Powerful US attorney in New York stepping down, Barr says

Washington (CNN)Geoffrey Berman, the powerful US attorney for the Southern District of New York who has investigated a number of powerful associates with connections to President Donald Trump, was forced out of his position Friday, two sources tell CNN.

In a late night press release announcing Berman’s departure, the Justice Department said Trump intends to nominate Jay Clayton, the chairman of the Securities and Exchange Commission, who has never been a prosecutor.

A Justice Department official told CNN that Berman was offered other positions at Justice, including the head of the civil division, where assistant Attorney General Jody Hunt abruptly announced his departure this week. Berman declined.

A second source with knowledge of the matter said Berman was asked to resign and refused.

Berman’s unexpected exit is likely to draw scrutiny inside the US attorney’s office and among career prosecutors. He had been the US attorney for Manhattan since 2018, and under his leadership, his office prosecuted Trump’s former attorney Michael Cohen, is investigating top Trump confidante Rudy Giuliani and indicted the former New York mayor’s associates Lev Parnas and Igor Fruman.

Tensions between the New York and Washington offices have grown with Berman and Barr butting heads over the handling of some cases, including the indictment of Turkish bank Halkbank.

Last fall, Justice Department officials discussed replacing Berman with Ed O’Callaghan, a senior official, but then prosecutors indicted the Giuliani associates, a move that appeared to extend Berman’s tenure.

The timing of the move, announced shortly before 10 p.m. ET, immediately raised questions about the circumstances regarding Berman’s departure. Barr was in New York on Friday, according to the Justice Department. It’s not clear whether he met with Berman, and the Justice Department declined to say whether Berman was asked to resign.

Preet Bharara, who was fired by Trump as US attorney for the Southern District shortly after Trump took office in 2017, tweeted Friday night, “Why does a president get rid of his own hand-picked US Attorney in SDNY on a Friday night, less than 5 months before the election?”

Before Clayton was nominated to the SEC post by Trump, he was a corporate lawyer at Sullivan & Cromwell. If confirmed, Clayton would be the first non-prosecutor to lead SDNY.

Barr and Clayton have known each other for years, the Justice official said, and Clayton was planning to leave to go back to NY. He expressed interest in the SDNY job, the Justice official said, and Barr agreed.

Barr said Trump has appointed Craig Carpenito, currently the United States Attorney for the District of New Jersey, to serve as the acting United States attorney for the Southern District of New York until Clayton is confirmed. Carpentio will begin the role on July 3.

This story is breaking and will be updated.

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