Tag: Jared Kushner

Businesses Reportedly Gave Jared Kushner’s Co $500M Loans After White House Meetings

Jared Kushner has been the subject of controversy after his security clearance was downgraded by White House Chief of Staff John Kelly.

Now, according to a report from The New York Times, Kushner Companies, which is run by Kushner’s family, received $184 million from Apollo Global Management, whose founder, Joshua Harris, made “regular visits” to the White House in an advisory capacity.

Kushner resigned from Kushner Companies when he joined the Trump White House and put part of his stake into a trust, but he still has the majority of his interest in the company.

Additionally, the business received a $325 million loan from Citigroup after its CEO, Michael L. Corbat, met with Kushner. The two reportedly did not discuss Kushner Companies.

Government ethics experts told the Times that there is “little precedent” for CEOs whose businesses plan to make large loans to a company a White House official has a stake in meeting with said official.

Conflict of interest questions have plagued the Trump administration from the outset. This new report figures only to fuel critics.

[Mediaite]

Israel invested in “Mideast peace” Trump adviser Jared Kushner

A new report indicates that President Donald Trump’s son-in-law and senior adviser Jared Kushner holds a series of strong and shady financial ties to Israel, even as the administration insists he serves as a legitimate broker for potential peace efforts in the Middle East.

His family real estate business, Kushner Companies, received a $30 million investment from Menora Mivtachim, an insurer that is one of the largest financial institutions in Israel, The New York Times reported. The deal was private and took place shortly before Kushner and Trump visited Israel in May on their first diplomatic trip.

The deal “pumped significant new equity into 10 Maryland apartment complexes controlled by Mr. Kushner’s firm,” the Times reported. Despite the fact that Kushner sold parts of his business upon taking a job in the White House, he still holds a significant share in his family’s company, which include the Baltimore-area apartment buildings.

But the Menora deal only scratches the surface of Kushner’s financial conflicts of interests in the region that make the prospect of a fair solution seem bleak at the absolute best.

“The ethics laws were not crafted by people who had the foresight to imagine a Donald Trump or a Jared Kushner, Robert Weissman, the president of the nonprofit government ethics group, Public Citizen, told the Times. “No one could ever imagine this scale of ongoing business interests, not in a local peanut farm or a hardware store but sprawling global businesses that give the president and his top adviser personal economic stakes in an astounding number of policy interests.”

The Trump administration has defended itself, with a White House official saying Kushner “takes the ethics rules very seriously and would never compromise himself or the administration,” the Times reported.

Kushner’s disclosure forms had “100 errors and omissions and multiple updates,” Newsweek reported in October.

Kushner’s family foundation also continues to donate heavily to a group that constructs the illegal Israeli settlements in the West Bank, a group largely seen as “one of the main obstacles to a two-state solution,” ProPublica reported.

The Kushners have also engaged in real estate deals with “at least one member of Israel’s wealthy Steinmetz family to buy nearly $200 million of Manhattan apartment buildings, as well as to build a luxury rental tower in New Jersey.” Beny Steinmetz, the most well-known member of the family, is the subject of a bribery investigation by the Justice Department, the Times reported.

“A lot of people wonder whether the United States has ever been an honest broker in the Middle East, and given the positions of the Trump administration, it’s probably even more vulnerable to those claims,” Richard W. Painter, the former chief ethics lawyer for the Bush administration told the Times. Using Kushner, the U.S. is “sending over a special envoy who has already identified himself personally more with the hawkish views,” he added.
“He [Kushner] is getting money from wealthy citizens and businesses in one particular country,” Painter said. “You’ve got a situation that is going to be abused by people who don’t like the United States. He’s going to make it that much worse.”

The Kushner family ties to Israel obviously run quite deep, and it’s difficult to imagine the president’s son-in-law as a fair and unbiased broker of a solution for peace in the Middle East — especially with zero prior experience of diplomatic work. Trump has received international condemnation for his brash decision, which has only further stoked tensions with the Palestinians, as well as isolated the U.S. and Israel.

[Salon]

Kushner Used Private Email For White House Work

President Trump’s son-in-law and adviser Jared Kushner has used a private email account to communicate with other officials in the administration about White House business, according to Politico. 

Kushner has used the email to talk about various topics — including media planning and event coverage — with figures such as former White House chief of staff Reince Priebus, former chief strategist Stephen Bannon and President Trump’s chief economic adviser Gary Cohn.

Kushner set up the account during the transition period after he campaigned for Trump, who frequently attacked former Democratic presidential nominee Hillary Clinton for her user of a private email server while she was secretary of State.

“Mr. Kushner uses his White House email address to conduct White House business,” Kushner’s lawyer Abbe Lowell told Politico in a statement.

“Fewer than 100 emails from January through August were either sent to or returned by Mr. Kushner to colleagues in the White House from his personal email account. These usually forwarded news articles or political commentary and most often occurred when someone initiated the exchange by sending an email to his personal rather than his White House address.”

The report comes as special counsel Robert Mueller continues to probe alleged ties between the Trump campaign and Russian interference in the presidential campaign.

Kushner has been seen as a person of interest by Mueller.

The Washington Post reported in May that Kushner and the Russian ambassador to the U.S. had discussed setting up a secret communications channel between Trump’s transition team and the Kremlin.

It was reported in June that Kushner was present at a Trump Tower meeting in the summer of 2016 with a Russian lawyer that was organized by Donald Trump Jr. after he was told the lawyer could provide damaging information on Clinton.

[The Hill]

Jared Kushner ‘Tried and Failed to Get a $500m Loan from Qatar Before Pushing Trump to Take Hard Line Against Country’

Jared Kushner tried and failed to secure a $500m loan from one of Qatar’s richest businessmen, before pushing his father-in-law to toe a hard line with the country, it has been alleged.

This intersection between Mr Kushner’s real estate dealings and his father-in-law’s international issues highlights the difficulties of an administration besiged with an unprecedented number of conflicts of interest.

Early in his real estate career, Mr Kushner purchased a building at 666 Fifth Avenue in New York for $1.8bn – a record-setting deal at the time.

These days, however, more than a quarter of the office space in the building is vacant. According to The New York Times, the building has not generated enough to pay its debts in several years, forcing Kushner Companies to cover the multimillion-dollar difference.

In 2015 – while Donald Trump was firing up his presidential campaign – Mr Kushner was working with his biological father to keep the property from going underwater. The men zeroed in on Qatari billionaire sheikh Hamad bin Abdullah Al-Thani (HBJ) as a potential investor.

HBJ eventually agreed to invest $500m in the property, sources tell The Intercept, on the condition that Kushner Companies found the rest of the money for the multi-billion-dollar project on its own.

For help, Kushner Companies turned to Chinese insurance company Anbang. The company agreed to secure a $4bn construction loan to develop the property in early March. But weeks later, as concerns about conflicts of interest mounted, Anbang pulled out.

Without the help of Anbang, Kushner Companies could not meet the rest of HBJ’s funding demands. According to one source in the region, HBJ killed the deal. According to another, he simply put it on hold.

Either way, a diplomatic crisis centred around Qatar broke out shortly thereafter. In early June, at least six Gulf Region countries severed or reduced ties to the country, claiming it had supported terrorism.

The countries issued a list of demands necessary for Qatar to regain favour, including shutting down the media network Al-Jazeera, cutting ties with various Islamist groups, limiting ties with Iran, and expelling Turkish troops.

The move sent the tiny, isolated nation into an economic tailspin. Secretary of State Rex Tillerson quickly encouraged the countries to engage in “calm and thoughtful dialogue“ and asked for “no further escalation by the parties in the region”.

Mr Trump, however, unleashed a string of criticism toward the country, calling it a “funder of terrorism at a very high level”.

“So good to see the Saudi Arabia visit with the King and 50 countries already paying off,” he tweeted on 6 June. “They said they would take a hard line on funding, extremism, and all reference was pointing to Qatar.”

The President’s position took Mr Tillerson by surprise, and sources say he suspected Mr Kushner was behind it all.

A source close to Mr Tillerson told The American Conservative that the Secretary of State is convinced that some of Mr Trump’s remarks were written by UAE ambassador Yousef Al Otaiba – a close friend of Mr Kushner.

“Otaiba weighed in with Jared and Jared weighed in with Trump,”  the source said. “What a mess.”

But even if the source’s account of the proceedings is true, it still leaves open the question of why Mr Kushner wanted to convince the President to speak out against Qatar.

Mr Tillerson’s reasons for supporting the small country, and urging a quick end to the conflict, however, are more clear: The US runs a crucial airbase out of the country, which runs air campaigns against Isis in Iraq and Syria, and helps protect Israel.

Mr Tillerson left on Monday for a trip to Turkey, Kuwait, the UAE, Qatar, and Saudi Arabia to help mediate an end to the crisis. Kushner Companies did not respond to The Independent’s request for comment.

[The Independent]

Trump’s Huge Saudi Arms Deal is a Big Lie

Among the purported accomplishments of Donald Trump’s first presidential trip abroad—the one in which he insulted NATO allies, lost a handshake battle with French president Emmanuel Macron, and labeled Germans “bad, very bad”—the White House was eager to publicize the “tremendous” $110 billion arms and investments deal he struck with Saudi Arabia. According to The New York Times, the agreement was spearheaded by his son-in-law, Jared Kushner, who personally intervened to close the deal. “Let’s get this done today,” he reportedly told a delegation of Saudis in Washington ahead of the president’s high-profile flight to Riyadh.

“The deal was finalized in part thanks to the direct involvement of Jared Kushner, the president’s son-in-law and senior adviser,” CNN reported at the time. “He shocked a high-level Saudi delegation earlier this month when he personally called Lockheed Martin C.E.O. Marillyn Hewson and asked if she would cut the price of a sophisticated missile detection system, according to a source with knowledge of the call.” Soon after, the president signed the deal in a ceremony with King Salman bin Abdulaziz Al Saud.

There’s just one small problem: according to Bruce Riedel, a senior fellow and director at the Brookings Intelligence Project, the so-called deal is more of a wish list than a matter of fact. Or, to use Trump’s favorite phrase, it’s “fake news.”

Riedel, who worked for the C.I.A. for 30 years, writes that all of his sources in the defense business and on Capitol Hill say “there is no $110 billion deal” but rather “a bunch of letters of interest or intent but not contracts. Many are offers that the defense industry thinks the Saudis will be interested in someday,” but “so far, nothing has been notified to the Senate for review.” The arms sales division of the Pentagon, the Defense Security Cooperation Agency, Riedel writes, has labeled them “intended sales.” And here’s the kicker: “none of the deals identified so far are new; all began in the Obama administration.” (The White House did not respond to a request for comment on Riedel’s claims.)

Some of Reidel’s reporting isn’t new—as the Times noted in its story at the time (“$110 Billion Weapons Sale to Saudis Has Jared Kushner’s Personal Touch”), several of the weapons in the proposed package had already been approved under Obama. But leave it to Donald Trump, a brand licensing tycoon who has always been more style than substance, to play up a rough draft of a potential agreement as a groundbreaking diplomatic success. His son-in-law, it seems, has a flair for selling a good story, too.

[Vanity Fair]

Jared Kushner Reportedly Tried to Set Up a Secret Trump-Russia Back Channel

Jared Kushner, President Donald Trump’s son-in-law and top White House adviser, was willing to go extraordinary lengths to establish a secret line of communication between the Trump administration and Russian government officials, The Washington Post reported on Friday.

During the presidential transition period leading up to Trump’s inauguration, Kushner held a series of meetings with the Russian ambassador to the US, Sergey Kislyak, and the head of a Moscow bank that was under US sanctions.

In talks with Kislyak in December, Kushner floated the possibility of setting up a secure line of communication between the Trump transition team and Russia — and having those talks take place in Russian diplomatic facilities in the US, essentially concealing their interactions from US government scrutiny, The Post wrote, citing US intelligence officials briefed on the matter.

Kislyak reportedly passed along that request to Moscow. The Post’s Ellen Nakashima, Adam Entous, and Greg Miller reported that the Russian ambassador was “taken aback” by Kushner’s request, because it posed significant risks for both the Trump team and the Kremlin.

Kushner, who did not disclose the meeting on his security clearance form, is now a subject in the FBI’s investigation of Russia’s election interference, and whether the Trump campaign colluded with Moscow to undermine Hillary Clinton.

He also had two previously undisclosed phone calls with Kislyak between April and November of last year, according to Reuters. Kushner’s attorney Jamie Gorelick responded to the Reuters story Friday evening via CNN, saying “Mr. Kushner participated in thousands of calls in this time period. He has no recollection of the calls as described. We have asked (Reuters) for the dates of such alleged calls so we may look into it and respond, but we have not received such information.”

“GOOD GRIEF. This is serious,” said Bob Deitz, a veteran of the NSA and the CIA who worked under the Clinton and Bush administrations.

“This raises a bunch of problematic issues. First, of course, is the Logan Act, which prohibits private individuals conducting negotiations on behalf of the US government with foreign governments,” Deitz said. “Second, it tends to reinforce the notion that Trump’s various actions about [fired FBI Director James] Comey do constitute obstruction.”

“In other words, there is now motive added to conduct,” Deitz noted. “This is a big problem for the President.”

Kushner did not previously disclose the December meetings to US officials during his background check, and the White House only acknowledged them after news outlets reported on it. It follows a pattern among key Trump advisers that unfolded during and after the 2016 election.

“If you are in a position of public trust, and you talk to, meet, or collude with a foreign power” while trying to subvert normal state channels, “you are, in the eyes of the FBI and CIA, a traitor,” said Glenn Carle, a former top counterterrorism official at the CIA. “That is what I spent my life getting foreigners to do with me, for the US government.”

Carle noted that, if the Kushner-Kislyak meeting and reported discussion were an isolated incident, then it could be spun as “normal back-channel communication arrangements among states.”

“If Jared Kushner was trying to set up a back channel with the Russians, doesn’t that mean he wasn’t colluding with them?” a White House official said in response to the story, according to CNN.

But Kislyak and the Trump campaign interacted extensively, and Trump associates either kept those interactions secret from US officials or misrepresented them, as was the case with Michael Flynn, who was forced to resign in February for similar reasons.

Reuters reported earlier this month that Flynn and Kislyak also spoke about setting up a secret back channel during the transition between Trump and Russian President Vladimir Putin “that could bypass the US national security bureaucracy.”

“We know about the multiple meetings of Trump entourage members with Russian intel-related individuals,” Carle said. “There will be many others that we do not know about.” He noted that while this reported back channel is “explosive,” it is worth questioning who planted the story — The Post reportedly received an anonymous letter in December tipping them off to the Kushner-Kislyak meeting.

Additionally, as a longtime diplomat, Kislyak would have known that his communications were being monitored. So the possibility remains, Carle said, that the Russians used the meeting with Kushner to distract the intelligence community and the public from potentially more incriminating relationships between the campaign and Moscow.

Indeed, Kushner also met with the CEO of Russia’s state-owned Vnesheconombank, Sergey Gorkov, in December 2016, The New York Times reported in late March. The meeting — which had not previously been disclosed and came on the heels of Kushner’s meeting with Kislyak at Trump Tower — caught the eye of the Senate Intelligence Committee, which is investigating Russia’s interference in the 2016 election and whether any members of Trump’s campaign were complicit.

Kislyak reportedly orchestrated the meeting between Kushner and Gorkov, who was appointed by Russian President Vladimir Putin in January 2016 as part of a restructuring of the bank’s management team, Bloomberg reported last year.

The Kremlin and the White House have provided conflicting explanations for why Kushner met with Gorkov.

Former CIA Director John Brennan, in testimony Tuesday before the House Intelligence Committee, said that he was concerned by some of the “interactions” between Russian officials and members of the Trump campaign that took place during the election last year.

Republican Rep. Tom Rooney asked Brennan if he ever found “any direct evidence of collusion between the Trump campaign and Putin in Moscow” while he was the CIA director.

Brennan replied that “there was intelligence that the Russian intelligence services were actively involved in this effort … to try to get individuals to act on their behalf either wittingly or unwittingly.” He added that he was “worried by the contacts that the Russians were having with US persons” and “had unresolved questions” by the time he left office about whether” the Russians had succeeded in getting Americans to do their bidding.

Pressed further, Brennan said that “the information and intelligence revealed contacts and interactions between Russian officials and US persons involved in the Trump campaign that I was concerned about because of known Russian efforts to suborn such individuals. It raised questions in my mind about whether the Russians were able to gain the cooperation of such individuals.”

[Business Insider]

Reality

According to the Washington Post, most analysts agree that it’s appropriate for presidents and their senior aides to use secret contacts to advance U.S. foreign policy goals. And it’s fairly routine for incoming administrations to have get-acquainted talks with foreign governments, too. Such back channels can add stability and predictability in foreign relations.

What’s not okay is when an incoming administration seeks to undermine the policies of the incumbent. We have “one president at a time.” That’s not just a political truism but a matter of law, enunciated back in 1799 in the Logan Act, which prohibits private meddling with official policy during a dispute. The fact that this statute has never been enforced criminally doesn’t blunt its importance.

And it’s not okay, either, for any citizen, even the son-in-law of the president-elect, to propose contacts that would use the communications tools of a foreign intelligence service to evade detection.

In a Beijing Ballroom, Kushner Family Sells $500,000 ‘Investor Visa’ to Wealthy Chinese

The Kushner family came to the United States as refugees, worked hard and made it big — and if you invest in Kushner properties, so can you.

That was the message delivered Saturday by White House senior adviser Jared Kushner’s sister to a ballroom full of wealthy Chinese investors, renewing questions about the Kushner family’s business ties to China.

Over several hours of slide shows and presentations, representatives from the Kushner family business urged Chinese citizens gathered at the Ritz-Carlton hotel to consider investing hundreds of thousands of dollars in a New Jersey real estate project to secure what’s known as an investor visa.

The EB-5 immigrant investor visa program, which allows foreign investors to invest in U.S. projects that create jobs and then apply to immigrate, has been used by both the Trump and Kushner family businesses.

But President Trump’s vow to crack down on immigration, as well as criticism from members of Congress, has led to questions about the future of a program known here as the “golden visa.”

The EB-5 has been extremely popular among rich Chinese who are eager to get their families — and their wealth — out of the country, though the fact that some move their money out illegally has made the program unpopular with the Chinese government, too.

In the ballroom of the Ritz-Carlton on Saturday, Chinese investors were advised to invest sooner rather than later in case the rules change. “Invest early, and you will invest under the old rules,” one speaker said.

The woman identified as “Jared’s sister” was believed to be Nicole Kushner, who is involved in the family business, not Dara Kushner, who generally stays out of the spotlight. But the woman’s face was not clearly visible from the back of the ballroom, where reporters were told to remain.

Saturday’s event in Beijing was hosted by the Chinese company Qiaowai, which connects U.S. companies with Chinese investors. The tagline on a brochure for the event: “Invest $500,000 and immigrate to the United States.”

Qiaowai is working with Kushner to secure funding for Kushner 1, a real estate project in New Jersey. Promotional materials tout the buildings’ proximity to Manhattan and note that the project will create more than 6,000 jobs.

“This project has stable funding, creates sufficient jobs and guarantees the safety of investors’ money,” one description reads.

Although there was no visible reference to Trump, the materials noted the Kushner family’s “celebrity” status. Wang Yun, a Chinese investor who attended the event, said the Kushner family’s ties to Trump, via son-in-law Jared, were a part of the project’s appeal — but also a source of concern.

“Even though this is the project of the son-in-law’s family, of course it is still affiliated,” Wang.

Wang reasoned that the link to Trump would be a boon if the presidency goes well but could be disastrous if it does not: “We heard that there are rumors that he is the most likely to be impeached president in American history. That’s why I doubt this project.”

Many of the people who attended the event declined to be interviewed, citing privacy concerns, or were blocked by organizers from speaking to the news media.

Though the event was publicly advertised in Beijing, the hosts were exceptionally anxious about the presence of reporters.

Journalists were initially seated at the back of the ballroom, but as the presentations got underway, a public-relations representative asked The Washington Post to leave, saying the presence of foreign reporters threatened the “stability” of the event.

At one point, organizers grabbed a reporter’s phone and backpack to try to force that person to leave. Later, as investors started leaving the ballroom, organizers physically surrounded attendees to stop them from giving interviews.

Asked why reporters were asked to leave, a public-relations representative, who declined to identify herself, said simply, “This is not the story we want.”

(h/t Washington Post)

Reality

Other people at the event tweeting pictures of the booth.

Kushner Left Russian Meetings Off Security Clearance Forms

President Trump’s son-in-law and senior adviser, Jared Kushner, failed to disclose dozens of meetings and contacts with foreign officials in the months before inauguration while he was seeking a top-secret security clearance, The New York Times reported Thursday.

Among the meetings that Kushner omitted from his national security questionnaire were one with Russian Ambassador Sergey Kislyak and another with Sergey Gorkov, the CEO of the Russian state-owned bank Vnesheconombank.

Kushner’s lawyer told the Times that the omissions were an error and that the top White House aide’s office notified the FBI the day after he submitted the questionnaire that he would provide supplemental information. He is now using a temporary security clearance, according to his aides.

“During the presidential campaign and transition period, I served as a point-of-contact for foreign officials trying to reach the president-elect,” Kushner reportedly told the FBI after learning of the omissions, according to a statement provided to the Times by his lawyer.

“I had numerous contacts with foreign officials in this capacity. … I would be happy to provide additional information about these contacts.”

Congressional investigators as well as the FBI are probing Russian election meddling and potential ties between Trump’s team and Moscow. The Senate Intelligence Committee is planning to interview Kushner on his meetings with Kislyak and Gorkov as part of its probe.

The revelation is the latest in a series of ongoing controversies regarding the Trump administration and Russia. Former national security adviser Michael Flynn resigned in February amid reports that he discussed sanctions with Kislyak before Trump took office, and misled top White House officials about the discussions.

Later that month, Attorney General Jeff Sessions was revealed to have met with Kislyak during Trump’s presidential campaign, during which time Sessions was a top surrogate for Trump.

Ivanka Trump and Jared Kushner Still Benefiting From Business Empire

Ivanka Trump and Jared Kushner, President Trump’s daughter and son-in-law, will remain the beneficiaries of a sprawling real estate and investment business still worth as much as $740 million, despite their new government responsibilities, according to ethics filings released by the White House Friday night.

Ms. Trump will also maintain a stake in the Trump International Hotel in Washington, D.C. The hotel, just down the street from the White House, has drawn protests from ethics experts who worry that foreign governments or special interests could stay there in order to curry favor with the administration.

It is unclear how Ms. Trump would earn income from that stake. Mr. Kushner’s financial disclosures said that Ms. Trump earned between $1 million and $5 million from the hotel between January 2016 and March 2017, and put the value of her stake at between $5 million and $25 million.

The disclosures were part of a broad, Friday-night document release by the White House that exposed the assets of as many as 180 senior officials to public scrutiny. The reports showed the assets and wealth of senior staff members at the time they entered government service.

Those disclosures included the assets of Gary D. Cohn, the former president of Goldman Sachs who now leads the National Economic Council, Kellyanne Conway, the pollster and counsel to Mr. Trump and Stephen K. Bannon, the chief strategist to the president.

Mr. Bannon disclosed $191,000 in consulting fees he earned from Breitbart News Network, the conservative media organization, $125,333 from Cambridge Analytica, a data firm that worked for the Trump campaign, and $61,539 in salary from the Government Accountability Institute, a conservative nonprofit organization. All three are backed by Robert Mercer and his daughter Rebekah, financiers and major Republican donors.

Mr. Bannon’s most valuable asset was Bannon Strategic Advisors Inc., a privately held consulting firm into which income from his other investments appeared to flow. It was valued at between $5 million and $25 million. He also held bank accounts valued at up to $2.25 million, and rental real estate worth as much as $10.5 million.

Ms. Conway earned at least $842,614 last year, and perhaps slightly more, the filings show. Her assets are valued at between $11 million and at least $44.2 million.

Mr. Cohn is far wealthier, with assets valued between $253 million and $611 million, and income last year as high as $77 million. Another White House official, Reed Cordish, who heads up technology initiatives, accumulated assets as a Maryland developer valued as high as $424 million.

Mr. Trump’s administration is considered the most wealthy in American history, with members of his senior staff and cabinet worth an estimated $12 billion, according to a tally by Bloomberg. The Friday filings will add voluminous detail to that top-line figure. The White house chief of staff, Reince Priebus, for example, earned at least $1.18 million — nearly half of which came from the Republican National Committee, which he formerly led. His assets totaled between $604,008 and at least $1.26 million.

“I think one of the really interesting things that people are going to see today — and I think it’s something that should be celebrated — is that the president has brought a lot of people into this administration, and this White House in particular, who have been very blessed and very successful,” said Sean Spicer, the White House press secretary. The officials “have given up a lot to come into government by setting aside a lot of assets,” he said.

Until January, Mr. Kushner was the chief executive of Kushner Companies, a family-run real estate investment firm with holdings across the country. It is a growing business that has taken part in at least $7 billion of acquisitions over the past decade.

Late Friday, the White House released details of the plan devised by his advisers to avoid conflicts of interest between Mr. Kushner’s government role and the wide-ranging business empire he ran with his father. That business depends on foreign investment from undisclosed sources, as well as billions of dollars in loans from the world’s biggest financial services firms.

Although Mr. Kushner has stepped down from his management positions at the more than 200 entities that operated aspects of the family real estate business, he will remain a beneficiary of a vast majority of the business he ran for the past decade, through a series of trusts that already owned the various real estate companies.

The plan laid out on Friday “is not sufficient,” said Larry Noble, a former general counsel and chief ethics officer for the Federal Election Commission. “While removing himself from the management of the businesses is an important step, he is still financially benefiting from how the businesses do. This presents potential for a conflict of interest. Given his level in the White House and broad portfolio, it’s hard to see how he will recuse himself from everything that may impact his financial interest.”

While the filing discloses Mr. Kushner’s personal lenders, it does not provide information on his business partners or lenders to his projects.

His real estate firm has borrowed money from the likes of Goldman Sachs, the Blackstone Group, Deutsche Bank and the French bank Natixis. It also received loans from Israel’s largest bank, Bank Hapoalim, which is the subject of a United States Justice Department investigation into allegations that it helped wealthy Americans evade taxes using undeclared accounts.

Most recently, his firm’s flagship property at 666 Fifth Avenue in Manhattan was the subject of controversy: Around the time his father-in-law received the Republican nomination last spring, Mr. Kushner’s firm began conversations with a Chinese company with ties to some of the Communist Party’s leading families about a plan to invest billions of dollars in the troubled office tower.

Mr. Kushner’s company and the firm, Anbang Insurance Group, agreed to end the talks on Wednesday after weeks of negative publicity about the deal, criticized as a bailout of the Kushners. The building had already been rescued by a number of prominent firms, including the private equity giant Carlyle Group, and Zara, the Spanish fashion retailer founded and owned by Amancio Ortega, one of the world’s wealthiest men.

Mr. Kushner has divested his stakes in any businesses connected to that property.

The disclosures do not reveal the names of investors and lenders to ventures that Mr. Kushner is retaining a stake in. For example, the form shows Mr. Kushner is retaining a stake in a limited liability corporation that owns a Trump-branded luxury rental high-rise building in Jersey City worth as much as $5 million. That project was financed with tens of millions of dollars from wealthy Chinese investors through a controversial visa-for-sale program called EB-5.

However, the filing does not disclose the names of any of those investors — or partners in any of his other projects.

“We don’t know who the business partners are in many of these investments,” Mr. Noble said, “and those business partners may also have interests that will be affected by how he advises the government. And that’s a concern.”

“He could have foreign business partners who have a real interest in policy, and he may be advising the president on those policies,” Mr. Noble added. “This is a dark area where we just don’t know what’s going on.”

In all, the Kushner company owns more than 20,000 apartments and approximately 14 million square feet of office space.

Previous disclosures by the United States Office of Government Ethics showed that Mr. Kushner had divested his interests in several entities, mostly partnerships connected to a venture capital firm run by his brother, Joshua, called Thrive Capital, that invests in technology firms like Instagram.

He also shed his interests in funds run by the private equity giant Blackstone Group — whose chief executive, Stephen A. Schwarzman, is an economic adviser to Mr. Trump — as well as BlackRock, the world’s largest asset manager.

Over all, he has shed his stakes in 58 businesses.

He is still the sole primary beneficiary of a majority of the trusts that will retain assets, with his children as the secondary beneficiaries.

Mr. Kushner was required to submit some limited financial information for his wife, Ms. Trump, who will continue to receive payments from the Trump Organization as well as her fashion brand.

Ms. Trump, who now serves as an assistant to the president, resigned from her leadership roles at both companies. Instead of performance-based payments, Ms. Trump will receive fixed payments from T International Realty, the family’s luxury brokerage agency, as well as fixed fees from two entities related to real estate projects, the documents show.

Ms. Trump had previously rolled her fashion brand into the Ivanka M. Trump Business Trust, which is overseen by her brother-in-law, Josh Kushner, and sister-in-law, Nicole Meyer. The documents released on Friday valued the trust at more than $50 million.

The brand is largely a licensing operation, meaning that it sells the use of Ms. Trump’s name to partners who manufacture her clothes, shoes and other accessories. Since it is privately held, little is known about the company’s financials, but The New York Times has previously reported that revenues were roughly between $4 million and $6 million in 2013, before the debut of a major partnership.

The disclosure forms released Friday for less senior White House staff members were not reviewed by the federal Office of Government Ethics. Only the White House Counsel’s Office examines their assets to determine if there are potential conflicts, and to decide what steps employees must take to sell assets, resign positions or recuse themselves from decisions.

Already, a complaint has been filed against at least one White House staff member for taking actions that might benefit his own financial interests. Christopher P. Liddell, an assistant to the president and the director of strategic initiatives, had been the chief financial officer of companies including Microsoft, International Paper and General Motors before taking his White House job. Until recently, he also owned stock in General Motors, according to disclosure forms, among more than 750 other companies.

But in late January and early February, according to a complaint filed by Citizens for Responsibility and Ethics in Washington, Mr. Liddell participated in meetings that involved several of the companies in which he still owned a total of about $2 million in stock, including International Paper and General Motors. Mr. Liddell, according to disclosures, sold these stock holdings by mid-February.

“It is Ethics 101 — the most basic thing you are not supposed to do: using your official capacity to benefit your financial interest,” said Norman Eisen, who served as a White House ethics lawyer during the Obama administration and now is a co-chairman of Citizens for Responsibility and Ethics in Washington.

The White House did not respond Friday when asked about the complaint.

(h/t New York Times)

Trump son-in-law tells Time Warner of CNN concerns

President Trump’s son-in-law and senior adviser Jared Kushner, recently met with CNN’s parent company Time Warner and mentioned the cable news network’s coverage of the administration as slanted.

During the meeting at the White House, Kushner expressed concerns about what the administration considers is CNN’s unfair coverage of the President to Gary Ginsberg, Time Warner’s executive vice president of corporate marketing and communications, two persons familiar with the situation said. One of the persons said that topics of the discussion included Israel and Kushner made a joking reference to CNN’s perceived anti-Trump coverage.

Trump disparaged CNN during his press conference Thursday while taking a question from CNN’s senior White House correspondent Jim Acosta noting “the hatred coming from other people on your network.”

The president has made clear his disdain for CNN. A month ago, during Trump’s first full press conference after being elected, he called CNN a peddler of “fake news” because the network had produced a story reporting that the U.S. intelligence officials had presented Trump and President Obama with a “dossier” of unverified, but potentially compromising information about the president-elect that Russian operatives claimed to have.

What makes the CNN-Time Warner situation so sticky is AT&T’s pending $85.4 billion acquisition of Time Warner. During the campaign, Trump criticized the merger because the resulting company would have too much market power. “AT&T is buying Time Warner, and thus CNN, a deal we will not approve in my administration,” he said in October.

However, post-election meetings with administration officials left AT&T executives with confidence about passage, The Financial Times reported in December, citing persons familiar with the situation.

Trump and AT&T CEO Randall Stephenson did not discuss the merger when they met last month, the company said. But Stephenson last week told CNBC he expects the deal to pass Justice Department scrutiny and close by the end of the year. And the subject of the merger reportedly did not arise during Kushner’s recent meeting with Time Warner, according to The Wall Street Journal, which first reported the meeting.
AT&T, Time Warner and CNN declined comment on the meeting.
But two CNN analysts — Republican strategist and commentator Ana Navarro and Van Jones, a former adviser to President Obama — responded to the report on Twitter. Navarro noted that Kushner “who’s supposed to achieve Middle East peace, is complaining about me to CNN,” in a tweet.
Jones used some lyrics from Drake’s song Energy — “Got a lotta people tryna drain me of this energy.” — then added, “But y’all know @CNN has our backs. Do you? RT if yes! (@jaredkushner, u can RT, 2!).”
Both sides in this situation should tread carefully, says John Coffee, a law professor and and director of the Center on Corporate Governance at Columbia Law School. “Time Warner is extremely vulnerable to pressure in this context — although the slightest application of pressure would backfire explosively,” he said. “Trump really cannot afford another fiasco right now when his administration keeps stumbling over itself. Thus, we may be witnessing another self-inflicted wound that is about to occur.”

(h/t USA Today)

 

1 2 3