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It could be that the Forbes list of the richest in the world is on the top of Kushner’s desk and others are working the phones. When payments are due in the billion dollar range comes due within months, panic sets in when there are no prospects to meet that demand.
Some of these foreign trips made by Kushner have dual purposes such that they are labeled and envoys where they are contrary to State Department diplomatic operations and Secretary of State Tillerson is working to terminate on the fly envoys that are not coordinated with the agency’s personnel.
‘Jared Kushner, Donald Trump’s son-in-law and top adviser, wakes up each morning to a growing problem that will not go away. His family’s real estate business, Kushner Cos., owes hundreds of millions of dollars on a 41-story office building on Fifth Avenue. It has failed to secure foreign investors, despite an extensive search, and its resources are more limited than generally understood. As a result, the company faces significant challenges.
Over the past two years, executives and family members have sought substantial overseas investment from previously undisclosed places: South Korea’s sovereign-wealth fund, France’s richest man, Israeli banks and insurance companies, and exploratory talks with a Saudi developer, according to former and current executives. These were in addition to previously reported attempts to raise money in China and Qatar.
Jared Kushner
Photographer: Andrew Harrer / Bloomberg via Getty Images
The family, once one of the largest landlords on the East Coast, sold thousands of apartments to finance its purchase of the tower in 2007 and has borrowed extensively for other purchases. They are walking away from a Brooklyn hotel once considered central to their plans for an office hub. From other properties, they are extracting cash, including tens of millions in borrowed funds from the recently acquired former New York Times building. What’s more, their partner in the Fifth Avenue building, Vornado Realty Trust, headed by Steve Roth, has stood aside, allowing the Kushners to pursue financing on their own.
Kushner Cos. says it will prevail. Laurent Morali, the president, said the company has a variety of contingency plans for the building and its broader portfolio will allow it to sustain any setback. He said he is encouraged by the interest of several potential investors, but declined to name them.
“Reports that portray it as a distressed situation are just not accurate for the building or for the company,” Morali said in an interview on the 15th floor of the building, 666 Fifth Avenue.
But there are challenges all around. The mortgage on their tower is due in 18 months. This has led to concerns that Kushner could use—or has perhaps already used—his official position to prop up the family business despite having divested to close relatives his ownership in many projects to conform with government ethics requirements. Federal investigators are examining Kushner’s finances and business dealings, along with those of other Trump associates, as they probe possible collusion between the Kremlin and the Trump campaign. Kushner has already testified twice before closed congressional committees and denies mixing family business with his official role.
This article, which describes new details of the company’s troubled finances and its overseas fundraising efforts, is based on a review of thousands of pages of financial documents and interviews with more than two dozen executives, business partners, real estate agents, deal participants and analysts. They spoke on condition of anonymity to discuss private deals. Some feared legal reprisals or other retaliation from one of the country’s most powerful families.
The portrait that emerges is that of a real estate company established by a pair of penniless Holocaust survivors, its extraordinary expansion by their children, the rise of a grandson to a top White House role and a big bet that has complicated its financial future.
It was 2006—the height of the real-estate market boom—when Kushner Cos. agreed to buy 666 Fifth Avenue for $1.8 billion, then a record for a Manhattan building. All of it was borrowed except for $50 million. The company still holds half of a $1.2 billion mortgage, on which it hasn’t paid a cent. The full amount is due in February 2019.
The strain has become increasingly evident across their holdings. One person familiar with the company’s finances describes the tower, with its low ceilings and outdated floor plan, as the Jenga puzzle piece that could set the empire teetering.
Continue the long read here with graphics to understand the names, the travels, this history and why Robert Mueller is investigating some of the connective tissue going beyond the Russian bank(s) and where some criminal activity is being investigated.’
In part: While the US and Japan have conducted ballistic missile defense exercises and both have Aegis-equipped ships capable of shooting down some ballistic missiles, it would be extremely difficult for the US or Japan to intercept a North Korean intermediate or intercontinental ballistic missile in flight over Japan toward a target such as Guam. The Aegis system is capable of intercepting shorter-range missiles in mid-course with the SM-3 missile, and it also provides “terminal phase” defense with the SM-2 missile closer to the ballistic missile’s target. But it’s uncertain whether either system would be successful against a “pop up” attack with an ICBM.
The SM-3 Block IIA has an operational range of about 1,350 miles. But range isn’t the issue as much as the speed required to intercept. If a North Korean missile were fired to an altitude of over 500 kilometers, success in a shoot-down would depend greatly on how quickly the missile was tracked and the timing of an interceptor launch. Based on the time/distance envelopes for SM-2 and SM-3 missile intercepts calculated from Joan Johnson-Freese (a professor at the Naval War College and a lecturer at Harvard University) and Ralph Savelsberg (an assistant professor at the Netherlands Defence Academy), an Aegis defender would only have a few minutes to get off a shot at an ICBM launch from North Korea. Aegis-equipped destroyers and cruisers would have to be dangerously close to the North Korean coast to get a chance to strike an ICBM in “boost” phase as it rose and could be vulnerable to North Korean submarines if an actual attack were planned. Read more here.
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North Korea has taken steps in recent months to disguise their missile-related activities, including fueling rockets inside structures, outside of aerial view.
There are three basic ways the U.S. gathers most of its foreign intelligence: collecting information from human spies; intercepting electronic communications; and observing what’s happening on the ground, mainly with satellites.
The National Security Agency, which hacks computers and intercepts email, has had some success pulling bits and bytes out of North Korea, former officials say, but North Korea is much less forgiving than most of its targets. That’s because most of the country is not connected to the internet and few people have cellphones. To the extent that the regime communicates electronically, it has made increasing use of encryption, experts say.
“If you look at that satellite picture [of Asia] of the lights at night from the satellite, there is one dark area with no lights on, and that is North Korea,” Coats told Congress. “Their broadband is extremely limited. So using that as an access to collection — we get very limited results.” More here.
N. Korea must be met with stronger action: U.S. experts
WASHINGTON, Aug. 29 (Yonhap) — North Korea must be met with stronger action if it is to be stopped from triggering a catastrophe on the Korean Peninsula, U.S. experts said Tuesday.
The firing of an intermediate-range ballistic missile over Japan earlier in the day was a rare hostile act that increased the chances of a military confrontation in the volatile region.
The United States and South Korea must take decisive action to demonstrate that the regime in Pyongyang will not be allowed to get away with any more provocations, and China, they noted, will have to play a key role in that effort.
KCNA has released photos of the HS-12 launch that overflew Japan
“China has the power to increase the pressure on North Korea and must take steps towards doing so,” said Donald Manzullo, president of the Korea Economic Institute of America. “The longer China continues to refrain from using all of the leverage at its disposal to convince North Korea to return to talks, the more likely North Korea is to miscalculate.”
Beijing is Pyongyang’s only major ally and key benefactor. U.S. President Donald Trump and others have urged China to do more to rein in its wayward neighbor, but Beijing has refused to bear responsibility for the North Korean nuclear problem.
Bruce Bennett, a senior researcher at RAND Corp., said the latest launch could have resulted in part from a lack of action by the U.S. and South Korea against what was seen as a low-intensity provocation Saturday. North Korea launched three short-range ballistic missiles then.
“If the (U.S. and South Korea) fail to act seriously against (Tuesday’s) test, the North may feel that it can commit an even more serious provocation, while the exercises are ongoing, perhaps even another intercontinental ballistic missile test or a nuclear weapon test,” he said in an email.
Bennett was referring to the Ulchi Freedom Guardian military exercise currently under way between South Korea and the U.S. Analysts have said the back-to-back provocations were staged in response to the annual drills, which Pyongyang views as rehearsals for an invasion.
North Korea may also believe it has China’s backing because Beijing recently proposed the allies cancel their drills in exchange for a halt to North Korea’s missile and nuclear testing, he noted.
Robert Manning, a senior fellow at the Atlantic Council, said the U.N. Security Council is likely to adopt tougher sanctions against Pyongyang.
“There may be other steps Trump is considering to take unilaterally, whether cyber or kinetic. The key question is: How far is China prepared to go?” he said in a separate email. “But even if effective, sanctions will take time to have an impact — nine to 12 to 15 months. The danger is that this cycle of tensions rises to the point where the U.S. seeks more immediate results. That could be catastrophic.”
The North Korean single stage Hwasong-12 is a liquid fueled IRBM of estimated 4500 km range.
The Hwasong-2 appears to be a stretched improved version of the Hwasong-10 IRBM and appears to be single staged.
The missile was first shown in the 2017 military parade and has conducted its first successful flight after three failures in May 2017 from a site near Kuosong, likely Panghyon Air Base, on a lofted short range trajectory of 787 km range and 2111 km apogee height, which hints to a maximum range of about 4500 km.
For more information regarding the DPRK airfields and what is underground at those airfields across the country, go here.
Forbes: Felix Sater is not a name that has come up much during the presidential campaign. That he has a colorful past is an understatement: The Russian-born Sater served a year in prison for stabbing a man in the face with a margarita glass during a bar fight, pleaded guilty to racketeering as part of a mafia-driven “pump-and-dump” stock fraud and then escaped jail time by becoming a highly valued government informant.
He was also an important figure at Bayrock, a development company and key Trump real estate partner during the 2000s, notably with the Trump SoHo hotel-condominium in New York City, and has said under oath that he represented Trump in Russia and subsequently billed himself as a senior Trump advisor, with an office in Trump Tower.
Seems now some emails are leaking and have been seen by the New York Times:
TheHill: A business associate of President Trump in 2015 told Trump’s longtime lawyer that he would enlist Russian President Vladimir Putin in a proposed real estate deal that he boasted would help Trump win the presidency, according to emails obtained by The New York Times.
In a series of emails to Trump’s lawyer Michael Cohen, the business associate, Felix Sater, argued that building a Trump Tower in Moscow would benefit the businessman’s candidacy.
“I will get Putin on this program and we will get Donald elected,” Sater wrote on Nov. 3, 2015, almost exactly a year before Election Day. “Our boy can become president of the USA and we can engineer it. I will get all of Putins team to buy in on this, I will manage this process.”
The Justice Department is now investigating the Trump campaign’s ties to Moscow, under the authority of special counsel Robert Mueller, as part of the federal investigation into Russian interference in the election.
There is no evidence in the emails that Sater, a Russian immigrant who was then acting as a broker for the Trump Organization, delivered on his promises, according to The Times. The plan for a Trump Tower in Moscow never materialized, and negotiations ended before Trump’s business ties to Russia had become a major campaign issue.
Cohen suggested that the emails were braggadocio.
“He has sometimes used colorful language and has been prone to ‘salesmanship,'” Cohen said in a statement to The Times. “I ultimately determined that the proposal was not feasible and never agreed to make a trip to Russia.”
Sater also claimed to have helped organize a 2006 trip to Moscow for Trump’s daughter Ivanka Trump and son Donald Trump Jr.
“I arranged for Ivanka to sit in Putin’s private chair at his desk and office in the Kremlin,” Sater wrote.
Ivanka Trump told the Times in a statement that she took “a brief tour of Red Square and the Kremlin but I have never met President Vladimir Putin.” Alan Garten, the general counsel of the Trump Organization, said that Sater only happened to be in Moscow at the same time as the two Trump children.
“There was no accompanying them to Moscow,” Garten said.
Trump has long downplayed his relationship to Sater, suggesting under oath in 2013 that he would not recognize him if they were sitting in the same room.
Sater served time in jail after stabbing a man in the face with the stem of a margarita glass during a 1991 bar fight; in 1998, he pleaded guilty to his role in a Mafia-orchestrated stock fraud scheme.
But his sentencing was delayed for years in the latter case while he cooperated with federal law enforcement on other investigations, according to The Washington Post. During that time, he worked in a real estate firm with offices in Trump Tower and in 2010 went to work for Trump directly, carrying a Trump Organization card that identified him as a “senior advisor to Donald Trump.”
After Sater made an August 2016 visit to Trump Tower, Garten told Politico that Sater was not advising the Trump Organization and that the Trump Organization was not seeking business in Russia.
President Trump has repeatedly said that he has no business ties to Russia. In May, the White House released a letter from two of his lawyers saying that his income tax returns do not show income from or debt owed to Russian sources — with the exception of $95 million paid by a Russian billionaire for a Trump-owned estate in Florida and $12.2 million in payments related to holding the Trump-owned Miss Universe pageant in Moscow in 2013.
The Trump Organization on Monday turned over emails to the House Intelligence Committee, which is investigating Russian interference in the election and whether any Trump associates were involved.
On March 7, 2017, CBO issued estimates that extraordinary measures could suffice to meet federal obligations until sometime in the fall of 2017.141 Such estimates are subject to substantial uncertainty due to changes in economic conditions, federal revenue flows, changes in the amounts and timing of federal payments, and other factors. On March 8, 2017, Treasury Secretary Mnuchin notified Congress that he would invoke authorities to use extraordinary measures after March 15, 2017, to ensure continued payment of federal obligations.142 On March 16, 2017, Secretary Mnuchin notified congressional leaders that he had indeed exercised those authorities.143 The debt limit on that date was reset at $19,809 billion.144
In testimony before Congress on May 24, 2017, Administration officials urged Congress to raise the debt limit before its summer recess.145 Office of Management and Budget (OMB) Director Mick Mulvaney stated that the federal receipts were coming in more slowly than projected, which could imply that Treasury’s capacity to meet federal obligations could be exhausted sooner than previously projected.146 A Goldman Sachs analysis found, however, that some major categories of tax receipts had shown stronger growth.147
On June 28, 2017, Treasury Secretary Mnuchin sent a letter to Congress stating that extraordinary measures would be used until September 29, 2017.148 Secretary Mnuchin’s letter did not state that Treasury’s cash reserves or borrowing capacity would be exhausted on that date, but he did describe the need for legislative action by that date as “critical.” Others have estimated that the U.S. Treasury would likely be able to meet federal obligations until sometime in early October 2017.149 Treasury cash balances and borrowing capacity in mid-September, however, are projected to fall well below levels the U.S. Treasury has considered prudent to maintain operations in the face of significant adverse events.150
The Constitution grants Congress the power to borrow money on the credit of the United States—one part of its power of the purse—and thus mandates that Congress exercise control over federal debt. Control of debt policy has at times provided Congress with a means of raising concerns regarding fiscal policies. Debates over federal fiscal policy have been especially animated in recent years. The accumulation of federal debt accelerated in the wake of the 2007-2008 financial crisis and subsequent recession. Rising debt levels, along with continued differences in views of fiscal policy, led to a series of contentious debt limit episodes in recent years.
The 2011 debt limit episode was resolved on August 2, 2011, when President Obama signed the Budget Control Act of 2011 (BCA; S. 365; P.L. 112-25). The BCA included provisions aimed at deficit reduction and allowing the debt limit to rise in three stages, the latter two subject to congressional disapproval. Once the BCA was enacted, a presidential certification triggered a $400 billion increase. A second certification led to a $500 billion increase on September 22, 2011, and a third, $1,200 billion increase took place on January 28, 2012.
Federal debt again reached its limit on December 31, 2012. Extraordinary measures were again used to allow payment of government obligations until February 4, 2013, when H.R. 325, which suspended the debt limit until May 19, 2013, was signed into law (P.L. 113-3). On that date, extraordinary measures were reset, which would have lasted until October 17, 2013, according to Treasury estimates issued in late September 2013. On October 16, 2013, enactment of a continuing resolution (H.R. 2775; P.L. 113-46) resolved a funding lapse and suspended the debt limit through February 7, 2014. On February 15, 2014, a measure to suspend the debt limit (S. 540; P.L. 113-83) through March 15, 2015, was enacted. Once that debt limit suspension lapsed after March 15, 2015, the limit was reset at $18.1 trillion. On October 15, 2015, Treasury Secretary Jacob Lew stated that extraordinary measures would be exhausted no later than November 3, 2015, although a relatively small cash reserve would be on hand. Lower tax receipts and higher trust fund inflows, however, reduced Treasury’s headroom more than had been expected. The Bipartisan Budget Act of 2015 (BBA2015; H.R. 1314; P.L. 114-74), which relaxed certain discretionary spending limits, suspended the debt limit through March 15, 2017.
On March 16, 2017, the debt limit was reset at $19,809 billion and Treasury Secretary Steven Mnuchin notified Congress that he had invoked authorities to use extraordinary measures. CBO estimated that those measures could meet federal obligations until sometime in the fall of 2017, although in May 2017, Administration officials said slower than expected growth in revenues could require earlier action. Some independent analysts still expect that the U.S. Treasury could meet federal obligations until sometime in early October 2017. On June 28, 2017, Treasury Secretary Mnuchin notified Congress that extraordinary measures would be used until September 29, 2017, and urged action before that date.
Total federal debt increases when the government sells debt to the public to finance budget deficits, which adds to debt held by the public, or when the federal government issues debt to certain government accounts, such as the Social Security, Medicare, and Transportation trust funds, in exchange for their reported surpluses—which adds to debt held by government accounts; or when new federal loans outpace loan repayments. The sum of debt held by the public and debt held by government accounts is the total federal debt. Surpluses reduce debt held by the public, while deficits raise it. This report will be updated as events warrant.
In the video two jihadists can be heard speaking Spanish with an Arabic accent and proclaiming: “Allah willing, Al Andalus will become once again what it was, part of the caliphate.” Al Andalus was the name given to the territory of southern and central Spain controlled for more than five centuries by Muslims.
“If you can’t make the hegira (journey or exodus) to the Islamic State, carry out jihad where you are; jihad doesn’t have borders,” says one of the men in the video whose face is uncovered and who is identified by a video title as Abu Lais Al Qurdubi, or Abu Lais “of Cordoba,” the southern Spanish city that was the capital of Al Andalus.
Later, the jihadist adds: “Spanish Christians: don’t forget the Muslim blood spilled during the Spanish inquisition. We will take revenge for your massacre, the one you are carrying out now against the Islamic State.”
His mother Tomasa Pérez, from a Catholic family in Malaga, met Ahram in 1984. In 2014, she left Spain with her six children, including Muhammad, the oldest sibling, to go to Syria and live in territory controlled by the Islamic State.
The name of the other participant in the video is given as Abu Salman Al Andalus (Abu Salman ‘of Andalusia). His face is covered and only his eyes can be seen. He has a rifle on his shoulder.
“We hope that Allah accepts the sacrifice of our brothers in Barcelona. Our war with you will continue until the world ends,” he says.
The jihadist group ISIS declared a worldwide caliphate in 2014 with ISIS leader Abu Bakr al-Baghdadi named as the caliph, or leader of all Muslims worldwide. However, this declaration has been rejected by mainstream Muslims while ISIS has been designated a terrorist organization by the United Nations and many individual countries.
Spanish authorities shared information with Belgium more than a year ago about the alleged cell leader in last week’s Spain attacks, but didn’t have any details at the time to indicate he was dangerous, officials said Thursday.
Abdelbaki Es Satty, an imam who is blamed for recruiting young Muslims in a Catalan town to commit attacks in Barcelona, had served a four-year prison term for drug trafficking in 2012 and had been questioned as early as 2006 in a national police operation against jihadism.
But the Catalan police officer who answered an informal request of information from Belgium in early 2016 didn’t have the complete records on Es Satty, according to the remarks by high ranking police and government officials in Catalonia and interviews conducted by The Associated Press.
The chief of the Interior department in the Catalan regional government, Joaquim Forn, acknowledged Thursday that Belgian police in Vilvoorde made an informal request for information on the imam in 2016, when Es Satty spent three months in the city known for Islamic State group recruiting.
Forn said police gave their Belgian counterparts what they had but at no point had anyone told them Es Satty had been investigated or was dangerous. The exchange was described by another Catalan official, who spoke on condition of anonymity to discuss an informal conversation between two police officers.
Es Satty was one of two suspects that died in a blast at a house in Alcanar on Aug. 16 which disrupted the cell’s plan to set off bombs at high-profile targets in Barcelona.
Following the explosion, other members of the cell carried out attacks with vehicles and knives as weapons on Aug. 17-18 that left 15 dead and more than 120 injured.
Police confirmed on Thursday the identity of the second body found in the house used as an explosives workshop as that of Youssef Aalla. One suspect survived the blast and has been jailed.
A National Court judge also released Salh El Karib, one of the four suspects arrested in the wake of the attacks, because of a lack of evidence that the cybercafe worker was part of the plot.
El Karib lived in Ripoll, the town where the extremist cell was allegedly formed. He used his credit card to purchase plane tickets for another suspect in the case, according to court documents released Thursday. He was reimbursed in cash and was paid an additional 5 euros ($6), the documents said.
The judge saw insufficient evidence to keep him in police custody and ordered his release requiring him to stay in Spain and show up in court once a week while the investigation is open.
Judge Fernando Andreu also freed under similar restrictions another of the suspects Tuesday, once again for lacking proof of his involvement, and sent to jail the other two people arrested after hearing their testimony.
Eight more people connected to the attacks are dead, six of them shot by police.
While the investigation continues and expands beyond Spain’s borders, new revelations on Thursday raised questions about the level of coordination and intelligence sharing between different security forces and departments in Spain.
Both Civil Guard and National Police in Spain are formally in charge of counterterrorism work and have accumulated experience after decades of fighting Basque militants and religious extremism, but Catalonia’s Mossos d’Esquadra regional force has led the response and initial investigation into last week’s attacks in their operational area.
Catalonia, the northeastern region where separatist sentiment runs high, is currently ruled by a coalition of parties that are openly seeking the region’s independence from Spain.
The regional government has bowed to push ahead with a referendum on the issue on Oct. 1 despite the vote being unconstitutional under Spanish laws.
The Mossos’ work has so far won widespread praise, especially in Catalonia. Although the central government and the national law enforcement agencies have publicly acknowledged the Mossos’ success, some officers’ unions have publicly complained about how being excluded from the response and investigation led to missing valuable input.
An officer who leads an independent group of police agents who spoke to The Associated Press on condition of anonymity said that Civil Guard’s experts on explosives would have been key to assess what the cell was doing when their bomb workshop exploded.
Two of the main unions, the Civil Guard’s AUGC and National Police’s SUP, went even further earlier this week by openly criticizing authorities in a joint statement and saying that the decision to sideline them was aimed at “transmitting an image overseas of a ‘self-sufficient’ Catalan state.”
The events highlight “a deficient functioning of communication” between police forces because authorities in Catalonia didn’t have information on a 2007 National Police investigation into a jihadi cell where Es Satty’s name had appeared, their statement says.
“It is evident that if somebody would have alerted us, we would have acted in a different way,” Forns told reporters on Thursday in response to criticism.
Also this week, justice officials revealed that the imam had won an appeal for showing good behavior against an expulsion order handed down in 2015, right after he served time in prison for drug trafficking.
The Valencia local court upheld Es Satty’s appeal because he had found a job and showed determination to re-integrate into society. More here.
KCNA has released photos of the HS-12 launch that overflew Japan
