New details about major Russian money-laundering investigation raise the stakes of Trump Tower meeting

The Russian lawyer who met with President Donald Trump's son, son-in-law, and campaign manager in June 2016 was representing a client under scrutiny in an ongoing criminal investigation related to a money-laundering case opened in 2013 by former US Attorney Preet Bharara.

Natalia Veselnitskaya, a Russian prosecutor with ties to the Kremlin, was representing the real-estate company Prevezon Holdings in a civil suit filed by the US government in the Southern District of New York when she visited Trump Tower on June 9, 2016.

Prevezon, which is owned by the son of a powerful Russian government official, was part of a parallel criminal investigation, according to court documents filed late last year. A person familiar with the matter told Business Insider that the criminal case was ongoing, corroborating a Bloomberg report published earlier Friday.

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Putting the Trump-Russia timeline into perspective
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Putting the Trump-Russia timeline into perspective
June 7: The 2016 primary season essentially concludes, with both Donald Trump and Hillary Clinton as the presumptive party nominees
June 9: Donald Trump Jr. — along with Jared Kushner and former campaign chair Paul Manafort — meets with Kremlin-connected lawyer Natalia Veselnitskaya.
June 9: Trump tweets about Clinton's missing 33,000 emails
July 18: Washington Post reports, on the first day of the GOP convention, that the Trump campaign changed the Republican platform to ensure that it didn't call for giving weapons to Ukraine to fight Russian and rebel forces
July 21: GOP convention concludes with Trump giving his speech accepting the Republican nomination
July 22: WikiLeaks releases stolen emails from the Democratic National Committee
July 25: Democratic convention begins
July 27: In final news conference of his 2016 campaign, Trump asks Russia: "If you're listening, I hope you're able to find the 30,000 emails that are missing"
August 4: Obama CIA Director John Brennan confronts his Russian counterpart about Russia's interference. "[I] told him if you go down this road, it's going to have serious consequences, not only for the bilateral relationship, but for our ability to work with Russia on any issue, because it is an assault on our democracy," Brennan said on "Meet the Press" yesterday.
October 4: WikiLeaks' Julian Assange says his organization will publish emails related to the 2016 campaign
October 7: WikiLeaks begins releasing Clinton Campaign Chair John Podesta's emails
October 7: Department of Homeland Security and the Director of National Intelligence release a statement directly saying that Russia is interfering in the 2016 election
October 31: "This WikiLeaks is like a treasure trove," Trump says on the campaign trail
November 4: "Boy, I love reading those WikiLeaks," Trump says from Ohio.
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The criminal investigation had not yet been disclosed when Attorney General Jeff Sessions fired Bharara in March, and there was no mention of it when the civil case was settled in May for $5.9 million.

Veselnitskaya has staunchly denied discussing the Prevezon case during the Trump Tower meeting. But the developments suggest the stakes for her client were higher than previously known.

In September 2016, Bharara had issued a grand-jury subpoena to Andrei Alekseevich Pavlov — a person "central to the Government's case against Prevezon," according to an emergency appeal filed at the time by Prevezon counsel Michael Mukasey, who wanted to depose him.

Citigroup, Deutsche Bank AG, UBS AG, and TD Bank were also issued grand-jury subpoenas, according to Bloomberg, which did not provide further details.

Grand-jury testimonies are a key stage in a federal criminal investigation. The subpoena issued by Bharara to Pavlov, and provided to Business Insider on Friday, ordered him to hand over documents related to a series of cases connected to the Prevezon investigation.

The subpoena also asked Pavlov to provide "all non-privileged correspondence" with Veselnitskaya and others relevant to the case.

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Donald Trump, Jr., son of US President Donald Trump, attends the 139th White House Easter Egg Roll on the South Lawn of the White House in Washington, DC, April 17, 2017. / AFP PHOTO / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
Donald Trump's son Donald Trump Jr. arrives to speak during the second session of the Republican National Convention in Cleveland, Ohio, U.S. July 19, 2016. REUTERS/Mike Segar
Donald Trump Jr. speaks about his father, Republican Presidential nominee Donald J. Trump, at the Republican National Convention in Cleveland, Ohio, U.S. July 19, 2016. REUTERS/Mario Anzuoni
Donald Trump Jr. pumps his fist after speaking about his father, Republican U.S. presidential nominee Donald Trump, during the second day at the Republican National Convention in Cleveland, Ohio, U.S. July 19, 2016. REUTERS/Mike Segar
Donald Trump Jr. speaks about his father, Republican Presidential nominee Donald J. Trump, at the Republican National Convention in Cleveland, Ohio, U.S. July 19, 2016. REUTERS/Jim Young
Donald Trump Jr. speaks about his father, Republican Presidential nominee Donald J. Trump at the Republican National Convention in Cleveland, Ohio, U.S. July 19, 2016. REUTERS/Mario Anzuoni
Donald Trump Jr. speaks about his father, Republican U.S. presidential nominee Donald Trump, during the second day of the Republican National Convention in Cleveland, Ohio, U.S. July 19, 2016. REUTERS/Mike Segar
Donald Trump Jr. speaks about his father, Republican U.S. presidential nominee Donald Trump, during the second day of the Republican National Convention in Cleveland, Ohio, U.S. July 19, 2016. REUTERS/Mike Segar
Donald Trump Jr. and his wife Vanessa attend the second day session at the Republican National Convention in Cleveland, Ohio, U.S. July 19, 2016. REUTERS/Jonathan Ernst
Donald Trump Jr. speaks about his father, Republican U.S. presidential nominee Donald Trump, during the second day of the Republican National Convention in Cleveland, Ohio, U.S. July 19, 2016. REUTERS/Mike Segar
Tiffany Trump. daughter of Republican U.S. presidential candidate Donald Trump, sits near her half-brother Donald Trump Jr. (C) during evening speeches at the Republican National Convention in Cleveland, Ohio, U.S. July 18, 2016. REUTERS/Jonathan Ernst
Republican U.S. presidential candidate Donald Trump (L) smiles as his son Donald Trump Jr. speaks for a moment at a campaign rally in St. Clairsville, Ohio June 28, 2016. REUTERS/Aaron Josefczyk
Donald Trump Jr, son of Republican U.S. presidential candidate Donald Trump, tours the arena at the Republican National Convention in Cleveland, Ohio, U.S. July 19, 2016. REUTERS/Mark Kauzlarich
Donald Trump Jr. (R) kicks balloons into the crowd as Republican U.S. presidential nominee Donald Trump and vice presidential nominee Governor Mike Pence stand with their families onstage at the end of the final session of the Republican National Convention in Cleveland, Ohio, U.S. July 21, 2016. REUTERS/Jonathan Ernst
Donald Trump Jr with his children arrives at Joint Base Andrews outside Washington, U.S., after Easter weekend in Palm Beach, Florida, April 16, 2017. REUTERS/Yuri Gripas
Donald Trump Jr. (R) makes remarks at a press conference while Joo Kim Tiah (C) the CEO of TA Global, the owner and developer of Trump International Hotel and Tower Vancouver, looks on with Eric Danziger the CEO of Trump Hotels (L) during the grand opening of the Trump International Hotel and Tower in Vancouver, British Columbia, Canada February 28, 2017. REUTERS/Nick Didlick
U.S. President Donald Trump and his son Donald Trump, Jr., watch children roll Easter Eggs at 139th annual White House Easter Egg Roll on the South Lawn of the White House in Washington, U.S., April 17, 2017. REUTERS/Joshua Roberts
Donald Trump, Jr., and Ivanka Trump arrive for the Presidential Inauguration of Trump at the U.S. Capitol in Washington, D.C., U.S., January 20, 2017. REUTERS/Saul Loeb/Pool
BOZEMAN, MT - APRIL 22: Donald Trump Jr. speaks at a rally for Republican Greg Gianforte as he campaigns for the Montana House of Representatives seat vacated by the appointment of Ryan Zinke to head the Department of Interior on April 22, 2017 in Bozeman, Montana. Gianforte is running against democrat Rob Quist in the special election to be held on May 25, 2017. (Photo by William Campbell/Corbis via Getty Images)
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The government's original civil complaint against Prevezon had laid out a complicated money trail stemming from the Russian Treasury, which prosecutors alleged participated in a $230 million tax-fraud scheme from which Prevezon benefited.

The civil case was abruptly settled three days before it was set to go to trial, which raised questions about whether the Justice Department had been subject to any pressure to settle.

People familiar with the case told Business Insider that there was no reason to believe the DOJ acted unethically.

A spokesman for the US attorney's office told Business Insider at the time that the settlement saved taxpayers the expense of a trial. The representative said the settlement was for "many multiples more" than the amount in fraud proceeds the government alleged were laundered through the New York real-estate purchases. He characterized it as a "very good outcome" for the government.

But Prevezon described the settlement as proof that the company had done nothing wrong, and a spokesman said the company's legal team considered the offer from prosecutors "too good to refuse."

House Judiciary Committee Democrats wrote in a letter to Attorney General Jeff Sessions earlier this year that they were "concerned" the Trump Tower meeting and the settlement "may be connected — and that the Department may have settled the case at a loss for the United States in order to obscure the underlying facts."

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SEE ALSO: House Democrats want to know why a major Russian money-laundering case was abruptly settled

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