Alex van der Zwaan, centre, leaves Federal District Court in Washington after a judge sentenced him to 30 days in prison. AP Photo/Pablo Martinez Monsivais
Alex van der Zwaan, centre, leaves Federal District Court in Washington after a judge sentenced him to 30 days in prison. AP Photo/Pablo Martinez Monsivais
Alex van der Zwaan, centre, leaves Federal District Court in Washington after a judge sentenced him to 30 days in prison. AP Photo/Pablo Martinez Monsivais
Alex van der Zwaan, centre, leaves Federal District Court in Washington after a judge sentenced him to 30 days in prison. AP Photo/Pablo Martinez Monsivais

Mueller investigation: lawyer jailed for lying to FBI


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A Dutch lawyer who lied to federal agents has become the first person to be jailed as part of the ongoing investigation into Trump campaign links to Russia.

Alex van der Zwaan, who is the son-in-law of one of Russia’s richest men, was sentenced on Tuesday to 30 days in prison and ordered to pay a $20,000 fine.

Although he was not implicated in Moscow's effort to sway the election outcome, the case reveals clues to one of the investigation’s key targets: a Ukrainian businessman with ties to Russian intelligence who is linked to former senior Trump aide.

Mr van der Zwaan had faced up to six months in prison under sentencing guidelines and his attorneys had pushed for him to pay a fine and leave the country.

However, district judge Amy Jackson said a prison sentence was necessary to deter others from lying in a case of international significance.

“These were not mistakes. These were lies,” she told the lawyer as he stood in her Washington courthouse.

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His downfall stemmed from misleading statements he made about his relationship with Rick Gates, a former Trump aide.

In 2012, Mr van der Zwaan was employed by an international law firm when he was assigned to work with Paul Manafort, who later became Mr Trump’s former campaign chairman, as well as Mr Gates, while they were operating as political consultants in Ukraine. Court documents reveal a third figure, known only as "Person A".

The young lawyer’s role was to help prepare a report that would protect Viktor Yanukovych, the then pro-Russian president, from international criticism over the jailing of his bitter rival Yulia Tymoshenko.

He became caught up in Robert Mueller's investigation into Russian meddling when his firm, Skadden Arps, began to co-operate with investigations into Mr Manafort and Mr Gates' contact with Russians and Ukrainians during the 2016 election.

During his first, voluntary meeting with investigators he said he had not been in touch with Mr Gates since an innocuous text message in August 2016. And he said he had not communicated with Person A – identified by some news media as Konstantin Kilimnik, a Ukrainian businessman linked to Russian intelligence – since an exchange about his family in 2014.

Prosecutors instead claimed van der Zwaan “deleted and otherwise did not produce emails sought by the special counsel’s office” and made a false statement about when he was last in contact with Mr Gates and Person A.

Van der Zwaan admitted he lied as part of a plea bargain in February.

He apologised during the 40-minute hearing on Tuesday.

“Your honour, what I did was wrong. I apologise to the court. I apologise to my wife,” he said.

He wore a smart navy suit with a white pocket square and attended court with about eight lawyers and supporters including his father.

His legal team asked for leniency for a man who had lost his job so that he might return home to London, where his wife is expecting their child.

“He is literally in limbo,” said William Schwartz, his lawyer.

The 33-year-old is married to the daughter of German Khan, who was born in Ukraine before amassing an estimated $10 billion fortune in oil and banking, according to Forbes.

His wedding to Eva Khan was featured in Russian Tatler.

His wealth and connections made little impression on judge Ms Jackson.

“This is not something that happened to him. This is something he did,” she said. “He put his personal interest ahead of the interest of justice.”

Opponents of Mr Trump hope that the custodial sentence will be the first of many leading all the way to the White House. It also offers a guide to what other figures accused of lying to investigators might expect.

So far 19 people have been charged by Mr Mueller in connection with his investigation.

They include Michael Flynn, the former US National Security Adviser, who has pleaded guilty to lying to the FBI about his meetings with Sergei Kislyak, Russia’s ambassador to Washington.

George Papadopoulos, a former foreign policy adviser to the Trump campaign, has also admitted lying to federal investigators.

Meanwhile, The Washington Post has reported that Mr Mueller told the president's attorneys last month that he was continuing to investigate the president but did not consider him a criminal target in the Russia investigation "at this point".

In private negotiations in early March about a possible presidential interview, Mr Mueller described Mr Trump as a subject of his investigation into alleged Russian meddling in the 2016 US presidential election, according to the newspaper.

It also said that the special counsel told Mr Trump’s lawyers that he was preparing a report about the Republican president’s actions while in office and potential obstruction of justice.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”