March - 2009

March 6, 2009 – From Russia with Money, Hillary Clinton, the Russian Reset, and Cronyism

On March 6, 2009 in Geneva, U.S. Secretary of State Hillary Clinton presents Russian Foreign Minister Sergei Lavrov with a red “reset” button. (Credit: public domain)

• A major technology transfer component of the Russian reset overseen by Hillary Clinton substantially enhanced the Russian military’s technological capabilities, according to both the FBI and the U.S. Army.

• Russian government officials and American corporations participated in the technology transfer project overseen by Hillary Clinton’s State Department that funneled tens of millions of dollars to the Clinton

• A Putin-­‐‑connected Russian government fund transferred $35 million to a small company with Hillary Clinton’s campaign chairman John Podesta on its executive board, which included senior Russian officials.

• John Podesta failed to reveal, as required by law on his federal financial disclosures, his membership on the board of this offshore company.

• Podesta also headed up a think tank which wrote favorably about the Russian reset while apparently  receiving millions from Kremlin-­‐‑linked Russian oligarchs via an offshore LLC.

(The Government Accountability Institute, 8/2016)

March 2009 – 2014: The Clintons and the Clinton Foundation benefit after Hillary Clinton helps Swiss bank UBS

Clinton appears with Swiss Foreign Minister Micheline Calmy-Rey, (left), at the State Department on July 31, 2009, announcing a settlement in a legal case involving UBS. (Credit: J. Scott Applewhite / The Associated Press)

“In 2007, a whistleblower gave information about thousands of US citizens who were putting money in Swiss mega-bank UBS to avoid paying US taxes. The IRS [Internal Revenue Service] sues UBS to learn the identities of US citizens with secret bank accounts. UBS faces either complying and violating strict Swiss banking secrecy laws, or refusing and facing criminal charges in a US court.

The US government decides to treat this as a political matter with the Swiss government instead of just a legal problem with the bank. In March 2009, Clinton meets with Swiss officials and brings up a number of unrelated issues where the US wants help from Switzerland, such as using Swiss neutrality to help release a US citizen imprisoned in Iran. The Swiss help with these other issues, and appear to get concessions in the UBS case in return.

On July 31, 2009, Clinton announces a legal settlement: the US government dismisses the IRS lawsuit, and UBS turns over data on only 4,450 accounts instead of the 52,000 accounts worth $18 billion wanted by the IRS.

Some US politicians criticize the deal. For instance, Senator Carl Levin (D), says, “It is disappointing that the US government went along.” A senior IRS official will later complain that many US citizens escaped scrutiny due to the deal.

Former president Bill Clinton and UBS Wealth Management Chief Executive, Bob McCann, took the stage at a Clinton Global Initiative event in 2011. (Credit: Brian Kersey /UPI/ Landov)

UBS then helps the Clintons in various ways:

  • Total UBS donations to the Clinton Foundation grow from less than $60,000 through 2008 to about $600,000 by the end of 2014.
  • Starting in early 2010, UBS works with the foundation to launch entrepreneurship and inner-city loan programs, and lends the programs $32 million. In 2012, the foundation will tout these programs as one of their major accomplishments.
  • UBS gives the foundation $100,000 for a charity golf tournament.
  • In 2011, UBS pays Bill Clinton $350,000 for discussing the economy at a UBS event.
  • Also in 2011, UBS pays Bill Clinton $1.5 million to take part in eleven question and answer sessions with a UBS official, making UBS his largest corporate source of speech income.  

(Read more: Thompson Timeline)  (Wall Street Journal, 7/30/2015),  (The Atlantic, 7/31/2015)