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Prosecutors file motion to dismiss Jan. 6, documents case against Trump

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Prosecutors file motion to dismiss Jan. 6, documents case against Trump

Special counsel Jack Smith led the Jan. 6 case against Donald Trump. That case is now all but dead.

Saul Loeb/AFP via Getty Images


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Saul Loeb/AFP via Getty Images

Federal prosecutors have filed a motion to dismiss the Jan. 6 and Mar-a-Lago documents cases against Donald Trump.

The move was widely expected. Just a day after the election, Smith began to unwind the federal cases against Trump: the first for clinging to power in 2020, events that resulted in the storming of the U.S. Capitol; the second for hoarding classified documents and obstructing FBI efforts to retrieve them.

The “Department’s position is that the Constitution requires that this case be dismissed before the defendant is inaugurated,” special counsel Jack Smith said in the filing related to the Jan. 6 case. “And although the Constitution requires dismissal in this context, consistent with the temporary nature of the immunity afforded a sitting President, it does not require dismissal with prejudice.”

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In a separate filing, Smith also moved to dismiss the documents case against Trump. A Trump-appointed federal judge had previously dismissed the case against finding the prosecutor was unconstitutionally appointed. The Justice Department had appealed that ruling, but that decision now stands.

Smith said, however, the case against Walter de Nauta and Carlos de Oliviera, the two co-defendants, will continue. The federal judge’s order had covered the two men, too.

“The appeal concerning the other two defendants will continue because, unlike defendant Trump, no principle of temporary immunity applies to them,” he said in the filing.

Monday’s filing is in line with longstanding Justice Department policy that says a sitting president cannot be indicted or tried on criminal charges because it would violate the Constitution and interfere with the working of the executive branch.

In a statement, Steven Cheung, Trump’s spokesman, said the Justice Department’s move “ends the unconstitutional federal cases against President Trump, and is a major victory for the rule of law.”

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Over the summer, the U.S. Supreme Court said the Constitution gave the president broad immunity, putting the cases against Trump in peril.

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US special counsel Jack Smith moves to drop criminal cases against Donald Trump

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US special counsel Jack Smith moves to drop criminal cases against Donald Trump

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The US Department of Justice is seeking to drop two federal criminal cases against Donald Trump, abandoning its historic attempts to prosecute the former president after voters sent him back to the White House for another term.

Special counsel Jack Smith, who was appointed to oversee DoJ investigations involving the former president, said in a court filing in Washington on Monday that a case accusing Trump of interfering with the 2020 election must be dismissed before his inauguration in January. He cited a long-standing DoJ policy against indicting and prosecuting a sitting president.

“That prohibition is categorical and does not turn on the gravity of the crimes charged, the strength of the government’s proof, or the merits of the prosecution, which the government stands fully behind,” Smith wrote.

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Smith’s office cited the same policy in a filing with a US appellate court seeking to end proceedings against Trump in a separate case over the retention of classified documents. That case had already been dismissed by a federal judge, and Smith had appealed against the dismissal.

Trump wrote on X: “These cases, like all of the other cases I have been forced to go through, are empty and lawless, and should never have been brought.”

He added: “It was a political hijacking, and a low point in the History of our Country that such a thing could have happened, and yet, I persevered, against all odds, and WON.”

The filing in the election interference case seeks dismissal “without prejudice”, meaning the case may be refiled at a later stage. 

For now, the requests will sound the death knell for what has been an unprecedented effort to prosecute an ex-president, in two separate cases, for alleged crimes at the core of America’s democratic system of government.

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The DoJ indictment that last year accused Trump of mishandling classified documents made him the first former US president to face federal criminal charges. It was quickly followed by the election interference case, which focused on the events between the 2020 election and January 6 2021, when a mob of Trump supporters stormed the Capitol.

Some Democrats had hoped the legal challenges — which also included two separate criminal cases in state courts — would dent Trump’s popularity leading up to the 2024 polls, but in the end they only galvanised his base.

Trump has pledged to seek retribution from individuals he believes have been wronged, and has called for the prosecution of his political opponents, including current vice-president Kamala Harris.

Since his appointment as special counsel in November 2022, Smith faced a tight timeline to obtain indictments against Trump ahead of the 2024 election. He also became a target of fierce attacks by Trump’s allies, who have accused the DoJ of unleashing a political witch hunt against the former president — claims strenuously denied by the justice department.

Only one of Trump’s criminal cases ultimately made it to trial: a New York state court proceeding over alleged “hush money” payments to a porn actor, in which he was convicted on all 34 counts. Trump’s sentencing was postponed repeatedly, however, and last week a court said the delay would be extended indefinitely as Trump returns to the White House.

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Smith was one of several special counsels appointed by US attorney-general Merrick Garland to oversee politically sensitive investigations. One was named to examine President Joe Biden’s handling of classified documents, while another was tasked with overseeing cases against Biden’s son Hunter. Joe Biden was never prosecuted and Hunter was charged in two cases.

Smith, a career prosecutor whose past jobs have included working at a special court at The Hague hearing Kosovo war crimes cases, acknowledged the unprecedented nature of his work in the filings on Monday.

“The government’s position on the merits of the defendant’s prosecution has not changed. But the circumstances have,” he added, citing Trump’s win in the presidential election.

Smith’s requests cite two DoJ opinions issued in 1973 and 2000, which held that prosecuting a sitting president would “unduly interfere” with the presidency.

While the classified documents appeal would be dropped against Trump, Smith noted that it would continue against two co-defendants, Trump aide Walt Nauta and a property manager at Trump’s Mar-a-Lago estate. Both have pleaded not guilty.

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Macy’s says employee hid more than $132mn in delivery expenses

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Macy’s says employee hid more than 2mn in delivery expenses

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Macy’s has delayed the release of its third-quarter results after the US retailer revealed that an employee had hidden more than $132mn of delivery expenses since late 2021.

The group said in a securities filing on Monday that an employee had “intentionally made erroneous accounting accrual entries” to hide $132mn to $154mn of cumulative delivery expenses between its fourth quarter of 2021 and the quarter ended November 2 2024.

It said it had launched an independent investigation. There was “no indication” of any adverse effect on its cash management or payments.

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The individual was no longer at the company, Macy’s added.

Macy’s was due to report results on Tuesday, but, owing to the expenses issue, instead released preliminary results on Monday morning. Its third-quarter sales fell slightly more than analysts expected to $7.74bn in the three months ending on November 2.

Macy’s shares were down more than 3 per cent in pre-market trading.

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What Trump's pick for Treasury secretary could mean for global markets

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What Trump's pick for Treasury secretary could mean for global markets

Scott Bessent speaks at the National Conservative Conference in Washington D.C., Wednesday, July 10, 2024.

Dominic Gwinn | Afp | Getty Images

Financial markets on Monday welcomed President-elect Donald Trump’s pick for U.S. Treasury secretary, with currencies across the globe rallying on hopes that hedge fund manager Scott Bessent can take some of the sting out of Trump’s more extreme economic views.

The U.S. dollar index, which measures the greenback against six major currencies, fell 0.5% to 107.01 on Monday, paring some of its recent gains after a remarkable rally since late September.

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The euro was a top performer, rising 0.7% to trade at $1.049 at 12:50 p.m. London time. The Japanese yen, pound sterling and Antipodean currencies were also trading higher against the dollar.

The moves come as global investors reacted to news from late Friday that Trump signaled his intention to nominate Bessent to lead one of the most influential roles in U.S. government. The Treasury Department has broad oversight of tax policy, public debt and international finance.

Strategists regard Bessent, the founder of Connecticut-based investment firm Key Square Group, as a “safe pair of hands,” a well-known market participant and a more moderate pick compared to some of his rivals.

It is expected the 62-year-old will push for Trump to consider a softer approach to tariffs, strip back regulation to boost growth and target a reduction in deficit spending.

“Trump’s pick for Treasury Secretary has swelled investor sentiment further with stocks on Wall Street looking set for another flurry of gains,” Susannah Streeter, head of money and markets at Hargreaves Lansdown, said in a research note.

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“Hedge fund manager Scott Bessent’s long career of navigating the twists and turns of markets, has boosted confidence about incoming pro-business policies and lifted hopes that any tariffs would be highly targeted and potentially less inflationary in nature,” she added.

A ‘layered’ approach to tariffs

Trump’s historic election victory earlier this month ratcheted up concerns about the prospect for higher prices, prompting strategists to rethink the outlook for global bond yields and currencies.

It is widely thought that Trump’s pledge to introduce tax cuts and steep tariffs could boost U.S. economic growth — but widen the fiscal deficit and refuel inflation.

An employee sorts navel oranges at a fruit processing factory of Nongfu Spring on November 23, 2024 in Xinfeng County, Ganzhou City, Jiangxi Province of China.

China News Service | China News Service | Getty Images

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In an effort to raise revenues, Trump has suggested he could impose a blanket 20% tariff on all goods imported into the U.S., with a tariff of up to 60% for Chinese products and one as high as 2,000% on vehicles built in Mexico.

While many economists are skeptical about the effectiveness of tariffs, Bessent has defended them as “a useful tool for achieving the president’s foreign policy objectives.” He has also, however, called for tariffs to be “layered in” gradually.

“News that Scott Bessent is the top choice for incoming US Treasury Minister has raised the possibility that some ‘Trump trades’ may be watered down,” analysts at Rabobank said in a research note.

“Bessent, a successful macro hedge fund manager, is associated with a preference to reduce the US budget deficit to 3% of GDP, which clearly suggests less appetite for deficit spending,” they added.

Bessent, who once worked for billionaire philanthropist and investor George Soros, has advocated for a so-called “3-3-3” target, which refers to a plan to cut the deficit to 3% by 2028, achieve 3% economic growth and add 3 million new barrels of oil per day.

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Business as usual?

Some strategists expect Trump’s Treasury chief pick to be welcomed as good news for Asian currencies over the coming months.

“The market view that Bessent is a ‘safe hands’ candidate, may see some relief rally in Treasuries from the open on Monday, as the risk of a more unorthodox candidate is priced out,” Scott Spratt, strategist at Societe Generale Corporate and Investment Banking, said in a research note.

“We suspect his view that tariffs should be ‘layered’ and that initial levels being discussed are ‘maximalist’ positions, should also provide an opening boost to Asia FX and [the Chinese yuan],” he added.

U.S. President-elect Donald Trump prepares to exit after viewing the launch of the sixth test flight of the SpaceX Starship rocket in Brownsville, Texas, U.S., November 19, 2024. 

Brandon Bell | Via Reuters

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Tesla CEO Elon Musk suggested that nominating Bessent as Treasury chief would be a disappointment. In a social media post via X on Nov. 16, Musk described Bessent as a “business-as-usual choice,” adding that “business-as-usual is driving America bankrupt.”

Bessent has also been an advocate of Trump’s embrace of the crypto industry, which means he could soon become the first Treasury chief openly in favor of crypto assets. Trump has previously pledged to make America “the crypto capital of the planet.”

Bitcoin breached the $99,000 level for the first time last week as investors continue to price in Trump’s return to the White House.

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