ReportWire

Tag: corruption

  • Strip club executives charged with bribing NY official to avoid paying $8M in taxes

    [ad_1]

    A company that owns strip clubs around the country and several of its executives have been charged with bribing a government official with free trips to some of the clubs and thousands of dollars in spending money to avoid paying more than $8 million in sales taxes to New York City and the state of New York, prosecutors said Tuesday.

    New York Attorney General Letitia James said the alleged scheme by Houston-based RCI Hospitality Holdings and its corporate leaders ran from 2010 to 2024 and involved bribing a New York state tax auditor, in exchange for receiving favorable treatment during at least six tax audits that were performed over a decade.

    RCI Hospitality, publicly traded on the Nasdaq composite, owns and operates more than 60 clubs and sports bars and restaurants across the county, including Rick’s Cabaret establishments located in more than a dozen cities including New York City, according to the company’s website. It also owns two other businesses in Manhattan.

    A 79-count grand jury indictment that was unsealed Tuesday charges RCI, five of its executives and the three clubs in Manhattan with conspiracy, bribery, tax fraud and other crimes.

    “RCI’s executives shamelessly used their strip clubs to bribe their way out of paying millions of dollars in taxes,” James said in a statement. “I will always take action to fight corruption and ensure everyone pays their fair share.”

    Daniel Horwitz, a New York lawyer for RCI, disputed the allegations and said the defendants will fight the charges in court.

    “We are clearly disappointed with the New York Attorney General’s decision to move forward with an indictment and look forward to addressing the allegations,” Horwitz said in a statement. “We remind everybody that these indictments contain only allegations, which we believe are baseless. RCI and the individuals involved are presumed innocent and should be allowed to have their day in court.”

    He added that RCI’s policy is to pay “all legitimate and non-contested taxes” and all three Manhattan clubs remain open.

    Among the RCI executives who were indicted are Eric Langan of Bellaire, Texas, chief executive officer, president and board chairman; and Timothy Winata of Houston, a controller and accountant. Prosecutors allege Langan and other executives authorized and oversaw the bribes, and Winata directly provided the bribes and accompanied the auditor on trips to the clubs.

    James’ office did not name the New York state auditor. It said that a sixth person who was not publicly named was indicted but not yet arrested. James’ office declined to say whether that person was the auditor. The name of the auditor, who worked for the New York State Department of Taxation and Finance, is redacted in the indictment.

    Prosecutors said RCI gave the auditor at least 13 complimentary, multiday trips to Florida and up to $5,000 per day to spend on private dances at RCI strip clubs, including Tootsie’s Cabaret in Miami. The auditor’s hotel and restaurant expenses were also paid for by RCI, authorities said.

    Winata also traveled from Texas to Manhattan to give the auditor bribes at the three Manhattan clubs — Rick’s Cabaret, Vivid Cabaret and Hoops Cabaret and Sports Bar, prosecutors said.

    The indictment alleges RCI failed to pay over $8 million in sales taxes on the sale of “dance dollars,” which are purchased by customers and redeemed for private dances. The auditor, prosecutors alleged, settled tax audits of RCI’s Manhattan clubs for substantially less in back taxes, penalties and interest than were owed, saving the company millions of dollars.

    [ad_2]

    Source link

  • New Orleans mayor to appear in court on corruption charges tied to alleged affair

    [ad_1]

    NEW ORLEANS — New Orleans Mayor LaToya Cantrell is scheduled to appear in federal court Wednesday for the first time since the Democrat was indicted on corruption charges stemming from an alleged romantic relationship with her bodyguard.

    She is expected to enter a plea in response to conspiracy, fraud and obstruction charges in what prosecutors described as a yearslong scheme to conceal an affair with her bodyguard as the two traveled, wined and dined together on taxpayers’ dime.

    Cantrell’s bodyguard, Jeffrey Vappie, has already pleaded not guilty to charges of wire fraud and making false statements after he was indicted in July 2024. He is scheduled to appear in court Friday for the additional charges.

    Cantrell, the first female mayor in New Orleans’ 300-year history, was elected twice but now becomes the city’s first mayor to be charged while in office in a state with a reputation for public corruption. She has only four months before she leaves office under term limits.

    The mayor once known for her outspoken persona has kept quiet about the charges in the weeks since the 18-count indictment against her and Vappie was announced in mid-August. She did not acknowledge the indictment during public appearances to commemorate the 20th anniversary of Hurricane Katrina late last month.

    Cantrell was already receding into the background of city affairs over the past year and offered no apparent resistance to President Donald Trump’s suggestion earlier this month to send the National Guard and federal agents to New Orleans even as other Democrats bristled.

    She’s also been cast as a pariah by U.S. Department of Housing and Urban Development Secretary Scott Turner, who announced on Sept. 3 that Cantrell was suspended from involvements in federal transactions with HUD. The City Council issued a statement last week saying it had reassured the Housing Authority of New Orleans and the Office of Community Development that other city officials could sign federal contracts instead.

    At times, she and her allies have said the blowback she is experiencing is tinged by double standards she faces as a Black woman. Cantrell said earlier this year, before to the indictment, that she has faced “very disrespectful, insulting, in some cases kind of unimaginable” treatment.

    Cantrell and Vappie used WhatsApp for more than 15,000 messages, where they professed their love and plotted to harass a citizen who helped expose their relationship, delete evidence, make false statements to FBI agents “and ultimately to commit perjury before a federal grand jury,” acting U.S. Attorney Michael Simpson said. Vappie’s 14 trips with Cantrell cost taxpayers $70,000, not including Cantrell’s own travel costs, according to the indictment.

    In a WhatsApp exchange, the indictment says, Vappie recalled accompanying Cantrell to Scotland in October 2021 on a dreamy trip “where it all started.”

    Cantrell, whose husband died in 2023, has denied having anything more than a professional relationship with Vappie. She lashed out at associates who raised questions about the amount of time she spent with her bodyguard, including on wine-tasting trips and in a city-owned apartment, court records show.

    Cantrell joins the ranks of more than 100 people brought up on corruption charges in Louisiana in the past two decades, said Rafael Goyeneche, a former prosecutor who is president of the Metropolitan Crime Commission, a watchdog group.

    ___

    Brook is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.

    [ad_2]

    Source link

  • Anger over corruption and nepotism fuel Nepal’s deadly protests over social media ban

    [ad_1]

    KATHMANDU, Nepal — KATHMANDU, Nepal (AP) — Nepal’s government responded to escalating violent protests over a ban on popular social media platforms with deadly force. The public outrage over the ban and the deaths of 19 protesters on Monday led to the resignation of the prime minister and exposed deep discontent over corruption.

    Prime Minister K.P. Sharma Oli also rolled backed the short-lived ban after protesters turned their anger on politicians by setting fire to homes of some of the country’s top leaders.

    Led by mostly teenagers and young adults, the protests revealed a broader resentment in Nepal, where many people have increasingly become angry with the government over a range of issues, mostly to do with corruption and frustration over nepotism in the country’s politics.

    “Protests over the social media ban were just a catalyst. Frustrations over how the country is being run have long been simmering under the surface. People are very angry and Nepal finds itself in a very precarious situation,” said Prateek Pradhan, editor of Baahrakhari, a Nepalese independent news website.

    Demonstrations in Nepal have been called the protest of Gen Z, which generally refers to people born between 1995 and 2010. They were largely in response to the ban that went into effect last week and government’s larger attempt to regulate social media through a bill that requires platforms to register and submit to local oversight and regulations.

    The bill, which has not yet been fully debated in parliament, has been widely criticized as a tool for censorship and punishing opponents who voice their protests online. Rights groups have called it an attempt by the government to curb freedom of expression and violate fundamental rights.

    At the same time, the protests were also a tipping point of a longstanding sentiment against politicians, their families and concerns over corruption.

    In the weeks before the ban, a social media campaign — particularly on video-sharing platform TikTok — spotlighted the lavish lifestyles of politicians’ children, highlighting disparities between Nepal’s rich and poor. Protesters criticized them of flaunting their luxury possessions in a country where the per capita income is $1,400 a year.

    Widespread criticism over government’s failure to pursue some major corruption cases and create more economic opportunities for the youth also added to the anger. The youth unemployment rate in Nepal was 20% last year, according to the World Bank.

    “All these issues have made the youth of Nepal dissatisfied. They saw no other option but to take to the streets,” said Pradhan.

    The unrest is the worst in decades in the Himalayan nation that is wedged between India and China. It is also far violent than the one in 2006, when an uprising forced Nepal’s former king to give up his authoritarian rule. At least 18 people were killed in the violence. Two years later the parliament voted to abolish the monarchy.

    Over the years, many Nepalis have grown frustrated with the republic, saying it has failed to bring about political stability.

    Earlier in March, two people were killed when supporters of Nepal’s former king clashed with police during a rally in Kathmandu to demand the restoration of the monarchy.

    Even though Oli resigned on Tuesday, it is unclear if the protesters would stop, as many of them have also been calling for the government to dissolve. Such a move could create further instability in Nepal, which has had 13 governments since 2008.

    “A transitional arrangement will now need to be charted out swiftly and include figures who still retain credibility with Nepalis, especially the country’s youth,” said Ashish Pradhan, a senior adviser with the International Crisis Group.

    The security forces’ violent response appears to have further exacerbated tensions. On Tuesday, protests spread to other parts of Nepal, including suburbs of Kathmandu.

    Protester Nima Tendi Sherpa, 19, was shot in the arm by police on Monday. He said the protests began peacefully but turned violent when security forces started firing at the protesters who were trying to break the police barricades.

    “I don’t have any harsh feelings toward the policemen. They were just doing their duty by following orders. But I am angry and enraged at the ones who gave those orders,” Sherpa said. “Now that the fire has already started, I believe it must continue until we achieve true freedom.”

    Pradhan, the news editor, said the latest protests seem to have a larger purpose and are mirroring youth-led uprisings in neighboring Bangladesh and Sri Lanka that toppled both the governments.

    “It appears people are just done with how things have been going on. They want a change,” he said.

    ——

    Saaliq reported from New Delhi.

    [ad_2]

    Source link

  • Kenya Uses U.S.-Funded Antiterrorism Courts for Political Crackdown

    [ad_1]

    NAIROBI, Kenya—The Kenyan government is using special antiterrorism courts—established with U.S. money to combat al Qaeda—to threaten political dissidents with decades in prison.

    Prosecutors have charged 75 Kenyans with terrorism in recent weeks, the majority for allegedly destroying government property during street demonstrations against President William Ruto.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

    [ad_2]

    Caroline Kimeu

    Source link

  • No evidence of politicians linked to Sinaloa cartel, Sheinbaum says

    [ad_1]

    Mexican investigators have found no evidence that sitting Mexican politicians or military commanders are collaborating with the Sinaloa cartel, Mexican President Claudia Sheinbaum said Wednesday.

    “We don’t have at this time any proof against any public servant, or member of the Army [or] Navy,” Sheinbaum responded Wednesday when asked about allegations from Ismael “El Mayo” Zambada, co-founder of the Sinaloa cartel.

    But she vowed that Mexico would prosecute any officials found to be on cartel payrolls. “We won’t cover up for anyone,” the president said at her regular morning news conference.

    Upon entering a guilty plea Monday in U.S. District Court in Brooklyn, Zambada cited a decades-long culture of official graft as essential to the success of the Sinaloa cartel, one of the world’s richest crime syndicates.

    “The organization I led promoted corruption in my home country by paying police, military commanders and politicians,” Zambada, 75, declared, in comments widely publicized in Mexico. “It goes back to the very beginning when I was a young man starting out, and it continued for all these years.”

    Zambada’s comments — citing cartel payoffs across the rule of all major Mexican political parties — added yet another layer of corroboration to what has long been public knowledge: Organized crime has thrived thanks to collaboration with Mexican lawmakers, police officers and soldiers.

    In comments Monday, U.S. Atty. Gen. Pam Bondi said that Zambada “operated with impunity at the highest level of the Mexican drug trafficking world, by paying bribes to government officials, by bribing law enforcement officers.”

    Zambada’s charges come at an extremely sensitive moment, as the Trump administration weighs the possibility of unilateral U.S. military strikes against cartel targets. Sheinbaum has said repeatedly that her government views any unilateral U.S. action on Mexican territory as an egregious violation of sovereignty.

    Zambada’s comments in court have reverberated in Mexico, where Sheinbaum marks her first year in office on Oct. 1.

    Commentators have speculated about whether Zambada’s case and those of other alleged high-level traffickers in U.S. custody — including two sons of the imprisoned Joaquín “El Chapo” Guzmán, Zambada’s former partner in founding the Sinaloa gang — may produce fresh corruption allegations against “narco-politicians,” including members of Sheinbaum’s ruling Morena political bloc.

    Critics here have assailed Sheinbaum’s government for not moving to prosecute Morena bigwigs with purported ties to organized crime.

    “Mexico was once again shown to be a country without rule of law,” wrote columnist Pascal Beltrán del Río in the Mexican daily Excélsior, following the announcement of Zambada’s plea. “If Mexico does nothing … it runs the risk that the United States — out of its own interests — will begin to take in hand the arsenal of information that El Mayo and the rest of the captive capos are surely providing.”

    Sheinbaum regularly touts what she calls an ongoing cartel crackdown. She has dispatched thousands of troops to Mexico’s northern border with the United States, jailed hundreds of alleged trafficking operatives and turned over dozens of suspects over to U.S. authorities. Her political rivals say it’s mostly show to appease the Trump administration.

    While no current lawmakers or military brass had been implicated in corruption, some municipal and state police had been tied to cartel activity, Omar García Harfuch, Sheinbaum’s security chief, told reporters.

    “If an investigation shows any politician or public functionary linked to any criminal group, the complaint would be presented and an investigation started,” said García Harfuch, whose official title is secretary of security and civilian protection. “But we don’t have any proof at this time.”

    Zambada was arrested by U.S. authorities last year during the final year of the administration of ex-President Andrés Manuel López Obrador, Sheinbaum’s predecessor and founder of the ruling Morena political party.

    Jeffrey Lichtman, the attorney representing El Chapo’s sons in their U.S. cases, has explicitly called out Sheinbaum in recent weeks, alleging that she has been “acting as … the public relations arm of the Zambada drug trafficking organization.” Sheinbaum subsequently filed a defamation lawsuit against Lichtman in a Mexican court. Lichtman fired back in a post on Instagram, calling the president’s lawsuit “a cheap effort to score political points.”

    Sheinbaum has insisted that official corruption has largely ended since López Obrador took office in 2018 — an assertion dismissed as absurd by opposition lawmakers. López Obrador repeatedly rejected allegations that drug-trafficking money helped fund several of his political campaigns, but he charged that graft was rampant in past administrations.

    The most notorious case was that of Genaro García Luna, a former federal security chief who is serving a 38-year prison term in the United States after his conviction for receiving millions of dollars in bribes from the Sinaloa cartel. García Luna served under former Mexican President Felipe Calderón, political arch-enemy of López Obrador.

    As part of his plea agreement, U.S. authorities said, Zambada also agreed to hand over $15 billion in alleged drug-trade proceeds generated since the 1980s. While experts said it’s unlikely that the massive sum will ever be collected, Sheinbaum said Wednesday that Mexico would demand a part of any such haul “for the people of Mexico.”

    Many questions still remain about the mysterious operation that culminated in the arrest of Zambada in July 2024.

    Sheinbaum has complained that Washington has yet to provide any clarification about the sequence of events that led to Zambada and Joaquín Guzmán López — a son of El Chapo Guzmán — being flown from Mexico to the United States. The two were arrested outside El Paso after arriving on a private plane that reportedly took off from outside Culiacán, the capital of Sinaloa state.

    Zambada has said that he was set up and kidnapped by Guzmán López, a former head of the Sinaloa cartel faction known as Los Chapitos.

    Ken Salazar, the former U.S. ambassador to Mexico, told reporters last year that Zambada was brought to the United States against his will — but that no U.S. personnel, resources or aircraft were involved. U.S. authorities were “surprised” when Zambada and Guzmán turned up on the U.S. side of the border, Salazar told reporters.

    But Mexican officials are skeptical. They suspect that Washington orchestrated the entire operation, likely enlisting the support of El Chapo’s son to abduct Zambada and transport him to U.S. territory.

    The apparent kidnapping of Zambada triggered a bloody civil war within the Sinaloa cartel — pitting Zambada loyalists against supporters of Los Chapitos — that has left hundreds dead. The intra-cartel struggle continues to claim casualties in Sinaloa state.

    Staff writer Keegan Hamilton in Brooklyn and special correspondent Cecilia Sánchez Vidal in Mexico City contributed to this report.

    [ad_2]

    Patrick J. McDonnell

    Source link

  • Rhode Island prosecutor in viral arrest video placed on unpaid leave, job future unclear

    [ad_1]

    NEWYou can now listen to Fox News articles!

    The Rhode Island assistant attorney general, whose arrest went viral earlier this week after she seemingly tried to use her position to evade arrest, telling officers they’d “regret” putting her behind bars, will be placed on unpaid leave.

    Special Assistant Attorney General Devon Flanagan, who was arrested for trespassing, was placed on paid leave directly after the incident while the Rhode Island Attorney General’s office reviewed the matter. But, starting Monday, Flanagan will go on unpaid leave, the office told Fox News Digital. 

    It is unclear how long Flanagan will remain on unpaid leave until a final determination is made on her employment. The Attorney General’s office did not respond to additional questions about its ongoing review of the matter, or when it might make a final decision.

    FORMER TOP ADAMS ADVISOR, DONORS CHARGED IN BRIBERY CASE; CUOMO MOCKS WITH POTATO CHIP STUNT

    Bodycam footage shows the arrest of a Rhode Island prosecutor, Devon Flanagan, who berated officers and yelled at them, ‘I’m an AG! I’m an AG!’ in an apparent attempt to skirt the trouble she was facing. (Newport Police Department)

    State payroll records, according to the Boston Globe, show that Flanagan was raking in approximately $113,000 a year in her position as a Special Assistant Attorney General.

    “I’m an AG! I’m an AG!” Flanagan could be heard saying to police as they tried to detain her for failing to comply with their demands. “You’re going to regret this. You’re going to regret it. I’m an A-” Flanagan said as she was escorted to the back of a police car and the door was shut.

    “Good for you, I don’t give a s—,” one of the arresting officers can be heard saying back at one point.

    CONTROVERSIAL NEW ORLEANS MAYOR INDICTED FOR ALLEGED ILLICIT RELATIONSHIP WITH TAXPAYER-FUNDED BODYGUARD

    In a subsequent radio interview following Flanagan’s arrest, Rhode Island Attorney General Peter Neronha called the incident “inexcusable behavior” that will likely result in “strong, strong sanction[s].” However, he did note that this isn’t the first time he’s dealt with a case like this involving his staff.

    “I’ve got 110 lawyers, she embarrassed all of them. I haven’t had many issues like this while I’ve been attorney general. I’ve had a few, and I let one guy go for driving drunk – had to bring him back – well I didn’t have to, but did bring him back after I fired him about a year later because, again, I needed somebody to go into a courtroom and try ugly, hard murder cases,” Neronha told WPRO Radio.

    Rhode Island Attorney General Peter Neronha

    Rhode Island Attorney General Peter Neronha called Flanagan’s behavior “inexcusable,” but said he previously brought back a former attorney who was once arrested for drunk driving.  (Lane Turner/The Boston Globe via Getty Images)

    “It’s just really hard to find and keep capable lawyers and so I just have to think really carefully about this one. But no question there will be a strong, strong sanction here,” the attorney general continued. 

    Neronha added that he believed the incident was alcohol-related, and noted that doesn’t necessarily excuse the behavior. He also said Flanagan had an “unblemished” record working under him, is thought highly of by the state bar association and is taking steps to make amends with the New Port Police Department, including issuing an apology.

    CLICK HERE TO GET THE FOX NEWS APP 

    Rhode Island prosecutor gets arrested

    A screenshot from Newport Police Department bodycam footage shows Rhode Island prosecutor Devon Flanagan arguing with police. (Newport Police Department)

    The attorney general was asked about certain details of the incident, including whether Flanagan was right in telling the officer it was the law that he must turn off his body camera upon request by a citizen.

    “I’m not sure what she was thinking. Clearly, she was not thinking straight,” said Neronha, who added that Flanagan was incorrect in her assertion that police officers must shut off their bodycam upon request.

    “She’s humiliated herself,” Neronha added. “Regardless of what happens vis a vis her employment with us, she’s going to have a long time coming back from this. It’s just really unfortunate.”

    [ad_2]

    Source link

  • NYC mayoral hopefuls shrug off latest corruption allegations engulfing Adams team

    [ad_1]

    NEW YORK — The leading contenders to replace New York City Mayor Eric Adams treated the latest corruption allegations roiling his inner circle as more of the same — and more reason to turn the page on his tumultuous tenure.

    But none called Thursday for Adams to abandon his long-shot bid for reelection. He doesn’t pose a formidable threat anyway as a candidate weighed down by years of scandals, including his own, now-dismissed bribery charges. Adams is polling a distant fourth — behind the Republican nominee in the deep blue city — with political newcomer Zohran Mamdani as the heavy favorite to succeed him.

    Even former Gov. Andrew Cuomo, who would most benefit from an Adams-less race because their bases overlap, wouldn’t go as far as telling the mayor to drop out or resign.

    “People have to decide who the next mayor is going to be,” Cuomo told reporters Thursday in Manhattan. “I’m saying I don’t believe he is a viable choice.”

    The indictment of Adams’ former chief adviser and longtime friend Ingrid Lewis-Martin on charges spanning four alleged bribery schemes rocked City Hall on Thursday but barely made ripples in the race for mayor. The incumbent, a retired NYPD captain with a blue-collar upbringing once regarded as the Democratic Party’s next star, is highly unlikely to win another term. He had already skipped the Democratic primary in June in favor of heading straight to the general election and running as an independent.

    The incumbent has touted falling crime rates, record job growth and hundreds of thousands ofnew housing units in the pipeline as evidence that he deserves four more years running the country’s largest city. But many of those boasts are overblown and the mayor’s legitimate accomplishments have been overshadowed by the stench of corruption.

    Adams sought to distance himself from the latest indictments, noting that he is not accused of wrongdoing. But it’s a much heavier lift demonstrating he’s moved on from close friends who’ve been investigated and charged with corruption because they — especially Lewis-Martin — have been a visible presence at his recent campaign rallies.

    Lewis-Martin’s indictment came one day after another former Adams aide, Winnie Greco, handed a reporter with THE CITY a chip bag with a wad of cash hidden inside after an Adams campaign event.

    Cuomo, running as an independent after losing the Democratic primary to Mamdani by nearly 13 points, paid homage to the surreal incident Thursday by giving out bags of chips at his news conference and telling reporters: “Enjoy the potato chips but they’re just potato chips.”

    The former governor returned to his argument that he’s best positioned to stand up to Donald Trump on behalf of New Yorkers, calling Adams a “wholly owned subsidiary” of the president and arguing of a Mamdani mayoralty, “I will bet you Trump takes control of New York City within hours of his inauguration.”

    Mamdani, a 33-year-old democratic socialist state assemblymember, has argued he’d aggressively resist Trump’s policies while Cuomo keeps the president close. Despite his inexperience and far-left policies, he looks poised to be the next mayor and took a cautious, low-profile approach to the latest corruption scandals buffeting City Hall.

    His statement about Lewis-Martin’s indictment stuck to the affordability theme that propelled him to the Democratic nomination.

    “While New Yorkers struggle to afford the most expensive city in America, Eric Adams and his administration are too busy tripping over corruption charges to come to their defense,” Mamdani said. “Corruption isn’t just about what a politician gains, it’s about what the public loses.”

    Adams gave no indication Thursday that he plans to leave the race for mayor. Even if he does, Mamdani would remain the frontrunner albeit with Cuomo as steeper competition, said Democratic strategist Trip Yang, who is not working on any of the mayoral campaigns.

    “If Adams drops out, polling has shown that most of the support goes to Andrew Cuomo. Cuomo goes from maybe a 20-point deficit to a 10-point deficit,” Yang said. “If Adams drops out, it’ll give Andrew Cuomo a lot more energy than Cuomo’s new videos for sure.”

    Yang was referencing the social media videos the former governor has been posting that seek to emulate how Mamdani reached younger, more online voters in the primary.

    New York City Council Member Lincoln Restler, a longtime Adams adversary, told POLITICO, “He appears so deluded and disconnected from the reality of the failures of his administration that I really do believe he’s going to run through the tape and get 7 percent of the vote.”

    City Council Member Chi Ossé, a Mamdani supporter, said the Lewis-Martin indictment might not even hurt Adams that much in the race.

    “He is polling under 10 percent as the currently elected mayor,” Ossé told POLITICO. “Those who are with him are with him despite all of his corruption — and I’m sure they’ll continue to be with him after this.”

    Curtis Sliwa, the Republican candidate for mayor who’s polling ahead of Adams in Democrat-dominated New York City, knocked both the mayor and the former governor as elected officials shrouded by corruption. Top Cuomo adviser Joe Percoco was convicted on federal bribery charges but the U.S. Supreme Court tossed the case in 2023. The former governor himself faced calls to resign amid sexual harassment allegations four years ago and has more recently said he regrets stepping down.

    “For him to start attacking Eric Adams as being in charge of a corrupt administration, well, if he’s pointing one finger, two fingers are pointing back at him,” Sliwa said.

    But even Sliwa didn’t want Adams to drop out, saying he trusts the voters of New York to make the right choice.

    Jeff Coltin contributed to this report.

    [ad_2]

    Source link

  • Prosecutors link LA contract to Smartmatic ‘slush fund’ as voting tech firm battles Fox in court

    [ad_1]

    MIAMI (AP) — Smartmatic, the elections-technology company suing Fox News for defamation, is now contending with a growing list of criminal allegations against some of its executives — including a new claim by federal prosecutors that a “slush fund” for bribing foreign officials was financed partly with proceeds from the sale of voting machines in Los Angeles.

    The new details about the criminal case surfaced this month in court filings in Miami, where the company’s co-founder, Roger Pinate, and two Venezuelan colleagues were charged last year with bribing officials in the Philippines in exchange for a contract to help run that country’s 2016 presidential elections. Pinate, who no longer works for Smartmatic, has pleaded not guilty.

    To buttress the case, federal prosecutors are seeking to introduce evidence they argue shows that some of the nearly $300 million the company was paid by Los Angeles County to help modernize its voting systems was diverted to a fund controlled by Pinate through the use of overseas shell companies, fake invoices and other means.

    Smartmatic itself hasn’t been charged with breaking any laws, nor have U.S. prosecutors accused Smartmatic or its executives of tampering with election results. Similarly, they haven’t accused Los Angeles County officials of wrongdoing, or said whether they were even aware of the alleged bribery scheme. County officials say they weren’t.

    But the case against Pinate is unfolding as Smartmatic is pursuing a $2.7 billion lawsuit accusing Fox of defamation for airing false claims that the company helped rig the 2020 U.S. presidential election. Fox says it was legitimately reporting newsworthy allegations.

    Smartmatic said the Justice Department’s new filing was filled with “misrepresentations” and is “untethered from reality.”

    “Let us be clear: Smartmatic wins business because we’re the best at what we do,” the company said in a statement. “We operate ethically and abide by all laws always, both in Los Angeles County and every jurisdiction where we operate.”

    Fox questions Smartmatic’s dealings in LA

    Still, Fox has gone to court to try to get more information about L.A. County’s dealings with Smartmatic. The network has long tried to leverage the bribery allegations to undermine Smartmatic’s narrative about its business prospects – a key component in calculating any potential damages — and portray it as a scandal-plagued company brought low by its own legal problems, not Fox’s broadcasts.

    South Florida-based Smartmatic was founded more than two decades ago by a group of Venezuelans who found early success working for the government of the late Hugo Chavez, a devotee of electronic voting. The company later expanded globally, providing voting machines and other technology to help carry out elections in 25 countries, from Argentina to Zambia.

    It was awarded its contract to help with Los Angeles County elections in 2018. The contract, which Smartmatic continues to service, gave the company an important foothold in what was then a fast-expanding U.S. voting-technology market.

    But Smartmatic has said its business tanked after Fox News gave President Donald Trump’s lawyers a platform to paint the company as part of a conspiracy to steal the 2020 election.

    Fox itself eventually aired a piece refuting the allegations after Smartmatic’s lawyers complained, but it has aggressively defended itself against the defamation lawsuit in New York.

    “Facing imminent financial collapse and indictment, Smartmatic saw a litigation lottery ticket in Fox News’s coverage of the 2020 election,” the network’s lawyers said in a court filing.

    Smartmatic has disputed Fox’s characterization in court filings as “lies” and “another attempt to divert attention from its long-standing campaign of falsehoods and defamation.”

    LA clerk deposed about trip, gifted meal

    As part of its effort to investigate Smartmatic’s work in Los Angeles, Fox has sued to force LA County Clerk Dean Logan to hand over public records about his dealings with Smartmatic’s U.S. affiliate.

    Fox’s lawyers also questioned Logan in a deposition about a dinner a Smartmatic executive bought for him at the members-only Magic Castle club and restaurant in Los Angeles and a Smartmatic-paid trip that Logan made to Taiwan in 2019 to oversee the manufacturing of equipment by a Smartmatic vendor. U.S. prosecutors claim that vendor was deeply involved in the alleged kickback scheme in the Philippines. The five-day trip included business class airfare, hotel and numerous meals as well as time for sightseeing, Fox said.

    “The trip’s itinerary demonstrates that the trip was not a financial inspection or audit. It was a boondoggle,” Fox said in court filings.

    Logan, who did not report the gifts in his financial disclosures, said in his 2023 deposition that the meal at the Magic Castle was a “social occasion” unrelated to business and that he was not required to report the trip to Taiwan because his visit was covered by the contract.

    Mike Sanchez, a spokesman for Logan’s office, said in a statement that the bribery allegations are unrelated to the company’s work for L.A. County and that the county had no knowledge of how the proceeds from its contract would be used. All of Smartmatic’s work has been evaluated for compliance with the contract’s terms, Sanchez added, and as soon as Pinate was indicted he and the other defendants were banned from conducting business with the county.

    As for the trip to Taiwan, Sanchez said another county official joined Logan for the trip and the two conducted several on-site visits and conducted detailed reviews of electoral technology products that were required prior the start of their manufacturing. Logan’s spouse accompanied him on the trip, but at the couple’s own expense, the spokesman added.

    “Unfortunately, this is an attempt to use the County as a pawn in two serious legal actions to which the County is not a party,” Sanchez said.

    Smartmatic has settled two other defamation lawsuits it brought against conservative news outlets Newsmax and One America News Network over their 2020 U.S. election coverage. Settlement terms weren’t disclosed.

    Prosecutors claim bribe paid in Venezuela

    U.S. prosecutors in Miami have also accused Pinate of secretly bribing Venezuela’s longtime election chief by giving her a luxury home with a pool in Caracas. Prosecutors say the home was transferred to the election chief in an attempt to repair relations following Smartmatic’s abrupt exit from Venezuela in 2017 when it accused President Nicolas Maduro ‘s government of manipulating tallied results in elections for a rubber-stamping constituent assembly.

    Smartmatic has denied the bribery allegations, saying it ceased all operations in Venezuela in 2017 after blowing the whistle on the government and has never sought to secure business there again.

    “There are no slush funds, no gifted house,” the company said. Instead, it accused Fox of engaging in “victim-blaming” and attempts to use “frivolous” court filings “to smear us further, twisting unproven Justice Department allegations.”

    ___

    Peltz reported from New York.

    [ad_2]

    Source link

  • Prosecutors link LA contract to Smartmatic ‘slush fund’ as voting tech firm battles Fox in court

    [ad_1]

    MIAMI — Smartmatic, the elections-technology company suing Fox News for defamation, is now contending with a growing list of criminal allegations against some of its executives — including a new claim by federal prosecutors that a “slush fund” for bribing foreign officials was financed partly with proceeds from the sale of voting machines in Los Angeles.

    The new details about the criminal case surfaced this month in court filings in Miami, where the company’s co-founder, Roger Pinate, and two Venezuelan colleagues were charged last year with bribing officials in the Philippines in exchange for a contract to help run that country’s 2016 presidential elections. Pinate, who no longer works for Smartmatic, has pleaded not guilty.

    To buttress the case, federal prosecutors are seeking to introduce evidence they argue shows that some of the nearly $300 million the company was paid by Los Angeles County to help modernize its voting systems was diverted to a fund controlled by Pinate through the use of overseas shell companies, fake invoices and other means.

    Smartmatic itself hasn’t been charged with breaking any laws, nor have U.S. prosecutors accused Smartmatic or its executives of tampering with election results. Similarly, they haven’t accused Los Angeles County officials of wrongdoing, or said whether they were even aware of the alleged bribery scheme. County officials say they weren’t.

    But the case against Pinate is unfolding as Smartmatic is pursuing a $2.7 billion lawsuit accusing Fox of defamation for airing false claims that the company helped rig the 2020 U.S. presidential election. Fox says it was legitimately reporting newsworthy allegations.

    Smartmatic said the Justice Department’s new filing was filled with “misrepresentations” and is “untethered from reality.”

    “Let us be clear: Smartmatic wins business because we’re the best at what we do,” the company said in a statement. “We operate ethically and abide by all laws always, both in Los Angeles County and every jurisdiction where we operate.”

    Still, Fox has gone to court to try to get more information about L.A. County’s dealings with Smartmatic. The network has long tried to leverage the bribery allegations to undermine Smartmatic’s narrative about its business prospects – a key component in calculating any potential damages — and portray it as a scandal-plagued company brought low by its own legal problems, not Fox’s broadcasts.

    South Florida-based Smartmatic was founded more than two decades ago by a group of Venezuelans who found early success working for the government of the late Hugo Chavez, a devotee of electronic voting. The company later expanded globally, providing voting machines and other technology to help carry out elections in 25 countries, from Argentina to Zambia.

    It was awarded its contract to help with Los Angeles County elections in 2018. The contract, which Smartmatic continues to service, gave the company an important foothold in what was then a fast-expanding U.S. voting-technology market.

    But Smartmatic has said its business tanked after Fox News gave President Donald Trump’s lawyers a platform to paint the company as part of a conspiracy to steal the 2020 election.

    Fox itself eventually aired a piece refuting the allegations after Smartmatic’s lawyers complained, but it has aggressively defended itself against the defamation lawsuit in New York.

    “Facing imminent financial collapse and indictment, Smartmatic saw a litigation lottery ticket in Fox News’s coverage of the 2020 election,” the network’s lawyers said in a court filing.

    Smartmatic has disputed Fox’s characterization in court filings as “lies” and “another attempt to divert attention from its long-standing campaign of falsehoods and defamation.”

    As part of its effort to investigate Smartmatic’s work in Los Angeles, Fox has sued to force LA County Clerk Dean Logan to hand over public records about his dealings with Smartmatic’s U.S. affiliate.

    Fox’s lawyers also questioned Logan in a deposition about a dinner a Smartmatic executive bought for him at the members-only Magic Castle club and restaurant in Los Angeles and a Smartmatic-paid trip that Logan made to Taiwan in 2019 to oversee the manufacturing of equipment by a Smartmatic vendor. U.S. prosecutors claim that vendor was deeply involved in the alleged kickback scheme in the Philippines. The five-day trip included business class airfare, hotel and numerous meals as well as time for sightseeing, Fox said.

    “The trip’s itinerary demonstrates that the trip was not a financial inspection or audit. It was a boondoggle,” Fox said in court filings.

    Logan, who did not report the gifts in his financial disclosures, said in his 2023 deposition that the meal at the Magic Castle was a “social occasion” unrelated to business and that he was not required to report the trip to Taiwan because his visit was covered by the contract.

    Mike Sanchez, a spokesman for Logan’s office, said in a statement that the bribery allegations are unrelated to the company’s work for L.A. County and that the county had no knowledge of how the proceeds from its contract would be used. All of Smartmatic’s work has been evaluated for compliance with the contract’s terms, Sanchez added, and as soon as Pinate was indicted he and the other defendants were banned from conducting business with the county.

    As for the trip to Taiwan, Sanchez said another county official joined Logan for the trip and the two conducted several on-site visits and conducted detailed reviews of electoral technology products that were required prior the start of their manufacturing. Logan’s spouse accompanied him on the trip, but at the couple’s own expense, the spokesman added.

    “Unfortunately, this is an attempt to use the County as a pawn in two serious legal actions to which the County is not a party,” Sanchez said.

    Smartmatic has settled two other defamation lawsuits it brought against conservative news outlets Newsmax and One America News Network over their 2020 U.S. election coverage. Settlement terms weren’t disclosed.

    U.S. prosecutors in Miami have also accused Pinate of secretly bribing Venezuela’s longtime election chief by giving her a luxury home with a pool in Caracas. Prosecutors say the home was transferred to the election chief in an attempt to repair relations following Smartmatic’s abrupt exit from Venezuela in 2017 when it accused President Nicolas Maduro ‘s government of manipulating tallied results in elections for a rubber-stamping constituent assembly.

    Smartmatic has denied the bribery allegations, saying it ceased all operations in Venezuela in 2017 after blowing the whistle on the government and has never sought to secure business there again.

    “There are no slush funds, no gifted house,” the company said. Instead, it accused Fox of engaging in “victim-blaming” and attempts to use “frivolous” court filings “to smear us further, twisting unproven Justice Department allegations.”

    ___

    Peltz reported from New York.

    [ad_2]

    Source link

  • L.A. County wants to crack down on corruption. Is it worth up to $21 million?

    L.A. County wants to crack down on corruption. Is it worth up to $21 million?

    [ad_1]

    As local government careens from one corruption scandal to the next, the city and county of Los Angeles each charged forward this election season with ballot measures to try to crack down on unethical behavior by public officials.

    The city wants to bolster its nearly 35-year-old ethics commission with Charter Amendment ER, which would give the watchdog body a minimum yearly budget of $7 million.

    The county, meanwhile, wants to create its first ethics commission with Measure G.

    The county ethics commission, along with an office of ethics compliance, would come with no set budget. But according to a Thursday county analysis reviewed by The Times, the ethics reforms in Measure G could cost as much as $21.9 million a year, with salaries and employee benefits making up most of the price.

    If voters approve Measure G on Nov. 5, a task force would be set up to determine the shape of the ethics commission — for example, how many members it should have.

    The cost estimate has left supporters and detractors with sticker shock.

    “That is so absurd,” said Rob Quan, an organizer with Unrig LA, which has advocated for measures to eliminate corruption in the city and county. “I’m baffled by this.”

    “We’re not even in the right ballpark,” said Quan, who previously told the county supervisors that he thought the ethics reforms in Measure G were “half-baked.”

    “If the city could do it for $7 million, why is it going to cost so much more than the county?” said political science professor Fernando Guerra, director of the Center for the Study of Los Angeles. at Loyola Marymount University.

    But Guerra, who co-wrote the ballot argument in favor of Measure G, said he still thought the ethics reform package was a no-brainer for a county with a budget of $49 billion.

    “Even if it’s that amount, that’s so cheap for what you’re going to get,” added Guerra. “It’s a drop in the bucket.”

    The five county supervisors are divided on Measure G, which in addition to creating an ethics commission would nearly double the size of the Board of Supervisors and bring on an elected executive who would act as a quasi-mayor.

    Supervisors Hilda Solis, Janice Hahn and Lindsey Horvath pushed for the measure, arguing it would make the county more responsive to its 10 million constituents. Supervisors Kathryn Barger and Holly Mitchell said it was misguided, with too vague a price tag.

    Everyone, however, said they could get on board with the idea of an ethics commission. Last month, the board voted unanimously to ask county lawyers to look at what it would cost to carry out the ethics reforms — regardless of whether Measure G passed.

    That preliminary report, returned last week, put the yearly cost at between $16.8 million with 73 employees and $21.9 million with 93 employees.

    “Wow, that is a big staff,” said David Tristan, head of the city’s ethics commission, which has a budget of $6.3 million and employs 45 people. “I’d love to have that budget.”

    About 13% of the yearly cost would go to services and supplies, while the rest would pay for staff, according to the county report.

    The report does not include a cost for setting up the commission. The auditor’s office previously said that one-time costs to implement all of the proposals in Measure G — which would include expanding the board — would be about $8 million.

    The Yes on Measure G campaign lambasted the county’s report as rushed and simplistic, “meant to dissuade voters before a critical election.”

    “Measure G is historic and it’s no secret that special interests and long-time bureaucrats are scared of real accountability and reform,” said campaign chair Morgan Miller.

    A majority of the supervisors said they still wanted to move forward.

    “The cost estimate provided in this report seems high and I wonder how they landed on this number,” Hahn said. “But we can’t afford not to do this.”

    Barger and Mitchell, who have opposed Measure G, similarly said they saw the need for an ethics commission, though Barger called the cost range “concerning given our county’s fiscal forecast” and Mitchell said she would look for places to make “cost-efficient adjustments.”

    For those already skeptical that the commission would do much to root out corruption, the high cost was further proof that it was a bad idea.

    “What can they cut? Firefighters? Child welfare workers? The sheriff’s budget? I don’t see them proposing to cut their salaries,” said former Los Angeles City Councilmember Ruth Galanter. “If they have that much money lying around in the county budget, they should all be fired, for crying out loud.”

    Galanter, who held office from 1987 to 2003, vehemently opposed the city’s ethics commission when it was created in 1990, convinced it would do little to squash corruption.

    Following the corruption-related convictions of two former city council members, a former deputy mayor and a former city commissioner, Galanter said her fears were borne out. She suspects the same will be true for the county’s attempt.

    “What an incredible waste of time and money this ethics things is,” said Galanter. “It does not produce more ethical elected officials. What’s the point?”

    If Measure G passes, the county would need to create the independent ethics commission and the office of ethics compliance by 2026. The commission would be responsible for investigating misconduct by county employees and updating county rules regarding conflicts of interest and lobbying, among other duties. The office of ethics compliance, led by an ethics compliance officer, would provide support to the commission.

    The language in the ballot measure prohibits the county from raising taxes to pay for the changes.

    Horvath, who spearheaded the measure, said there is enough money in the county budget to pay for the reforms, since the county could tap staff who are already doing similar ethics-related work in the executive office, the Registrar-Recorder and the Auditor Controller’s office.

    “Nothing is more important than safeguards against corruption,” she said. “The staff and funding already exist in our current form of government.”

    Sean McMorris, who specializes in ethics and accountability issues for the advocacy group California Common Cause, said the price tag doesn’t faze him. A robust ethics commission is expensive, he said, which is why only bigger cities typically create them.

    He’s more concerned about what shape the commission will take. Many of the details around the ethics commission are meant to be hammered out once voters have already approved the measure, he said.

    “It’s just like, wait and see,” he said. “It makes me nervous.”

    [ad_2]

    Rebecca Ellis

    Source link

  • Gelato Godfather: Inside the Sicilian ice cream empire built on mafia money

    Gelato Godfather: Inside the Sicilian ice cream empire built on mafia money

    [ad_1]

    Two scoops of pistachio, one of corruption. For years holidaymakers have guzzled Sicilian gelato at famous parlours in Palermo, unaware that the booming businesses were controlled by organised crime.

    The fraud was a textbook case for detectives trained to sniff out dirty money, but even with three mobster classics — a suspicious bankruptcy, a front man and a scheming “Godfather” — it took years for investigators to shut the operation down.

    The Brioscia brand, made up of two ice cream parlours, was thriving at the end of the 2010s, attracting locals and foreign visitors alike with its glittering gold stars on travel websites.

    The shops were run by Mario Mancuso. Behind the scenes was Michele Micalizzi who had served several stretches in jail for Mafia association.

    Mancuso took care of the ice cream, Micalizzi managed the rest.

    That included taking a cut of the profits for protecting Mancuso from extortion attempts by other gangsters, a judicial source told AFP.

    But the company was in the name of Mancuso’s wife and when divorce loomed, the men feared they would lose control.

    They declared Brioscia bankrupt in 2021, blaming the four million euro ($4.3 million) hole in the books on the Covid lockdown, the source said.

    “It was a flourishing business, very well known in Palermo. The bankruptcy was therefore unjustified,” he told AFP.

    Suspicious investigators used wiretaps to discover the two men — far from being bankrupt — had grand plans to open parlours abroad.

    The pair launched a new company called Sharbat, renaming the shops, the source said.

    “I’m not even sure the employees knew who they were working for”, a nearby shop worker said on condition of anonymity.

    Investigators say the men divided the windfall, with Micalizzi passing part of it to his jailed relatives to pay for legal fees or sundries.

    But on August 12, the police pounced, arresting both men and four accomplices, and seizing 1.5 million euros.

    Mancuso and Micalizzi are being prosecuted for criminal association of a mafia nature, extortion and fraudulent bankruptcy.

    The Mafia’s billions

    Between drug trafficking, racketeering, public procurement, legal companies or empty shells dedicated to money laundering, Italy’s Central Bank estimates the annual turnover of the country’s organised crime groups at 40 billion euros, or two percent of national wealth.

    The mob still makes good money from traditional crimes such as drug trafficking. The ‘Ndrangheta in the southern region of Calabria, for example, is responsible for much of Europe’s cocaine trade.

    “It also makes direct investments in the legal economy,” according to Rocco Sciarrone, who teaches criminal psychology at Turin University.

    Over two-thirds of mafia infiltrations are in the construction, trade, real estate and manufacturing sectors, according to a 2022 report by economist Antonio Parbonetti.

    The mob also has tentacles in agriculture, hotels and restaurants, logistics, transport, and waste management.

    How much the crime groups “invest” in each sector varies significantly from one region to another.

    “The socio-economic fabric (in Sicily) is made up of small family businesses that lend themselves very well to money laundering,” said Eliseo Davi from Palermo University.

    According to the Parbonetti report, one in two companies controlled by the mafia is a so-called “star” company, which generates comfortable income and employs people, and therefore has a broad social, economic and political support.

    In the Palermo gelato affair, the company did not have the necessary permits for one of the two shops, prompting calls for a probe into whether there was collusion with public officials.

    Near the parlours lies the former home of Giovanni Falcone, an anti-mafia judge whose 1992 assassination by the mob triggered a crackdown by the state that permanently weakened Cosa Nostra.

    Just like US law enforcement agent Eliot Ness, who brought down gangster Al Capone, Falcone had a simple rule: follow the money.

    [ad_2]

    Victor Le Boisselier, Gael Branchereau, AFP

    Source link

  • El Chapo’s sons discussing plea with US government: Lawyer

    El Chapo’s sons discussing plea with US government: Lawyer

    [ad_1]

    The sons of notorious drug kingpin Joaquin “El Chapo” Guzman are in talks to cut a plea deal with United States prosecutors, according to their lawyer.

    The news was unveiled during a court hearing in Chicago on Monday for El Chapo’s younger son, Ovidio Guzman, who, along with his brother Joaquin Guzman Lopez, is accused of helping run the Sinaloa cartel his father once led and funnelling massive amounts of narcotics into the US.

    The Guzman brothers – along with two other siblings still in Mexico – make up the “El Chapitos” faction of the feared cartel. Both have pleaded not guilty in prior court hearings.

    Their father “El Chapo” is serving life in prison in a supermax facility in the US state of Colorado for a massive drug conspiracy.

    The Guzman sons’ reported plea talks come after one of the brothers was arrested at a Texas airport in July along with Ismael “El Mayo” Zambada, the notorious head of a rival cartel faction.

    Zambada, the 76-year-old co-founder of the Sinaloa cartel, was described by prosecutors as “one of the world’s most notorious and dangerous drug traffickers”, who had evaded capture for decades.

    He pleaded not guilty to 17 counts of drug trafficking, murder and other charges in a New York court last month.

    “Kidnapped”

    Zambada’s lawyer has claimed his client was kidnapped and forced onto a small plane bound for Texas where US law enforcement was waiting.

    Mexican prosecutors have filed kidnapping charges against Joaquin Guzman Lopez, suggesting he smuggled El Mayo into the US as a prize to try to get favourable treatment for his jailed brother, Ovidio.

    Experts say the Chapitos could provide valuable evidence in the case against Zambada, as well as possible corruption investigations against officials in Mexico.

    “Any cooperation agreement with any drug trafficker implies that he will inform on possible Mexican federal government officials, military, police, in the transfer of drugs,” said Jesus Esquivel, the Washington correspondent for the Mexican magazine, Proceso.

    As an example, Esquivel cited the indictment of Mexico’s former public security chief, Genaro Garcia Luna, who was sentenced last week in New York to 38 years in jail.

    Separate cases

    Lawyer Jeffrey Lichtman, who will defend both jailed Guzman brothers, told reporters that plea talks with the US justice system are just getting off the ground, according to several media reports.

    He also stressed that the sons are facing “two totally different cases”.

    “This isn’t a package deal in terms of one doing one and one doing the other … The government views them differently,” Lichtman was quoted by ABC News Chicago as saying.

    Assistant US Attorney Andrew Erskine said that both the prosecution and defence hoped to settle Ovidio’s case before trial and expected progress before the next hearing scheduled for January 7.

    US Drug Enforcement Administration chief Anne Milgram said Zambada’s arrest “strikes at the heart of the cartel that is responsible for the majority of drugs, including fentanyl and methamphetamine, killing Americans from coast to coast”.

    Cartel war

    After the Guzman Lopez and El Mayo’s arrests, a war erupted between the two vying cartel camps, with daily shootouts wreaking havoc in Culiacan, the capital of Sinaloa state. At least 72 people have been killed and 209 people kidnapped, according to state prosecutor Claudia Sanchez.

    One of the recent targets was the local newspaper El Debate, which had been covering the continuing hostilities. On October 18, the publication was sprayed with gunfire, but no injuries were reported.

    The Sinaloa cartel has long been dreaded for its brutality against perceived enemies, including law enforcement and critical journalists.

    US Attorney General Merrick Garland, in announcing charges last year against the Guzman brothers and their associates, detailed alleged cases of torture by the cartel, including experimenting on victims with fentanyl and feeding others to tigers.

    [ad_2]

    Source link

  • Feds Charge NYC Mayor Adams With Bribery, Fraud and Soliciting Illegal Foreign Donations

    Feds Charge NYC Mayor Adams With Bribery, Fraud and Soliciting Illegal Foreign Donations

    [ad_1]

    Credit: Office of U.S. House Speaker, Public domain, via Wikimedia Commons

    By Christian Wade (The Center Square)

    New York City Mayor Eric Adams has been indicted on federal charges of bribery, fraud and soliciting illegal foreign campaign donations stemming from an investigation spanning nearly a decade.

    The indictment, unsealed on Thursday by the U.S. Attorney for the Southern District of New York Damian Williams’ office, includes five charges: conspiracy to commit wire fraud, federal program bribery and to receive campaign contributions by foreign nationals; wire fraud; solicitation of a contribution by a foreign national; solicitation of a contribution by a foreign national and bribery. 

    RELATED: Secret Service Warned About Roof at Trump Rally Shooting

    Williams said prosecutors allege in the indictment that Adams sought and accepted more than $10 million in illegal ‘straw’ contributions for his 2021 mayoral bid that were traced to Turkey.

    “Mayor Adams took these contributions even though he knew they were illegal, even though he knew these contributions were an attempt by a Turkish government official and Turkish businessman to buy influence with him,” Williams said at a press briefing on Thursday. “The mayor had a duty to disclose these gifts on his annual financial disclosure forms so that the public could see who is giving him what.” 

    Federal prosecutors also allege in the indictment that Adams “sought and accepted improper valuable benefits” since at least 2014, when he was then the Brooklyn borough president. They say Adams also benefited from more than $100,000 in gifts from the Turkish government, including free travel to Turkey, meals and hotel rooms, and created “fake paper trails” to hide the gifts or make them appear as if he hadn’t paid for them. 

    In exchange, Adams, as mayor, pressured the New York Fire Department to open a new Turkish consular building in Manhattan despite not passing a fire safety inspection. Prosecutors said an FDNY official was threatened with being fired if he didn’t follow the mayor’s directive. 

    “As Adams’ prominence and power grew, his foreign-national benefactors sought to cash in on their corrupt relationships with him, particularly when, in 2021, it became clear that Adams would become New York City’s mayor,” prosecutors wrote in the 57-page indictment. “Adams agreed, providing favorable treatment in exchange for the illicit benefits he received.”

    RELATED: Consumer Confidence in U.S. Economy Plummets in Latest Data

    The indictment, the first of a New York City mayor in its history, is a dramatic fall from grace for the mayor of America’s largest city who was once considered a rising star in the Democratic Party. 

    At a press conference earlier Thursday morning, Adams denied any wrongdoing and claimed federal investigators are demonizing him. He urged New Yorkers not to rush to judgment on his indictment. 

    “I ask New Yorkers to wait to hear our defense,” Adams said at the briefing as hecklers shouted for him to resign. “Everyone who knows me knows that I follow the campaign rules and I follow the law.” 

    Adams, 64, was elected to lead the nation’s most populous city nearly three years ago, pledging to reduce crime and guide the city out of the COVID-19 pandemic. 

    But the news of federal investigations surfaced last year after federal authorities searched the home of Adams’ chief fundraiser, Brianna Suggs, and temporarily seized Adams’ electronic devices. 

    RELATED: Riley Gaines: Stand With Women

    The swirl of probes has prompted the resignations of Ed Caban, Commissioner of the New York Police Department, and the city’s health commissioner and the city’s school chancellor, David Banks, whose brother, Deputy Mayor Phil Banks, and fiancée Sheena Wright, who serves as a deputy mayor as well were among City Hall officials to have devices seized as part of the investigations. 

    In recent weeks, calls have mounted for Adams to resign, including from New York Democrats such as Rep. Alexandria Ocasio-Cortez, D-N.Y., and state Sen. John Liu, D-Queens. 

    If Adams resigned, New York City’s public advocate, Jumaane Williams, would take over as acting mayor. He would then schedule a special election for a new mayor, which could take place within 90 days. 

    Syndicated with permission from The Center Square.

    [ad_2]

    The Center Square

    Source link

  • NYC Mayor Eric Adams indicted following federal investigation

    NYC Mayor Eric Adams indicted following federal investigation

    [ad_1]

    New York City Mayor Eric Adams has been indicted by a grand jury on federal criminal charges, according to two people familiar with the matter.Related video above: NYC Schools chancellor to retire after home raidThe indictment detailing the charges against Adams, a Democrat, was still sealed late Wednesday, according to the people, who spoke with The Associated Press on condition of anonymity because they were not authorized to discuss the matter publicly.The U.S. attorney’s office in Manhattan declined to comment. The indictment was first reported by The New York Times.“I always knew that If I stood my ground for New Yorkers that I would be a target — and a target I became,” Adams said in a statement that implied he hadn’t been informed of the indictment. “If I am charged, I am innocent and I will fight this with every ounce of my strength and spirit.”In a speech recorded at his official residence, Adams acknowledged that some New Yorkers would question his ability to manage the city while he fights the charges, but he vowed to stay in office.“I have been facing these lies for months … yet the city has continued to improve,” Adams said. “Make no mistake. You elected me to lead this city and lead it I will.”It was not immediately clear when the charges would be made public or when Adams might have to appear in court.The indictment marks a stunning fall for Adams, a former police captain who won election nearly three years ago to become the second Black mayor of the nation’s largest city on a platform that promised a law-and-order approach to reducing crime.For much of the last year, Adams has faced growing legal peril, with multiple federal investigations into top advisers producing a drumbeat of subpoenas, searches and high-level departures that has thrust City Hall into crisis.He had repeatedly said he wasn’t aware of any wrongdoing, dismissing speculation that he would face charges as “rumors and innuendo.”“The people of this city elected me to fight for them, and I will stay and fight no matter what,” Adams said.Adams is the first mayor in New York City history to be indicted while in office. If he were to resign, he would be replaced by the city’s public advocate, Jumaane Williams, who would then schedule a special election.Gov. Kathy Hochul has the power to remove Adams from office. Hochul’s office did not immediately return a request for comment Wednesday night.Hours before the charges were announced, U.S. Rep. Alexandria Ocasio-Cortez called on Adams to resign, the first nationally prominent Democrat to do so. She cited the federal criminal investigations into the mayor’s administration and a string of unexpected departures of top city officials.“I do not see how Mayor Adams can continue governing New York City,” Ocasio-Cortez wrote on the social platform X.Adams reacted with scorn, dismissing Ocasio-Cortez as self-righteous.The federal investigations into his administration first emerged publicly on Nov. 2, 2023, when FBI agents conducted an early morning raid on the Brooklyn home of Adams’ chief fundraiser, Brianna Suggs.At the time, Adams insisted he followed the law and said he would be “shocked” if anyone on his campaign had acted illegally. “I cannot tell you how much I start the day with telling my team we’ve got to follow the law,” he told reporters at the time.Days later, FBI agents seized the mayor’s phones and iPad as he was leaving an event in Manhattan. The interaction was disclosed several days later by the mayor’s attorney.Then on Sept. 4, federal investigators seized electronic devices from the city’s police commissioner, schools chancellor, deputy mayor of public safety, first deputy mayor and other trusted confidantes of Adams both in and out of City Hall.Federal prosecutors declined to discuss the investigations but people familiar with elements of the cases described multiple, separate inquiries involving senior Adams aides, relatives of those aides, campaign fundraising and possible influence peddling of the police and fire departments.A week after the searches, Police Commissioner Edward Caban announced his resignation, telling officers that he didn’t want the investigations “to create a distraction.” About two weeks later, Schools Chancellor David Banks announced that he would retire at the end of the year.Adams himself insisted he would keep doing the city’s business and allow the investigations to run their course.Over the summer, federal prosecutors subpoenaed Adams, his campaign arm and City Hall, requesting information about the mayor’s schedule, his overseas travel and potential connections to the Turkish government.Adams spent 22 years in New York City’s police department before going into politics, first as a state senator and then as Brooklyn borough president, a largely ceremonial position.He was elected mayor in 2021, defeating a diverse field of Democrats in the primary and then easily beating Guardian Angels founder Curtis Sliwa, a Republican, in the general election.After more than two years in office, Adams’ popularity has declined. While the city has seen an increase in jobs and a drop in certain categories of crime, the administration has been preoccupied with efforts to find housing for tens of thousands of international migrants who overwhelmed the city’s homeless shelters.There has also been a steady drip of accusations and a swirl of suspicion around people close to the mayor.The Manhattan District Attorney brought charges against six people – including a former police captain long close with Adams – over an alleged scheme to funnel tens of thousands of dollars to the mayor’s campaign by manipulating the public matching funds programs in the hopes of receiving preferential treatment from the city. Adams was not accused of wrongdoing in that case.Adams’ former top building-safety official, Eric Ulrich, was charged last year with accepting $150,000 in bribes and improper gifts in exchange for political favors, including providing access to the mayor. Ulrich pleaded not guilty and is fighting the charges.In February, federal investigators searched two properties owned by one of Adams’ close aides, Winnie Greco, who had raised thousands of dollars in campaign donations from the city’s Chinese American communities and later became his director of Asian affairs. Greco hasn’t commented publicly on the FBI searches of her properties and continues to work for the city.When agents seized electronic devices from Caban, the former police commissioner, in early September, they also visited his twin brother, James Caban, a former police officer who runs a nightlife consulting business.Agents also took devices from the schools chancellor; his brother Philip Banks, formerly a top NYPD chief who is now deputy mayor for public safety; their brother Terence Banks, who ran a consulting firm that promised to connect businesses to government stakeholders; and from First Deputy Mayor Sheena Wright, who is David Banks’ domestic partner.All denied any wrongdoing.While those investigations swirled, federal authorities also searched the homes of newly named interim police commissioner, Thomas Donlan, and seized materials unrelated to his police work. Donlon confirmed the search and said it involved materials that had been in his possession for 20 years. He did not address what the investigation was about, but a person familiar with the investigation said it had to do with classified documents dating from the years when Donlon worked for the FBI. The person spoke with The Associated Press on condition of anonymity because they weren’t authorized to speak publicly about that investigation.

    New York City Mayor Eric Adams has been indicted by a grand jury on federal criminal charges, according to two people familiar with the matter.

    Related video above: NYC Schools chancellor to retire after home raid

    The indictment detailing the charges against Adams, a Democrat, was still sealed late Wednesday, according to the people, who spoke with The Associated Press on condition of anonymity because they were not authorized to discuss the matter publicly.

    The U.S. attorney’s office in Manhattan declined to comment. The indictment was first reported by The New York Times.

    “I always knew that If I stood my ground for New Yorkers that I would be a target — and a target I became,” Adams said in a statement that implied he hadn’t been informed of the indictment. “If I am charged, I am innocent and I will fight this with every ounce of my strength and spirit.”

    In a speech recorded at his official residence, Adams acknowledged that some New Yorkers would question his ability to manage the city while he fights the charges, but he vowed to stay in office.

    “I have been facing these lies for months … yet the city has continued to improve,” Adams said. “Make no mistake. You elected me to lead this city and lead it I will.”

    It was not immediately clear when the charges would be made public or when Adams might have to appear in court.

    The indictment marks a stunning fall for Adams, a former police captain who won election nearly three years ago to become the second Black mayor of the nation’s largest city on a platform that promised a law-and-order approach to reducing crime.

    For much of the last year, Adams has faced growing legal peril, with multiple federal investigations into top advisers producing a drumbeat of subpoenas, searches and high-level departures that has thrust City Hall into crisis.

    He had repeatedly said he wasn’t aware of any wrongdoing, dismissing speculation that he would face charges as “rumors and innuendo.”

    “The people of this city elected me to fight for them, and I will stay and fight no matter what,” Adams said.

    Adams is the first mayor in New York City history to be indicted while in office. If he were to resign, he would be replaced by the city’s public advocate, Jumaane Williams, who would then schedule a special election.

    Gov. Kathy Hochul has the power to remove Adams from office. Hochul’s office did not immediately return a request for comment Wednesday night.

    Hours before the charges were announced, U.S. Rep. Alexandria Ocasio-Cortez called on Adams to resign, the first nationally prominent Democrat to do so. She cited the federal criminal investigations into the mayor’s administration and a string of unexpected departures of top city officials.

    “I do not see how Mayor Adams can continue governing New York City,” Ocasio-Cortez wrote on the social platform X.

    Adams reacted with scorn, dismissing Ocasio-Cortez as self-righteous.

    The federal investigations into his administration first emerged publicly on Nov. 2, 2023, when FBI agents conducted an early morning raid on the Brooklyn home of Adams’ chief fundraiser, Brianna Suggs.

    At the time, Adams insisted he followed the law and said he would be “shocked” if anyone on his campaign had acted illegally. “I cannot tell you how much I start the day with telling my team we’ve got to follow the law,” he told reporters at the time.

    Days later, FBI agents seized the mayor’s phones and iPad as he was leaving an event in Manhattan. The interaction was disclosed several days later by the mayor’s attorney.

    Then on Sept. 4, federal investigators seized electronic devices from the city’s police commissioner, schools chancellor, deputy mayor of public safety, first deputy mayor and other trusted confidantes of Adams both in and out of City Hall.

    Federal prosecutors declined to discuss the investigations but people familiar with elements of the cases described multiple, separate inquiries involving senior Adams aides, relatives of those aides, campaign fundraising and possible influence peddling of the police and fire departments.

    A week after the searches, Police Commissioner Edward Caban announced his resignation, telling officers that he didn’t want the investigations “to create a distraction.” About two weeks later, Schools Chancellor David Banks announced that he would retire at the end of the year.

    Adams himself insisted he would keep doing the city’s business and allow the investigations to run their course.

    Over the summer, federal prosecutors subpoenaed Adams, his campaign arm and City Hall, requesting information about the mayor’s schedule, his overseas travel and potential connections to the Turkish government.

    Adams spent 22 years in New York City’s police department before going into politics, first as a state senator and then as Brooklyn borough president, a largely ceremonial position.

    He was elected mayor in 2021, defeating a diverse field of Democrats in the primary and then easily beating Guardian Angels founder Curtis Sliwa, a Republican, in the general election.

    After more than two years in office, Adams’ popularity has declined. While the city has seen an increase in jobs and a drop in certain categories of crime, the administration has been preoccupied with efforts to find housing for tens of thousands of international migrants who overwhelmed the city’s homeless shelters.

    There has also been a steady drip of accusations and a swirl of suspicion around people close to the mayor.

    The Manhattan District Attorney brought charges against six people – including a former police captain long close with Adams – over an alleged scheme to funnel tens of thousands of dollars to the mayor’s campaign by manipulating the public matching funds programs in the hopes of receiving preferential treatment from the city. Adams was not accused of wrongdoing in that case.

    Adams’ former top building-safety official, Eric Ulrich, was charged last year with accepting $150,000 in bribes and improper gifts in exchange for political favors, including providing access to the mayor. Ulrich pleaded not guilty and is fighting the charges.

    In February, federal investigators searched two properties owned by one of Adams’ close aides, Winnie Greco, who had raised thousands of dollars in campaign donations from the city’s Chinese American communities and later became his director of Asian affairs. Greco hasn’t commented publicly on the FBI searches of her properties and continues to work for the city.

    When agents seized electronic devices from Caban, the former police commissioner, in early September, they also visited his twin brother, James Caban, a former police officer who runs a nightlife consulting business.

    Agents also took devices from the schools chancellor; his brother Philip Banks, formerly a top NYPD chief who is now deputy mayor for public safety; their brother Terence Banks, who ran a consulting firm that promised to connect businesses to government stakeholders; and from First Deputy Mayor Sheena Wright, who is David Banks’ domestic partner.

    All denied any wrongdoing.

    While those investigations swirled, federal authorities also searched the homes of newly named interim police commissioner, Thomas Donlan, and seized materials unrelated to his police work. Donlon confirmed the search and said it involved materials that had been in his possession for 20 years. He did not address what the investigation was about, but a person familiar with the investigation said it had to do with classified documents dating from the years when Donlon worked for the FBI. The person spoke with The Associated Press on condition of anonymity because they weren’t authorized to speak publicly about that investigation.

    [ad_2]

    Source link

  • Retired NY judge kills self at home as FBI arrive to arrest him

    Retired NY judge kills self at home as FBI arrive to arrest him

    [ad_1]

    CAMPBELL HALL, New York — A former prosecutor and retired judge in Orange County, NY killed himself Tuesday as the FBI arrived at his home to arrest him.

    Authorities arrived at Stewart Rosenwasser’s home in Campbell Hall to arrest him as part of a corruption case, law enforcement sources told ABC News.

    Rosenwasser had been under investigation for taking bribes.

    It appears there was an exchange of gunfire at the suspect’s home, according to the FBI, which the following statement:

    “The FBI is reviewing an agent-involved shooting that occurred earlier this morning in Campbell Hall, NY. The FBI takes all shooting incidents involving our agents seriously. In accordance with FBI policy, the shooting incident is under review by the FBI’s Inspection Division. As this is an ongoing matter, we have no further details to provide.”

    Rosenwasser has been charged with abusing the authority of his job at the Orange County DA’s office by accepting $63,000 in bribe payments to investigate and prosecute two individuals who are related to the man who allegedly paid the bribes, Mout’z Soudani.

    Federal prosecutors from the Southern District of New York declined to comment.

    Rosenwasser resigned from the Orange County District Attorney’s office in June.

    If you are struggling with thoughts of suicide or worried about a friend or loved one, help is available. Call the 988 Suicide and Crisis Lifeline by dialing 988 or 1-800-273-TALK (8255), or text TALK to 741-741 or visit 988lifeline.org/ for free confidential emotional support 24 hours a day 7 days a week. Even if it feels like it, you are not alone.

    Copyright © 2024 WABC-TV. All Rights Reserved.

    [ad_2]

    WABC

    Source link

  • Jurors weigh murder charges against former Houston drug cop who lied to justify a deadly home invasion

    Jurors weigh murder charges against former Houston drug cop who lied to justify a deadly home invasion

    [ad_1]

    During closing arguments in Gerald Goines’ murder trial on Tuesday, Harris County Assistant District Attorney Keaton Forcht urged jurors to hold the former Houston narcotics officer responsible for the deaths of Dennis Tuttle and Rhogena Nicholas, who were killed in a 2019 drug raid that Goines instigated by describing a heroin purchase that never happened. “Just because you have a badge doesn’t mean you’re above the law,” Forcht said.

    Goines targeted Tuttle and Nicholas based on 911 calls from a neighbor, Patricia Garcia, who described them as armed and dangerous drug dealers who had sold her daughter heroin. Garcia, who did not even have a daughter, later admitted she had made the whole thing up, pleading guilty to federal charges related to her false reports.

    In the affidavit that Goines filed to support the no-knock warrant that authorized him and his colleagues to break into the middle-aged couple’s home on the evening of January 28, 2019, he claimed a confidential informant had bought heroin from a man at 7815 Harding Street, where Tuttle and Nicholas lived. Goines later confessed he had invented that transaction, although he claimed he personally had bought heroin at the house the evening before the raid. Prosecutors showed that was not true either, presenting evidence that Goines was 20 miles away from the house at the time of the alleged drug purchase and had not visited the location that day.

    Goines planned to present two bags of heroin he had obtained elsewhere as evidence of the purported purchase. But that plan went awry after he and his colleagues broke down the door of the house and immediately shot the owners’ dog. Tuttle, who according to prosecutors was napping in a bedroom at the time, responded to the tumult and gunfire by grabbing a revolver and shooting at the intruders, striking four of them, including Goines. The cops responded with a hail of at least 40 bullets, killing Tuttle and Nicholas, who was unarmed but allegedly looked like she was about to grab a gun from an injured officer.

    Because of that disaster, the two bags of heroin remained in Goines’ car. “Once you get past tragedy and you get past the disgust, I think you land on irony,” Forcht told the jury. “I think it’s ironic that the only person who possessed heroin in this case was Gerald Goines. He had it in his car for a week.”

    In his opening statement, Forcht argued that Tuttle responded to the home invasion as “any normal person” would, defending himself and his wife against assailants he did not realize were police officers. “Evidence will show Gerald Goines was legally responsible for every shot in that house, whether it was from officers or Dennis Tuttle,” he said.

    The defense disputed that account. Although the officers were not wearing uniforms, Goines’ lawyers argued that the word police on their tactical gear would have made it clear who they were. The defense also claimed the cops verbally identified themselves as police officers, although the existing audio record does not reflect that.

    According to the account that Art Acevedo, then Houston’s police chief, gave at a press conference the night of the raid, the cops “announced themselves as Houston police officers while simultaneously breaching the front door.” Within seconds, they had killed the dog. It would not be surprising if Nicholas and Tuttle missed any announcement amid the chaos and confusion.

    Goines’ lawyers, who conceded that he lied to obtain the search warrant, nevertheless argued that Nicholas and Tuttle were responsible for their own deaths. “Had they complied with the officers’ directions,” defense attorney George Secrest told the jury on Tuesday, they would still be alive.

    The two murder charges against Goines are based on a statute that applies when someone “commits or attempts to commit a felony” and “in the course of and in furtherance of the commission or attempt…commits or attempts to commit an act clearly dangerous to human life that causes the death of an individual.” That charge was inappropriate in this case, the defense argued, because Goines’ underlying felony—producing the fraudulent search warrant affidavit—did not cause the deaths of Tuttle and Nicholas, which they brought on themselves.

    While the prosecution emphasized that the cops fired first, Secrest emphasized that Tuttle fired “the first shot at a human being” (as opposed to the dog). “These officers didn’t fire upon anyone until they were fired upon themselves,” he said. “Nobody shot at Dennis Tuttle until he started putting bullets into peoples’ faces and necks.”

    Goines’ lawyers also repeatedly noted the personal-use quantities of marijuana and cocaine found in the house, suggesting that Tuttle and Nicholas were involved with drugs after all. Forcht rejected the implication that the couple’s drug use was relevant to Goines’ defense. “The time to investigate those two individuals,” he said, was “before they were murdered, not now.”

    In addition to the murder charges, which are each punishable by five years to life in prison, Goines faces a charge of tampering with a governmental record, a felony punishable by two to 10 years in prison. The case is now in the hands of the jury, which began deliberations on Tuesday afternoon.

    [ad_2]

    Jacob Sullum

    Source link

  • Hunter Biden pleads guilty in tax case, hours after jury selection for trial was to begin

    Hunter Biden pleads guilty in tax case, hours after jury selection for trial was to begin

    [ad_1]

    Hunter Biden, son of U.S. President Joe Biden, arrives at court for his trial on tax evasion in Los Angeles on Sept. 5, 2024.

    Ringo Chiu | AFP | Getty Images

    Hunter Biden pleaded guilty to all nine counts in his criminal tax case in Los Angeles federal court on Thursday afternoon, hours after jury selection was due to begin for a trial of the son of President Joe Biden.

    Biden’s sentencing was scheduled for Dec. 16.

    The plea came after prosecutors strongly opposed Biden’s surprise offer earlier in the day to enter a special plea — known as an Alford plea — that would allow him to maintain that he believed he was innocent but concede that prosecutors had enough evidence to convict him at trial.

    If the Alford plea had been accepted by U.S. District Judge Mark Scarsi, Biden would have been convicted of the charges.

    The plea that Biden ended up making to Scarsi is an “open plea,” or one done without a plea deal with prosecutors, which might have included a reduction in the number of criminal counts he faced and an agreement on the likely terms of his sentencing.

    Biden, 54, was charged in the case with three felony counts and six misdemeanors related to failing to pay at least $1.4 million in federal taxes between 2016 and 2019.

    He was accused of deducting money that he paid to sex workers on his taxes as a business expense and of spending “millions of dollars on an extravagant lifestyle rather than paying his tax bills,” according to an indictment.

    “Mr. Biden will agree that the elements of each offense have been satisfied,” Biden’s lawyer Abbe Lowell told Scarsi after returning from a recess following arguments over the proposed Alford plea.

    When Scarsi asked special counsel Leo Wise, the prosecutor, if that was sufficient, Wise said he would prefer that Biden admit his actions as alleged in an indictment.

    “Will Mr. Biden agree that that is the truth? Because the truth matters,” Wise said. “He should have to say that the facts are true!”

    Lowell then argued that was not required under the law.

    “He just has to agree to the elements,” Lowell said. “I know Mr. Wise would like Mr. Biden to say, ‘and in addition, I was a really bad person when I did this,’ but that’s not what the law requires.”

    Scarsi said, “So we’re going to take an open plea from Mr. Biden. And I will ask if you committed conduct that satisfies element in the indictment.”

    Wise then began reading the 56-page indictment out loud in court. That reading took almost 90 minutes to complete.

     In June, Biden was found guilty after trial in another case where he was accused of crimes related to his purchase of a handgun in 2018 while being a user and addict of crack cocaine.

    He is awaiting sentencing in that case, which was tried in U.S. District Court in Delaware.

    Read more CNBC politics coverage

    On Thursday morning in Los Angeles federal court, more than 100 potential jurors assembled for jury selection in Biden’s tax case.

    But Biden’s lawyer Lowell surprised prosecutors and others in the court when he told Scarsi, “There is no reason to proceed with jury selection as Mr. Biden intends to change his plea.”

    Lowell told Scarsi there was “no agreement” with prosecutors about Biden’s planned Alford plea. But the lawyer said there is no requirement for such an agreement.

    “The law is very clear. If the defendant satisfies rule 11b, the court is required to accept the plea,” Lowell said.”

    Lowell also said, “I don’t think we would agree under conventional plea circumstances.”

    Wise, the special counsel, told Scarsi, “This is the first we’ve heard of this.” Wise asked for time to discuss the proposed change of plea privately.

    “I think this can be resolved today,” Lowell said. “It doesn’t need days.”

    After a recess, Wise told the judge, “I want to make it crystal clear: The U.S. opposes an Alford plea.”

    “We will not under any circumstances accept an Alford plea,” said Wise. “It’s not in the public interest, it’s contrary to the rule of law and we think it’s an injustice.”

    Hunter Biden is not innocent. Hunter Biden is guilty,” said Wise.

    “We were as shocked as anyone else,” the prosecutor said about the proposed Alford plea.

    He said the prosecution is not in a position to evaluate that plea offer Thursday.

    “There’s no way to rush this at this point. And it shouldn’t be rushed,” Wise said. 

    Under Department of Justice guidelines, federal prosecutors “may not consent” to an Alford plea “except in the most unusual circumstances and only after the Assistant Attorney General, Tax Division, or a higher Departmental official, has approved a written request.”

    Lowell told Scarsi that Biden is not asking for special treatment, noting that “people all over the U.S.” take Alford pleas.

    “He is asking for the same rights as others,” Lowell said. “He is willing to say that the government has put forth sufficient evidence to prove the case beyond a reasonable doubt. … I don’t know why the government wants to punt.”

    Scarsi called another recess after hearing the arguments and telling attorneys, “I haven’t seen a case that tells me I have to accept an Alford plea.”

    But the judge also said, “Assuming I have the opportunity to reject an Alford plea, why shouldn’t I?”

    “I need a reason why I accept or reject a plea,” Scarsi said. 

    After that recess, Biden returned to the courtroom, where Lowell said he would enter his open guilty plea, dropping the suggestion of an Alford plea.

    President Biden, as he left the White House earlier Thursday to travel to Wisconsin, ignored shouted questions from reporters about his son’s plan to change his original not-guilty plea in the case.

    This is breaking news. Please refresh for updates.

    Don’t miss these insights from CNBC PRO

    [ad_2]

    Source link

  • Trump Is Making New, Sketchy Foreign Business Deals

    Trump Is Making New, Sketchy Foreign Business Deals

    [ad_1]

    Photo-Illustration: Intelligencer; Photos: Getty Images

    When Donald Trump launched his first presidential campaign nearly a decade ago, there was a deluge of concerns about his foreign financial entanglements. And rightfully so. Given the financial overlap between Trump, his family, his company, and a constellation of kleptocratic regimes, especially Russia, Trump presented an unprecedented opportunity for foreign regimes to directly access the White House and tilt American policy in the process.

    Now, with Trump running for the presidency once more, those concerns have hardly disappeared. If anything, foreign governments — including brand-new regimes that weren’t involved in Trump’s first whirlwind in the White House — have only spied new opportunities to burrow into his pockets and into a second administration.

    Many of these networks are already known, if forgotten. Trump’s financial links with regimes in places like China, Kazakhstan, or Indonesia were already reported in detail during his presidency. Even after Trump left the Oval Office, the revelations about his subterranean financial links as president with foreign regimes continued spilling out; it was only this year, for instance, that congressional investigators revealed that the first two years of Trump’s presidency included countries as far afield as Qatar, Kuwait, Turkey, and many more patronizing Trump businesses. Any of these details on their own would be exceptional — can you imagine how much any other presidential candidate’s secret Chinese bank account would dominate a news cycle? — but they’ve been subsumed in the broader morass of Trump’s scandals. They’ve become, to an almost shocking degree, normalized.

    Look at Saudi Arabia. Years after Saudi tyrant Mohammed bin Salman (MBS) ordered the grisly killing of journalist Jamal Khashoggi, the Saudi government has used an entire fleet of PR professionals and consultancy firms to launder its image, transforming the regime from a bastion of backwardness into one of progress and reform. (Saudi Arabia under MBS “almost feels like a start-up,” WeWork founder Adam Neumann purred last year at a Saudi-sponsored conference.) And part of that influence campaign has directly targeted — and directly used — Trump. Just last month, the New York Times revealed that the Trump Organization had inked a brand-new deal in the country, centered on Trump branding a new high-rise in Jeddah. The branding deal mirrors similar arrangements Trump has signed with foreign partners elsewhere, lending his name to developments in Azerbaijan and Panama. It’s unclear how much the new Saudi deal is worth, but as the Times noted, “Saudi Arabia has become one of the few reliable sources of growth for the Trump family’s business operations.”

    Yet the deepening links between Trump and Riyadh don’t revolve only around a single, luxe new high-rise. Time and again in recent years, Saudi and its proxies have bankrolled Trump and his inner circle — and even expanded the network of authoritarian allies succoring Trump. For instance, a Saudi construction company recently helped Trump sign a separate deal in the dictatorship in Oman, where migrant laborers are currently building out yet another luxury building, including a hotel and golf course. We know a few more details on this new arrangement, such as the fact that the Trump Organization has already banked at least $5 million from the deal. As the organization itself revealed, the total compound will have a “combined value of $200 million” — and will, naturally, “represent an unprecedented level of luxury,” which is why sales agents are “targeting superrich buyers from around the world, including from Russia, Iran and India,” per the Times.

    Again, any one of these deals would be a breathtaking breach of previous norms for a president. But the new links between Saudi and Trump go even deeper, stretching into Saudi Arabia’s latest foray into foreign investments: golf. Throwing billions of dollars into professional golf — all as a way of transforming Riyadh into a destination of global sports — Saudi backed the recent creation of LIV Golf, the rising competitor to PGA Golf. One of the kingdom’s key partners in the new league? Trump, naturally. In early 2024, Riyadh tapped Trump to host LIV Golf tournaments at his own courses — making it “another major source of new revenue for the Trump family.”

    Indeed, calling all of these Saudi arrangements a major inflow for the Trump brood is an understatement. In one of the most sordid — or swampiest — arrangements seen since Trump departed the White House, Trump’s underqualified, underexperienced son-in-law, Jared Kushner, managed to land a $2 billion investment from the Saudis for his brand-new investment firm. Even Saudi officials were at first spooked by the deal, shying away from Kushner’s initial proposal. But as the Intercept reported, after officials recommended against the investment, MBS himself stepped in to approve the deal, keen to sink Saudi Arabia’s financial claws into Trump’s family that much further.

    If anything, it’s Kushner who’s taken the lead on threading nascent links between the world of Trump and new strongmen suitors. In addition to his Saudi lucre, Kushner has recently been gallivanting around the Balkans, where he signed a new agreement earlier this year with the authoritarian regime in Serbia to land a luxury-hotel lease. The arrangement builds on years of Trump World cozying up with Serbia’s budding autocrat, Aleksandar Vucic; not only did Trump welcome lobbyists for Bosnia’s pro-Serbian separatists into his administration, but Trump’s former acting director of national intelligence, Ric Grenell, has become tight with Vucic, with the Serbian leader recently awarding Grenell with what the latter referred to as Serbia’s “highest honor.”

    These are just the deals that we know about; given the financial opacity of everything from the American real-estate industry to things like the investment funds Kushner oversees — areas that Biden’s Treasury Department is specifically targeting for increased transparency, thankfully — it’s entirely possible that there’s a world of additional investments, purchases, and arrangements that we still don’t know about and that we’ll only learn about in years to come. This is, of course, an issue that is far broader than Trump or his inner circle — but given that Trump is a coin flip from the presidency, his sudden proximity to power is that much more reason a whole range of long-overdue counter-kleptocracy reforms must finally be passed by Congress.

    If you need any more proof, just look at what we learned earlier this month. A bombshell exposé in the Washington Post revealed that the military dictatorship in Egypt may have secretly funneled some $10 million into Trump’s flagging 2016 campaign, without the American public having any idea. The Post’s details had all the makings for a scandal of historic proportions: The Egyptian security services suddenly pulling $10 million in cash from an Egyptian bank; classified intel indicating that Egypt’s ruling despot wanted to funnel $10 million to Trump; Trump himself announcing a surprise injection of $10 million into his campaign, tapping what he claimed was his own money. There was so much smoke you could choke on it. (All of this came alongside Egypt’s successful campaign to flip Senator Bob Menendez into its own foreign agent, a case you can read about in my new book, Foreign Agents.)

    And yet, after Trump became president, his administration eventually dropped the investigation into the Egypt-to-Trump pipeline wholesale — and Americans never learned where that Egyptian money may have ended up, or what effect that might have had on Trump’s policies. Americans are still, to this day, in the dark about the links between Trump and Egypt.
    That’s just one investigation, and one financial link, among dozens and dozens more, some of which we still know next to nothing about. But if past is precedent, that may simply be a taste of what’s to come — and what is at stake, for both dictators and democracy alike.

    [ad_2]

    Casey Michel

    Source link

  • How Hungary’s Orbán uses control of the media to escape scrutiny and keep the public in the dark

    How Hungary’s Orbán uses control of the media to escape scrutiny and keep the public in the dark

    [ad_1]

    BUDAPEST, Hungary — In the months leading up to elections for the European Parliament, Hungarians were warned that casting a ballot against Prime Minister Viktor Orbán would be a vote for all-out war.

    The right-wing Fidesz party cast the June 9 election as an existential struggle, one that could preserve peace in Europe if Orbán won — or fuel widespread instability if he didn’t. To sell that bold claim, Orbán used a sprawling pro-government media empire that’s dominated the country’s political discourse for more than a decade.

    The tactic worked, as it has since Orbán returned to power in 2010, and his party came first in the elections — though not by the margins it was used to. An upstart party, led by a former Fidesz insider, attracted disaffected voters and took 29% of the vote to Fidesz’s 44%.

    “Everything has fallen apart in Hungary. The state essentially does not function, there’s only propaganda and lies,” said Péter Magyar, the leader of that new party who has emerged in recent months as perhaps the most formidable challenge yet to Orbán’s rule.

    ___

    This story, supported by the Pulitzer Center for Crisis Reporting, is part of an ongoing Associated Press series covering threats to democracy in Europe.

    ___

    Magyar’s Respect and Freedom (TISZA) party campaigned on promises to root out deep-seated corruption in the government. He has also been outspoken about what he sees as the damage Orbán’s “propaganda factory” has done to Hungary’s democracy.

    “It might be very difficult to imagine from America or Western Europe what the propaganda and the state machinery is like here,” Magyar said in an interview before elections with The Associated Press. “This parallel reality is like the Truman Show. People believe that it’s reality.”

    Since 2010, Orbán’s government has promoted hostility to migrants and LGBTQ+ rights, distrust of the European Union, and a belief that Hungarian-American financier George Soros — who is Jewish and one of Orbán’s enduring foes — is engaged in secret plots to destabilize Hungary, a classic antisemitic trope.

    Such messaging has delivered Orbán’s party four consecutive two-thirds majorities in parliament and, most recently, the most Hungarian delegates in the EU legislature.

    But according to Péter Krekó, an analyst and head of the Political Capital think tank in Budapest, Orbán has created “an almost Orwellian environment” where the government weaponizes control of a majority of news outlets to limit Hungarians’ decisions.

    “Hungary has become a quite successful informational autocracy, or spin dictatorship,” Krekó said.

    The restriction of Hungary’s free press directly affects informed democratic participation. Opposition politicians have long complained that they only get five minutes of air time every four years on public television, the legal minimum, to present their platforms before elections.

    In contrast, public television and radio channels consistently echo talking points communicated both by Fidesz and a network of think tanks and pollsters that receive funding from the government and the party. Their analysts routinely appear in affiliated media to bolster government narratives, while independent commentators rarely, if ever, appear.

    During the campaign in May, Hungary’s electoral commission issued a warning to the public broadcaster for repeatedly airing Fidesz campaign videos during news segments, a violation of impartiality rules. The broadcaster carried on regardless.

    Magyar, who won a seat in the European Parliament, credits his new party’s success partly to its ability to sidestep Orbán’s dominance by meeting directly with voters and developing a large following on social media.

    But in largely rural Hungary, even those with a strong online presence struggle to compete with Fidesz’s control of traditional outlets.

    According to press watchdog Reporters Without Borders, Orbán has used media buyouts by government-connected “oligarchs” to build “a true media empire subject to his party’s orders.” The group estimates that such buyouts have given Orbán’s party control of some 80% of Hungary’s media market resources. In 2021, it put Orbán on its list of media “predators,” the first EU leader to earn the distinction.

    The title didn’t come out of nowhere: in 2016, Hungary’s oldest daily newspaper was suddenly shuttered after being bought by a businessman with links to Orbán. In 2018, nearly 500 pro-government outlets were simultaneously donated by their owners to a foundation headed by Orbán loyalists, creating a sprawling right-wing media conglomerate. And in 2020, nearly the entire staff of Hungary’s largest online news portal, Index, resigned en masse after its lead editor was fired under political pressure.

    A network of independent journalists and online outlets that continue to function in Hungary struggles to remain competitive, said Gábor Polyák, head of the Media and Communication Department at Eötvös Loránd University in Budapest.

    The government is the largest advertiser in Hungary, he said. A study by watchdog Mérték Media Monitor showed up to 90% of state advertising revenue is awarded to pro-Fidesz media outlets, keeping them afloat.

    The government’s efforts to control media have moved beyond television, radio and newspapers, shifting into social media posts that are boosted by paid advertisements.

    Hungary spent the most in the entire 27-member EU — nearly $4.8 million — on political ads on platforms owned by Facebook’s parent company, Meta, in a 30-day period in May and June, outspending Germany, which has more than eight times the population, according to a recent report based on publicly available data compiled by Political Capital, Mérték Media Monitor and fact-checking site Lakmusz.

    The vast majority of that spending came from Fidesz or its proxies, the report found.

    One major spender is Megafon, a self-declared training center for aspiring conservative influencers. In the same 30-day period, the group spent $800,000 on boosting its pro-government content on Meta platforms, more than what was spent in total by 16 EU countries in the same period.

    With government narratives so pervasive across mediums, a level of political polarization has emerged that can reach deep into the private lives of Hungarians. In recent years, the views of Andrea Simon, a 55-year-old entrepreneur from a suburb of Budapest, and her husband Attila Kohári began to drift apart — fed, according to Simon, by Kohári’s steady diet of pro-government media.

    “He listened to these radio stations where they pushed those simple talking points, it completely changed his personality,” Simon said. “I felt sometimes he’d been kidnapped, and his brain was replaced with a Fidesz brain.”

    In December, after 33 years of marriage, they agreed to divorce.

    “I said to him several times, ‘You have to choose: me or Fidesz,’” she said. “He said Fidesz.”

    Still, like many Hungarians who hold fast to traditional values in a changing world, Kohári remains a faithful supporter of Orbán and his policies, despite the personal cost.

    His love of his country and belief that Orbán has led Hungary in the right direction have him “clearly convinced that my position is the right one,” he said. “But it ruined my marriage.”

    The media divide also has consequences for Hungary’s finances, says independent lawmaker Ákos Hadházy, who has uncovered dozens of suspected cases of graft involving EU funds.

    Such abuses, he said, go largely unaddressed because the majority of voters are unaware of them.

    “Following the Russian model, (the government) controls state media by hand and spends about 50 billion forints ($135 million) a year on advertisements … that sustain their own TV networks and websites,” he said. “The people that consume those media simply don’t hear about these things.”

    On a recent day in Mezőcsát, a small village on the Hungarian Great Plain, Hadházy inspected the site of an industrial park that was built with 290 million euros ($310 million) in EU funds. The problem, he said, is that since the site was completed in 2017, it has never been active, and the money used to build it has disappeared.

    Hadházy said that Hungarians “who consciously seek out the real news hear about these cases and don’t understand how it’s possible that there are no consequences when I present such things almost daily.”

    He continued: “But it’s not important for the government that nobody hears about them, it’s important that more people hear their lies, and that’s the way it is now. Far more people hear their messages than the facts.”

    ___

    This story, supported by the Pulitzer Center for Crisis Reporting, is part of an ongoing Associated Press series covering threats to democracy in Europe.

    [ad_2]

    Source link

  • Trader vs. Hero Mindset: Why A Healthy Society Needs Both

    Trader vs. Hero Mindset: Why A Healthy Society Needs Both

    [ad_1]


    Do you see yourself as more of a “trader” or a “hero?” Learn about these two distinct mindsets, and understand how balancing moral duty and economic ambition can lead to a more harmonious and sustainable future for humanity.


    The hero mindset vs. the trader mindset are two distinct ways people see their roles and responsibilities in a healthy society.

    Each one focuses on different values and priorities, but a balance of both is often needed for a society to function and flourish.

    Here’s an outline of what defines each mindset.

    Trader Mindset

    The trader mindset dominates our current culture. It places emphasis on individualism, material gain, and personal freedom. This mentality often asks, “What can life give me?” and is driven by the pursuit of happiness, pleasure, and profit.

    It’s especially characteristic of American life and contemporary Western thinking, where people tend to see their value only in terms of economic or material output: “What do you do for a living? How much money do you make? How big is your house?”

    Key attributes of the trader mindset include:

    • Rights-Oriented: The trader mindset focuses on personal rights and freedoms, operating on the principle of doing what one wants as long as it doesn’t harm others.
    • Materialism: The trader mindset is materialistic and money-driven, placing a high value on comfort, pleasure, and luxury.
    • Individualism: The trader mindset is competitive, individualistic, and often sees life as a series of transactions aimed at maximizing personal advantage rather than collective well-being.
    • Utilitarian Approach: They adopt a business-minded and utilitarian perspective, often focusing on what is pragmatic and realistic, rater than engaging in abstract and idealistic goals.
    • Status Climbing: Traders often strive for increased status, wealth, or power, engaging in frequent social comparison, and viewing most aspects of life as a social ladder to climb.

    The trader mindset is a product of liberal and Enlightenment philosophy, reflecting the values of individual rights and free market capitalism. It promotes a “mind your own business” attitude which emphasizes personal freedom and the pursuit of happiness, but can also lack a sense of social duty.

    In excess, the trader mindset can lead to negative behaviors such as excessive swindling, grifting, corruption, and fraudulent schemes. People become willing to seek material gain at any moral cost, believing that everyone is inherently greedy and selfish, thus creating a “dog eat dog” world.

    Hero Mindset

    The hero mindset is less common and in many ways it’s more needed in our current society.

    The heroic mindset is characterized by a focus on duty, sacrifice, and the greater good. Those with this mentality often ask, “What can I give to life?” rather than “What can life give me?” This approach emphasizes responsibilities over rights and prioritizes the well-being of others over personal gain.

    Key attributes of the hero mindset include:

    • Duties-Oriented: Heroes feel a strong sense of duty and responsibility toward others and society. They ask themselves how they can best serve their family, community, nation, or humanity as a whole.
    • Idealism: The hero mindset seeks higher ideals than just status or wealth, such as honor, loyalty, and devotion to a higher purpose, striving to do what is right at all costs, even if it means facing death.
    • Collectivism: The hero mindset is communitarian-minded, often emerging in contexts like the military, team sports, or tight-knit organizations where serving a greater whole is paramount.
    • Warrior Spirit: Heroes embrace challenges and are willing to sacrifice their comfort and security for the common good, embodying a warrior mindset that values moral and spiritual achievements over material ones. The hero isn’t afraid to ask, “What am I willing to die for?”
    • Leadership and Accountability: Heroes are willing to stand up and take charge when no one else will. This means assuming leadership roles and taking risks, as well as accepting blame and responsibility when things go wrong.

    In essence, the heroic mindset is about fighting for something greater than oneself.

    Heroes can take many different forms. It’s not only about sacrificing yourself on a battlefield or saving a child from a burning house. Being a hero can also mean dedicating your life to a social cause, being a leader in your local community, taking care of your family, or creating more beauty in the world through art or music.

    While the heroic mindset can lead to noble actions, in excess it can also result in zealotry, self-destructive martyrdom, or an inflexible approach to moral issues. Extreme idealism might push individuals to pursue their goals without considering practical consequences, potentially leading to conflict and alienation.

    Balancing the Mindsets

    Ultimately, both the hero and trader mindsets offer valuable insights into different motivations behind our behaviors and life choices. While the heroic mindset emphasizes sacrifice, duty, and the greater good, the trader mindset focuses on personal gain, freedom, and material success.

    A healthy and sustainable society needs both traders and heroes. A society run solely by traders may prioritize profit over moral values, leading to widespread corruption and a lack of social responsibility. On the other hand, a society with only a heroic mindset might struggle with practicality and flexibility, leading to social conflicts and unrest.

    Striking a balance between these mindsets can help us achieve a harmonious approach to personal fulfillment and social responsibility, creating a society that values both individual rights and communal well-being.


    Enter your email to stay updated on new articles in self improvement:

    [ad_2]

    Steven Handel

    Source link