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Javier E

Exclusive: Trump Media saved in 2022 by Russian-American under criminal investigation |... - 0 views

  • The concern surrounding the loans to Trump Media is that ES Family Trust may have been used to complete a transaction that Paxum itself could not.
  • Paxum Bank does not offer loans in the US as it lacks a US banking license and is not regulated by the FDIC. Postolnikov appears to have used the trust to loan money to help save Trump Media – and the Truth Social platform – because his bank itself could not furnish the loan.
  • Postolnikov, the nephew of Aleksandr Smirnov, an ally of the Russian president, Vladimir Putin, has not been charged with a crime. In response to an email to Postolnikov seeking comment, a lawyer in Dominica representing Paxum Bank warned of legal action for reporting the contents of the leaked documents.
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  • Postolnikov has been under increasing scrutiny in the criminal investigation into the Trump Media merger. Most recently, he has been listed on search warrant affidavits alongside several associates – one of whom was indicted last month for money laundering on top of earlier insider-trading charges.
  • Trump Media then received the loans from ES Family Trust: $2m on 23 December 2021, and $6m on 17 February 2022.
  • Part of the problem was that Trump Media struggled to get financing because traditional banks were reluctant to lend millions to Trump’s social media company in the wake of the January 6 Capitol attack, Wilkerson said.Trump Media eventually found some lenders, including ES Family Trust, but the sequence of events was curious.
  • S Family Trust was established on 18 May 2021, its creation papers show. Postolnikov’s “user” access to the account was “verified” on 30 November 2021 by a Paxum Bank manager in Dominica. The trust was funded for the first time on 2 December 2021
  • In late 2021, Trump Media was facing financial trouble after the original planned merger with Digital World was delayed indefinitely when the Securities and Exchange Commission opened an investigation into the merger, Trump Media’s since-ousted co-founder-turned-whistleblower Will Wilkerson recounted in an interview.
  • The loans came in the form of convertible promissory notes, meaning ES Family Trust would gain a major stake in Trump Media because it was offering the money in exchange for Trump Media agreeing to convert the loan principal into “shares of Company Stock”.
  • Oddly, the notes were never signed. But the investment in Trump Media proved to be huge: while precise figures can only be known by Trump Media, ES Family Trust’s stake in Trump Media is worth between $20m and $40m even after the sharp decline of the company’s share price in the wake of a poor earnings report
  • The ES Family Trust account also appears to have benefited Postolnikov personally. As the criminal investigation into the Trump Media deal intensified towards the end of last year, the trust recorded several transfers to Postolnikov with the subject line “Partial Loan Return”.In total, the documents showed that the trust transferred $4.8m to Postolnikov’s account, although $3m was inexplicably “reversed”.
  • The reason for the trust’s creation remains unknown. Aside from the money that went to Trump Media, the trust’s statements show the trust has directly invested money with only two other companies: $10.8m to Eleven Ventures LLC, a venture capital firm, and $1m to Wedbush Securities, a wealth management firm.
  • The creation papers also contained something notable: a declaration that, if the original trustee – a Paxum employee named Angel Pacheco – stepped down from the role, his successor would be a certain individual named Michael Shvartsman.
  • Last month, federal prosecutors charged Michael Shvartsman, a close associate of Postolnikov, with money laundering in a superseding indictment after previously charging him and two others in July with insider-trading Digital World shares. Shvartsman and his co-defendants pleaded not guilty.
  • nformant for the DHS, court filings show: in one March 2023 meeting with the informant and an associate, Shvartsman mentioned a friend who owned a bank in Dominica and made bridge loans to Trump Media.
  • “[Shvartsman’s associate] told the [confidential informant] that he does not think the SEC would be able to go after [Shvartsman] for his part in the investment but mentioned that [Shvartsman] essentially provided ‘bridge financing’ for the firm behind the Truth Social media platform,” it said.
  • The investigation into potential money laundering appears to have started after Wilkerson’s lawyers Phil Brewster, Stephen Bell and Patrick Mincey alerted the US attorney’s office in the southern district of New York to the ES Family Trust loans in October 2022.
  • Months later, in June 2023, the FBI expanded its investigation to work jointly with the Department of Homeland Security’s El Dorado taskforce, which specializes in money laundering, and its Illicit Proceeds and Foreign Corruption group, which targets corrupt foreign officials who use US entities to launder illicit funds.
Javier E

Opinion | What George Orwell Can Teach Us About Power and Language Today - The New York... - 0 views

  • “The word Fascism,” he writes, “has now no meaning except insofar as it signifies ‘something not desirable.’”
  • He adds other exhausted words, including democracy, freedom and patriotic — convenient terms for establishing righteousness, easily melting into self-righteousness.
  • The writer is George Orwell, in his celebrated 1946 essay “Politics and the English Language.” Orwell contended that language had become corrupt and debased in his time, but the survival of his examples into the present contradicts him, suggesting that not only the problem but the very examples may be timeless.
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  • I showed that passage to an intelligent, well-educated person much younger than I am. He understood Orwell’s intention, but he confessed that he found the parody, with its colorless polysyllables, easier to understand — he might have said “more accessible” — than the plain words of the original. It felt better to him than the original.
  • Dilution of meaning is familiar in a way that can make us feel comfortable, or even worse, comfortably righteous
  • The reliably available terms of disapproval and approval, genocide and patriotism, antisemitism and democracy, convey large scale and importance, but sometimes while avoiding the heavy cost of paying actual attention.
  • The more important the word, the more its meaning may be a matter of degree, from not much to quite a lot. The attainment of meaning requires work. The more important the meaning, the harder the work.
Javier E

Opinion | When the Right Ignores Its Sex Scandals - The New York Times - 0 views

  • Late last month, the Southern Baptist Convention settled a sex abuse lawsuit brought against a man named Paul Pressler for an undisclosed sum. The lawsuit was filed in 2017 and alleged that Pressler had raped a man named Duane Rollins for decades, with the rapes beginning when Rollins was only 14 years old.
  • Pressler is one of the most important American religious figures of the 20th century. He and his friend Paige Patterson, a former president of the Southern Baptist Convention, are two of the key architects of the so-called conservative resurgence within the S.B.C.
  • The conservative resurgence was a movement conceived in the 1960s and launched in the 1970s that sought to wrest control of the S.B.C. from more theologically liberal and moderate voices. It was a remarkable success. While many established denominations were liberalizing, the S.B.C. lurched to the right and exploded in growth, ultimately becoming the largest Protestant denomination in the United States.
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  • Pressler and Patterson were heroes within the movement. Patterson led Baptist seminaries and became president of the convention. Pressler was a Texas state judge and a former president of the Council for National Policy, a powerful conservative Christian activist organization.
  • Both men are now disgraced. In 2018, the board of Southwestern Baptist Theological Seminary fired Patterson after it found that he’d grossly mishandled rape allegations — including writing in an email that he wanted to meet alone with a woman who had reported being raped to “break her down” — at both Southwestern and another Baptist seminary.
  • Pressler’s story is in some ways eerily similar to that of Harvey Weinstein. Both were powerful men so brazen about their misconduct that it was an “open secret” in their respective worlds. Yet they were also so powerful that an army of enablers coalesced around them, protecting them from the consequences of their actions.
  • The suit set off a sprawling investigation into S.B.C. sexual misconduct by The Houston Chronicle and The San Antonio Express-News. Their report, called “Abuse of Faith,” documented hundreds of sex abuse cases in the S.B.C. and led to the denomination commissioning an independent investigation of its handling of abuse.
  • The American right exists in a news environment that reports misconduct on the left or in left-wing institutions loudly and with granular detail. When Weinstein fell and that fall prompted the cascade of revelations that created the #MeToo moment, the right was overrun with commentary on the larger lessons of the episode, including scathing indictments of a Hollywood culture
  • the coverage, or lack thereof, of Pressler’s fall also helps explain why we’re so very polarized as a nation.
  • the bottom line is clear: For decades, survivors of sex abuse “were ignored, disbelieved or met with the constant refrain that the S.B.C. could take no action due to its polity regarding church autonomy — even if it meant that convicted molesters continued in ministry with no notice or warning to their current church or congregation.”
  • the coverage on the right also fit a cherished conservative narrative: that liberal sexual values such as those in Hollywood invariably lead to abuse.
  • stories such as Pressler’s complicate this narrative immensely. If both the advocates and enemies of the sexual revolution have their Harvey Weinsteins — that is, if both progressive and conservative institutions can enable abuse — then all that partisan moral clarity starts to disappear
  • We’re all left with the disturbing and humbling reality that whatever our ideology or theology, it doesn’t make us good people. The allegedly virtuous “us” commits the same sins as the presumptively villainous “them.”
  • How does a typical conservative activist deal with this reality? By pretending it doesn’t exist.
  • Shortly after the Pressler settlement was announced, I looked for statements or commentary or articles by the conservative stalwarts who cover left-wing misconduct with such zeal. The silence was deafening.
  • I’m reminded of the minimal right-wing coverage of Fox News’s historic defamation settlement with Dominion Voting Systems, the largest known media defamation settlement of all time. I consistently meet conservatives who might know chapter and verse of any second-tier scandal in the “liberal media” but to this day have no clue that the right’s favorite news outlet broadcast some of the most expensive lies in history.
  • t’s more like a cultivated ignorance, in which news outlets and influencers and their audiences tacitly agree not to share facts that might complicate their partisan narratives.
  • the dynamic is even worse when stories of conservative abuse and misconduct break in the mainstream media. Conservative partisans can simply cry “media bias!” and rely on their followers to tune it all out. To those followers, a scandal isn’t real until people they trust say it’s real.
Javier E

Toxic Political Culture Has Even Some Slovaks Calling Country 'a Black Hole.' - The New... - 0 views

  • Of all the countries in Central and Eastern Europe that shook off communist rule in 1989, Slovakia has the highest proportion of citizens who view liberal democracy as a threat to their identity and values — 43 percent compared with 15 percent in the neighboring Czech Republic
  • Support for Russia has declined sharply since the start of the full-scale invasion of Ukraine in 2022, but 27 percent of Slovaks see it as key strategic partner, the highest level in the region.
  • many of its people — particularly those living outside big cities — feel left behind and resentful, Mr. Meseznikov said, and are “more vulnerable than elsewhere to conspiracy theories and narratives that liberal democracy is a menace.”
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  • The picture is much the same in many other formerly communist countrie
  • Slovakia’s politics are particularly poisonous, swamped by wild conspiracy theories and bile.
  • The foundations of this were laid in the 1990s when Mr. Meciar formed what is still one of the country’s two main political blocs: an alliance of right-wing nationalists, business cronies and anti-establishment leftists. All thrived on denouncing their centrist and liberal opponents as enemies willing to sell out the country’s interests to the West
  • “Meciar was a pioneer,” he said. “He was a typical representative of national populism with an authoritarian approach, and so is Fico.”
  • On the day Mr. Fico was shot, Parliament was meeting to endorse an overhaul of public television to purge what his governing party views as unfair bias in favor of political opponents, a reprise of efforts in the 1990s by Mr. Meciar to mute media critics.
  • The legislation was part of a raft of measures that the European Commission in February said risked doing “irreparable damage” to the rule of law. These include measures to limit corruption investigations and impose what critics denounced as Russian-style restrictions on nongovernmental organizations. The government opposes military aid to Ukraine and L.G.B.T.Q. rights, is often at odds with the European Union and, like Mr. Orban, favors friendly relations with Vladimir V. Putin’s Russia.
  • In the run-up to the election last September that returned Mr. Fico, a fixture of Slovak politics for more than two decades, to power, he and his allies took an increasingly hostile stance toward the United States and Ukraine, combined with sympathetic words for Russia.
  • Their statements often recalled a remark by Mr. Meciar, who, resisting demands in the 1990s that he must change his ways if Slovakia wanted to join the European Union, held up Russia as an alternative haven: “if they don’t want us in the West, we’ll go East.”
  • But, he added, “the frames that the society and its elites use to interpret the conflict remain the same: a choice between a Western path and being something of a bridge between the East and the West, as well as a choice between liberal democracy and illiberal, authoritarian government.”
  • Andrej Danko, the leader of the party, which is now part of the new coalition government formed by Mr. Fico after the September election, said that the attempt to assassinate Mr. Fico represented the “start of a political war” between the country’s two opposing camps.
  • Iveta Radicova, a sociologist opposed to Mr. Fico who is a former prime minister, said Slovakia’s woes were part of a wider crisis with roots that extend far beyond its early stumbles under Mr. Meciar.
  • “Many democracies are headed toward the black hole,” as countries from Hungary in the East to the Netherlands in the West succumb to the appeal of national populism, she said. “This shift is happening everywhere.”
Javier E

OpenAI Whistle-Blowers Describe Reckless and Secretive Culture - The New York Times - 0 views

  • A group of OpenAI insiders is blowing the whistle on what they say is a culture of recklessness and secrecy at the San Francisco artificial intelligence company, which is racing to build the most powerful A.I. systems ever created.
  • The group, which includes nine current and former OpenAI employees, has rallied in recent days around shared concerns that the company has not done enough to prevent its A.I. systems from becoming dangerous.
  • The members say OpenAI, which started as a nonprofit research lab and burst into public view with the 2022 release of ChatGPT, is putting a priority on profits and growth as it tries to build artificial general intelligence, or A.G.I., the industry term for a computer program capable of doing anything a human can.
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  • They also claim that OpenAI has used hardball tactics to prevent workers from voicing their concerns about the technology, including restrictive nondisparagement agreements that departing employees were asked to sign.
  • “OpenAI is really excited about building A.G.I., and they are recklessly racing to be the first there,” said Daniel Kokotajlo, a former researcher in OpenAI’s governance division and one of the group’s organizers.
  • Other members include William Saunders, a research engineer who left OpenAI in February, and three other former OpenAI employees: Carroll Wainwright, Jacob Hilton and Daniel Ziegler. Several current OpenAI employees endorsed the letter anonymously because they feared retaliation from the company,
  • At OpenAI, Mr. Kokotajlo saw that even though the company had safety protocols in place — including a joint effort with Microsoft known as the “deployment safety board,” which was supposed to review new models for major risks before they were publicly released — they rarely seemed to slow anything down.
  • So was the departure of Dr. Leike, who along with Dr. Sutskever had led OpenAI’s “superalignment” team, which focused on managing the risks of powerful A.I. models. In a series of public posts announcing his departure, Dr. Leike said he believed that “safety culture and processes have taken a back seat to shiny products.”
  • “When I signed up for OpenAI, I did not sign up for this attitude of ‘Let’s put things out into the world and see what happens and fix them afterward,’” Mr. Saunders said.
  • Mr. Kokotajlo, 31, joined OpenAI in 2022 as a governance researcher and was asked to forecast A.I. progress. He was not, to put it mildly, optimistic.In his previous job at an A.I. safety organization, he predicted that A.G.I. might arrive in 2050. But after seeing how quickly A.I. was improving, he shortened his timelines. Now he believes there is a 50 percent chance that A.G.I. will arrive by 2027 — in just three years.
  • He also believes that the probability that advanced A.I. will destroy or catastrophically harm humanity — a grim statistic often shortened to “p(doom)” in A.I. circles — is 70 percent.
  • Last month, two senior A.I. researchers — Ilya Sutskever and Jan Leike — left OpenAI under a cloud. Dr. Sutskever, who had been on OpenAI’s board and voted to fire Mr. Altman, had raised alarms about the potential risks of powerful A.I. systems. His departure was seen by some safety-minded employees as a setback.
  • Mr. Kokotajlo said, he became so worried that, last year, he told Mr. Altman that the company should “pivot to safety” and spend more time and resources guarding against A.I.’s risks rather than charging ahead to improve its models. He said that Mr. Altman had claimed to agree with him, but that nothing much changed.
  • In April, he quit. In an email to his team, he said he was leaving because he had “lost confidence that OpenAI will behave responsibly" as its systems approach human-level intelligence.
  • “The world isn’t ready, and we aren’t ready,” Mr. Kokotajlo wrote. “And I’m concerned we are rushing forward regardless and rationalizing our actions.”
  • On his way out, Mr. Kokotajlo refused to sign OpenAI’s standard paperwork for departing employees, which included a strict nondisparagement clause barring them from saying negative things about the company, or else risk having their vested equity taken away.
  • Many employees could lose out on millions of dollars if they refused to sign. Mr. Kokotajlo’s vested equity was worth roughly $1.7 million, he said, which amounted to the vast majority of his net worth, and he was prepared to forfeit all of it.
  • Mr. Altman said he was “genuinely embarrassed” not to have known about the agreements, and the company said it would remove nondisparagement clauses from its standard paperwork and release former employees from their agreements.)
  • In their open letter, Mr. Kokotajlo and the other former OpenAI employees call for an end to using nondisparagement and nondisclosure agreements at OpenAI and other A.I. companies.
  • “Broad confidentiality agreements block us from voicing our concerns, except to the very companies that may be failing to address these issues,”
  • They also call for A.I. companies to “support a culture of open criticism” and establish a reporting process for employees to anonymously raise safety-related concerns.
  • They have retained a pro bono lawyer, Lawrence Lessig, the prominent legal scholar and activist
  • Mr. Kokotajlo and his group are skeptical that self-regulation alone will be enough to prepare for a world with more powerful A.I. systems. So they are calling for lawmakers to regulate the industry, too.
  • “There needs to be some sort of democratically accountable, transparent governance structure in charge of this process," Mr. Kokotajlo said. “Instead of just a couple of different private companies racing with each other, and keeping it all secret.”
Javier E

Opinion | MAGA Turns Against the Constitution - The New York Times - 0 views

  • the problem of public ignorance and fake crises transcends politics. Profound pessimism about the state of the nation is empowering the radical, revolutionary politics that fuels extremists on the right and left.
  • now, for parts of MAGA, the Constitution itself is part of the crisis. If it doesn’t permit Trump to take control, then it must be swept aside.
  • Elements of this argument are now bubbling up across the reactionary, populist right
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  • Still others believe that the advent of civil rights laws created, in essence, a second Constitution entirely, one that privileges group identity over individual liberty.
  • Protestant Christian nationalists tend to have a higher regard for the American founding, but they believe it’s been corrupted. They claim that the 1787 Constitution is essentially dead, replaced by progressive power politics that have destroyed constitutional government.
  • Catholic post-liberals believe that liberal democracy itself is problematic. According to their critique, the Constitution’s emphasis on individual liberty “atomizes” American life and degrades the traditional institutions of church and family that sustain human flourishing.
  • The original Constitution and Bill of Rights, while a tremendous advance from the Articles of Confederation, suffered from a singular, near-fatal flaw. They protected Americans from federal tyranny, but they also left states free to oppress American citizens in the most horrific ways
  • if your ultimate aim is the destruction of your political enemies, then the Constitution does indeed stand in your way.
  • Right-wing constitutional critics do get one thing right: The 1787 Constitution is mostly gone, and America’s constitutional structure is substantially different from the way it was at the founding. But that’s a good thing
  • its guardrails against tyranny remain vital and relevant today.
  • Individual states ratified their own constitutions that often purported to protect individual liberty, at least for some citizens, but states were also often violently repressive and fundamentally authoritarian.
  • The criminal justice system could be its own special form of hell. Indigent criminal defendants lacked lawyers, prison conditions were often brutal at a level that would shock the modern conscience, and local law enforcement officers had no real constitutional constraints on their ability to search American citizens and seize their property.
  • Through much of American history, various American states protected slavery, enforced Jim Crow, suppressed voting rights, blocked free speech, and established state churches.
  • As a result, if you were traditionally part of the local ruling class — a white Protestant in the South, like me — you experienced much of American history as a kind of golden era of power and control.
  • The Civil War Amendments changed everything. The combination of the 13th, 14th, and 15th Amendments ended slavery once and for all, extended the reach of the Bill of Rights to protect against government actions at every level, and expanded voting rights.
  • But all of this took time. The end of Reconstruction and the South’s “massive resistance” to desegregation delayed the quest for justice.
  • decades of litigation, activism and political reform have yielded a reality in which contemporary Americans enjoy greater protection for the most fundamental civil liberties than any generation that came before.
  • And those who believe that the civil rights movement impaired individual liberty have to reckon with the truth that Americans enjoy greater freedom from both discrimination and censorship than they did before the movement began.
  • So why are parts of the right so discontent? The answer lies in the difference between power and liberty
  • One of the most important stories of the last century — from the moment the Supreme Court applied the First Amendment to state power in 1925, until the present day — is the way in which white Protestants lost power but gained liberty. Many millions are unhappy with the exchange.
  • Consider the state of the law a century ago. Until the expansion of the Bill of Rights (called “incorporation”) to apply to the states, if you controlled your state and wanted to destroy your enemies, you could oppress them to a remarkable degree. You could deprive them of free speech, you could deprive them of due process, you could force them to pray and read state-approved versions of the Bible.
  • The argument that the Constitution is failing is just as mistaken as the argument that the economy is failing, but it’s politically and culturally more dangerous
  • Powerful people often experience their power as a kind of freedom. A king can feel perfectly free to do what he wants, for example, but that’s not the same thing as liberty.
  • Looked at properly, liberty is the doctrine that defies power. It’s liberty that enables us to exercise our rights.
  • Think of the difference between power and liberty like this — power gives the powerful freedom of action. Liberty, by contrast, protects your freedom of action from the powerful.
  • At their core, right-wing attacks on the modern Constitution are an attack on liberty for the sake of power.
  • An entire class of Americans looks back at decades past and has no memory (or pretends to have no memory) of marginalization and oppression. They could do what they wanted, when they wanted and to whom they wanted.
  • Now they don’t have that same control
  • Muslims, Sikhs, Jews, Buddhists and atheists all approach the public square with the same liberties. Drag queens have the same free speech rights as pastors, and many Americans are livid as a result.
  • when a movement starts to believe that America is in a state of economic crisis, criminal chaos and constitutional collapse, then you can start to see the seeds for revolutionary violence and profound political instability. They believe we live in desperate times, and they turn to desperate measures.
  • “You shall know the truth, and the truth shall set you free.” So much American angst and anger right now is rooted in falsehoods. But the truth can indeed set us free from the rage that tempts American hearts toward tyranny.
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