Powerful US attorney who investigated Trump associates refuses to step down after Barr pushes him out

Geoffrey Berman, U.S. attorney for the Southern District of New York, is resigning, according to the Justice Department.

Geoffrey Berman, the powerful US attorney for the Southern District of New York who has investigated a number of associates with ties to President Donald Trump, said he will not leave his post shortly after the Department of Justice announced late Friday night he was stepping down.

Berman issued a statement saying that he learned of his exit from a press release.

"I have not resigned, and have no intention of resigning, my position, to which I was appointed by the Judges of the United States District Court for the Southern District of New York. I will step down when a presidentially appointed nominee is confirmed by the Senate," Berman said in a statement. "Until then, our investigations will move forward without delay or interruption. I cherish every day that I work with the men and women of this Office to pursue justice without fear or favor -- and intend to ensure that this Office's important cases continue unimpeded."

Berman's rebuttal came about an hour after the Department of Justice announced 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. Barr asked Berman to resign in an in-person meeting in New York on Friday, the source said.

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.

Preet Bharara, a CNN senior legal analyst 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?"

And Senate Minority Leader Chuck Schumer said the "late Friday night dismissal reeks of potential corruption of the legal process. What is angering President Trump? A previous action by this U.S. Attorney or one that is ongoing?"

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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