Wednesday

Trump Engaged in Suspect Tax Schemes as He Reaped Riches From His Father

The president has long sold himself as a self-made billionaire, but a Times investigation found that he received at least $413 million in today’s dollars from his father’s real estate empire, much of it through tax dodges in the 1990s.


President Trump participated in dubious tax schemes during the 1990s, including instances of outright fraud, that greatly increased the fortune he received from his parents, an investigation by The New York Times has found.
Mr. Trump won the presidency proclaiming himself a self-made billionaire, and he has long insisted that his father, the legendary New York City builder Fred C. Trump, provided almost no financial help.
But The Times’s investigation, based on a vast trove of confidential tax returns and financial records, reveals that Mr. Trump received the equivalent today of at least $413 million from his father’s real estate empire, starting when he was a toddler and continuing to this day.
Much of this money came to Mr. Trump because he helped his parents dodge taxes. He and his siblings set up a sham corporation to disguise millions of dollars in gifts from their parents, records and interviews show. Records indicate that Mr. Trump helped his father take improper tax deductions worth millions more. He also helped formulate a strategy to undervalue his parents’ real estate holdings by hundreds of millions of dollars on tax returns, sharply reducing the tax bill when those properties were transferred to him and his siblings.
These maneuvers met with little resistance from the Internal Revenue Service, The Times found. The president’s parents, Fred and Mary Trump, transferred well over $1 billion in wealth to their children, which could have produced a tax bill of at least $550 million under the 55 percent tax rate then imposed on gifts and inheritances.
The Trumps paid a total of $52.2 million, or about 5 percent, tax records show.
The president declined repeated requests over several weeks to comment for this article. But a lawyer for Mr. Trump, Charles J. Harder, provided a written statement on Monday, one day after The Times sent a detailed description of its findings. “The New York Times’s allegations of fraud and tax evasion are 100 percent false, and highly defamatory,” Mr. Harder said. “There was no fraud or tax evasion by anyone. The facts upon which The Times bases its false allegations are extremely inaccurate.”
Mr. Harder sought to distance Mr. Trump from the tax strategies used by his family, saying the president had delegated those tasks to relatives and tax professionals. “President Trump had virtually no involvement whatsoever with these matters,” he said. “The affairs were handled by other Trump family members who were not experts themselves and therefore relied entirely upon the aforementioned licensed professionals to ensure full compliance with the law.”
The president’s brother, Robert Trump, issued a statement on behalf of the Trump family:
“Our dear father, Fred C. Trump, passed away in June 1999. Our beloved mother, Mary Anne Trump, passed away in August 2000. All appropriate gift and estate tax returns were filed, and the required taxes were paid. Our father’s estate was closed in 2001 by both the Internal Revenue Service and the New York State tax authorities, and our mother’s estate was closed in 2004. Our family has no other comment on these matters that happened some 20 years ago, and would appreciate your respecting the privacy of our deceased parents, may God rest their souls.”
The Times’s findings raise new questions about Mr. Trump’s refusal to release his income tax returns, breaking with decades of practice by past presidents. According to tax experts, it is unlikely that Mr. Trump would be vulnerable to criminal prosecution for helping his parents evade taxes, because the acts happened too long ago and are past the statute of limitations. There is no time limit, however, on civil fines for tax fraud.
The findings are based on interviews with Fred Trump’s former employees and advisers and more than 100,000 pages of documents describing the inner workings and immense profitability of his empire. They include documents culled from public sources — mortgages and deeds, probate records, financial disclosure reports, regulatory records and civil court files.
The investigation also draws on tens of thousands of pages of confidential records — bank statements, financial audits, accounting ledgers, cash disbursement reports, invoices and canceled checks. Most notably, the documents include more than 200 tax returns from Fred Trump, his companies and various Trump partnerships and trusts. While the records do not include the president’s personal tax returns and reveal little about his recent business dealings at home and abroad, dozens of corporate, partnership and trust tax returns offer the first public accounting of the income he received for decades from various family enterprises.
What emerges from this body of evidence is a financial biography of the 45th president fundamentally at odds with the story Mr. Trump has sold in his books, his TV shows and his political life. In Mr. Trump’s version of how he got rich, he was the master dealmaker who broke free of his father’s “tiny” outer-borough operation and parlayed a single $1 million loan from his father (“I had to pay him back with interest!”) into a $10 billion empire that would slap the Trump name on hotels, high-rises, casinos, airlines and golf courses the world over. In Mr. Trump’s version, it was always his guts and gumption that overcame setbacks. Fred Trump was simply a cheerleader.
“I built what I built myself,” Mr. Trump has said, a narrative that was long amplified by often-credulous coverage from news organizations, including The Times.
Certainly a handful of journalists and biographers, notably Wayne Barrett, Gwenda Blair, David Cay Johnston and Timothy L. O’Brien, have challenged this story, especially the claim of being worth $10 billion. They described how Mr. Trump piggybacked off his father’s banking connections to gain a foothold in Manhattan real estate. They poked holes in his go-to talking point about the $1 million loan, citing evidence that he actually got $14 million. They told how Fred Trump once helped his son make a bond payment on an Atlantic City casino by buying $3.5 million in casino chips.
But The Times’s investigation of the Trump family’s finances is unprecedented in scope and precision, offering the first comprehensive look at the inherited fortune and tax dodges that guaranteed Donald J. Trump a gilded life. The reporting makes clear that in every era of Mr. Trump’s life, his finances were deeply intertwined with, and dependent on, his father’s wealth.

By age 3, Mr. Trump was earning $200,000 a year in today’s dollars from his father’s empire. He was a millionaire by age 8. By the time he was 17, his father had given him part ownership of a 52-unit apartment building. Soon after Mr. Trump graduated from college, he was receiving the equivalent of $1 million a year from his father. The money increased with the years, to more than $5 million annually in his 40s and 50s.
Fred Trump’s real estate empire was not just scores of apartment buildings. It was also a mountain of cash, tens of millions of dollars in profits building up inside his businesses, banking records show. In one six-year span, from 1988 through 1993, Fred Trump reported $109.7 million in total income, now equivalent to $210.7 million. It was not unusual for tens of millions in Treasury bills and certificates of deposit to flow through his personal bank accounts each month.
Fred Trump was relentless and creative in finding ways to channel this wealth to his children. He made Donald not just his salaried employee but also his property manager, landlord, banker and consultant. He gave him loan after loan, many never repaid. He provided money for his car, money for his employees, money to buy stocks, money for his first Manhattan offices and money to renovate those offices. He gave him three trust funds. He gave him shares in multiple partnerships. He gave him $10,000 Christmas checks. He gave him laundry revenue from his buildings.
Much of his giving was structured to sidestep gift and inheritance taxes using methods tax experts described to The Times as improper or possibly illegal. Although Fred Trump became wealthy with help from federal housing subsidies, he insisted that it was manifestly unfair for the government to tax his fortune as it passed to his children. When he was in his 80s and beginning to slide into dementia, evading gift and estate taxes became a family affair, with Donald Trump playing a crucial role, interviews and newly obtained documents show.
The line between legal tax avoidance and illegal tax evasion is often murky, and it is constantly being stretched by inventive tax lawyers. There is no shortage of clever tax avoidance tricks that have been blessed by either the courts or the I.R.S. itself. The richest Americans almost never pay anything close to full freight. But tax experts briefed on The Times’s findings said the Trumps appeared to have done more than exploit legal loopholes. They said the conduct described here represented a pattern of deception and obfuscation, particularly about the value of Fred Trump’s real estate, that repeatedly prevented the I.R.S. from taxing large transfers of wealth to his children.
“The theme I see here through all of this is valuations: They play around with valuations in extreme ways,” said Lee-Ford Tritt, a University of Florida law professor and a leading expert in gift and estate tax law. “There are dramatic fluctuations depending on their purpose.”
The manipulation of values to evade taxes was central to one of the most important financial events in Donald Trump’s life. In an episode never before revealed, Mr. Trump and his siblings gained ownership of most of their father’s empire on Nov. 22, 1997, a year and a half before Fred Trump’s death. Critical to the complex transaction was the value put on the real estate. The lower its value, the lower the gift taxes. The Trumps dodged hundreds of millions in gift taxes by submitting tax returns that grossly undervalued the properties, claiming they were worth just $41.4 million.
The same set of buildings would be sold off over the next decade for more than 16 times that amount.
The most overt fraud was All County Building Supply & Maintenance, a company formed by the Trump family in 1992. All County’s ostensible purpose was to be the purchasing agent for Fred Trump’s buildings, buying everything from boilers to cleaning supplies. It did no such thing, records and interviews show. Instead All County siphoned millions of dollars from Fred Trump’s empire by simply marking up purchases already made by his employees. Those millions, effectively untaxed gifts, then flowed to All County’s owners — Donald Trump, his siblings and a cousin. Fred Trump then used the padded All County receipts to justify bigger rent increases for thousands of tenants.
After this article was published on Tuesday, a spokesman for the New York State Department of Taxation and Finance said the agency was “reviewing the allegations” and “vigorously pursuing all appropriate areas of investigation.”
All told, The Times documented 295 streams of revenue that Fred Trump created over five decades to enrich his son. In most cases his four other children benefited equally. But over time, as Donald Trump careened from one financial disaster to the next, his father found ways to give him substantially more money, records show. Even so, in 1990, according to previously secret depositions, Mr. Trump tried to have his father’s will rewritten in a way that Fred Trump, alarmed and angered, feared could result in his empire’s being used to bail out his son’s failing businesses.
Of course, the story of how Donald Trump got rich cannot be reduced to handouts from his father. Before he became president, his singular achievement was building the brand of Donald J. Trump, Self-Made Billionaire, a brand so potent it generated hundreds of millions of dollars in revenue through TV shows, books and licensing deals.
Constructing that image required more than Fred Trump’s money. Just as important were his son’s preternatural marketing skills and always-be-closing competitive hustle. While Fred Trump helped finance the accouterments of wealth, Donald Trump, master self-promoter, spun them into a seductive narrative. Fred Trump’s money, for example, helped build Trump Tower, the talisman of privilege that established his son as a major player in New York. But Donald Trump recognized and exploited the iconic power of Trump Tower as a primary stage for both “The Apprentice” and his presidential campaign.
The biggest payday he ever got from his father came long after Fred Trump’s death. It happened quietly, without the usual Trumpian news conference, on May 4, 2004, when Mr. Trump and his siblings sold off the empire their father had spent 70 years assembling with the dream that it would never leave his family.
Donald Trump’s cut: $177.3 million, or $236.2 million in today’s dollars.

‘One-Man Building Show’

Early experience, cultivated connections and a wave of federal housing subsidies helped Fred Trump lay the foundation of his son’s wealth.


Before he turned 20, Fred Trump had already built and sold his first home. At age 35, he was building hundreds of houses a year in Brooklyn and Queens. By 45, he was building some of the biggest apartment complexes in the country.
Aside from an astonishing work ethic — “Sleeping is a waste of time,” he liked to say — the growth reflected his shrewd application of mass-production techniques. The Brooklyn Daily Eagle called him “the Henry Ford of the home-building industry.” He would erect scaffolding a city block long so his masons, sometimes working a second shift under floodlights, could throw up a dozen rowhouses in a week. They sold for about $115,000 in today’s dollars.
By 1940, American Builder magazine was taking notice, devoting a spread to Fred Trump under the headline “Biggest One-Man Building Show.” The article described a swaggering lone-wolf character who paid for everything — wages, supplies, land — from a thick wad of cash he carried at all times, and whose only help was a secretary answering the phone in an office barely bigger than a parking space. “He is his own purchasing agent, cashier, paymaster, building superintendent, construction engineer and sales director,” the article said.
It wasn’t that simple. Fred Trump had also spent years ingratiating himself with Brooklyn’s Democratic machine, giving money, doing favors and making the sort of friends (like Abraham D. Beame, a future mayor) who could make life easier for a developer. He had also assembled a phalanx of plugged-in real estate lawyers, property appraisers and tax accountants who protected his interests.
All these traits — deep experience, nimbleness, connections, a relentless focus on the efficient construction of homes for the middle class — positioned him perfectly to ride a growing wave of federal spending on housing. The wave took shape with the New Deal, grew during the World War II rush to build military housing and crested with the postwar imperative to provide homes for returning G.I.s. Fred Trump would become a millionaire many times over by making himself one of the nation’s largest recipients of cheap government-backed building loans, according to Gwenda Blair’s book “The Trumps: Three Generations of Builders and a President.”
Those same loans became the wellspring of Donald Trump’s wealth. In the late 1940s, Fred Trump obtained roughly $26 million in federal loans to build two of his largest developments, Beach Haven Apartments, near Coney Island, Brooklyn, and Shore Haven Apartments, a few miles away. Then he set about making his children his landlords.

As ground lease payments fattened his children’s trusts, Fred Trump embarked on a far bigger transfer of wealth. Records obtained by The Times reveal how he began to build or buy apartment buildings in Brooklyn and Queens and then gradually, without public trace, transfer ownership to his children through a web of partnerships and corporations. In all, Fred Trump put up nearly $13 million in cash and mortgage debt to create a mini-empire within his empire — eight buildings with 1,032 apartments — that he would transfer to his children.
The handover began just before Donald Trump’s 16th birthday. On June 1, 1962, Fred Trump transferred a plot of land in Queens to a newly created corporation. While he would be its president, his children would be its owners, records show. Then he constructed a 52-unit building called Clyde Hall.
It was easy money for the Trump children. Their father took care of everything. He bought the land, built the apartments and obtained the mortgages. His employees managed the building. The profits, meanwhile, went to his children. By the early 1970s, Fred Trump would execute similar transfers of the other seven buildings.

For Donald Trump, this meant a rapidly growing new source of income. When he was in high school, his cut of the profits was about $17,000 a year in today’s dollars. His share exceeded $300,000 a year soon after he graduated from college.
How Fred Trump transferred 1,032 apartments to his children without incurring hundreds of thousands of dollars in gift taxes is unclear. A review of property records for the eight buildings turned up no evidence that his children bought them outright. Financial records obtained by The Times reveal only that all of the shares in the partnerships and corporations set up to create the mini-empire shifted at some point from Fred Trump to his children. Yet his tax returns show he paid no gift taxes on seven of the buildings, and only a few thousand dollars on the eighth.
That building, Sunnyside Towers, a 158-unit property in Queens, illustrates Fred Trump’s catch-me-if-you-can approach with the I.R.S., which had repeatedly cited him for underpaying taxes in the 1950s and 1960s.

Sunnyside was bought for $2.5 million in 1968 by Midland Associates, a partnership Fred Trump formed with his children for the transaction. In his 1969 tax return, he reported giving each child 15 percent of Midland Associates. Based on the amount of cash put up to buy Sunnyside, the value of this gift should have been $93,750. Instead, he declared a gift of only $6,516.

Donald Trump went to work for his father after graduating from the University of Pennsylvania in 1968. His father made him vice president of dozens of companies. This was also the moment Fred Trump telegraphed what had become painfully obvious to his family and employees: He did not consider his eldest son, Fred Trump Jr., a viable heir apparent.
Fred Jr., seven and a half years older than Donald, had also worked for his father after college. It did not go well, relatives and former employees said in interviews. Fred Trump openly ridiculed him for being too nice, too soft, too lazy, too fond of drink. He frowned on his interests in flying and music, could not fathom why he cared so little for the family business. Donald, witness to his father’s deepening disappointment, fashioned himself Fred Jr.’s opposite — the brash tough guy with a killer instinct. His reward was to inherit his father’s dynastic dreams.

Fred Trump began taking steps that enriched Donald alone, introducing him to the charms of building with cheap government loans. In 1972, father and son formed a partnership to build a high-rise for the elderly in East Orange, N.J. Thanks to government subsidies, the partnership got a nearly interest-free $7.8 million loan that covered 90 percent of construction costs. Fred Trump paid the rest.
But his son received most of the financial benefits, records show. On top of profit distributions and consulting fees, Donald Trump was paid to manage the building, though Fred Trump’s employees handled day-to-day management. He also pocketed what tenants paid to rent air-conditioners. By 1975, Donald Trump’s take from the building was today’s equivalent of nearly $305,000 a year.
Fred Trump also gave his son an extra boost through his investment, in the early 1970s, in the sprawling Starrett City development in Brooklyn, the largest federally subsidized housing project in the nation. The investment, which promised to generate huge tax write-offs, was tailor-made for Fred Trump; he would use Starrett City’s losses to avoid taxes on profits from his empire.
Fred Trump invested $5 million. A separate partnership established for his children invested $1 million more, showering tax breaks on the Trump children for decades to come. They helped Donald Trump avoid paying any federal income taxes at all in 1978 and 1979. But Fred Trump also deputized him to sell a sliver of his Starrett City shares, a sweetheart deal that generated today’s equivalent of more than $1 million in “consulting fees.”
The money from consulting and management fees, ground leases, the mini-empire and his salary all combined to make Donald Trump indisputably wealthy years before he sold his first Manhattan apartment. By 1975, when he was 29, he had collected nearly $9 million in today’s dollars from his father, The Times found.
Wealthy, yes. But a far cry from the image father and son craved for Donald Trump.

The Silent Partner

Fred Trump would play a crucial role in building and carefully maintaining the myth of Donald J. Trump, Self-Made Billionaire.


“He is tall, lean and blond, with dazzling white teeth, and he looks ever so much like Robert Redford. He rides around town in a chauffeured silver Cadillac with his initials, DJT, on the plates. He dates slinky fashion models, belongs to the most elegant clubs and, at only 30 years of age, estimates that he is worth ‘more than $200 million.’”
So began a Nov. 1, 1976, article in The Times, one of the first major profiles of Donald Trump and a cornerstone of decades of mythmaking about his wealth. How could he claim to be worth more than $200 million when, as he divulged years later to casino regulators, his 1976 taxable income was $24,594? Donald Trump simply appropriated his father’s entire empire as his own.
In the chauffeured Cadillac, Donald Trump took The Times’s reporter on a tour of what he called his “jobs.” He told her about the Manhattan hotel he planned to convert into a Grand Hyatt (his father guaranteed the construction loan), and the Hudson River railroad yards he planned to develop (the rights were purchased by his father’s company). He showed her “our philanthropic endeavor,” the high-rise for the elderly in East Orange (bankrolled by his father), and an apartment complex on Staten Island (owned by his father), and their “flagship,” Trump Village, in Brooklyn (owned by his father), and finally Beach Haven Apartments (owned by his father). Even the Cadillac was leased by his father.
“So far,” he boasted, “I’ve never made a bad deal.”
It was a spectacular con, right down to the priceless moment when Mr. Trump confessed that he was “publicity shy.” By claiming his father’s wealth as his own, Donald Trump transformed his place in the world. A brash 30-year-old playboy worth more than $200 million proved irresistible to New York City’s bankers, politicians and journalists.
Yet for all the spin about cutting his own path in Manhattan, Donald Trump was increasingly dependent on his father. Weeks after The Times’s profile ran, Fred Trump set up still more trusts for his children, seeding each with today’s equivalent of $4.3 million. Even into the early 1980s, when he was already proclaiming himself one of America’s richest men, Donald Trump remained on his father’s payroll, drawing an annual salary of $260,000 in today’s dollars.
Meanwhile, Fred Trump and his companies also began extending large loans and lines of credit to Donald Trump. Those loans dwarfed what the other Trumps got, the flow so constant at times that it was as if Donald Trump had his own Money Store. Consider 1979, when he borrowed

1.5 million in January, $65,000 in February, $122,000 in March, $150,000 in April, $192,000 in May, $226,000 in June, $2.4 million in July and $40,000 in August, according to records filed with New Jersey casino regulators.
In theory, the money had to be repaid. In practice, records show, many of the loans were more like gifts. Some were interest-free and had no repayment schedule. Even when loans charged interest, Donald Trump frequently skipped payments.

This previously unreported flood of loans highlights a clear pattern to Fred Trump’s largess. When Donald Trump began expensive new projects, his father increased his help. In the late 1970s, when Donald Trump was converting the old Commodore Hotel into a Grand Hyatt, his father stepped up with a spigot of loans. Fred Trump did the same with Trump Tower in the early 1980s.
In the mid-1980s, as Donald Trump made his first forays into Atlantic City, Fred Trump devised a plan that sharply increased the flow of money to his son.
The plan involved the mini-empire — the eight buildings Fred Trump had transferred to his children. He converted seven of them into cooperatives, and helped his children convert the eighth. That meant inviting tenants to buy their apartments, generating a three-way windfall for Donald Trump and his siblings: from selling units, from renting unsold units and from collecting mortgage payments.

In 1982, Donald Trump made today’s equivalent of about $380,000 from the eight buildings. As the conversions continued and Fred Trump’s employees sold off more units, his son’s share of profits jumped, records show. By 1987, with the conversions completed, his son was making today’s equivalent of $4.5 million a year off the eight buildings.
Fred Trump made one other structural change to his empire that produced a big new source of revenue for Donald Trump and his siblings. He made them his bankers.

The Times could find no evidence that the Trump children had to come up with money of their own to buy their father’s mortgages. Most were purchased from Fred Trump’s banks by trusts and partnerships that he set up and seeded with money.
Co-op sales, mortgage payments, ground leases — Fred Trump was a master at finding ways to enrich his children in general and Donald Trump in particular. Some ways were like slow-moving creeks. Others were rushing streams. A few were geysers. But as the decades passed they all joined into one mighty river of money. By 1990, The Times found, Fred Trump, the ultimate silent partner, had quietly transferred today’s equivalent of at least $46.2 million to his son.
Donald Trump took on a mien of invincibility. The stock market crashed in 1987 and the economy cratered. But he doubled down thanks in part to Fred Trump’s banks, which eagerly extended credit to the young Trump princeling. He bought the Plaza Hotel in 1988 for $407.5 million. He bought Eastern Airlines in 1989 for $365 million and called it Trump Shuttle. His newest casino, the Trump Taj Mahal, would need at least $1 million a day just to cover its debt.
The skeptics who questioned the wisdom of this debt-fueled spending spree were drowned out by one magazine cover after another marveling at someone so young taking such breathtaking risks. But whatever Donald Trump was gambling, not for one second was he at risk of losing out on a lifetime of frictionless, effortless wealth. Fred Trump had that bet covered.



The Safety Net Deploys

Bailouts, collateral, cash on hand — Fred Trump was prepared, and was not about to let bad bets sink his son.



As the 1980s ended, Donald Trump’s big bets began to go bust. Trump Shuttle was failing to make loan payments within 15 months. The Plaza, drowning in debt, was bankrupt in four years. His Atlantic City casinos, also drowning in debt, tumbled one by one into bankruptcy.
What didn’t fail was the Trump safety net. Just as Donald Trump’s finances were crumbling, family partnerships and companies dramatically increased distributions to him and his siblings. Between 1989 and 1992, tax records show, four entities created by Fred Trump to support his children paid Donald Trump today’s equivalent of $8.3 million.
Fred Trump’s generosity also provided a crucial backstop when his son pleaded with bankers in 1990 for an emergency line of credit. With so many of his projects losing money, Donald Trump had few viable assets of his own making to pledge as collateral. What has never been publicly known is that he used his stakes in the mini-empire and the high-rise for the elderly in East Orange as collateral to help secure a $65 million loan.


Tax records also reveal that at the peak of Mr. Trump’s financial distress, his father extracted extraordinary sums from his empire. In 1990, Fred Trump’s income

 

 exploded to $49,638,928 — several times what he paid himself in other years in that era.
Fred Trump, former employees say, detested taking unnecessary distributions from his companies because he would have to pay income taxes on them. So why would a penny-pinching, tax-hating 85-year-old in the twilight of his career abruptly pull so much money out of his cherished properties, incurring a tax bill of $12.2 million?
The Times found no evidence that Fred Trump made any significant debt payments or charitable donations. The frugality he brought to business carried over to the rest of his life. According to ledgers of his personal spending, he spent a grand total of $8,562 in 1991 and 1992 on travel and entertainment. His extravagances, such as they were, consisted of buying his wife the odd gift from Antonovich Furs or hosting family celebrations at the Peter Luger Steak House in Brooklyn. His home on Midland Parkway in Jamaica Estates, Queens, built with unfussy brick like so many of his apartment buildings, had little to distinguish it from neighboring houses beyond the white columns and crest framing the front door.
There are, however, indications that he wanted plenty of cash on hand to bail out his son if need be.
Such was the case with the rescue mission at his son’s Trump’s Castle casino. Donald Trump had wildly overspent on renovations, leaving the property dangerously low on operating cash. Sure enough, neither Trump’s Castle nor its owner had the necessary funds to make an $18.4 million bond payment due in December 1990.
On Dec. 17, 1990, Fred Trump dispatched Howard Snyder, a trusted bookkeeper, to Atlantic City with a $3.35 million check. Mr. Snyder bought $3.35 million worth of casino chips and left without placing a bet. Apparently, even this infusion wasn’t sufficient, because that same day Fred Trump wrote a second check to Trump’s Castle, for $150,000, bank records show.
With this ruse — it was an illegal $3.5 million loan under New Jersey gaming laws, resulting in a $65,000 civil penalty — Donald Trump narrowly avoided defaulting on his bonds.

Birds of a Feather

Both the son and the father were masters of manipulating the value of their assets, making them appear worth a lot or a little depending on their needs.

As the chip episode demonstrated, father and son were of one mind about rules and regulations, viewing them as annoyances to be finessed or, when necessary, ignored. As described by family members and associates in interviews and sworn testimony, theirs was an intimate, endless confederacy sealed by blood, shared secrets and a Hobbesian view of what it took to dominate and win. They talked almost daily and saw each other most weekends. Donald Trump sat at his father’s right hand at family meals and participated in his father’s monthly strategy sessions with his closest advisers. Fred Trump was a silent, watchful presence at many of Donald Trump’s news conferences.
“I probably knew my father as well or better than anybody,” Donald Trump said in a 2000 deposition.
They were both fluent in the language of half-truths and lies, interviews and records show. They both delighted in transgressing without getting caught. They were both wizards at manipulating the value of their assets, making them appear worth a lot or a little depending on their needs.
Those talents came in handy when Fred Trump Jr. died, on Sept. 26, 1981, at age 42 from complications of alcoholism, leaving a son and a daughter. The executors of his estate were his father and his brother Donald.
Fred Trump Jr.’s largest asset was his stake in seven of the eight buildings his father had transferred to his children. The Trumps would claim that those properties were worth $90.4 million when they finished converting them to cooperatives within a few years of his death. At that value, his stake could have generated an estate tax bill of nearly $10 million.
But the tax return signed by Donald Trump and his father claimed that Fred Trump Jr.’s estate owed just $737,861. This result was achieved by lowballing all seven buildings. Instead of valuing them at $90.4 million, Fred and Donald Trump submitted appraisals putting them at $13.2 million.
Emblematic of their audacity was Park Briar, a 150-unit building in Queens. As it happened, 18 days before Fred Trump Jr.’s death, the Trump siblings had submitted Park Briar’s co-op conversion plan, stating under oath that the building was worth $17.1 million. Yet as Fred Trump Jr.’s executors, Donald Trump and his father claimed on the tax return that Park Briar was worth $2.9 million when Fred Trump Jr. died.

This fantastical claim — that Park Briar should be taxed as if its value had fallen 83 percent in 18 days — slid past the I.R.S. with barely a protest. An auditor insisted the value should be increased by $100,000, to $3 million.
During the 1980s, Donald Trump became notorious for leaking word that he was taking positions in stocks, hinting of a possible takeover, and then either selling on the run-up or trying to extract lucrative concessions from the target company to make him go away. It was a form of stock manipulation with an unsavory label: “greenmailing.” The Times unearthed evidence that Mr. Trump enlisted his father as his greenmailing wingman.
On Jan. 26, 1989, Fred Trump bought 8,600 shares of Time Inc. for $934,854, his tax returns show. Seven days later, Dan Dorfman, a financial columnist known to be chatty with Donald Trump, broke the news that the younger Trump had “taken a sizable stake” in Time. Sure enough, Time’s shares jumped, allowing Fred Trump to make a $41,614 profit in two weeks.
Later that year, Fred Trump bought $5 million worth of American Airlines stock. Based on the share price — $81.74 — it appears he made the purchase shortly before Mr. Dorfman reported that Donald Trump was taking a stake in the company. Within weeks, the stock was over $100 a share. Had Fred Trump sold then, he would have made a quick $1.3 million. But he didn’t, and the stock sank amid skepticism about his son’s history of hyped takeover attempts that fizzled. Fred Trump sold his shares for a $1.7 million loss in January 1990. A week later, Mr. Dorfman reported that Donald Trump had sold, too.
With other family members, Fred Trump could be cantankerous and cruel, according to sworn testimony by his relatives. “This is the stupidest thing I ever heard of,” he’d snap when someone disappointed him. He was different with his son Donald. He might chide him — “Finish this job before you start that job,” he’d counsel — but more often, he looked for ways to forgive and accommodate.
By 1987, for example, Donald Trump’s loan debt to his father had grown to at least $11 million. Yet canceling the debt would have required Donald Trump to pay millions in taxes on the amount forgiven. Father and son found another solution, one never before disclosed, that appears to constitute both an unreported multimillion-dollar gift and a potentially illegal tax write-off.
In December 1987, records show, Fred Trump bought a 7.5 percent stake in Trump Palace, a 55-story condominium building his son was erecting on the Upper East Side of Manhattan. Most, if not all, of his investment, which totaled $15.5 million, was made by exchanging his son’s unpaid debts for Trump Palace shares, records show.

Four years later, in December 1991, Fred Trump sold his entire stake in Trump Palace for just $10,000, his tax returns and financial statements reveal. Those documents do not identify who bought his stake. But other records indicate that he sold it back to his son.
Under state law, developers must file “offering plans” that identify to any potential condo buyer the project’s sponsors — in other words, its owners. The Trump Palace offering plan, submitted in November 1989, identified two owners: Donald Trump and his father. But under the same law, if Fred Trump had sold his stake to a third party, Donald Trump would have been required to identify the new owner in an amended offering plan filed with the state attorney general’s office. He did not do that, records show.
He did, however, sign a sworn affidavit a month after his father sold his stake. In the affidavit, submitted in a lawsuit over a Trump Palace contractor’s unpaid bill, Donald Trump identified himself as “the” owner of Trump Palace.
Under I.R.S. rules, selling shares worth $15.5 million to your son for $10,000 is tantamount to giving him a $15.49 million taxable gift. Fred Trump reported no such gift.
According to tax experts, the only circumstance that would not have required Fred Trump to report a gift was if Trump Palace had been effectively bankrupt when he unloaded his shares.
Yet Trump Palace was far from bankrupt.
Property records show that condo sales there were brisk in 1991. Trump Palace sold 57 condos for $52.5 million — 94 percent of the total asking price for those units.
Donald Trump himself proclaimed Trump Palace “the most financially secure condominium on the market today” in advertisements he placed in 1991 to rebut criticism from buyers who complained that his business travails could drag down Trump Palace, too. In December, 17 days before his father sold his shares, he placed an ad vouching for the wisdom of investing in Trump Palace: “Smart money says there has never been a better time.” 

By failing to tell the I.R.S. about his $15.49 million gift to his son, Fred Trump evaded the 55 percent tax on gifts, saving about $8 million. At the same time, he declared to the I.R.S. that Trump Palace was almost a complete loss — that he had walked away from a $15.5 million investment with just $10,000 to show for it.
Federal tax law prohibits deducting any loss from the sale of property between members of the same family, because of the potential for abuse. Yet Fred Trump appears to have done exactly that, dodging roughly $5 million more in income taxes.

The partnership between Fred and Donald Trump was not simply about the pursuit of riches. At its heart lay a more ambitious project, executed to perfection over decades — to create that origin story, the myth of Donald J. Trump, Self-Made Billionaire.
Donald Trump built the foundation for the myth in the 1970s by appropriating his father’s empire as his own. By the late 1980s, instead of appropriating the empire, he was diminishing it. “It wasn’t a great business, it was a good business,” he said, as if Fred Trump ran a chain of laundromats. Yes, he told interviewers, his father was a wonderful mentor, but given the limits of his business, the most he could manage was a $1 million loan, and even that had to be repaid with interest.
Through it all, Fred Trump played along. Never once did he publicly question his son’s claim about the $1 million loan. “Everything he touches seems to turn to gold,” he told The Times for that first profile in 1976. “He’s gone way beyond me, absolutely,” he said when The Times profiled his son again in 1983. But for all Fred Trump had done to build the myth of Donald Trump, Self-Made Billionaire, there was, it turned out, one line he would not allow his son to cross.

Tuesday

Brett Kavanaugh: Last Week Tonight with John Oliver (HBO)



How Russia Helped Swing the Election for Trump

A meticulous analysis of online activity during the 2016 campaign makes a powerful case that targeted cyberattacks by hackers and trolls were decisive.

By
The Newyorker


Donald Trump has adopted many contradictory positions since taking office, but he has been unwavering on one point: that Russia played no role in putting him in the Oval Office. Trump dismisses the idea that Russian interference affected the outcome of the 2016 election, calling it a “made-up story,” “ridiculous,” and “a hoax.” He finds the subject so threatening to his legitimacy that—according to “The Perfect Weapon,” a recent book on cyber sabotage by David Sanger, of the Times—aides say he refuses even to discuss it. In public, Trump has characterized all efforts to investigate the foreign attacks on American democracy during the campaign as a “witch hunt”; in March, he insisted that “the Russians had no impact on our votes whatsoever.”

Few people, including Trump’s opponents, have publicly challenged the widespread belief that no obtainable evidence can prove that Russian interference changed any votes. Democrats, for the most part, have avoided attributing Hillary Clinton’s defeat directly to Russian machinations. They have more readily blamed James Comey, the former F.B.I. director, for reversing Clinton’s thin lead in the final days of the campaign by reopening a criminal investigation into her mishandling of classified e-mails. Many have also expressed frustration with Clinton’s weak performance as a candidate, and with her campaign’s tactical errors. Instead of investigating whether Russia tipped the electoral scales on its own, they’ve focussed on the possibility that Trump colluded with Russia, and that this, along with other crimes, might be exposed by the probe being conducted by the special counsel, Robert Mueller.

The U.S. intelligence community, for its part, is prohibited from investigating domestic political affairs. James Clapper, the former director of National Intelligence, told me, “We try not to spy on Americans. It’s not in our charter.” He emphasized that, although he and other intelligence officials produced—and shared with Trump—a postelection report confirming an extensive cyberattack by Russia, the assessment did not attempt to gauge how this foreign meddling had affected American voters. Speaking for himself, however, he told me that “it stretches credulity to think the Russians didn’t turn the election.”

Ordinarily, Congress would aggressively examine an electoral controversy of this magnitude, but the official investigations in the House and the Senate, led by Republicans, have been too stymied by partisanship to address the ultimate question of whether Trump’s victory was legitimate. Although the Senate hearings are still under way, the Intelligence Committee chairman, Richard Burr, a Republican, has already declared, “What we cannot do, however, is calculate the impact that foreign meddling and social media had on this election.”

Even the Clinton campaign has stopped short of attributing its loss to the Russians. Joel Benenson, the campaign’s pollster, told me that “a global power is fucking with our elections,” and that “every American should be outraged, whether it changed the outcome or not.” But did the meddling alter the outcome? “How will we ever know?” he said. “We probably won’t, until some Russians involved in it are actually prosecuted—or some Republican, in a moment of conscience, talks.”

Politicians may be too timid to explore the subject, but a new book from, of all places, Oxford University Press promises to be incendiary. “Cyberwar: How Russian Hackers and Trolls Helped Elect a President—What We Don’t, Can’t, and Do Know,” by Kathleen Hall Jamieson, a professor of communications at the University of Pennsylvania, dares to ask—and even attempts to answer—whether Russian meddling had a decisive impact in 2016. Jamieson offers a forensic analysis of the available evidence and concludes that Russia very likely delivered Trump’s victory.

The book, which is coming out less than two months before the midterm elections, at a moment when polls suggest that some sixty per cent of voters disapprove of Trump, may well reignite the question of Trump’s electoral legitimacy. The President’s supporters will likely characterize the study as an act of partisan warfare. But in person Jamieson, who wears her gray hair in a pixie cut and favors silk scarves and matronly tweeds, looks more likely to suspend a troublemaker than to be one. She is seventy-one, and has spent forty years studying political speeches, ads, and debates. Since 1993, she has directed the Annenberg Public Policy Center, at Penn, and in 2003 she co-founded FactCheck.org, a nonpartisan watchdog group. She is widely respected by political experts in both parties, though her predominantly male peers have occasionally mocked her scholarly intensity, calling her the Drill Sergeant. As Steven Livingston, a professor of political communication at George Washington University, puts it, “She is the epitome of a humorless, no-nonsense social scientist driven by the numbers. She doesn’t bullshit. She calls it straight.”

Indeed, when I met recently with Jamieson, in a book-lined conference room at the Annenberg Center, in Philadelphia, and asked her point-blank if she thought that Trump would be President without the aid of Russians, she didn’t equivocate. “No,” she said, her face unsmiling. Clearly cognizant of the gravity of her statement, she clarified, “If everything else is a constant? No, I do not.”

Jamieson said that, as an academic, she hoped that the public would challenge her arguments. Yet she expressed confidence that unbiased readers would accept her conclusion that it is not just plausible that Russia changed the outcome of the 2016 election—it is “likely that it did.”

An airtight case, she acknowledges, may never be possible. In the introduction to her new book, she writes that any case for influence will likely be similar to that in a civil legal trial, “in which the verdict is rendered not with the certainty that e=mc2 but rather based on the preponderance of evidence.” But, she points out, “we do make most of life’s decisions based on less-than-rock-solid, incontrovertible evidence.” In Philadelphia, she noted to me that “we convict people on probabilities rather than absolute certainty, and we’ve executed people based on inferences from available evidence.” She argued that “the standard of proof being demanded” by people claiming it’s impossible to know whether Russia delivered the White House to Trump is “substantially higher than the standard of proof we ordinarily use in our lives.”

Her case is based on a growing body of knowledge about the electronic warfare waged by Russian trolls and hackers—whom she terms “discourse saboteurs”—and on five decades’ worth of academic studies about what kinds of persuasion can influence voters, and under what circumstances. Democracies around the world, she told me, have begun to realize that subverting an election doesn’t require tampering with voting machines. Extensive studies of past campaigns, Jamieson said, have demonstrated that “you can affect people, who then change their decision, and that alters the outcome.” She continued, “I’m not arguing that Russians pulled the voting levers. I’m arguing that they persuaded enough people to either vote a certain way or not vote at all.”

The effect of such manipulations could be momentous in an election as close as the 2016 race, in which Clinton got nearly 2.9 million more votes than Trump, and Trump won the Electoral College only because some eighty thousand votes went his way in Wisconsin, Michigan, and Pennsylvania. In two hundred and twenty-four pages of extremely dry prose, with four appendixes of charts and graphs and fifty-four pages of footnotes, Jamieson makes a strong case that, in 2016, “Russian masterminds” pulled off a technological and political coup. Moreover, she concludes, the American media “inadvertently helped them achieve their goals.”

When Jamieson set out to research the 2016 campaign—she has researched every Presidential election since 1976—she had no intention of lobbing a grenade. She was spending a peaceful sabbatical as a fellow at the Shorenstein Center, at Harvard’s Kennedy School of Government, exploring a rather narrow topic: the 2016 Presidential debates. She’d chosen this subject because, having devoted decades to examining the impact of advertising and other forms of persuasion on voters, she believed that most of the big questions in the field of political-campaign communications had been answered. Also, she admitted, “I have what you could call a debate fixation. Every year since 1996 I’ve done some kind of social-science look at the effects of debates.”

This expertise helped Jamieson notice something odd about the three debates between Trump and Clinton. As she told me, “The conventional wisdom was that Hillary Clinton had done pretty well.” According to CNN polls conducted immediately after the debates, she won all three, by a margin of thirteen per cent or greater. But, during the period of the debates, Jamieson and others at the Annenberg Center had overseen three telephone surveys, each sampling about a thousand adults. In an election that turned more than most on judgments of character, Americans who saw or heard the second and third debates, in particular, were more likely than those who hadn’t to agree that Clinton “says one thing in public and something else in private.” Jamieson found this statistic curious, because, by the time of the first debate, on September 26th, Clinton’s reputation for candor had already been tarnished by her failed attempt to hide the fact that she’d developed pneumonia, and by the revelation that, at a recent fund-raising event, she’d described some Trump supporters as “deplorables”—a slur that contradicted her slogan “Stronger Together.” Other Annenberg Center polling data indicated to Jamieson that concerns about Clinton being two-faced had been “baked in” voters’ minds since before the first debate. Clinton “had already been attacked for a very long time over that,” Jamieson recalls thinking. “Why would the debates have had an additional effect?”

After insuring that the surveys had been properly conducted, Jamieson analyzed whether this change in a voter’s perception of Clinton’s forthrightness predicted a change in his or her candidate preference. To her surprise, she found that it did: as she put it to me, there was a “small but significant drop in reported intention to vote for her.” This statistic, too, struck Jamieson as curious; she knew from years of scholarship that Presidential debates, barring major gaffes, typically “increase the likelihood that you’re casting a vote for, rather than against,” a candidate.
Last year, while Jamieson was trying to determine what could have caused viewers’ perception of Clinton’s character to fall so consequentially, the Washington Post asked her to write an op-ed addressing whether Russian operatives had helped to elect Trump. Jamieson agreed to do so, but, she admitted to me, “I frankly hadn’t thought about it one way or the other.”

amieson is scrupulously nonpartisan in her work. Beth Myers, who helped lead Mitt Romney’s Presidential campaigns in 2008 and 2012 and worked with Jamieson on a bipartisan project about Presidential debates, told me, “If Kathleen has a point of view, I don’t know what it is. She’s extraordinarily evenhanded. She is fair and fearless.” Anita Dunn, a Democratic adviser to Barack Obama, agrees. She, too, worked with Jamieson on the Presidential-debates project, and she studied with her as an undergraduate. Jamieson, she says, “is constantly pointing out what the data actually shows, as opposed to those of us who just assert stuff.”

Jamieson began her study of the 2016 election with an open mind. But, in the fall of 2017, as she watched the House and the Senate hold hearings on Russia’s social-media manipulations, and reviewed the sampling of dozens of Facebook ads released by the House Intelligence Committee—all paid for by Russians during the Presidential campaign—she developed suspicions about the reasons behind Trump’s victory. Before the hearings, Facebook’s chairman and C.E.O., Mark Zuckerberg, had maintained that the amount of Russian content that had been disseminated on social media was too small to matter. But evidence presented to the Senate committee revealed that material generated by the Kremlin had reached a hundred and twenty-six million American Facebook users, leading Senator Dianne Feinstein to call the cyberattack “cataclysmic.”

House Democrats later released not only the ads but also their “targeting data”—the demographics and the geographic locations of users receiving them—which indicated to Jamieson “whom the Russians were going for.” Among other things, she could discern that the Russians had tried “to minimize the vote of African-Americans.” Bogus Kremlin-sponsored ads that had circulated online—including one depicting a black woman in front of an “AFRICAN-AMERICANS FOR HILLARY” sign—had urged voters to tweet or text rather than vote, or to “avoid the line” and “vote from home.”

Jamieson’s Post article was grounded in years of scholarship on political persuasion. She noted that political messages are especially effective when they are sent by trusted sources, such as members of one’s own community. Russian operatives, it turned out, disguised themselves in precisely this way. As the Times first reported, on June 8, 2016, a Facebook user depicting himself as Melvin Redick, a genial family man from Harrisburg, Pennsylvania, posted a link to DCLeaks.com, and wrote that users should check out “the hidden truth about Hillary Clinton, George Soros and other leaders of the US.” The profile photograph of “Redick” showed him in a backward baseball cap, alongside his young daughter—but Pennsylvania records showed no evidence of Redick’s existence, and the photograph matched an image of an unsuspecting man in Brazil. U.S. intelligence experts later announced, “with high confidence,” that DCLeaks was the creation of the G.R.U., Russia’s military-intelligence agency.

Academic research has also shown that political messages tend not to change the minds of voters who have already chosen a candidate; they are most likely to persuade undecided voters. And in 2016 an uncommonly high percentage of voters liked neither candidate and stayed undecided longer than usual. By some counts, about thirty-seven million Americans—fifteen per cent of the electorate—were still undecided in the final weeks before the election.

Jamieson argues that the impact of the Russian cyberwar was likely enhanced by its consistency with messaging from Trump’s campaign, and by its strategic alignment with the campaign’s geographic and demographic objectives. Had the Kremlin tried to push voters in a new direction, its effort might have failed. But, Jamieson concluded, the Russian saboteurs nimbly amplified Trump’s divisive rhetoric on immigrants, minorities, and Muslims, among other signature topics, and targeted constituencies that he needed to reach. She noted that Russian trolls had created social-media posts clearly aimed at winning support for Trump from churchgoers and military families—key Republican voters who seemed likely to lack enthusiasm for a thrice-married nominee who had boasted of groping women, obtained multiple military deferments, mocked Gold Star parents and a former prisoner of war, and described the threat of venereal disease as his personal equivalent of the Vietcong. Russian trolls pretended to have the same religious convictions as targeted users, and often promoted Biblical memes, including one that showed Clinton as Satan, with budding horns, arm-wrestling with Jesus, alongside the message “ ‘Like’ if you want Jesus to win!” One Instagram post, portraying Clinton as uncaring about the 2012 tragedy in Benghazi, depicted a young American widow resting her head on a flag-draped coffin.

Another post displayed contrasting images of a thin homeless veteran and a heavyset, swarthy man wearing an “UNDOCUMENTED UNAFRAID UNAPOLOGETIC” T-shirt, and asked why “this veteran gets nothing” and “this illegal gets everything.” It concluded, “Like and share if you think this is a disgrace.” On Election Day, according to CNN exit polls, Trump, despite his political baggage, outperformed Clinton by twenty-six points among veterans; he also did better among evangelicals than both of the previous Republican nominees, Mitt Romney and John McCain.

In her Post article, Jamieson wrote that it was “hard to know” if Russian propaganda and dirty tricks—including the steady release of hacked e-mails, starting with Democratic National Committee correspondence that was leaked just before the Party’s convention—had made a decisive difference in 2016. Nevertheless, she argued, the “wide distribution” of the trolls’ disinformation “increases the likelihood” that it “changed the outcome.”

After the article’s publication, she returned to her sabbatical project on the debates, with a newly keen eye for Russian trolls and hackers. After reviewing the debate transcripts, scrutinizing press coverage, and eliminating other possibilities, Jamieson concluded that there was only one credible explanation for the diminishing impression among debate viewers that Clinton was forthright: just before the second debate, WikiLeaks had released a cache of e-mails, obtained by Russian hackers, that, it said, were taken from the Gmail account of Clinton’s campaign chairman, John Podesta. They included excerpts from speeches that Clinton had given to banks, for high fees, and had refused to release during the campaign. The speeches could be used by detractors to show that, despite her liberal rhetoric, she was aligned with Wall Street. The hacked content permeated the discourse of the debates, informing both the moderators’ questions and the candidates’ answers. All this, Jamieson writes, gave legitimacy to the idea that Clinton “said one thing in public and another in private.”

During the second debate, on October 9th, before 66.5 million viewers, one of the moderators, Martha Raddatz, relayed a question submitted by a voter: Did Clinton think that it was acceptable for a politician to be “two-faced”? The question referred to a leaked passage from one of Clinton’s previously unreleased paid speeches; Russian hackers had given the passage to WikiLeaks, which posted it two days before the debate. In the speech, Clinton had cited Steven Spielberg’s film “Lincoln” as an example of how politicians sometimes need to adopt different public and private negotiating stances. The point was scarcely novel, but the debate question—which took her words out of context, omitted her reference to the movie, and didn’t mention that Russian operatives had obtained the speech illegally—made Clinton sound like a sneaky hypocrite. When Clinton cited “Lincoln” in order to defend the statement, Trump pounced.

“She got caught in a total lie!” Trump said. “Her papers went out to all her friends at the banks—Goldman Sachs and everybody else. And she said things, WikiLeaks, that just came out. And she lied. Now she’s blaming the lie on the late, great Abraham Lincoln!”

The dynamic recurred in the third debate, on October 19th, which 71.6 million people watched. When Trump accused Clinton of favoring “open borders,” she denied it, but the moderator, Chris Wallace, challenged her by citing a snippet from a speech that she had given, in 2013, to a Brazilian bank: “My dream is a hemispheric common market with open trade and open borders.” Again, there was no mention of the fact that the speech had been stolen by a hostile foreign power; Wallace said that the quotation had come from WikiLeaks. The clear implication of Wallace’s question was that Clinton had been hiding her true beliefs, and Trump said to him, “Thank you!” His supporters in the audience laughed. Clinton said that the phrase had been taken out of context: she’d been referring not to immigrants but to an open-bordered electric grid with Latin America. She tried to draw attention to Russia’s role in hacking the speech, but Trump mocked her for accusing Putin, and joked, “That was a great pivot off the fact that she wants open borders.” He then warned the audience that, if Clinton were elected, Syrians and other immigrants would “pour into our country.”

The fact-checking organization PolitiFact later concluded that Trump had incorrectly characterized Clinton’s speech, but the damage had been done. Jamieson’s research indicated that viewers who watched the second and third debates subsequently saw Clinton as less forthright, and Trump as more forthright. Among people who did not watch the debates, Clinton’s reputation was not damaged in this way. During the weeks that the debates took place, the moderators and the media became consumed by an anti-Clinton narrative driven by Russian hackers. In “Cyberwar,” Jamieson writes, “The stolen goods lent credibility” to “those moderator queries.”

As Jamieson reviewed the record further, she concluded that the Russian hackers had also been alarmingly successful in reframing the American political narrative in the crucial period leading up to the second debate. On Friday, October 7th, two days before it took place, three major stories landed in rapid succession. At 12:40 P.M., the Obama Administration released a stunning statement, by the Department of Homeland Security and the director of National Intelligence, accusing the Russian government of interfering in the election through hacking. This seemed certain to dominate the weekend news, but at 4:03 P.M. the Washington Post published a report, by David Fahrenthold, on an “Access Hollywood” tape that captured Trump, on a hot mike, boasting about grabbing women “by the pussy.” Then, less than half an hour later, WikiLeaks released its first tranche of e-mails that Russian hackers had stolen from Podesta’s account. The tranche contained some two thousand messages, along with excerpts from the paid speeches that Clinton had tried to conceal, including those that would be mentioned in the subsequent debates. (Julian Assange, the head of WikiLeaks, has denied working with the Russian government, but he manifestly despises Clinton, and, in a leaked Twitter direct message, he said that in the 2016 election “it would be much better for GOP to win.”)

If the WikiLeaks release was a Russian-backed effort to rescue Trump’s candidacy by generating a scandal to counterbalance the “Access Hollywood” tape and the intelligence report on Russian interference, Jamieson writes, it worked splendidly. The intelligence community’s report faded from the headlines; that Sunday morning, none of its authors were invited on any major talk show. Instead, the programs breathlessly discussed the “pussy” tape and the Clinton campaign’s e-mails, which were portrayed as more or less exposing both candidates as liars. Jamieson notes, “Instead of asking how we could know that the Russians were behind the hacking, the October 9 Sunday show moderators asked what effect the disclosures would have on the candidates’ respective campaigns and what the tape and speech segments revealed about the private versus public selves of the contenders.” If not for WikiLeaks, she writes, the media discourse in those crucial days likely would have remained locked on two topics advantageous to Clinton: Russian election subversion and Trump’s treatment of women.

Thursday

See How a Controversial Female Imam Is Fighting Muslim Patriarchy


Singer/songwriter Ani Zonneveld is one of the few female imams (Muslim religious leader) in the world. She is the founder and president of Muslims for Progressive Values, and insists that the Qur’an is a progressive text which presents an egalitarian view of Islam. In addition to advocating for universal human rights and interfaith initiatives within Islam, she works to create music to counter both Islamic extremism and Islamophobia. Despite her efforts she is met with resistance, including vocal opposition from many fellow Muslims and even death threats. With unprecedented access to Zonneveld’s daily life, al imam presents a personal view of her work and beliefs, examining what it means to stand up for what you believe in the face of great resistance.

al imam was directed by Omar Al Dakheel and fully funded by USC’s School of Cinematic Arts. Each semester, advanced graduate students are invited to pitch short documentary projects to faculty in a competitive process. Three films are selected to be developed, produced, and completed with crew comprised entirely of students under the guidance of faculty.


The Short Film Showcase spotlights exceptional short videos created by filmmakers from around the world and selected by National Geographic editors. We look for work that affirms National Geographic's belief in the power of science, exploration, and storytelling to change the world. To submit a film for consideration, please email sfs@natgeo.com. The filmmakers created the content presented, and the opinions expressed are their own, not those of National Geographic Partners.

Winners Take All - Anand Giridharadas


An acclaimed writer and journalist who reported on a changing world in an eleven-year tour at The New York Times, Anand Giridharadas has emerged as a compelling voice for finding common ground in divided times. An Ohio native of Indian parentage who has lived on three continents and reported from five, Giridharadas speaks of and to an ever more diverse, globally entwined, yet alarmingly polarized America. From telling his unforgettable “Tale of Two Americas” on the TED main stage to earning presidential praise for his inspirational opening address to the inaugural Obama Summit, Giridharadas explores the anger and promise of our new American moment, sharing thought-provoking insights on what got us here and what lies ahead.

Wednesday

Attorney Sent Letter to Chuck Grassley and Dianne Feinstein Claiming Federal Court Employees Willing to Speak About Brett Kavanaugh



The top Republican and Democrat on the Senate Judiciary Committee were both approached in July by an attorney claiming to have information relevant to the confirmation of Brett Kavanaugh to the Supreme Court. The attorney claimed in his letter that multiple employees of the federal judiciary would be willing to speak to investigators, but received no reply to multiple attempts to make contact, he told The Intercept.

Cyrus Sanai made his first attempt to reach out to Sens. Charles Grassley, R-Iowa, and Dianne Feinstein, D-Calif., in a letter dated July 24.

Sanai told the committee leadership that “there are persons who work for, or who have worked for, the federal judiciary who have important stories to tell about disgraced former Chief Judge Alex Kozinski, and his mentee, current United States Supreme Court nominee Brett Kavanaugh. I know that there are people who wish to speak out but fear retaliation because I have been contacted by more than a half-dozen such persons since Judge Kozinski resigned in disgrace.”

Sanai is the California attorney who blew the whistle on Kozinski years before a series of articles in the Washington Post in December finally brought about the resignation of the former chief judge of the 9th Circuit Court over sexual harassment revelations. Sanai has long challenged the judiciary and was deemed a “vexatious litigant” by one trial court, an attempted designation that was overturned on appeal.

Since Kozinski’s resignation, questions have been raised about what Kavanaugh knew or did about such behavior, given the close relationship between the two. Kavanaugh clerked for Kozinski in the 1990s, a post that led directly to his clerkship with Supreme Court Justice Anthony Kennedy, who recommended Kavanaugh to President Donald Trump as his replacement. Kozinski and Kavanaugh remained close and both vetted prospective clerks for Kennedy.

Kozinski’s son recently clerked for Kavanaugh.

The Sanai letter was overnighted and emailed to Grassley’s office on July 25, and Sanai provided a copy of the receipt. He dropped the letter off by hand to Feinstein’s office in West Los Angeles, he said, after being told over the phone that was the most efficient route to delivery.
Grassley’s spokesperson provided the following statement after publication:
Senator Grassley’s office received correspondence, which was also addressed to Sen. Feinstein, from Mr. Sanai in July. As we always do, the office reviewed the content and claims in the letter to determine how best to assess and use the information. The contents of the letter concerned the actions and behavior of former Judge Alex Kozinski and, to a lesser extent, his relationship with Judge Kavanaugh. This topic was discussed significantly at Judge Kavanaugh’s hearing.
Feinstein did provided comment by the time of publication.
During his confirmation hearings, Kavanaugh told the Judiciary Committee that he had no knowledge whatsoever of Kozinski’s behavior and was stunned to learn of the misconduct allegations. “When they became public, the first thought I had: No one should be subjected to sexual harassment in the workplace ever, including in the judiciary, especially in the judiciary,” Kavanaugh said under oath during his confirmation hearing, responding to a question from Sen. Orrin Hatch, R-Utah. “When I heard, it was a gut punch. It was a gut punch for me. It was a gut punch for the judiciary. I was shocked, and disappointed, angry, swirl of emotions.”

In a follow up question, Sen. Mazie Hirono, D-Hawaii, asked him to search his records and in a written response, he backed off his certainty, saying only, “I do not remember receiving inappropriate emails of a sexual nature from Judge Kozinski.”

Sanai told The Intercept that at least two federal employees had information to provide the committee about Kavanaugh, including one who spoke directly with Kavanaugh about it. Sanai said that he did not hold Kavanaugh responsible for Kozinski’s behavior, but rather that his claim of ignorance was not credible and could be contradicted by witnesses. Kavanaugh’s credibility has become a central issue in his confirmation, as he has “unequivocally” denied allegations that he sexually assaulted Christine Blasey Ford when both were in high school.

Apart from interviewing witnesses, Sanai also suggested that the Judiciary Committee “subpoena all intra Court emails and messages between Kavanaugh and Kozinski and all emails to and from Kozinski with links to his website.”

The fact that Kozinski hosted pornography on his website and forced some clerks to view it was one of the exposed behaviors that led to his resignation.

“The only way these important stories can be told is if Congress moves the spotlight from abstract procedures and statements of intent to the judges who made the judiciary safe for Judge Kozinski to satisfy his deviant needs. If this Committee, or the Judiciary Committee, does so, I have assurances that more people will step forward,” Sanai wrote.

He also mailed copies of the letter to Sens. Kamala Harris, D-Calif., and Richard Blumenthal, D-Conn., and Reps. Bob Goodlatte, R-Va., Jim Sensenbrenner, R-Wisc., Jerry Nadler, D-N.Y., and Ted Lieu, D-Calif., he said, but can’t be sure that they received them.

Feinstein and Grassley, he said, were the only two he made sure received the letter. “I spent quite a bit of time trying to get Feinstein to address it,” he said.

Feinstein was also contacted in July by Ford, a California professor who said that Kavanaugh sexually assaulted her while both were in high school.

“I am writing with information relevant in evaluating the current nominee to the Supreme Court. As a constituent, I expect that you will maintain this as confidential until we have further opportunity to speak. Brett Kavanaugh physically and sexually assaulted me during high school in the early 1980’s,” Ford wrote to Feinstein on July 30. “I have received medical treatment regarding the assault. On July 6 I notified my local government representative” — Anna Eshoo — “to ask them how to proceed with sharing this information. It is upsetting to discuss sexual assault and its repercussions, yet I felt guilty and compelled as a citizen about the idea of not saying anything. I am available to speak further should you wish to discuss.”

The New Yorker’s Ronan Farrow and Jane Mayer later reported that after her dealings with Feinstein’s and Eshoo’s offices, Ford stepped back. Feinstein, Farrow reported, “acted out of a sense that Democrats would be better off focussing on legal, rather than personal, issues in their questioning of Kavanaugh.”
After the interactions with Eshoo’s and Feinstein’s offices, the woman decided not to speak about the matter publicly. She had repeatedly reported the allegation to members of Congress and, watching Kavanaugh move toward what looked like an increasingly assured confirmation, she decided to end her effort to come forward, a source close to the woman said. Feinstein’s office did not respond to requests for comment.
Feinstein’s decision to handle the matter in her own office, without notifying other members of the Senate Judiciary Committee, stirred concern among her Democratic colleagues. For several days, Feinstein declined requests from other Democrats on the Judiciary Committee to share the woman’s letter and other relevant communications.
Ford’s attorney Debra Katz has since said that Feinstein handled the situation as well as she could have. “We do think that Feinstein did well by her, and we do think that people took this decision away from her, and that’s wrong,” Katz said. “If the #MeToo era teaches us anything, it’s that a person gets to choose when, where and how, and now this person is going to be injected into a life-altering blood bath.”
Kavanaugh’s credibility has also been called into question by his denial that he ever exploited information stolen from Senate Democrats during previous confirmation fights. Emails subsequently revealed that he did.

Sanai himself, in his letter, offered to testify. Given his history of combative exchanges, it would likely be a fiery affair. The appeals court that overruled the “vexatious litigant” designation added that the litigants in the case lacked “civility and courtesy.”

“In reversing the trial court’s order, we do not intend to signal our approval of the manner in which this litigation has been conducted. It has gone on far too long,” the court wrote. “It has consumed far too much of the judicial system’s limited resources. Gamesmanship appears too often to take precedence over reasonable efforts to resolve procedural disputes and to address the merits of the remaining controversy. Civility and courtesy are absent.”

The “vexatious litigant” designation relied, in significant part, on the complaints Sanai had been filing against Kozinski — complaints that were ultimately borne out.

Correction: September 18, 2018
This story originally referred to Kavanaugh’s testimony as a response to questioning by Hirono. In fact, his remarks above were made in response to questioning by Hatch. His written response above was directed to Hirono. 

Update: September 18, 2018
This story has been updated to include a comment received after publication from Sen. Chuck Grassley’s spokesperson.

Friday

The threat to democracy — from the left

By Fareed Zakaria

For several years now, scholars have argued that the world is experiencing a “democratic recession.” They have noted that the movement of countries toward democracy has slowed or stopped and even, in some places, reversed. They also note a general hollowing out of democracy in the advanced, industrial world. When we think about this problem, inevitably and rightly we worry about President Trump, his attacks on judges, the free press and his own Justice Department. But there is also a worrying erosion of a core democratic norm taking place on the left.

It has become commonplace to hear cries on the left to deny controversial figures on the right a platform to express their views. Colleges have disinvited speakers such as Condoleezza Rice and Charles Murray. Other campuses were unwilling or unable to allow conservative guests to actually speak, with protests overwhelming the events.

A similar controversy now involves Stephen K. Bannon, who, in recent months, has been making the rounds on the airwaves and in print — including an interview I did with him on CNN. Some have claimed that Bannon, since leaving the administration, is simply unimportant and irrelevant and thus shouldn’t be given a microphone. But if that were the case, surely the media, which after all is a for-profit industry, would notice the lack of public interest and stop inviting him.

The reality is that the people running the Economist, the Financial Times, “60 Minutes,” the New Yorker and many other organizations that have recently sought to feature Bannon know he is an intelligent and influential ideologist, a man who built the largest media platform for the new right, ran Trump’s successful campaign before serving in the White House, and continues to articulate and energize the populism that’s been on the rise throughout the Western world. He might be getting his 15 minutes of fame that will peter out, but, for now, he remains a compelling figure.

The real fear that many on the left have is not that Bannon is dull and uninteresting, but the opposite — that his ideas, some of which can reasonably be described as evoking white nationalism, will prove seductive and persuasive to too many people. Hence his detractors’ solution: Don’t give him a platform, and hope that this will make his ideas go away. But they won’t. In fact, by trying to suppress Bannon and others on the right, liberals are likely making their ideas seem more potent. Did the efforts of communist countries to muzzle capitalist ideas work?

Liberals need to be reminded of the origins of their ideology. In 1859, when governments around the world were still deeply repressive — banning books, censoring commentary and throwing people in jail for their beliefs — John Stuart Mill explained in his seminal work, “On Liberty,” that protection against governments was not enough: “There needs protection also against the tyranny of the prevailing opinion and feeling; against the tendency of society to impose . . . its own ideas and practices . . . on those who dissent from them.” This classic defense of free speech, which Supreme Court Justice Oliver Wendell Holmes later called the “freedom for the thought that we hate,” is under pressure in the United States — and from the left.

We’ve been here before. Half a century ago, students were also shutting down speakers whose views they found deeply offensive. In 1974, William Shockley, the Nobel Prize-winning scientist who in many ways was the father of the computer revolution, was invited by Yale University students to defend his abhorrent view that blacks were a genetically inferior race who should be voluntarily sterilized. He was to debate Roy Innis, the African American leader of the Congress of Racial Equality. (The debate was Innis’s idea.) A campus uproar ensued, and the event was canceled. A later, rescheduled debate with another opponent was disrupted.

The difference from today is that Yale recognized that it had failed in not ensuring that Shockley could speak. It commissioned a report on free speech that remains a landmark declaration of the duty of universities to encourage debate and dissent. The report flatly states that a college “cannot make its primary and dominant value the fostering of friendship, solidarity, harmony, civility or mutual respect. . . . it will never let these values . . . override its central purpose. We value freedom of expression precisely because it provides a forum for the new, the provocative, the disturbing, and the unorthodox.”

The report added: “We take a chance, as the First Amendment takes a chance, when we commit ourselves to the idea that the results of free expression are to the general benefit in the long run, however unpleasant they may appear at the time.” It is on this bet for the long run, a bet on freedom — of thought, belief, expression and action — that liberal democracy rests.