Ex-Trump lawyer Cohen gets 3 years in prison

NEW YORK — Michael Cohen, President Donald Trump’s once-devoted lawyer and all-around fixer, was sentenced Wednesday to three years in prison for allowing what he said was his “blind loyalty” to Trump to lead him astray. “I felt it was my duty to cover up his dirty deeds,” he said.

Standing alone at the defence table, Cohen, 52, shook his head slightly and closed his eyes as the judge pronounced the sentence for crimes that included lying about his boss’ business dealings in Russia and funneling hush money to two women who said they had sex with Trump — payments that both Cohen and federal prosecutors said were made at the president’s direction.

Cohen is the first — and so far, only — member of Trump’s circle during two years of investigations to go into open court and implicate the president in a crime, though whether a president can be prosecuted under the Constitution is an open question.

U.S. District Judge William H. Pauley III said Cohen deserved modest credit for his decision over the summer to admit guilt and co-operate in the federal investigation of efforts by Russians to influence the 2016 presidential election, but his assistance “does not wipe the slate clean.”

“Somewhere along the way Mr. Cohen appears to have lost his moral compass,” the judge said. “As a lawyer, Mr. Cohen should have known better.”

The sentence was in line with what federal prosecutors asked for. Sentencing guidelines called for around four to five years behind bars, and the government asked in court papers that Cohen be given only a slight break. He was ordered to surrender March 6 and left court without comment.

“It was my blind loyalty to this man that led me to take a path of darkness instead of light,” Cohen, a man who once boasted he would “take a bullet” for Trump, told the judge before the sentence came down. “I felt it was my duty to cover up his dirty deeds.”

Cohen got choked up near the end of his remarks and paused briefly to compose himself. His daughter, seated behind him, sobbed throughout. As he returned to his seat, he ran his hand across her cheek.

Cohen’s lawyers had argued for leniency, saying he decided to co-operate with investigators rather than hold out for a possible pardon.

“He came forward to offer evidence against the most powerful person in our country,” defence attorney Guy Petrillo told the judge.

Cohen pleaded guilty in August to evading $1.4 million in taxes related to his personal businesses. In the part of the case with greater political repercussions, he also admitted breaking campaign finance laws in arranging payments in the waning days of the 2016 election to porn star Stormy Daniels and Playboy model Karen McDougal.

Last month, he also pleaded guilty to lying to Congress by concealing that he was negotiating a proposal to build a Trump skyscraper in Moscow deep into the presidential campaign season. He said he lied out of devotion to Trump, who had insisted during the campaign that he had no business ties whatsoever to Russia.

The sentence was the culmination of a spectacular rise and fast fall of a lawyer who attached himself to the fortunes of his biggest client, helped him get elected president, then turned on him, co-operating with two interconnected investigations: one run by federal prosecutors in New York, the other by special counsel Robert Mueller, who is leading the Russia investigation.

Beyond the guilty pleas, it is unclear exactly what Cohen has told prosecutors, and it remains to be seen how much damage Cohen’s co-operation will do to Trump. Legal experts said Cohen could get his sentence reduced if he strikes a deal with prosecutors to tell them more.

Cohen said in court that he will continue co-operating. And his legal adviser Lanny Davis, who previously represented President Bill Clinton, said the former political fixer will tell publicly “all he knows” about Trump after Mueller completes his investigation, and that includes testifying before Congress.

“Mr. Trump’s repeated lies cannot contradict stubborn facts,” Davis said in a statement.

At the sentencing, a prosecutor in Mueller’s office, Jeannie Rhee, said Cohen has “sought to tell us the truth and that is of the utmost value to us” and has “provided consistent and credible information about core Russia-related issues under investigation.” She did not elaborate.

But the New York-based prosecutors who handled the case had urged the judge to sentence Cohen to a “substantial” prison term and said he failed to tell investigators everything he knows. Prosecutor Nicolas Roos said Cohen’s crimes showed a “pattern of deceit, brazenness and greed.”

In a court filing last week, the prosecutors left no doubt that they believe Cohen arranged the hush-money payments at Trump’s direction, saying the manoeuvr was part of an effort to “influence the election from the shadows.”

Trump had denied any sexual relationship with the women and argued on Twitter earlier this week that the payments to the women were “a simple private transaction,” not a campaign contribution. And if it was a prohibited contribution, Trump said, Cohen is the one who should be held responsible.

“Lawyer’s liability if he made a mistake, not me,” Trump wrote, adding, “Cohen just trying to get his sentence reduced. WITCH HUNT!”

Trump had repeatedly called for a tough sentence for Cohen, whom he labeled a liar.

Cohen has had at least seven meetings with Mueller’s team, which said in court papers that Cohen provided “relevant and useful” information about attempts by Russian figures to influence Trump’s campaign.

In the hush-money case, prosecutors said, Cohen arranged for the parent company of the National Enquirer to pay $150,000 to McDougal. He also paid $130,000 to Daniels and was reimbursed by Trump’s business empire. Prosecutors said the McDougal payment violated federal law against corporate campaign contributions, while the money that went to Daniels exceeded the $2,700 limit on campaign donations.

Daniels’ lawyer, Michael Avenatti, who played a major role in exposing the hush-money discussions, said outside the courthouse: “We will not stop until the truth is known relating to the conduct of Donald Trump.” But he added: “Let me be clear, Michael Cohen is neither a hero nor a patriot” and “he deserves every day of the 36-month sentence he will serve.”

___

Associated Press writer Jim Mustian contributed to this report.

Larry Neumeister And Tom Hays, The Associated Press

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Ottawa’s avalanche of spending hasn’t helped First Nations

Published on November 19, 2024

Todayville

From the Fraser Institute

By Tom Flanagan

When Justin Trudeau came to power in 2015, he memorably said that the welfare of Indigenous Canadians was his highest priority. He certainly has delivered on his promise, at least in terms of shovelling out money.

During his 10 years in office, budgeted Indigenous spending has approximately tripled, from about $11 billion to almost $33 billion. Prime Minister Trudeau’s instruction to the Department of Justice to negotiate rather than litigate class actions has resulted in paying tens of billions of dollars to Indigenous claimants over alleged wrongs in education and other social services. And his government has settled specific claims—alleged violations of treaty terms or of the Indian Act—at four times the previous rate, resulting in the award of at least an additional $10 billion to First Nations government.

But has this avalanche of money really helped First Nations people living on reserves, who are the poorest segment of Canadian society?

One indicator suggests the answer is yes. The gap between reserves and other communities—as measured by the Community Well-Being Index (CWB), a composite of income, employment, housing and education—fell from 19 to 16 points from 2016 to 2021. But closer analysis shows that the reduction in the gap, although real, cannot be due to the additional spending described above.

The gain in First Nations CWB is due mainly to an increase in the income component of the CWB. But almost all of the federal spending on First Nations, class-action settlements and specific claims do not provide taxable income to First Nations people. Rather, the increase in income documented by the CWB comes from the greatly increased payments legislated by the Liberals in the form of the Canada Child Benefit (CCB). First Nations people have a higher birth rate than other Canadians, so they have more children and receive more (on average) from the Canada Child Benefit. Also, they have lower income on average than other Canadians, so the value of the CCB is higher than comparable non-Indigenous families. The result? A gain in income relative to other Canadians, and thus a narrowing of the CWB gap between First Nations and other communities.

There’s an important lesson here. Tens of billions in additional budgetary spending and legal settlements did not move the needle. What did lead to a measurable improvement was legislation creating financial benefits for all eligible Canadian families with children regardless of race. Racially inspired policies are terrible for many reasons, especially because they rarely achieve their goals in practise. If we want to improve life for First Nations people, we should increase opportunities for Canadians of all racial backgrounds and not enact racially targeted policies.

Moreover, racial policies are also fraught with unintended consequences. In this case, the flood of federal money has made First Nations more dependent rather than less dependent on government. In fact, from 2018 to 2022, “Own Source Revenue” (business earnings plus property taxes and fees) among First Nations bands increased—but not as much as transfers from government. The result? Greater dependency on government transfers.

This finding is not just a statistical oddity. Previous research has shown that First Nations who are relatively less dependent on government transfers tend to achieve higher living standards (again, as measured by the CWB index). Thus, the increase in dependency presided over by the Trudeau government does not augur well for the future.

One qualification: this finding is not as robust as I would like because the number of band governments filing reports on their finances has drastically declined. Of 630 First Nation governments, only 260 filed audited statements for fiscal 2022. All First Nations are theoretically obliged by the First Nations Financial Transparency Act, 2013, to publish such statements, but the Trudeau government announced there would be no penalties for non-compliance, leading to a precipitous decline in reporting.

This is a shame, because First Nations, as they often insist, are governments, not private organizations. And like other governments, they should make their affairs visible to the public. Also, most of their income comes from Canadian taxpayers. Both band members and other Canadians have a right to know how much money they receive, how it’s being spent and whether it’s achieving its intended goals.

Author:

Tom Flanagan

Professor Emeritus of Political Science and Distinguished Fellow, School of Public Policy, University of Calgary

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Musk, Ramaswamy to lead Trump efforts to cut waste, fraud in federal government

Published on November 13, 2024

Todayville

From The Center Square

By Brett Rowland

During his campaign, Ramaswamy proposed cutting 75% of the federal workforce. Musk recently suggested that he could cut $2 trillion from the federal budget, or about one-third of total U.S. spending.

President-elect Donald Trump picked Tesla CEO Elon Musk and businessman Vivek Ramaswamy to lead a newly created Department of Government Efficiency.

The department’s acronym, DOGE, is a nod to Musk’s favorite cryptocurrency, dogecoin. Trump said the new group will pave the way for his administration to “dismantle government bureaucracy, slash excess regulation, cut wasteful expenditures and restructure federal agencies.”

Trump laid out lofty goals for the group in his announcement this week.

“It will become, potentially, ‘The Manhatten Project,’ of our time,” Trump’s announcement said. “Republican politicians have dreamed about the objectives of ‘DOGE’ for a very long time.”

It won’t be an official government agency, which will likely allow Musk and Ramaswamy to avoid public financial disclosures.

Trump said the change he’s looking for won’t come from within the existing federal government.

“To drive this kind of change, the Department of Government Efficiency will provide advice and guidance from outside the government, and will partner with the White House and Office of Management & Budget to drive large scale structural reform and create and entrepreneurial approach to government never seen before,” the announcement noted.

Trump said he looks forward to what Musk and Ramaswamy can accomplish.

“Importantly, we will drive out the massive waste and fraud which exists throughout our annual $6.5 trillion of government spending,” he said.

Trump also gave them a deadline: July 4, 2026.

“A smaller government, with more efficiency and less bureaucracy will be the perfect gift to America” on the 250th anniversary of the Declaration of Independence, according to the announcement.

Ramaswamy, who dropped out the race for the GOP nomination to endorse Trump in January, has previously proposed significant cuts. During his campaign, Ramaswamy proposed cutting 75% of the federal workforce.

Musk recently suggested that he could cut $2 trillion from the federal budget, or about one-third of total U.S. spending. He’s been tossing out ideas on X, previously Twitter before Musk bought the company and changed the name.

“The world is suffering slow strangulation by overregulation. Every year, the noose tightens a little more,” Musk wrote in a post on X on Wednesday. “We finally have a mandate to delete the mountain of choking regulations that do not serve the greater good.”

Musk also said he isn’t a threat to democracy, but a threat to bureaucracy.

DOGE already has an X account. It’s first post: “Working overtime to ensure your tax dollars will be spent wisely!”

Some budget experts have called Musk’s pledge to cut $2 trillion a pipe dream, noting that many of the problems DOGE wants to address have proven intractable.

Brian Riedl, a senior fellow at the Manhattan Institute think tank, called Musk’s proposal “a random number unattached to reality.”

Marc Goldwein, the senior vice president and senior policy director for the Committee for a Responsible Federal Budget, said it could be done with 10 aggressive policies, mostly focused on Medicare and Medicaid.

“The government can legitimately save trillions over a decade by reducing waste and improving efficiency – and I hope we do,” Goldwein wrote on X. “Achieving these savings requires major changes to how and how much we pay for health care.”

Medicare (annual cost of about $1 trillion) is a federal health insurance program for people 65 or older, and some people younger than 65 with certain disabilities or conditions. Medicaid (annual cost of about $558 billion) is a joint federal and state program that helps cover medical costs for some people with limited income and resources.

The Government Accountability Office, which serves as the research arm of Congress, estimated annual fraud losses cost taxpayers between $233 billion and $521 billion annually, in a report in April. The fraud estimate’s range represents 3% to 7% of average federal obligations. The Office of Management and Budget publicly questioned that estimate, calling it “not plausible.”

“OMB has significant concerns that this report will not further efforts to prevent and reduce fraud, but rather will create confusion and promote misleading generalizations that have no factual connection to specific federal programs,” Jason Miller, the deputy director for management at the Office of Management and Budget, wrote of OMB concerns in a three-page letter to officials with the Government Accountability Office.

On the campaign trail, Ramaswamy detailed his plan to reduce the federal workforce by 75% during an event at the America First Policy Institute in Washington in 2023.

Ramaswamy said he would shutter the FBI (about 35,000 employees); the Bureau of Alcohol, Tobacco, Firearms a nd Explosives (5,099 employees); the U.S. Department of Education (about 4,200 employees); the Nuclear Regulatory Commission (about 3,000 employees); and the Department of Agriculture’s Food and Nutrition Services (about 1,500 employees).

Under Ramaswamy’s campaign plan, some 15,000 FBI employees would be moved to other agencies such as the U.S. Marshals Service, U.S. Secret Service, Treasury’s Financial Crimes Enforcement Network, Drug Enforcement Administration, Defense Intelligence Agency, and Commerce’s Bureau of Industry and Security.

Some groups called the Department of Government Efficiency goals a stretch. Others had more pointed things to say.

Lisa Gilbert, co-president of Public Citizen, a progressive consumer advocacy organization founded by Ralph Nader, said the government agencies and regulations Ramaswamy proposed cutting are in place to protect people.

“The purpose of government regulations is to protect the American people,” she said in a statement. “We all depend on these regulations to protect our air, water, workers, children’s safety, and so much more. ‘Cutting red tape’ is shorthand for getting rid of the safeguards that protect us in order to benefit corporate interests.”