[Congressional Record Volume 163, Number 85 (Wednesday, May 17, 2017)]
[House]
[Pages H4291-H4294]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           RAISING A QUESTION OF THE PRIVILEGES OF THE HOUSE

  Mr. PASCRELL. Mr. Speaker, I rise to a question of the privileges of 
the House and offer the resolution previously noticed.
  The SPEAKER pro tempore. The Clerk will report the resolution.
  The Clerk read as follows:

       Expressing the sense of the House of Representatives that 
     the President shall immediately disclose his tax return 
     information to Congress and the American people.
       Whereas, in the United States' system of checks and 
     balances, Congress has a responsibility to hold the Executive 
     Branch of government to the highest standard of transparency 
     to ensure the public interest is placed first;
       Whereas, according to the Tax History Project, every 
     President since Gerald Ford has disclosed their tax return 
     information to the public;
       Whereas, tax returns provide an important baseline 
     disclosure because they contain highly instructive 
     information including whether the candidate paid taxes, what 
     they own, what they have borrowed and from whom, whether they 
     have made any charitable donations, and whether they have 
     taken advantage of tax loopholes;
       Whereas, disclosure of the President's tax returns could 
     help those investigating Russian influence in the 2016 
     election understand the President's financial ties to the 
     Russian Federation and Russian citizens, including debts owed 
     and whether he shares any partnership interests, equity 
     interests, joint ventures or licensing agreements with Russia 
     or Russians;
       Whereas, the President fired FBI Director James Comey last 
     week, whose FBI was investigating whether the Trump campaign 
     colluded with Russia to influence the 2016 election;
       Whereas, Attorney General Jeff Sessions, who made the 
     recommendation to fire Director Comey, during sworn testimony 
     neglected to mention his contacts with the Russian ambassador 
     and recused himself from anything involving the Russian 
     investigation;
       Whereas, Senate Russia investigators have requested 
     information from the Treasury Department's criminal 
     investigation division, the Financial Crimes Enforcement 
     Network, or FinCEN, which handles cases of money laundering, 
     for information related to President Trump, his top officials 
     and campaign aides. FinCEN has been investigating allegations 
     of foreign money-laundering through purchases of U.S. real 
     estate;
       Whereas, the President's tax returns would show us whether 
     he has foreign bank accounts and how much profit he receives 
     from his ownership in myriad partnerships;
       Whereas, the President hired a law firm to send a letter to 
     Senator Lindsey Graham to fight suggestions he has Russian 
     business ties; this letter left open the question whether Mr. 
     Trump or his firms received Russian income or loans or 
     derived income from Russian-linked partnerships.
       Whereas, Donald Trump Jr. said the Trump Organization saw 
     money ``pouring in from Russia'' and that ``Russians make up 
     a pretty disproportionate cross-section of a lot of our 
     assets.''
       Whereas, the White House will not confirm whether the 
     President has filed a 2016 tax return;
       Whereas, Congress gave itself the authority to review an 
     individual's tax returns to investigate and reveal possible 
     conflicts of interest of executive branch officials involved 
     in the Teapot Dome scandal.
       Whereas, President Donald Trump's executive order on the 
     Review of designations under the Antiquities Act has directed 
     the U.S. Secretary of the Interior Ryan Zinke to review 
     national monuments that presidents have designated or 
     expanded since 1996.
       Whereas, this review was praised by industry groups who 
     could benefit financially from oil, gas and mining and 
     condemned by environmental organizations concerned this 
     review will scrap or scale back critical federal designation 
     to protect tribal and historic lands.
       Whereas, the American people are in the dark to knowing if 
     this review was started to justify selling or leasing public 
     lands to private corporations that could enrich the President 
     or his business partners without reviewing the President's 
     tax returns.
       Whereas, it has been reported that federal prosecutors have 
     issued grand jury subpoenas to associates of former National 
     Security Advisor Michael Flynn seeking business records as 
     part of the ongoing probe into Russian involvement in the 
     2016 election;
       Whereas, according to his 2016 candidate filing with the 
     Federal Election Commission, the President has 564 financial 
     positions in companies located in the United States and 
     around the world;
       Whereas, against the advice of ethics attorneys and the 
     Office of Government Ethics, the President has refused to 
     divest his ownership stake in his businesses; and can still 
     withdraw funds at any time from the trust of which he is the 
     sole beneficiary;
       Whereas, the Emoluments Clause was included in the U.S. 
     Constitution for the express purpose of preventing federal 
     officials from accepting any ``present, Emolument, Office, or 
     Title . . . from any King, Prince, or foreign state'';
       Whereas, the most signed petition on the White House 
     website calls for the release of the President's tax return 
     information to verify compliance with the Emoluments Clause, 
     with 1 million, 94 thousand signatures as of date of this 
     resolution;
       Whereas, the Chairmen of the Ways and Means Committee, 
     Joint Committee on Taxation, and Senate Finance Committee 
     have

[[Page H4292]]

     the authority to request the President's tax returns under 
     Section 6103 of the tax code;
       Whereas, the Joint Committee on Taxation reviewed the tax 
     returns of President Richard Nixon in 1974 and made the 
     information public;
       Whereas, the Ways and Means Committee used IRC 6103 
     authority in 2014 to make public the confidential tax 
     information of 51 taxpayers;
       Whereas, the American people have the right to know whether 
     or not their President is operating under conflicts of 
     interest related to international affairs, tax reform, 
     government contracts, or otherwise: Now, therefore, be it:
       Resolved, That the House of Representatives shall--
       1. Immediately request the tax return information of Donald 
     J. Trump for tax years 2006 through 2015 for review in closed 
     executive session by the Committee on Ways and Means, as 
     provided under Section 6103 of the Internal Revenue Code, and 
     vote to report the information therein to the full House of 
     Representatives.
       2. Support transparency in government and the longstanding 
     tradition of Presidents and Presidential candidates 
     disclosing their tax returns.

                              {time}  1745

  The SPEAKER pro tempore. Does the gentleman from New Jersey wish to 
present argument on the parliamentary question whether the resolution 
presents a question of the privileges of the House?
  Mr. PASCRELL. Yes, Mr. Speaker.
  The SPEAKER pro tempore. The gentleman from New Jersey is recognized.
  Mr. PASCRELL. Mr. Speaker, the stunning conflicts of interest are 
piling up as the President, his family, and his friends profit in their 
personal business endeavors while serving in public office.
  Under rule IX, clause 1, questions of the privileges of the House are 
``those affecting the rights of the House collectively, its safety, 
dignity, and the integrity of its proceedings.'' There is nothing more 
of a threat to the integrity of this House than ignoring our duty to 
provide a check and balance to the executive branch. To restore the 
dignity of the House, we must use our authority to request President 
Trump's tax returns and begin to give the American people the 
transparency they deserve. That is what we should be giving them.
  Now, Mr. Speaker, it is evidence time. Today there is in The Wall 
Street Journal an article entitled, ``Russian State-Run Bank Financed 
Deal Involving Trump Hotel Partner.'' It is a very interesting article, 
I advise, and I want to put it into the Record with your permission.
  Mr. Speaker, a letter was sent just recently from Mr. Trump's lawyers 
to Mr. Trump and then on to Senator Lindsey Graham. That letter was 
supposed to be an explanation of the President of the United States' 
involvement in the finances and vice versa of Russia and President 
Trump. It does not in any manner, shape, or form, Mr. Speaker, go into 
any partnership which may exist. There is nothing about that. There is 
nothing about the Russian state-run bank financing a deal involving Mr. 
Trump's hotel partner in Toronto.
  Number three, the Financial Crimes Enforcement Network, FinCEN as it 
is called, which is part of the Treasury Department but independent--
independent--has independent investigative powers. They are looking 
into the money laundering in that situation. They are already 
investigating that with these Russian oligarchs--very interesting.
  Also we know of what happened----
  The SPEAKER pro tempore. The gentleman's remarks must be confined to 
the question of order. The gentleman may proceed.
  Mr. PASCRELL. Well, I would like to know, Mr. Speaker--I am sure you 
would, Mr. Speaker--how foreign investments have enriched the President 
of the United States. That is the only way we are going to find out the 
conflicts of interest--the only way.
  So I have heard some House leaders argue that the House should not 
concern itself with things outside of its control. But section 6103 of 
the IRS Code is very much within the control of the House, if you have 
read it, giving specific responsibility to the chairman of the Ways and 
Means Committee, and the American people are demanding the Congress 
request the President's tax returns be exercised for several reasons.
  Mr. Trump has not divested himself from his businesses as was 
recommended by the Office of Government Ethics.
  Mr. Speaker, I think it is relevant if we look at what was produced--
remember, it is evidence time--what was produced on January 21, 2009, 
the ethics commitments by executive branch personnel and what has been 
committed and produced under this administration. They have laughed at 
Mr. Shaub, who is the ethics commission chairman. They have laughed at 
him because it is almost like Cornelius Vanderbilt: You have the law; I 
have the power.
  The SPEAKER pro tempore. The gentleman will suspend.
  The Chair will hear argument only on whether this resolution 
qualifies under the rule----
  Mr. PASCRELL. On a question of privilege, Mr. Speaker----
  The SPEAKER pro tempore. On the question of order.
  Mr. PASCRELL. I'm sorry to interrupt.
  The SPEAKER pro tempore. The Chair will only hear----
  Mr. PASCRELL. On a question of privilege--I am talking about the 
privilege of this House. I am talking about the privilege of 
Republicans and Democrats. We are all alike. We are all equal. Nobody 
is better than anybody else.
  What I am saying to you tonight, Mr. Speaker, is that this goes to 
the very heart of the issue and why this is a privileged resolution 
because we have a right to know, we have a right to uphold the 
integrity of this institution--everybody--not just some.
  Mr. Trump has not divested himself from his businesses as was 
recommended by the Office of Government Ethics. We need to see how our 
President--our President--would personally benefit from changes to our 
Tax Code. Tax Code changes proposed by his administration could lower 
his own personal tax bill by tens of millions of dollars. The American 
people have a right to know that.
  We have learned that earlier this year the President apparently asked 
Mr. Comey to cease his investigation of Trump National Security Advisor 
Flynn. In a surprise move last week, Mr. Trump fired the Director of 
the FBI.
  The SPEAKER pro tempore. The gentleman is reminded that remarks must 
be confined to the question of order.
  Mr. PASCRELL. Mr. Speaker, I am saying here and very specifically, we 
have no way of knowing whether Mr. Trump or his firms have received 
Russian income. It is an insult to the integrity of this House--
Republicans and Democrats alike. We need to know this. We need to know 
that the President of the United States is beyond question in his 
objectivity with any nation, and particularly those who are pretty 
shaky in relationship with, like Russia.
  A certified letter from paid attorneys that actually confirms the 
President, in fact, does have financial ties to Russia does nothing to 
assuage these concerns.

  The legislative branch has the responsibility--it has the authority--
to check the executive branch, and section 6103(f)(1) is very clear, 
very distinct, the privilege of the House--the privilege of the Tax 
Code--which allows for an examination of the tax returns, the authority 
put in place specifically so Congress could examine conflicts of 
interest in the executive following the Teapot Dome scandal. As I 
mentioned before, the possible sale of public lands under this 
administration is not very different than the biggest scandal of the 
20th century at Teapot Rock, Wyoming.
  Mr. Speaker, nothing could be more of a threat to the integrity of 
this distinguished----
  The SPEAKER pro tempore. The Chair has heard the gentleman's argument 
and is prepared to rule.
  Mr. PASCRELL. Mr. Speaker, I have only 2 more minutes. May I finish?
  The SPEAKER pro tempore. If the gentleman confines his remarks to the 
question of order, the gentleman may conclude his argument.
  Mr. PASCRELL. I am confining my remarks to the question of privileges 
which I said last night. Mr. Speaker, I will not yield on that issue. 
That is all I am doing--no more, no less. This is not a court. All I am 
saying is putting forth the rationale behind the resolution which I 
have put forth today--put forth yesterday and was read today.

[[Page H4293]]

  We have nothing but evidence to justify an examination, Mr. Speaker. 
This is not hot air. If and when such conflicts are revealed, I do not 
want to say to our constituents that we had the power to review these 
conflicts, but we did nothing. I for one do not want the integrity--my 
integrity, the integrity of my colleagues, and the integrity of this 
House--to be demeaned by such a shameful failure. That goes to the very 
heart in their own words of what of a privileged resolution is.
  To restore the dignity of the House, we must use our authority to 
request President Trump's tax returns and give the American people the 
transparency they deserve.
  My concluding statement is this, Mr. Speaker: I mentioned Vanderbilt 
before because that is a very powerful statement he made--a very rich 
guy. He felt he could do anything: The law? What law? I am all the 
power.
  This is not the United States of America, this is not our democracy, 
and this is not what Republicans and Democrats have fought for since 
they have been in this House and before. I stand with us in only 
getting what we deserve, and then we decide whether we will communicate 
it to the American people through the Speaker.
  Mr. Speaker, I thank you for your courtesies.
  The SPEAKER pro tempore. The material referenced by the gentleman's 
earlier unanimous consent request will be inserted following 
disposition of the question of order.
  The Chair is prepared to rule.
  The gentleman from New Jersey seeks to offer a resolution as a 
question of the privileges of the House under rule IX.
  As the Chair ruled most recently on April 5, 2017, the resolution 
directs the Committee on Ways and Means to meet and consider an item of 
business under the procedures set forth in 26 U.S.C. 6103 and, 
therefore, does not qualify as a question of the privileges of the 
House.
  Mr. PASCRELL. Mr. Speaker, I appeal the ruling of the Chair.
  The SPEAKER pro tempore. The question is, Shall the decision of the 
Chair stand as the judgment of the House?


                            Motion to Table

  Mr. ROTHFUS. Mr. Speaker, I have a motion at the desk.
  The SPEAKER pro tempore. The Clerk will report the motion.
  The Clerk read as follows:

       Mr. Rothfus moves that the appeal be laid on the table.

  The SPEAKER pro tempore. The question is on the motion to table.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mr. PASCRELL. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, this 15-
minute vote on the motion to table will be followed by a 5-minute vote 
on the motion to suspend the rules and pass H.R. 1177.
  The vote was taken by electronic device, and there were--yeas 229, 
nays 188, answered ``present'' 1, not voting 12, as follows:

                             [Roll No. 261]

                               YEAS--229

     Abraham
     Aderholt
     Allen
     Amash
     Amodei
     Arrington
     Babin
     Bacon
     Banks (IN)
     Barletta
     Barr
     Barton
     Bergman
     Biggs
     Bilirakis
     Bishop (MI)
     Bishop (UT)
     Black
     Blackburn
     Blum
     Bost
     Brady (TX)
     Brat
     Bridenstine
     Brooks (AL)
     Brooks (IN)
     Buchanan
     Buck
     Bucshon
     Budd
     Burgess
     Byrne
     Calvert
     Carter (GA)
     Carter (TX)
     Chabot
     Cheney
     Coffman
     Collins (GA)
     Collins (NY)
     Comer
     Comstock
     Conaway
     Cook
     Costello (PA)
     Cramer
     Crawford
     Culberson
     Curbelo (FL)
     Davidson
     Davis, Rodney
     Denham
     Dent
     DesJarlais
     Diaz-Balart
     Donovan
     Duffy
     Duncan (SC)
     Duncan (TN)
     Dunn
     Emmer
     Estes (KS)
     Farenthold
     Faso
     Ferguson
     Fitzpatrick
     Fleischmann
     Flores
     Fortenberry
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gaetz
     Gallagher
     Garrett
     Gibbs
     Gohmert
     Goodlatte
     Gosar
     Gowdy
     Granger
     Graves (GA)
     Graves (LA)
     Graves (MO)
     Griffith
     Grothman
     Guthrie
     Harper
     Harris
     Hartzler
     Hensarling
     Herrera Beutler
     Hice, Jody B.
     Higgins (LA)
     Hill
     Holding
     Hollingsworth
     Hudson
     Huizenga
     Hultgren
     Hunter
     Hurd
     Issa
     Jenkins (KS)
     Jenkins (WV)
     Johnson (LA)
     Johnson (OH)
     Jordan
     Joyce (OH)
     Katko
     Kelly (MS)
     Kelly (PA)
     King (IA)
     King (NY)
     Kinzinger
     Knight
     Kustoff (TN)
     Labrador
     LaHood
     LaMalfa
     Lamborn
     Lance
     Latta
     Lewis (MN)
     LoBiondo
     Long
     Loudermilk
     Love
     Lucas
     Luetkemeyer
     MacArthur
     Marchant
     Marino
     Marshall
     Massie
     Mast
     McCarthy
     McCaul
     McClintock
     McHenry
     McKinley
     McMorris Rodgers
     McSally
     Meadows
     Meehan
     Messer
     Mitchell
     Moolenaar
     Mooney (WV)
     Mullin
     Murphy (PA)
     Noem
     Olson
     Palazzo
     Palmer
     Paulsen
     Pearce
     Perry
     Pittenger
     Poe (TX)
     Poliquin
     Posey
     Ratcliffe
     Reed
     Reichert
     Renacci
     Rice (SC)
     Roby
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rohrabacher
     Rokita
     Rooney, Francis
     Rooney, Thomas J.
     Ros-Lehtinen
     Roskam
     Ross
     Rothfus
     Rouzer
     Royce (CA)
     Russell
     Rutherford
     Scalise
     Schweikert
     Scott, Austin
     Sensenbrenner
     Sessions
     Shimkus
     Shuster
     Simpson
     Smith (MO)
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Smucker
     Stefanik
     Stewart
     Stivers
     Taylor
     Tenney
     Thompson (PA)
     Thornberry
     Tiberi
     Tipton
     Trott
     Turner
     Upton
     Valadao
     Wagner
     Walberg
     Walden
     Walker
     Walorski
     Walters, Mimi
     Weber (TX)
     Webster (FL)
     Wenstrup
     Westerman
     Williams
     Wilson (SC)
     Wittman
     Womack
     Woodall
     Yoder
     Yoho
     Young (AK)
     Young (IA)
     Zeldin

                               NAYS--188

     Adams
     Aguilar
     Barragan
     Bass
     Beatty
     Bera
     Beyer
     Bishop (GA)
     Blumenauer
     Blunt Rochester
     Bonamici
     Boyle, Brendan F.
     Brady (PA)
     Brown (MD)
     Brownley (CA)
     Bustos
     Butterfield
     Capuano
     Carbajal
     Cardenas
     Carson (IN)
     Cartwright
     Castor (FL)
     Castro (TX)
     Chu, Judy
     Cicilline
     Clark (MA)
     Clarke (NY)
     Clay
     Cleaver
     Clyburn
     Cohen
     Connolly
     Conyers
     Cooper
     Correa
     Costa
     Courtney
     Crist
     Crowley
     Cuellar
     Cummings
     Davis (CA)
     Davis, Danny
     DeFazio
     DeGette
     Delaney
     DeLauro
     DelBene
     Demings
     DeSaulnier
     Deutch
     Dingell
     Doggett
     Doyle, Michael F.
     Ellison
     Engel
     Eshoo
     Espaillat
     Esty (CT)
     Evans
     Foster
     Frankel (FL)
     Fudge
     Gabbard
     Gallego
     Garamendi
     Gonzalez (TX)
     Gottheimer
     Green, Al
     Green, Gene
     Grijalva
     Hanabusa
     Hastings
     Heck
     Himes
     Hoyer
     Huffman
     Jackson Lee
     Jayapal
     Jeffries
     Johnson (GA)
     Johnson, E. B.
     Jones
     Kaptur
     Keating
     Kelly (IL)
     Kennedy
     Khanna
     Kihuen
     Kildee
     Kilmer
     Kind
     Krishnamoorthi
     Kuster (NH)
     Langevin
     Larsen (WA)
     Larson (CT)
     Lawrence
     Lawson (FL)
     Lee
     Levin
     Lewis (GA)
     Lieu, Ted
     Lipinski
     Loebsack
     Lofgren
     Lowenthal
     Lowey
     Lujan Grisham, M.
     Lujan, Ben Ray
     Lynch
     Maloney, Carolyn B.
     Maloney, Sean
     Matsui
     McCollum
     McEachin
     McGovern
     McNerney
     Meeks
     Meng
     Moore
     Moulton
     Murphy (FL)
     Nadler
     Neal
     Nolan
     Norcross
     O'Halleran
     O'Rourke
     Pallone
     Panetta
     Pascrell
     Perlmutter
     Peters
     Peterson
     Pingree
     Pocan
     Polis
     Price (NC)
     Quigley
     Raskin
     Rice (NY)
     Richmond
     Rosen
     Roybal-Allard
     Ruiz
     Ruppersberger
     Rush
     Ryan (OH)
     Sanchez
     Sarbanes
     Schakowsky
     Schneider
     Schrader
     Scott (VA)
     Scott, David
     Serrano
     Sewell (AL)
     Shea-Porter
     Sherman
     Sinema
     Sires
     Slaughter
     Smith (WA)
     Soto
     Speier
     Suozzi
     Swalwell (CA)
     Takano
     Thompson (CA)
     Thompson (MS)
     Titus
     Tonko
     Torres
     Tsongas
     Vargas
     Veasey
     Vela
     Velazquez
     Visclosky
     Walz
     Wasserman Schultz
     Waters, Maxine
     Watson Coleman
     Welch
     Wilson (FL)
     Yarmuth

                        ANSWERED ``PRESENT''--1

       
     Sanford
       

                             NOT VOTING--12

     Chaffetz
     Cole
     DeSantis
     Gutierrez
     Higgins (NY)
     Johnson, Sam
     Napolitano
     Newhouse
     Nunes
     Payne
     Pelosi
     Schiff

                              {time}  1821

  Ms. SPEIER changed her vote from ``yea'' to ``nay.''
  Mr. POSEY changed his vote from ``nay'' to ``yea.''
  So the motion was agreed to.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.
  The material previously referred to by Mr. Pascrell is as follows:

                     [From the Wall Street Journal]

   Russian State-Run Bank Financed Deal Involving Trump Hotel Partner

        (By Rob Barry, Christopher S. Stewart and Brett Forrest)

       VEB, a Russian state-run bank under scrutiny by U.S. 
     investigators, financed a deal involving Donald Trump's 
     onetime partner in a Toronto hotel tower at a key moment for 
     the project, according to people familiar with the 
     transaction.
       Alexander Shnaider, a Russian-Canadian developer who built 
     the 65-story Trump International Hotel and Tower, put money

[[Page H4294]]

     into the project after receiving hundreds of millions of 
     dollars from a separate asset sale that involved the Russian 
     bank, whose full name is Vnesheconombank.
       Mr. Shnaider sold his company's share in a Ukrainian 
     steelmaker for about $850 million in 2010, according to S&P 
     Global Market Intelligence. According to two people with 
     knowledge of the deal, the buyer, which hasn't been 
     identified publicly, was an entity acting for the Russian 
     government. VEB initiated the purchase and provided the 
     money, these people say.
       U.S. investigators are looking into any ties between 
     Russian financial institutions, Mr. Trump and anyone in his 
     orbit, according to a person familiar with the probe. As part 
     of the investigation, they're examining interactions between 
     Mr. Trump, his associates and VEB, which is now subject to 
     U.S. sanctions, said another person familiar with the matter. 
     The Toronto deal adds a new element to the list of known 
     connections between Mr. Trump's associates and Russia.
       After Mr. Shnaider and his partner sold their stake in the 
     steelmaker, Mr. Shnaider injected more money into the Trump 
     Toronto project, which was financially troubled. Mr. 
     Shnaider's lawyer, Symon Zucker, said in an April interview 
     that about $15 million from the asset sale went into the 
     Trump Toronto project. A day later, he wrote in an email: ``I 
     am not able to confirm that any funds'' from the deal ``went 
     into the Toronto project.''
       A spokesman for the Trump Organization, the family's real-
     estate firm, said Mr. Trump had no involvement in any 
     financial dealings with VEB and that the Trump company 
     ``merely licensed its brand and manages the hotel and 
     residences.'' VEB didn't respond to requests for comment.
       Mr. Trump has said he has no dealings with Russia. ``To the 
     best of my knowledge, no person that I deal with does,'' he 
     said in February. On Friday, Mr. Trump's lawyers released a 
     two-month-old letter stating that 10 years of his tax returns 
     show little income, investments or debt from Russian sources 
     beyond items already known to the public.
       VEB has long been viewed by Russian analysts as a vehicle 
     for the Russian government to fund politically important 
     projects, including the 2014 Winter Olympics in Sochi. A VEB 
     executive in New York was sentenced to prison last year after 
     pleading guilty to conspiring to act in the U.S. as a Russian 
     agent without notifying U.S. authorities.
       In the wake of U.S. intelligence agency findings that 
     Russian government-directed hackers interfered in the 2016 
     election, several agencies, including the Federal Bureau of 
     Investigation, are conducting a counterintelligence probe 
     into whether Mr. Trump's campaign staff had any contact with 
     Russian officials. Committees in the House of Representatives 
     and the Senate also are investigating the matter. Russian 
     authorities have denied any interference.
       At the time of Mr. Shnaider's steelmaker deal, Russian 
     President Vladimir Putin was chairman of VEB's supervisory 
     board, and major deals would have been approved by him, 
     according to a former Russian government official and several 
     Russian government and economic experts. The bank later was 
     placed on the U.S. sanctions list after Russia's intrusion 
     into Ukraine and its annexation of Crimea in 2014. American 
     entities are barred from financial involvement with the bank.
       VEB made headlines when it emerged that its chairman met 
     with Mr. Trump's son-in-law, Jared Kushner in December. A 
     bank spokesperson has said VEB's leaders met Mr. Kushner and 
     numerous global financial executives as it developed a new 
     strategy for the bank. Mr. Spicer has said Mr. Kushner's 
     meeting was part of his role during the Trump transition as 
     the ``primary point of contact with foreign government 
     officials.''
       The Toronto project was billed in 2007 as a joint venture 
     between Mr. Trump and Mr. Shnaider and was projected to cost 
     about 500 million Canadian dollars. Mr. Trump said at the 
     time he would manage the hotel's operations and Mr. Shnaider 
     planned to develop the tower, which also would include 
     condominiums, through his company, Talon International 
     Development Inc.
       The project has been dogged by financial problems. In 
     November, it entered insolvency proceedings, and a judge in 
     March approved its sale.
       Alan Garten, the Trump Organization's general counsel, said 
     the company ``was not the owner, developer or seller'' of the 
     project. While The Wall Street Journal and others reported in 
     2011 and 2012 that Mr. Trump had a minor ownership stake in 
     it, Mr. Garten now says Mr. Trump ``did not hold'' equity and 
     had no involvement with the financing.
       The Trump Toronto Hotel Management Corp. has received at 
     least $611,000 in fees from the project since 2015, federal 
     financial-disclosure forms filed last May show. The forms 
     don't disclose the company's total income from the deal.
       Shortly after the project broke ground in 2007, about 85% 
     of the units were presold. During the financial crisis, some 
     buyers pulled out and others were unable to get financing, 
     receivership documents show. Midland Resources Holding Ltd., 
     then owned by Mr. Shnaider and a partner, was on the hook for 
     cost overruns, the documents show.
       Midland Resources had acquired its stake in the Ukrainian 
     steelmaker, called Zaporizhstal, for about $70 million after 
     the collapse of the Soviet Union. The 2010 transaction to 
     sell it was opaque. Midland transferred ownership of its 
     portion of the steelmaker to the unnamed buyer through five 
     offshore companies, according to Mr. Shnaider's lawyer and 
     court documents.
       The idea for the deal was brought to a top VEB executive by 
     a former Ukrainian government official, according to an 
     investment banker familiar with what happened. Although the 
     buyer wasn't named, a steel trader with knowledge of the deal 
     said VEB itself ended up with control of Midland's share of 
     the steelmaker. At the time, Russian entities saw gaining 
     control of large industrial assets in Ukraine as having 
     strategic value to Russian political interests in the future, 
     said another investment banker with knowledge of the deal.
       Mr. Zucker, Mr. Shnaider's lawyer, said Midland Resources 
     ``has never had any relationship with VEB'' and ``does not 
     dictate where their purchasers borrow funds.'' He declined to 
     identify the buyer, citing confidentiality provisions, other 
     than to say it was a ``Ukrainian industrial group.''
       Mr. Shnaider's companies continued to pump money into the 
     Toronto tower as it struggled to stay afloat, according to 
     his lawyer and later court documents. Later, Mr. Shnaider 
     became embroiled in a legal battle with Mr. Trump's companies 
     over management issues. The Trump Organization declined to 
     comment.
       In November, a Canadian judge placed the tower into 
     receivership. Mr. Trump's company was owed C$116,165.72, and 
     Mr. Shnaider's company as much as C$105 million, court 
     documents show.
       Recently, a judge approved the sale of the building to a 
     California-based investment firm for about $220 million.

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