a provision likely included to insure that the Mammadovs didn't hide profits that were supposed to be shared with the Trump Organization. Such an audit could well have exposed illicit activity. Garten refused to say if an audit had been conducted.
In dealing with the Mammadovs, the Trump Organization seems to have taken them entirely at their word. Garten pointed me to a provision in one contract in which Anar Mammadov represented himself as the sole owner of Baku XXI Century. Given that Elton Mammadov told me that he controlled the company, and that its ownership was a "commercial secret," what proof did the Trump Organization have that Anar's claim was true? Garten could not say.
Garten has been the company's chief legal officer only since January. His predecessor was Jason Greenblatt, whose name appeared on the contract I reviewed. Greenblatt was in charge of the Trump Organization's due diligence and contracting work. He is now employed at the White House, as the President's special representative for international negotiations. He did not respond to repeated requests for comment.
The best way to determine if a crime was committed in the Baku deal would be a federal investigation, which could use the power of subpoena and international legal tools to obtain access to the contracts, the due diligence, internal e-mails, and financial documents. The Department of Justice routinely sends investigators to other countries to pursue possible F.C.P.A. and sanctions violations.
Senator Sherrod Brown, of Ohio, who is the ranking Democratic member of the Committee on Banking, Housing, and Urban Affairs, said, in an e-mail, that a federal investigation was warranted: "The Trump Organization's Baku project shows the lack of ‘extreme vetting' Mr. Trump applied to his own business dealings in corruption-plagued regimes around the globe. . . . Congress—and the Trump Administration itself—has a duty to examine whether the President or his family is exposed to terrorist financing, sanctions, money laundering, and other imprudent associations through their business holdings and connections."
More than a dozen lawyers with experience in F.C.P.A. prosecution expressed surprise at the Trump Organization's seemingly lax approach to vetting its foreign partners. But, when I asked a former Trump Organization executive if the Baku deal had seemed unusual, he laughed. "No deal there seems unusual, as long as a check is attached," he said.
At one point, Garten allowed me to review the Trump Organization's original contract with the Mammadovs. It authorizes the company to order an independent audit of Baku XXI Century's financial records at any time—a provision likely included to insure that the Mammadovs didn't hide profits that were supposed to be shared with the Trump Organization. Such an audit could well have exposed illicit activity. Garten refused to say if an audit had been conducted.
In dealing with the Mammadovs, the Trump Organization seems to have taken them entirely at their word. Garten pointed me to a provision in one contract in which Anar Mammadov represented himself as the sole owner of Baku XXI Century. Given that Elton Mammadov told me that he controlled the company, and that its ownership was a "commercial secret," what proof did the Trump Organization have that Anar's claim was true? Garten could not say.
Garten has been the company's chief legal officer only since January. His predecessor was Jason Greenblatt, whose name appeared on the contract I reviewed. Greenblatt was in charge of the Trump Organization's due diligence and contracting work. He is now employed at the White House, as the President's special representative for international negotiations. He did not respond to repeated requests for comment.
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The best way to determine if a crime was committed in the Baku deal would be a federal investigation, which could use the power of subpoena and international legal tools to obtain access to the contracts, the due diligence, internal e-mails, and financial documents. The Department of Justice routinely sends investigators to other countries to pursue possible F.C.P.A. and sanctions violations.
Senator Sherrod Brown, of Ohio, who is the ranking Democratic member of the Committee on Banking, Housing, and Urban Affairs, said, in an e-mail, that a federal investigation was warranted: "The Trump Organization's Baku project shows the lack of ‘extreme vetting' Mr. Trump applied to his own business dealings in corruption-plagued regimes around the globe. . . . Congress—and the Trump Administration itself—has a duty to examine whether the President or his family is exposed to terrorist financing, sanctions, money laundering, and other imprudent associations through their business holdings and connections."
More than a dozen lawyers with experience in F.C.P.A. prosecution expressed surprise at the Trump Organization's seemingly lax approach to vetting its foreign partners. But, when I asked a former Trump Organization executive if the Baku deal had seemed unusual, he laughed. "No deal there seems unusual, as long as a check is attached," he said.
In December, as it happens, Joseph Tanfani↱ of Los Angeles Times covered some of Mr. Trump's business maneuvers between election and inauguration:
The Trump hotel in Baku, Azerbaijan, would be “among the finest in the world,” Donald Trump promised two years ago, another example of “our involvement in only the best global development projects.”
But the dream of a world-class Trump Baku died this month, with Trump saying he was backing out of the deal because of delays and blown deadlines caused by the developer, a 34-year-old with close family connections to the country’s government.
The demise of Trump Baku is not an isolated decision. With his inauguration less than a month away, President-elect Trump’s company has pulled out of a few international business deals that might have created especially sticky conflicts and controversies for his administration.
In addition to Azerbaijan, the company began to back out of a deal in another former Soviet republic, Georgia. It also canceled a hotel project in Rio de Janeiro that had been mentioned in a fraud investigation. And just days after the election, the Trump Organization shut down four companies formed this year seemingly in anticipation of a hotel deal in Jidda, Saudi Arabia.
Like most of his hotel deals, Trump did not develop the building but licensed his name. He entered the deal in 2014 and reported receiving $2.8 million in management fees for the hotel, housed in a gleaming 33-story curved tower in Baku—even though the hotel never opened.
But the dream of a world-class Trump Baku died this month, with Trump saying he was backing out of the deal because of delays and blown deadlines caused by the developer, a 34-year-old with close family connections to the country’s government.
The demise of Trump Baku is not an isolated decision. With his inauguration less than a month away, President-elect Trump’s company has pulled out of a few international business deals that might have created especially sticky conflicts and controversies for his administration.
In addition to Azerbaijan, the company began to back out of a deal in another former Soviet republic, Georgia. It also canceled a hotel project in Rio de Janeiro that had been mentioned in a fraud investigation. And just days after the election, the Trump Organization shut down four companies formed this year seemingly in anticipation of a hotel deal in Jidda, Saudi Arabia.
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Like most of his hotel deals, Trump did not develop the building but licensed his name. He entered the deal in 2014 and reported receiving $2.8 million in management fees for the hotel, housed in a gleaming 33-story curved tower in Baku—even though the hotel never opened.
Rachel Maddow↱ covered the story, and added a wonderful bit about Bechtel just to make the point clear about Trump's business partners in Azerbaijan. It's a long block, but kind of worth the time, especially for those who prefer video over reading.
But, yeah, it's like an old board game: The Iranians, in Azerbaijan, with the Useless Hotel.
And, yeah, it would probably be nice—if you're Donald Trump—to have Attorney General Sessions on point in these matters.
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Notes:
Davidson, Adam. "Donald Trump’s Worst Deal". The New Yorker. 13 March 2017. NewYorker.com. 7 March 2017. http://bit.ly/2lVM2PF
Maddow, Rachel. "Sketchy Trump deal sparks calls for another investigation". The Rachel Maddow Show. msnbc. 6 March 2017. msnbc.com. 7 March 2017. http://on.msnbc.com/2mdzpQZ
Tanfani, Joseph. "Trump backs out of real estate projects around the world, but that may not be enough to avoid conflicts". Los Angeles Times. 22 December 2016. LATimes.com. 7 March 2017. http://lat.ms/2lz3ihk