I.R.S. NEXT President Trump andhis foundation may face biggerproblems in an Internal RevenueService inquiry. PAGE A21

VOL. CLXVII . . . No. 57,994 © 2018 The New York Times Company NEW YORK, FRIDAY, JUNE 15, 2018

C M Y K Nxxx,2018-06-15,A,001,Bs-4C,E2

U(D54G1D)y+?![!,!#!:

Facing a financial crisis, Prime MinisterMahathir Mohamad has no time forapologies or mincing words. PAGE A8

INTERNATIONAL A4-10

Leading Malaysia Again at 92

Protests against conservative speakersat colleges have prompted new policiesthat penalize disruptions, in the name offree speech. PAGE A11

NATIONAL A11-17

Keeping a Lid on Protests

Gamblers flooded the Borgata andMonmouth Park as legal sports wager-ing began in New Jersey. PAGE A18

NEW YORK A18-23

Parting With Money, Legally

Utilities say they must be shielded fromliability in disasters or for negligence.Critics say that puts the burden onconsumers, not investors. PAGE B1

BUSINESS DAY B1-7

Who Pays if Things Go Wrong?

Temporary stands in Yekaterinburg,Russia, are either an architecturalmarvel or a reason to worry aboutwindy days and bouncy fans. PAGE B10

SPORTSFRIDAY B8-14

Seats for the Stouthearted

WASHINGTON — The JusticeDepartment’s inspector generalon Thursday painted a harsh por-trait of the F.B.I. during the 2016presidential election, describing adestructive culture in whichJames B. Comey, the former direc-tor, was “insubordinate,” seniorofficials privately bashed DonaldJ. Trump and agents came to dis-trust prosecutors.

The 500-page report criticizedMr. Comey for breaking with long-standing policy and publicly dis-cussing — in a news conferenceand a pair of letters in the middleof the campaign — an investiga-tion into Hillary Clinton’s use of aprivate email server in handlingclassified information. The reportwas a firm rebuke of those actions,which Mr. Comey has tried formonths to defend.

Nevertheless, the inspectorgeneral, Michael E. Horowitz, didnot challenge the conclusion thatMrs. Clinton should not be pros-ecuted. That investigation loomedover most of the presidential cam-paign, and Mr. Horowitz and hisinvestigators uncovered no proofthat political opinions at the F.B.I.influenced its outcome.

“We found no evidence that theconclusions by department pros-ecutors were affected by bias orother improper considerations,”he wrote. “Rather, we concludedthat they were based on the pros-ecutor’s assessment of facts, thelaw and past department prac-tice.”

But the report, begun in re-sponse to a chorus of requestsfrom Congress and the public, wasfar from an exoneration. Mr. Horo-witz was unsparing in his criti-cism of Mr. Comey and referredfive F.B.I. employees for possiblediscipline over pro-Clinton or anti-Trump commentary in electronicmessages. He said agents werefar too cozy with journalists. Andhe described a breakdown in thechain of command, calling it “ex-traordinary” that the attorneygeneral acceded to Mr. Comeyduring the most controversial mo-ments of the Clinton inquiry.

The result, Mr. Horowitz said,undermined public confidence inthe F.B.I. and sowed doubt aboutthe bureau’s handling of the Clin-ton investigation, which even twoyears later remains politically di-visive. Mrs. Clinton’s supportersblame Mr. Comey for her electionloss. Mr. Trump believes that Mr.Comey and his agents conspiredto clear Mrs. Clinton of wrongdo-

F.B.I. FAULTED IN CLINTON CASE

Continued on Page A12

A report found some of James B. Comey’s conduct in the Clinton inquiry to be “insubordinate.”JUSTIN TANG/THE CANADIAN PRESS, VIA ASSOCIATED PRESS

Comey Criticized— Result Held

as Just

By MATT APUZZOThe New York State attorneygeneral’s office filed a scathinglyworded lawsuit on Thursday ta-king aim at the Donald J. TrumpFoundation, accusing the charityand the Trump family of sweepingviolations of campaign financelaws, self-dealing and illegal co-ordination with the presidentialcampaign.

The lawsuit, which seeks to dis-solve the foundation and bar Pres-ident Trump and three of his chil-dren from serving on nonprofit or-ganizations, was an extraordinaryrebuke of a sitting president. Theattorney general also sent referralletters to the Internal RevenueService and the Federal ElectionCommission for possible furtheraction, adding to Mr. Trump’s ex-tensive legal challenges.

The lawsuit, filed in State Su-preme Court in Manhattan, culmi-nated a nearly two-year investiga-tion of Mr. Trump’s charity, whichbecame a subject of scrutiny dur-ing and after the 2016 presidentialcampaign. While such founda-tions are supposed to be devotedto charitable activities, the peti-tion asserts that Mr. Trump’s wasoften improperly used to settle le-

gal claims against his variousbusinesses, even spending$10,000 on a portrait of Mr. Trumpthat was hung at one of his golfclubs.

The foundation was also used tocurry political favor, the lawsuitasserts. During the 2016 race, thefoundation became a virtual armof Mr. Trump’s campaign, emailtraffic showed, with his campaignmanager, Corey Lewandowski, di-recting its expenditures, eventhough such foundations are ex-plicitly prohibited from politicalactivities.

The attorney general’s office isseeking to make the Trump Foun-dation pay $2.8 million in restitu-tion, the amount raised for thefoundation at a 2016 Iowa politicalfund-raiser. At the time, Mr.Trump skipped a Republican de-bate and set up his own event toraise money for veterans, thoughhe used the event to skewer hisopponents and celebrate his ownaccomplishments.

Mr. Trump immediately at-tacked the lawsuit, characterizingit on Twitter as an attempt by the“sleazy New York Democrats” todamage him by suing the founda-tion, and vowing not to settle thecase — much as he did when thesame office filed a lawsuit againstTrump University. (Mr. Trump in2016 paid a $25 million settlementto resolve the inquiry.)

State Sues Trump Charity,Alleging Vast Misconduct

In Scathing Rebuke, New York Seeks Finesand the Closing of the Foundation

By DANNY HAKIM

Continued on Page A21

Women can wear pants at theOscars, the Tony Awards andstate dinners. They can wearpants while graduating from theNaval Academy, figure skating atthe Olympics and running forpresident. They can wear them atjust about any workplace in Amer-ica.

But when the women of theNew York Philharmonic walkedon stage at David Geffen Hall re-cently to play Mozart andTchaikovsky, they all wore floor-length black skirts or gowns. Andthey’re required to: The Philhar-monic, alone among the nations’s20 largest orchestras, does not al-low women to wear pants for for-mal evening concerts.

That could soon change. The or-chestra — the oldest in the UnitedStates, with its 176th season wrap-ping up — has quietly been talkingabout modernizing its dress code.

Bowing to pressure from wom-en who argued that the dress re-strictions were not only unfair, butcould also hinder their ability to

play comfortably, other major or-chestras have moved in recentyears to let women wear pants ifthey choose. But gender equalityis not the only consideration at thePhilharmonic. At a moment whenall orchestras are struggling to at-tract new audiences, some in clas-sical music worry that old-fash-ioned formal wear can be off-

putting to newcomers. So the Phil-harmonic is also re-examining itsrule requiring men to wear whiteties and tails, to see if it still makessense now that the top-hat era haspassed.

“It’s a little bit strange,” saidLeelanee Sterrett, a 31-year-oldhorn player who joined the or-chestra in 2013 and is one of the

musicians who has been dis-cussing modernizing the dresscode with the orchestra’s manage-ment. “I think we would like to seeit changed, and soon. And not justchanged to allow pants, but tomake more of a broad statementof what it means to be dressed.”

It is not merely a question of

Women of Philharmonic Push to Erase Dress From Dress CodeBy MICHAEL COOPER

The New York Philharmonic still requires female musicians to wear floor-length gowns or skirts.CAITLIN OCHS FOR THE NEW YORK TIMES

Continued on Page A20

EL TIGRE, Venezuela — Thou-sands of workers are fleeing Vene-zuela’s state-owned oil company,abandoning once-coveted jobsmade worthless by the worst in-flation in the world. And now thehemorrhaging is threatening thenation’s chances of overcoming itslong economic collapse.

Desperate oil workers andcriminals are also stripping the oilcompany of vital equipment, vehi-cles, pumps and copper wiring,carrying off whatever they can tomake money. The double drain —of people and hardware — is fur-ther crippling a company that hasbeen teetering for years yet re-mains the country’s most impor-tant source of income.

The timing could not be worsefor Venezuela’s increasingly au-thoritarian president, Nicolás Ma-duro, who was re-elected lastmonth in a vote that has been

widely condemned by leadersacross the hemisphere. Promi-nent opposition politicians wereeither barred from competing inthe election, imprisoned or in ex-ile.

But while Mr. Maduro has firmcontrol over the country, Venezue-la is on its knees economically,buckled by hyperinflation and ahistory of mismanagement. Wide-spread hunger, political strife,devastating shortages of medi-cine and an exodus of well over amillion people in recent yearshave turned this country, once theeconomic envy of many of itsneighbors, into a crisis that isspilling over international bor-ders.

If Mr. Maduro is going to find away out of the mess, the key willbe oil: virtually the only source ofhard currency for a nation with

Job at Oil Giant Is No LongerPath to the Venezuelan Dream

By WILLIAM NEUMAN and CLIFFORD KRAUSS

Continued on Page A6

WASHINGTON — The reportthat had much of Washingtonbuzzing on Thursday required500 pages to outline its findings,but to President Trump, threewords mattered most — “we’llstop it.”

Those were the words that asenior F.B.I. agent texted inAugust 2016 to a colleague whowas worried that Mr. Trumpwould win the election. For thepresident, that text seemed tovalidate his claim of a “deepstate” conspiracy out to get him.

But the same inspector gen-eral report also undercut Mr.Trump’s narrative. Whatever theagent, Peter Strzok, meant, theF.B.I. did not “stop” Mr. Trump,

nor did the inspector general findevidence it tried. To the extentthat the F.B.I. and its director atthe time, James B. Comey, didanything wrong in 2016, accord-ing to the report, it was to thedisadvantage of Mr. Trump’sopponent, Hillary Clinton.

The sprawling report, the mostcomprehensive look back at theinvestigation into Mrs. Clinton’suse of an unclassified privateemail server, reflected a messierreality than the simple story linepromoted by the White House:An array of senior officials at theF.B.I. and the Justice Depart-ment made mistakes, the inspec-tor general determined, but hefound nothing to conclude thatanyone went easy on Mrs. Clin-ton or tried to harm Mr. Trumpout of political bias.

If anything, the report af-firmed the complaints that Mrs.Clinton and her team havelodged against Mr. Comey — thathe went too far by criticizing herconduct while declining to bringcharges, and that he erred bydisclosing days before the elec-tion that he was reopening theinquiry while never revealing aninvestigation into contacts be-tween Mr. Trump’s campaign andRussia.

“A fair reading of the reportshows that the F.B.I. applied adouble standard to the Clintonand Trump investigations thatwas unfair to Clinton and helpedelect Trump,” said John D. Po-desta, who was Mrs. Clinton’scampaign chairman. “That said,he’ll use one random Strzok

Weapon for Trump, but It Cuts Both WaysNEWS ANALYSIS

By PETER BAKER

Continued on Page A12

BROWNSVILLE, Tex. — In theloading docks, children sat in adarkened auditorium watchingthe animated movie “Moana.”

Where there were once racks ofclothes and aisles of appliances,there were now spotless dorm-style bedrooms with neatly madebeds and Pokemon posters on thewalls. The back parking lots werenow makeshift soccer fields andvolleyball courts. The McDonald’swas now the cafeteria. All thismade it difficult to visualize whatthe sprawling facility used to be —a former Walmart Supercenter.

The converted retail store at thesouthern tip of Texas has becomethe largest licensed migrant chil-dren’s shelter in the country — a

warehouse for nearly 1,500 boysages 10 to 17 who were caught ille-gally crossing the border.

The teeming, 250,000-square-foot facility is a model of borderlife in Trump-era America, part ofa growing industry of detentioncenters and shelters as federal au-thorities scramble to comply withthe president’s order to end “catchand release” of migrants illegallyentering the country. Now thatchildren are often being separatedfrom their parents, this facilityhas had to obtain a waiver fromthe state to expand its capacity.

Cots are being added to sleep-ing areas. The staff is expanding.But even that is not enough. Fed-

Built for Jeans and Housewares,It’s Now Home to Child Migrants

By MANNY FERNANDEZ

Continued on Page A14

Officials tried to ensure a warm wel-come for World Cup fans, even teachingrailroad workers how to smile. PAGE A4

Russia Plays Nice for the CupRuling against precedent on policeaccountability, the jurist said the Su-preme Court had gone too far. PAGE A18

Federal Judge Scolds Top Court

A report by the U.S. Geological Surveyincludes 39 San Francisco high rises ona list of buildings that could be vulnera-ble to a big earthquake. PAGE A16

At Risk in San Francisco

Lt. Gov. Casey Cagle, a Republicanrunning for governor, profited from thesale of an apartment he had boughtfrom a lobbyist. PAGE A17

Georgia Candidate’s Deal

In a sequel to the 2004 hit, Bob andHelen Parr and their superkids embarkon another thoroughly enjoyable adven-ture, Manohla Dargis writes. PAGE C1

WEEKEND ARTS C1-20

‘Incredibles 2’ Is a Fast Blast

James B. Comey PAGE A25

EDITORIAL, OP-ED A24-25

Late EditionToday, sunshine and clouds, breezy,not as warm, high 76. Tonight, clear,low 62. Tomorrow, sunny to partlycloudy, a warm afternoon, high 83.Weather map appears on Page A22.

$3.00