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Top U.S. prosecutor who investigated Trump allies resigns after Barr says president fired him

An unusual standoff between U.S. Attorney General William Barr and Manhattan's top federal prosecutor ended Saturday when the prosecutor agreed to leave his job with an assurance that investigations by the prosecutor's office into the president's allies would not be disturbed.

Trump distanced himself from U.S. Attorney Geoffrey S. Berman's removal

Geoffrey S. Berman, U.S. attorney for the Southern District of New York, arrives at his office in Manhattan on Saturday. (Kevin Hagen/The Associated Press)

An unusual standoff between U.S. Attorney General William Barr and Manhattan's top federal prosecutor ended Saturday when the prosecutor agreed to leave his job with an assurance that investigations by the prosecutor's office into the president's allies would not be disturbed.

U.S. Attorney Geoffrey S. Berman announced in an early evening statement that he would leave his post, ending increasingly nasty exchanges between Barr and Berman. President Donald Trump, meanwhile, had distanced himself from the dispute, telling reporters the decision "was all up to the attorney general."

The whirlwind chain of events began Friday night, when Barr announced that Berman, the U.S. attorney for the Southern District of New York, had resigned. Hours later, the prosecutor issued a statement denying that he had resigned and saying that his office's "investigations would move forward without delay or interruption."

On Saturday morning, he showed up to work, telling reporters, "I'm just here to do my job."

Extraordinary clash

The administration's push to cast aside Berman set up an extraordinary political and constitutional clash between the Justice Department and one of the nation's top districts, which has tried major mob and terrorism cases over the years and is investigating Trump's personal lawyer, Rudy Giuliani. It also deepened tensions between the department and congressional Democrats, who have accused Barr of politicizing the agency and acting more like Trump's personal lawyer than the country's chief law enforcement officer.

U.S. Attorney General William Barr, pictured on Monday, announced Friday night that Berman had resigned. He disputes the notion that Berman has to stay on the job to safeguard investigations. (Evan Vucci/The Associated Press)

Only days ago, allegations surfaced from former Trump national security adviser John Bolton that the president sought to interfere in an investigation by Berman's office into the state-owned Turkish bank in an effort to cut deals with Turkish President Recep Tayyip Erdogan.

In a letter made public by the Justice Department later Saturday, Barr said he expected to continue speaking with Berman about other possible positions within the department and was surprised by the statement he released.

"Unfortunately, with your statement of last night, you have chosen public spectacle over public service," Barr wrote, adding that the idea that Berman had to continue on the job to safeguard investigations was "false."

"Your statement also wrongly implies that your continued tenure in the office is necessary to ensure that cases now pending in the Southern District of New York are handled appropriately," he wrote. "This is obviously false."

Although Barr said Trump had removed Berman, the president told reporters: "That's all up to the attorney general. Attorney General Barr is working on that. That's his department, not my department." Trump added: "I wasn't involved."

No explanation offered

Barr offered no explanation for his action. The White House announced that Trump was nominating Securities and Exchange Commission chair Jay Clayton, a well-connected Wall Street lawyer with virtually no experience as a federal prosecutor, for the job.

Berman initially planned to remain in his job until a replacement was confirmed, but he changed his mind late Saturday after Barr said he would allow Berman's second in command, Deputy U.S. Attorney Audrey Strauss, to become acting U.S. attorney.

Berman said that led him to announce he would be leaving, "effective immediately."

Berman is seen at a news conference in New York City in October 2019. (Seth Wenig/The Associated Press)

People familiar with the matter in the Southern District could point to no clear reason for Berman's removal, though they noted his job had always seemed in jeopardy and Berman was never given the sense that it was secure.

Berman's office also took actions on some important cases without first informing Washington. But the various investigations are still ongoing and no charges seem imminent, said the people familiar with the matter, who weren't authorized to publicly discuss the matter and spoke to The Associated Press on condition of anonymity.

A senior department official said Clayton was planning to leave the administration, wanted to move back to New York and expressed interest in the Southern District position, and Barr thought he would be a good fit. The official was not authorized to publicly discuss internal department matters and spoke on condition of anonymity.

The White House announced Friday that U.S. President Donald Trump was nominating Securities and Exchange Commission chair Jay Clayton, a well-connected Wall Street lawyer with virtually no experience as a federal prosecutor, for Berman's job. (Jacquelyn Martin/The Associated Press)

The chair of the Senate judiciary committee, Republican Sen. Lindsey Graham of South Carolina, said he was unlikely to proceed with Clayton's nomination unless New York's senators, Democrats Chuck Schumer and Kirsten Gillibrand, gave their consent to the pick.

Schumer said the bid to oust Berman "reeks of potential corruption of the legal process," and Gillibrand said she would "not be complicit" in helping to fire a prosecutor investigating corruption. Both lawmakers called for Clayton to withdraw from consideration.

The chair of the House judiciary committee, Democratic Rep. Jerry Nadler of New York, said his committee was inviting Berman to testify this coming week. Schumer also called for the department's inspector general and Office of Professional Responsibility to investigate.

Berman's statement Friday night said he would stay on the job until a nominee was confirmed by the Senate. He challenged Barr's power to remove, given that Berman was appointed by federal judges, not by the president. Under federal law, a U.S. attorney who is appointed by District Court judges can serve "until the vacancy is filled."

But the Justice Department's Office of Legal Counsel argued in a 1979 opinion that the "power to remove a court-appointed U.S. attorney rests with the president." It says "the president is responsible for the conduct of a U.S. Attorney's office and therefore must have the power to remove one he believes is an unsuitable incumbent, regardless of who appointed him."

Barr said in his letter that the deputy U.S. attorney, Audrey Strauss, would take over the top job until a permanent successor is in place.

Prosecuted a number of Trump associates

Federal prosecutors in New York have overseen numerous prosecutions and investigations with ties to Trump in recent years. That includes an ongoing investigation into Giuliani's business dealings, including whether he failed to register as a foreign agent, according to people familiar with the matter. They were not authorized to discuss the investigation publicly and spoke on the condition of anonymity.

The office has also prosecuted a number of Trump associates, including Trump's former personal lawyer and fixer Michael Cohen, who served a prison sentence for lying to Congress and campaign finance crimes. Cohen was recently released from a federal prison in New York to continue serving his sentence on home confinement over coronavirus concerns.

Berman has overseen the prosecution of two Florida businessmen, Lev Parnas and Igor Fruman, who were associates of Giuliani and tied to the Ukraine impeachment investigation. The men were charged in October with federal campaign finance violations, including hiding the origin of a $325,000 US donation to a group supporting Trump's re-election.

Federal prosecutors in New York are investigating the business dealings of Trump's personal lawyer, Rudy Giuliani, pictured in August 2018. (Charles Krupa/The Associated Press)

A Republican who contributed to the president's election campaign, Berman worked for the same law firm as Giuliani and was put in his job by the Trump administration. But as U.S. attorney, he won over some skeptics after he went after Trump allies and had a direct hand in other investigations that have angered the president.

Berman was appointed by then-attorney general Jeff Sessions in January 2018, after Preet Bharara, then U.S. attorney in New York, was fired. Bharara had refused to resign along with dozens of other federal prosecutors appointed by former president Barack Obama.

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