Before the Obama administration approved a controversial deal in 2010
giving Moscow control of a large swath of American uranium, the FBI had
gathered substantial evidence that Russian nuclear industry officials
were engaged in bribery, kickbacks, extortion and money laundering
designed to grow Vladimir Putin’s atomic energy business inside the
United States, according to government documents and interviews.
Federal
agents used a confidential U.S. witness working inside the Russian
nuclear industry to gather extensive financial records, make secret
recordings and intercept emails as early as 2009 that showed Moscow had
compromised an American uranium trucking firm with bribes and kickbacks
in violation of the Foreign Corrupt Practices Act, FBI and court
documents show.
They also obtained an eyewitness account — backed
by documents — indicating Russian nuclear officials had routed millions
of dollars to the U.S. designed to benefit former President
Bill Clinton’s charitable foundation during the time Secretary of State
Hillary Clinton served on a government body that provided a favorable decision to Moscow, sources told The Hill.
The
racketeering scheme was conducted “with the consent of higher level
officials” in Russia who “shared the proceeds” from the kickbacks, one
agent declared in an affidavit years later.
Rather
than bring immediate charges in 2010, however, the Department of
Justice (DOJ) continued investigating the matter for nearly four more
years, essentially leaving the American public and Congress in the dark
about Russian nuclear corruption on U.S. soil during a period when the
Obama administration made two major decisions benefiting Putin’s
commercial nuclear ambitions.The first decision occurred in October
2010, when the State Department and government agencies on the Committee
on Foreign Investment in the United States unanimously approved the
partial sale of Canadian mining company Uranium One to the Russian
nuclear giant Rosatom, giving Moscow control of more than 20 percent of
America’s uranium supply.
When this sale was used by Trump on the
campaign trail last year, Hillary Clinton’s spokesman said she was not
involved in the committee review and noted the State Department official
who handled it said she “never intervened ... on any [Committee on
Foreign Investment in the United States] matter.”
In 2011, the
administration gave approval for Rosatom’s Tenex subsidiary to sell
commercial uranium to U.S. nuclear power plants in a partnership with
the United States Enrichment Corp. Before then, Tenex had been limited
to selling U.S. nuclear power plants reprocessed uranium recovered from
dismantled Soviet nuclear weapons under the 1990s Megatons to Megawatts
peace program.
“The Russians were compromising American
contractors in the nuclear industry with kickbacks and extortion
threats, all of which raised legitimate national security concerns. And
none of that evidence got aired before the Obama administration made
those decisions,” a person who worked on the case told The Hill,
speaking on condition of anonymity for fear of retribution by U.S. or
Russian officials.
The Obama administration’s decision to approve
Rosatom’s purchase of Uranium One has been a source of political
controversy since 2015.
That’s when conservative author Peter
Schweitzer and The New York Times documented how Bill Clinton collected
hundreds of thousands of dollars in Russian speaking fees and his
charitable foundation collected millions in donations from parties
interested in the deal while Hillary Clinton presided on the Committee
on Foreign Investment in the United States.
The Obama
administration and the Clintons defended their actions at the time,
insisting there was no evidence that any Russians or donors engaged in
wrongdoing and there was no national security reason for any member of
the committee to oppose the Uranium One deal.
But FBI, Energy
Department and court documents reviewed by The Hill show the FBI in fact
had gathered substantial evidence well before the committee’s decision
that Vadim Mikerin — the main Russian overseeing Putin’s nuclear
expansion inside the United States — was engaged in wrongdoing starting
in 2009.
Then-Attorney General
Eric Holder
was among the Obama administration officials joining Hillary Clinton on
the Committee on Foreign Investment in the United States at the time
the Uranium One deal was approved. Multiple current and former
government officials told The Hill they did not know whether the FBI or
DOJ ever alerted committee members to the criminal activity they
uncovered.
Spokesmen for Holder and Clinton did not return calls seeking comment. The Justice Department also didn’t comment.
Mikerin
was a director of Rosatom’s Tenex in Moscow since the early 2000s,
where he oversaw Rosatom’s nuclear collaboration with the United States
under the Megatons to Megwatts program and its commercial uranium sales
to other countries. In 2010, Mikerin was dispatched to the U.S. on a
work visa approved by the Obama administration to open Rosatom’s new
American arm called Tenam.
Between 2009 and January 2012, Mikerin
“did knowingly and willfully combine, conspire confederate and agree
with other persons … to obstruct, delay and affect commerce and the
movement of an article and commodity (enriched uranium) in commerce by
extortion,” a November 2014 indictment stated.
His illegal conduct
was captured with the help of a confidential witness, an American
businessman, who began making kickback payments at Mikerin’s direction
and with the permission of the FBI. The first kickback payment recorded
by the FBI through its informant was dated Nov. 27, 2009, the records
show.
In evidentiary affidavits
signed in 2014 and 2015,
an Energy Department agent assigned to assist the FBI in the case
testified that Mikerin supervised a “racketeering scheme” that involved
extortion, bribery, money laundering and kickbacks that were both
directed by and provided benefit to more senior officials back in
Russia.
“As part of the scheme, Mikerin, with the consent of
higher level officials at TENEX and Rosatom (both Russian state-owned
entities) would offer no-bid contracts to US businesses in exchange for
kickbacks in the form of money payments made to some offshore banks
accounts,” Agent David Gadren testified.
“Mikerin apparently then
shared the proceeds with other co-conspirators associated with TENEX in
Russia and elsewhere,” the agent added.
The investigation was
ultimately supervised by then-U.S. Attorney Rod Rosenstein, an Obama
appointee who now serves as President Trump’s deputy attorney general,
and then-Assistant FBI Director Andrew McCabe, now the deputy FBI
director under Trump, Justice Department documents show.
Both men now play a key role in the current investigation into possible, but still unproven, collusion between Russia and
Donald Trump’s
campaign during the 2016 election cycle. McCabe is under congressional
and Justice Department inspector general investigation in connection
with money his wife’s Virginia state Senate campaign accepted in 2015
from now-Virginia Gov. Terry McAuliffe at a time when McAuliffe was
reportedly under investigation by the FBI. The probe is not focused on
McAuliffe's conduct but rather on whether McCabe's attendance violated
the Hatch Act or other FBI conflict rules.
The
connections to the current Russia case are many. The Mikerin probe
began in 2009 when Robert Mueller, now the special counsel in charge of
the Trump case, was still FBI director. And it ended in late 2015 under
the direction of then-FBI Director James Comey, whom Trump fired earlier
this year.
Its many twist and turns aside, the FBI nuclear
industry case proved a gold mine, in part because it uncovered a new
Russian money laundering apparatus that routed bribe and kickback
payments through financial instruments in Cyprus, Latvia and Seychelles.
A Russian financier in New Jersey was among those arrested for the
money laundering, court records show.
The case also exposed a
serious national security breach: Mikerin had given a contract to an
American trucking firm called Transport Logistics International that
held the sensitive job of transporting Russia’s uranium around the
United States in return for more than $2 million in kickbacks from some
of its executives, court records show.
One of Mikerin’s former
employees told the FBI that Tenex officials in Russia specifically
directed the scheme to “allow for padded pricing to include kickbacks,”
agents testified in one court filing.
Bringing down a major
Russian nuclear corruption scheme that had both compromised a sensitive
uranium transportation asset inside the U.S. and facilitated
international money laundering would seem a major feather in any law
enforcement agency’s cap.
But the Justice Department and FBI took
little credit in 2014 when Mikerin, the Russian financier and the
trucking firm executives were arrested and charged.
The only
public statement occurred a year later when the Justice Department put
out a little-noticed press release in August 2015, just days before
Labor Day. The release noted that the various defendants had reached
plea deals.
By
that time, the criminal cases against Mikerin had been narrowed to a
single charge of money laundering for a scheme that officials admitted
stretched from 2004 to 2014. And though agents had evidence of criminal
wrongdoing they collected since at least 2009, federal prosecutors only
cited in the plea agreement a handful of transactions that occurred in
2011 and 2012, well after the Committee on Foreign Investment in the
United States’s approval.
The final court case also made no
mention of any connection to the influence peddling conversations the
FBI undercover informant witnessed about the Russian nuclear officials
trying to ingratiate themselves with the Clintons even though agents had
gathered documents showing the transmission of millions of dollars from
Russia’s nuclear industry to an American entity that had provided
assistance to Bill Clinton’s foundation, sources confirmed to The Hill.
The
lack of fanfare left many key players in Washington with no inkling
that a major Russian nuclear corruption scheme with serious national
security implications had been uncovered.
On Dec. 15, 2015, the
Justice Department put out a release stating that Mikerin, “a former
Russian official residing in Maryland was sentenced today to 48 months
in prison” and ordered to forfeit more than $2.1 million.
Ronald
Hosko, who served as the assistant FBI director in charge of criminal
cases when the investigation was underway, told The Hill he did not
recall ever being briefed about Mikerin’s case by the
counterintelligence side of the bureau despite the criminal charges that
were being lodged.
“I had no idea this case was being conducted,” a surprised Hosko said in an interview.
Likewise, major congressional figures were also kept in the dark.
Former
Rep. Mike Rogers (R-Mich.), who chaired the House Intelligence
Committee during the time the FBI probe was being conducted, told The
Hill that he had never been told anything about the Russian nuclear
corruption case even though many fellow lawmakers had serious concerns
about the Obama administration’s approval of the Uranium One deal.
“Not
providing information on a corruption scheme before the Russian uranium
deal was approved by U.S. regulators and engage appropriate
congressional committees has served to undermine U.S. national security
interests by the very people charged with protecting them,” he said.
“The Russian efforts to manipulate our American political enterprise is
breathtaking.”