‘El Chapo’ trial reveals drug lord’s love life, business dealings

Accused Mexican drug lord Joaquin "El Chapo" Guzman and his wife Emma Coronel Aispuro looks on in this courtroom sketch, during closing arguments at his trial in Brooklyn federal court in New York City, U.S., January 31, 2019. REUTERS/Jane Rosenberg

By Brendan Pierson and Daina Beth Solomon

(Reuters) – On a typical day, Mexican drug lord Joaquin “El Chapo” Guzman would wake at noon and make calls while strolling under the trees in the mountains of his native Sinaloa state, where he was in hiding, a witness recently testified at the kingpin’s trial.

The infamous gangster’s personal life and business dealings have gone on public display since mid-November at a courthouse in New York, where Guzman faces 10 criminal counts and a possible life sentence.

The jury will begin deliberations on Monday, after attorneys for the prosecution and defense gave closing statements this week.

U.S. prosecutors, who say Guzman amassed a $14 billion fortune through bribery, murder and drug smuggling, supported their case by calling to the stand Guzman’s former associates, including one who says she was his lover and another whose brother was among his top allies, as well as law enforcement officers.

“Do not let him escape responsibility,” Assistant U.S. Attorney Andrea Goldbarg told jurors on Wednesday, standing at a table displaying AK-47 rifles and bricks of cocaine as evidence.

Defense lawyers claim the 61-year-old Guzman, whose nickname means “Shorty,” was set up as a scapegoat. They attacked the credibility of witnesses, many of whom have extensive criminal histories.

Here are some of the most colorful tales from recent weeks in the courtroom:

HIS OWN WORDS

** Guzman’s voice was “sing-songy” with a “nasally undertone,” said FBI agent Steven Marston. In one recorded call, Guzman tells an associate, “Don’t be so harsh… take it easy with the police.” The partner responds: “You taught us to be a wolf.”

** Text messages between Guzman and his wife, Emma Coronel, often turned to family matters. “Our Kiki is fearless,” Guzman wrote in one, referring to one of their daughters. “I’m going to give her an AK-47 so she can hang with me.”

** After Coronel said she saw a suspicious car, Guzman wrote to her, “You go ahead and lead a normal life. That’s it.” Later he reminds her: “Make sure you delete everything after we’re done chatting.”

** In one of the trial’s final days, Guzman told the judge he would not testify in his own defense. The same day, he grinned broadly at audience member Alejandro Edda, the Mexican actor who plays Guzman in the Netflix television drama “Narcos.”

LOVERS AND BUSINESS

** Multiple “wives” visited Guzman when he was hiding in Sinaloa, said Alex Cifuentes, a former close partner.

** Lucero Sanchez Lopez, a former Mexican lawmaker, told jurors she once had a romantic relationship with Guzman, who sent her to buy and ship marijuana. “I didn’t want for him to mistrust me because I thought he could also hurt me,” she said. “I was confused about my own feelings over him. Sometimes I loved him and sometimes I didn’t.”

** Agustina Cabanillas, a partner of Guzman who called him “love,” set up drug deals by passing information between Guzman and others. In one message, Cabinillas called Guzman a “jerk” who was trying to spy on her. “Guess what? I’m smarter than him,” she wrote.

HIGH LEVELS OF CORRUPTION

** Guzman’s Sinaloa Cartel paid bribes, some in the millions of dollars, to Mexican officials at every level, said Jesus Zambada, the brother of Ismael “El Mayo” Zambada, who worked alongside El Chapo and is still at large.

** Beneficiaries included a high-ranking police official who fed Guzman information on police activities “every day,” said Miguel Angel Martinez, a former cartel manager.

** Guzman once paid $100 million to former President Enrique Pena Nieto, Cifuentes said. Pena Nieto has denied taking any bribes.

** When imprisoned in Mexico in 2016, Guzman bribed a national prison official $2 million to be transferred to a different facility, but the move was unsuccessful.

MURDER

** After a rival cartel member declined to shake Guzman’s hand, he ordered the man killed, fueling a war between the cartels, Zambada said.

** When assassins reporting to Guzman killed a police official who worked for a rival, Zambada said, they lured him out of his house by pretending they had hit his son with a car.

** Guzman ordered Cifuentes to kill the cartel’s communications expert after learning he was cooperating with the FBI. But Cifuentes said he was unable to carry out the hit because he did not know the man’s last name.

** When Damazo Lopez Nunez, a top lieutenant to Guzman, told his boss that a Mexican mayor wanted them to “remove” a troublesome police officer, Guzman told him they should do her the favor because the mayor was a favorite for an upcoming state election, Lopez testified. He said Guzman told him to make the killing look like revenge from a gang member.

** Lopez also said Guzman’s sons killed a prominent reporter in Sinaloa because he published an article about cartel infighting against their wishes.

** One of Guzman’s former bodyguards, Isaias Valdez Rios, said he watched his boss personally kill three rival cartel members. Guzman shot one of them and ordered his underlings to bury the man while he was gasping for air. On another occasion, Guzman tortured two men for hours before shooting them each in the head and ordering their bodies tossed into a flaming pit.

SAFE HOUSES AND ESCAPES

** For a period of Guzman’s time as a fugitive in Sinaloa, in northern Mexico, his posse lived in “humble pine huts” with tinted windows, satellite televisions and washer-dryers, Cifuentes said. About 50 guards formed three rings around the homes to keep watch.

** Guzman escaped into a tunnel hidden beneath a bathtub when U.S. agents raided one of his homes in 2014, said Sanchez, his lover. She followed Guzman, who was completely naked, into the passage, feeling water trickle down her legs. “It was very dark and I was very scared,” she said.

** Guzman’s wife helped her husband tunnel out of a Mexican prison in 2015 by passing messages to his associates, Lopez testified. She unsuccessfully tried to help him duplicate the escape when he was captured the next year.

(Reporting by Brendan Pierson in New York; Additional reporting and writing by Daina Beth Solomon in Mexico City; Editing by Tom Brown and Dan Grebler)

‘El Chapo’ decided ‘who lives and who dies’ as drug boss, U.S. jury told

Assistant U.S. Attorney Andrea Goldbarg points at Mexican drug lord Joaquin "El Chapo" Guzman (back row C) in this courtroom sketch during Guzman's trial in Brooklyn federal court in New York City, U.S., January 30, 2019. REUTERS/Jane Rosenberg

By Brendan Pierson

NEW YORK (Reuters) – Joaquin “El Chapo” Guzman was someone who decided “who lives and who dies,” a prosecutor said in closing arguments in the accused Mexican drug kingpin’s trial in the United States.

“The government does not have to prove that he was the boss, or the only boss, or even one of the top bosses,” Assistant U.S. Attorney Andrea Goldbarg told jurors, though she hastened to add that Guzman was “one of the top bosses, without a doubt.”

Guzman’s lawyers have claimed the cartel’s real leader is Ismael “El Mayo” Zambada, who remains at large, and that their client was framed by Zambada.

Standing in front of a table piled with trial evidence including assault rifles and bricks of cocaine, Goldbarg took a calm, no-nonsense approach as she walked the jury in federal court in Brooklyn through the charges against Guzman one by one.

Guzman, 61, was extradited to the United States in January 2017. The 10 criminal counts include engaging in a continuing criminal enterprise, drug trafficking and money laundering conspiracy, and a life sentence if he is found guilty.

Goldbarg’s summation capped an exhaustive government case that spanned 10 weeks of testimony from more than 50 witnesses, including law enforcement officials and former associates of Guzman who are cooperating with the U.S. government after striking plea deals.

Guzman’s lawyers have aggressively sought to undermine the cooperators’ credibility in their cross-examinations, something Goldbarg addressed head on.

“These witnesses were criminals,” she said. “The government is not asking you to like them.”

Accused Mexican drug lord Joaquin "El Chapo" Guzman sits in court in this courtroom sketch during Guzman's trial in Brooklyn federal court in New York City, U.S., January 30, 2019. REUTERS/Jane Rosenberg

Accused Mexican drug lord Joaquin “El Chapo” Guzman sits in court in this courtroom sketch during Guzman’s trial in Brooklyn federal court in New York City, U.S., January 30, 2019. REUTERS/Jane Rosenberg

However, she said, their testimony was corroborated by intercepted phone calls, text messages and letters from Guzman, as well as accounting ledgers seized in a raid on one of his safe houses.

“You know these cooperating witnesses are telling the truth because you heard the same thing from the defendant’s own mouth,” she said.

The intercepted communications showed Guzman plotting drug shipments, dealing with corrupt government officials and, sometimes, ordering his adversaries killed.

“He’s the one who decides who lives and who dies,” Goldbarg said.

Goldbarg then moved methodically through the evidence linking Guzman to each of a series of drug seizures by authorities in the 1990s and 2000s. Her argument is expected to last the rest of the day.

Guzman called only one witness in his defense on Tuesday. One of his lawyers is expected to deliver his closing argument on Thursday.

(Reporting By Brendan Pierson in New York; Editing by Anthony Lin and Grant McCool)

In Missouri, J&J faces biggest trial yet alleging talc caused cancer

FILE PHOTO: A Johnson & Johnson building is shown in Irvine, California, U.S., January 24, 2017. REUTERS/Mike Blake/File Photo

By Tina Bellon

NEW YORK (Reuters) – A lawsuit by 22 ovarian cancer patients against Johnson & Johnson went to trial on Wednesday in Missouri state court, marking the largest case the company has faced over allegations its talc-based products contain cancer-causing asbestos.

The women and their families suing in the Circuit Court of the City of St. Louis say decades-long use of J&J’s Baby Powder and other cosmetic talc products caused their disease. They allege the company knew its talc was contaminated with asbestos since at least the 1970s but failed to warn consumers about the risks.

J&J denies both that its talc products cause cancer and that they ever contained asbestos.

J&J is battling some 9,000 cases brought by users of its Baby Powder and Shower to Shower talc products, the latter of which was sold to Valeant Pharmaceuticals in 2012.

The majority of those lawsuits claim talc caused ovarian cancer in women who used it for feminine hygiene. A smaller number of cases allege talc contaminated by asbestos in the mining process caused mesothelioma, a tissue cancer closely linked to asbestos exposure.

The cases that went to trial on Wednesday effectively combine those claims by alleging the women’s ovarian cancer was caused by asbestos in J&J talc products.

J&J lawyer Peter Bicks told the jury on Wednesday that the causes for ovarian cancer are often unknown, according to an online broadcast of the trial by Courtroom View Network.

He said gene mutations and a family history of cancer played an important role and that asbestos was not known to cause ovarian cancer.

Bicks added that testing done by independent laboratories, universities, government agencies, talc suppliers and J&J itself has shown that there is no asbestos in the company’s talc.

But plaintiff’s lawyer Mark Lanier said asbestos and talc, which are closely linked minerals, are intermingled in the mining process, making it impossible to remove the carcinogenic substance. Lanier said there was “no doubt” that talc caused his clients’ ovarian cancer.

“This case is as simple as asbestos breathed in or put inside of you,” Lanier told the jury.

J&J has lost two talc mesothelioma jury trials in the past weeks. Those cases are currently under appeal.

Juries in California and Missouri have also issued verdicts in ovarian cancer cases totaling more than $720 million in damages. Those decisions have either been tossed out or are still under appeal.

(Reporting by Tina Bellon; Editing by Cynthia Osterman)

Widow of Orlando nightclub gunman knew of his plans, prosecutors say

Investigators work the scene following a mass shooting at the Pulse gay nightclub in Orlando Florida, U.S. on June 12, 2016. REUTERS/Carlo Allegri/File Photo

By Joey Roulette

ORLANDO (Reuters) – The widow of the gunman who killed 49 people at a gay nightclub in Orlando, Florida, in 2016 made statements to federal investigators after the attack that proved she knew of her husband’s plans, prosecutors told jurors on Wednesday.

But the defense attorney said Noor Salman was unaware that her husband, gunman Omar Mateen, intended to carry out the Pulse nightclub massacre on June 12, 2016.

“I wish I had gone back and told his family what he was going to do,” Salman told Federal Bureau of Investigation agents, Assistant U.S. Attorney James Mandolfo told jurors during his opening statement at Salman’s federal trial.

Salman made that comment right after she said she was sorry for the shooting rampage that had happened hours earlier, Mandolfo said. The prosecutor said her comment showed she had foreknowledge of the attack.

Salman, 31, faces up to life in prison if she is convicted in U.S. District Court in Orlando of aiding and abetting her husband and obstructing a federal investigation. She is the only person charged in the attack, which ended with Mateen’s death in an exchange of gunfire with police.

Salman was at home with the couple’s then-3-year-old son during her husband’s shooting spree. Defense attorney Linda Moreno told jurors Salman was unaware of her husband’s sinister plans.

“Noor was in the dark about Omar’s secret and despicable life,” Moreno said.

Moreno said the FBI did not record its interrogation of Salman and coerced her into making statements that favored the prosecution.

The trial is expected to last for a month.

According to prosecutors, Salman initially told investigators her husband acted without her knowledge but later acknowledged being aware that he was watching Islamic State recruitment videos, had purchased an assault rifle and examined three possible attack locations.

Salman’s attorneys contend the U.S. government could not show any direct links between Mateen and Islamic State before the attack and has provided no evidence that Salman aided her husband.

Salman was indicted on two charges: obstruction of justice for alleged false statements to federal investigators, and aiding and abetting Mateen in his attempt to provide material support to a terrorist organization.

Mateen, 29, opened fire shortly after the last call for drinks on the club’s popular Latin night.

Holding hostages during his standoff with police, he claimed allegiance to a leader of the Islamic State militant group before being fatally shot.

(Reporting by Joey Roulette in Orlando, Florida; Writing by Dan Whitcomb; Editing by Colleen Jenkins and David Gregorio)

Saudi Arabia says it has seized over $100 billion in corruption purge

A view shows the Ritz-Carlton hotel's entrance gate in the diplomatic quarter of Riyadh, Saudi Arabia, January 30, 2018.

By Stephen Kalin and Katie Paul

RIYADH (Reuters) – Saudi Arabia’s government has arranged to seize more than $100 billion through financial settlements with businessmen and officials detained in its crackdown on corruption, the attorney general said on Tuesday.

The announcement appeared to represent a political victory for Crown Prince Mohammed bin Salman, who launched the purge last November and predicted at the time that it would net about $100 billion in settlements.

Dozens of top officials and businessmen were detained in the crackdown, many of them confined and interrogated at Riyadh’s opulent Ritz-Carlton Hotel.

Well over 100 detainees are believed to have been released.

Billionaire Prince Alwaleed bin Talal, owner of global investor Kingdom Holding, and Waleed al-Ibrahim, who controls influential regional broadcaster MBC, were freed last weekend.

“The estimated value of settlements currently stands at more than 400 billion riyals ($106 billion) represented in various types of assets, including real estate, commercial entities, securities, cash and other assets,” Sheikh Saud Al Mojeb said in a statement.

The huge sum, if it is successfully recovered, would be a big financial boost for the government, which has seen its finances strained by low oil prices. The state budget deficit this year is projected at 195 billion riyals.

In total, the investigation subpoenaed 381 people, some of whom testified or provided evidence, Mojeb said, adding that 56 people had not reached settlements and were still in custody, down from 95 early last week.

The government has generally declined to reveal details of the allegations against detainees or their settlements, making it impossible to be sure how much corruption has been punished or whether the $100 billion figure is realistic.

The only settlement disclosed so far was a deal by senior prince Miteb bin Abdullah to pay more than $1 billion, according to Saudi officials. Miteb was once seen as a leading contender for the throne, so his detention fueled suspicion among foreign diplomats there might be political motives behind the purge.

Although officials said both Prince Alwaleed and Ibrahim reached financial settlements after admitting unspecified “violations”, Prince Alwaleed continued to insist publicly he was innocent, while MBC said Ibrahim had been fully exonerated.

Economy minister Mohammed al-Tuwaijri told CNN this month that most assets seized in the purge were illiquid, such as real estate and structured financial instruments. That suggested the government may not have gained large sums of cash to spend.

In another sign that the investigation was winding down, a Saudi official told Reuters on Tuesday that all detainees had now left the Ritz-Carlton. The hotel, where the cheapest room costs $650 a night, is to reopen to the public in mid-February.

Some detainees are believed to have been moved from the hotel to prison after refusing to admit wrongdoing and reach financial settlements; they may stand trial.

Bankers in the Gulf said the secrecy of the crackdown had unsettled the business community and could weigh on the willingness of local and foreign businesses to invest.

“It’s reassuring if this situation is finally at an end, as the process was not clear from the start and at least if it is now ended, that provides some clarity and closure,” said a banker who deals with Saudi Arabia.

But Prince Mohammed appears to have won widespread approval for the purge among ordinary Saudis, partly because the government has said it will use some of the money it seizes to fund social benefits.

“What has happened is great, it will be counted as a win for the government. Whoever the person is, he is being held accountable, whether a royal or a citizen,” said Abdullah al-Otaibi, drinking at a Riyadh coffee shop on Tuesday.

An international financier visiting the region said authorities’ tough approach might ultimately prove effective.

“There are many different ways to fight corruption and not all of them are effective. Ukraine tried to do it by creating institutions, but that hasn’t really worked as that approach doesn’t change behavior,” he said.

“Saudi’s approach stands a better chance of being effective as it’s more direct.”

(Additional reporting by Sarah Dadouch in Riyadh and Tom Arnold in Dubai; Reporting by Andrew Torchia and Angus MacSwan)

Federal agents found fetuses in body broker’s warehouse

Arthur Rathburn is pictured at the University of Michigan in Ann Arbor, Michigan, U.S. in November 1988.

By John Shiffman and Brian Grow

WASHINGTON (Reuters) – Federal agents discovered four preserved fetuses in the Detroit warehouse of a man who sold human body parts, confidential photographs reviewed by Reuters show.

The fetuses were found during a December 2013 raid of businessman Arthur Rathburn’s warehouse. The fetuses, which appear to have been in their second trimester, were submerged in a liquid that included human brain tissue.

Rathburn, a former body broker, is accused of defrauding customers by sending them diseased body parts. He has pleaded not guilty and his trial is set for January.

How Rathburn acquired the fetuses and what he intended to do with them is unclear. Rathburn’s lawyers did not respond to requests for comment, and neither the indictment nor other documents made public in his case mention the fetuses.

“This needs to be reviewed,” said U.S. Representative Marsha Blackburn, a Republican from Tennessee who recently chaired a special U.S. House committee on the use of fetal tissue.

Blackburn recoiled when a Reuters reporter showed her some of the photographs, taken by government officials involved in the raid.

In four of the photos, a crime scene investigator in a hazmat suit uses forceps to lift a different fetus from the brownish liquid. In three other photos, a marker that includes a government evidence identification number lies beside a fetus.

“The actions depicted in these photos are an insult to human dignity,” said U.S. Representative Bob Goodlatte, chairman of the House Judiciary Committee. A Republican from Virginia, Goodlatte said that if individuals “violate federal laws and traffic in body parts of unborn children for monetary gain,” they should be “held accountable.”

Blackburn said the discoveries in Rathburn’s warehouse raise questions about the practices of body brokers across America. Such brokers take cadavers donated to science, dismember them and sell them for parts, typically for use in medical research and education. The multimillion-dollar industry has been built largely on the poor, who donate their bodies in return for a free cremation of leftover body parts.

The buying and selling of cadavers and other body parts — with the exception of organs used in transplants — is legal and virtually unregulated in America. But trading in fetal tissue violates U.S. law.

In most states, including Michigan, public health authorities are not required to regularly inspect body broker facilities. As a result, it’s impossible to know whether body brokers who deal in adult donors are acquiring and profiting from fetuses.

Blackburn’s call for action came in response to a Reuters series that exposed abuses in the human body trade and what Blackburn called “lax oversight” and “lax enforcement” of the industry.

Photos from inside Rathburn’s warehouse offered a stark example of government failures to police the industry. They include images of rotting human heads, some floating face up in a plastic cooler. The Federal Bureau of Investigation, which has been investigating Rathburn and other body brokers, declined to comment.

Blackburn said she found other Reuters stories about the body trade disturbing.

As part of the news agency’s examination of the industry, for example, a Reuters reporter was able to purchase two human heads and a cervical spine from Restore Life USA, a broker based in Blackburn’s home state of Tennessee. The deals were struck after just a few emails, at a cost of $900 plus shipping.

“It is sickening” how easily Restore Life sold the parts to Reuters, Blackburn said.

Told of Blackburn’s concerns, Restore Life owner James Byrd said his company has “invited her to tour our facility and to review the policy and procedures we have in place.”

(Shiffman reported from Washington. Grow reported from Atlanta. Edited by Blake Morrison.)

After four months jail, Turkey’s Amnesty director says trial is ‘surreal’

Idil Eser, the director of Amnesty in Turkey, poses during an interview with Reuters in Istanbul, Turkey, October 31, 2017.

By Ece Toksabay

ISTANBUL (Reuters) – Amnesty International’s Turkey director, freed from four months detention but still facing trial on terrorism charges, said the case against her and other human rights activists was “absurd and surreal”.

Idil Eser was one of eight activists freed last week on bail, in a case which has become a flash-point in Turkey’s tense relations with Europe. Their trial has brought condemnation from rights groups and some Western governments concerned by what they see as creeping authoritarianism in the NATO member state.

The activists were detained by police in July as they attended a workshop on digital security and information management on an island near Istanbul.

The charge against them, of aiding a terrorist organization, is similar to those leveled against tens of thousands of Turks detained since a failed military coup by rogue soldiers in July 2016, in which at least 240 people were killed.

“I cannot even find words to describe the absurdity, the surreality of the situation. It’s total nonsense,” Eser said when asked about the charges. She was speaking to Reuters in her first interview since being released.

Turkey rejects foreign criticism of the trials and says its judiciary operates independently of the government.

“Turkey is a state of law and our judges are independent and impartial,” Deputy Prime Minister Bekir Bozdag told reporters earlier this week when asked about the case.

At the time of the activists’ detention, President Tayyip Erdogan said the eight had gathered on the island for a meeting “that might be considered as a follow-up” to last year’s failed coup, which he has cast as part of a foreign-backed plot.

Erdogan was quoted by several Turkish newspapers on Thursday as telling reporters on his plane that the judiciary was acting independently in the case. “We cannot know how the court will rule in the end,” the Hurriyet newspaper quoted him as saying.

 

JAIL SENTENCES

The indictment also brought charges against Swedish national Ali Gharavi and Peter Steudtner, a German, prompting an angry response from Berlin, which threatened to put curbs on economic investment in Turkey and said it was reviewing arms projects.

The day after their release last week, Steudtner and Gharavi left Turkey, but the trial continues on Nov. 22. Prosecutors have sought jail sentences of up to 15 years for all of the defendants.

Steudtner and Gharavi told the court during the trial that they were shocked by the allegations against them. They could not immediately be reached for further comment.

Authorities have jailed more than 50,000 people pending trial in a crackdown following the abortive coup. Erdogan says the purges across society are necessary to maintain stability in Turkey, a NATO member state bordering Iran, Iraq and Syria.

European allies fear he is using the investigations to check opposition and undermine the judiciary.

Eser said her time in jail had marked a turning point in her life. Less than a week after her release, the 54-year-old made an appointment at a tattoo parlor in central Istanbul.

“With other defendants, we had decided to go to a Turkish bath when we got out, and the other decision was to get a tattoo,” she said. “So I started right away.”

 

(Additional reporting by Orhan Coskun; Editing by Dominic Evans and Nick Tattersall)

 

Two ex-Trump aides charged in Russia probe, third pleads guilty

Two ex-Trump aides charged in Russia probe, third pleads guilty

By Sarah N. Lynch and Karen Freifeld

WASHINGTON (Reuters) – Federal investigators probing Russian interference in the 2016 U.S. election charged President Donald Trump’s former campaign manager Paul Manafort and another aide, Rick Gates, with money laundering on Monday.

A third former Trump adviser, George Papadopoulos, pleaded guilty in early October to lying to the FBI, it was announced on Monday.

It was a sharp escalation of U.S. Justice Department Special Counsel Robert Mueller’s five-month-old investigation into alleged Russian efforts to tilt the election in Trump’s favor and into potential collusion by Trump aides.

Manafort, 68, a longtime Republican operative, and Gates were arraigned at a federal courthouse in Washington.

Both men pleaded not guilty to the charges in a 12-count indictment, ranging from money laundering to acting as unregistered agents of Ukraine’s former pro-Russian government.

The judge ordered house arrest for both men, and set a $10 million unsecured bond for Manafort and a $5 million unsecured bond for Gates. With unsecured bonds, they are released without having to pay but will owe money if they fail to appear in court. There will be another hearing on Thursday.

The developments in the Mueller probe weighed on the U.S. dollar, which slipped 0.5 percent against a basket of currencies.

Mueller’s investigation and others by congressional committees into alleged Russian efforts to influence the election have cast a shadow over Trump’s first nine months in office.

U.S. intelligence agencies say Russia interfered in the election by hacking and releasing embarrassing emails and disseminating propaganda via social media to discredit Democratic presidential candidate Hillary Clinton. Russia denies the allegations and Trump denies any collusion.

Neither Trump nor his campaign was mentioned in the indictment against Manafort and Gates. The charges, some going back more than a decade, center on Manafort’s work for Ukraine.

The indictment includes accusations of conspiracy against the United States, failure to report foreign bank accounts to the U.S. government and conspiracy to launder money, a count that carries a 20-year maximum prison sentence.

A White House spokeswoman said the indictment had nothing to do with Trump or his campaign and showed no evidence of collusion between the campaign and Russia.

“We’ve been saying from Day One there’s no evidence of Trump-Russia collusion, and nothing in the indictment today changes that at all,” spokeswoman Sarah Sanders told a news briefing.

Manafort’s attorney, Kevin Downing said in a statement that there was no evidence the Trump campaign colluded with the Russian government. Downing said Manafort’s work for the Ukrainians ended in 2014, two years before he joined the Trump campaign.

Downing accused Mueller of using a “novel” legal theory to prosecute Manafort under a law requiring lobbyists to register with the Department of Justice when they are doing work for a foreign government.

GUILTY PLEA

In a development directly related to Trump’s 2016 election campaign, it emerged on Monday that Papadopoulos, a former campaign adviser, pleaded guilty earlier this month to making false statements to Federal Bureau of Investigation agents.

Mueller’s office said Papadopoulos lied to FBI agents about the timing of contact between him and a professor in London who claimed to have information that would hurt Clinton.

Papadopoulos, a little-known former foreign policy adviser in the campaign, made a plea bargain that stated he had since “met with the Government on numerous occasions to provide information and answer questions,” according to a court document.

Sanders, the White House spokeswoman, said Papadopoulos’ role in the campaign was “extremely limited” and that he was a volunteer.

“He asked to do things (and) he was basically pushed back or not responded to in any way,” she said.

In a May 4 email quoted in the Papadopoulos indictment, a Trump campaign employee forwarded a message from Papadopoulos proposing a meeting between Trump and the Russian government to another campaign official.

The employee included a note, according to the indictment, that read: “Let’s discuss. We need someone to communicate that DT is not doing these trips. It should be someone low level in the campaign so as not to send any signal.”

A source in Washington, who did not want to be identified and who has seen the email, said the sender was Manafort and the recipient was Gates.

Manafort ran the Trump campaign from June to August of 2016 before resigning amid reports he might have received millions of dollars in illegal payments from a pro-Russian political party in Ukraine.

FRUSTRATION

Trump reiterated his frustration on Monday with the Mueller probe, which he has called “a witch hunt.”

“Sorry, but this is years ago, before Paul Manafort was part of the Trump campaign. But why aren’t Crooked Hillary & the Dems the focus?????,” Trump wrote on Twitter, referring to Clinton.

Mueller has been investigating Manafort’s financial and real estate dealings and his prior work for a political group, the Party of Regions, which backed former pro-Kremlin Ukrainian President Viktor Yanukovich.

Both Manafort and Gates generated tens of millions of dollars of income from Ukraine work and laundered money through scores of U.S. and foreign entities to hide payments from American authorities, the indictment said.

They concealed from the United States their work and revenue as agents of Ukrainian political parties and used their wealth to lead a “lavish lifestyle” without paying taxes on the income, it said.

The indictment said Manafort owned properties in Manhattan, Brooklyn, the Hamptons, Arlington, Virginia, and elsewhere.

Prosecutors said Manafort spent almost $1 million on eight rugs in two years and more than $1.3 million on clothes from shops in Beverly Hills, California, and New York City. They also said he had been making payments on four Range Rovers and a Mercedes-Benz.

Gates was a longtime business partner of Manafort and has ties to Russian and Ukrainian oligarchs. He also served as deputy to Manafort during his brief tenure as Trump’s campaign chairman.

(Reporting by Sarah N. Lynch and Karen Freifeld; Additional reporting by Doina Chiacu, Susan Heavey, Steve Holland and Mark Hosenball in Washington and Jan Wolfe, Megan Davies and Emily Flitter in New York.; Writing by Alistair Bell and Caren Bohan; Editing by Jonathan Oatis and Peter Cooney)

Brooklyn man sentenced to 15 years prison over Islamic State support

Brooklyn man sentenced to 15 years prison over Islamic State support

By Jonathan Stempel and Brendan Pierson

NEW YORK (Reuters) – A Brooklyn man was sentenced on Friday to 15 years in prison after pleading guilty to conspiring to provide material support to Islamic State.

Abdurasul Hasanovich Juraboev, 27, was sentenced by U.S. District Judge William Kuntz in the federal court in Brooklyn.

The defendant, an Uzbekistan citizen who once chopped salad at a Brooklyn gyro shop, was one of six people charged in the same case with plotting to aid Islamic State, a U.S.-designated foreign terrorist organization.

Prosecutors sought a 15-year prison term, the maximum possible. Lawyers for Juraboev sought no more than five years, calling him an “unsophisticated, gullible, and lonely young man” who reached “wrong conclusions” about Islam and Islamic State.

Michael Weil, a federal public defender representing Juraboev, declined to comment after the sentencing.

Authorities said Juraboev had in August 2014 posted an online threat to kill then-U.S. President Barack Obama on behalf of Islamic State, and spoke of planting a bomb on Coney Island if the group ordered it.

Juraboev was arrested in February 2015, after buying a plane ticket to fly the next month to Istanbul, Turkey, intending to then travel to Syria to join Islamic State, authorities said.

Two co-defendants, Akhror Saidakhmetov and Abror Habibov, pleaded guilty this year, and charges are still pending against co-defendants Dilkhayot Kasimov, Azizjon Rakhmatov and Akmal Zakirov, court records show. Saidakhmetov faces a Dec. 13 sentencing.

Saidakhmetov was also arrested in February 2015, as he was boarding a plane to Istanbul, authorities said.

The arrests of Juraboev and Saidakhmetov followed roughly five months of interactions between the men and a paid informant posing as being ideologically sympathetic.

Other defendants were charged with conspiring to pay Juraboev’s and Saidakhmetov’s travel expenses.

Another Uzbekistan citizen, Dilshod Khusanov, was in August charged in a separate case with having discussed with Zakirov providing funds for Saidakhmetov’s trip, and helping others join Islamic State or al-Nusrah Front, another militant group.

More than 100 people have faced U.S. charges in connection with Islamic State since 2014.

(Reporting By Brendan Pierson and Jonathan Stempel in New York; Editing by Marguerita Choy)

Pharmacist guilty of fraud, not murder, over U.S. meningitis outbreak

Pharmacist guilty of fraud, not murder, over U.S. meningitis outbreak

By Nate Raymond

BOSTON (Reuters) – A Massachusetts pharmacist was convicted of racketeering and fraud charges but was cleared of murder on Wednesday for his role in a 2012 fungal meningitis outbreak that killed 76 people and sickened hundreds more across the United States.

Jurors found that federal prosecutors in Boston failed to prove Glenn Chin, 49, committed second-degree murder in connection with the deaths of 25 people who were injected with mold-tainted steroids produced at the now-defunct New England Compounding Center.

The federal jury instead found Chin guilty on racketeering, conspiracy and mail fraud charges stemming from his role as the pharmacist who supervised the so-called clean rooms in which NECC’s drugs were made.

The verdict came after a separate jury in March found Barry Cadden, NECC’s co-founder and former president, guilty of racketeering and fraud but similarly cleared him of murder. Cadden, 50, was sentenced in June to nine years in prison.

“No matter what these prosecutors tell you, this was never a murder case, ever, ever, ever,” said Stephen Weymouth, Chin’s lawyer.

He called the verdict a victory, noting that a murder conviction would have exposed Chin to a maximum prison sentence of life. Weymouth said he now expected Chin to receive a prison term no longer than Cadden’s when he is sentenced Jan. 30.

Prosecutors say that 778 people nationwide were sickened after being injected with contaminated steroids produced in unsanitary conditions at Framingham, Massachusetts-based NECC.

The outbreak led Congress in 2013 to pass a law that aimed to clarify the U.S. Food and Drug Administration’s ability to oversee large compounding pharmacies that make custom drugs.

Prosecutors said Chin directed staff in NECC’s clean rooms to skip cleaning despite the presence of insects, mice and mold.

They claimed Chin disregarded the probability that people could die if he failed to ensure drugs were produced in sanitary conditions and were properly sterilized in order to keep up with demand from hospitals nationally for its medicines.

His lawyers countered that Chin never meant for anyone to die. They said blame instead rested with Cadden, who made all of the decisions at NECC and trained Chin on how to produce drugs in the ways that prosecutors contend were unsafe.

Lesser charges were filed against 12 other people associated with NECC. Three have pleaded guilty. A federal judge dismissed charges against two defendants in 2016. Charges remain pending against the rest.

(Reporting by Nate Raymond in Boston; Editing by Andrew Hay)