It's that second one, the money laundering, where we have the most evidence so far. Tim O'Brien at Bloomberg covers this angle of the story, and it's very grim for Team Trump.
Trump has repeatedly labeled Comey's and Mueller's investigations "witch hunts," and his lawyers have said that the last decade of his tax returns (which the president has declined to release) would show that he had no income or loans from Russian sources. In May, Trump told NBC that he has no property or investments in Russia. "I am not involved in Russia," he said.
But that doesn't address national security and other problems that might arise for the president if Russia is involved in Trump, either through potentially compromising U.S. business relationships or through funds that flowed into his wallet years ago. In that context, a troubling history of Trump's dealings with Russians exists outside of Russia: in a dormant real-estate development firm, the Bayrock Group, which once operated just two floors beneath the president's own office in Trump Tower.
Bayrock partnered with the future president and his two eldest children, Donald Jr. and Ivanka, on a series of real-estate deals between 2002 and about 2011, the most prominent being the troubled Trump Soho hotel and condominium in Manhattan.
During the years that Bayrock and Trump did deals together, the company was also a bridge between murky European funding and a number of projects in the U.S. to which the president once lent his name in exchange for handsome fees. Icelandic banks that dealt with Bayrock, for example, were easy marks for money launderers and foreign influence, according to interviews with government investigators, legislators, and others in Reykjavik, Brussels, Paris and London. Trump testified under oath in a 2007 deposition that Bayrock brought Russian investors to his Trump Tower office to discuss deals in Moscow, and said he was pondering investing there.
"It's ridiculous that I wouldn't be investing in Russia," Trump said in that deposition. "Russia is one of the hottest places in the world for investment."
One of Bayrock's principals was a career criminal named Felix Sater who had ties to Russian and American organized crime groups. Before linking up with the company and with Trump, he had worked as a mob informant for the U.S. government, fled to Moscow to avoid criminal charges while boasting of his KGB and Kremlin contacts there, and had gone to prison for slashing apart another man’s face with a broken cocktail glass.
In a series of interviews and a lawsuit, a former Bayrock insider, Jody Kriss, claims that he eventually departed from the firm because he became convinced that Bayrock was actually a front for money laundering.
Kriss has sued Bayrock, alleging that in addition to laundering money, the Bayrock team also skimmed cash from the operation, dodged taxes and cheated him out of millions of dollars. Sater and others at Bayrock would not comment for this column; in court documents they have contested Kriss's charges and describe him, essentially, as a disgruntled employee trying to shake them down.
These are the guys Trump has worked with for years, and now he's pretending he never did. What sort of leverage Bayrock -- and by logic, Russia -- now has on him, well, I hope Mueller gets to the bottom of all this and soon. That Bayrock to Sater to Putin line is blood red, emphasis on blood.
Only fitting that Trump is caught up in all this.