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Clinton campaign lawyer sought to ‘use’ FBI, prosecutor says

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By Eric Tucker in Washington

WASHINGTON (AP) — A lawyer for Hillary Clinton’s 2016 campaign who is charged with lying to the FBI early in the Trump-Russia probe sought to “use and manipulate” federal law enforcement to create an “October surprise” in the final weeks of the presidential race, a prosecutor alleged Tuesday at the start of his trial. Defense lawyers told jurors he never lied.

Michael Sussmann is accused of misleading the FBI during a September 2016 meeting by telling the bureau’s top lawyer that he wasn’t acting on behalf of a particular client when he presented computer data that he said might connect Russia to then-candidate Donald Trump. In reality, prosecutors say, he was acting on behalf of the Clinton campaign and another client who had provided him with the data.

He lied, prosecutors told the jury, in hopes of generating an “October surprise” of FBI investigations into Trump and negative news coverage of him, and because he knew the FBI would consider the information less credible if it thought it was being presented on behalf of the Clinton campaign.

“He told a lie that was designed to achieve a political end, a lie that was designed to inject the FBI into a presidential election,” said prosecutor Brittain Shaw.

But Sussmann’s lawyers sought to counter each of the prosecution’s allegations, presenting him as a well-respected attorney with deep experience in law enforcement intelligence matters who never lied to the FBI and never would. The fact that he represented Democratic clients was well-known to the FBI and not anything he intended to hide.

“He was someone the FBI knew represented partisan clients,” defense lawyer Michael Bosworth said in his opening statement. ”The FBI knew that he represented the Clinton campaign that summer. The FBI knew that he was an attorney for the DNC, the Democratic Party itself.”

In any event, Bosworth said, it would be impossible for prosecutors to prove that Sussmann had lied because only he and the FBI lawyer he met with, James Baker, were present and neither took notes. Five and a half years after the meeting, Baker’s memory of what was said is “clear as mud,” Bosworth said.

Sussmann’s trial is the first arising from special counsel John Durham’s investigation into the FBI’s original probe into Russian election interference and potential ties with the Trump campaign. Though Durham was thought to be focused at least initially on misconduct by government officials during the course of the Russia investigation, the Sussmann case alleges wrongdoing by a tipster to the FBI rather than the FBI itself.

In an early recognition of the politically loaded nature of the case, Shaw urged jurors to put aside any feelings they might have about Trump, Russia or Clinton.

“Some people have very strong feelings about politics and Russia, and many people have strong feelings about Donald Trump and Russia. But we are not here because these allegations involved either of them, nor are we here because the client was the Hillary Clinton campaign,” Shaw said.

Rather, she added, “We are here because the FBI is our institution. It should not be used as a political tool.”

At issue is a Sept. 19, 2016 meeting in which Sussmann presented Baker, the FBI’s then general counsel, with computer data gathered by another of his clients that purported to show furtive contact between computer servers of the Trump Organization and Russia-based Alfa Bank.

That connection, if true, would have been explosive at a time when the FBI was examining whether the Trump campaign and Russia were conspiring to sway the election.

The FBI did investigate the data but found nothing nefarious, and the communication instead reflected what Shaw described as a “spam email server” used to send out marketing.

“The server did not reflect a crime,” Shaw told jurors, “nor was it a threat to national security.”

Bosworth said he took the computer data seriously because it appeared to show “weird contacts” between Trump’s business organization and Russia and because it was given to him by Rodney Joffe, a client who Bosworth said was such a respected technology executive that the FBI had asked him to be an informant.

He said Sussmann had sought out the meeting to give Baker a heads-up that a story about the computer data might be published imminently by The New York Times. Shaw, the prosecutor, had a different take, saying Sussmann had grown frustrated that a reporter he’d been working with had not yet written about the data and wanted to prompt investigations by the FBI that could ensure news media coverage.

But after the meeting, the FBI asked the newspaper to delay publication. That’s the opposite of what the Clinton campaign would have wanted, Bosworth said, suggesting that he wasn’t acting on the campaign’s behalf when he scheduled the meeting.

“The FBI meeting was something that they didn’t authorize, that they didn’t direct him to do, and that they wouldn’t have wanted,” Bosworth said.

Durham was appointed in 2019 by then-Attorney General William Barr to look for any misconduct as the U.S. government was examining potential coordination between Russia and the 2016 Trump campaign. An investigation by an earlier special counsel, Robert Mueller, did not find a criminal conspiracy between Russia and the Trump campaign though it did find that Russia sought to aid Trump’s election bid.

The Alfa Bank matter was a peripheral part of the FBI’s investigation and the allegations of potentially secretive contact were not even mentioned in Mueller’s 2019 report.

Durham’s work has resulted in three cases. Only the one against Sussmann has reached trial.

In 2020, a former FBI lawyer named Kevin Clinesmith pleaded guilty to altering an email related to FBI surveillance of an ex-Trump campaign adviser, Carter Page. In applying for warrants to eavesdrop on Page, the FBI relied on research files of anti-Trump information known colloquially as the “Steele dossier” that contained rumors and uncorroborated claims.

Last year, Durham charged a Russia analyst who was a source for that dossier with lying to the FBI about his own sources of information — among them, a longtime Hillary Clinton supporter. Igor Danchenko has pleaded not guilty.

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Follow Eric Tucker on http://www.twitter.com/etuckerAP.

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Economy

North American stock markets wrap up brutal quarter and first half of 2022

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By Ross Marowits in Toronto

Allan Small said the first half of 2022 has proven to be the worst run of his 25-year investment career.

Canada’s main stock index concluded its weakest quarter since before the pandemic while U.S. markets endured their worst six-months runs in decades on fears that rising interest rates will throw the economy into recession.

“As we hit the mid-point of the year, when you look back I think the first part of the year will be known for just a bloodbath in the markets,” the senior investment adviser at IA Private Wealth said in an interview.

The S&P/TSX composite index closed down 217.28 points to 18,861.36 to end the quarter off nearly 14 per cent for the biggest decrease since December 2019. The TSX is closed Friday for Canada Day while U.S. markets will be closed Monday for Independence Day.

In New York, the Dow Jones industrial average was down 253.88 points at 30,775.43. The S&P 500 index was down 33.45 points at 3,785.38, while the Nasdaq composite was down 149.15 points at 11,028.74.

The TSX is down 11 per cent so far this year, while the Dow is down 15 per cent, the S&P 500 is off 20.6 per cent for the worst six months in 50 years and Nasdaq fell a record 29.5 per cent.

“I don’t remember a year that started off the six months this poorly,” said Small.

Soaring inflation has been stoked by Russia’s invasion of Ukraine while supply chain bottlenecks have been accentuated by China’s COVID-19 lockdowns.

While markets endured steep declines in the past due to COVID-19 and the financial crisis, they were always followed by people buying the dip. This time, many investors remain on the sidelines after getting hammered and unsure about when markets will bottom out.

Economic data out of the U.S. on Thursday said core inflation numbers, the Fed’s preferred inflation measure, rose 4.7 per cent in May. That’s 0.2 of a per cent lower than April but still around 40-year highs.

In Canada, economic growth slowed in April to 0.3 per cent, while a preliminary estimate for May suggests it likely contracted 0.2 per cent. The U.S. previously said its economy slipped 1.6 per cent in the first quarter.

A negative number in the second quarter will mean the U.S. economy is technically in recession. But Small said many people think the economy is already there and that Canada is either in recession or about to go into one.

Small said he wouldn’t be surprised to see markets rise during a recession in anticipation of things getting better, with inflation moving down after peaking.

Real estate and utilities were the lone sectors in positive territory Thursday in a broad-based slump with six of nine sectors falling by more than one per cent.

Health care led the declines, losing 4.1 per cent with Canopy Growth Corp. plunging 18.5 per cent after the pot producer announced a convertible notes exchange.

Materials lost 3.6 per cent on a drop in metals prices, particularly copper.

The August gold contract was down US$10.20 at US$1,807.30 an ounce and the September copper contract was down 7.1 cents at US$3.71 a pound.

“Whenever you have fear of a recession, those types of metals which are used to build homes and build things, the fear is that you’re not going to need to use as much of these building materials,” Small said.

Energy lost 1.7 per cent on lower prices with crude oil dropping as Advantage Oil & Gas Ltd. shares were down six per cent.

The August crude contract was down US$4.02 at US$105.76 per barrel and the August natural gas contract was down US$1.07 at US$5.42 per mmBTU.

The Canadian dollar traded for 77.60 cents US compared with 77.65 cents US on Wednesday.

Shopify Inc. decreased 5.6 per cent to push technology lower while Laurentian Bank fell 2.5 per cent to lead a drop in the heavyweight financial sector.

Small is hoping for a better second half of the year after central banks conclude their aggressive interest rate hikes to tame soaring inflation.

“I don’t know if we’re going to make back enough to get us in the green for the year, but I’m hopeful that we’ll see a positive second half and we’ll make back some of the losses.”

This report by The Canadian Press was first published June 30, 2022.

Companies in this story: (TSX:AAV, TSX:WEED, TSX:LB, TSX:SHOP, TSX:GSPTSE, TSX:CADUSD=X)

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Environment

Supreme Court limits EPA in curbing power plant emissions

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WASHINGTON (AP) — In a blow to the fight against climate change, the Supreme Court on Thursday limited how the nation’s main anti-air pollution law can be used to reduce carbon dioxide emissions from power plants.

By a 6-3 vote, with conservatives in the majority, the court said that the Clean Air Act does not give the Environmental Protection Agency broad authority to regulate greenhouse gas emissions from power plants that contribute to global warming.

The court’s ruling could complicate the administration’s plans to combat climate change. Its proposal to regulate power plant emissions is expected by the end of the year.

President Joe Biden aims to cut the nation’s greenhouse gas emissions in half by the end of the decade and to have an emissions-free power sector by 2035. Power plants account for roughly 30% of carbon dioxide output.

The Associated Press

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july, 2022

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