Trump Surrounded

I write thrillers based on my over 25 years experience on Wall Street about shady financiers, crooked lawyers and megalomaniacal CEOs who cheat on their taxes, use offshore shell corporations to hide their assets, and launder money.

Sound familiar based on current events?

  

Andrea Kudacki for the New York Times

Yesterday, Michael Cohen, President Trump’s longtime personal lawyer, did a plea bargain acknowledging guilt for campaign-finance violations, tax evasion and bank fraud, and Paul Manafort, Trump’s former campaign chairman, was convicted of tax and bank fraud and failure to report a foreign bank account.

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When someone is surrounded by slimeballs, it's not guilt by association, just the old adage restated Tuesday by Representative Tom Cole, a former House Republican campaign chairman: "Where there's smoke, and there's a lot of smoke, there may well be fire." And there's so much of it here that Trump is not only surrounded, but engulfed.

When the FBI stormed Cohen’s office and hotel room by surprise in April, Rudy Giuliani, former U.S. Attorney who honed his hardball tactics in bringing down many of the 1980s insider traders—decades before he became Trump's attorney—said something very telling: “Is this surprising? Yes. Is it extraordinary? No. This is the way prosecutors get information…”

Giuliani spoke from experience; he knows how prosecutors like Mueller work. They throw lines in the water where they smell something stinky, then reel them in and see who they catch. Then use those peripheral crooks to turn States’ evidence, or just get early convictions and then squeeze the convicted for cooperation in exchange for short sentences. All as part of going after their ultimate prey.

So for Robert Mueller & Co., here's the score so far. Guilty pleas from Michael Flynn,(Trump’s first national security advisor), Rick Gates (Manafort’s longtime associate), and George Papadopoulos (a Trump campaign foreign policy advisor), 32 indicted individuals, and 187 charges regarding evidence of Russian tampering with our 2016 election.

And yesterday, Cohen and Manafort. More significantly, Cohen, in the process of copping his plea, implicated the president on the record in open court in baldly specific terms. He said he made payments to Stormy Daniels and Karen McDougal to keep them from talking about affairs they had with Trump “in coordination with and at the direction of a candidate for federal office,” and, “I participated in this conduct, which on my part took place in Manhattan, for the principal purpose of influencing the election” for president in 2016.

Does anybody really think this is going away?

Representative Jerrold Nadler of New York, the top Democrat on the House Judiciary Committee, remarking upon the potential for an impeachment inquiry, allowed that, "this is getting deeper, and it's going to get more and more serious."

So where do we go from here? Or where does Mueller go?

All I can say is if I were writing this story as a novel it wouldn’t turn out well for the president. Stay tuned.

Nincompoopery Redefined

Rep. Chris Collins is in major hot water, according to a recently unsealed 10-count, 30-page indictment from the U.S. Attorney for the Southern District of New York. Allegedly, Collins, from an upstate New York district near Buffalo, tipped off his son to inside information before it was publicly disclosed about the failed drug trial of an Australian biotech company’s only drug with any prospects of success.

Ironically, or sadly, or pathetically or outrageously, or all of the aforementioned, Collins was at the time the largest shareholder and a board member of the company, Innate Immunotheraputics Limited. He was also on a subcommittee of the Energy and Commerce Committee that oversees the healthcare and drug industries and had been under investigation for months by the Congressional Ethics Office as a result of serving on the company's board and promoting its prospects. To make matters worse, he allegedly lied to the FBI about the whole thing.

Whew. If all this is true, Collins is about the biggest nincompoop in Washington. (Well, maybe the second biggest.) That’s a photo of Collins at left from his Facebook page, showing him at a recent constituent event holding a plate of fried dough. Fried dough is exactly what he’ll be if the U.S. Attorney has the goods on him. And it sounds like it does.

The indictment says that after Collins’ tip his son, Cameron, sold almost 1.4 million shares of Innate in 54 trades starting the next morning, avoiding some $570,000 of losses he otherwise would have incurred when the stock tanked over 92% the day the failed drug trial was announced. Cameron is also under indictment for passing on the insider info to his fiancé’s father, Stephen Zarsky, his fiancé and other of their relatives and friends, who also sold their stock and avoided close to $200,000 in losses.

All that is documented in the indictment by emails, texts, phone records and stock trading data. That includes the email Collins got from Innate’s CEO saying the drug failed the trial while Collins was on the South Lawn of the White House attending the annual Congressional Picnic. It includes Collins’ email back saying, “Wow. How are these results even possible???” It also includes records of Collins’ frantic seven phone calls to Cameron, in the last of which he finally got through to him. Also the substance of a phone call from Zarsky to one of his tippees, a longstanding friend in which he said Cameron intended to buy a house so he would have an ostensible excuse for the timing of his trades if he were ever asked about them (Cameron is also indicted for lying to the FBI). Ditto a press release Collins had his staff release, stating that Cameron sold his stock only after a halt on its trading had been lifted, and at “substantial financial loss.”

Collins & Son and Zarsky are all named in the indictment that alludes to six other unindicted co-conspirators (Zarsky’s wife, daughter, two brothers and that longstanding friend, and a friend of Cameron and his fiancé). I stress unindicted, because if the U.S. Attorney’s previous modus operandi—and that of any other methodical prosecutor—is any guide, it started at the bottom and got the six minnows to flip by squeezing them into ratting out the bigger fish.

One of my first novels, Bull Street, is about an insider trading ring, and I never would have put a character in it who behaved as idiotically as Collins is alleged to because nobody would believe it.

A few years ago I wrote a blog entitled You Can't Make This Stuff Up on the psychology of insider traders based on my experience on Wall Street. They seem to have no shame or no memory of previous convictions for the crime. The practice will go on forever.

And they’ll keep getting caught. The U.S. Attorney for the Southern district of New York has a winning record in getting convictions for insider trading. They’re the guys who sent Ivan Boesky, Marty Siegel, Dennis Levine and Mike Milken to jail in the 1980s. Preet Bharara, the previous U.S. Attorney for the Southern District of New York, won over 85 insider trading cases in a row at one point. They don’t go to a grand jury unless they’ve got the goods. Collins’ tip to his son occurred over a year ago, the FBI took until April of this year to interview Collins & Son and Zarsky, and the U.S. Attorney until now to indict them. They’re efficient, systematic and relentless. Usually when they surface, where there’s smoke there’s fire.

In the few days since his indictment, Collins has been kicked off the Energy and Commerce Committee and suspended his re-election campaign for his House seat in November. “Meritless,” is what Collins has called the charges. We’ll see. Unless Collins has redefined the word.

He may also have redefined the word “nincompoopery.”

Rudiger Stories

About two years ago I wrote a short story, Rudiger, and a blog about it, Mark Knopfler, Rüdiger and Me (read it here), that introduced the character of John Rudiger, fugitive financier. I titled the story and created John Rudiger based on emotions evoked by a song called "Rüdiger" by Mark Knopfler (See Knopfler perform it here.) In Rudiger, John Rudiger is living under an alias in Antigua.  He ran off with close to $100 million from his hedge fund and is now down to his last $2 million. Katie Dolan, a lawyer with the U.S. Attorney's Office in New York, is sent to Antigua to try to get enough evidence to extradite Rudiger back to the U.S. to stand trial. Rudiger recruits her to help him retrieve $50 million of bearer bonds from a safe deposit box in New York.

Since then I’ve gotten to know Rudiger better, including writing a novel about Rudiger’s exploits after the Rudiger short story, Spin Move (see below).

I’ve also released two short stories and two novellas that are prequels to the Rudiger short story. The short stories are Rudiger Comes Alive and Rudiger in the Islands.  The novellas are Rudiger in Peril and Rudiger on the Streets.

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All five Rudiger stories are available in the collection, Rudiger Stories, or individually.  The collection is priced at $3.99 and the individual stories are $0.99 each. I hope you'll give them a try. I had great fun writing them, including enjoying some oddball secondary characters in Rudiger's new home in Antigua.

The five Rudiger stories are a total of 95,000 words, comparable to a full-length novel.

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In Rudiger Comes Alive, hotshot Wall Streeter Walter Conklin is a wunderkind hedge fund manager who runs a $1 billion technology fund. He’s on a roll until his CFO cooks the books to overstate their results to raise more money. The only way out for Conklin is to insist his CFO keep cooking them until he can equal those returns. But the Feds are on to him, so Conklin needs to act fast before they can throw him in jail—just as the NASDAQ crashes from its historic highs. In the end, Conklin needs to come to terms with the markets, his smart-mouthed wife, and Charlie Holden, Assistant U.S. Attorney in New York.

Rudiger Comes Alive is a 13,000 word short story, chronologically the first of the Rudiger stories.

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In Rudiger in the Islands, Rudiger adopts Antigua as his new home: he’s building a house and settling in to the islands way of life.  Then Charlie Holden, Assistant U.S. Attorney in New York, gets a tip and sends one of his staff lawyers down to get the goods on Rudiger and extradite him to stand trial.  In order to outwit Holden and his man, Rudiger needs to establish his credentials as an Antiguan national, so he enlists the help of the double-dealing local police—who will sell their allegiance to the highest bidder.  Rudiger is forced to think on the fly to adapt to the machinations of both parties as he improvises to try to stay out of jail.

Rudiger in the Islands is a 20,000 word short story, chronologically the second of the Rudiger stories.

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In Rudiger in Peril, Rudiger has settled into Antigua as his new home. He gets a surprising phone call from Charlie Holden, Assistant U.S. Attorney in New York, who’s been trying to extradite Rudiger back to the U.S. to stand trial.  Holden tells Rudiger his former partner and CFO has been murdered in the U.S. by one of Rudiger’s hedge fund investors who lost millions and is out for revenge.  And the investor’s hired killer is now in Antigua stalking Rudiger.  Rudiger is forced to align himself with Holden as an unlikely ally as he tries to figure out which of his investors could be after him and help Holden stop him—before the hitman catches up with Rudiger.

Rudiger in Peril is a 28,000 word novella, chronologically the third of the Rudiger stories.

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In Rudiger on the Streets, Rudiger has finally settled into a peaceful existence in Antigua. No more Wall Street Journal articles revisiting his financial scandal. No more attempts by the U.S. Attorney to extradite him. No more local police hassles about his alias. But his repose is shattered when his housekeeper gets scammed out of her life savings by two cons. Rudiger’s plan to get even take him into the belly of Antigua’s underworld, where he enlists the help of a ghetto crime boss. There, he’s forced to rely on the dirty tricks he learned in his youth on the mean streets of New York’s Hell’s Kitchen. And once he plunges into this world of double-dealers, swindlers and murderers, he realizes there’s no turning back.

Rudiger on the Streets is a 24,000 word novella, chronologically the fourth of the Rudiger stories.

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In Rudiger, John Rudiger is now a long-term fugitive financier who's been living under his alias in Antigua for 10 years.  He's down to his last $2 million. Katie Dolan, a lawyer with the U.S. Attorney's Office in New York, is sent to Antigua to try to get enough evidence to extradite Rudiger back to the U.S. to stand trial. Rudiger recruits her to help him retrieve $50 million of bearer bonds from a safe deposit box in New York.  Katie is no dope, and neither is Rudiger, and each one has to figure out who's scamming who as they work their plan to sneak the bonds out from under the nose of Charlie Holden, Katie's boss, the Assistant U.S. Attorney in New York, who's wise to both of them.

Rudiger is a 10,000 word short story, chronologically the fifth of the Rudiger stories.

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It’s a year after Rudiger and Katie’s tryst in New York, and now the Antiguan officials are demanding ever more exorbitant payouts to maintain his cover. He’s running out of money, in part because Katie conned him out of millions. Katie is holed up with her ailing father in Cape Verde, an Island paradise off the coast of Africa that conveniently lacks an extradition treaty with the U.S., an idea she took right out of Rudiger’s playbook. Despite her double cross, Rudiger is still hot for Katie, and he knows just where to find her when he leaves Antigua. But U.S. Attorney Charlie Holden is still hovering in the background, dead set on catching them both.  Even worse, Katie’s been sucked in by a crooked Swiss banker and he’s conned her out of Rudiger’s money. Can they get it back and escape before it’s too late?

Read a sample of Spin Move

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