What Does Baker Hostetler Have to Do With the Fusion GPS Controversy?
A brief guide to how the law firm's work for a Cyprus-based holding company became part of the investigation into Russian meddling in the U.S. election.
January 11, 2018 at 02:05 PM
5 minute read
A Russian who met Donald Trump Jr. in June 2016—reportedly to provide information damaging to Hillary Clinton's presidential campaign—shared the firm's client when it hired the company behind the infamous Steele dossier.
How did Baker Hostetler become a supporting character in the geopolitical drama over Russian meddling in the U.S. election, with possible implications for the fate of the Trump administration?
The simple version? It was partly a matter of luck.
The firm was tapped beginning in at least 2013 to defend a Cypriot company, Prevezon Holdings Ltd., against U.S. money laundering accusations. Natalia Veselnitskaya, the Russian lawyer who met Donald Trump Jr. in June 2016—reportedly with the intent to provide information damaging to Hillary Clinton's presidential campaign—was also working for Prevezon. And Fusion GPS, the company that produced the infamous Steele dossier on President Donald Trump and Russia, was also retained by Baker Hostetler amid the Prevezon litigation.
But the story of the firm's involvement with Veselnitskaya and Fusion GPS is anything but simple.
Many of the connections above were apparent long before the current Fusion GPS controversy, partly because the law firm's work for Prevezon became the focus of a high-profile (and ultimately successful) disqualification bid by a previous Baker Hostetler client, Hermitage Capital. The firm's Prevezon work and its ties to Fusion GPS were also highlighted in a complaint brought by Hermitage CEO Bill Browder last year over allegedly improper pro-Russia lobbying efforts.
Hermitage's lawyer, Sergei Magnitsky, exposed the alleged fraud behind the Prevezon case before his death while in Russian custody. In 2012 Congress passed the Magnitsky Act, giving the president authority to freeze assets and deny visas to Russians suspected to be complicit in Magnitsky's death. Browder has claimed Veselnitskaya directed Baker Hostetler to lobby members of Congress to strip Magnitsky's name from legislation and claimed that Veselnitskaya used Baker Hostetler to hire Fusion GPS for a smear campaign against Browder.
Now that Sen. Dianne Feinstein, D.-California, has released the transcript of Fusion GPS co-founder Glenn Simpson's August 2017 testimony before the Senate Judiciary Committee, we can fill in a few more details from Fusion GPS' perspective.
• Simpson said Baker Hostetler retained Fusion GPS in the spring of 2014 to provide litigation support for the firm's work in the Justice Department's action against Prevezon. Simpson testified that Fusion GPS reported directly to Baker Hostetler partner Mark Cymrot during its work on the Prevezon case.
“[U]nder the heading of litigation support was things related to discovery, locating witnesses, answer questions from the press, gathering documents, pretty much, you know, a conventional understanding of litigation support,” Simpson said. “Mr. Cymrot regularly instructed us in how we were to go about doing discovery and various other tasks.”
• Simpson told the Senate Judiciary Committee that Fusion GPS did not receive any direct payment from Veselnitskaya, whom he described as “a very smart and
ambitious lawyer” who “didn't seem to be a heavy hitter in the Kremlin world.” Simpson indicated that all payments to Fusion related to the Prevezon matter flowed through Baker Hostetler.
“[A]s the lawyer for Prevezon, Veselnitskaya would have arranged for Prevezon to pay Baker Hostetler which paid us,” Simpson said. “But, I mean, I don't think the money came from her. It came from Prevezon.”
• Simpson has a long relationship with Baker Hostetler, as the two worked together as long ago as 2009.
“[T]hey're very good lawyers and very conservative,” Simpson told the Senate Judiciary Committee in testimony made public on Tuesday. “I was confident in the quality of their work.”
Reached by telephone on Wednesday, Baker Hostetler partner John Moscow, who defended Prevezon before being disqualified from the case by a federal appeals court, said he was perplexed by the ongoing interest in the Prevezon case.
“You have a committee that's looking into Russian attacks on the American election system and they go off into Prevezon, and if you'll pardon my French, well what the f**k do those two things have to do with each other?” Moscow said. “That comes out of nowhere.”
Moscow also referred questions involving Fusion GPS to Baker Hostetler partner Marc Antonetti, who declined to comment. Cymrot did not respond to requests for comment.
The Washington Post has reported that no evidence has been found connecting Fusion GPS' work for Baker Hostetler and Fusion GPS' work on the Trump dossier. The Post reported that Fusion GPS was hired by Perkins Coie partner and longtime Democratic Party lawyer Marc Elias, who was working on behalf of the Clinton campaign and the Democratic National Committee.
Whether the Prevezon case and the Russia investigation are connected or not, some Baker Hostetler attorneys argue the government's investigation into Russian interference in American affairs can't end soon enough.
After the government settled the Prevezon case out of court last year, two lawyers at the firm penned an opinion for The Wall Street Journal in October 2017 urging Trump to pardon anyone suspected of involvement with alleged Russian efforts to interfere with the 2016 presidential race.
Baker Hostetler attorneys David Rivkin Jr. and Lee Casey argued that Trump should put special counsel Robert Mueller's Russian probe into the hands of a Republican-controlled Congress.
“Mr. Trump can end this madness by immediately issuing a blanket presidential pardon to anyone involved in supposed collusion with Russia or Russians during the 2016 presidential campaign, to anyone involved with Russian acquisition of an American uranium company during the Obama administration, and to anyone for any offense that has been investigated by Mr. Mueller's office,” Rivkin and Casey wrote. “Political weaponization of criminal law should give way to a politically accountable democratic process. Nefarious Russian activities, including possible interference in U.S. elections, can and should be investigated by Congress.”
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllA Look Back at High-Profile Hires in Big Law From Federal Government
4 minute read'Serious Disruptions'?: Federal Courts Brace for Government Shutdown Threat
3 minute readGovernment Attorneys Are Flooding the Job Market, But Is There Room in Big Law?
4 minute readTrending Stories
- 1Phila. Jury Awards $15M to Woman Who Slipped on Apartment Building Stairs
- 2Appellate Division Greenlights State Bar's Leadership Diversity Initiatives
- 3SEC’s Latest Enforcement Actions Fuel Demand for Big Law
- 4Sterlington Brings On Former Office Leader From Ashurst
- 5DOJ Takes on Largest NFT Scheme That Points to Larger Trend
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250