The Washington Post

Former mob-linked figure describes ties to Trump

Ex-stockbroke­r says pair talked often, but mogul says he barely knew him

- BY ROSALIND S. HELDERMAN AND TOM HAMBURGER

On the 24th floor of Trump Tower, in an office two floors below Donald Trump, Felix Sater wastrying to revive his career. The Russian-born businessma­n had already done a stint in prison for stabbing a man in the face with the stem of a margarita glass, and he was now awaiting sentencing for his role in a Mafia-orchestrat­ed stock-fraud scheme — all the while serving as a government informant on the mob and mysterious matters of national security.

But Sater and his business partners had an idea: They would build Trump Towers in U.S. cities and across the former Soviet bloc. Sater pitched it to Trump, who gave Sater’s company rights to explore projects in Moscow as well as in Florida and New York.

“Anybody can come in and build a tower,” Sater told potential investors, according to testimony in a 2008 court case. “I can build a Trump Tower, because ofmy relationsh­ip with Trump.”

Sater’s “Trump card,” as he called it, didn’t work everywhere. The Moscow deal fell apart. But their relationsh­ip continued — though just how close they were is now in dispute.

Trump has repeatedly said he

barely remembers Sater. In sworn testimony in 2013, Trump said he wouldn’t recognize Sater if they were sitting in the same room. In an interview last year with the Associated Press, he said, “Felix Sater, boy, I have to even think about it.”

Sater, in previously unreported sworn testimony reviewed by The Washington Post, described a closer relationsh­ip.

Sater said he popped into Trump’s office frequently over a six-year period to talk business. He recalled flying to Colorado with Trump and said that Trump once asked him to escort his children Donald Jr. and Ivanka around Moscow.

Sater’s account, which came during a deposition in a libel case Trump brought against a book author, offers new insights into Trump’s relationsh­ip with a complicate­d figure.

Sater has both been accused by former business associates of threatenin­g to kill them and praised by top government officials for informatio­n that has led to numerous mob conviction­s and national security gains.

His relationsh­ip with Trump has created unwanted attention for the real-estate-mogul-turnedpres­idential-candidate as Sater and his onetime company have endured legal disputes with former business associates and investors who lost money in failed Trump-branded projects.

Sater arrived in Trump’s orbit as the mogul was shifting his business model. Seizing on the success of his reality television show, “The Apprentice,” he focused on licensing his name to developers constructi­ng high-rise hotels and condominiu­m projects.

Trump and his lawyers have said that he was not aware of Sater’s criminal past when he first signed on to do business with Sater’s firm, Bayrock Group. Sater’s involvemen­t in the stock fraud was kept secret for years by federal prosecutor­s because of his role as an informant.

But even after elements of Sater’s background were disclosed in a 2007 New York Times article, he remained in close proximity to Trump — at one point using Trump Organizati­on office space and business cards.

Alan Garten, a lawyer for the Trump Organizati­on, did not dispute Sater’s account of the two men’s relationsh­ip but said it differed from Trump’s perception of events. He said Trump holds hundreds of meetings a year with people for whom the interactio­ns are often more memorable than for the celebrity tycoon.

“I can see how the relationsh­ip may have been viewed differentl­y from one person’s side of the relationsh­ip from the other,” he said, adding: “There was no relationsh­ip with Mr. Sater. The relationsh­ip was a business relationsh­ip with Bayrock.”

Sater, through his attorney, declined to comment. He has addressed his past conduct on his website, writing that he made “some poor and regrettabl­e judgment calls in business” but that he had admitted his wrongdoing and pleaded guilty before assisting the government with “numerous issues of national security, including thwarting terrorist attacks against our country.”

The lawyer, Robert S. Wolf, did not address Sater’s relationsh­ip with Trump but stressed Sater’s work for the government, saying he saved lives, including by providing “significan­t intelligen­ce with respect to nuclear weapons in a major country openly hostile to the United States.”

Guilty plea in stock scheme

Sater, 50, emigrated from the Soviet Union, arriving in Brooklyn when he was 8. He has said his family, which is Jewish, left to escape persecutio­n.

Sater pursued a career as a stockbroke­r. But he lost his trading license after the margarita glass incident, which occurred during a 1991 bar fight and led to a year in prison.

Broke and with a young wife and child to support, Sater has said he hooked up with a boyhood friend who was operating a Mafia linked brokerage firm. He pleaded guilty in 1998 to one count of racketeeri­ng as part of a $40 million stock fraud in which Wall Street brokers artificial­ly inflated the price of stocks.

The scheme relied on members of the La Cosa Nostra crime families for extortion and to resolve disputes, federal authoritie­s alleged, part of a concerted effort by organized crime to make inroads on Wall Street.

He was spared prison time in recognitio­n of what an FBI agent later called “extraordin­ary” cooperatio­n as a witness in unnamed national security cases.

During that period, Sater turned his attention to real estate. Around 2001, he joined Bayrock, which had its offices in Trump Tower. Sater has testified that he met Trump and started to pitch business ideas to him soon thereafter.

The two developed a rapport, Sater testified.

He described the relationsh­ip as “friendly,” saying he had met one on one with Trump “numerous times” in Trump’s office to discuss various projects. In Phoenix, Sater testified, he met with local officials alongside Trump’s son Donald Jr. In New York, Sater said he met with Trump and Trump’s staff “on a constant basis” to discuss possible deals in places such as Los Angeles, Ukraine and China.

Documents show that Trump in 2005 extended Bayrock a oneyear deal to develop a project in the Russian capital. Sater said he had located a group of interested Russian investors, as well as a possible site for a luxury high-rise — a shuttered pencil factory that had been named for American radicals Nicola Sacco and Bartolomeo Vanzetti, who were convicted of murder and executed during the “red scare” that swept the United States after World War I.

“I handled all of the negotiatio­ns,” Sater said of the Russia deal, which did not come to fruition. Asked whether there was paperwork drawn up on the deal, he responded: “It was more of verbal updates when I’d come back, pop my head into Mr. Trump’s office and tell him, you know, ‘ Moving forward on the Moscow deal.’ And he would say, ‘All right.’ ”

“I showed him photos, I showed him the site, showed him the view from the site. It’s pretty spectacula­r,” Sater said.

When Trump’s children Donald Jr. and Ivanka were planning a trip to Moscow in 2006, Sater said that Trump asked him to squire them around the city.

“They were on their way by themselves, and he was all concerned,” Sater said. “He asked if I wouldn’t mind joining them and looking after them while they were in Moscow.”

Garten, Trump’s lawyer, said that Trump’s adult children and Sater happened to be there at the same time. “There was no accompanyi­ng them to Moscow,” Garten said.

Sater said he also attended social events where Trump had been present and had visited Trump’s Mar-a-Lago estate in Palm Beach, Fla., though not at Trump’s invitation.

Sater attended a glitzy launch party with Trump in 2007 cel- ebrating Trump SoHo, a 46-story Manhattan project that Bayrock helped develop.

When the New York Times first linked Sater to the mob stock and money laundering scheme later that year, Trump expressed surprise.

“We do as much of a background check as we can on the principals. I didn’t really know him very well,” Trump told the Times, adding that he dealt primarily with other Bayrock executives.

Garten told The Post that, prior to the 2007 article, Trump’s company knew “none” of Sater’s criminal past and “would have had no reason to inquire.”

The disclosure led to problems for Bayrock and Trump.

When one of the firm’s most ambitious projects, the oceanfront Trump Internatio­nal Hotel and Tower in Fort Lauderdale, Fla., became embroiled in disputes after constructi­on stalled in 2009, aggrieved condo buyers filed suit, claiming, among other things, that Trump and others had failed to tell them about the criminal past of a key member of the developmen­t team.

Trump walked away from the failing project, saying he held no responsibi­lity since he had merely licensed his name to the effort.

He claimed in sworn testimony in 2013 as part of the dispute that he barely knew Sater.

“If he were sitting in the room right now, I really wouldn’t know what he looked like,” Trump said, adding that he had spoken with Sater “not many” times.

Sater, however, was memorable to others associated with Bayrock and its projects.

One former Bayrock employee alleged in a lawsuit that Sater once told him during a dispute to “shut up or risk being killed.” Another lawsuit filed in Arizona in 2007 alleged that Sater had threatened a local project partner named Ernest Mennes. According to the lawsuit, Sater called Mennes in 2006 and threatened that his cousin “would electrical­ly shock Mr. Mennes’ testicles, cut off Mr. Mennes’ legs, and leave Mr. Mennes dead in the trunk of his car” if Mennes revealed his criminal past.

Mennes said he was barred by a legal settlement from discussing the matter. “I wish Mr. Sater well,” he said, adding that he is now supporting Trump for president.

Wolf, Sater’s attorney, said the claim that Sater had threatened violence was “an outright fabricatio­n” made in the course of lawsuits that have included “baseless and highly defamatory” accusation­s designed to win money from Bayrock.

Testifying in a Trump lawsuit

As Sater became a more controvers­ial figure, Trump did not cut ties.

In 2008, Trump’s lawyers asked Sater to testify in Trump’s libel suit against journalist Tim O’Brien, arguing that O’Brien’s book, “Trump Nation,” damaged his reputation and cost him projects that Bayrock and others had been pursuing. The suit was dismissed.

At the time, Sater testified he was in the process of leaving Bayrock because of the publicity around his past.

During his 2009 sentencing, which had been delayed because of his work as a government witness, Sater bemoaned leaving Bayrock, a company he said he “had built with my own two hands.”

“Here I am trying to rehabilita­te myself and keep getting the rug pulled out from under me,” Sater told the judge.

After Sater left Bayrock, he was given Trump Organizati­on business cards and office space so he could continue searching for deals for the company, Garten said. The cards, first reported by the Associated Press, identified Sater as a “senior advisor to Donald Trump.”

Garten said Sater was never a Trump Organizati­on employee and was paid nothing during the brief 2010 arrangemen­t. “Nothing came of it, and they went their separate ways,” Garten said.

According to his website, Sater has continued to work in real estate and finance for a number of internatio­nal companies. His site touts his work on Trump projects and his extensive philanthro­py. He is an active member of Chabad, an Orthodox Jewish sect, and, in 2014, was named Man of the Year by Chabad of Port Washington, N.Y.

His background emerged again last year during Loretta E. Lynch’s confirmati­on hearings to become attorney general. Lynch, who was U.S. attorney in the office that prosecuted the stock fraud, was asked to respond to allegation­s that Sater had been let off too easily and the government should not have hidden his conviction from public view.

Lynch told senators that Sater had “provided valuable and sensitive informatio­n” for more than 10 years and that his work had been “crucial to national security and the conviction of over 20 individual­s, including those responsibl­e for committing massive financial fraud and members of La Cosa Nostra.”

Sater has generally declined to comment about his relationsh­ip with Trump. But earlier this month, he tweeted his support for Trump’s presidenti­al run, congratula­ting Trump on appearing to clinch the GOP nomination. “He will make the greatest President of our century,” Sater wrote.

 ?? MARK VON HOLDEN/WIREIMAGE ?? From left, businessme­n Donald Trump, Tevfik Arif and Felix Sater attend a launch party for Trump SoHo in 2007. Trump was unaware of Sater’s criminal past when he began working with him.
MARK VON HOLDEN/WIREIMAGE From left, businessme­n Donald Trump, Tevfik Arif and Felix Sater attend a launch party for Trump SoHo in 2007. Trump was unaware of Sater’s criminal past when he began working with him.
 ?? CYRUS MCCRIMMON/DENVER POST ?? Donald Trump, center, walks outside of a business convention in Loveland, Colo., in 2005. Felix Sater is at right, wearing a red tie. In sworn testimony in 2013, Trump said that if Sater “were sitting in the room right now, I really wouldn’t know what he looked like.” Watch a video of Trump’s 2013 deposition at wapo.st/TrumpSater.
CYRUS MCCRIMMON/DENVER POST Donald Trump, center, walks outside of a business convention in Loveland, Colo., in 2005. Felix Sater is at right, wearing a red tie. In sworn testimony in 2013, Trump said that if Sater “were sitting in the room right now, I really wouldn’t know what he looked like.” Watch a video of Trump’s 2013 deposition at wapo.st/TrumpSater.

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