The Slatest

An Intriguing Link Between the Mueller Investigation, Trump, and Alleged Money Laundering

The Trump Soho building—one of the projects that Donald Trump developed with Felix Sater—in New York City.

Drew Angerer/Getty Images

This one is a little convoluted, but here goes:

  • Felix Sater was born in Russia and moved to the United States with his family when he was 8. His father Mikhail has connections to Russian organized crime and was once convicted of extortion. The younger Sater ended up working at a company called Bayrock, which had offices in Trump Tower and, beginning in 2002, partnered with Donald Trump on several development projects. Bayrock’s role in the projects involved soliciting outside investors.
  • Felix Sater also has a colorful criminal record. In 1991, he stabbed a man in the face with the stem of a broken margarita glass and went to jail for assault. In 2007, the New York Times reported that he had been accused in 1998 of securities fraud in a massive stock-scam case involving a number of New York mob families. It was later revealed that Sater pleaded guilty in that 1998 case, but that his involvement in it was kept secret, because he became a witness for the government and reportedly continued as such until 2008. Sater is known to have helped build cases against individuals involved in the stock scam and reportedly also cooperated in a case that involved attempting to secure missiles that were being sold on the black market in Afghanistan. (!)
  • Sater disassociated himself from Bayrock and the Trump projects after the 2007 Times story but popped back up in 2010, working for the Trump Organization as a “senior adviser.”
  • A former Bayrock associate of Sater’s filed a lawsuit against Sater which alleges, in the words of a new Bloomberg story by longtime Trump reporter Timothy O’Brien, that “Bayrock was actually a front for money laundering” and took money from Russian sources. At this point, the associate making the accusation does not appear to have any direct evidence to support his claim, but the lawsuit is ongoing.

And here’s one more background fact:

  • Andrew Weissmann is a longtime federal prosecutor who has joined Robert Mueller’s Trump–Russia special counsel investigation. News stories have described Weissmann as an expert in “flipping” witnesses, i.e. getting them to testify against their co-conspirators.

Here’s the interesting nugget, which the Bloomberg story mentions in passing: Andrew Weissmann was one of the people who prosecuted the 1998 mob stock-scam case during which Felix Sater flipped. The deal Sater got from federal prosecutors at the time was so good that lawyers representing victims of the underlying stock scam are still upset about it—and allege that the prosecutors acted inappropriately in allowing Sater to conceal his past while he was working at Bayrock.

Put more plainly, Robert Mueller has hired a prosecutor who was previously involved with a case that involved securing the close cooperation of an individual who might (might!) have simultaneously been helping fund Trump projects with laundered money.