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
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
© 2025 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 All'You Became a Corrupt Politician': Judge Gives Prison Time to Former Sen. Robert Menendez for Corruption Conviction
5 minute readSidley Adds Ex-DOJ Criminal Division Deputy Leader, Paul Hastings Adds REIT Partner, in Latest DC Hiring
3 minute read‘High Demand’: Former Trump Admin Lawyers Leverage Connections for Big Law Work, Jobs
4 minute readTrending Stories
- 1Perkins Coie Hires Anthony Shannon as Chief People Officer
- 2Who Is Nicholas J. Ganjei? His Rise to Top Lawyer
- 3Delaware Supreme Court Names Civil Litigator to Serve as New Chief Disciplinary Counsel
- 4Inside Track: Why Relentless Self-Promoters Need Not Apply for GC Posts
- 5Fresh lawsuit hits Oregon city at the heart of Supreme Court ruling on homeless encampments
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
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