Flynn pleads guilty to lying on Russia, cooperates with U.S. probe

Flynn pleads guilty to lying on Russia, cooperates with U.S. probe

By Sarah N. Lynch

WASHINGTON (Reuters) – Former national security adviser Michael Flynn pleaded guilty on Friday to lying to the FBI about his contacts with Russia, and he agreed to cooperate with prosecutors delving into the actions of President Donald Trump’s inner circle before he took office.

The dramatic turn of events also raised new questions about whether Trump’s son-in-law, Jared Kushner, had a role in those Russia contacts.

Flynn was the first member of Trump’s administration to plead guilty to a crime uncovered by special counsel Robert Mueller’s wide-ranging investigation into Russian attempts to influence the 2016 U.S. election and potential collusion by Trump aides.

Under a plea bargain deal, Flynn admitted in a Washington court that he lied when asked by FBI investigators about his conversations last December with Russia’s then-ambassador, Sergei Kislyak, just weeks before Trump took office.

Prosecutors said the two men discussed U.S. sanctions against Russia and that Flynn also asked Kislyak to help delay a U.N. vote seen as damaging to Israel. On both occasions, he appeared to be undermining the policies of outgoing President Barack Obama.

They also said a “very senior member” of Trump’s transition team had told Flynn to contact Russia and other foreign governments to try to influence them ahead of the U.N. vote.

Sources told Reuters that the “very senior” official was Kushner, a key member of Trump’s transition team and now the president’s senior adviser.

Kushner’s lawyer, Abbe Lowell, did not respond to multiple requests for comment. He has previously said Kushner has voluntarily cooperated with all relevant inquiries and would continue to do so.

Flynn’s decision to cooperate with Mueller’s team marked a major escalation in a probe that has dogged the president since he took office in January.

There was nothing in the court hearing that pointed to any evidence against Trump, and the White House said Flynn’s guilty plea implicated him alone.

“Nothing about the guilty plea or the charge implicates anyone other than Mr. Flynn,” said Ty Cobb, a White House attorney.

Flynn, a retired army lieutenant general, only served as Trump’s national security adviser for 24 days. He was forced to resign after he was found to have misled Vice President Mike Pence about his discussions with Kislyak.

But Flynn had been an enthusiastic supporter of Trump’s election campaign and the president continued to praise him even after he left the administration, saying Flynn had been treated “very, very unfairly” by the news media.

A small group of protesters yelled “Lock him up!” as Flynn left the courthouse on Friday, echoing the “Lock her up!” chant that Flynn himself led against Trump’s Democratic rival, Hillary Clinton, in vitriolic appearances on the campaign trail.

SANCTIONS

Mueller’s team is also looking at whether members of Trump’s campaign may have sought to ease sanctions on Russia in return for financial gain or because Russian officials held some leverage over them, people familiar with the probe say.

Prosecutors said Flynn and Kislyak last December discussed economic sanctions that Obama’s administration had just imposed on Moscow for allegedly interfering in the election.

Flynn asked Kislyak to refrain from escalating a diplomatic dispute with Washington over the sanctions, and later falsely told FBI officials that he did not make that request, court documents showed.

Prosecutors said Flynn had earlier consulted with a senior member of Trump’s presidential transition team about what to communicate to the Russian ambassador.

“Flynn called the Russian ambassador and requested that Russia not escalate the situation and only respond to the U.S. sanctions in a reciprocal manner,” the prosecutors said in court documents, adding that Flynn then called the Trump official again to recount the conversation with Kislyak.

They did not name the senior official in the Trump team but U.S. media reports identified former adviser K.T. McFarland as the person. Reuters was unable to verify the reports.

On Dec. 28, 2016, the day before prosecutors say the call between the Trump aides took place, Trump had publicly played down the need to sanction Russia for allegedly hacking U.S. Democratic operatives.

“I think we ought to get on with our lives. I think that computers have complicated lives very greatly,” Trump told reporters at his Mar-a-Lago Florida resort.

TESTIMONY

Ryan Goodman, a professor at New York University Law School, said Flynn’s plea deal shows Mueller is scrutinizing the truthfulness of testimony given to his investigators. Kushner is potentially liable for making false statements if his testimony is contradicted by Flynn, Goodman said.

Earlier on Friday, ABC News cited a Flynn confidant as saying Flynn was ready to testify that Trump directed him to make contact with Russians before he became president, initially as a way to work together to fight the Islamic State group in Syria.

Reuters could not immediately verify the ABC News report.

U.S. stocks, the dollar and Treasury yields fell sharply after the ABC report, although they partially rebounded on optimism that a Republican bill to cut taxes will be approved in the U.S. Senate.

If Trump directed Flynn to contact Russian officials, that might not necessarily amount to a crime. It would be a crime if it were proven that Trump directed Flynn to lie to the FBI.

Moscow has denied what U.S. intelligence agencies say was meddling in the election campaign to try to sway the vote in Trump’s favor. Trump has called Mueller’s probe a witch hunt.

In May, the president fired FBI Director James Comey, who later accused Trump of trying to hinder his investigation into the Russia allegations. Comey also said he believed Trump had asked him to drop the FBI’s probe into Flynn.

Comey on Friday tweeted a cryptic message about justice.

“But let justice roll down like waters and righteousness like an ever-flowing stream, ‘Amos 5:24’,” he wrote, quoting the Biblical book of Amos.

Paul Manafort, who ran Trump’s presidential campaign for several months last year, was charged in October with conspiring to launder money, conspiracy against the United States and failing to register as a foreign agent of Ukraine’s former pro-Russian government.

Manafort, who did not join Trump’s administration, and a business associate who was charged with him both pleaded not guilty.

(Additional reporting by Susan Heavey, Tim Ahmann, John Walcott, Mark Hosenball and Nathan Layne in Washington and Jan Wolfe in New York; Writing by Alistair Bell and Yara Bayoumy; Editing by Frances Kerry and Mary Milliken)

Flynn prepared to testify Trump directed him to contact Russians: ABC

Flynn prepared to testify Trump directed him to contact Russians: ABC

By Sarah N. Lynch

WASHINGTON (Reuters) – ABC News reported on Friday that former U.S. national security adviser Michael Flynn is prepared to testify that President Donald Trump directed him to make contact with Russians when he was a presidential candidate.

Reuters could not immediately verify the report, which cited a Flynn confidant. The news sent U.S. stocks sharply lower. [nL3N1O14E8]

Flynn, a former top Trump campaign aide and a central figure in a federal investigation into Moscow’s alleged interference in the 2016 U.S. presidential election, pleaded guilty on Friday to lying to the FBI.

His plea agreement, and his decision to cooperate with the investigation led by Special Counsel Robert Mueller, marked a major escalation in a probe that has dogged Trump’s administration since the Republican president took office in January.

Flynn acknowledged making false statements about contacts he had with Russia’s ambassador to the United States, Sergei Kislyak, last year. The charges carry sentence of up to five years in prison.

Flynn was fired from his White House post in February for misleading Vice President Mike Pence about his conversations with the ambassador.

Moscow has denied a conclusion by U.S. intelligence agencies that it meddled in the election campaign to try to sway the vote in Trump’s favor. Trump has denied any collusion by his campaign.

(Reporting by Susan Heavey and Tim Ahmann; Additional reporting by John Walcott and Nathan Layne; Writing by Alistair Bell; Editing by Frances Kerry)

Exclusive – U.S. investigators in Russia probe look at role of Flynn partner

FILE PHOTO - U.S. National Security Adviser Michael Flynn walks along the West Wing colonnade at the White House in Washington, U.S., February 10, 2017. REUTERS/Jim Bourg/File Picture

By Nathan Layne and Julia Edwards Ainsley

NEW YORK (Reuters) – Federal investigators probing the lobbying work of ousted national security adviser Michael Flynn are focused in part on the role of Bijan Kian, Flynn’s former business partner, according to a person interviewed by the FBI.

Investigators are also looking at whether payments from foreign clients to Flynn and his company, the now-inactive Flynn Intel Group, were lawful, according to two separate sources with knowledge of the broad inquiry into Flynn’s business activities. That includes payments by three Russian companies and a Netherlands-based company, Inovo, controlled by Turkish businessman Ekim Alptekin, they said.

The FBI’s interest in Kian has not been previously reported. Kian played a central role in securing and overseeing the Inovo contract, two people with knowledge of that project said.

It is not clear whether Kian is a target of the criminal investigation or whether investigators are trying to build a fuller understanding of how Flynn’s company operated.

A person recently interviewed by the FBI in connection with the Flynn investigation said agents from the bureau’s criminal division had asked as much about Kian and his work on the project with Alptekin as they had about Flynn.

Kian did not respond to repeated requests for comment, nor did the lawyer he recently hired, Robert Trout. The FBI declined to comment.

Flynn’s lawyer, Robert Kelner, did not respond to requests for comment. Alptekin declined to comment for this story but last month told Reuters that he was satisfied with the work done by Flynn Intel Group and denied any wrongdoing.

The FBI has been investigating whether Flynn’s consulting firm lobbied on behalf of Turkey – after being paid $530,000 by Inovo – without making the proper disclosure, Reuters reported earlier this month.

The federal investigation is being run by special counsel Robert Mueller. Mueller has a mandate to investigate contacts between Russia and Trump’s 2016 election campaign team and any related matters. Flynn was fired by the Trump administration in February after officials said he mischaracterized a series of phone calls with Russia’s ambassador last December.

The top Democrat on the House Committee on Oversight and Government Reform, which has separately been looking into whether Flynn made false statements in applying for security clearance, said he was also scrutinizing Kian.

“I have an interest in Bijan Kian and his interactions with General Flynn based on specific documents already obtained by the Committee,” Elijah Cummings told Reuters in an email.

Kelner has sought immunity for Flynn in exchange for his testimony, saying his client “certainly has a story to tell.”

FAILED COUP OPENS A DOOR

In private conversations with potential clients, Kian portrayed himself as a rainmaker for Flynn, tapping into connections cultivated during a five-year tenure as a director at the U.S. Export-Import Bank, according to one person who worked with the firm.

Alptekin told Reuters in May that his firm hired Flynn Intel Group to research Gulen’s activities in the United States, which he suspected were “poisoning” relations between the United States and Turkey. Like Turkey President Tayyip Erdogan, Alptekin blamed the coup on followers of Gulen.

Gulen has denied any role in the coup and dismisses Turkey’s allegations that he heads a terrorist organization.

Kian oversaw key elements of the project that emerged, including a still-unfinished documentary on Gulen, according to two people involved in the project.

Inovo paid Flynn Intel Group a total of $530,000, starting in September, according to a Justice Department filing by the company in March. Flynn Intel Group paid $80,000 to Inovo in “consultancy fees,” according to the filing, which does not provide more detail on why payments were made in both directions.

On Sept. 19, Kian and Flynn met in New York with Turkey’s foreign minister and energy minister, who is Erdogan’s son-in-law, according to a person with knowledge of the meeting.

In late October Kian invited staff of the House Homeland Security Committee to Flynn Intel Group’s headquarters in Virginia. The meeting was called to show off new mobile phone security technology, but Kian also used the opportunity to try to get a congressional hearing on Gulen, according to a person at the meeting.

At that point, the Flynn Intel Group had only disclosed its work for Alptekin’s Inovo in a filing with Congress. It had not mentioned Inovo’s ties to Turkey.

When Justice Department officials became aware months later that Kian and other Flynn Intel Group officials had met with Turkish officials they insisted on a fuller disclosure, people involved in those discussions said.

The Flynn Intel Group made the more detailed disclosure in its March filing with the Justice Department under the Foreign Agents Registration Act that said the work that Flynn and Kian did for Inovo “could be construed to have principally benefited the Republic of Turkey.”

(Reporting by Nathan Layne; Additional reporting by John Walcott, Julia Harte and Jonathan Landay in Washington; Editing by Kevin Krolicki and Ross Colvin)

Flynn to decline U.S. Senate subpoena in Russia probe

National security adviser General Michael Flynn arrives to deliver a statement during the daily briefing at the White House

WASHINGTON (Reuters) – Former White House National Security Adviser Michael Flynn will decline to comply with a subpoena from the Senate Intelligence Committee investigating possible Russian interference in the 2016 U.S. election, according to media reports on Monday.

Flynn will invoke his Fifth Amendment protection against self-incrimination, the Associated Press, Wall Street Journal and Fox News reported, citing sources close to Flynn.

The retired lieutenant general, a key witness in the Russia probe, planned to inform the panel of his decision later on Monday, the reports said.

The Senate Intelligence Committee is conducting one of the main congressional probes of alleged Russian meddling in the U.S. presidential election and whether there was any collusion between President Donald Trump’s campaign and Russia.

The committee first requested documents from Flynn in an April 28 letter, but he declined to cooperate with the request.

The U.S. intelligence community concluded in January that Moscow tried to sway the November vote in Trump’s favor. Russia has denied involvement and Trump insists he won fair and square.

Flynn was forced to resign in February, after less than a month on the job, for failing to disclose the content of his talks with Sergei Kislyak, Russia’s ambassador to the United States, and then misleading Vice President Mike Pence about the conversations.

Reuters reported on Thursday that Flynn and other advisers to Trump’s campaign were in contact with Russian officials and others with Kremlin ties in at least 18 calls and emails during the last seven months of the U.S. presidential race. Flynn has acknowledged being a paid consultant to the Turkish government during the campaign.

(Reporting by Doina Chiacu Editing by W Simon and Dan Grebler)

Trump national security aide Flynn resigns over Russian contacts

National Security adviser Michael Flynn

By Steve Holland and John Walcott

WASHINGTON (Reuters) – President Donald Trump’s national security adviser, Michael Flynn, resigned late on Monday after revelations that he had discussed U.S. sanctions on Russia with the Russian ambassador to the United States before Trump took office and misled Vice President Mike Pence about the conversations.

Flynn’s resignation came hours after it was reported that the Justice Department had warned the White House weeks ago that Flynn could be vulnerable to blackmail for contacts with Russian ambassador Sergey Kislyak before Trump took power on Jan. 20.

Flynn’s departure was a sobering development in Trump’s young presidency, a 24-day period during which his White House has been repeatedly distracted by miscues and internal dramas.

The departure could slow Trump’s bid to warm up relations with Russian President Vladimir Putin.

Flynn submitted his resignation hours after Trump, through a spokesman, pointedly declined to publicly back Flynn, saying he was reviewing the situation and talking to Pence.

Flynn had promised Pence he had not discussed U.S. sanctions with the Russians, but transcripts of intercepted communications, described by U.S. officials, showed that the subject had come up in conversations between him and the Russian ambassador.

Such contacts could potentially be in violation of a law banning private citizens from engaging in foreign policy, known as the Logan Act.

Pence had defended Flynn in television interviews and was described by administration officials as upset about being misled.

“Unfortunately, because of the fast pace of events, I inadvertently briefed the vice president-elect and others with incomplete information regarding my phone calls with the Russian ambassador. I have sincerely apologized to the president and the vice president, and they have accepted my apology,” Flynn said in his resignation letter.

Retired General Keith Kellogg, who has been chief of staff of the White House National Security Council, was named the acting national security adviser while Trump determines who should fill the position.

Kellogg, retired General David Petraeus, a former CIA director, and Robert Harward, a former deputy commander of U.S. Central Command, are under consideration for the position, a White House official said. Harward was described by officials as the leading candidate.

A U.S. official confirmed a Washington Post report that Sally Yates, the then-acting U.S. attorney general, told the White House late last month that she believed Flynn had misled them about the nature of his communications with the Russian ambassador.

She said Flynn might have put himself in a compromising position, possibly leaving himself vulnerable to blackmail, the official said. Yates was later fired for opposing Trump’s temporary entry ban for people from seven mostly Muslim nations.

CHANGE LESS LIKELY?

A U.S. official, describing the intercepted communications, said Flynn did not make any promises about lifting the sanctions.

But he did indicate that sanctions imposed by President Barack Obama on Russia for its Ukraine incursion “would not necessarily carry over to an administration seeking to improve relations between the U.S. and Russia,” the official said.

Flynn, a retired U.S. Army lieutenant general, was an early supporter of Trump and shares his interest in shaking up the establishment in Washington. He frequently raised eyebrows among Washington’s foreign policy establishment for trying to persuade Trump to warm up U.S. relations with Russia.

A U.S. official said Flynn’s departure, coupled with Russia’s aggression in Ukraine and Syria and Republican congressional opposition to removing sanctions on Russia, removes Trump’s most ardent advocate of taking a softer line toward Putin.

Flynn’s leaving “may make a significant course change less likely, at least any time soon,” the official said.

Another official said Flynn’s departure may strengthen the hands of some cabinet secretaries, including Defense Secretary Jim Mattis and Secretary of State Rex Tillerson.

However, the second official said, Flynn’s exit could also reinforce the power of presidential aides Steve Bannon and Stephen Miller, whom he described as already having the president’s ear.

Congressional Democrats expressed alarm at the developments surrounding Flynn and called for a classified briefing by administration officials to explain what had happened.

“We are communicating this request to the Department of Justice and FBI this evening,” said Democratic representatives John Conyers of Michigan and Elijah Cummings of Maryland.

U.S. Representative Adam Schiff of California, ranking Democrat on the House Permanent Select Committee on Intelligence, said Flynn’s departure does not end the questions over his contacts with the Russians.

“The Trump administration has yet to be forthcoming about who was aware of Flynn’s conversations with the ambassador and whether he was acting on the instructions of the president or any other officials, or with their knowledge,” Schiff said.

The committee’s chairman, Republican Devin Nunes, thanked Flynn for his service.

“Washington D.C. can be a rough town for honorable people, and Flynn — who has always been a soldier, not a politician —deserves America’s gratitude and respect,” he said.

(Additional reporting by Emily Stephenson; Editing by Peter Cooney, Robert Birsel)