Hidden in Plain Sight: The Shocking Origins of the Jeffrey Epstein Case
A composite image shows from left to right, Lewis Rosenstiel, Jeffrey Epstein, and Roy Cohn. Graphic | Emma Fiala
By Whitney Webb | MintPress News | July 18, 2019
Despite his “sweetheart” deal and having seemingly evaded justice, billionaire sex offender Jeffrey Epstein was arrested earlier this month on federal charges for sex trafficking minors. Epstein’s arrest has again brought increased media attention to many of his famous friends, the current president among them.
Many questions have since been asked about how much Epstein’s famous friends knew of his activities and exactly what Epstein was up to. The latter arguably received the most attention after it was reported that Alex Acosta — who arranged Epstein’s “sweetheart” deal in 2008 and who recently resigned as Donald Trump’s Labor Secretary following Epstein’s arrest — claimed that the mysterious billionaire had worked for “intelligence.”
Other investigations have made it increasingly clear that Epstein was running a blackmail operation, as he had bugged the venues — whether at his New York mansion or Caribbean island getaway — with microphones and cameras to record the salacious interactions that transpired between his guests and the underage girls that Epstein exploited. Epstein appeared to have stored much of that blackmail in a safe on his private island.
Claims of Epstein’s links and his involvement in a sophisticated, well-funded sexual blackmail operation have, surprisingly, spurred few media outlets to examine the history of intelligence agencies both in the U.S. and abroad conducting similar sexual blackmail operations, many of which also involved underage prostitutes.
In the U.S. alone, the CIA operated numerous sexual blackmail operations throughout the country, employing prostitutes to target foreign diplomats in what the Washington Post once nicknamed the CIA’s “love traps.” If one goes even farther back into the U.S. historical record it becomes apparent that these tactics and their use against powerful political and influential figures significantly predate the CIA and even its precursor, the Office of Strategic Services (OSS). In fact, they were pioneered years earlier by none other than the American mafia.
In the course of this investigation, MintPress discovered that a handful of figures who were influential in American organized crime during and after Prohibition were directly engaged in sexual blackmail operations that they used for their own, often dark, purposes.
In Part I of this exclusive investigation, MintPress will examine how a mob-linked businessman with deep ties to notorious gangster Meyer Lansky developed close ties with the Federal Bureau of Investigation (FBI) while also running a sexual blackmail operation for decades, which later became a covert part of the anti-communist crusade of the 1950s led by Senator Joseph McCarthy (R-WI), himself known throughout Washington for having a habit of drunkenly groping underage teenaged girls.
Yet, it would be one of McCarthy’s closest aides who would take over the ring in later years, trafficking minors and expanding this sexual blackmail operation at the same time he expanded his own political influence, putting him in close contact with prominent figures including former President Ronald Reagan and a man who would later become president, Donald Trump.
As will be revealed in Part II, after his death, this blackmail operation continued under various successors in different cities and there is strong evidence that Jeffrey Epstein became one of them.
Samuel Bronfman and the Mob
The Prohibition Era in the United States is often used as an example of how banning recreational substances not only increases their popularity but also causes a boom in criminal activity. Indeed, it was Prohibition that greatly increased the strength of the American mafia, as the top crime lords of the day grew rich through the clandestine trade and sale of alcohol in addition to gambling and other activities.
It is through the bootlegging trade of the 1920s and the early 1930s that this story begins, as it brought together key figures whose successors and affiliates would eventually create a series of blackmail and sex trafficking rings that would give rise to the likes of Jeffrey Epstein, the “Lolita Express” and “Orgy Island.”
Samuel Bronfman never planned to become a major producer of liquor but true to his family’s last name, which means “brandy man” in Yiddish, he eventually began distributing alcohol as an extension of his family’s hotel business. During Canada’s Prohibition period, which was briefer than and preceded that of its southern neighbor, the Bronfman family business used loopholes to skirt the law and find technically legal ways to sell alcohol in the hotels and stores the family owned. The family relied on its connections with members of the American mafia to illegally smuggle alcohol from the United States.
Soon after Prohibition ended in Canada, it began in the United States and, by the time the flow of illegal alcohol had turned the other way, the Bronfmans – whose business ventures were then being led by Sam Bronfman and his brothers — were relatively late to an already flourishing bootlegging trade.
“We were late starters in the two most lucrative markets – on the high seas and across the Detroit River. What came out of the border trade in Saskatchewan was insignificant by comparison,” Bronfman once told Canadian journalist Terence Robertson, who was then writing a biography of Bronfman. Nonetheless, “this was when we started to make our real money,” Bronfman recounted. Robertson’s biography on Bronfman was never published, as he died under mysterious circumstances soon after warning his colleagues that he had uncovered unsavory information about the Bronfman family.
Samuel Bronfman pictured in 1937 with his sons Edgar and Charles
Key to Bronfman’s success during American Prohibition were the ties his family had cultivated with organized crime during Canada’s Prohibition, ties that led many prominent members of the mob in the United States to favor Bronfman as a business partner. Bronfman liquor was purchased in massive quantities by many crime lords who still live on in American legend, including Charles “Lucky” Luciano, Moe Dalitz, Abner “Longy” Zwillman and Meyer Lansky.
Most of Bronfman’s mob associates during Prohibition were members of what became known as the National Crime Syndicate, which a 1950s Senate investigative body known as the Kefauver Committee described as a confederation dominated by Italian-American and Jewish-American mobs. During that investigation, some of the biggest names in the American mafia named Bronfman as a central figure in their bootlegging operations. The widow of notorious American mob boss Meyer Lansky even recounted how Bronfman had thrown lavish dinner parties for her husband.
Years later, Samuel Bronfman’s children and grandchildren, their family’s ties to the criminal underworld intact, would later go on to associate closely with Leslie Wexner, allegedly the source of much of Epstein’s mysterious wealth, and other mob-linked “philanthropists,” and some would even manage their own sexual blackmail operations, including the recently busted blackmail-based “sex cult” NXIVM. The later generations of the Bronfman family, particularly Samuel Bronfman’s sons Edgar and Charles, will be discussed in greater detail in Part II of this report.
Lewis Rosenstiel’s dark secret
Crucial to Bronfman’s Prohibition-era bootlegging operations were two middlemen, one of whom was Lewis “Lew” Rosenstiel. Rosenstiel got his start working at his uncle’s distillery in Kentucky before Prohibition. Once the law banning alcohol was in force, Rosenstiel created the Schenley Products Company, which would later become one of the largest liquor companies in North America.
Though he was a high school drop-out and not particularly well-connected socially at the time, Rosenstiel happened to have a “chance” meeting with Winston Churchill in 1922 while on vacation in the French Riviera. According to the New York Times, Churchill “advised him [Rosenstiel] to prepare for the return of liquor sales in the United States.” Rosenstiel somehow managed to secure the funding of the elite and respected Wall Street firm Lehman Brothers to finance his purchase of shuttered distilleries.
Officially, Rosenstiel is said to have built his company and wealth after Prohibition, by following Churchill’s advice to prepare for Repeal. However, he was clearly involved in bootlegging operations and was even indicted for bootlegging in 1929, though he evaded conviction. Like Bronfman, Rosenstiel was close to organized crime, particularly members of the mostly Jewish-American and Italian-American mob alliance known as the National Crime Syndicate.
Subsequent New York state congressional investigations would allege that Rosenstiel “was part of a ‘consortium’ with underworld figures that bought liquor in Canada [from Samuel Bronfman]”, whose other members were “Meyer Lansky, the reputed organized crime leader; Joseph Fusco, an associate of late Chicago gangster Al Capone and Joseph Linsey, a Boston man Mr. Kelly [the congressional investigator testifying] identified as a convicted bootlegger.” Rosenstiel’s relationship with these men, particularly Lansky, would continue long after Prohibition and Samuel Bronfman, for his part, would also maintain his mob ties.
In addition to his friends in the mob, Rosenstiel also cultivated close ties with the FBI, developing a close relationship with longtime FBI Director J. Edgar Hoover and making Hoover’s right-hand man and longtime assistant at the FBI, Louis Nichols, the Vice President of his Schenley empire in 1957.
Despite their similar backgrounds as bootlegger barons turned “respectable” businessmen, Bronfman’s and Rosenstiel’s personalities were drastically different and their relationship was complicated, at best. One example of the dissimilarities between North America’s top liquor barons was how they treated their staff. Bronfman was not necessarily known for being a cruel boss, whereas Rosenstiel was known for his erratic and “monstrous” behavior towards employees as well as his unusual practice of bugging his offices in order to hear what employees said about him when he wasn’t present.
Rosenstiel was connected to both the FBI and to organized crime
Such differences between Bronfman and Rosenstiel were also reflected in their personal lives. While Bronfman married only once and was loyal to his wife, Rosenstiel was married five times and was known for his relatively closeted bisexual antics, a part of his life that was well-known to many of his close associates and employees.
Though for years there were only hints to this other side of the controversial businessman, details emerged years later during a divorce proceeding brought by Rosenstiel’s fourth wife, Susan Kaufman, that would back the claims. Kaufman alleged that Rosenstiel hosted extravagant parties that included “boy prostitutes” that her husband had hired “for the enjoyment” of certain guests, which included important government officials and prominent figures in America’s criminal underworld. Kaufman would later make the same claims under oath during the hearing of the New York’s State Joint Legislative Committee on Crime in the early 1970s.
Not only did Rosenstiel organize these parties, but he also made sure that their venues were bugged with microphones that recorded the antics of his high-profile guests. Those audio recordings, Kaufman alleged, were then kept for the purpose of blackmail. Though Kaufman’s claims are shocking, her testimony was deemed credible and held in high regard by the former chief counsel of the Crime Committee, New York Judge Edward McLaughlin, and committee investigator William Gallinaro and aspects of her testimony were later corroborated by two separate witnesses who were unknown to Kaufman.
These blackmail “parties” offer a window into an operation that would later become more sophisticated and grow dramatically in the 1950s under Rosenstiel’s “field commander” (a nickname given by Rosenstiel to an individual to be named shortly in this report). Many of the people connected to Rosenstiel’s “field commander” during the 70s and 80s have again found their names in the press following the recent arrest of Jeffrey Epstein.
The “Untouchable” Mobster
Bronfman and Rosenstiel became legendary in the North American liquor business, in part due to their fight for supremacy in the industry, which the New York Times described as often erupting “into bitter personal and corporate battles.” Despite their dueling in the corporate world, the one thing that united the two businessmen more than anything else was their close connection to American organized crime, particularly renowned mobster, Meyer Lansky.
Lansky is one of the most notorious gangsters in the history of American organized crime and is notable for being the only famous mobster that rose to notoriety in the 1920s that managed to die an old man and never serve a day in jail.
Lansky’s long life and ability to avoid prison time was largely the result of his close relationships to powerful businessmen like Bronfman and Rosenstiel (among many others), the Federal Bureau of Investigation (FBI) and the U.S. intelligence community as well as his role in establishing several blackmail and extortion rings which helped him keep the law at arm’s length. Indeed, when Lansky was finally charged with a crime in the 1970s, it was the Internal Revenue Service that brought the charges, not the FBI, and he was charged with and acquitted of tax evasion.
Lansky was remarkably close to both Bronfman and Rosenstiel. Bronfman regularly threw “lavish dinner parties” in Lansky’s honor both during and after Prohibition. These parties were remembered fondly by Lansky’s wife, and Lansky, in turn, did favors for Bronfman ranging from exclusive protection of his shipments during Prohibition to getting him tickets to coveted “fight of the century” boxing matches.
Rosenstiel also threw regular dinner parties honoring Lansky. Susan Kaufman, Rosenstiel’s ex-wife, claimed to have taken numerous pictures of her ex-husband and Lansky socializing and partying together, photos that were also seen by Mary Nichols of The Philadelphia Inquirer. In addition, Lansky, per Kaufman’s recollection, was one of the individuals that Rosenstiel sought to protect from legal scrutiny as part of his child prostitution and blackmail ring targeting high-ranking officials, and he was overheard saying that if the government “ever brings pressure against Lansky or any of us, we’ll use this [a specific recording taken at one of the “parties”] as blackmail.”
Lansky was known to address Rosenstiel as “Supreme Commander,” a title that would later be used to refer to Rosenstiel by another individual deeply connected to the mob and sexual blackmail operations, previously referred to in this report as Rosenstiel’s “Field Commander.”
Lansky also had close ties to the CIA and U.S. military intelligence. During World War II, Lansky –along with his associate Benjamin “Bugsy” Siegel — worked with Naval intelligence in what was codenamed “Operation Underworld,” an operation that the government denied for over 40 years.
Journalist and noted chronicler of CIA covert activities, Douglas Valentine, noted in his book The CIA as Organized Crime: How Illegal Operations Corrupt America and the World that the government’s cooperation with the mafia during World War II led to its expansion after the war and set the stage for its future collaboration with U.S. intelligence.
According to Valentine:
Top government officials were also aware that the government’s Faustian pact with the Mafia during World War II had allowed the hoods to insinuate themselves into mainstream America. In return for services rendered during the war, Mafia bosses were protected from prosecution for dozens of unsolved murders. […]
The Mafia was a huge problem in 1951 [when the Kefauver Committee was convened], equivalent to terrorism today. But it was also a protected branch of the CIA, which was co-opting criminal organizations around the world and using them in its secret war against the Soviets and Red Chinese. The Mafia had collaborated with Uncle Sam and had emerged from World War II energized and empowered. They controlled cities across the country.”
Indeed, the CIA forged ties with Lansky not long after its creation at the behest of CIA counterintelligence chief James J. Angleton. The CIA would later turn to the Lansky-linked mob in the early 1960s as part of its consistently fruitless quest to assassinate the Cuban leader, showing that the CIA maintained its contacts with Lansky-controlled elements of the mafia long after the initial meeting with Lansky took place.
The CIA also had close connections to associates of Lansky, such as Edward Moss, who did public relations work for Lansky and was said to be of “interest” to the CIA by the agency’s then-inspector general J.S. Earman. Harry “Happy” Meltzer was also another Lansky associate that was a CIA asset and the CIA asked Meltzer to join an assassination team in December 1960.
In addition to the CIA, Lansky was also connected to a foreign intelligence agency through Tibor Rosenbaum, an arms procurer and high-ranking official in Israel’s Mossad, whose bank – the International Credit Bank of Geneva – laundered much of Lansky’s ill-gotten gains and recycled it into legitimate American businesses.
Lansky outside the High Court of Israel where he sought permission to emigrate in 1972. Photo | AP
Journalist Ed Reid, author of the Virginia Hill biography The Mistress and the Mafia, wrote that Lansky was attempting to entrap powerful people through sexual blackmail as far back as 1939. Reid contends that Lansky sent Ms. Hill to Mexico, where his West Coast connections had established a drug ring that later involved the OSS, the forerunner to the CIA, to seduce numerous “top politicians, army officers, diplomats and police officials.”
Eventually, Lansky was credited with obtaining compromising photos of FBI director J. Edgar Hoover sometime in the 1940s, which showed “Hoover in some kind of gay situation”, according to a former Lansky associate who also said that Lansky had often claimed, “I fixed that sonofabitch.” The photos showed Hoover engaged in sexual activity with his long-time friend, FBI deputy director Clyde Tolson.
At some point, these photos fell into the hands of CIA counterintelligence chief James J. Angleton, who later showed the photos to several other CIA officials, including John Weitz and Gordon Novel. Angleton was in charge of the CIA’s relationship with the FBI and Israel’s Mossad until he left the agency in 1972 and, as was recently mentioned, he was also in contact with Lansky.
Anthony Summers , former BBC journalist and author of Official and Confidential: The Secret Life of J. Edgar Hoover, has argued that it was not Lansky, but William Donovan, the director of the OSS, who obtained the original photos of Hoover and later shared them with Lansky.
Summers also stated that “To [gangster Frank] Costello and Lansky, the ability to corrupt politicians, policemen and judges was fundamental to Mafia operations. The way they found to deal with Hoover, according to several mob sources, involved his homosexuality.” This anecdote shows that Lanksy and the CIA maintained a covert relationship, which included, among other things, the sharing of blackmail material (i.e. “intelligence”).
It is also possible that Hoover was ensnared by the mob during one of Rosenstiel’s blackmail “parties,” at which Hoover sometimes found himself in attendance with prominent figures of the mafia. Hoover was said to have worn women’s clothing at the some of the events and Meyer Lansky’s wife later said that her husband had photos of the former FBI director in drag. Furthermore, Hoover is on record showing an unusual concern in the FBI’s handling of Rosenstiel’s criminal links as early as 1939, the same year that his close associate Lansky was actively orchestrating the sexual blackmail of powerful political figures.
The blackmail acquired on Hoover and the mob’s possession of the evidence has been cited as a major factor in Hoover’s decades-long denial that nationwide networks of organized crime were a serious issue. Hoover asserted that it was a decentralized, local issue and therefore outside of the bureau’s jurisdiction. By the time Hoover finally acknowledged the existence of national organized crime networks in 1963, it was so entrenched in the U.S. establishment that it was untouchable.
Congressional crime consultant Ralph Salerno told Summers in 1993 that Hoover’s willful ignorance of organized crime for most of his career as FBI director “allowed organized crime to grow very strong in economic and political terms, so that it became a much bigger threat to the wellbeing of this country than it would have been if it had been addressed much sooner.”
J. Edgar Hoover: Blackmail Victim?
Most records place the beginning of Hoover’s relationship with Rosenstiel in the 1950s, the same decade when Susan Kaufman reported that Hoover was attending Rosenstiel’s blackmail parties. Rosenstiel’s FBI file, obtained by Anthony Summers, cites the first Rosenstiel meeting as taking place in 1956, though Summers notes that there is evidence that they had met much earlier. After requesting the meeting, Rosenstiel was granted a personal face to face with the director in a matter of hours. The FBI file on Rosenstiel also reveals that the liquor baron heavily lobbied Hoover to aid his business interests.
During that time, the salacious details of Hoover’s sex life were already known to the U.S. intelligence community and to the mob, and Hoover was aware that they knew of his closeted sexuality and penchant for women’s clothing. Yet, Hoover apparently seemed to embrace the very type of sexual blackmail operation that had compromised his private life, given that he was seen at many of Rosenstiel’s “blackmail” parties in the 1950s and 1960s, including at venues such as Rosenstiel’s personal home and later at Manhattan’s Plaza Hotel. Hoover’s penchant for dressing in drag was also described by two witnesses who were not connected to Susan Kaufman.
Hoover with Dorothy Lamour on the set of The Greatest Show on Earth in 1951
Soon after their first “official” meeting, the public relationship between the two men quickly flourished, with Hoover even sending Rosenstiel flowers when he fell ill. Summers reported that, in 1957, Rosenstiel was heard telling Hoover during a meeting, “your wish is my command.” Their relationship remained close and intimate throughout the 1960s and beyond.
Like Rosenstiel, Hoover was well-known for amassing blackmail on friend and foe alike. Hoover’s office contained “secret files” on numerous powerful people in Washington and beyond, files he used to gain favors and protect his status as FBI director for as long as he wished.
Hoover’s own propensity for blackmail suggests that he may have associated with Rosenstiel’s sexual blackmail operation more directly, given he already knew he was compromised and his involvement in the operation would have served as a means of procuring the blackmail he coveted for his own purposes. Indeed, if Hoover was merely being blackmailed and extorted by the Lansky-Rosenstiel connected mob, it is unlikely that he would have been so friendly to Rosenstiel, Lansky and the other mobsters at these gatherings and participated in them with such regularity.
According to journalist and author Burton Hersh, Hoover was also tied to Sherman Kaminsky, who ran a sexual blackmail operation in New York involving young male prostitutes. That operation was busted and investigated in 1966 extortion probe led by Manhattan District Attorney Frank Hogan, though the FBI quickly took over the investigation and photos of Hoover and Kaminsky together soon disappeared from the case file.
Hoover and Rosenstiel’s deep ties would continue to develop over the years, an example of which can be seen in Rosenstiel’s hiring of long-time Hoover aide Louis Nichols as the Vice President of his Schenley liquor empire and Rosenstiel’s donation of over $1 million to the J. Edgar Hoover Foundation, which Nichols also ran at the time.
There is also more than one documented occasion wherein Hoover attempted to use blackmail to protect Rosenstiel and his “field commander,” none other than the infamous Roy Cohn, the other key figure in Rosenstiel’s sexual blackmail operation involving minors.
The Making of a Monster
Decades after his death, Roy Cohn remains a controversial figure in large part because of his close, personal relationship with current U.S. President Donald Trump. Yet reports on Cohn, both in recent and in past years, often miss the mark in their characterization of the man who became closely associated with the Reagan White House, the CIA, the FBI, organized crime and, incidentally, many of the figures who would later surround Jeffrey Epstein.
To understand the true nature of the man, it is essential to examine his rise to power in the early 1950s, when at just 23 years old, he became a key figure in the high-profile trial of Soviet spies Ethel and Julius Rosenberg and later in the House Un-American Activities Committee (HUAC) led by Senator Joseph McCarthy.
Cohn’s dedication to anti-communist activities in the 1950s is allegedly what first endeared him to J. Edgar Hoover who he first met in 1952. During that meeting, as described by Hersh in Bobby and J. Edgar: The Historic Face-Off Between the Kennedys and J. Edgar Hoover That Transformed America, Hoover expressed admiration for Cohn’s aggressive and manipulative tactics and told Cohn to “call me directly” whenever he had information worth sharing. From that point on, Cohn and Hoover “traded favors, effusive compliments, gifts and elaborate private dinners. It quickly became ‘Roy’ and ‘Edgar.’” Hersh also describes Hoover as Cohn’s soon to be “consigliere.”
The date and circumstances around Cohn’s introduction to Rosenstiel is harder to come by. It is possible that the connection was made through Roy Cohn’s father, Albert Cohn, a prominent judge and an influential figure in the New York City Democratic Party apparatus then-run by Edward Flynn. It was later revealed that the Democratic organization dominated by Flynn and based in the Bronx had long-standing connections to organized crime, including associates of Meyer Lansky.
Regardless of how or when it began, the relationship between Cohn and Rosenstiel was close and was often likened to that of a father and son. They were said to frequently salute each other in public and remained close until Rosenstiel was near death, at which point Cohn attempted to trick his then-barely conscious and senile “friend” and client into naming him the executor and trustee of the liquor magnate’s estate, valued at $75 million (more than $334 million in today’s dollars).
LIFE magazine reported in 1969 that Cohn and Rosenstiel had for years referred to one another as “Field Commander” and “Supreme Commander,” respectively. Media references to these nicknames appear in other articles from the period.
Though LIFE and other outlets had interpreted this as merely an anecdote about the nicknames shared in jest between close friends, the fact that notorious crime lord Meyer Lansky also called Rosenstiel “Supreme Commander” and the fact that Cohn and Rosenstiel would later become intimately involved in the same pedophile sex ring, suggests that there may have been more to these “nicknames.” After all, the mob to which Rosenstiel was connected often used military-themed titles like “soldier” and “lieutenant” to differentiate the rank and importance of its members.
Once he had made his connection with Hoover, Cohn’s star began to rise even higher in Washington. Hoover’s recommendation of Cohn would become the deciding factor in his appointment as Sen. McCarthy’s general counsel over Robert Kennedy, a rival and bitter enemy of Cohn’s.
McCarthy covers the mic while having a whispered discussion with Cohn during a 1954 committee hearing. Photo | AP
Though Cohn was ruthless and seemingly untouchable as McCarthy’s counsel and helped the Senator destroy many careers during both the red and lavender scares, his antics in relation to his work on the committee would eventually lead to his downfall after he attempted to blackmail the Army in return for preferential treatment for committee consultant and Cohn’s rumored lover, David Schine.
After he was forced to leave McCarthy’s side due to the scandal, Cohn returned to New York to live with his mother and practice law. A few years later New York Judge David Peck, a long-time associate of former CIA director Alan Dulles, orchestrated Cohn’s hire to the New York law firm, Saxe, Bacon and O’Shea, which would later become Saxe, Bacon and Bolan after Tom Bolan, a friend of Cohn’s, became a partner in the firm. Upon his hire, Cohn brought the firm a slew of mafia-linked clients, including high-ranking members of the Gambino crime family, the Genovese crime family and, of course, Lewis Rosenstiel.
What happened in Suite 233?
The connections Roy Cohn built during the 1950s made him a well-known public figure and translated into great political influence which peaked during the presidency of Ronald Reagan. Yet, as Cohn built his public image, he was also developing a dark private life which would come to be dominated by the same blackmail pedophile racket that appears to have first begun with Lewis Rosenstiel.
One of the “blackmail” parties Susan Kaufman attended with her then-husband Lewis Rosenstiel was hosted by Cohn in 1958 at Manhattan’s Plaza Hotel, suite 233. Kaufman described Cohn’s suite as a “beautiful suite… all done in light blue.” She described being introduced to Hoover, who was in drag, by Cohn, who told her that Hoover’s name was “Mary” in a fit of barely concealed laughter. Kaufman testified that young underage boys were present and Kaufman claimed that Cohn, Hoover and her ex-husband engaged in sexual activity with these minors.
New York attorney John Klotz, tasked with investigating Cohn for a case well after Kaufman’s testimony, also found evidence of the “blue suite” at the Plaza Hotel and its role in a sex extortion ring after combing through local government documents and information gathered by private detectives. Klotz later told journalist and author Burton Hersh what he had learned:
Roy Cohn was providing protection. There were a bunch of pedophiles involved. That’s where Cohn got his power from — blackmail.”
Perhaps the most damning confirmation of Cohn’s activities in Suite 233 comes from statements made by Cohn himself to former NYPD detective and ex-head of the department’s Human-Trafficking and Vice-related Crimes division, James Rothstein. Rothstein later told John Decamp, a former Nebraska state senator who investigated a government-connected child sex ring based in Omaha, among other investigators, that Cohn had admitted to being part of a sexual blackmail operation targeting politicians with child prostitutes during a sit-down interview with the former detective.
Rothstein told John DeCamp the following about Roy Cohn:
Cohn’s job was to run the little boys. Say you had an admiral, a general, a congressman, who did not want to go along with the program. Cohn’s job was to set them up, then they would go along. Cohn told me that himself.”
Rothstein later told Paul David Collins, a former journalist turned researcher, that Cohn had also identified this sexual blackmail operation as being part of the anti-communist crusade of the time.
The fact that Cohn, per Rothstein’s recollection, stated that the child-sex blackmail ring was part of the government-sponsored anticommunist crusade suggests that elements of the government, including Hoover’s FBI, may have been connected at a much broader level than Hoover’s own personal involvement given that the FBI closely coordinated with McCarthy and Cohn for much of the red scare.
It is also worth noting that among Hoover’s many “secret” blackmail files was a sizeable dossier on Senator McCarthy, the contents of which strongly suggested that the Senator himself was interested in underage girls. According to journalist and author David Talbot, Hoover’s file on McCarthy was “filled with disturbing stories about McCarthy’s habit of drunkenly groping young girls’ breasts and buttocks. The stories were so widespread that they became ‘common knowledge’ in the capital, according to one FBI chronicler.”
Talbot, in his book The Devil’s Chessboard, also cites Walter Trohan, Washington Bureau Chief of the Chicago Tribune, as having personally witnessed McCarthy’s habit of molesting young women. “He just couldn’t keep his hands off young girls,” Trohan would later say. “Why the Communist opposition didn’t plant a minor on him and raise the cry of statutory rape, I don’t know.” Perhaps the answer lies in the fact that those “planting” minors on their political foes were McCarthy’s allies and close associates, not his enemies.
The question that necessarily arises from revelations regarding Cohn’s activities in Suite 233 is who else was Cohn “protecting” and servicing with underage prostitutes? One of them could very well have been one of Cohn’s close friends and clients, Cardinal Francis Spellman of the Archdiocese of New York, who was said to have been present at some of these parties Cohn hosted at the Plaza Hotel.
Spellman, one of the most powerful figures in the Catholic Church in North America who was sometimes referred to as “America’s Pope” was accused of not only condoning pedophilia in the Catholic church and ordaining known pedophiles including Cardinal Theodore “Uncle Teddy” McCarrick, but also engaging in it himself to such an extent that many New York area priests widely referred to him as “Mary.” Furthermore, J. Edgar Hoover was said to have a file detailing the Cardinal’s sex life, suggesting Spellman’s involvement in the ring and pedophile protection racket in which Cohn and Hoover were personally involved.
Cardinal Francis ‘Franny’ Spellman. Photo | Museum of the City of New York
People close to Cohn often remarked that he was frequently surrounded by groups of young boys, but seemed to think nothing of it. Similar off-handed comments about Epstein’s penchant for minors were made by those close to him prior to his arrest.
Controversial Republican political operative and “dirty trickster” Roger Stone, who — like Donald Trump — was also a protégé of Cohn, said the following about Cohn’s sex life during an interview with The New Yorker in 2008:
Roy was not gay. He was a man who liked having sex with men. Gays were weak, effeminate. He always seemed to have these young blond boys around. It just wasn’t discussed. He was interested in power and access.” (emphasis added)
Compare this quote from Stone to what Donald Trump, who was also close to Cohn, would later say about Jeffrey Epstein, with whom he was also closely associated:
I’ve known Jeff for 15 years. Terrific guy. He’s a lot of fun to be with. It is even said that he likes beautiful women as much as I do, and many of them are on the younger side. No doubt about it — Jeffrey enjoys his social life.” (emphasis added)
Though it is unknown how long the sex ring at the Plaza Hotel continued, and if it continued after Cohn’s death from AIDS in 1986, it is worth noting that Donald Trump purchased the Plaza Hotel in 1988. It would later be reported and confirmed by then-attendees that Trump “used to host parties in suites at the Plaza Hotel when he owned it, where young women and girls were introduced to older, richer men” and “illegal drugs and young women were passed around and used.”
Andy Lucchesi, a male model who had helped organize some of these Plaza Hotel parties for Trump said the following when asked about the age of the women present: “A lot of girls, 14, look 24. That’s as juicy as I can get. I never asked how old they were; I just partook. I did partake in activities that would be controversial, too.”
The Roy Cohn Machine
Roy Cohn was only at the beginning of his career when he waded his way into the underground sexual blackmail ring apparently led by Lewis Rosenstiel. Indeed, when Cohn first met Hoover, he was only 23 years old. Over the next three decades or so, before his death from AIDS-related complications in 1986 at the age of 56, Cohn built a well-oiled machine, largely through his close friendships with some of the country’s most influential figures.
Among Cohn’s friends were top media personalities like Barbara Walters, former CIA directors, Ronald Reagan and wife Nancy, media moguls Rupert Murdoch and Mort Zuckerman, numerous celebrities, prominent lawyers like Alan Dershowitz, top figures in the Catholic Church and leading Jewish organizations like B’nai B’rith and the World Jewish Congress. Many of the same names that surrounded Cohn until death in the late 1980s would later come to surround Jeffrey Epstein, with their names later appearing in Epstein’s now-infamous “little black book”.
Reagan meets with Rupert Murdoch, U.S. Information Agency Director Charles Wick, and Roy Cohn in the Oval Office in 1983. Photo | Reagan presidential library
While President Trump is clearly connected to both Epstein and Cohn, Cohn’s network also extends to former President Bill Clinton, whose friend and longtime political advisor, Richard “Dirty Dick” Morris, was Cohn’s cousin and close associate. Morris was also close to Clinton’s former communications director, George Stephanopoulos, who is also associated with Jeffrey Epstein.
Yet, these were only Cohn’s connections to respectable members of the establishment. He was also known for his deep connections to the mob and gained prominence largely for his ability to connect key figures in the criminal underworld to respected influential figures acceptable to the public sphere. Ultimately, as New York attorney John Klotz stated, Cohn’s most powerful tool was blackmail, which he used against friend and foe, gangster or public official alike. How much of that blackmail he acquired through his sexual blackmail operation will likely never be known.
As Part II of this exclusive investigation will reveal, Cohn and Epstein, and the sexual blackmail operations they ran share many things in common, including not only many of the same famous friends and patrons, but also connections to intelligence agencies and consortiums of mob-linked businessmen, the modern-day equivalents of Samuel Bronfman and Lewis Rosenstiel who have since rebranded as “philanthropists.”
Part II will also reveal that Cohn’s operation was known to have successors, as revealed by a series of scandals in the early 1990s that have since been swept under the rug. The significant amount of overlap between Epstein’s and Cohn’s covert activities in sexual blackmail and their ties to many of the same powerful individuals and circles of influence strongly suggest that Epstein was one of Cohn’s successors.
As will be shown in the final installment of this report, Epstein is only the latest incarnation of a much older, more extensive and sophisticated operation that offers a frightening window into how deeply tied the U.S. government is to the modern-day equivalents of organized crime, making it a racket truly too big to fail.
Whitney Webb is a MintPress News journalist based in Chile. She has contributed to several independent media outlets including Global Research, EcoWatch, the Ron Paul Institute and 21st Century Wire, among others. She has made several radio and television appearances and is the 2019 winner of the Serena Shim Award for Uncompromised Integrity in Journalism.
Israeli settler appointed as Consul General in New York after being rejected in Brazil
Palestinian Information Center – March 28, 2016
OCCUPIED JERUSALEM – Israeli Prime Minister Benjamin Netanyahu appointed Monday morning the former head of Yesha settlement council Danny Dayan as Israel’s Consul General in New York after he failed to nominate him as an ambassador to Brazil.
In appointing Dayan, Netanyahu withdrew Dayan’s apportionment as Israel’s ambassador to Brazil after the Brazilian government refused to accept him due to his former role as a settler leader. Asked to comment, Dayan told Army Radio that he was not influenced by Brazil’s refusal. “There was no alternative but New York.”
Dayan was earlier nominated to be Israeli ambassador to Brazil, but Brazil strongly refused his appointment due to his ties to Israeli illegal settlements in the occupied West Bank.
Dayan headed the Yesha Council of Jewish settlements in the occupied West Bank between 2007 and 2013.
NY protest slams mayor over pro-Israel policy, police brutality
Press TV – October 30, 2015
American activists and protesters have staged a rally in New York City to condemn the stance of Mayor Bill de Blasio on Israel and police brutality in the US.
Pro-Palestine activists from the movement known as the ‘Black Lives Matter,’ likened US police forces in New York to Israeli soldiers in their violence and brutality against Palestinians.
They called for justice for Palestinians facing Israel’s aggression in the occupied territories.
The protesters rallied in front of the Sheraton Hotel in New York’s Times Square, where the city’s mayor was holding a re-election campaign.
At one point, about a dozen activists pushed their way into the lobby of the hotel before being repelled by security, local media reports noted.
The protesters were also angry over police brutality and their treatment of people of color.
Authorities in New York are under fire for the deaths of a number of unarmed citizens at the hands of US law enforcement officers. Most victims are usually African Americans.
Earlier in the day, the New York mayor dismissed the protesters as uninformed.
Blasio launched his re-election campaign toward the 2017 race on Thursday night, reportedly banking a million dollars during the hotel fundraiser, as other reports said the public opinion was evenly split on his job performance.
The event cost as much as some 5,000 dollars for each person in attendance.
Corporate Welfare Fails to Deliver the Jobs
The Sad Case of Start-Up NY
By Lawrence S. Wittner | May 28, 2015
For several decades, state and local governments have been showering private businesses with tax breaks and direct subsidies based on the theory that this practice fosters economic development and, therefore, job growth. But does it? New York State’s experience indicates that, when it comes to producing jobs, corporate welfare programs are a bad investment. This should be instructive to state and local officials across the US.
In May 2013, New York Governor Andrew Cuomo, with enormous fanfare, launched a campaign to establish Tax-Free NY — a scheme providing tax-free status for ten years to companies that moved onto or near the state’s public college and university campuses. According to Cuomo, this would “supercharge” the state’s economy and bring job creation efforts to an unprecedented level. It was “a game-changing initiative,” the governor insisted, and — despite criticism from educators, unions, and some conservatives — local officials fell into line. Reluctant to oppose this widely-touted jobs creation measure, the state legislature established the program — renamed Start-Up NY and including some private college campuses — that June.
After that, Start-Up NY moved into high gear. A total of 356 tax-free zones were established at 62 New York colleges and universities, with numerous administrators hired to oversee the development of the new commercial programs on their campuses. New York State spent $47 million in 2014 — and might have spent as much as $150 million over the years — advertising Start-Up NY in all 50 states of the nation, with ads focused on the theme: “New York Open for Business.” Nancy Zimpher, the chancellor of the State University of New York, crowed: “Nowhere in the country do new businesses and entrepreneurs stand to benefit more by partnering with higher education than in New York State, thanks to the widespread success of Governor Cuomo’s Start-Up NY program. With interest and investment coming in from around the globe and new jobs being created in every region, Start-Up NY has provided a spark for our economy and for SUNY.” This was, she declared, a “transformative initiative.”
But how “transformative” has Start-Up NY been? According to the Empire State Development Corporation, the government entity that oversees more than 50 of the state’s economic development programs, during all of 2014 Start-Up NY generated a grand total of 76 jobs. Moreover, the vast majority of the 30 companies operating under the program had simply shifted their operations from one region of the state to another. The New York Times reported that, of the businesses up and running under Start-Up NY, just four came from out of state. Indeed, in some cases, the “new” businesses had not even crossed county lines. One company moved one mile to qualify for the tax-free program. Furthermore, when it came to business investment, there was a substantial gap between promises and implementation. As the Empire State Development Corporation noted, companies promised $91 million in investments over a five year period, but only invested $1.7 million of that in 2014. Thus, not surprisingly, during 2014 the companies operating under Start-Up NY created only 4 percent of the new jobs they had promised.
Actually, Start-Up NY’s dismal record is not much worse than that of New York’s other economic development programs. According to a December 2013 study by the Alliance for a Greater New York, the state spends approximately $7 billion every year on subsidies to businesses, including “tax exemptions, tax credits, grants, tax-exempt bonds, and discounted land to corporations, ostensibly in the name of job creation, economic growth, and improved quality of life for all New Yorkers.” But 33 percent of spending by the state’s Industrial Development Agencies resulted in no job promises, no job creation, or a loss of jobs. In fact, “with little accountability, businesses often take the money and run.”
A recent report by state comptroller Thomas DiNapoli reached similar conclusions. According to DiNapoli, in 2014 the programs overseen by the Empire State Development Corporation cost the state $1.3 billion (not including the voluminous tax breaks granted to companies) and helped create or retain only 14,779 jobs — at a cost to taxpayers of $87,962 per job. The comptroller’s scathing report concluded that there was no attempt by the state agency to ascertain whether its programs “have succeeded or failed at creating good jobs for New Yorkers or whether its investments are reasonable.”
Of course, instead of shoveling billions of dollars into the coffers of private, profit-making companies, New York could invest its public resources in worthwhile ventures that generate large numbers of jobs — for example, in public education. In 2011, as a consequence of severe cutbacks in state funding of New York’s public schools and a new state law that capped local property tax growth — two measures demanded by Governor Cuomo — 7,000 teachers were laid off and another 4,000 teacher positions went unfilled. Overall, 80 percent of school districts reported cutting teaching positions. Today, with New York’s schools severely underfunded — more than half of them receiving less state aid now than they did in 2008-2009 — this pattern of eliminating teachers and closing down educational opportunities for children has continued. But what if the billions of dollars squandered on subsidizing private businesses in the forlorn hope that they will hire workers were spent, instead, on putting thousands of teachers back to work? Wouldn’t this policy also create a better educated workforce that would be more likely to secure employment? And wouldn’t this shift in investment have the added advantage of creating a more knowledgeable public, better able to understand the world and partake in the full richness of civilization?
It’s a shame that many state and local government officials have such a limited, business-oriented mentality that they cannot imagine an alternative to corporate welfare.
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Lawrence S. Wittner is Professor of History emeritus at SUNY/Albany and is syndicated by PeaceVoice. His latest book is a satirical novel about university corporatization and rebellion, What’s Going On at UAardvark?
Where the Argentine Debt Case Stands Now, and Why it Still Matters
By Aldo Caliari – NACLA – 04/06/2015
In NML v Argentina, the world continues to witness a rare and surreal spectacle: the unpredictable consequences unleashed by a U.S. judge going rogue on the law. Last June, the U.S. Supreme Court validated a lower court ruling that granted investment group NML Capital the right to obtain payment of 100% of its claims against the Argentine government, setting a legal precedent whose impact is just beginning to become clear.
NML’s actions against Argentina demonstrate why the firm is frequently described as a “vulture fund.” After initially acquiring Argentine sovereign debt bonds following the country’s 2002 default, the investment group refused to accept the terms of the agreement that Argentina reached with over 92% of bondholders, in 2005 and 2010. Then, NML sued in U.S. courts for payment of 100% of its bonds’ value, plus interest, aiming to get what amounts to a 1600% return on its original investment.
NML’s lawsuit was part of a carefully thought-out script during Argentina’s long debt restructuring process, a strategy that vulture funds have exploited in the past. First, buy the debt of a country in trouble, on the cheap. Second, systematically reject any offer of a deal worth less than the whole claim. Third, wait until the country’s circumstances improve, aided by a mix of debt relief granted by other creditors and the normal healthy impacts that such debt cancellation, if timely and sufficient, will have on the debtor country’s economy. Then, sue for the whole amount of the claim plus interest.
It is easy to see that if all creditors followed this playbook—waiting for the debtor to get better without sacrificing any part of their credit—the strategy would not work.
Unfortunately, at the international level and for nations issuing sovereign debt, there is no recourse to anything like bankruptcy, so they are exposed to rulings – even divergent ones – made by judges with jurisdiction over particular bonds.
In this particular case, U.S. Judge Thomas Griesa decided to depart from the traditionally accepted interpretation of the pari passu clause typically inserted in sovereign bonds. Whereas the standard pari passu clause is normally understood to grant equality of rank and treatment, Griesa extended the interpretation to forbid Argentina from making payments on its restructured debt without also paying the holdout bondholders.
Argentina went ahead and deposited the payment for its restructured bondholders with the banks the instruments designate as fiduciaries – in charge of collecting the payment and giving it to the bondholders. Since the banks took the judge’s order to mean they could not disburse those funds, an anomaly has emerged: a country complying with its debt obligations falling into default due to a foreign court preventing payment from being disbursed. Amazingly, the unusual nature of the ruling was only the beginning of a sui generis scenario that continues to unfold.
Holders of bonds that were restructured under European or Argentinean jurisdiction filed claims arguing that by blocking payment on their credits—even when made by U.S. banks—Judge Griesa had overstepped his jurisdiction. In fact, the judge has already granted several “one-and-only-time” exceptions so the fiduciary banks could make payments to certain non-U.S. bondholders. When one of the banks, Citi, requested that the injunction be lifted for those payments, to avoid requesting an exception every time interest payments came due, the judge denied the request, only to later backtrack on his own decision. But while agreeing to give Citi this maneuvering room, the judge expanded the initial order – and the jurisdiction overstep – by ruling that future debt under Argentine law, if it will or can be paid in U.S. dollars, qualifies as external debt. So, financial entities helping Argentina make any such payments would be prevented from doing so by the court order.
An English court, in one of these cases, ruled that payments deposited with the fiduciary institution in New York are the property of the bondholders, and no longer belong to the debtor country. Therefore, they should not fall under the jurisdiction of a US judge. Indeed, therein lies another anomaly created by the judge’s ruling: His decision ignored the arrangement Argentina reached with 92% of creditors, but then issued measures that affect payments to these majority creditors—arguably bringing them coercively under his jurisdiction.
The Argentinean Congress also passed legislation according to which it will give non-restructured bondholders – such as NML – the same deal it granted to the restructured ones, but no more. To fulfill this commitment, the government has been depositing these payments in an Argentinean banking institution , which the “vulture funds” could claim at any moment if they so wished (so far they have not).
Some observers speculated that the Argentinean government would agree to settle with the vulture funds after expiration of the RUFO clause. RUFO stands for “right upon future offer” and is inserted in the restructured bonds to promise their holders they will have a right to be offered any better deal that other bondholders receive in the future. If Argentina had settled before the expiration of the clause, it could have faced immediate demands from majority bondholders for payments proportionally equal to those made to NML. But the expiration of the clause in January did not bring any change to Argentina’s offer to the vulture funds. These observers’ speculation failed to recognize that a settlement where NML gets paid the whole amount it demands—even in the absence of the “RUFO effects”—could invite lawsuits from other non-restructured bondholders. In fact, in the wake of the Supreme Court’s ruling last June, some of those bondholders have already filed suit hoping to follow in the footsteps of NML. Since these investors hold claims to some $15 billion, this is hardly an advisable course of action for Argentina.
Regardless of what happens with Argentina, however, repercussions from Griesa’s decision reach much farther. The ruling continues a trend that, legal experts say, has seen holdouts increasingly better treated by courts, at the expense of the soundness of sovereign debt restructurings. What former IMF economist Anne Krueger characterized in 2003 as a gap in the international financial architecture is now wider than ever. By increasing the potential rewards of holdout behavior, this recent judicial precedent will make future debt crises harder to resolve, with unpredictable systemic consequences.
At the same time, creditors might opt for a jurisdiction where the traditional understanding of pari passu still holds – such as England– at the expense of New York’s current dominance as a preferential jurisdiction for issuing sovereign debt. Indeed, a large number of prominent economists warned of this possibility following Griesa’s ruling.
Last September, facing the United States and other countries’ continuing resistance to reach a consensus, developing countries voted to create a sovereign debt workout mechanism, and negotiations have begun on establishing such a legal framework at the United Nations. Even in the worst-case scenario—failure to get all countries on board—these negotiations would create a U.N.-endorsed standard for settling future sovereign debt crises. If history is any guide, there is one thing we know for sure: sooner or later there will be a country that needs to resort to it.
Aldo Caliari has been, since 2000, staff at the Washington DC-based Center of Concern where, since 2002, he has been Director of the Rethinking Bretton Woods Project, focusing on linkages between trade and finance policy, global economic governance, debt, international financial architecture and human rights in international economic policy.
NYPD Shutters Muslim Mapping Unit – But What About Other Tactics?
By Noa Yachot | ACLU | April 15, 2014
The New York Police Department is disbanding the unit that mapped New York’s Muslim communities, their places of worship, and businesses they frequent – based on nothing but their religious beliefs and associations. To this we say: Good Riddance.
But the end of the Zone Assessment Unit – better known by its former, more apt name, the Demographics Unit – doesn’t necessarily mean an end to the NYPD’s unconstitutional surveillance of New York’s Muslims.
The NYPD’s discriminatory spying program has many components, of which the Demographics Unit was just one. (The ACLU, along with the NYCLU and CLEAR Project at CUNY Law School sued the NYPD over the program – read about our case here.) Before we celebrate the end of bias-based policing, we need to ensure that the other abusive tactics employed by the NYPD meet the same fate as the unit. For example:
- Use of informants: A wide network of NYPD informants have infiltrated community organizations, mosques, restaurants, bookstores, and more to monitor, record, and take notes on innocent people and innocuous conversations. This needs to stop.
- Designation of entire mosques “terrorism enterprises”: The NYPD has used “terrorism enterprise investigations” against entire mosques to justify the surveillance of as many people as possible. That unmerited designation has allowed the police department to record sermons and spy on entire congregations.
- Discriminatory use of surveillance cameras: Cameras have been set up outside mosques and community events – even weddings – to record community members’ comings and goings and collect license plate numbers of congregants and attendees.
- Radicalization theory: The NYPD must disavow its debunked “radicalization” theory, on which discriminatory surveillance is based. This misguided notion, which we’ve described in detail here, treats with suspicion people engaging in First Amendment-protected activities including “wearing traditional Islamic clothing [and] growing a beard,” abstaining from alcohol, and “becoming involved in social activism” – meaning, basically, anyone who identifies as Muslim, harbors Islamic beliefs, or engages in Islamic religious practices.
- Discriminatory surveillance by other units: The Demographics Unit’s discriminatory mapping activities shouldn’t be carried out by other parts of the NYPD and its Intelligence Division.
The Demographics Unit has sown fear and mistrust among hundreds of thousands of innocent New Yorkers – creating “psychological warfare in our community,” Linda Sarsour of the Arab American Association of New York told the New York Times. Shutting it down is a welcome step, but it’s only the first one. New York’s Muslims — and all its communities — deserve more and better from their police force than bias-based policing.
NY state steps up surveillance on…kids
New York state authorities are planning to step-up surveillance – this time, on school kids. The program, which is to be launched state-wide, is supposed to gather information on students starting from the age of five. And as RT’s Marina Portnaya reports, the move is finding little support among parents.
New York State Senate passes bill targeting the American Studies Association
MEMO | February 3, 2014
The New York State Senate has overwhelmingly passed a bill that targets the American Studies Association (ASA) for supporting an academic and cultural boycott of Israeli institutions. The bill is due to be discussed this week by the New York State Assembly’s Higher Education Committee, and if passed the bill would be voted on by the full assembly shortly thereafter. The governor also has to approve any bill before it becomes law.
Members of ASA voted in December 2013 to endorse the call by the Palestinian Campaign for the Academic & Cultural Boycott of Israel. Shortly afterwards, the Native American and Indigenous Studies Association also announced its support for the boycott. Both follow the precedent set by the Asian American Studies Association in April 2013.
Al-Jazeera America reported that the New York bill, sponsored by Democratic Senator Jeff Klein, passed the state senate by a vote of 56-4 and would “prevent academic institutions from using state aid to pay for membership fees to organisations like the ASA or to reimburse state employees for travel or lodging associated with ASA travel.”
In a statement released by his office, Klein threatened that, “I will not allow the enemies of Israel or the Jewish people to gain an inch in New York.”
The Palestinians calling for the boycott, as part of the wider Boycott, Divestment and Sanctions (BDS) movement, are protesting the on-going Israeli occupation of Palestine.
According to Students for Justice in Palestine, the bill has wider ramifications than just targeting the ASA. The group said in an e-mail that: “If [the bill] becomes law it would prohibit public universities and colleges from using any taxpayer money on groups that support boycotts of Israel. For instance, such funds could not be used for travel or lodging for a faculty member attending a meeting of a group that supports a boycott of Israel.”
Dima Khalidi of the Palestine Solidarity Legal Support and Cooperating Counsel with the Centre for Constitutional Rights noted that the bill clearly aims to “discourage expressive activities such as boycotts based on the legislators’ personal disagreement with the content of the expression.” She added that: “Painting the ASA boycott resolution as discriminatory is not only inaccurate, but also distracts from the fact that its purpose is in fact to protest the human rights violations for which Israel is responsible, and the discriminatory policies and practices of the Israeli government. These bills would be both a violation of free speech and academic freedom, which the proposed legislation cynically purports to defend.”
FBI Arrests Michael Grimm’s Girlfriend; Meanwhile Another Congress Member Implicated
Diana Durand (L) has been arrested in connection with illegal campaign contributions allegedly made to the 2010 campaign of New York Republican Congressman Michael Grimm (R)
By Richard Edmondson | Fig Trees and Vineyards | January 18, 2014
Diana Durand, a Texas woman who apparently has been romantically involved with Congressman Michael Grimm, has been arrested and charged with illegally funneling money into the New York congressman’s 2010 campaign.
She is also accused of steering “straw donations” into the campaign of yet another congress member, Rep. Aaron Schock (R-IL), according to the New York Daily News.
A straw donation is a donation to a political campaign made by one person, though under another person’s name. It is a way of getting around legal limits on the amount of money that can be contributed to political candidates.
Schock, like Grimm, is an avid supporter of Israel.
Durand is 47-years old and was arraigned in federal court in Houston on Wednesday. She has hired an attorney, Stuart Kaplan, who is a longtime associate of Grimm, both having served in the FBI.
Grimm left the FBI in 2006, was elected to Congress in 2010, and in 2012 the FBI opened an investigation into him over possible illegal campaign donations to his 2010 congressional campaign made by supporters of Israeli Rabbi Yoshiyahu Pinto.
Durand is free on $50,000 bond and is scheduled to appear in court on January 30. The following is from the New York Daily News account:
The single mother of one worked with Grimm before his election when he launched a trucking company near Houston. Records list her brother and sister-in-law as executives at the firm.
Sources said Durand and Grimm, 43, who is divorced, were involved romantically, and that she visited him in Washington after his election.
Durand was busted Friday, nearly five months after a Brooklyn judge first ordered her arrest. Feds spent the intervening months in an unsuccessful bid to win her cooperation in an ongoing probe into allegations that Grimm and supporters encouraged donors to make illegal contributions to his 2010 campaign, people with knowledge of the case said.
As I reported previously, campaign donations totaling more than $500,000 were reportedly solicited on Grimm’s behalf by a top Pinto aide, Ofer Biton, who was arrested in 2012 for immigration fraud and who pled guilty to that charge last August.
The FBI had sought to have Biton turn state’s evidence against Grimm, but he has refused, and apparently Durand intends doing likewise. Also as I repoted before, Grimm has friends in high places—Israel—where he reportedly maintains close ties to Prime Minister Benjamin Netanyahu, and according to reports, the Israeli police have done their best to sabotage the FBI’s investigation.
Grimm with Benjamin Netanyahu
Schock would appear to be the second congress member implicated in what seems to be a widening investigation. According to the Chicago Tribune:
Schock, 32, is a prolific fundraiser serving his third term in Congress. He had more than $2.9 million in his war chest in September, when the most recent campaign-finance reports were filed.
The House Ethics Committee has been examining Schock’s fundraising after reports that in 2012, he solicited $25,000 for a super PAC, in excess of a $5,000 limit for lawmakers asking for money for that kind of independent-expenditure group.
The Tribune also reports on a statement issued by Schock’s office in which a spokesperson said, “This literally is the first our office has heard of this issue.”
In March of 2010, Schock and 326 other members of Congress signed onto a letter to Secretary of State Hillary Clinton affirming their “commitment to the unbreakable bond that exists between our country and the State of Israel and to express to you our deep concern over recent tension.”
The “recent tension” referred to by the signatories of the letter is an incident I referred to in my first article on the Grimm investigation. On March 9, 2010 the Israeli government announced the construction of 1,600 new homes, for Jews only, to be built in East Jerusalem. The announcement coincided with a state visit to Israel by US Vice President Joe Biden, and was viewed by many as insulting to America. Clinton referred to it as “deeply negative” for US-Israeli relations.
And as I also noted:
Coincidentally, simultaneous to the slight against Biden, the parents of Rachel Corrie were in Israel for the start of their civil trial charging the Israeli military in the wrongful death of their daughter.
Biden’s response to the announcement of the 1,600 new homes was to issue a servile statement in which he declared that “there is no space between the United States and Israel,” whereupon he boarded a plane and jetted home to America without offering any words of support to the Corrie family.
Schock and the other signers of the letter went on to state:
Our valuable bilateral relationship with Israel needs and deserves constant reinforcement. As the Vice-President said during his recent visit to Israel: “Progress occurs in the Middle East when everyone knows there is simply no space between the U.S. and Israel when it comes to security, none. No space.” Steadfast American backing has helped lead to Israeli peace treaties with Egypt and Jordan. And American involvement continues to be critical to the effort to achieve peace between Israel and the Palestinians.
We recognize that, despite the extraordinary closeness between our country and Israel, there will be differences over issues both large and small. Our view is that such differences are best resolved quietly, in trust and confidence, as befits longstanding strategic allies. We hope and expect that, with mutual effort and good faith, the United States and Israel will move beyond this disruption quickly, to the lasting benefit of both nations.
Born of Morrocon Jews, Pinto is one of the richest rabbis in Israel and is viewed by some as a religious and financial “guru” and a “wonder rabbi.” His adherents in the past have included some of the wealthiest oligarchs in the world and also Israeli political leaders:
In Israel, the list of those seeking Rabbi Pinto’s advice reads like a high-society gossip column: Multi-millionaires Lev Leviev and Nochi Danker, opposition leader Tzipi Livni and former Industry Minister Benjamin Ben Eliezer, who the rabbi supposedly brought out of a coma earlier this year. It is even rumoured that Prime Minister Benjamin Netanyahu consults him.
Now, however, he seems to be in hotwater with Israeli police, who have charged him with attempting to bribe a police official—apparently in a bid to sabotage the FBI’s investigation of Grimm. The FBI is hoping to have Pinto testify against Grimm, and reportedly is in possession of a wiretap audio in which Israeli police can be heard threatening the rabbi.
And finally, as I reported yesterday, Grimm apparently isn’t the only Congress member who has accepted donations from Pinto’s wealthy followers. House Majority Leader Eric Cantor is reported to have as well.
Cantor’s ties to Pinto have also been commented upon by blogger Richard Silverstein, who has written extensively on the FBI’s investigation of Grimm:
The key question is whether the techniques and solicitors used in Grimm’s campaign match those used by Cantor. If so, then the FBI is very interested in Cantor. If Cantor was smarter than Grimm and didn’t use mafiosi to collect cash as Grimm did, then he may not get into trouble. But the very fact that Cantor dipped into Grimm’s cookie jar so heavily is mighty suspicious. Who knows where it will lead?
Grimm, by the way, is not Jewish but of Italian descent, which makes us wonder why the Israelis are apparently so keen to protect him—and after all, there are plenty of Israel supporters in Congress. But as Silverstein notes, it’s insurance:
To be clear, I don’t have a smoking gun that points to Netanyahu involvement in sabotaging the FBI investigation. But I do have a series of strong circumstantial evidence that leads in that direction. But why would Bibi or Sara care about this enough to take such risky actions as agitating the FBI? Let’s return to that grand strategy of electing even more Israel-friendly GOP members of Congress. If Michael Grimm was their model to see whether Pinto was a new source of campaign cash, they needed to protect him if he might be going down. Rather than lose their investment and shut down this conduit for millions in new campaign funding, they’d go to the mat to help Grimm.
More background on Bibi’s strategy in dealing with the U.S. political process: he’s found that presidents may not like him because they are slightly more independent than members of Congress. But Congress is in his back pocket due to that campaign largess I mentioned earlier. Bibi is hated in the White House but loved (or feared) in Congress. When he can’t get an invitation to the White House, he goes over the president’s head and gets to address a Joint Session of Congress.
This is the same strategy he and the Lobby are following regarding the Iran sanctions legislation. The president doesn’t want new sanctions. Most sane members of Congress don’t want them either. But the Lobby and Israel do. They want a war with Iran. So they want to sabotage Obama’s strategy of negotiating his way out of the impasse. How best to do this? Don’t confront Obama head-on because he’s an immovable object on this matter. But do an end-around. Activate all those pro-Israel IOUs in Congress.
So the more Michael Grimms there are in Congress, the more Israel has its own interests guaranteed in the halls of Congress.
And of course, there’s no shortage of money. In fact, in a manner of speaking, there’s money to burn:
Rabbi Pinto, center, surrounded by oligarchs, including Israeli diamond billionaire Lev Leviev, far right.
War From Above
By Richard Hugus | Aletho News | December 31, 2013
Drone aircraft, which we first heard of as weapons of war used by the United States in foreign lands, are now poised for a full-scale invasion of the skies above the US itself. On December 30, 2013 the US Federal Aviation Administration announced its choices for drone testing in six states around the country — Alaska, Nevada, New York, North Dakota, Texas and Virginia. These six states may in turn do their testing in more than one location, For example, according to the Anchorage Daily News, drone testing centered in Alaska at the University of Alaska in Fairbanks will be called “the ‘Pan-Pacific Unmanned Aircraft Systems Test Range Complex.’ It includes six flight ranges in Alaska, four in Hawaii and three in Oregon.” According to the Honolulu Star Advertiser “the Pohakuloa Training Area on Hawaii island, the Pacific Missile Range Facility on Kauai and even the island of Niihau have been included in discussions of places where the testing could occur.” According to the East Oregonian, drone testing is likely to involve a former military base in Pendleton, Port of Tillamook, and Warm Springs. Likewise, the New York operation will be run from the former Griffiss Air Force base in Rome, NY and, according to the Cape Cod Times, will also include the former Otis Air Base on Cape Cod, Massachusetts. The Times reports that “the Cape site had the support of the state’s congressional delegation, a statewide military asset commission and business leaders” and that “among the institutions involved in the bid are Massachusetts Institute of Technology and Rochester Institute of Technology.”
What this story reveals is the creation of a huge web of DOD-connected Universities, businesses, corporations, defense contractors, and former and current Pentagon facilities spread all over the country. Included in this web are the many and various chambers of commerce, their boosters in the press, and numerous comprador “officials” anxious to bring federal money into their districts, at the expense of all the other people who live in them. Almost no news coverage has appeared that would imply the FAA decision was anything but a boon for the economy and the advent of a wonderful and inevitable new technology.
There is little news about the down side to hosting drones in all these areas of the country, each with a populace that has simply not been consulted. Drones first came to our attention at the beginning of “the war on terror.” We learned of them first as weapons for highly illegal, cowardly, and indiscriminate “targeted killings” in foreign lands. These weapons have murdered countless innocent people in Afghanistan, Iraq, Pakistan, Yemen, and Somalia pursuant to “kill lists” drawn up every week by the CIA and Pentagon, and approved by the White House. These weapons fulfill the US Air Force’s fantasy of “death from above,” carried out by pilots working in the security and comfort of US bases who, acting as judge, jury, and executioner, destroy supposed enemies from computer consoles as if it were a video game. The cowardliness of wars of aggression being conducted against innocent people in dirt-poor lands by unseen “UAV pilots” in air-conditioned offices thousands of miles away cannot be over-emphasized. This is what unmanned aircraft have brought so far to the reputation of the United States – a new low in the entire universe of human ethics; murder abroad is but the advance of capitalism at home. Wedding parties in Afghanistan have been decimated so that Amazon can deliver CDs and smart phones to our door by drone.
Nor is there news about the introduction of drones domestically as yet another assault on privacy and the human right to be free from surveillance. Domestic law enforcement agencies are just as anxious to spy on the US population and target people they call criminals as the Pentagon and CIA have been to spy on the rest of the world and kill people they call terrorists. It isn’t enough that our phones and computers have been turned by the NSA into astounding instruments of surveillance, that everything we say and do on these instruments is being harvested and stored, and that surveillance cameras are mounted at almost every business and public space. Now the national security state wants to have remote-controlled cameras videotaping us full-time from the sky. The police hope to have drones able to fire “non-lethal weapons” at people they deem to be involved in criminal activity so that they too can play God. Without question, non-lethal weapons will soon become lethal weapons and the US will be trying and executing citizens at home as it has done elsewhere without even a hint of due process.
The domestic military bases which are being revived by this brave new technology originally went out of business because there was nothing for them to do in the fulfillment of their original purpose – defending the country. Otis Air Base, now called “Joint Base Cape Cod”, is a case in point. It used to patrol the skies for Russian aircraft along the northeast coast and ended up being a disaster for the community in which it was situated because it polluted the local groundwater and sole-source drinking water aquifer with untold gallons of dumped jet fuel and cleaning solvents. It sent fighter jets to intercept the two planes hijacked to New York on September 11, 2001, but ended up being part of a ploy to let those planes actually reach the twin towers before they got there. This base and many others have been parasites on the communities around them. They will continue in that role in their new incarnation as hosts to drone spying and drone warfare. The war has come home. The people orchestrating this war – the global elite — have no particular allegiance to the United States. From their point of view, its land and its people must also be brought under control, just like everywhere else. How sad it is to see the scramble to welcome them.
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