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Tag: Manhattan

  • New York officials brace as possible Trump indictment looms

    New York officials brace as possible Trump indictment looms

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    New York officials brace as possible Trump indictment looms – CBS News


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    Steel barricades were delivered outside Manhattan criminal court in preparation for a possible indictment of former President Donald Trump, who claimed on social media he would be arrested Tuesday. The former president told his supporters to protest and intelligence sources say they have seen an uptick in threats toward law enforcement and government officials since Trump’s announcement. Robert Costa has more.

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  • Manhattan DA says his office won’t tolerate ‘attempts to intimidate’ following Trump posts | CNN Politics

    Manhattan DA says his office won’t tolerate ‘attempts to intimidate’ following Trump posts | CNN Politics

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    CNN
     — 

    Manhattan district attorney Alvin Bragg said in an email to staff on Saturday that his office will “not tolerate attempts to intimidate our office or threaten the rule of law in New York.”

    The email was sent after former President Donald Trump posted on social media that he expects to be arrested in connection with the ongoing investigation by New York prosecutors into a hush money scheme involving adult film actress Stormy Daniels and called on his supporters to protest any such move.

    Bragg said his office is coordinating with the New York City Police Department and the court to “ensure that any specific or credible threats against the office will be fully investigated and that the proper safeguards are in place so all 1,600 of us have a secure work environment,” according to the email, which was first obtained by Politico.

    Manhattan district attorney spokesperson Danielle Filson confirmed the contents of the email to CNN but would not provide further comment.

    The district attorney added that his office “will continue to apply the law evenly and fairly, and speak publicly only when appropriate,” as he said they do with all investigations.

    CNN’s John Miller reported Friday that meetings have been going on taking place among city, state and federal law enforcement agencies in New York City about security preparations for a possible indictment of Trump.

    National Security Council communications coordinator John Kirby said Sunday the White House is closely watching the situation but said he wasn’t aware of any White House preparations for protests or major activity in the wake of Trump’s posts.

    “We’re always monitoring the situation here as best we can,” Kirby told Fox News Sunday “And we obviously don’t want to see any activity grow violent, certainly nothing to the extent that we saw on January 6. But we’re watching this, we’ll watch it, of course, closely.”

    This story has been updated with additional information.

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  • Cohen testifies before grand jury in Trump hush money probe

    Cohen testifies before grand jury in Trump hush money probe

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    NEW YORK (AP) — Donald Trump’s former lawyer and fixer Michael Cohen testified Monday before a Manhattan grand jury investigating hush money payments made on the former president’s behalf.

    A Trump loyalist turned adversary, Cohen spent around three hours answering questions in the secret proceeding. He is scheduled to return again for more testimony Wednesday, his lawyer said as the pair emerged from the courthouse.

    “Michael has spent a long and productive afternoon answering all questions, all facts, and completely responsive,” said Cohen’s lawyer, Lanny Davis.

    The testimony comes at a critical time, as the Manhattan district attorney’s office weighs whether to seek charges against Trump over payments made during his 2016 campaign to two women who alleged affairs or sexual encounters with him.

    Before entering the courthouse for the session, Cohen, who orchestrated those payoffs, said his goal was simply “to tell the truth,” dismissing a suggestion that he might be motivated by a desire to see Trump behind bars.

    “This is not revenge,” he said. “This is all about accountability. He needs to be held accountable for his dirty deeds.”

    Trump denies being involved with either of the women, the porn actor Stormy Daniels and model Karen McDougal.

    Cohen has given prosecutors evidence, including voice recordings of conversations he had with a lawyer for one of the women, as well as emails and text messages. He also has recordings of a conversation in which he and Trump spoke about an arrangement to pay the other woman through the supermarket tabloid the National Enquirer.

    Prosecutors appear to be looking at whether Trump committed crimes in how the payments were made or how they were accounted for internally at Trump’s company, the Trump Organization.

    One possible charge would be falsifying business records, a misdemeanor unless prosecutors could prove it was done to conceal another crime. No former U.S. president has ever been charged with a crime.

    Appearing Monday on ABC’s “Good Morning America,” Trump lawyer Joseph Tacopina said it is unlikely the former president will accept an invitation, extended by prosecutors last week, to testify before the grand jury.

    “We have no plans on participating in this proceeding,” Tacopina said. “It’s a decision that needs to be made still. There’s been no deadline set, so we’ll wait and see.”

    He characterized Trump as a victim, saying he was pressured into making the payment to Daniels.

    “This was a plain extortion and I don’t know since when we’ve decided to start prosecuting extortion victims,” Tacopina said. “He’s denied — vehemently denied — this affair. But he had to pay money because there was going to be an allegation that was going to be publicly embarrassing to him, regardless of the campaign.”

    Daniels and the attorney who helped arrange the payment for her, Keith Davidson, have both denied extorting anyone.

    Speaking briefly to reporters in Moline, Illinois, Trump called the investigation “a big witch hunt.” Asked if he planned on testifying, he said: “I don’t know. Nobody’s even asked me.”

    Tacopina also wrote a letter to New York City’s inspector general, saying prosecutors were trying to hamper Trump’s chances in the 2024 presidential election. Tacopina asked the city’s Department of Investigation to probe a “patently political prosecution.”

    The Manhattan district attorney’s office declined to comment.

    Trump’s lawyers have tried several times to get judges in New York and Florida to intervene in or halt investigations of Trump and the Trump Organization, arguing that they are politically motivated. All of those attempts have failed.

    Cohen served prison time after pleading guilty in 2018 to federal charges, including campaign finance violations, for arranging the payouts to Daniels and McDougal to keep them from going public. He has also been disbarred.

    Trump’s lawyers could point to those factors in an attempt to undermine Cohen’s credibility, if the former president is charged and Cohen ends up testifying at trial.

    Cohen has been meeting regularly with Manhattan prosecutors in recent weeks, including a daylong session Friday to prepare for his grand jury appearance.

    The panel has been hearing evidence since January in what Manhattan District Attorney Alvin Bragg, a Democrat, has called the “next chapter” of his office’s yearslong Trump investigation. But the hush money payments — perhaps the most salacious of the avenues of inquiry into Trump — are familiar ground.

    Federal prosecutors and Bragg’s predecessor in the DA’s office, Cyrus Vance Jr., each scrutinized the payments but didn’t charge Trump.

    Cohen declined to comment to reporters as he left the meeting, saying he’d be “taking a little bit of time now to stay silent and allow the DA build their case.”

    Trump continued to lash out at the probe on social media on Friday, calling the case a “Scam, Injustice, Mockery, and Complete and Total Weaponization of Law Enforcement in order to affect a Presidential Election!”

    Cohen paid Daniels $130,000 through his own company and was then reimbursed by Trump, whose company logged the reimbursements as “legal expenses.”

    McDougal’s $150,000 payment was made through the publisher of the National Enquirer, which squelched her story in a journalistically dubious practice known as “catch-and-kill.”

    According to federal prosecutors who charged Cohen, the Trump Organization then “grossed up” Cohen’s reimbursement for the Daniels payment for “tax purposes,” giving him $360,000 plus a $60,000 bonus, for a total of $420,000.

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    Associated Press writer Jill Colvin contributed to this report.

    ___

    Follow Michael Sisak on Twitter at twitter.com/mikesisak and send confidential tips by visiting https://www.ap.org/tips/.

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  • Trump’s former lawyer Michael Cohen scheduled to testify before New York grand jury

    Trump’s former lawyer Michael Cohen scheduled to testify before New York grand jury

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    Trump’s former lawyer Michael Cohen scheduled to testify before New York grand jury – CBS News


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    Michael Cohen is scheduled to testify before a grand jury in New York City today on the alleged “hush money” payments he made on former President Donald Trump’s behalf in 2016. Cohen served prison time for campaign finance violations after arranging the payouts. CBS News reporter Graham Kates discusses the latest on the investigation with Anne-Marie Green and Nikki Battiste.

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  • Manhattan DA says ‘focus is on the evidence and the law’ in probe of Trump hush money scheme | CNN Politics

    Manhattan DA says ‘focus is on the evidence and the law’ in probe of Trump hush money scheme | CNN Politics

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    CNN
     — 

    New York City prosecutors probing former President Donald Trump’s alleged role in a hush money scheme and cover-up are focused “on the evidence and the law,” Manhattan District Attorney Alvin Bragg said this weekend.

    Speaking on MSNBC’s “PoliticsNation,” Bragg did not go into detail about what he called the “active investigation” but instead praised the “professionalism” of his prosecuting team.

    “We follow the facts. It doesn’t matter what party you are, it doesn’t matter your background. What did you do? And what does the law say?” Bragg said Saturday, adding that he’s “constrained from saying anything more than that because I don’t want to prejudice any investigation.”

    The investigation relates to a $130,000 payment made to adult-film star Stormy Daniels in late October 2016, days before the presidential election, to silence her from going public about an alleged affair with Trump a decade earlier. Trump has denied having an affair with Daniels.

    Manhattan prosecutors have invited the former president to appear before the grand jury investigating his alleged role in the payment and the cover-up, a person familiar with the matter previously said, indicating a decision on charging Trump may come soon.

    Trump was to meet with his legal team at Mar-a-Lago this weekend to consider his options and possibly decide whether to appear before the grand jury, a person familiar with the matter told CNN.

    Hush money payments aren’t illegal. Prosecutors are weighing whether to charge Trump with falsifying the business records of the Trump Organization for how they reflected the reimbursement of the payment to Michael Cohen, Trump’s then-fixer who said he advanced the money to Daniels. Falsifying business records is a misdemeanor in New York.

    Prosecutors are also weighing whether to charge Trump with falsifying business records in the first degree for allegedly falsifying a record with the intent to commit another crime or to aid or conceal another crime, which in this case could be a violation of campaign finance laws. That is a Class E felony, with a sentence minimum of one year and as much as four years.

    The Trump Organization noted the reimbursements as a legal expense in its internal books. Trump has denied knowledge of the payment.

    When asked what factors into a prosecutor’s decision to move forward in any case, Bragg said, “We’re looking at the facts and the law and the facts as they develop. We review documents, we talk to witnesses and so, yes, we live in this world, we may hear what this pundit says and we may hear all the commentary, but our focus is on the evidence and the law.”

    Trump would be the first former president ever indicted and the first major presidential candidate under indictment. He has said he “wouldn’t even think about leaving” the race if charged.

    Trump’s spokesperson last week said in a statement to CNN, “The Manhattan District Attorney’s threat to indict President Trump is simply insane. For the past five years, the DA’s office has been on a Witch Hunt, investigating every aspect of President Trump’s life, and they’ve come up empty at every turn – and now this.”

    In a lengthy post on his Truth Social account Thursday, Trump said in part, “I did absolutely nothing wrong, I never had an affair with Stormy Daniels.”

    Bragg, however, said he doesn’t follow what is posted on social media and instead is “focusing on the work.”

    He said the $1.6 million fine the Trump Organization was ordered to pay in January for running a decade-long tax fraud scheme was an example of the professionalism of his office. Trump and his family were not charged in the case.

    “I thought that was consequential,” Bragg said. “The first time we’ve had that kind of a criminal conviction involving the Trump Organization. And it speaks to the rigor and the professionalism of the career prosecutors in my office.”

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  • Michael Cohen to testify Monday in Trump hush-money probe

    Michael Cohen to testify Monday in Trump hush-money probe

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    NEW YORK (AP) — Donald Trump’s former lawyer and fixer Michael Cohen is scheduled to testify Monday before a Manhattan grand jury investigating hush-money payments made on the former president’s behalf, two people familiar with the matter told The Associated Press. They were not authorized to speak publicly about grand jury proceedings and did so on condition of anonymity.

    Cohen is a key witness in Manhattan District Attorney Alvin Bragg’s investigation and his testimony is coming at a critical time, as prosecutors close in on a decision on whether to seek charges against Trump. Prosecutors sometimes save their most important witnesses until the end stages of a grand jury investigation.

    Cohen has been meeting regularly with Manhattan prosecutors in recent weeks, including a day-long session Friday to prepare for his appearance before the grand jury, which has been hearing evidence in the matter since January.

    Cohen declined to comment to reporters as he left the meeting, saying he’d be “taking a little bit of time now to stay silent and allow the D.A. build their case.”

    The Manhattan district attorney’s office, which thus far has declined to comment on the investigation, also declined to address whether Cohen would testify before the grand jury.

    Trump continued to lash out at the probe on social media Friday, calling the case a “Scam, Injustice, Mockery, and Complete and Total Weaponization of Law Enforcement in order to affect a Presidential Election!”

    Prosecutors appear to be looking at whether Trump committed crimes in arranging the payments, or in how they were accounted for internally at Trump’s company, the Trump Organization. One possible charge would be falsifying business records, a misdemeanor unless prosecutors could prove it was done to conceal another crime.

    No former U.S. president has ever been charged with a crime.

    Prosecutors this week invited Trump to testify before the grand jury — another sign that phase of the investigation is winding down. Inviting the subject of an investigation to appear before a grand jury is typically one of the last steps before a potential indictment.

    Trump has the right to testify under New York law, though legal experts say he is unlikely to do so because it wouldn’t benefit his defense and he’d have to give up a cloak of immunity that’s automatically granted to grand jury witnesses under state law.

    Cohen served prison time after pleading guilty in 2018 to federal charges, including campaign finance violations, for arranging the payouts to porn actor Stormy Daniels and model Karen McDougal to keep them from going public. Trump has denied the affairs.

    Cohen paid Daniels $130,000 through his own company and was then reimbursed by Trump, whose company logged the reimbursements as “legal expenses.” McDougal’s $150,000 payment was made through the publisher of the supermarket tabloid the National Enquirer, which squelched her story in a journalistically dubious practice known as “catch-and-kill.”

    The Trump Organization “grossed up” Cohen’s reimbursement for the Daniels payment for “tax purposes,” according to federal prosecutors who filed criminal charges against the lawyer in connection with the payments in 2018. Cohen got $360,000 plus a $60,000 bonus, for a total of $420,000.

    Federal prosecutors said during Cohen’s criminal case that Trump was aware of the payments to the women. The U.S. attorney’s office in New York, however, declined at the time to seek a criminal charge against the then-sitting president.

    Cohen, now estranged from Trump, has met with prosecutors 20 times through several iterations of the hush-money probe. In January, he gave his cell phones to Manhattan prosecutors so they could extract evidence, including voice recordings of conversations he had with a lawyer for Daniels — whose real name is Stephanie Clifford — as well as emails and text messages.

    Other members of Trump’s inner circle have met with Manhattan prosecutors in recent weeks, including his former political adviser Kellyanne Conway and former spokesperson Hope Hicks.

    __

    On Twitter, follow Michael Sisak at twitter.com/mikesisak and Jill Colvin at twitter.com/colvinj and send confidential tips by visiting https://www.ap.org/tips/.

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  • The New York hush-money probe of Donald Trump explained

    The New York hush-money probe of Donald Trump explained

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    NEW YORK (AP) — In the final weeks of the 2016 presidential election, Donald Trump’s lawyer tried to buy the silence of a porn actress who said she had a sexual encounter with the Republican during his days as a reality TV star.

    More than six years later, New York prosecutors appear to be close to deciding whether Trump should face charges in connection with that payoff, in what could become the first criminal case ever brought against a former president.

    Thursday’s news that the Manhattan district attorney invited Trump to testify before a grand jury next week suggested prosecutors were serious about bringing charges in a probe that looked like yesterday’s news just a few months ago.

    Trump’s former lawyer and fixer Michael Cohen, now a key prosecution witness, is scheduled to testify before the grand jury on Monday, according to two people familiar with the matter. The people were not authorized to speak publicly about grand jury proceedings and did so on condition of anonymity.

    Trump has denied wrongdoing and that he had any extramarital affairs, and he blasted the probe in a Truth Social post as a “political Witch-Hunt, trying to take down the leading candidate, by far, in the Republican Party”

    Here’s a refresher on how things got to this point:

    WHAT IS THIS CASE ABOUT?

    The investigation centers on hush-money payments made in 2016 to two women who alleged that they had extramarital encounters with Trump, who has denied their accounts of his infidelity.

    Specifically, District Attorney Alvin Bragg’s team appears to be looking at whether Trump or anyone committed crimes in arranging the payments, or in the way they accounted for them internally at the Trump Organization.

    HOW WERE THE PAYMENTS MADE?

    Cohen paid porn actress Stormy Daniels $130,000 through a shell company Cohen set up. He was then reimbursed by Trump, whose company logged the reimbursements as legal expenses.

    Earlier in 2016, Cohen also arranged for former Playboy model Karen McDougal to be paid $150,000 by the publisher of the supermarket tabloid the National Enquirer, which squelched her story in a journalistically dubious practice known as “catch-and-kill.”

    Trump’s company, the Trump Organization, “grossed up” Cohen’s reimbursement for the Daniels payment for “tax purposes,” according to federal prosecutors who filed criminal charges against the lawyer in connection with the payments in 2018.

    Cohen got $360,000 plus a $60,000 bonus, for a total of $420,000.

    Cohen pleaded guilty to violating federal campaign finance law in connection with the payments. Federal prosecutors say the payments amounted to illegal, unreported assistance to Trump’s campaign. But they declined to file charges against Trump himself.

    WHAT IS TRUMP’S INVOLVEMENT?

    Cohen says Trump directed him to arrange the Daniels payment.

    Cohen also made recordings of a conversation in which he and Trump spoke about the arrangement to pay McDougal through the National Enquirer.

    At one point in the recording, Cohen told Trump, “I need to open up a company for the transfer of all of that info regarding our friend, David,” a reference to David Pecker, who ran the Enquirer’s parent company at the time.

    Cohen said he had already spoken with the Trump Organization’s longtime finance chief, Allen Weisselberg, on “how to set the whole thing up.”

    Trump then said: “What do we got to pay for this? One-fifty?”

    Today, Trump characterizes the attempts to get him to pay money to the women to keep them quiet as “extortion.”

    WHAT CRIMES ARE PROSECUTORS LOOKING AT?

    Legal experts say a case could be made that Trump falsified business records by logging Cohen’s reimbursement for the Daniels payment as legal fees. But that’s only a misdemeanor under New York law — unless prosecutors could prove he falsified records to conceal another crime.

    Mark Pomerantz, who led the investigation under then-District Attorney Cyrus Vance Jr., wrote in his recent book “People vs. Donald Trump: An Inside Account” that in 2021, he looked into whether Trump could be charged with money laundering or if Trump had been somehow extorted.

    David Shapiro, a fraud risk and financial crimes specialist and former FBI special agent, said a potential case against Trump could be “especially difficult” when it comes to proving his intent and knowledge of wrongdoing.

    “He’s loud, he’s brash, so proving that he had specific intent to fraud, one is almost left with the idea that, ‘well, if he has that specific intent of fraud, he has it all of the time, because that’s his personality,’” said Shapiro, a lecturer at John Jay College of Criminal Justice.

    The Manhattan district attorney’s office has declined to comment on the investigation.

    HAVEN’T WE BEEN HERE BEFORE?

    Yes. Several times.

    Federal prosecutors entered into a non-prosecution agreement with the National Enquirer’s owner, which admitted paying McDougal to help Trump, but they declined to seek a criminal charge against the then-sitting president.

    The Manhattan district attorney’s office opened its own investigation into the payments in 2019 and has revisited it several times since while expanding the probe into Trump’s business dealings and other topics.

    So far, the only charges have been against Weisselberg, who pleaded guilty, and the Trump Organization, which was convicted in December of an unrelated offense: scheming to dodge taxes on company-paid perks such as free apartments and cars for executives.

    WHAT ABOUT THE STATUTE OF LIMITATIONS?

    The hush-money payments and Cohen’s reimbursements happened more than six years ago. New York’s statute of limitations for most felonies is five years. For misdemeanors, it’s just two years.

    Does that mean prosecutors have run out of time? Trump thinks so. In social media posts, he insists that the statute of limitations “long ago expired,” calling the matter “old news.”

    But that’s not always how the law works. In New York, the clock can stop on the statute of limitations when a potential defendant is continuously outside the state. Trump visited New York rarely over the four years of his presidency and now lives mostly in Florida and New Jersey.

    Practically speaking, though, the passage of time could affect the case in other ways. Memories fade, and evidence and records get lost or destroyed.

    “The power of the case — the surprise factor, the shock value,” also fades, Shapiro said, meaning a jury might be less impressed by allegations that have been public for so long.

    WHO ARE PROSECUTORS SPEAKING WITH?

    Members of Trump’s inner circle, including his former political adviser Kellyanne Conway and former spokesperson Hope Hicks, have met with prosecutors in recent weeks. Cohen, now estranged from Trump, has made several visits to prepare for his expected grand jury testimony.

    Among others: Pecker, the former National Enquirer publisher, was spotted going into the building where the grand jury is meeting, as well as Trump Organization insiders including the company’s senior vice president and controller Jeffrey McConney.

    Prosecutors are still interested in Weisselberg’s insider knowledge about the hush-money arrangements. The 75-year-old ex-CFO is due to be released from a five-month jail sentence on April 19. There’s no indication that he’s keen to cooperate against his former boss.

    Trump himself is probably highly unlikely to testify before the grand jury or meet with prosecutors.

    WHAT OTHER LEGAL TROUBLE IS TRUMP FACING?

    The hush-money case is one of several potential criminal cases the Republican faces as he mounts a comeback run for the White House in 2024, along with an investigation into election interference in Georgia, the probe of storage of classified documents at his Florida home, and other matters.

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    Associated Press reporter Jill Colvin contributed to this report.

    __

    Follow Michael Sisak on Twitter at twitter.com/mikesisak and send confidential tips by visiting https://www.ap.org/tips/.

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  • What to know about NY prosecutors’ probe into Trump’s role in hush money scheme | CNN Politics

    What to know about NY prosecutors’ probe into Trump’s role in hush money scheme | CNN Politics

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    CNN
     — 

    Manhattan prosecutors’ invitation to Donald Trump to testify in an investigation into a hush money scheme involving adult film actress Stormy Daniels has thrust the yearslong probe into the spotlight as officials weigh whether to charge the former president.

    Prosecutors in District Attorney Alvin Bragg’s office have asked Trump to appear before the grand jury investigating the matter.

    The request represents the clearest indication yet that investigators are nearing a decision on whether to take the unprecedented step of indicting a former president since potential defendants in New York are required by law to be notified and invited to appear before a grand jury weighing charges.

    Here’s what to know about the hush money investigation.

    The Manhattan DA’s investigation first began under Bragg’s predecessor, Cy Vance, when Trump was still in the White House. It relates to a $130,000 payment made by Trump’s then-personal attorney Michael Cohen to Daniels in late October 2016, days before the 2016 presidential election, to silence her from going public about an alleged affair with Trump a decade earlier. Trump has denied the affair.

    At issue in the investigation is the payment made to Daniels and the Trump Organization’s reimbursement to Cohen.

    According to court filings in Cohen’s own federal prosecution, Trump Org. executives authorized payments to him totaling $420,000 to cover his original $130,000 payment and tax liabilities and reward him with a bonus.

    The Manhattan DA’s investigation has hung over Trump since his presidency, and is just one of several probes the former president is facing as he makes his third bid for the White House.

    Hush money payments aren’t illegal. Prosecutors are weighing whether to charge Trump with falsifying the business records of the Trump Organization for how it reflected the reimbursement of the payment to Cohen, who said he advanced the money to Daniels. Falsifying business records is a misdemeanor in New York.

    Prosecutors are also weighing whether to charge Trump with falsifying business records in the first degree for falsifying a record with the intent to commit another crime or to aid or conceal another crime, which in this case could be a violation of campaign finance laws. That is a Class E felony and carries a sentence of a minimum of one year and as much as four years. To prove the case, prosecutors would need to show Trump intended to commit a crime.

    The Trump Organization noted the reimbursements as a legal expense in its internal books. Trump has previously denied knowledge of the payment.

    If the district attorney’s office moves forward with charges, it would represent a rare moment in history: Trump would be the first former US president ever indicted and also the first major presidential candidate under indictment seeking office.

    The former president has said he “wouldn’t even think about leaving” the 2024 race if charged.

    A decision to bring charges would not be without risk or guarantee a conviction. Trump’s lawyers could challenge whether campaign finance laws would apply as a crime to make the case a felony, for instance.

    In a lengthy response on his Truth Social account Thursday night, Trump said in part, “I did absolutely nothing wrong, I never had an affair with Stormy Daniels.”

    Trump is meeting with his legal team this weekend to consider his options and possibly make a decision on whether to appear before the grand jury, a person familiar with the matter told CNN.

    It’s not clear when Trump would need to make a decision on the grand jury invitation extended by Bragg’s office, nor whether there’s a firm deadline.

    An attorney for Trump said Friday that any prosecution related to hush money payments to an adult film star would be “completely unprecedented” and accused the Manhattan district attorney of targeting the former president for “political reasons and personal animus.”

    Trump attorney Joe Tacopina said in a statement shared with CNN that the campaign finance laws in this case, which is related to seven-year-old allegations, are “murky” and that the underlying legal theories of a possible case are “untested.”

    “This DA and the former DA have been scouring every aspect of President Trump’s personal life and business affairs for years in search of a crime and needs to stop. This is simply not what our justice system is about,” Tacopina said.

    Cohen, Trump’s onetime fixer, played a central role in the hush money episode and is involved in the investigation.

    He has admitted to paying $130,000 to Daniels to stop her from going public about the alleged affair with Trump just before the 2016 election. He also helped arrange a $150,000 payment from the publisher of the National Enquirer to Karen McDougal to kill her story claiming a 10-month affair with Trump. Trump also denies an affair with McDougal.

    Cohen was sentenced to three years in prison after pleading guilty to eight counts, including two counts of campaign-finance violations for orchestrating or making payments during the 2016 campaign.

    Cohen met with the Manhattan district attorney’s office on Friday and is set to appear Monday as well.

    Speaking to reporters has he walked into court Friday, Cohen said he has not yet testified in front of a grand jury.

    “I have to applaud District Attorney Bragg for giving Donald the opportunity to come in and to tell his story,” he said. “Now knowing Donald as well as I do, understand that, he doesn’t tell the truth. It’s one thing to turn around and to lie on your ‘Untruth Social’ and it’s another thing to turn around and to lie before a grand jury. So I don’t suspect that he’s going to be coming.”

    For her part, Daniels, also known as Stephanie Clifford, said in 2021 that she had not yet testified in the probe but that she would “love nothing more than” to be interviewed by prosecutors investigating the Trump Organization.

    Daniels said at the time that her attorney has been in contact with Manhattan and New York state investigators and that she has had meetings with them about other issues. She said if she were asked to talk to investigators or a grand jury she would “tell them everything I know.”

    She wrote a tell-all book in 2018 that described the alleged affair in graphic detail, with her then-attorney saying that the book was intended to prove her story about having sex with Trump is true.

    Bragg’s investigation has continued to move forward in recent months as it neared this latest development.

    Trump’s lawyer recently met with the district attorney’s office, one source told CNN. His legal team has been concerned with Bragg’s intentions because of recently ramped up activity at the grand jury, according to another source familiar with the matter.

    Former Trump White House aides Hope Hicks and Kellyanne Conway recently appeared before the grand jury. And CNN reported last month that Jeffrey McConney, the controller of the Trump Organization, would appear in front of the grand jury, according to people familiar with matter.

    McConney is one of the highest-ranking financial officers at the Trump Organization and has responsibility for its books and records.

    Trump’s attorneys would likely be offered a chance to persuade the DA’s team that an indictment is not warranted.

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  • New York prosecutor signals possible criminal indictment against Trump

    New York prosecutor signals possible criminal indictment against Trump

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    New York prosecutor signals possible criminal indictment against Trump – CBS News


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    Manhattan’s district attorney signaled a possible indictment against former President Donald Trump. Trump has been given the option to testify before the grand jury investigating whether adult film star Stormy Daniels was paid off using a legal expense during the 2016 presidential campaign. White House and political correspondent Ed O’Keefe reports from Washington.

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  • Fact check: Trump delivers wildly dishonest speech at CPAC | CNN Politics

    Fact check: Trump delivers wildly dishonest speech at CPAC | CNN Politics

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    Washington
    CNN
     — 

    As president, Donald Trump made some of his most thoroughly dishonest speeches at the annual Conservative Political Action Conference.

    As he embarks on another campaign for the presidency, Trump delivered another CPAC doozy Saturday night.

    Trump’s lengthy address to the right-wing gathering in Maryland was filled with wildly inaccurate claims about his own presidency, Joe Biden’s presidency, foreign affairs, crime, elections and other subjects.

    Here is a fact check of 23 of the false claims Trump made. (And that’s far from the total.)

    Crime in Manhattan

    While Trump criticized Manhattan District Attorney Alvin Bragg, who has been investigating Trump’s company, he claimed that “killings are taking place at a number like nobody’s ever seen, right in Manhattan.”

    Facts First: It isn’t even close to true that Manhattan is experiencing a number of killings that nobody has ever seen. The region classified by the New York Police Department as Manhattan North had 43 reported murders in 2022; that region had 379 reported murders in 1990 and 306 murders in 1993. The Manhattan South region had 35 reported murders in 2022 versus 124 reported murders in 1990 and 86 murders in 1993. New York City as a whole is also nowhere near record homicide levels; the city had 438 reported murders in 2022 versus 2,262 in 1990 and 1,927 in 1993.

    Manhattan North had just eight reported murders this year through February 19, while Manhattan South had one. The city as a whole had 49 reported murders.

    The National Guard and Minnesota

    Talking about rioting amid racial justice protests after the police murder of George Floyd in Minneapolis in 2020, Trump claimed he had been ready to send in the National Guard in Seattle, then added, “We saved Minneapolis. The thing is, we’re not supposed to do that. Because it’s up to the governor, the Democrat governor. They never want any help. They don’t mind – it’s almost like they don’t mind to have their cities and states destroyed. There’s something wrong with these people.”

    Facts First: This is a reversal of reality. Minnesota’s Democratic governor, Tim Walz, not Trump, was the one who deployed the Minnesota National Guard during the 2020 unrest; Walz first activated the Guard more than seven hours before Trump publicly threatened to deploy the Guard himself. Walz’s office told CNN in 2020 that the governor activated the Guard in response to requests from officials in Minneapolis and St. Paul – cities also run by Democrats.

    Trump has repeatedly made the false claim that he was the one who sent the Guard to Minneapolis. You can read a longer fact check, from 2020, here.

    Trump’s executive order on monuments

    Trump boasted that he had taken effective action as president to stop the destruction of statues and memorials. He claimed: “I passed and signed an executive order. Anybody that does that gets 10 years in jail, with no negotiation – it’s not ’10’ but it turns into three months.” He added: “But we passed it. It was a very old law, and we found it – one of my very good legal people along with [adviser] Stephen Miller, they found it. They said, ‘Sir, I don’t know if you want to try and bring this back.’ I said. ‘I do.’”

    Facts First: Trump’s claim is false. He did not create a mandatory 10-year sentence for people who damage monuments. In fact, his 2020 executive order did not mandate any increase in sentences.

    Rather, the executive order simply directed the attorney general to “prioritize” investigations and prosecutions of monument-destruction cases and declared that it is federal policy to prosecute such cases to the fullest extent permitted under existing law, including an existing law that allowed a sentence of up to 10 years in prison for willfully damaging federal property. The executive order did nothing to force judges to impose a 10-year sentence.

    Vandalism in Portland

    Trump claimed, “How’s Portland doing? They don’t even have storefronts anymore. Everything’s two-by-four’s because they get burned down every week.”

    Facts First: This is a major exaggeration. Portland obviously still has hundreds of active storefronts, though it has struggled with downtown commercial vacancies for various reasons, and some businesses are sometimes vandalized by protesters. Trump has for years exaggerated the extent of property damage from protest vandalism in Portland.

    Russian expansionism

    Boasting of his foreign policy record, Trump claimed, “I was also the only president where Russia didn’t take over a country during my term.”

    Facts First: While it’s true that Russia didn’t take over a country during Trump’s term, it’s not true that he was the only US president under whom Russia didn’t take over a country. “Totally false,” Michael Khodarkovsky, a Loyola University Chicago history professor who is an expert on Russian imperialism, said in an email. “If by Russia he means the current Russian Federation that existed since 1991, then the best example is Clinton, 1992-98. During this time Russia fought a war in Chechnya, but Chechnya was not a country but one of Russia’s regions.”

    Khodarkovsky added, “If by Russia he means the USSR, as people often do, then from 1945, when the USSR occupied much of Eastern Europe until 1979, when USSR invaded Afghanistan, Moscow did not take over any new country. It only sent forces into countries it had taken over in 1945 (Hungary 1956, Czechoslovakia 1968).”

    NATO funding

    Trump said while talking about NATO funding: “And I told delinquent foreign nations – they were delinquent, they weren’t paying their bills – that if they wanted our protection, they had to pay up, and they had to pay up now.”

    Facts First: It’s not true that NATO countries weren’t paying “bills” until Trump came along or that they were “delinquent” in the sense of failing to pay bills – as numerous fact-checkers pointed out when Trump repeatedly used such language during his presidency. NATO members haven’t been failing to pay their share of the organization’s common budget to run the organization. And while it’s true that most NATO countries were not (and still are not) meeting NATO’s target of each country spending a minimum of 2% of gross domestic product on defense, that 2% figure is what NATO calls a “guideline”; it is not some sort of binding contract, and it does not create liabilities. An official NATO recommitment to the 2% guideline in 2014 merely said that members not currently at that level would “aim to move towards the 2% guideline within a decade.”

    NATO Secretary General Jens Stoltenberg did credit Trump for securing increases in European NATO members’ defense spending, but it’s worth noting that those countries’ spending had also increased in the last two years of the Obama administration following Russia’s 2014 annexation of Ukraine’s Crimea and the recommitment that year to the 2% guideline. NATO notes on its website that 2022 was “the eighth consecutive year of rising defence spending across European Allies and Canada.”

    NATO’s existence

    Boasting of how he had secured additional funding for NATO from countries, Trump claimed, “Actually, NATO wouldn’t even exist if I didn’t get them to pay up.”

    Facts First: This is nonsense.

    There was never any indication that NATO, created in 1949, would have ceased to exist in the early 2020s without additional funding from some members. The alliance was stable even with many members not meeting the alliance’s guideline of having members spend 2% of their gross domestic product on defense.

    We don’t often fact-check claims about what might have happened in an alternative scenario, but this Trump claim has no basis in reality. “The quote doesn’t make sense, obviously,” said Erwan Lagadec, research professor at George Washington University’s Elliott School of International Affairs and an expert on NATO.

    Lagadec noted that NATO has had no trouble getting allies to cover the roughly $3 billion in annual “direct” funding for the organization, which is “peanuts” to this group of countries. And he said that the only NATO member that had given “any sign” in recent years that it was thinking about leaving the alliance “was … the US, under Trump.” Lagadec added that the US leaving the alliance is one scenario that could realistically kill it, but that clearly wasn’t what Trump was talking about in his remarks on spending levels.

    James Goldgeier, an American University professor of international relations and Brookings Institution visiting fellow, said in an email: “NATO was founded in 1949, so it seems very clear that Donald Trump had nothing to do with its existence. In fact, the worry was that he would pull the US out of NATO, as his national security adviser warned he would do if he had been reelected.”

    The cost of NATO’s headquarters

    Trump mocked NATO’s headquarters, saying, “They spent – an office building that cost $3 billion. It’s like a skyscraper in Manhattan laid on its side. It’s one of the longest buildings I’ve ever seen. And I said, ‘You should have – instead of spending $3 billion, you should have spent $500 million building the greatest bunker you’ve ever seen. Because Russia didn’t – wouldn’t even need an airplane attack. One tank one shot through that beautiful glass building and it’s gone.’”

    Facts First: NATO did spend a lot of money on its headquarters in Belgium, but Trump’s “$3 billion” figure is a major exaggeration. When Trump used the same inaccurate figure in early 2020, NATO told CNN that the headquarters was actually constructed for a sum under the approved budget of about $1.18 billion euro, which is about $1.3 billion at exchange rates as of Sunday morning.

    The Pulitzer Prize

    Trump made his usual argument that The Washington Post and The New York Times should not have won a prestigious journalism award, a 2018 Pulitzer Prize, for their reporting on Russian interference in the 2016 election and its connections to Trump’s team. He then said, “And they were exactly wrong. And now they’ve even admitted that it was a hoax. It was a total hoax, and they got the prize.”

    Facts First: The Times and Post have not made any sort of “hoax” admission. “The claim is completely false,” Times spokesperson Charlie Stadtlander said in an email on Sunday.

    Stadtlander continued: “When our Pulitzer Prize shared with The Washington Post was challenged by the former President, the award was upheld by the Pulitzer Prize Board after an independent review. The board stated that ‘no passages or headlines, contentions or assertions in any of the winning submissions were discredited by facts that emerged subsequent to the conferral of the prizes.’ The Times’s reporting was also substantiated by the Mueller investigation and Republican-led Senate Intelligence Committee investigation into the matter.”

    The Post referred CNN to that same July statement from the Pulitzer Prize Board.

    Awareness of the Nord Stream 2 pipeline

    Trump claimed of his opposition to Russia’s Nord Stream 2 gas pipeline to Germany: “Nord Stream 2 – Nobody ever heard of it … right? Nobody ever heard of Nord Stream 2 until I came along. I started talking about Nord Stream 2. I had to go call it ‘the pipeline’ because nobody knew what I was talking about.”

    Facts First: This is standard Trump hyperbole; it’s just not true that “nobody” had heard of Nord Stream 2 before he began discussing it. Nord Stream 2 was a regular subject of media, government and diplomatic discussion before Trump took office. In fact, Biden publicly criticized it as vice president in 2016. Trump may well have generated increased US awareness to the controversial project, but “nobody ever heard of Nord Stream 2 until I came along” isn’t true.

    Trump and Nord Stream 2

    Trump claimed, “I got along very well with Putin even though I’m the one that ended his pipeline. Remember they said, ‘Trump is giving a lot to Russia.’ Really? Putin actually said to me, ‘If you’re my friend, I’d hate like hell to see you as my enemy.’ Because I ended the pipeline, right? Do you remember? Nord Stream 2.” He continued, “I ended it. It was dead.”

    Facts First: Trump did not kill Nord Stream 2. While he did approve sanctions on companies working on the project, that move came nearly three years into his presidency, when the pipeline was already around an estimated 90% complete – and the state-owned Russian gas company behind the project said shortly after the sanctions that it would complete the pipeline itself. The company announced in December 2020 that construction was resuming. And with days left in Trump’s term in January 2021, Germany announced that it had renewed permission for construction in its waters.

    The pipeline never began operations; Germany ended up halting the project as Russia was about to invade Ukraine early last year. The pipeline was damaged later in the year in what has been described as an act of sabotage.

    The Obama administration and Ukraine

    Trump claimed that while he provided lethal assistance to Ukraine, the Obama administration “didn’t want to get involved” and merely “supplied the bedsheets.” He said, “Do you remember? They supplied the bedsheets. And maybe even some pillows from [pillow businessman] Mike [Lindell], who’s sitting right over here. … But they supplied the bedsheets.”

    Facts First: This is inaccurate. While it’s true that the Obama administration declined to provide weapons to Ukraine, it provided more than $600 million in security assistance to Ukraine between 2014 and 2016 that involved far more than bedsheets. The aid included counter-artillery and counter-mortar radars, armored Humvees, tactical drones, night vision devices and medical supplies.

    Biden and a Ukrainian prosecutor

    Trump claimed that Biden, as vice president, held back a billion dollars from Ukraine until the country fired a prosecutor who was “after Hunter” and a company that was paying him. Trump was referring to Hunter Biden, Joe Biden’s son, who sat on the board of Ukrainian energy company Burisma Holdings.

    Facts First: This is baseless. There has never been any evidence that Hunter Biden was under investigation by the prosecutor, Viktor Shokin, who had been widely faulted by Ukrainian anti-corruption activists and European countries for failing to investigate corruption. A former Ukrainian deputy prosecutor and a top anti-corruption activist have both said the Burisma-related investigation was dormant at the time Joe Biden pressured Ukraine to fire Shokin.

    Daria Kaleniuk, executive director of Ukraine’s Anti-Corruption Action Center, told The Washington Post in 2019: “Shokin was not investigating. He didn’t want to investigate Burisma. And Shokin was fired not because he wanted to do that investigation, but quite to the contrary, because he failed that investigation.” In addition, Shokin’s successor as prosecutor general, Yuriy Lutsenko, told Bloomberg in 2019: “Hunter Biden did not violate any Ukrainian laws – at least as of now, we do not see any wrongdoing.”

    Biden, as vice president, was carrying out the policy of the US and its allies, not pursuing his own agenda, in threatening to withhold a billion-dollar US loan guarantee if the Ukrainian government did not sack Shokin. CNN fact-checked Trump’s claims on this subject at length in 2019.

    Trump and job creation

    Promising to save Americans’ jobs if he is elected again, Trump claimed, “We had the greatest job history of any president ever.”

    Facts First: This is false. The US lost about 2.7 million jobs during Trump’s presidency, the worst overall jobs record for any president. The net loss was largely because of the Covid-19 pandemic, but even Trump’s pre-pandemic jobs record – about 6.7 million jobs added – was far from the greatest of any president ever. The economy added more than 11.5 million jobs in the first term of Democratic President Bill Clinton in the 1990s.

    Tariffs on China

    Trump repeated a trade claim he made frequently during his presidency. Speaking of China, he said he “charged them” with tariffs that had the effect of “bringing in hundreds of billions of dollars pouring into our Treasury from China. Thank you very much, China.” He claimed that he did this even though “no other president had gotten even 10 cents – not one president got anything from them.”

    Facts First: As we have written repeatedly, it’s not true that no president before Trump had generated any revenue through tariffs on goods from China. In reality, the US has had tariffs on China for more than two centuries, and FactCheck.org reported in 2019 that the US generated an “average of $12.3 billion in custom duties a year from 2007 to 2016, according to the U.S. International Trade Commission DataWeb.” Also, American importers, not Chinese exporters, make the actual tariff payments – and study after study during Trump’s presidency found that Americans were bearing most of the cost of the tariffs.

    The trade deficit with China

    Trump went on to repeat a false claim he made more than 100 times as president – that the US used to have a trade deficit with China of more than $500 billion. He claimed it was “five-, six-, seven-hundred billion dollars a year.”

    Facts First: The US has never had a $500 billion, $600 billion or $700 billion trade deficit with China even if you only count trade in goods and ignore the services trade in which the US runs a surplus with China. The pre-Trump record for a goods deficit with China was about $367 billion in 2015. The goods deficit hit a new record of about $418 billion under Trump in 2018 before falling back under $400 billion in subsequent years.

    Trump and the 2020 election

    Trump said people claim they want to run against him even though, he claimed, he won the 2020 election. He said, “I won the second election, OK, won it by a lot. You know, when they say, when they say Biden won, the smart people know that didn’t [happen].”

    Facts First: This is Trump’s regular lie. He lost the 2020 election to Biden fair and square, 306 to 232 in the Electoral College. Biden earned more than 7 million more votes than Trump did.

    Democrats and elections

    Trump said Democrats are only good at “disinformation” and “cheating on elections.”

    Facts First: This is nonsense. There is just no basis for a broad claim that Democrats are election cheaters. Election fraud and voter fraud are exceedingly rare in US elections, though such crimes are occasionally committed by officials and supporters of both parties. (We’ll ignore Trump’s subjective claim about “disinformation.”)

    The liberation of the ISIS caliphate

    Trump repeated his familiar story about how he had supposedly liberated the “caliphate” of terror group ISIS in “three weeks.” This time, he said, “In fact, with the ISIS caliphate, a certain general said it could only be done in three years, ‘and probably it can’t be done at all, sir.’ And I did it in three weeks. I went over to Iraq, met a great general. ‘Sir, I can do it in three weeks.’ You’ve heard that story. ‘I can do it in three weeks, sir.’ ‘How are you going to do that?’ They explained it. I did it in three weeks. I was told it couldn’t be done at all, that it would take at least three years. Did it in three weeks. Knocked out 100% of the ISIS caliphate.”

    Facts First: Trump’s claim of eliminating the ISIS caliphate in “three weeks” isn’t true; the ISIS “caliphate” was declared fully liberated more than two years into Trump’s presidency, in 2019. Even if Trump was starting the clock at the time of his visit to Iraq, in late December 2018, the liberation was proclaimed more than two and a half months later. In addition, Trump gave himself far too much credit for the defeat of the caliphate, as he has in the past, when he said “I did it”: Kurdish forces did much of the ground fighting, and there was major progress against the caliphate under President Barack Obama in 2015 and 2016.

    IHS Markit, an information company that studied the changing size of the caliphate, reported two days before Trump’s 2017 inauguration that the caliphate shrunk by 23% in 2016 after shrinking by 14% in 2015. “The Islamic State suffered unprecedented territorial losses in 2016, including key areas vital for the group’s governance project,” an analyst there said in a statement at the time.

    Military equipment left in Afghanistan

    Trump claimed, as he has before, that the US left behind $85 billion worth of military equipment when it withdrew from Afghanistan in 2021. He said of the leader of the Taliban: “Now he’s got $85 billion worth of our equipment that I bought – $85 billion.” He added later: “The thing that nobody ever talks about, we lost 13 [soldiers], we lost $85 billion worth of the greatest military equipment in the world.”

    Facts First: Trump’s $85 billion figure is false. While a significant quantity of military equipment that had been provided by the US to Afghan government forces was indeed abandoned to the Taliban upon the US withdrawal, the Defense Department has estimated that this equipment had been worth about $7.1 billion – a chunk of about $18.6 billion worth of equipment provided to Afghan forces between 2005 and 2021. And some of the equipment left behind was rendered inoperable before US forces withdrew.

    As other fact-checkers have previously explained, the “$85 billion” is a rounded-up figure (it’s closer to $83 billion) for the total amount of money Congress has appropriated during the war to a fund supporting the Afghan security forces. A minority of this funding was for equipment.

    The Afghanistan withdrawal and the F-16

    Trump claimed that the Taliban acquired F-16 fighter planes because of the US withdrawal, saying: “They feared the F-16s. And now they own them. Think of it.”

    Facts First: This is false. F-16s were not among the equipment abandoned upon the US withdrawal and the collapse of the Afghan armed forces, since the Afghan armed forces did not fly F-16s.

    The border wall

    Trump claimed that he had kept his promise to complete a wall on the border with Mexico: “As you know, I built hundreds of miles of wall and completed that task as promised. And then I began to add even more in areas that seemed to be allowing a lot of people to come in.”

    Facts First: It’s not true that Trump “completed” the border wall. According to an official “Border Wall Status” report written by US Customs and Border Protection two days after Trump left office, about 458 miles of wall had been completed under Trump – but about 280 more miles that had been identified for wall construction had not been completed.

    The report, provided to CNN’s Priscilla Alvarez, said that, of those 280 miles left to go, about 74 miles were “in the pre-construction phase and have not yet been awarded, in locations where no barriers currently exist,” and that 206 miles were “currently under contract, in place of dilapidated and outdated designs and in locations where no barriers previously existed.”

    Latin America and deportations

    Trump told his familiar story about how, until he was president, the US was unable to deport MS-13 gang members to other countries, “especially” Guatemala, El Salvador and Honduras because those countries “didn’t want them.”

    Facts First: It’s not true that, as a rule, Guatemala and Honduras wouldn’t take back migrants being deported from the US during Obama’s administration, though there were some individual exceptions.

    In 2016, just prior to Trump’s presidency, neither Guatemala nor Honduras was on the list of countries that Immigration and Customs Enforcement (ICE) considered “recalcitrant,” or uncooperative, in accepting the return of their nationals.

    For the 2016 fiscal year, Obama’s last full fiscal year in office, ICE reported that Guatemala and Honduras ranked second and third, behind only Mexico, in terms of the country of citizenship of people being removed from the US. You can read a longer fact check, from 2019, here.

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  • Ozy Media founder Carlos Watson arrested on fraud charges

    Ozy Media founder Carlos Watson arrested on fraud charges

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    Carlos Watson, the founder of the troubled digital start-up Ozy Media, was arrested Thursday on federal fraud charges as part of what prosecutors say was a scheme to prop up the financially struggling company. 

    Federal agents arrested Watson at a Manhattan hotel after two of the company’s top executives pleaded guilty this month to fraud charges, including Ozy’s then-chief operating officer, Samir Rao, who allegedly impersonated a YouTube executive during a pitch to Goldman Sachs, a potential investor.

    Ozy, which was founded in 2013, had touted “being ahead of the curve” and “never [telling] a story that another national or international publication has already covered.” But the company hemorrhaged millions of dollars before it shut down amid revelations of possibly deceptive business practices.

    The indictment unsealed Thursday in U.S. District Court in Brooklyn accuses Watson of conspiring to commit securities fraud and wire fraud, as well as identity theft for his role in the impersonation of several media executives.

    Ozy advertised itself as a progressive digital platform, but it imploded under insurmountable debt, forcing it to rely on high-interest loans and to more aggressively court investors. It had also faced scrutiny about the size of its audience, with Watson claiming in 2021 that it had 25 million subscribers to its newsletters — more than the New York Times.

    In a parallel civil case, the Securities and Exchange Commission also charged Watson and the company with defrauding investors of about $50 million “through repeated misrepresentations concerning the company’s basic financial condition, business relationships, and fundraising efforts.”

    For instance, Watson and others “routinely and purposely presented prospective investors with false financial information that grossly inflated Ozy Media’s annual revenue by at least 100%,” the SEC said.

    Guilty pleas 

    The SEC said Rao and Ozy’s former chief of staff, Suzee Han, have “agreed to resolve the charges against them,” as they did separately with U.S. prosecutors.

    Rao pleaded guilty in federal court this week, while Han did so last week. The guilty pleas and arrest were first reported by the Wall Street Journal.

    “I am deeply disappointed by the events of today,” Watson’s attorney, Lanny Breuer, said after the arrest. “We were engaged, I thought, in a good faith and constructive dialogue with the government. And given the government’s claims of promoting such dialogue in general, I simply do not understand the dramatic decision to arrest Carlos this morning.”

    Impersonating a bank executive

    Scrutiny of the company deepened after the New York Times reported in October 2021 that an Ozy official had masqueraded as a YouTube executive in a failed attempt to get Goldman Sachs to infuse money into the struggling enterprise. 

    Shortly after, Ozy said it was shutting down.

    “As alleged, Carlos Watson is a con man whose business strategy was based on outright deceit and fraud,” said Breon Peace, the U.S. Attorney for the Brooklyn-based Eastern District of New York. “He ran Ozy as a criminal organization rather than as a reputable media company.”

    Michael J. Driscoll, the assistant director-in-charge of the FBI’s New York field office, said Watson “repeatedly attempted to entice both investors and lenders through a series of deliberate deceptions and fabrications.”

    Maximum sentence

    Authorities say Watson and his business partners, between 2018 and 2021, attempted to defraud investors and lenders of “tens of millions of dollars through fraudulent misrepresentations and omissions” about the company’s debts and other key financial information.

    On multiple occasions, the U.S. attorney’s office said, Watson and his colleagues pretended to be other media executives to cover up earlier misrepresentations.

    If convicted, Watson faces at least two years in prison, with a maximum of 37 years, the U.S. attorney’s office said.

    The SEC’s civil complaint, also filed in the U.S. District Court in Brooklyn, accuses Watson and the company of violating anti-fraud provisions of federal securities laws.

    “We allege that over the course of several years, the defendants raised approximately $50 million from victim investors on the basis of fraudulent documents and repeated misrepresentations, including, at least in one case, falsely impersonating a potential business partner during a meeting with an investment bank,” said Gurbir Grewal, the SEC’s director of enforcement.

    The agency, whose regulatory responsibilities include protecting investors, accused Ozy officials of “routinely and purposely” presenting potential investors with dubious financial information, including falsely claiming that the company’s revenues were at least twice what they actually were.

    In addition, the SEC said, Watson and Rao also sought investments by allegedly telling prospective investors that they were securing money from high-profile companies and investors.

    In one case, the SEC and federal prosecutors contend, Watson and Rao launched a ruse that had Rao impersonating a YouTube executive to convince a prospective investor that Ozy was getting licensing revenue from the online video-sharing behemoth.

    When the potential investor discovered the alleged ploy, Watson asserted that Rao was suffering from a “mental health crisis,” the SEC said.

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  • The New Safe Haven: Brooklyn As A Magnet For Big Money

    The New Safe Haven: Brooklyn As A Magnet For Big Money

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    For the past two decades Brooklyn has developed and emerged as a super borough; an alternative for institutional capital in New York City, and in some metrics, topping the undefeated borough of Manhattan.

    The following major factors have contributed to this trend:

    • No longer second class. Brooklyn has become the first choice for residents, businesses and investors.
    • Size. The borough accounts for 23% of New York City’s land area and includes 31% of the city’s population, resulting in a densely populated 39,438 residents per square mile.
    • Diversity of products and locations. Brooklyn offers quality assets available for institutional investment. For example: multifamily, office and development assets located Downtown; industrial/warehouse in Red Hook and East New York; development in newly rezoned, up and coming areas like Gowanus and previously rezoned neighborhoods like Williamsburg; and affordable housing-driven locations in multiple neighborhoods. This diversity attracts different buckets of institutional capital such as: opportunistic, core, core plus and mission driven.

    Brooklyn Investment Sales 2017-2022

    Brooklyn Saw Record Dollar Volume and Nearly Half of NYC’s Transactions in 2022

    The desirability of Brooklyn as a destination for capital was evident in last year’s numbers when total investment sales exceeded $10 billion for the first time ever, surpassing the previous record of $9.19 billion from 2015, which is a remarkable milestone, highlighted in Ariel’s 2022 Brooklyn Year-End Commercial Real Estate Trends. The borough also accounted for 45% of New York City’s 2,716 transactions, and 25% of the city’s $38.4 billion in dollar volume.

    Brooklyn Investment Sales Volume 2022 vs 2021

    My partner Sean Kelly noted that Brooklyn “finished the year with 16 transactions of $100+ million, nearly doubling the nine from 2021. Building off 2021, which saw rents and vacancy rates return to pre-pandemic levels, many investors reemerged from the sidelines and helped Brooklyn achieve its best year to date.”

    The significant $100+ million transactions included:

    • Avanath Capital Management’s $314.5 million purchase of the fully free market multifamily building at 38 6th Ave & 535 Carlton Ave, which was the California-based investment firm’s first purchase in New York City.
    • The second largest sale in Brooklyn was A&E’s $248.7 million purchase of the Lefrak South BK Multifamily Portfolio consisting of 14 buildings with over 75% of the units rent stabilized.
    • Additionally, KKR purchased for $190 million 80 Dekalb Ave in Fort Greene, a mixed-use, elevator building with a 25-year 421a tax exemption that began in FY 2010-2011.

    Multifamily Market Recorded the Most Transactions Ever

    These large deals contributed to Brooklyn’s multifamily market having its strongest year to date in 2022, finishing with 807 transactions, the most ever recorded in the borough. This represents a 29% increase from 2021’s 624 transactions. Dollar volume ended the year at $5.3 billion, also an all-time high, and up 10% from 2021. Excluding the Starrett City Portfolio partial interest sale in August 2021 for $1.3 billion, the year-over-year dollar volume would have increased by 33%. The average price per square foot for multifamily reached $459, a 23% increase compared to 2021 and the highest average ever recorded in the borough.

    However, like the rest of the city, the Housing Stability and Tenant Protection Act (HSTPA) of 2019 changed investor behavior last year, prompting institutional investors and other buyers to bypass rent stabilized buildings in favor of free market multifamily assets, including smaller buildings.

    “Although the borough saw many sizable deals, small multifamily buildings with fewer than six units actually accounted for over 50% of the multifamily transactions in the borough last year, and 93% of the multifamily sales traded for $10 million or less,” said Director Stephen Vorvolakos. “Our team has had a tremendous amount of success with smaller properties and receive multiple offers as soon as we go to market with these buildings. We don’t see this momentum slowing down anytime soon unless the laws governing rent stabilized buildings change.”

    The Carlyle Group is one example of institutional capital that has been pursuing buildings with 10 units or less and last year refinanced a loan for 39 properties in Brooklyn and Queens for $500 million.

    Development Market Remained Strong Despite Expiring Tax Abatement Program

    Brooklyn’s development market remained strong, recording over $1.6 billion in sales across 166 transactions, with most of these deals allowing developers to build rental housing. Brooklyn saw 38 development transactions of $10 million or more, a 31% increase from 2021, and the average price per buildable square foot rose 10% to $278 in 2022 compared to the previous year.

    “This substantial development activity is no surprise because every day we talk about the perpetual shortage of housing in New York City, which is driving up rents,” Kelly said. “Higher rents have somewhat offset the increase in labor and material costs, so pricing has remained pretty stable.”

    Williamsburg continued to be the hot spot for development with 33 transactions totaling $325 million accounting for 19% of sales in Brooklyn last year. In Gowanus, which was rezoned for residential use in late 2021, transaction volume saw a strong uptick with eight transactions, doubling its total from 2020 & 2021 combined. Madison Realty Capital’s purchase of 350-355 Hicks Street in Cobble Hill for $142 million was the largest development site sale in Brooklyn since 2019. The next two highest sales were in Flatbush and Brighton Beach, an indication that developers are spreading their projects throughout the borough.

    Politics also played a role in investor decisions in the development market last year. The New York State Legislature allowed the 421a/Affordable New York tax abatement to expire on June 15th, which caused a burst of sales activity in the months before as developers rushed to get their shovels in the ground before the deadline.

    We’re hopeful that a successor program to 421a will be introduced as both Gov. Kathy Hochul and Mayor Eric Adams are advocating for incentives to encourage new housing development. The governor also has proposed extending the deadline to obtain a TCO for 421a projects by four years to 2030. Under the current program, developers are required to finish construction by June 2026 to receive the property tax break.

    “Without an extension, it’s going to be very, very difficult for the larger projects to complete their projects in three years, although it will be achievable for the smaller to mid-sized projects,” Kelly said. “So, I think there’s going to be a lot of transactional volume in the capital markets, financing the construction for rental projects and we’ll see some sales as well. We’re actually just hitting the market with a site in Gowanus that will allow for the construction of 140 units.”

    Industrial/Warehouse/Storage Sales Jumped 76%

    The industrial/warehouse market continued to thrive in Brooklyn during the post pandemic era as more retailers shifted into the online space. Dollar volume totaled $1.3 billion, a 76% increase year-over-year, the highest amount ever recorded in Brooklyn, while transactions were flat at 99. The $492 per gross square foot average is a Brooklyn record, surpassing 2021 of $425 by 14%, which was the previous high.

    The rise in dollar volume can be attributed to the $332 million sale of 640 Columbia Street in Red Hook and the $228.5 million sale of 554 & 578 Cozine Avenue in East New York, both in the first half of 2022. Both properties are fully leased to Amazon and are the two largest industrial/warehouse sales ever in Brooklyn. In addition to the Columbia Street sale, Red Hook saw six transactions totaling $70 million in 2022.

    What to Expect in the Balance of 2023

    Brooklyn today provides a growing and significant alternative to any type of institutional capital. We believe that 2023 will be another strong year for the borough and are already aware of several assets slated to close from affordable housing complexes to opportunistic development sites. In a way, Brooklyn offers everything available in Manhattan, the Bronx and Queens in one borough. The institutional narrative is strong.

    To read the full Brooklyn 2022 Year-End Commercial Real Estate Trends report, please click HERE. Please see my podcast about the Brooklyn market below.

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    Shimon Shkury, Contributor

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  • FTX founder Sam Bankman-Fried hit with new fraud charges

    FTX founder Sam Bankman-Fried hit with new fraud charges

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    FTX founder Sam Bankman-Fried faced new fraud charges Thursday, as prosecutors accused him of cheating thousands of investors out of billions of dollars while casting himself as a trustworthy “savior of the cryptocurrency industry” — an image boosted by celebrity-studded Super Bowl advertising and big donations to political figures.

    Four new charges, including securities fraud and conspiracy fraud counts, were unveiled with the unsealing of the refreshed indictment in Manhattan federal court that was returned a day earlier.

    In a statement, U.S. Attorney Damian Williams hinted, as he has several times previously, that prosecutors were not finished building their case.

    “We are hard at work and will remain so until justice is done,” he said.

    A spokesperson for Bankman-Fried declined to comment.


    FTX founder Sam Bankman-Fried pleads not guilty to fraud

    05:37

    Facing 155 years behind bars

    The new charges raised the prison sentence Bankman-Fried could face if convicted from 115 years to 155 years, authorities said.

    The new charges raised the number of counts in the indictment to 12, as prosecutors more thoroughly and eloquently told their story of what happened to FTX, Bankman-Fried’s global cryptocurrency exchange, and its affiliated cryptocurrency trading hedge fund, Alameda Research.

    The description cast FTX customers, investors, financial institutions, lenders and the Federal Election Commission as victims of fraudulent schemes Bankman-Fried allegedly carried out from 2019 until last November.

    Prosecutors said Bankman-Fried stole billions of dollars in FTX customer deposits to support the operations and investments of FTX and Alameda and to fund speculative venture investments, make charitable donations and spend tens of millions of dollars on illegal campaign donations to Democrats and Republicans in an attempt to buy influence over cryptocurrency regulation in Washington.

    They said Bankman-Fried cast himself as a “figurehead of a trustworthy and law-abiding segment of the cryptocurrency industry” that sought to protect investors and clients.

    “As recently as late 2022, Bankman-Fried boasted about FTX’s profits and portrayed himself as a savior of the cryptocurrency industry, making venture investments and acquisitions purportedly to assist struggling industry participants,” the new indictment says.

    Meanwhile, he spent millions of dollars on celebrity advertisements during the 2022 Super Bowl that promoted FTX as the “safest and easiest way to buy and sell crypto” and “the most trusted way to buy and sell” digital assets, it states.

    NFL quarterback Tom Brady, supermodel Gisele Bundchen and comedian Larry David are among a celebrity-studded list of people who appeared in ads for the fallen crypto exchange before its sudden collapse.

    David, the creator of “Seinfeld” and “Curb Your Enthusiasm,” appeared in an ad for FTX entitled “Don’t Miss Out on Crypto,” which aired during the 2022 Super Bowl. As part of a $20 million ad campaign, Brady and Bundchen in 2021 filmed a commercial called “FTX. You In?” showing them telling acquaintances to join the FTX platform.

    In reality, prosecutors wrote, Bankman-Fried routinely tapped FTX customer assets to provide interest-free capital for his and Alameda’s private expenditures, and in the process “exposed FTX customers to massive, undisclosed risk.” They said Bankman-Fried controlled both companies and “used them to prop each other up, notwithstanding conflicts of interest and outright lies to the contrary.”

    Concerns over electronic devices 

    It was not known when Bankman-Fried would return to Manhattan for an arraignment. Twice in the last two weeks, he has appeared in court after prosecutors expressed concern that he might be communicating online in ways they cannot trace. They have also said his communications indicate that he might be trying to influence a witness with incriminating evidence against him.

    A judge is deciding how to toughen Bankman-Fried’s bail requirements to prevent any improper communications. Last week, he even suggested that Bankman-Fried might have to be incarcerated prior to trial if his communications cannot be monitored to ensure he is not tampering with witnesses.

    Bankman-Fried has already pleaded not guilty to charges that he cheated investors and looted customer deposits at FTX, his cryptocurrency platform. The charges accuse him of diverting money from his investors in part to finance political donations and make risky trades through his cryptocurrency trading hedge fund, Alameda Research.


    Two Bankman-Fried associates plead guilty to fraud as FTX co-founder is released on $250M bond

    01:50

    Bankman-Fried was arrested in the Bahamas in December and was brought to the United States soon afterward. FTX filed for bankruptcy on November 11, when it ran out of money after the cryptocurrency equivalent of a bank run.

    He is free on a $250 million personal recognizance bond. The bail arrangement allows him to live with electronic monitoring at his parents’ home in Palo Alto, California.

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  • Bankman-Fried Hit With Four New Criminal Charges Alleging Illegal Political Donations And Bank Fraud

    Bankman-Fried Hit With Four New Criminal Charges Alleging Illegal Political Donations And Bank Fraud

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    Former billionaire Sam Bankman-Fried, the founder of befallen crypto exchange FTX, has been charged with four new criminal counts including allegations of illegal political donations and bank fraud.

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  • Thom Browne channels ‘Little Prince’ in heartfelt NYFW show

    Thom Browne channels ‘Little Prince’ in heartfelt NYFW show

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    NEW YORK (AP) — The beloved novella “The Little Prince” tells us that we see clearly only with our hearts — that what is essential is invisible to the eye. Fair enough. But Thom Browne, in a fashion show channeling the famed 1943 tale, couldn’t help but dazzle the eye, too.

    Those lucky enough to get a seat at a Browne runway show know what they’re getting into by now — which is, basically, anything but a typical runway show. Rather, Browne’s shows are elaborate, lengthy, fully realized theatrical productions, with backstories and narration and music, along with fashions featuring endlessly inventive craftsmanship.

    On Tuesday night at New York Fashion Week, Browne, who has just taken on the high-profile role of chairman of the Council of Fashion Designers of America, welcomed guests to a large theater space on the far west side of Manhattan with a scene both fantastical and familiar.

    A small airplane, stuck in the sand (real sand). Planets and stars, twinkling from above. What was it this time … oh, of course! Browne had brought his guests to the Sahara to recreate the plane crash from Antoine de Saint-Exupéry’s story.

    “We find ourselves in the desert,” the taped narration began. “A plane has crashed.” A model playing the pilot, dressed in a space-suit like ensemble with pouffy sleeves, wandered about, disoriented, soon to encounter another model with hair in blonde curls reminiscent of the prince — and dressed in one of Browne’s signature gray blazers with a four-stripe band on the arm.

    “Two lost travelers meet,” said the narrator, describing one, the pilot, who has traveled far and wide across Earth, and another, the prince, who has traveled farther, from his own planet. Then came a series of models representing distant planets. These characters had high white buns with elaborate headpieces, and endlessly long curled fingernails and toenails.

    Next came a procession of adults — who, in the words of the prince, need to be told what to do and only see what’s in front of them. These models displayed a series of coats in sumptuous tweeds, all with exaggerated huge shoulders, with suits and ties underneath. They carried briefcases bearing clock faces — indeed, the heels of their chunky shoes, too, formed round clock faces, as did the stage itself. They walked to the methodical ticking of a clock’s second hand (you think models walk fast in fashion shows? Not in a Thom Browne show.)

    A subsequent group wore fanciful combinations of prints and plaids, with bustles at the back and tight patterned waistbands. And there was yet another group — seemingly representing children — in deconstructed suits, garments comprised of jackets and shirts taken apart and patched together, with shoulders hanging off waists or sleeves jutting out every which way. Elaborate gold concoctions that would befit a pope adorned their heads.

    An eclectic group of celebrities, from music figures Erykah Badu, Queen Latifah and Lil Nas X to TV host Whoopi Goldberg to actors Christine Baranski, Rebecca Hall and Jesse Williams, watched as the show took an emotional turn at the end, with the models coming back out in couples, hand in hand in a message of togetherness, accompanied by the song “You’ll Never Walk Alone” from the Broadway musical “Carousel.”

    Browne backed up his appeal to the emotions — on Valentine’s Day — by turning his traditional post-show bow into a gesture of romance, bringing his partner, curator Andrew Bolton, a red heart-shaped box of chocolates at his seat between Anna Wintour and Goldberg.

    In Browne’s ever-stylish hands, to the strains of David Bowie’s “Starman,” the gesture did not seem corny at all.

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  • FTX founder keeps talking, ignoring typical legal strategy

    FTX founder keeps talking, ignoring typical legal strategy

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    NEW YORK (AP) — For federal prosecutors, Sam Bankman-Fried could be the gift that keeps on giving.

    After the November collapse of FTX, the cryptocurrency exchange he founded in 2019, Bankman-Fried unexpectedly gave a series of interviews intended to present his version of events. He was indicted in December and charged with perpetrating one of the biggest frauds in U.S. history — and he’s still talking, either in person or on the internet.

    The atypical chattiness for a criminal defendant is likely causing Bankman-Fried’s attorneys to scratch their heads, or worse. Prosecutors can use any statements, tweets or other communications against him at his trial, which is scheduled for October.

    “Prosecutors love when defendants shoot their mouths off,” said Daniel R. Alonso, a former federal prosecutor who is now a white-collar criminal defense attorney. If Bankman-Fried’s public comments before trial can be proven false during the trial, it may undermine his credibility with a jury, he said.

    Bankman-Fried returned to Manhattan federal court on Thursday for a hearing into whether his bail package will be altered to prevent witness tampering. Prosecutors say he sent an encrypted message over the Signal texting app on Jan. 15 to the general counsel of FTX US, a likely witness for the government.

    Lawyers were scheduled to submit more information to Judge Lewis A. Kaplan by Monday before he makes a decision about the bail package. Bankman-Fried has been confined with electronic monitoring to his parents’ home in Palo Alto, California, since December.

    Before its collapse, FTX was the world’s second-largest crypto exchange and Bankman-Fried, 30, was its CEO and a billionaire several times over, at least on paper. Celebrities and politicians alike vouched for FTX and its founder, and Bankman-Fried was considered a leading figure in the crypto world.

    However, the broad collapse of cryptocurrencies last year caused severe financial stress for numerous companies in the crypto universe, from lenders to exchanges to firms focused on investing in digital assets. FTX sought bankruptcy protection in November after customers pulled out their money in the crypto equivalent of a bank run.

    Federal prosecutors have said Bankman-Fried devised “a scheme and artifice to defraud” FTX’s customers and investors right from FTX’s inception. They say he illegally diverted their money to cover expenses, debts and risky trades at Alameda Research, the crypto hedge fund he started in 2017, and to make lavish real estate purchases and large political donations.

    In interviews and Twitter posts, Bankman-Fried has said he never intended to defraud anyone. He’s maintained that running FTX took up all his time and that he was unaware of the financial problems at the hedge fund until it was too late.

    Those assertions are likely to be refuted by one of the government’s key witnesses. Caroline Ellison, the former CEO of Alameda, has agreed to plead guilty for her role in FTX’s collapse and to testify against Bankman-Fried. In a plea hearing in December, Ellison said she knew FTX had used billions in customer funds to make loans to Alameda and agreed with Bankman-Fried and others to take steps to conceal the nature of the loans.

    Gary Wang, who co-founded FTX with Bankman-Fried, also struck a deal for cooperation. At his own plea hearing, Wang said that he made changes to computer code to enable FTX customer funds to be transferred to Alameda.

    Another claim made often by Bankman-Fried is that he’s trying to help recover funds for FTX customers, but that FTX’s new management has cut him off and has taken steps, including filing for bankruptcy protection, that could inhibit customers from getting their money back.

    For instance, Bankman-Fried says that when FTX collapsed, outside parties had made funding offers totaling billions of dollars, and if given a few weeks the company could have raised enough money “to make customers substantially whole.” Instead, it was “strong-armed” into filing for bankruptcy protection by its main law firm, Sullivan & Cromwell, a claim the firm denies.

    Bankman-Fried has also frequently taken issue with decisions made by FTX’s new CEO, John Ray. Bankman-Fried has often claimed that FTX’s U.S. operation, which was considerably smaller than the international operations, was solvent at the time of the bankruptcy filing, a contention that Ray disputes.

    “I’m still waiting for him to finally admit that FTX US is solvent and give customers their money back,” Bankman-Fried tweeted on Jan. 19.

    Bankman-Fried was scheduled to testify under oath in front of Congress in December with Ray, but that appearance was cancelled because of his arrest in the Bahamas, where FTX is based.

    “The real risk Bankman-Fried runs in making public comments ‘explaining’ what happened is they could be seen as continuing efforts to mislead investors by regulators and prosecutors,” said Jeff Linehan, a former prosecutor in the financial crimes division of the New York State Attorney General’s Office. Linehan is now a criminal defense attorney.

    Bankman-Fried’s comments at the time of FTX’s collapse could also come back to haunt him. On Nov. 7, as customers furiously demanded their money back, he tweeted “FTX is fine. Assets are fine.” He deleted the tweet the next day. On Nov. 11, FTX filed Chapter 11.

    Through a spokesman, Bankman-Fried decline to comment for this article.

    Some defendants will go through their entire legal ordeal without saying anything that isn’t first cleared by their attorneys. Even putting defendants on the witness stand at trial has long been seen by defense attorneys as a last-resort option because it opens them up to interrogation by prosecutors and often does more harm than good.

    “As the prosecution prepares their case, it’s really important to figure out what the defense’s strategy could be, and a defense wants to keep that strategy under wraps as much as possible,” said Alonso, the former federal prosecutor.

    Bankman-Fried faces the possibility of decades in prison if convicted on all counts. Even if he were to agree to a plea bargain, a judge would have full discretion on what sentence to impose. If the judge does not believe Bankman-Fried is truly sorry for his actions, based partly on his public statements, he could ignore the prosecution’s recommendations and imposing a stricter sentence, legal experts say.

    Before FTX collapsed, Bankman-Fried had built up a gigantic public persona. He spoke often to reporters, testified in front of Congress, and appeared at conferences to advocate for cryptocurrencies and his firm. He gave millions of dollars to political candidates and advocated for charitable causes such as food issues in the Bahamas. It could be difficult to give up that sort of public influence.

    “Some people simply can’t help themselves,” Alonso said.

    _____

    AP Reporter Larry Neumeister contributed to this report from New York.

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  • New York’s Best New Building Is The Last New Building In Brooklyn Heights

    New York’s Best New Building Is The Last New Building In Brooklyn Heights

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    Quay Tower is a magnificent new residential building situated directly on the Brooklyn waterfront and rising thirty stories. Its position directly across the water from the southern tip of Manhattan makes for spectacular harbor and city views. Together with the building’s amenities, they create a hotly-desired living experience. Everyone wants gorgeous sunset views, waterfront locations, walking-friendly neighborhoods, park and recreational spaces and a place to store bicycles, play music or to socialize with the neighbors. That mixture of location and ease of living can be at its best in New York City, but it is not easy to find.

    It is also increasingly rare. In fact, Quay Tower, located at 50 Brooklyn Bridge Park Drive, on the Brooklyn Bridge Park waterfront, is the last new building it is possible to construct in Brooklyn Heights.

    For the past 15 years, New York City has made waterfront development a priority, seeking to develop former industrial waterfront land that is no longer used to service the shipbuilding and marine companies that once thrived in Brooklyn and Manhattan.

    “The 95 acres that we built Quay Tower on was all Port Authority piers,” says Robert Levine, the chairman of RAL Companies, developer of the building. “Those piers were active until 25 years ago. We started this project around 2005 or 6; we knew it could be a spectacular place to call home.”

    Seen from Quay Tower, the piers are a strong reminder of the area’s history. One is home to a collection of soccer fields, another has garden plantings and paths. Between them is a marina. All are managed by the Brooklyn Bridge Park Conservancy.

    “They said, before we began, that they would manage the facilities if they were self-funded,” Levine says. “We developed them as part of building the tower and then turned them over to the Brooklyn Bridge Park Conservancy for perpetual use.”

    RAL Companies, founded in 1979, started as an architecture and design firm.

    “We segued into land development and have done everything in high-end hospitality and rental construction in the United States and the Caribbean,” Levine explains in a personal interview.

    This history enabled Levine and his company to go through the grueling rounds of approvals required from zoning boards and the New York City Department of Parks & Recreation, which has played an increasingly large role in dictating how new construction sites connect with public land. Levine and RAL Companies considered resiliency during flooding and setbacks from the waterfront, ever more important as the climate becomes more threatening and unpredictable.

    “For anyone developing real estate in New York, Hurricane Sandy was a major wake-up call,” Levine says.

    The pre-building process was arduous: careful negotiations regarding land use, connection to the park, enhancing the park, retail tenants, land leases, and more, took years.

    Considering the hurdles, RAL Companies and Oliver’s Realty Group’s success in developing a record-setting building is extraordinary. In 2022, a year when macro headwinds put massive downward pressure on the luxury market, Quay Tower sold $98 million of inventory; six deals were entirely cash transfers. Only a handful of units remain available.

    It’s easy to predict that they won’t stay on the market for long.

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    Regina Cole, Contributor

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  • Former Manhattan attorney says ‘many bits and pieces of evidence’ exist to charge Trump | CNN Politics

    Former Manhattan attorney says ‘many bits and pieces of evidence’ exist to charge Trump | CNN Politics

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    CNN
     — 

    A former Manhattan special assistant district attorney who investigated Donald Trump said Sunday night there are “many bits and pieces of evidence” the district attorney could use to bring criminal charges against the former president.

    Mark Pomerantz, a former senior prosecutor on the Manhattan DA’s team investigating Trump and his organization’s business dealings, said prosecutors weighing similar evidence against anyone other than the former president would have moved ahead with charges in a “flat second.”

    Pomerantz made the comments in a “60 Minutes” interview promoting a new book about his time investigating Trump. He pointed to evidence he had access to during the investigation – principal among them, that Trump personally signed off on inflating his own net worth to obtain more favorable banks loans.

    “There were many bits and pieces of evidence on which we could rely in making that case,” Pomerantz told CBS’s Bill Whitaker.

    New York Attorney General Letitia James, a Democrat, filed a civil lawsuit against Trump, his eldest children and others alleging they were engaged in a decade long fraud by using inaccurate financial statements to obtain favorable loan and insurance rates and tax treatment. The burden of proof in a civil lawsuit is lower than what prosecutors need to prove a criminal case. Trump has called the lawsuit politically motivated and has denied any wrongdoing.

    The allegations come nearly a year after Pomerantz resigned from the DA’s office in protest and days before the release of his new book, which has prompted pushback from District Attorney Alvin Bragg.

    Pomerantz resigned after Bragg, who was newly sworn into office, refused to give him a green light to seek an indictment against Trump. The district attorney’s office previously brought tax fraud charges against the Trump Organization and chief financial officer Allen Weisselberg, who pleaded guilty.

    Pomerantz resigned last February along with general counsel Carey Dunne.

    “If you take the exact same conduct – and make it not about Donald Trump and not about a former president of the United States, would the case have been indicted? It would have been indicted in a flat second,” Pomerantz said Sunday. He called Bragg’s decision not to bring the case a “grave failure of justice.”

    Pomerantz’s claims detailed in his forthcoming book have drawn the ire of his former boss and the DA’s Association of the State of New York, who claim that a former prosecutor speaking out about a case he used to be a part of could damage its integrity.

    Bragg’s office asked to review the book before its publication out of concern it would reveal information obtained from a grand jury. Simon & Schuster, the publisher, moved ahead with publication.

    “After closely reviewing all the evidence from Mr. Pomerantz’s investigation, I came to the same conclusion as several senior prosecutors involved in the case, and also those I brought on: more work was needed. Put another way, Mr. Pomerantz’s plane wasn’t ready for takeoff,” Bragg said in a statement to CNN.

    Bragg added that he hasn’t “read the book, and won’t comment on any ongoing investigation because of the harm it could cause to the case. But I do hope there is at least one section where Mr. Pomerantz recognizes his former colleagues for how much they have achieved on the Trump matter over the last year since his departure.”

    In January, a New York judge fined the Trump Organization $1.6 million – the maximum possible penalty – for running a decade-long tax fraud scheme, a symbolic moment because it is the only judgment for a criminal conviction that has come close to the former president.

    Two Trump entities, The Trump Corp. and Trump Payroll Corp., were convicted last year of 17 felonies, including tax fraud and falsifying business records. Trump himself was never charged or convicted.

    On Sunday Pomerantz expanded on what evidence he believes they had against Trump, including Trump’s signature on a Deutsche Bank loan certifying that all of his financial statements were accurate.

    “He warrants that the financial statements are true and correct in all material respects. Finally of course on the guaranty is his sharpie signature, Donald J. Trump,” Pomerantz said. He also alleges he has documents proving Trump knew the accurate size of his 10,996-square-foot Fifth Avenue condominium, but lied anyways, claiming in 2015 and 2016 accounting documents that it was really 30,000 square feet.

    CNN previously reported that some prosecutors did not believe they had enough evidence to prove Trump’s intent and they lacked a credible narrator to explain how the financial statements were put together.

    In a letter to Pomerantz, Trump’s lawyer threatened legal action against the former prosecutor if he releases the book. The lawyer, Joe Tacopina, told CNN in a statement that Pomerantz’s “desperate attempt to sell books will cost him everything. Not to mention, it is clear that he was very much in the minority in his position that President Trump committed a crime.”

    In the book, which publishes on Tuesday, Pomerantz compares Trump to John Gotti, the head of the Gambino organized crime family, according to an advanced copy obtained by The New York Times, and lays out the complicated investigation that saw many close to the former president charged with crimes.

    Meanwhile, Bragg’s office last week accelerated its investigation into Trump’s alleged role in a hush money payment made to silence adult film star Stormy Daniel’s allegations of an affair. Trump has denied the affair.

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  • Cohen says he handed over phones to Manhattan DA | CNN Politics

    Cohen says he handed over phones to Manhattan DA | CNN Politics

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    Washington
    CNN
     — 

    Michael Cohen, former President Donald Trump’s former attorney, has handed over his cell phones to Manhattan prosecutors, he told “CNN This Morning” on Wednesday.

    Prosecutors are zeroing in on the Trump Organization’s involvement in hush-money payments made to adult film star Stormy Daniels as part of an effort to stop her from going public about an alleged affair with Trump days before the 2016 presidential election. A grand jury in New York has been convened to hear evidence related to the effort, sources familiar with the matter have told CNN.

    Cohen met last month with the Manhattan district attorney’s office. Trump has denied the affair.

    CNN has reported that former National Enquirer publisher David Pecker was set to meet with prosecutors this week as part of the probe. The district attorney’s office also reached out to Keith Davidson, who represented Daniels in the hush money deal, in recent weeks.

    Manhattan prosecutors are looking into whether Trump and his business falsified business records by improperly treating the reimbursement as a legal expense. That charge is a misdemeanor in New York unless it can be tied to another crime, such as campaign finance laws.

    Prosecutors working under the previous DA, Cy Vance, had explored bringing charges related to the hush money scheme but some attorneys on the team were not convinced that a charge involving a federal election law violation would survive legal challenges, people familiar with the investigation told CNN.

    Last year, a jury convicted two Trump Organization entities of a decade-long tax fraud scheme, which appears to have emboldened prosecutors.

    This story is breaking and will be updated.

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  • Light at the end of the tunnel: Grand Central annex opens

    Light at the end of the tunnel: Grand Central annex opens

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    NEW YORK (AP) — For decades, work on a massive rail project has been grinding 15 stories below the shuffling footsteps of millions of New Yorkers and beneath the East Hudson River and Manhattan skyscrapers.

    After years of delays and massive cost overruns, the enormously expensive railway project shuttled its first passengers Wednesday from Long Island to a new annex in New York City’s iconic Grand Central Terminal.

    The new transit center, built inside a massive man-made cavern and served by rail tunnels carved through bedrock, is being heralded as an important addition to the nation’s busiest railway network.

    “We got the job done,” Gov. Kathy Hochul said, the ninth governor to oversee the project that had its genesis six decades ago. “There were so many roadblocks and challenges and detours along the way.”

    The new 700,000-square-foot (65,032-square-meter) terminal, dubbed Grand Central Madison, was conceived and constructed at a time when New York City’s transportation system was bursting with passengers. It opens in a different era, with ridership still significantly down from where it was before the COVID-19 pandemic ushered in a new era of remote work.

    The new terminal, adorned with colorful mosaics and replete with storefronts and restaurants — most still empty — is the country’s largest new railway station in nearly seven decades and the most significant expansion over the last century of the Long Island Rail Road, the busiest commuter railroad in North America. The two-level concourse supports four platforms and eight tracks.

    Much of the construction of the terminal has been complete for months, though some finishing touches won’t be complete for another few weeks, officials acknowledged.

    The station was to have opened by the end of 2022 but was delayed slightly by issues with heating, ventilation and air conditioning. For Long Island commuters headed for Manhattan, the terminal’s key benefit is the ability to take a train directly to the East Side, where previously the only option was to go to Pennsylvania Station on the West Side, then travel back by subway or bus.

    “I’ve been waiting for 30 years,” said John Cannon, a Long Island man who was on the inaugural 21-minute ride from Jamaica, Queens, to Manhattan. “I don’t have to take the subways anymore.”

    Passenger Alexander Rodriguez, a 15-year-old Queens resident, described the inaugural ride as “nice and smooth.”

    “And it was fun,” he said. “It was the first train. It’s a once in a lifetime thing.”

    Many of the subterranean tunnels that carry rail passengers below the Hudson River are more than a century old, some of which are in need of deeper maintenance. The new tunnels built for the project will also allow Amtrak to temporarily divert its trains to the new tunnels so it can begin refurbishing aging eastside tunnels and tracks.

    For decades, the project kept chugging along, even amid concerns about ballooning costs. Construction began in the 1960s, but was abandoned for a time because of a series of economic crises.

    Spending on the massive construction project has grown to more than $11 billion — more than triple the initial estimate of $3.5 billion two decades ago. The project bore through 2 miles (3.2 kilometers) of bedrock; per mile, it would be one of the world’s most expensive rail projects ever completed.

    “It’s a useful project. But for $11 billion, it would be better not to have built it,” said Alon Levy, a transportation fellow at New York University’s Marron Institute, who has been compiling railway cost data from around the world.

    The money, he argues, could have been used for other transportation projects, including improving capacity for existing railway lines.

    Officials have acknowledged that engineering costs and the high price of New York City labor contributed to spiraling expenses.

    “This is not a small project. This is one of the greatest engineering feats. And it’s a tribute to the MTA that they were able to overcome what I would say was some delays of bureaucracy, delays of engineering,” said Mitchell Moss, a professor of urban policy and planning at New York University.

    Despite the setbacks, Tom Wright, the president of the Regional Plan Association, hailed Wednesday’s opening as a “driver of economic growth and prosperity,” even as the region “still faces urgent transportation, housing and resiliency challenges.”

    “Because this region has an interconnected network of transit, when you make an improvement, the beneficiaries are actually systemwide,” said Wright, whose nonprofit develops and advocates for ways to improve the regional economy, environment and quality of life.

    Over the past week, the Long Island Rail Road carried about 1 million riders, or about two-thirds the number it transported for roughly the same week in 2019, according to statistics compiled by the Metropolitan Transportation Authority.

    When full service begins to Grand Central Madison, the LIRR will add another 269 trains per weekday on top of the roughly 660 trains already in operation, officials said. About 160,000 passengers are expected to hop on and off platforms at the new terminal.

    Coupled with expanded service to Penn Station, the link to Grand Central would allow rail stops to open along long-neglected parts of the city, including the Bronx, spur new housing developments and serve as an economic engine.

    “It obviously makes the businesses in Midtown East a more attractive destination for commuters from Long Island,” said Kathryn Wylde, the president of the Partnership for New York City.

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