Detroit-area men who sent millions to Yemen spared prison

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Detroit-area men who sent millions to Yemen spared prison

2019-10-20 23:19 Last Updated At：23:50

A group of Detroit-area men opened bank accounts to move millions of dollars to Yemen, their war-torn native country. Their crime: They didn't register as a money transfer business.

Their luck: They drew a sympathetic judge.

One by one, U.S. District Judge Avern Cohn declined to send them to prison, despite guidelines that call for a few years or more behind bars. He noted that Yemen's financial system is a mess and its residents desperately need help. Defense lawyers have praised the judge for educating himself about the poorest country in the Arab world and understanding cultural traditions.

"Only people without compassion" would object to the light sentences, the 95-year-old judge told The Associated Press.

"As I've been here longer," Cohn said, "I've come to the realization that the rules are flexible — at least to me."

The Detroit area is believed to have the highest U.S. population of Yemenis, a demographic that has risen amid war in Yemen that has killed tens of thousands of people and left millions more with food and health care shortages.

Money sent from abroad is critical. The World Bank estimates that Yemenis received at least $3.3 billion in 2018, a figure some experts consider conservative. Cash from expatriates is "hugely important" and remains a "mainstay for many households and the national economy," said Sheila Carapico, a professor of global studies at the University of Richmond in Virginia.

Since 2018, federal prosecutors in Detroit have charged nine people in an investigation of cash transfers to Yemen. Bank accounts were opened in the names of shell businesses, then used to deposit and wire roughly $90 million over a seven-year period, according to plea agreements filed in court.

"Much of the currency originated from bodegas in New York City and from businesses and individuals in the metro Detroit area and was sent in a manner to conceal the true ownership of the currency, place it outside reach of law enforcement and evade income taxes," Assistant U.S. Attorney Timothy Wyse said.

The "evil" is the lack of records to precisely track the cash, he said.

All nine men have pleaded guilty to failing to register money transfer businesses or making false statements to agents. One, Fahd Samaha, said he charged people only 1%, much less than typical financial service providers. The government said he moved $13 million to Yemen.

"There were no victims. ... He used the extra money to live and take care of his family," said Samaha's attorney, Jalal Dallo.

The cases were assigned to Cohn, who has been a federal judge since 1979. During a September hearing, he described the conditions in Yemen as "horrendous" and noted that sending men to prison can cause hardship in conservative Muslim families where wives often don't work outside the home.

It's unfair to "shed the traditions and practices of your homeland," Cohn told Hazem Saleh, who possibly faced five years in custody for handling $22.6 million.

Judges don't have to follow sentencing guidelines, and Cohn rejected prison terms. He placed Saleh and five others on supervised release, a form of probation. Three others await sentencing.

"Please look at me as you would look at your own son," Ahmed Al-Howshabi told the judge in July. "I can truthfully say I did not understand the laws and regulations of operating such a business."

Prosecutors said they had no evidence the scheme was anything more than sending money to relatives and possibly avoiding taxes, but they believed sentences within the guidelines were appropriate.

"Sometimes judges agree with us and sometimes they don't," U.S. Attorney Matthew Schneider told the AP.

Defense attorney William Swor, whose grandparents emigrated from Syria, said people of Arab descent appear to be under greater scrutiny than others in the U.S.

"In the post-9/11 world, the government says it wants to know who's transferring money out of the country. We'll assume that's a legitimate concern, but it's not inherently a dangerous activity," Swor said.

Follow Ed White at http://twitter.com/edwhiteap

'Make sure it doesn't get released;' Star witness Michael Cohen implicates Trump in hush money case

2024-05-14 02:19 Last Updated At：02:30

NEW YORK (AP) — Donald Trump's fixer-turned-foe, Michael Cohen, directly implicated the former president in a hush money scheme Monday, telling jurors that his celebrity client approved hefty payouts to stifle stories about sex that he feared could be harmful to his 2016 White House campaign.

“You handle it,” Cohen quoted Trump as telling him after learning that a doorman had come forward with a claim that Trump had fathered a child out-of-wedlock. The Trump Tower doorman was paid $30,000 to keep the story “off the market” even though the claim was ultimately deemed unfounded.

A similar episode occurred after Cohen alerted Trump that a Playboy model was alleging that she and Trump had an extramarital affair. Again, the order was clear: “Make sure it doesn't get released,” Cohen said Trump told him. The woman, Karen McDougal, was paid $150,000 in a hush money arrangement that was made after Trump was given a “complete and total update on everything that transpired.”

“What I was doing was at the direction of and benefit of Mr. Trump,” Cohen testified.

Cohen, Trump’s former lawyer and personal fixer, is by far the Manhattan district attorney’s most important witness in the case, and his much-awaited appearance on the stand signaled that the first criminal trial of a former American president is entering its final stretch.

The testimony of a witness with such intimate knowledge of Trump’s activities could heighten the legal exposure of the presumptive Republican presidential nominee if jurors deem him sufficiently credible. But prosecutors’ reliance on a witness with such a checkered past — Cohen pleaded guilty to federal charges related to the payments — also carries sizable risks with a jury. In addition, it could be a boon to Trump politically as he raises money off his legal woes and paints the case as the product of a tainted criminal justice system.

Though jurors have heard from others about the tabloid industry practice of “catch-and-kill,” in which rights to a story are purchased so that it can then be quashed, Cohen's testimony is crucial to prosecutors because of his proximity to Trump and because he says he was in direct communication with the then-candidate about embarrassing stories he was scrambling to prevent from surfacing.

Besides payments to the doorman and to McDougal, another sum went to porn actor Stormy Daniels, who told jurors last week that the $130,000 she received was meant to prevent her from going public about a sexual encounter she says she had with Trump in a hotel suite a decade earlier.

Cohen also matters because the reimbursements he received from that payment form the basis of the charges against Trump — 34 felony counts of falsifying business records. Prosecutors say the reimbursements were logged, falsely, as legal expenses to conceal the payments’ true purpose.

Cohen gave jurors an insider account of his negotiations with David Pecker, the then-publisher of the National Enquirer, and the newspaper's top editor about suppressing stories harmful to Trump, an effort that took on added urgency following the October 2016 disclosure of an “Access Hollywood” recording in which Trump was heard boasting about grabbing women sexually.

The Daniels payment was finalized several weeks after that revelation, but much of Monday's testimony centered on the deal earlier that fall with McDougal.

Pecker earlier testified that he had pledged to be the “eyes and ears” of the Trump campaign and was such a loyalist that he told Cohen that his publication maintained a “file drawer or a locked drawer as he described it, where files related to Mr. Trump were located,” according to testimony Monday.

Cohen testified that he went to Trump immediately after the National Enquirer alerted him to a story about the alleged McDougal affair. “Make sure it doesn’t get released," he says Trump told him.

Trump checked in with Pecker about the matter, asking him how “things were going” with it, Cohen said. Pecker responded: "'We have this under control, and we’ll take care of this,’” Cohen testified.

Cohen also said he was with Trump as Trump spoke to Pecker on a speakerphone in his Trump Tower office.

“David stated it would cost $150,000 to control the story,” Cohen said. He quoted Trump as saying: “No problem, I’ll take care of it," meaning that the payments be reimbursed.

To lay the foundation that the deals were done with Trump's endorsement, prosecutors elicited testimony from Cohen — who spent a decade as a Trump Organization senior executive — designed to show Trump as a hands-on manager on whose behalf Cohen said he sometimes lied and bullied others, including reporters.

“When he would task you with something, he would then say, ‘Keep me informed. Let me know what’s going on,’” Cohen testified. He said that was especially true “if there was a matter that was troubling to him.”

“If he learned of it in another manner, that wouldn’t go over well for you,” Cohen testified.

Defense lawyers have teed up a bruising cross-examination of Cohen, telling jurors during opening statements that he's an “admitted liar” with an “obsession to get President Trump.”

Prosecutors are expected to try to blunt those attacks by eliciting detailed testimony from Cohen about his past crimes. They have also called other witnesses whose accounts, they hope, will buttress Cohen's testimony. Those witnesses included a lawyer who negotiated the hush money payments on behalf of Daniels and McDougal, as well as Pecker and Daniels.

Trump sat silently with his eyes closed as Cohen’s testimony covered the payoff to the doorman and other aspects of the hush money machinations. He did not appear to make eye contact with Cohen as the lawyer took the stand.

Cohen's role as star prosecution witness further cements the disintegration of a mutually beneficial relationship that was once so close that the attorney famously said he would “take a bullet for Trump.” After Cohen's home and office were raided by the FBI in 2018, Trump showered him with affection on social media, praising him as a “fine person with a wonderful family” and predicting — incorrectly — that Cohen would not "flip."

Months later, Cohen did exactly that, pleading guilty that August to federal campaign-finance charges in which he implicated Trump. By that point, the relationship was irrevocably broken, with Trump posting on the social media platform then known as Twitter: “If anyone is looking for a good lawyer, I would strongly suggest that you don’t retain the services of Michael Cohen!”

Cohen later admitted lying to Congress about a Moscow real estate project that he had pursued on Trump's behalf during the heat of the 2016 Republican campaign. He said he lied to be consistent with Trump's “political messaging.”

Defense lawyers are expected to exploit all the challenges that accompany a witness like Cohen. Besides portraying him as untrustworthy, they're also expected to cast him as vindictive, vengeful and agenda-driven.

Since their fallout, Cohen has emerged as a relentless and sometimes crude critic of Trump, appearing as recently as last week in a live TikTok wearing a shirt featuring a figure resembling Trump with his hands cuffed, behind bars. The judge on Friday urged prosecutors to tell him to refrain from making any more statements about the case or Trump.