A top prosecutor on Special Counsel Jack Smith's team reportedly discouraged the FBI from pursuing an investigation into the Clinton Foundation in 2016, citing negligible evidence.
This revelation comes despite the existence of multiple Suspicious Activity Reports (SARs) related to hundreds of thousands of dollars in foreign transactions. The prosecutor in question is Ray Hulser, the former chief of the DOJ's Public Integrity Section (PIN), who is currently involved in prosecuting former President Trump.
According to the recently released Durham report, three different FBI field offices - the New York Field Office, the Washington Field Office, and the Little Rock Field Office - opened investigations into possible criminal activity involving the Clinton Foundation in January 2016. The investigations were prompted by intelligence reports and financial transactions that suggested a flow of benefits scheme, where large monetary contributions were made to a non-profit organization controlled by a federal public official in exchange for favorable government action or influence.
The investigation out of Washington was initially opened as a preliminary investigation to gather additional information and corroborate allegations made in the book "Clinton Cash" by Peter Schweizer. However, the New York and Little Rock investigations were based on source reporting that identified foreign governments making or offering contributions to the Clinton Foundation in exchange for preferential treatment.
Given the multiple investigations and the fact that they were occurring in an election year with Hillary Clinton as a declared candidate for President, coordination meetings were held between the field offices, FBI Headquarters, and relevant U.S. Attorney's offices. One such meeting took place on February 1, 2016, and included several FBI officials, as well as Criminal Division Assistant Attorney General Leslie Caldwell and Ray Hulser, who was the Public Integrity Section chief at the time.
During his interview with Durham, Hulser expressed dissatisfaction with the FBI briefing on the Clinton Foundation, stating that it was poorly presented and lacked sufficient predication for at least one of the investigations. He downplayed the information provided by the New York Field Office and referred to the amount involved in the financial reporting as "de minimis."
However, the Durham report reveals that the financial reporting described multiple funds transfers, some of which involved international bank accounts suspected of facilitating bribery or gratuity violations. These transactions occurred between 2012 and 2014 and totaled hundreds of thousands of dollars. While the report does not explicitly mention Suspicious Activity Reports, a source familiar with the matter confirmed that multiple SARs were filed related to the Clinton Foundation during that time.
Banks are required to file SARs, but it is up to the Justice Department to determine if any criminality is involved. Given the prominence of the Clinton name and the Clinton Foundation, it is likely that the foundation or Clinton-related accounts had a "PEP" designation within financial institutions. PEP stands for politically exposed person, indicating that the individual, due to their position or relationships, may be more susceptible to bribery or corruption.
The Hunter Biden federal criminal investigation was also predicated, in part, on SARs related to funds from China and other foreign nations. These SARs have been reviewed as part of the House impeachment inquiry against President Biden.
During the February 2016 meeting, Hulser "declined prosecution" of the Clinton Foundation on behalf of the DOJ's Public Integrity Section. However, he made it clear that his decision was not binding on the U.S. Attorneys' Offices or FBI field divisions. Another individual present for the meeting described the Justice Department's reaction to the Clinton Foundation briefing as "hostile."
Former federal prosecutor and Fox News contributor Andy McCarthy believes that there are indications that the Obama Justice Department intentionally slow-walked and discouraged the Clinton Foundation investigation. McCarthy suggests that the decision to appoint a special counsel, such as Jack Smith, was politically motivated and aimed at creating distance between the attorney general and the president regarding charges against Trump.
Former President Trump has pleaded not guilty to all charges stemming from Smith's investigation, which includes matters related to the January 6th Capitol riot and alleged election interference in 2020.
The Clinton Foundation probes faced further obstacles in February 2016 when then-Deputy FBI Director Andrew McCabe initially directed the field offices to close their cases. However, following objections, McCabe agreed to reconsider the final disposition of the cases. McCabe reportedly stated that the DOJ believed there was nothing substantial to pursue and questioned why the investigation was even being conducted.
By May 2016, then-FBI Director James Comey directed the FBI's New York Field Office to cease the Clinton Foundation investigation due to an undisclosed counterintelligence concern. The Durham report does not provide further details on this counterintelligence issue.
In August 2016, a meeting was held to consolidate the Washington and Little Rock investigations into the New York investigation. However, U.S. attorneys' offices declined to issue subpoenas during the meeting.
The Durham report highlights the contrast between the handling of the Clinton Foundation investigations and the Trump-Russia probe, known as "Crossfire Hurricane." The Clinton Foundation investigations were opened as preliminary investigations based on unvetted hearsay information, while the Crossfire Hurricane investigation was immediately opened as a full investigation despite similar reliance on hearsay information.
Special Counsel Robert Mueller's investigation into alleged Trump-Russia collusion did not find evidence of criminal conspiracy or coordination between the Trump campaign and Russian officials during the 2016 presidential election.
The Durham report also reveals that the FBI "failed to act" on warning signs that the bureau was being targeted by a Hillary Clinton-led effort to manipulate or influence the law enforcement process for political purposes against Trump.
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