Grand jury issues subpoenas in connection with Trump Jr., Russian lawyer meeting: sources

Russian lawyer Natalia Veselnitskaya speaks during an interview in Moscow, Russia November 8, 2016. REUTERS/Kommersant Photo/Yury Martyanov

August 4, 2017
By Karen Freifeld and John Walcott
WASHINGTON (Reuters) – A grand jury has issued subpoenas in connection with a June 2016 meeting that included President Donald Trump’s son, his son-in-law and a Russian lawyer, two sources told Reuters on Thursday, signaling an investigation is gathering pace into suspected Russian meddling in the 2016 U.S. election.
The sources added that U.S. Special Counsel Robert Mueller had convened the grand jury investigation in Washington to help examine allegations of Russian interference in the vote. One of the sources said it was assembled in recent weeks.
Russia has loomed large over the first six months of the Trump presidency. U.S. intelligence agencies have concluded that Russia worked to tilt the presidential election in Trump’s favor. Mueller, who was appointed special counsel in May, is leading the probe, which also examines potential collusion by the Trump campaign with Russia.
Moscow denies any meddling and Trump denies any collusion by his campaign, while regularly denouncing the investigations as political witch hunts.
At a rally in Huntington, West Virginia, on Thursday night, Trump said: “Most people know there were no Russians in our campaign. … We didn’t win because of Russia. We won because of you.”
Mueller’s use of a grand jury could give him expansive tools to pursue evidence, including issuing subpoenas and compelling witnesses to testify. The Wall Street Journal earlier reported a grand jury was impaneled.
A spokesman for Mueller declined comment.
A grand jury is a group of ordinary citizens who, working behind closed doors, considers evidence of potential criminal wrongdoing that a prosecutor is investigating and decides whether charges should be brought.
“This is a serious development in the Mueller investigation,” said Paul Callan, a former prosecutor.
“Given that Mueller inherited an investigation that began months ago, it would suggest that he has uncovered information pointing in the direction of criminal charges. But against whom is the real question.”
A lawyer for Trump, Jay Sekulow, appeared to downplay the significance of a grand jury, telling Fox News: “This is not an unusual move.”
U.S. stocks and the dollar weakened following the news, while U.S. Treasury securities gained.
It was not immediately clear to whom subpoenas were issued and the sources did not elaborate.
Some lawyers said it would put pressure on potential witnesses to cooperate with Mueller’s investigation.
“When someone gets a subpoena to testify, that can drive home the seriousness of the investigation,” said David Sklansky, a professor at Stanford Law School and a former federal prosecutor.
In 2005, a grand jury convened by Special Counsel Patrick Fitzgerald returned an indictment of Lewis “Scooter” Libby, a top aide to then-Vice President Dick Cheney.
“A special counsel can bring an indictment and it has happened before,” said Renato Mariotti, a partner at the law firm Thompson Coburn and a former federal prosecutor.
DAMAGING INFORMATION
News last month of the meeting between Donald Trump Jr. and a Russian lawyer who he was told had damaging information about his father’s presidential rival, Democrat Hillary Clinton, fueled questions about the campaign’s dealings with Moscow.
The Republican president has defended his son’s behavior, saying many people would have taken that meeting.
Trump’s son-in-law and White House senior adviser Jared Kushner and former Trump campaign manager Paul Manafort also attended the meeting.
One of the sources said major Russian efforts to interfere in the election on Trump’s behalf began shortly after the June meeting, making it a focus of Mueller’s investigation.
Ty Cobb, special counsel to the president, said he was not aware that Mueller had started using a new grand jury.
“Grand jury matters are typically secret,” Cobb said. “The White House favors anything that accelerates the conclusion of his work fairly. … The White House is committed to fully cooperating with Mr. Mueller.”
John Dowd, one of Trump’s personal lawyers, said: “With respect to the news of the grand jury, I can tell you President Trump is not under investigation.”
A spokesman for Manafort declined to comment.
Lawyers for Trump Jr. and Kushner did not immediately respond to requests for comment.
‘NOT THINKING OF FIRING MUELLER’
Trump has questioned Mueller’s impartiality and members of Congress from both parties have expressed concern that Trump might dismiss him. Republican and Democratic senators introduced two pieces of legislation on Thursday seeking to block Trump from firing Mueller.
Sekulow denied that was Trump’s plan.
“The president is not thinking of firing Bob Mueller,” Sekulow said.
One source briefed on the matter said Mueller was investigating whether, either at the meeting or afterward, anyone affiliated with the Trump campaign encouraged the Russians to start releasing material they had been collecting on the Clinton campaign since March 2016.
Another source familiar with the inquiry said that while the president himself was not now under investigation, Mueller’s investigation was seeking to determine whether he knew of the June 9 meeting in advance or was briefed on it afterward.
Reuters earlier reported that Mueller’s team was examining money-laundering accusations against Manafort and hoped to push him to cooperate with their probe into possible collusion between Trump’s campaign and Russia. It is not known if the grand jury is investigating those potential charges.

Made in China Cartoons

Cotton, Perdue on bill cutting immigration: 'It's pro-worker, it's pro-growth and it's been proven to work'

Tucker Carlson

Republican senators Tom Cotton of Arkansas and David Perdue of Georgia joined Fox News' "Tucker Carlson Tonight" Wednesday to explain their bill calling for a merit-based immigration system that would cut legal immigration as much as 50 percent over the next decade.

"People out there in the real world get this," said Perdue. "It’s pro-worker, it’s pro-growth, and it’s been proven to work, in Canada and Australia."

TRUMP, GOP SENATORS CHAMPION BILL TO CUT LEGAL IMMIGRATION LEVELS
"The law of supply and demand applies to the labor market, just like it does every other market," Cotton said. "There’s just simply no doubt that people who come here who are unskilled and low-skilled, have a direct impact on the wages of Americans."
Cotton and Perdue spoke to Tucker Carlson after they joined President Trump at the White House to boost the Reforming American Immigration for a Strong Economy, or the RAISE Act, which both men first proposed in February and which Trump hailed as "the most significant reform to our immigration system in a half century."
"The president campaigned on immigration as the single distinctive issue that separated him not just from Hillary Clinton, but from 16 other Republicans," Cotton said, "and the American people expect him to deliver on that."
"I can’t understand why anybody who wants a pro-growth effort in America [would] oppose this," Perdue added. "today, the system is so broken that only one out of every 15 who come into America come in with a skill. This is a broken system and it penalizes people who’ve been here and who just got here."

Sessions' job safe, White House officials say, as lawmakers look to shield Mueller

New White House chief of staff John Kelly recently called Attorney General Jeff Sessions to assure him his job was safe, Fox News has learned from a senior White House official and another source within the Trump administration.

Kelly called Sessions on Saturday to emphasize that the White House supported him and wanted him to continue leading the U.S. Department of Justice, the sources said.

The assurance comes despite tweets and comments about Sessions from President Donald Trump that came after the attorney general recused himself from the Russia collusion investigation.
Meanwhile, two members of the U.S. Senate Judiciary Committee are readying legislation intended to help special counsel Robert Mueller – who is leading the Russia collusion probe – keep his job as well.
Sen. Thom Tillis, R-N.C., and Sen. Chris Coons, D-Del., plan to introduce the legislation Thursday. It would allow any special counsel for the Justice Department challenge his or her removal in court, with a review by a three-judge panel within 14 days of the challenge.
The bill would be retroactive to May 17 -- the day Mueller was appointed by deputy Attorney General Rod Rosenstein to investigate Russian meddling in the 2016 election and possible ties to Donald Trump’s campaign.
“It is critical that special counsels have the independence and resources they need to lead investigations,” Tillis said in a statement. “A back-end judicial review process to prevent unmerited removals of special counsels not only helps to ensure their investigatory independence, but also reaffirms our nation’s system of check and balances.”
Mueller was appointed as special counsel in May following Trump’s firing of FBI Director James Comey.
Mueller, who was Comey’s predecessor as FBI director, has assembled a team of prosecutors and lawyers with experience in financial fraud, national security and organized crimes to investigate contacts between Moscow and the Trump campaign.
Trump has been critical of Mueller since his appointment, and his legal team is looking into potential conflicts surrounding the team Mueller has hired, including the backgrounds of members and political contributions by some members to Hillary Clinton. He has also publicly warned Mueller that he would be out of bounds if he dug into the Trump family’s finances.
Mueller has strong support on Capitol Hill. Senators in both parties have expressed concern that Trump may try to fire Mueller and have warned him not to do so.
“Ensuring that the special counsel cannot be removed improperly is critical to the integrity of his investigation,” Coons said.
Sen. Lindsey Graham, R-S.C., another member of the Judiciary panel, said last week that he was working on a similar bill that would prevent the firing of a special counsel without judicial review. Graham said then that firing Mueller “would precipitate a firestorm that would be unprecedented in proportions.”
The Tillis and Coons bill would allow review after the special counsel had been dismissed. If the panel found there was no good cause for the counsel’s removal, the person would be immediately reinstated. The legislation would also codify existing Justice Department regulations that a special counsel can only be removed for misconduct, dereliction of duty, incapacity, conflict of interest or other good cause, such as a violation of departmental policies.
In addition, only the attorney general or the most senior Justice Department official in charge of the matter could fire the special counsel.
In the case of the current investigation, Rosenstein is charged with Mueller's fate because Sessions recused himself from all matters having to do with the Trump-Russia investigation.
Fox News’ Serafin Gomez and the Associated Press contributed reporting to this story.

Senate Confirms Multiple Pentagon Positions, Rick Perry Considered to Lead DHS

The Senate unanimously voted on the confirmation of eight nominees on Tuesday, including Wall Street executive Richard Spencer to Navy Secretary.
Spencer is a former Marine Corps aviator and investment banker.
Ellen Lord, the CEO of Textron Systems, will serve as the Pentagon’s Acquisition Chief.
The approval of these nominees brings the total number of Pentagon confirmations in the Trump administration to 15.
Meanwhile, Energy Secretary Rick Perry is reportedly being considered to replace General John Kelly in the Department of Homeland Security.
Sources familiar with the administration’s deliberations say Perry is among the people being looked at for the role.
However, an official in the Energy Department says Perry is focused on his current mission, but is honored to be mentioned.
Earlier this week, the White House downplayed rumors President Trump could move Attorney General Jeff Sessions from his position to the Department of Homeland Security.

DHS Spokesman Being Considered for WH Communications Director Role

New Chief of Staff John Kelly is reportedly considering an official from his former department for the role of White House communications director.
Administration sources say Homeland Security spokesman David Lapan is at the top of the short list for the spot.
Prior to serving at Homeland Security, Lapan led press operations at the Defense Department and the Marine Corps.
Lapan says he hasn’t spoken with anyone in the administration about the job, and noted he would need time to consider the proposal if he was offered the role.
This comes after former Communications Director Anthony Scaramucci was removed from his position earlier this week.

Conservative Cartoons

Ingraham on Republicans: 'A lot of them don't want Donald Trump to succeed'

Fox News contributor Laura Ingraham lashed out at establishment Republicans Tuesday night, telling Fox News' "Hannity" that "a lot of them don't want Donald Trump to succeed."

"A lot of them don't like his policies," said Ingraham, who singled out Arizona Sen. Jeff Flake as being part of "a significant Chamber of Commerce wing of the Republican Party."

Flake made headlines Tuesday with the release of his book, titled "Conscience of a Conservative," in which he described the GOP as being in "denial" about the consequences of electing Trump president.
'CHAOS IS NOT A GOOD PRINCIPLE': FLAKE SAYS GOP 'IN DENIAL ABOUT TRUMP
"Republicans play the safe gentlemanly game of politics," Ingraham told host Sean Hannity. "They agree with the Democrats on a lot of these key issues, and they don’t agree with Donald Trump on a lot of key issues, so they’re not willing to fight for him."
The Lifezette editor-in-chief theorized that Trump's critics have yet to get over his surprise victory in last year's election.
"He crushed them and they never got over it," Ingraham said. "The day after the election, they began plotting what they hoped would be his demise."

US may get tougher against China trade policies

The Trump administration is signaling it intends to take a harsher stance on trade issues than it has during its first six months.

The U.S. is considering using rarely invoked U.S. trade laws to fend off China’s demands that foreign companies share their technology in return for access to the country’s vast market.

The move is prompted by discontent among U.S. businesses, which have grown frustrated with China’s trade and market access practices, the Wall Street Journal reported.
Those practices have helped position China to become a global leader in emerging technologies, such as microchips and electric cars, the New York Times reported.
The U.S. policy shift also may reflect White House frustration that it hasn’t received the help it hoped for from China in addressing North Korea’s nuclear ambitions.
But a senior Chinese official said Monday there was no link between North Korea’s nuclear program and China-U.S. trade, Reuters reported.
Meanwhile, trade ministers from China and other nations -- including Brazil, Russia and India -- concluded a conference in Shanghai on Wednesday, agreeing to promote international cooperation and oppose "trade and investment protectionism," Reuters reported.
A source familiar with the U.S. discussions said the Trump administration planned to employ Section 301 of the Trade Act of 1974, which allows Washington to investigate China’s trade practices and, within months, raise tariffs on imports from China, or impose other sanctions.
Section 301 was used frequently in the 1980s to combat Japanese imports of steel, motorcycles and other items, but less frequently after the World Trade Organization was founded in 1995, Reuters reported.
The new investigation would focus on China’s alleged “forced technology transfer policies and practices,” the source said, adding that the Trump administration could launch the probe as soon as this week.
One question not yet answered is whether the Trump administration would work with the WTO or seek to impose penalties on China without relying on the international body, the Wall Street Journal reported.
On Monday, U.S. Commerce Secretary Wilbur Ross wrote an op-ed in the Wall Street Journal, assailing China and the European Union for “formidable nontariff trade barriers” and asserting the U.S. would use “every available tool” to combat those barriers.

GOP Senators: Stay on Health Care or ‘Move On’ to Tax Reform

Losers?

Some GOP Senators are saying it’s time to move on from health care, and onto tax reform, despite pressure to stay the course from the president and White House officials.

Senate Finance Committee Chairman, Orrin Hatch said it’s time to move onto other legislative priorities. He’d “like to get off health reform for a while,” and let it calm down to come back to it later and then we’ll get that solved.”  Hatch says, “We do need to do tax reform. This country hasn’t had tax reform since 1986.”

Monday, Treasury Secretary Steve Mnuchin reiterated he was 100% confident tax reform could be done this year, saying, “we will pass tax reform. This  is about creating jobs about creating wage growth about a simpler and fairer tax system. We’re going to simplify personal taxes, 95% of Americans will be  able to fill out their tax return on a large post card.”

However, many Republicans think the party should continue to give healthcare another shot.  I think they need to go home and tell their constituents it’s time to move on,” said Lindsey Graham, in response to his colleagues.  “Our best ideas haven’t even been presented yet. “

President Trump continues to urge Senators to push forward with Healthcare. Sunday he tweeted “Don’t give up Republican Senators, the World is watching: Repeal & Replace.. and go to 51 9nuke option), get Cross State Lines & more.”

While Graham said he would not vote on any changes to the Senate, including Trump’s suggested ‘nuke option’ he said “at the end of the day I want to help [President Trump] with an agenda I believe in.  His insistence we continue to focus on health care may save us from ourselves.”