Trump Egyptian Caper
or
Is Following Money from Egypt So Hard?
Did FBI use the investigative equivalent of Camels instead of the modern day electronic financial investigative tool of FinCEN(Financial Crimes Enforcement Network) when exploring the alleged illegal $10M cash foreign political contribution to Trump’s 2016 campaign by Trump’s self described favorite foreign dictator Abdel Fatah Al Sisi?
Did the FBI cluster of a financial investigation make it easy for Trump’s Roy Cohn of an Attorney General — Bill Barr — to quash the case before it got too close?
I’m looking at the Washington Post article by Carol Leonnig et al with regard to the alleged illegal $10M foreign political contribution and I am wondering what the hell happened to the investigation, and asking — could the purportedly illegal foreign campaign contribution in the 2016 election campaign happen again in the 2024 election campaign?
Why not?
Where is the deterrence to such a prospect that could have been applied with an efficacious Federal investigation and prosecution of the 2016 Egyptian caper?
My central interest diverges from the Washington Post as I am more concerned with the thrust and course of the investigation as opposed to the possible political machinations that ultimately compelled AG Bill Barr to close the case. DOJ/FBI initially focused on the illegal foreign political contribution allegation of which the statute of limitations(SOL) has expired as the writer noted. But could there be other financial violation(s) involved wherein the SOL is still open for investigation and possible prosecution?
The closed investigation did not seem to “follow the money” in the classic and/or literal sense from what I gather from the Post article, which in summary — speaks to an agreement between Trump and Sisi, wherein Sisi allegedly provides Trump with $10M for his 2016 campaign. The Post and other media reports outline a process where $10M in $100 bills is withdrawn from a shell company account located in Egypt affiliated with Egyptian Intelligence — stuffed in boxes by four bagmen in a branch bank location of the national bank of Egypt which is transported to the U.S. filtered allegedly through a shell company owned jointly by Trump and his buddy Las Vegas Casino owner Phil Ruffin before ultimately undergoing a magical transformation into a multimillion bank loan to Donald Trump that is then infused into his campaign.
The Washington Post focuses on the legal and possibly political(corruption) issue of obtaining bank subpoenas relative to Trump’s bank accounts which ultimately involved SCOTUS and a legal mish mash, and I understand the interest.
This was a sensitive DOJ investigation spearheaded by FBI who are not really known for conducting stellar “follow the money” financial investigations and the fact that the investigation was stymied over the political/legal sensitivities concerning the FBI interest in obtaining a Trump related bank subpoena is not surprising.
FBI appear to have attempted to take an investigative short cut that blew up in their face and turned out to be the long way, and the hard way, by going after the then President’s bank accounts prematurely before developing a full financial investigation. They may well have possessed information that from their perspective fully justified that approach, but let me lay out an alternative, and possibly more productive investigative approach for future reference.
If at all possible, I would have literally followed the two boxes of cash referenced by the Washington Post, that were stuffed with $100 bills totaling just under $10M($9,998,000) and the four men and their personal identifiers accompanying the transport of the currency.
The Washington Post notes that the cash was withdrawn from a shell company account associated with Egyptian Intelligence, from a government controlled Bank of Egypt branch located in Heliopolis, Egypt a few miles from the Cairo airport. If available evidence suggests that the boxes of cash were placed on a jet and transported to the U.S. for the purpose of being secretly infused into Trump’s election campaign, then we can initiate a money laundering investigation following the cash while focusing on the bagmen and their identifiers which should provide a digital track, accompanying the cash and possibly circumventing Bank Secrecy and Money Laundering laws.
If personal surveillance was unavailable to the investigation then an historical tracking of the available identifiers would be necessary. Identifiers such as Passport numbers, Driver license numbers, SSN and DoB’s — serve as the key to Bank Secrecy regs that support the many databases of FinCEN — the ‘follow the money’ arm of the Treasury Department. Following money really comes down to following the digital footprints of large money transactions when the money is on the move.
First order of business — focus the initial financial investigation on whether or not a CMIR(Currency or Monetary Instruments Report) was filled out thereby properly identifying the transport of $10M in cash into the U.S. that requires the filing of a CMIR with FinCEN. The CMIR database maintained by FinCEN is available to the FBI as well as all Federal law enforcement agencies. It should be noted that both the transporter and the recipient of large amounts of cash moving internationally, (over$10K) are responsible for filing a CMIR with FinCEN. Should a common carrier be involved then that company is responsible for filing a CMIR and identifying the source of the cash.
Should the bagmen not file the CMIR, or submit a falsified CMIR thereby disrupting and circumventing a digital track of the money and the transporters, then a Federal criminal violation potentially exists. The bagmen can be confronted with their violation and possibly be compelled to cooperate and provide testimony as to the source of the cash, the purpose of the cash, the destination of the cash and who all are involved in moving the cash.
Was this done? If not, why not?
Instead, we can surmise from the Washington Post article, that the FBI assumes the money is destined for Trump and jump (the gun?) into an investigative subpoena quagmire by trying to get approval for subpoenas for Trump’s bank accounts without knowing for sure that the money ultimately ended up there.
Fishing expedition anyone?
Camel hunting?
The investigators, if aware of the scheme, should have followed the boxes of cash to wherever the bagmen were directed to take them. If the investigators became aware of the identity and the respective identifiers of the bagmen later on, it is not hard to trace the disposition of almost ten million dollars given the likely paper/digital trail that movement of that quantity of cash compels unless overt attempts to circumvent the paper trail was undertaken.
That in fact, is the whole purpose of the FinCEN databases containing CMIRs, CTRs, Wire Transfers, FBARs, 8300's etc. Folks who want to conceal their large cash transactions in modern times, must take overt steps to circumvent FinCEN and therefore law enforcement tracking of their furtive cash movements. Such overt steps may well include the commission of currency or money laundering crimes.
And it is this very circumvention of Bank Secrecy laws by financial fraudsters, that guide FinCEN and provides Federal investigators and prosecutors with the tools and means to bring potential grifters to justice.
Quick question — Did the Egyptian authorities transport this $10M in U.S. currency under protection of Diplomatic pouch privilege granted to Ambassadors,Attaches and diplomatic couriers recognized by the U.S. State Department? If so, U.S. Customs authorities would not have examined the two boxes stuffed with $100 bills as Pouch privileges have expanded to include boxes. Such an actuality however would go far to establish Intent on the part of the Egyptian government to conceal their illegal contribution by circumventing the responsibility of all International travelers to fill out the required CMIR when transporting large amounts of currency into the U.S. So too would any attempt to conceal through use of a shell company which the Research and Studies Center referenced in the WP article, and it’s close association with the Egyptian Intelligence agency CIS, suggests.
Circumvention of CMIR filing requirements would be the first evasion of U.S. Treasury and Bank Secrecy Act efforts to track movement of large amounts of Cash. The next circumvention necessary to conceal the alleged illegal Foreign cash contribution to Trump’s Election campaign would be any effort to evade U.S. financial institution requirements to file Currency Transaction Reports(CTRs) with FinCEN when cash amounts over $10K are deposited.
Once safely ensconced in a U.S. financial institution, monies can be easily moved or transferred anywhere electronically in order to further layer and conceal the source and ultimate destination and disposition of the foreign funds.
It is likely that our bag men would have been directed to deposit the currency into one or more financial institutions in the States. If the bagmen attempted to structure the deposits just under $10K they would be committing a criminal violation. The CTRs should/would have been helpful to the investigators in following the money because again, once the money is in possession of the bank there would be a paper(digital) trail of any further movement of the funds and investigators could easily follow and subpoena interim or conduit accounts that the monies moved through as the conspirators’ further layer and conceal the movement of their monies which is emblematic of classic money laundering.
As an aside, it is worth asking if FinCEN possessed any Suspicious Activity Reports(SARs) associated with any of the bag men identifiers, in its database with regard to any transactions occurring at any U.S. financial institution pertaining to $10M being physically transported in bags/boxes and being deposited.
Concealment of monies derived from Specified Unlawful Activities can be a Money Laundering Offense. In this case the movement of large amounts of foreign sourced monies for the purpose of assisting a U.S. political campaign should be seen by prospective prosecutors as consistent with the Promotion prong of the Money Laundering statutes, in that the ultimate purpose of the money was to break the federal election law prohibition on foreign political campaign contributions to candidates running for office.
Consideration of further potential layering or concealment activities would be mandatory in any Money Laundering investigation launched. This may or may not include funky Trump/Ruffin financial activities alluded to in other media reports relative to Trump friend, business partner(Trump’s 2024 financial candidate statement entries 346–348 reflect joint venture entities ownership between Trump and Ruffin)and political contributor — Casino operator Phil Ruffin. But first we need to reference what potential money laundering statutes are available to the prosecutors at the point when the $10M gets deposited into an American financial institution — and yes — fyi — Casinos are considered financial institutions and must file CTRs just like banks.
- Title 31 U.S.C. Section 5316 and 31 C.F.R. Section 103.23 create an obligation to report the transporting of monetary instruments totaling more than $10,000 at one time into or out of the U.S. CMIRs are completed by individuals when “transporting” monetary instruments. Title 31 U.S.C. Section 5324(c) makes it a crime to fail to file a report required by Section 5316 or file a report containing a material omission or misstatement.
2. Title 31 U.S.C. Sec. 5332 aka the Bulk Cash Smuggling provision — makes it a crime to Transport or transfer more than $10K in currency or other monetary instruments into or out of the U.S. with the intent to evade the CMIR requirement while knowingly concealing the currency on person, in conveyance, in luggage, in merchandise or another container.
3. Title 31 U.S.C. Section 5324 Structuring — makes it a crime to break up transactions in order to avoid reporting requirements. Typically, Structured Deposits or Withdrawals at U.S. financial institutions are in amounts just under $10K.
4. Title 18 U.S.C. Section 1956(a)(2) known as the International Money Laundering Statute that makes it a crime to transport, transmit, or transfer, or attempt to transfer, monetary instruments or funds from the U.S. to or through a place outside the U.S. or to the U.S. from or through a place outside the U.S. It can be violated by moving any money internationally (including money that is not criminal proceeds) with the intent to promote SUA(specified unlawful activities)
5. Title 18 U.S.C. Section 1956(h) Money Laundering Conspiracy — makes it a crime to conspire to commit any of the offenses set forth in 18 U.S.C. Section 1956 and/or Section 1957
6. Title 18 Section 1344 Bank Fraud Whoever knowingly executes, or attempts to execute, a scheme or artifice —
a) to defraud a financial institution; or
b) to obtain any of the moneys, funds, credits, assets, securities, or other property owned by, or under the custody or control of, a financial institution, by means of false or fraudulent pretenses, representations, or promises.
Title 18 money laundering statutes have a 20 year-statutory maximum(stat max) prison sentence if the prosecutor needs to threaten or hammer a potential cooperator in order to obtain his cooperation.
Title 18 Bank Fraud convictions can generate up to a 30-year Stat Max.
Title 31(Bank Secrecy Act) currency violations afford the prosecutor a bit more flexibility in terms of downward departure sentencing options when it comes to negotiating plea deals since the stat max for T31 violations is lower. Falsifying a CMIR can get you a max of 10 years in Club Fed.
Besides the bag men, who else could be a potential cooperating witness? Should financial institutions such as commercial banks knowingly involve themselves in Specified Unlawful Activities or Money Laundering, they could expose their bank to large monetary fines in the millions of dollars should the authorities feel it is appropriate. A conviction could jeopardize their license to bank. Something no Bank nor Casino CEO is anxious to do.
But what happens if the $10M in cash is provided to a business before being deposited into a Financial institution? In other words, the cash is layered or concealed prior to entering into the financial system — is there a way to track it?
Various media reports including the NYT have referenced shady Trump organization related shell company financial maneuvers that raise tax questions among others. Should any trade or business including joint ventures or partnerships owned and controlled LLC’s, engage in a cash transaction over $10K of cash there is a requirement(Title 31 U.S.C Section 5331)on the part of the beneficial owners of the business entity involved, to file with FinCEN — Form 8300 Cash Payments Over $10K.
Title 31 U.S.C. Sec. 5324 (b) makes it a crime to cause or attempt to cause, a trade or business to fail to file a report required by Sec. 5331 or file a report containing a material omission or misstatement. It should be noted that Forms 8300 completed prior to 12/31/01 are considered tax forms, but after that date, they are available from FinCEN.
So given the above scenario, if Trump or anyone else used a shell company as a conduit to transact $10M in cash during the 2016 campaign a Form 8300 should have been filed with FinCEN or the IRS within 15 days of the transaction. Not doing so or filing a false Form 8300 could then generate a potential Bank Secrecy Act or even a Tax violation. This possibility raises other Income tax or State business fraud ramifications. How was the $10M cash transaction moving through a shell company conduit treated on the books and records of the shell company and specifically any umbrella company that the LLC may have been subordinate? Was Income declared? Loan? Were any books and records falsified to further conceal? Where did the money go from the LLC and how was it characterized and who can testify?-Accountants, Auditors, Bookeepers, Controllers, CFO’s?
Should the investigators be able to document overt acts of misrepresentation with regard to any bank loans involved in any alleged illegal scheme where Trump was alleged to have borrowed multi-millions from a bank in Los Angeles after moving substantial sums through a shell company owned jointly with his Casino owner friend, then Bank Fraud statutes may be available to the Prosecutors as a stand alone Indictment count, or to apply as the SUA in a Money Laundering prosecution with regard to any participants in the scheme to layer and conceal illegal monies intended to be infused into the campaign.
Why is that significant?
Bank fraud contains a 10-year statute of limitations(SOL) and would still be available to prosecutors(even now) with regard to any scheme entered into back in 2016 forward. The Illegal foreign sourced political contributions election fraud SOL has lapsed as noted above and so have the pertinent money laundering SOL of seven years barely lapsed.
It should also be noted that any documented evidence of individual overt acts of Conspiracy committed in the last five years to conduct Bank Fraud or Money Laundering, would/could further or extend the statute of limitations.
So what have we accomplished here?
IF investigators/prosecutors truly “followed the money,” and gave strong consideration to using Money Laundering, Bank Secrecy and Bank Fraud statutes available to them and obtained pertinent “follow the money” witness testimony, instead of jumping ahead of themselves and getting mired down over premature “fishing expedition” bank subpoenas to Trump controlled accounts — a different outcome may have been possible.
Bagmen and other intermediaries and middlemen could have been identified and confronted with the hope of flipping, and prosecutors could have used their damming testimony and moved up the proverbial conspiratorial financial ladder.
As noted above, the ten-year Bank Fraud SOL regarding any Bank fraud allegations taking place in 2016/2017 is still available to investigators and prosecutors should the will to properly follow the money(the FinCEN databases have not gone anywhere) and the will to prosecute exist!
In any case, another Presidential election approaches. Big money is being invested in many dark money PACs. Does any of that money come from foreign sources?
Both candidates and law enforcement should take note!
Following large amounts of money is not so hard if you know what you are doing and make good use of the tools and statutes available…even if the money comes from Egypt!
Martin Sheil — Retired Supervisory Special Agent IRS Criminal Investigation
email — martinsheil@protonmail.com