Trump’s ties to the Russian mafia go back 3 decades

It’s well known that Trump likes doing business with gangsters, in part because they pay top dollar and loan money when traditional banks won’t, so it was a win-win for both sides.

The key point I want to get across in the book is that the Russian mafia is different than the American mafia, and I think a lot of Americans don’t understand this. In Russia, the mafia is essentially a state actor. When I interviewed Gen. Oleg Kalugin, who is a former head of counterintelligence in the KGB and had been Vladimir Putin’s boss at one point, I asked him about the mafia. He said, “Oh, it’s part of the KGB. It’s part of the Russian government.”

And that’s essential to the whole premise of the book. Trump was working with the Russian mafia for more than 30 years. He was profiting from them. They rescued him. They bailed him out. They took him from being $4 billion in debt to becoming a multibillionaire again, and they fueled his political ambitions, starting more than 30 years ago. This means Trump was in bed with the Kremlin as well, whether he knew it or not.

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The very first episode that’s been documented, to my knowledge, was in 1984 when David Bogatin — who is a Russian mobster, convicted gasoline bootlegger, and close ally of Semion Mogilevich, a major Russian mob boss — met with Trump in Trump Tower right after it opened. Bogatin came to that meeting prepared to spend $6 million, which is equivalent to about $15 million today.

Bogatin bought five condos from Trump at that meeting. Those condos were later seized by the government, which claimed they were used to launder money for the Russian mob.

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I document something like 1,300 transactions of this kind with Russian mobsters. By that, I mean real estate transactions that were all cash purchases made by anonymous shell companies that were quite obviously fronts for criminal money-laundering operations. And this represents a huge chunk of Trump’s real estate activity in the United States, so it’s quite hard to argue that he had no idea what was going on.

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Recall that Trump was $4 billion in debt after his Atlantic City casinos went bankrupt. He couldn’t get a bank loan from anywhere in the West, and Bayrock comes in and Trump partners with other people as well, but Bayrock essentially has a new model that says, “You don’t have to raise any money. You don’t have to do any of the real estate development. We just want to franchise your name, we’ll give you 18 to 25 percent royalties, and we’ll effectively do all the work. And if the Trump Organization gets involved in the management of these buildings, they’ll get extra fees for that.”

It was a fabulously lucrative deal for Trump, and the Bayrock associates — Sater in particular — were operating out of Trump Tower and constantly flying back and forth to Russia. And in the book, I detail several channels through which various people at Bayrock have close ties to the Kremlin, and I talk about Sater flying back and forth to Moscow even as late as 2016, hoping to build the Trump Tower there.

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Rep. Adam Schiff (D-Calif.) told The Hill on Wednesday that he specifically intends to look into allegations of Russians laundering money through the Trump Organization.


"There was one issue we were not allowed to look at and the Senate hasn’t been either that concerns me a great deal and that is the issue of whether Russians were laundering money through the Trump Organization and [if] that is the leverage they have over the president," Schiff said.

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