Category Archives: FBI

Kushner’s Testimony to Senate Senate Intel Committee Staffers

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Jared Kushner tells Congress: “I did not collude”

Axios: Giving his version of his Russia contacts for the first time, Jared Kushner says in an 11-page statement to congressional committees that he had “hardly any” contacts with Russians during the campaign, and regarded the meeting with a Russian lawyer at Trump Tower as “a waste of our time.”

  • Key quote: “I did not collude, nor know of anyone else in the campaign who colluded, with any foreign government. I had no improper contacts. I have not relied on Russian funds to finance my business activities in the private sector. I have tried to be fully transparent with regard to the filing of my SF-86 [security clearance] form, above and beyond what is required.”
  • Why it matters: The stakes for the congressional interviews are high for Kushner because the Trump son-in-law is of acute interest to special counsel Bob Mueller, and prosecutors can be expected to pick apart today’s statement.
  • Kushner has a 10 a.m.appointment with staff of the Senate Intelligence Committee, and his meeting tomorrow with the House Intelligence Committee. Both sessions are behind closed doors.
Highlights 1018 words

The most colorful passage: “[I]n looking for a polite way to leave and get back to my work,” he says in the statement, “I actually emailed an assistant from the meeting after I had been there for ten or so minutes and wrote ‘Can u pls call me on my cell? Need excuse to get out of meeting.’ I had not met the attorney before the meeting nor spoken with her since. I thought nothing more of this short meeting until it came to my attention recently.”

Another highlight: “With respect to my contacts with Russia or Russian representatives during the campaign, there were hardly any. … [T]he day after the election, I could not even remember the name of the Russian Ambassador. … I sent an email asking [Dmitri Simes of the Center for the National Interest, which hosted a Trump foreign policy speech], ‘What is the name of the Russian ambassador?'”

Other key points:

  • “When it became apparent that my father-in-law was going to be the Republican nominee for President, as normally happens, a number of officials from foreign countries attempted to reach out to the campaign. My father-in-law asked me to be a point of contact with these foreign countries. … [O]ver the course of the campaign, I had incoming contacts with people from approximately 15 countries.”
  • “I called on a variety of people with deep experience, such as Dr. Henry Kissinger, for advice on policy for the candidate, which countries/representatives with which the campaign should engage, and what messaging would resonate.”
  • “The first [campaign contact] that I can recall was at the Mayflower Hotel in Washington, D.C. in April 2016. … [T]he host of the event, Dimitri Simes, … introduced me to several guests, among them four ambassadors, including Russian Ambassador Sergey Kislyak. With all the ambassadors, including Mr. Kislyak, we shook hands, exchanged brief pleasantries.”
  • “Reuters news service has reported that I had two calls with Ambassador Kislyak at some time between April and November of 2016. While I participated in thousands of calls during this period, I do not recall any such calls with the Russian Ambassador. We have reviewed the phone records available to us and have not been able to identify any calls to any number we know to be associated with Ambassador Kislyak and I am highly skeptical these calls took place.”
  • “I had no ongoing relationship with the Ambassador before the election, and had limited knowledge about him.”
  • “The only other Russian contact during the campaign is one I did not recall at all until I was reviewing documents and emails in response to congressional requests for information.”
  • That was the Trump Tower meeting, and he said the invitation from Donald Trump Jr. “was on top of a long [email] back and forth that I did not read at the time. … Documents confirm my memory that this was calendared as ‘Meeting: Don Jr.| Jared Kushner.’ No one else was mentioned.”
  • “There was one more possible contact that I will note. On October 30, 2016, I received a random email from the screenname ‘Guccifer400.’ This email, which I interpreted as a hoax, was an extortion attempt and threatened to reveal candidate Trump’s tax returns and demanded that we send him 52 bitcoins in exchange for not publishing that information. I brought the email to the attention of a U.S. Secret Service agent on the plane we were all travelling on and asked what he thought. He advised me to ignore it and not to reply — which is what I did. The sender never contacted me again.”
  • “On November 16, 2016, my assistant received a request for a meeting from the Russian Ambassador. … The [Dec. 1] meeting occurred in Trump Tower, where we had our transition office, and lasted twenty [to] thirty minutes. Lt. General Michael Flynn (Ret.), who became the President’s National Security Advisor, also attended.
  • “I believed developing a thoughtful approach on Syria was a very high priority given the ongoing humanitarian crisis, and I asked if they had an existing communications channel at his embassy we could use where they would be comfortable transmitting the information they wanted to relay to General Flynn. The Ambassador said that would not be possible and so we all agreed that we would receive this information after the Inauguration. Nothing else occurred. I did not suggest a ‘secret back channel.'”
  • “My assistant reported that the Ambassador had requested that I meet with a person named Sergey Gorkov who he said was a banker and someone with a direct line to the Russian President who could give insight into how Putin was viewing the new administration and best ways to work together. I agreed to meet Mr. Gorkov because the Ambassador has been so insistent, said he had a direct relationship with the President, and because Mr. Gorkov was only in New York for a couple days.”
  • “The [Dec. 13] meeting with Mr. Gorkov lasted twenty to twenty-five minutes. … At no time was there any discussion about my companies, business transactions, real estate projects, loans, banking arrangements or any private business of any kind.”
  • “There has been a good deal of misinformation reported about my SF-86 [security clearance] form. As my attorneys and I have previously explained, my SF-86 application was prematurely submitted due to a miscommunication and initially did not list any contacts (not just with Russians) with foreign government officials.”
  • “[P]eople at my New York office were helping me find the information, organize it, review it and put it into the electronic form. They sent an email to my assistant in Washington, communicating that the changes to one particular section were complete; my assistant interpreted that message as meaning that the entire form was completed.
  • “At that point, the form was a rough draft and still had many omissions including not listing any foreign government contacts and even omitted the address of my father-in-law (which was obviously well known). Because of this miscommunication, my assistant submitted the draft on January 18, 2017.”
  • “The very next day, January 19, 2017, we submitted supplemental information to the transition, which confirmed receipt and said they would immediately transmit it to the FBI.”

Now 10 Dead in Smuggled Truck

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Statement from ICE Acting Director Thomas Homan on Human Smuggling

“By any standard, the horrific crime uncovered last night ranks as a stark reminder of why human smuggling networks must be pursued, caught and punished.  U.S. Immigration and Customs Enforcement’s Homeland Security Investigations works year-round to identify, dismantle, and disrupt the transnational criminal networks that smuggle people into and throughout the United States. These networks have repeatedly shown a reckless disregard for those they smuggle, as today’s case demonstrates. I personally worked on a tragic tractor trailer case in Victoria, Texas in 2003 in which 19 people were killed as a result of the smugglers’ total indifference to the safety of those smuggled and to the law.

“The men and women of ICE are proud to stand alongside our law enforcement partners, including locally and at the U.S. Department of Justice, to combat these smuggling networks and protect the public and those who would fall victim to their dangerous practices that focus solely on their illicit profits.  So long as I lead ICE, there will be an unwavering commitment to use law enforcement assets to put an end to these practices.”

The Federal complaint is found here.

*** Texas Public Radio

FNC: A suspect arrested in connection with the deaths of at least 10 people packed into a sweltering tractor-trailer is due in court Monday over his alleged role in the immigrant-smuggling attempt gone wrong.

Federal prosecutors said they planned to bring charges against James Mathew Bradley Jr., 60, of Clearwater, Florida, who is due to appear in federal court at 11 a.m. local time.

U.S. Attorney Richard Durbin Jr. did not say whether Bradley was the driver of the truck, although investigators said earlier that the driver was in custody.

Authorities initially discovered eight bodies Sunday inside the crowded 18-wheeler parked outside a Walmart in the summer heat. Two additional victims later died at the hospital.

Officials feared the death toll could still rise, because nearly 20 others rescued from the truck were in dire condition, many suffering from extreme dehydration and heatstroke, officials told the Associated Press.

Based on initial interviews with survivors of the San Antonio tragedy, more than 100 people may have been packed into the back of the 18-wheeler at one point in its journey, ICE acting Director Thomas Homan said. Officials said 39 people were inside when rescuers arrived, and the rest were believed to have escaped or hitched rides to their next destination.

Four of the survivors appeared to be between 10 and 17 years old, Homan said. Investigators gave no details on where the rig began its journey or where it was headed.

Mexican nationals were among both the survivors and the dead, Mexican Consul General in San Antonio Reyna Torres said, without giving a specific number. Torres said the consulate has been in contact with relatives both in Mexico and in the U.S.

Guatemala’s foreign ministry, meanwhile, said at least two Guatemalans were on the abandoned rig. The two male survivors told Guatemalan consulate officials that they crossed the border by foot at Laredo and boarded the tractor-trailer, according to Tekandi Paniagua, communications director for the foreign ministry. The pair told officials their final destination was Houston, Paniagua added. More here.

Kushner Overlooked 77 Assets, But it Gets Worse

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In part from Examiner: White House senior adviser Jared Kushner on Friday released a revised version of his personal financial disclosure that reveals his initial filing did not include 77 assets, according to a report Friday.

The Wall Street Journal reports that the new disclosure says 77 assets were “inadvertently omitted” from Kushner’s original form, released in March, and were added during the “ordinary review” process with the government ethics office.

In addition to information on Kushner, President Trump’s son-in-law, the new disclosure includes details of Ivanka Trump’s finances.

Ivanka Trump is the president’s daughter, a senior White House aide and Kushner’s wife.

The new financial forms show Kushner and Ivanka Trump collectively have between $206 million and $760 million in assets, the Journal said. Kushner’s initial disclosure valued their assets at between $240 million and $740 million. More here.

***

OCCRP

IN 2014, Prevezon Holdings Limited, was controlled by the son of a Russian political figure. The company had many interests in real estate, including an investment in a venture with a Soviet-born diamond and property magnate named Lev Leviev—who also happened to be one of the developers of 20 Pine.

Starting in late 2009, Prevezon began purchasing units in 20 Pine, acquiring five in total. The company later added three Manhattan commercial spaces to create a $24 million portfolio, which prosecutors sued to seize last year. “While New York is a world financial capital,” U.S. Attorney Preet Bharara said in a press release announcing the action, “it is not a safe haven for criminals seeking to hide their loot.” The lawsuit is here.

Jared Kushner sealed Manhattan real estate deal with oligarch’s firm cited in money-laundering case

Guardian: Donald Trump’s son-in-law bought part of old New York Times building from Soviet-born tycoon, Guardian investigation into Russian money in NYC property market finds

Jared Kushner, the son-in-law of Donald Trump, who acts as his senior White House adviser, secured a multimillion-dollar Manhattan real estate deal with a Soviet-born oligarch whose company was cited in a major New York money laundering case now being probed by members of Congress.

A Guardian investigation has established a series of overlapping ties and relationships involving alleged Russian money laundering, New York real estate deals and members of Trump’s inner circle. They include a 2015 sale of part of the old New York Times building in Manhattan involving Kushner and a billionaire real estate tycoon and diamond mogul, Lev Leviev.

The ties between Trump family real estate deals and Russian money interests are attracting growing interest from the justice department’s special counsel, Robert Mueller, as he seeks to determine whether the Trump campaign collaborated with Russia to distort the outcome of the 2016 race. Mueller has reportedly expanded his inquiry to look at real estate deals involving the Trump Organization, as well as Kushner’s financing.

Kushner will go before the US Senate intelligence committee on Monday in a closed session of the panel’s inquiry into Russian interference in the election in what could be a pivotal hearing into the affair.

Leviev, a global tycoon known as the “king of diamonds”, was a business partner of the Russian-owned company Prevezon Holdings that was at the center of a multimillion-dollar lawsuit launched in New York. Under the leadership of US attorney Preet Bharara, who was fired by Trump in March, prosecutors pursued Prevezon for allegedly attempting to use Manhattan real estate deals to launder money stolen from the Russian treasury.

The scam had been uncovered by Sergei Magnitsky, an accountant who died in 2009 in a Moscow jail in suspicious circumstances. US sanctions against Russia imposed after Magnitsky’s death were a central topic of conversation at the notorious Trump Tower meeting last June between Kushner, Donald Trump Jr, Trump campaign manager Paul Manafort and a Russian lawyer with ties to the Kremlin.

Don Jr and Manafort have been called to testify before the Senate judiciary committee on Wednesday, at which they are certain to face questions about the Trump Tower encounter.

Two days before it was due to open in court in May, the Prevezon case was settled for $6m with no admission of guilt on the part of the defendants. But since details of the Trump Tower meeting emerged, the abrupt settlement of the Prevezon case has come under renewed scrutiny from congressional investigators.

Four Russians attended the meeting, led by Natalia Veselnitskaya, a lawyer with known Kremlin connections who acted as legal counsel for Prevezon in the money laundering case and who called the $6m settlement so slight that “it seemed almost an apology from the government”. Sixteen Democratic members of the House judiciary committee have now written to the justice department in light of the Trump Tower meeting demanding to know whether there was any interference behind the decision to avoid trial.

Constitutional experts are also demanding an official inquiry. “We need a full accounting by Trump’s justice department of the unexplained and frankly outrageous settlement that is likely to be just the tip of a vast financial iceberg,” said Laurence Tribe, Harvard University professor of constitutional law.

Separately, the focus of investigators on Trump family finances stem from the vast flow of Russian wealth that has been poured into New York real estate in recent years. As Donald Trump Jr put it in 2008, referring to the Trump Organization: “We see a lot of money pouring in from Russia.”

Among the overlapping connections is the 2015 deal in which Kushner paid $295m to acquire several floors of the old New York Times building at 43rd street in Manhattan from the US branch of Leviev’s company, Africa Israel Investments (AFI), and its partner Five Mile Capital. The sale has been identified as of possible interest to the Mueller investigation as Kushner later went on to borrow $285m in refinancing from Deutsche Bank, the German financial house that itself has been embroiled in Russian money laundering scandals and whose loans to Trump are coming under intensifying scrutiny.

Court documents and company records show that AFI was cited in the Prevezon case as a business partner of the defendants. In 2008, Prevezon entered a partnership with AFI in which Prevezon bought for €3m, a 30% stake in four AFI subsidiaries in the Netherlands. Five years later, AFI tried to return the money to the Russian-owned company, but it was intercepted and frozen by Dutch authorities at the request of the US government as part of the Prevezon money-laundering probe.

In Manhattan, Leviev’s firm also sold condominiums to Prevezon Holdings from one of its landmark developments at 20 Pine Street, just a few blocks from Wall Street.

Real estate brochures describe the lavish interior decor of the condominiums, replete with bathrooms bedecked in stone and exotic woods, and boasting “the ultimate in pampering; a sybaritic recessed rain shower”. The 20 Pine Street apartments that Leviev sold to Prevezon were later frozen by US prosecutors seeking to block the flow of what they alleged to be money stolen from the Russian treasury and laundered through New York real estate.

Prevezon’s 20 Pine Street apartments and €3m in assets were all released as part of the settlement in May.

The Guardian contacted both Kushner and Leviev for comment, but they did not immediately respond.

The pursuit of Prevezon Holdings for alleged money laundering took on enormous political significance as it unfolded. For the prosecutors, it was a test case over suspicious Russian money flows designed to show the US was serious about going after money launderers. For the Russians, it was an opportunity to push back against stringent US sanctions that had long infuriated the Kremlin.

In court documents, US prosecutors accused Prevezon and its sole shareholder, Denis Katsyv, of participating in the laundering of proceeds of the vast tax fraud that stole $230m from the Russian treasury and moved it out of the country in chunks. Prevezon was alleged to have received some of the fraudulent spoils through a network of shell companies, hiding the money by investing in Manhattan real estate including the Leviev condominiums in 20 Pine Street.

Prevezon and Katsyv have consistently denied any involvement in money laundering and have dismissed the lawsuit as “ill-conceived”. In a statement released at the time of the settlement, they said they had “no involvement in or knowledge of any fraudulent activities”.

Magnitsky discovered the massive tax fraud, said to be one of the largest in Vladimir Putin’s Russia, in 2007. After he blew the whistle on the scam, he was arrested by the same officials whom he had accused of covering up the racket and imprisoned, dying in jail having been denied medical treatment.

Magnitsky’s death led to a political backlash in the US that in turn spawned tough sanctions on Russia, known as the Magnitsky Act. Russian individuals associated with the lawyer’s demise and other human rights abuses were banned entry to the US.

Veselnitskaya not only acted as Prevezon’s Russian counsel in the money-laundering case, she also was a leading lobbyist against the Magnitsky sanctions. She raised the subject prominently at the meeting in Trump Tower with Don Jr and Kushner, though according to Veselnitskaya the president’s son-in-law left after 10 minutes.

By the time of the Trump Tower meeting, Veselnitskaya was already personally acquainted with Russia’s powerful prosecutor general, Yuri Chaika, and her lobbying against the Magnitsky sanctions had drawn significant attention in government circles.

“Natalia’s main role was coordinating, including regular coordination with Chaika, whom she knew personally,” said a source acquainted with the Prevezon case.

Veselnitskaya told the Guardian: “My meeting with Trump’s son was a private meeting; nobody in the government had anything to do with it.” She declined to answer a follow-up question about whether and how she knew Chaika.

Jamison Firestone, the founder of the Russian law firm that employed Magnitsky at the time that he exposed the fraud, said that Veselnitskaya clearly intended to use the Trump Tower meeting to lobby against the Magnitsky sanctions. “They really made it a state priority to get rid of these sanctions,” he said.

Debbie Wasserman Schultz, the Smashed Hard Drives and the FBI

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EXCLUSIVE: FBI Seized Smashed Hard Drives From Wasserman Schultz IT Aide’s Home

FBI agents seized smashed computer hard drives from the home of Florida Democratic Rep. Debbie Wasserman Schultz’s information technology (IT) administrator, according to an individual who was interviewed by Bureau investigators in the case and a high level congressional source.

Pakistani-born Imran Awan, long-time right-hand IT aide to the former Democratic National Committee (DNC) Chairwoman, has since desperately tried to get the hard drives back, the individual told The Daily Caller News Foundation’s Investigative Group.

The congressional source, speaking on condition of anonymity because of the sensitivity of the probe, confirmed that the FBI has joined what Politico previously described as a Capitol Police criminal probe into “serious, potentially illegal, violations on the House IT network” by Imran and three of his relatives, who had access to the emails and files of the more than two dozen House Democrats who employed them on a part-time basis.

Related reading on the same case: Democrats Version of Vetting, Ethics Violations and Terror

Capitol Police have also seized computer equipment tied to the Florida lawmaker.

Awan’s younger brothers, Abid and Jamal, his wife, Hina Alvi, and Rao Abbas, Imran’s best friend, are also under investigation. There have been no arrests in the case.

There is also evidence of financial schemes that extend beyond the Capitol Police’s purview and may expand to Pakistan, where Imran spends significant portions of the year.

Speaker of the House Paul Ryan said in March that the Capitol Police are “getting the kind of technical assistance they need to do that. This is under an active criminal investigation, their capabilities are pretty strong but, they’re also able to go and get the kind of help they need from other sources.”

The brothers’ stepmother independently filed court documents in Virginia accusing the brothers of wiretapping and extorting her.

Soon after Imran began working for Wasserman Schultz in 2005, his two brothers and two of their wives — plus Abbas and another friend — began appearing as IT staffers on the payrolls of other House Democrats. Collectively, the Awan group has been paid $4 million since 2009.

Fellow IT staffers interviewed by TheDCNF said the Awans were often absent from weekly meetings and email exchanges. One of the fellow staffers said some of the computers the Awans managed were being used to transfer data to an off-site server.

Shortly after the criminal probe was revealed in February, Imran abruptly moved out of his longtime home on Hawkshead Drive in Lorton, Va., and listed it for rent on a website that connects landlords with military families.

One of new tenants — a Marine Corps veteran married to a female Navy Officer — said he found “wireless routers, hard drives that look like they tried to destroy, laptops, [and] a lot of brand new expensive toner.”

The tenants called the Naval Criminal Investigative Service, and not long after, FBI agents arrived together with the Capitol Police to interview them and confiscate the equipment. The Marine spoke on condition of anonymity because of concerns for his wife’s naval career, saying she doesn’t want to be associated with a national security incident.

“It was in the garage. They recycled cabinets and lined them along the walls. They left in a huge hurry,” the Marine said. “It looks like government-issued equipment. We turned that stuff over.”

Wasserman Schultz resigned as DNC chief in July 2016 after the committee’s IT system was hacked. She has since refused to fire Imran despite learning that he is a target of a criminal investigation.

The Marine said Imran wanted the hard drives back so desperately that he threatened to sue the renter for stealing them.

“It was unbelievable. I don’t know where they get off thinking they’re going to sue us for items we have no obligation to hold onto,” he said.

Imran came to the house for the items “three to four times,” but the Marine wouldn’t let him enter.

“Their lawyer contacted us today via email and said we owed $350 in late charges and the items he left in the house,” the Marine said.

The Marine heard about the House investigation on the radio, and by that time, he had noticed other bizarre signs of desperation from his landlord.

“When we first moved in, a mailman came with certified mail from the House of Representatives. We were trying to be nice and signed for it. They lost their shit, saying ‘why did you sign for it, this is illegal!’ It was certified from the [Chief Administrative Officer of the House],” he said.

“The postman came a second time with a certified letter and I called Imran on the spot, asking ‘what do you want me to do.’” He said ‘just send him away, I’m homeless.’ They refused to forward their mail.”

Imran’s brother Abid has also been evasive about his location, failing to provide an accurate address for delivery of court materials in a lawsuit in which he is accused of defrauding the brothers’ stepmother. Imran’s wife, Hina, has traveled to Pakistan since the probe was revealed, according to neighbors.

Wasserman Schultz has demanded return of a laptop seized by the Capitol Police because it was purportedly used by Imran and was found hidden in a vacant office. The Florida Democrat used a Capitol Police budget hearing to threaten “consequences” for them if the laptop wasn’t returned.

On Thursday it was reported that police have not examined its contents because of the invocation of the Constitution’s “Speech and Debate clause,” and after months of refusal, her lawyer is now “negotiating” access to the data on yet-to-be-determined terms.

Members have been unusually mum about the apparent cybersecurity breach, especially given the pattern of cyberattacks on other government and political institutions.

The Marine expressed disgust with the muted reaction, saying “I served in the Marine Corps for 14 years; if I downloaded files to an offsite server, I’m going to prison for a lot of years.”

He implied he’s a Democrat but said when it comes to national security “political ideology doesn’t matter.”

He believes “there’s no way they could get this far without help” from some of the Democratic members of Congress for whom the brothers worked. Other Democrats have ignored a major security breach because it could look like a “black eye” in that they failed to vet the Pakistanis, he said.

“He’s dangerous. This is a crime syndicate that has successfully indicated Congress,” he said.

“If Donald Trump and the Republicans had hired foreign nationals to be their top IT guys and somehow their congressional files had been compromised, this would have been all over the news,” he continued.

A Bureau spokesman said the “FBI does not have anything to provide on this and I will still have to refer you to [Capitol Police] for any public comment.”

 

Kushner’s Chinese EB-5 Investment Ploy

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Exclusive: Jared Kushner’s White House connection still being used to lure Chinese investors

CNN: Jared Kushner’s status as a top aide to President Donald Trump was used to lure Chinese investors to his family’s New Jersey development, even after his family’s company apologized for mentioning his name during a sales pitch in May, CNN has found.

References to Kushner are part of online promotions by two businesses that are working with Kushner Companies to find Chinese investors willing to invest in the 1 Journal Square development in exchange for a US visa.
The promotions are posted in Chinese and refer to Kushner Companies as “real estate heavyweights,” going on to mention “the celebrity of the family is 30-something ‘Mr. Perfect’ Jared Kushner, who once served as CEO of Kushner Companies.”
One posted online in May by the company US Immigration Fund, a private business based in Florida, also contains a reference to Kushner’s appearance on the cover of December’s Forbes Magazine, under the headline “This guy got Trump elected.” The post was removed shortly after CNN contacted the company for comment.

For US Immigration Fund’s WeChat page: click here 

 The promotions are aimed at bringing in investors who pay at least $500,000 apiece and in exchange get US visas, and potentially green cards, for themselves and their families if the development meets certain criteria. The deals are part of a legal US government program called EB-5, which grants up to 10,000 immigrant visas per year.
One webpage posted in March by Chinese company Qiaowai that remains on the company’s page on the popular Chinese social media site WeChat mentions Trump and suggests he supports the program: “Even some members of Trump’s family have participated in the growth of the EB-5 program … the “Kushner 88″ panoramic New Jersey apartment project … The lead developer on the now-completed project was Kushner Companies which is linked to Trump’s son-in-law, Jared Kushner.” It goes on to say, “Given this, in the Trump era, the EB-5 program is likely to receive support and be expanded.”

From Qiaowai WeChat page: click here

 A Kushner Companies spokesperson, in response to CNN’s questions about the webpages, said “Kushner Companies was not aware of these sites and has nothing to do with them. The company will be sending a cease and desist letter regarding the references to Jared Kushner.”
A former White House ethics expert tells CNN the EB-5 program already raises a potential government-backed quid pro quo — favorable immigration status in exchange for investment dollars. And he says any use of the President’s son-in-law as a marketing tool is ethically unacceptable.
“What is not authorized is any arrangement where someone gets preference for their visa if they give money to a company that is controlled by the family of a United States government official,” said Richard Painter, a former chief ethics lawyer for President George W. Bush.
“And unfortunately,” says Painter, “that implication was made in the selling efforts for this project.”
Painter is referring to an investment “road show” that Nicole Meyer attended in May in Beijing. Meyer, the sister of Jared Kushner, was speaking at an event in which she was trying to attract wealthy Chinese investors to the 1 Journal Square project.
During the presentation, Meyer reminded investors of her brother’s recent role in American politics: “In 2008, my brother Jared Kushner joined the family company as CEO,” Meyer told a crowd, adding he “recently moved to Washington to join the administration.”
The comments coincided with a visual display, which included a photograph of Trump.
Meyer’s comments led to strong criticism that the Kushner family was using Jared Kushner to attract investment dollars through the EB-5 program.
The company quickly apologized, and separately, Jared Kushner’s attorney released a statement saying Kushner had no knowledge of the promotion and was no longer involved financially in the 1 Journal Square project.
“As previously stated, he will recuse from particular matters concerning the EB-5 visa program,” Kushner’s attorney, Blake Roberts, said in a statement.
US Immigration Fund, a company based in Jupiter, Florida, seemed to blame others for the post, saying in a statement, “The post in question was originally posted by a 3rd party immigration consultancy firm on its company WeChat and was reposted to USIF’s WeChat by the company’s Chinese social media consultant. The post is several months old and hasn’t had any interaction by followers, however, it has since been removed from the company WeChat.”
Qiaowai, a Chinese immigration company that organized the events where Kushner’s sister spoke, did not respond to CNN’s request for comment. The webpage on its WeChat site that references Kushner remained online as of Wednesday afternoon.
EB-5 investment advisor Michael Gibson tells CNN it makes sense that the companies marketing the Kushner project in China have continued to use Kushner’s name to promote their project, because he says Chinese investors are drawn to developments they believe are backed by individuals with government connections: “They want to make sure they get the green card,” Gibson told CNN. “So if they see a public official associated with the project that gives them the impression that this project is safe enough for them to invest in.”
The EB-5 program has faced criticism for straying from its original intent. The program was designed by Congress in the 1990s to bring foreign money into rural and blighted urban areas to spark development and job growth.
After the economic recession of 2008, the program began expanding to become a low-interest source of income for developers who have used EB-5 investment money to fund high-end residential towers and retail projects in areas like Manhattan, Jersey City, New Jersey, and Miami.
Gary Friedland, a scholar in residence at New York University’s Stern School of Business who has studied the program, said developers have found ways to manipulate census tract data to place their projects within “targeted employment areas,” which legally reduces the amount investors must pay — down from $1 million to $500,000 — to qualify for EB-5 benefits.
Emails obtained by CNN from the New Jersey Department of Labor and Workforce Development show a representative for US Immigration Fund in January asked a New Jersey official to issue a letter certifying the Kushner’s 1 Journal Square as within an area with low employment.
After an official responded that the project did not qualify due to its location within a census tract with an unemployment rate below the national average, a consultant for another company asked that the state combine six census tracts together. Days later, the state approved the Kushner Companies’ project, documents show.
Friedland says practices like this allow luxury developers to take advantage of incentives meant to lure investments to lower-income areas: “The money flows to affluent areas, not the targeted areas Congress intended to benefit,” he said.
On June 1, three Democratic lawmakers wrote a letter to Kushner Companies current president Laurent Morali asking for an explanation on the company’s ongoing use of the EB-5 program and the nature of its relationships with Qiaowai and US Immigration Fund.
Kushner Companies has not yet responded to the letter, according to the office of Sen. Patrick Leahy, D-Vermont.