Jared Kushner’s family real estate business received hundreds of millions of dollars in loans from two giant investment firms after he held meetings with their executives in the White House last year, it was reported on Wednesday.
Kushner Companies received over $500million from Apollo Global Management and Citigroup, according to The New York Times.
The loan payments will likely raise ethics questions since White House officials are typically not permitted to use their positions in order to benefit their personal businesses.
Kushner’s business received $184million from Apollo in early 2017 after a series of meetings he held at the White House with the equity firm’s founder, Joshua Harris.
Jared Kushner’s family real estate business received hundreds of millions of dollars in loans from two giant investment firms after he held meetings with their executives in the White House last year, it was reported on Wednesday
Harris was reportedly at the White House frequently to advise the administration on infrastructure policy.
The loan that his company gave to Kushner’s firm was to refinance a mortgage on a skyscraper that he owns in Chicago.
In the spring of 2017, Kushner Companies and one of its partners received an even larger loan – $325million from Citigroup.
That loan was to help finance a number of office buildings in Brooklyn, according to the Times.
Citigroup extended the loan to Kushner Companies after Jared Kushner met at the White House with the firm’s CEO, Michael Corbat.
Abbe Lowell, Kushner’s lawyer, did not dispute that the meetings took place.
A spokesperson for Lowell, Peter Mirijanian, said Kushner ‘has met with hundreds of business people.’
He said Kushner ‘has taken no part of any business, loans or projects with or for’ Kushner Companies since he joined the Trump administration.
Kushner’s business received $184million from Apollo in early 2017 after a series of meetings he held at the White House with the equity firm’s founder, Joshua Harris (above)
Kushner is considered a top aide to the president who has an extensive portfolio that includes Israeli-Palestinian peace; relations with Canada, Mexico, and China; and streamlining government services.
A spokesperson for Kushner Companies denied that Jared Kushner’s White House role played a part in securing the loans.
‘Stories like these attempt to make insinuating connections that do not exist to disparage the financial institutions and companies involved,’ the spokesperson said.
A spokesperson for Apollo also denied there was any impropriety in the equity firm’s decision to extend the loan.
The spokesperson said that Harris was not involved in the decision and that the loan ‘went through the firm’s standard approval process.’
Citigroup said that the loan to Kushner Companies was negotiated with another real estate developer and that the payment had no connection to Jared Kushner’s position in the White House.
Last year Kushner, who is married to Trump’s daughter Ivanka Trump, resigned from Kushner Cos and sold his stake to a family trust as part of an effort to avoid conflicts of interests in his White House role.
The private real estate company owns or partially owns buildings in New York and New Jersey.
In the spring of 2017, Kushner Companies and one of its partners received an even larger loan – $325million from Citigroup, which extended the loan after Jared Kushner met at the White House with the firm’s CEO, Michael Corbat (above)
Kushner’s finances have attracted scrutiny from authorities since he came to the White House.
New York’s state banking regulator asked Deutsche Bank AG and two other lenders for information on their relationships Jared Kushner and his family’s real estate company, a person familiar with the matter told Reuters.
The New York State Department of Financial Services (DFS) made the requests to Deutsche Bank, Signature Bank and New York Community Bank for information on loans and other financial arrangements including lines of credit and loan guarantees a week ago, the person said.
The regulator also asked for information related to other family members, the person said.
Christine Taylor, a spokeswoman for Kushner Cos, said the company had not received a copy of any letter from the regulator. She described Kushner Cos as a ‘multibillion dollar enterprise that is extremely financially strong.
The loan that Apollo gave to Kushner’s firm was to refinance a mortgage on a skyscraper (above) that Kushner owns in Chicago
‘Prior to our CEO voluntarily resigning to serve our country, we never had any type of inquiries,’ Taylor said in an email.
‘These types of inquiries appear to be harassment solely for political reasons.’
As New York’s bank regulator, DFS supervises the New York branch of Deutsche Bank, Germany’s flagship lender, along with the two state-chartered lenders.
If DFS finds the loans somehow violate banking law, it could fine the banks or take other corrective action with regard to their business practices, said New York attorney Daniel Alter, former general counsel at DFS.
If the regulator finds potential criminal activity by either the borrowers or the banks, it could also refer the matter to prosecutors for further investigation, Alter said.
Kushner lost his interim top-secret security clearance, two US officials familiar with the matter said on Tuesday.