TPMMuckraker
FBI: November 2008

Spitzer Probe May Not Be Prime Focus Of House Inquiry, After All

Zachary Roth | November 26, 2008, 11:48AM

The news that a House committee plans to look into the events that led to that fateful investigation of Eliot Spitzer may have some observers licking their chops in anticipation of finding out whether the probe was politically motivated payback for the governor's targeting of Wall Street.

That notion has persisted, despite little concrete evidence, almost since the news of Spitzer's tryst with Ashley Dupre first surfaced in March.

But don't get too excited just yet. Steve Adamske, a spokesman for Rep. Barney Frank -- who, as chair of the House Financial Services committee, will run the inquiry -- told TPMmuckraker in an interview that in fact the effort won't be designed primarily to look at that question. Rather, said Adamske, it will focus on the somewhat drier subject of whether increased scrutiny by the Treasury Department of banking transactions, as required by the Patriot Act, is an effective counter-terrorism tool. Banks have in the past complained about the increased paperwork required by the law, arguing that in addition to being burdensome, it does little to help fight terrorism.

The Spitzer saga is the hook for an inquiry into that subject because the investigation of the governor began after his bank filed a routine report to Treasury about a series of wire transfers he made to QAT International, a shell company connected to the Emperor's Club prostitution ring. After another bank filed reports about suspicious activities by QAT International, investigators noticed the previous report about Spitzer, and began looking closer.

That focus may disappoint some committee members. Michael Capuano, a Massachusetts Democrat on the committee, seems to see the issue differently. "The question was: Why were they looking for this? Is this political retribution?" he told the New York Times.

But it's by no means clear that Frank's inquiry will answer that question.

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Topics: Eliot Spitzer, FBI, Justice Department

Justice Department

DOJ Releases Hatfill Documents

Zachary Roth | November 25, 2008, 4:19PM

The Associated Press reports:

The Justice Department has released hundreds of documents that it used to falsely accuse scientist Steven J. Hatfill of masterminding the 2001 anthrax attacks.

The documents were unsealed Tuesday following last week's federal court order to do so. They show the FBI seized clothing, financial records, VHS tapes, books and other papers from Hatfill's home in Frederick, Md.

Hatfill originally was named a person of interest in the anthrax attacks. But the Justice Department cleared him last summer after switching its focus to another suspect, Bruce Ivins.

Some of the court documents can be found here. We'll bring you the rest as soon as DOJ makes them available.

The New York Times and Los Angeles Times had sued to have the Hatfill documents released.

Late Update: Here are more of the documents.

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Topics: FBI, Justice Department, Steven Hatfill

FBI

Boxer Aide Facing Child Porn Charges

Zachary Roth | November 13, 2008, 2:03PM

Jeff Rosato, a senior staffer for Sen. Barbara Boxer (D-CA), has been fired after he was charged by authorities late last week with distributing and receiving child pornography.

Roll Call reports (subscription required):

He was arrested after he sent more than 600 images and movies of child pornography to an undercover FBI agent he believed was a 13-year-old boy, according to an FBI affidavit.

The online chats occurred from Jan. 2 to Jan. 23 over Google Hello, a photo-sharing program that was shut down in June. To identify Rosato, the FBI subpoenaed Google and Comcast.

In a Nov. 7 search of Rosato's Alexandria home, FBI agents found a computer with "approximately 200 images of child pornography and child erotica, and several movies containing child pornography and child erotica." Many of the images showed prepubescent boys engaged in sexual acts, according to the affidavit.

Rosato, who had served as senior policy advisor and counsel on the Environment and Public Works Committee, which Boxer chairs, had worked for the California senator since 2005.

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Topics: Barbara Boxer, FBI, Pornography

Norm Coleman

Taking Stock Of The Coleman-Kazeminy Charges

Zachary Roth | November 13, 2008, 1:46PM

As Norm Coleman gets set for a recount in his bid to hold onto his Minnesota Senate seat, it's worth considering where things stand on the allegations that surfaced in the waning days of the campaign about Coleman's relationship with his friend and longtime associate, the businessman Nasser Kazeminy.

Here's what we know:

Late last month, in a suit filed in Texas, Paul McKim, the former CEO of Deep Marine Technologies (DMT), alleged in a sworn statement that Kazeminy -- who owns DMT -- directed him to make payments totaling $75,000 to the Hays Companies, a Minnesota insurance brokerage that employs Coleman's wife Laurie Coleman. The payments, claimed McKim in the suit, were not for legitimate work performed by Hays for DMT, but rather were a way for Kazeminy to funnel money to Coleman.

Soon afterwards, a group of DMT investors filed a separate suit naming both Kazeminy and McKim as defendants, and making similar allegations.

Since news of the suits surfaced in late October, none of the principals has offered responses that have put the matter to rest.

Coleman has vehemently denied the charges, and even cut a last-minute TV ad suggesting, with little evidence, that the campaign of his opponent, Democrat Al Franken, was behind them. And yesterday, when a progressive Minnesota watchdog group that ran ads attacking Coleman during the campaign held a press conference at which it called for investigations by the FBI and the Senate Ethics Committee into the matter, Coleman quickly said in a statement that he would welcome such probes, and that he wanted them to start "immediately." (Coleman's Senate office did not immediately respond to a detailed message from TPMmuckraker asking whether he has already been contacted by investigators.)

But neither Norm Coleman nor Laurie Coleman have offered details on the nature of her work for Hays.

Neither has Hays. Soon after news of the allegations broke, the company put out a statement calling the charges "libelous and defamatory." It said that Laurie Coleman "has been an Independent Contractor for Hays Companies since 2006," but offered no further detail on what she does for the company, beyond saying that she "receives no compensation related to the services we provide for our client Deep Marine Technology."

What are those services? Again, the statement was vague, saying only: "In the first half of 2007, we were retained to provide our risk management consulting services, and that work continues at this time."

As for Kazeminy, after initially remaning silent, he eventually hired a top Minneapolis-based crisis management expert, who late last week issued a tautological denial on his behalf: "Mr. Kazeminy vehemently denies the false and baseless claims made against him in recent weeks."

It's also worth noting that Norm Coleman and the Hays Companies may not have been on the same page about the arrangement between the firm and Laurie Coleman - a former model and actress who, according to state records examined by TPMmuckraker, only received her insurance license in October 2006. As we reported earlier this week, Norm Coleman wrote on his Senate disclosure forms for 2006 and 2007 that Laurie Coleman receives a salary from Hays - which would appear to contradict Hays' assertion that she's an independent contractor.

And according to FEC records examined by TPMmuckraker, Hays has been a frequent financial contributor to Coleman's Senate campaigns.

We may have to wait for possible law-enforcement or congressional investigations to get to the truth about Coleman's role in the alleged scheme. But it's certain that, barring any compelling explanations from any of the principals said to be involved, questions about the affair won't be going away any time soon.