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Novartis official: Michael Cohen was ‘promising access’ after Trump election

May 10, 2018 by  
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That lawyer, Michael Avenatti, said the transactions suggest that Cohen was “selling access to the president of the United States.” Cohen, his attorney and the White House did not respond to a request for comment.

According to Avenatti, at least $4.4 million flowed through Essential Consultants, the company Cohen created in October 2016 and then used to pay porn star Stormy Daniels $130,000 in hush money.

Among the transactions that Avenatti said he uncovered:

  • Columbus Nova, a U.S.-based firm with ties to Russian oligarch Viktor Vekselberg made about $500,000 in payments between January and August 2017. In a statement, Columbus said it hired Cohen as a consultant “regarding potential sources of capital and potential investments in real estate and other ventures.”
  • Novartis made four payments of just under $100,000 each in late 2017 and early 2018. In a statement, Novartis said it had an agreement with Essential Consultants, “focused on U.S. healthcare policy matters.”
  • ATT made four payments of $50,000 each to Essential in late 2017 and early 2018. In a statement, ATT said it engaged the firm in early 2017 to “provide insights into understanding the new administration.”
  • Korea Aerospace Industries made a $150,000 payment to Essential in November 2017. KAI said in a statement to Reuters that it had a contract with Essential for “legal consulting concerning accounting standards on production costs.”

Avenatti did not disclose how he got the information or any other evidence that Cohen might be selling access to Trump.

Getting into a cab in Manhattan on Wednesday morning, Cohen told reporters that Avenatti’s dossier “is inaccurate,” but provided no specifics. NBC News reviewed financial documents that appear to support Avenatti’s accounting of the transactions involving the four companies.

In a statement, Novartis said it received an inquiry from investigators working for special counsel Robert Mueller, who is investigating Russian meddling in the 2016 election, about its dealings with Essential Consultants in November 2017.

“In February 2017, shortly after the election of President Trump, Novartis entered into a one-year agreement with Essential Consultants. With the recent change in administration, Novartis believed that Michael Cohen could advise the company as to how the Trump administration might approach certain U.S. healthcare policy matters, including the Affordable Care Act,” the company said in a statement.

“The agreement was for a term of one year, and paid Essential Consultants 100,000 USD per month. In March 2017, Novartis had its first meeting with Michael Cohen under this agreement. Following this initial meeting, Novartis determined that Michael Cohen and Essential Consultants would be unable to provide the services that Novartis had anticipated related to U.S. healthcare policy matters and the decision was taken not to engage further.

“As the contract unfortunately could only be terminated for cause, payments continued to be made until the contract expired by its own terms in February 2018.”

He contacted us after the new administration was in place. He was promising access to the new administration.

He contacted us after the new administration was in place. He was promising access to the new administration.

The senior Novartis official told NBC News that Cohen made the first move.

“He contacted us after the new administration was in place,” the official said. “He was promising access to the new administration.”

ATT sent an email to its employees on Wednesday with details about its dealings with Cohen.

“In early 2017, as President Trump was taking office, we hired several consultants to help us understand how the President and his administration might approach a wide range of policy issues important to the company, including regulatory reform at the FCC, corporate tax reform and antitrust enforcement,” said the email, which was obtained by NBC News.

“Companies often hire consultants for these purposes, especially at the beginning of a new Presidential Administration, and we have done so in previous Administrations, as well.

“Cohen was one of those consultants,” the email continued. ” Cohen did no legal or lobbying work for us, and our contract with Cohen expired at the end of its term in December 2017. It was not until the following month in January 2018 that the media first reported, and ATT first became aware of, the current controversy surrounding Cohen.”

Columbus Nova, in its Tuesday night statement, took issue with Avenatti’s claim that it was controlled by Vekselberg, one of the richest men in Russia, with a multibillion-dollar oil and aluminum fortune.

Vekselberg is one of the oligarchs recently sanctioned by the U.S. Treasury Department. Separately, according to the New York Times, citing people familiar with the matter, he was searched and questioned by agents working for Mueller when he got off a plane in the U.S. earlier this year.

Russian President Vladimir Putin with Renova CEO Viktor Vekselberg during an award ceremony at the Kremlin in Moscow on Jan. 26, 2017.Alexei Druzhinin / Sputnik, Kremlin Pool Photo via AP file

An attorney for Columbus Nova, where Vekselberg’s cousin Andrew Intrater is the CEO, said claims Vekselberg “used Columbus Nova as a conduit for payments to Michael Cohen are false. The claim that Viktor Vekselberg was involved or provided any funding for Columbus Nova’s engagement of Michael Cohen is patently untrue.”

No one has been charged with a crime in connection with the Essential Consultants transactions, but Avenatti said the large payments, their timing and the disparity of the companies’ interests are red flags of a pay-to-play scheme by a man often described as Trump’s “fixer.”

“We now have multiple different things supposedly that Michael Cohen was doing for all these companies. Now we hear from Novartis that he was hired on health care matters — evidently he’s a doctor,” Avenatti said facetiously on MSNBC’s “Morning Joe.”

“One of the companies mentioned they hired him for real estate matters — he’s a real estate agent? Another company stated that they hired him for accounting advice, evidently he’s an accountant. So he’s a lawyer, a doctor, an accountant, and a real estate agent.

“I’m just a lawyer. I’m not that bright I guess,” Avenatti added.

“Where did the money go?” he asked. “Did all of it go to Michael Cohen? Did some of it go back to the Trump organization? Did some of it ultimately find its way back to the president?”

NBC News asked Cohen, the White House and the various companies for comment on Avenatti’s accusation about the purpose of the payments but none had an immediate response.

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North Korea frees 3 American prisoners ahead of a planned Trump-Kim summit

May 10, 2018 by  
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Three American men who had been imprisoned by North Korea are on their way to the United States, President Trump announced Wednesday after they were released to Secretary of State Mike Pompeo during his visit to Pyongyang.

They were freed after Pompeo met for 90 minutes with North Korean leader Kim Jong Un on his second trip to Pyongyang ahead of a planned summit between Trump and Kim that could happen by next month.

Trump hailed their release in a tweet after Pompeo had left the country with the three Americans aboard his U.S. government plane. The secretary is “in the air and on his way back from North Korea with the 3 wonderful gentlemen that everyone is looking so forward to meeting,” Trump wrote. “They seem to be in good health.”

White House press secretary Sarah Huckabee Sanders said in a statement that Trump “appreciates leaders Kim Jong Un’s action” and views it as “a positive gesture of goodwill.” She said all three Americans, Kim Dong-chul, Tony Kim and Kim Hak-song, boarded the plane without assistance.

Pompeo told reporters traveling with him that the three were given a quick medical exam by a physician who was accompanying the secretary and that their health “is as good as could be, given what they’ve been through.” He said they would be transferred to another plane, apparently at Yokota Air Base in Japan, that is better equipped to handle medical needs.

Trump indicated in another tweet that Pompeo and the three Americans are expected to land at Joint Base Andrews outside Washington at 2 a.m. Thursday Eastern time, although it was not clear if they would be coming in separate planes. Trump said he would be on hand to greet them, calling it: “Very exciting!”

The three men were turned over to U.S. custody after Pompeo’s meeting with Kim. According to a U.S. official who briefed reporters in Pyongyang, a North Korean official came to the Koryo Hotel to inform Pompeo that Kim had granted the three men “amnesty” on charges of espionage and hostile acts against the government — charges that U.S. officials have said were bogus.

Carl Risch, assistant secretary of state for consular affairs, and a U.S. doctor then went to another hotel to pick them up and brought them to the airport, according to a senior U.S. official present for the exchange.

“We’re granting amnesty to the three detained Americans,” the official quoted the North Korean emissary as telling Pompeo. “We issued the order to grant immediate amnesty to the detainees.”

“You should make care that they do not make the same mistakes again,” the North Korean added, according to the U.S. official. “This was a hard decision.”


The two American reporters traveling with Pompeo, including one from The Washington Post, spotted the three released Americans walking from a van onto Pompeo’s plane, where they were seated near medical personnel.

The release of the men coincided with additional discussions between the Trump administration and the Kim regime in preparation for the historic summit, which would be the first between a sitting U.S. president and a North Korean leader. Trump had been criticized by some foreign policy analysts for agreeing to the meeting without publicly demanding the release of the Americans as a prerequisite.

But their freedom has offered Trump new momentum in his high-stakes diplomatic gambit aimed at curtailing North Korea’s nuclear weapons and ballistic missile programs. An administration official said the two sides made “substantial progress” on summit planning and agreed to meet again before the leaders’ meeting.

Trump has said officials have worked out a time and location for the meeting, but he has not disclosed details. In impromptu remarks Wednesday at the White House, Trump ruled out the demilitarized zone between North and South Korea, where Kim met two weeks ago with South Korean President Moon Jae-in. He has previously said Singapore is another possible site.

“I think we have a really good shot at making it successful,” Trump said of the summit, “but lots of things can happen.”

Yet even as Trump projected optimism, other administration officials sounded notes of caution. Vice President Pence vowed that the United States “will not let off the pressure until we achieve full denuclearization.”

The news of the Americans’ release came as a huge relief to the families of the men.

“We want to thank all of those who have worked toward and contributed to his return home,” said the family of Tony Kim, one of the detainees.

“We also want to thank the President for engaging directly with North Korea. Mostly, we thank God for Tony’s safe return,” the family said in a statement.

 The three detainees were treated as “prisoners of war” and had not been seen since June, when a State Department official was allowed a brief visit with them while collecting Otto Warmbier, the detained college student who fell into a coma in North Korea and died shortly after his return to the United States.

On Friday, Trump spoke to Warmbier’s family to offer emotional support. The family has sued North Korea in federal court over their son’s treatment and death.

“We are happy for the hostages and their families. We miss Otto,” Fred and Cindy Warmbier, Otto Warmbier’s parents, said in a statement.

The longest-held prisoner was Kim Dong-chul, a 64-year-old who once lived in Fairfax, Va., and was arrested in October 2015. He had been based in the Chinese city of Yanji, near the border with North Korea, and traveled back and forth to the special economic zone of Rajin-Sonbong, where he managed a hotel business.

But on his last visit, he was accused of spying for South Korea’s intelligence agencies, seeking to obtain details of the North’s military programs and trying to spread “religious” ideas — a serious crime in the North. He was sentenced in April 2016 to 10 years in prison after a sham trial.

Then, a year ago, two men associated with the Pyongyang University of Science and Technology, or PUST, a private institution run by Korean American Christians, were detained. 

Tony Kim, a 59-year-old accountant, had made at least seven trips to Pyongyang, usually for a month at a time, to teach international finance and management to students at PUST, his son  Sol Kim said in an interview. 

He was stopped at Pyongyang’s airport in April 2017 and arrested for “committing criminal acts of hostility aimed to overturn” North Korea. 

Two weeks later, Kim Hak-song, an agricultural consultant who was also living in Yanji and working at PUST, was detained. He was also arrested on suspicion of “hostile acts” against North Korea, the official Korean Central News Agency said.

Kim Dong-chul and Tony Kim were both born in South Korea, while Kim Hak-song is believed to have been born in China, although he is ethnically Korean.

South Korea’s presidential Blue House welcomed the release, both for the men and their families and for the signals it sends about North Korea’s sincerity.

“This decision made by North Korea will be a positive factor for the success of the North Korea-United States summit,” said Blue House spokesman Yoon Young-chan.

“There’s also considerable significance in the fact that all three American detainees are of Korean origin,” he said.

When Pompeo touched down in Pyongyang shortly before 8 a.m. local time, he was greeted by Kim Yong Chol, a former North Korean intelligence chief, and Ri Su Yong, the influential former foreign minister. Ri is close to Kim Jong Un, having served as ambassador to Switzerland while the young leader attended school there.

Kim Yong Chol, who is in charge of relations with South Korea, and Ri, responsible for international relations, had just returned from the northeastern Chinese city of Dalian, where Kim Jong Un held talks with Chinese President Xi Jinping, their second meeting in China in 40 days.

Both also attended the inter-Korean summit with South Korean President Moon Jae-in late last month. 

Pompeo told the officials over lunch that if North Korea gives up its nuclear weapons, the country can “have all the opportunities your people so richly deserve.”

“For decades, we have been adversaries,” Pompeo told Kim Yong Chol, a man sanctioned by the United States for his involvement with the North’s nuclear program but who has emerged as one of the regime’s key interlocutors to the outside world.

“Now we are hopeful that we can work together to resolve this conflict, take away threats to the world and make your country have all the opportunities your people so richly deserve,” Pompeo said before lunch at the Koryo Hotel, a large, double-towered building in central Pyongyang. 

“There are many challenges along the way. But you have been a great partner in working to make sure our two leaders will have a summit that is successful,” the new secretary of state said. 

Pompeo and Kim Yong Chol met behind closed doors at the Koryo Hotel for about an hour Wednesday morning, before a lunch complete with poached fish, duck and red wine on the 39th floor. 

Kim Yong Chol was in an effusive mood, telling Pompeo and the dozen or so staffers traveling with him that this was a good time to be in Pyongyang because it was spring and because a good atmosphere had been established between North and South. This echoed remarks that both Korean leaders have made about a new spring arriving on the peninsula. 

“So everything is going well in Pyongyang now,” he said, adding that from now on, North Korea would be concentrating all its efforts on “the economic progress of our country.”

“This is not a result of sanctions that have been imposed from outside,” Kim Yong Chol told Pompeo, contradicting the administration’s line that Trump’s “maximum pressure” approach had brought North Korea to the negotiating table.  

“I hope the United States also will be happy with our success. I have high expectations the U.S. will play a very big role in establishing peace on the Korean Peninsula,” he said. Then he toasted Pompeo.

Pompeo stood and said the American delegation was “equally committed to working with you to achieve exactly” that. 

Fifield reported from Tokyo. Nakamura reported from Washington.

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