Report: Kushner Made Deal With Firm Cited In Russia Money-Laundering Case

FILE - In this Monday, June 5, 2017 file photo, senior adviser to President Donald Trump Jared Kushner, right, and Ivanka Trump, the daughter of President Donald Trump, sit in the front row in East Room of the White ... FILE - In this Monday, June 5, 2017 file photo, senior adviser to President Donald Trump Jared Kushner, right, and Ivanka Trump, the daughter of President Donald Trump, sit in the front row in East Room of the White House in Washington. Donald Trump’s eldest son, son-in-law and then-campaign chairman met with a Russian lawyer shortly after Trump won the Republican nomination, in what appears to be the earliest known private meeting between key aides to the president and a Russian. Representatives of Donald Trump Jr. and Jared Kushner confirmed the June 2016 meeting to The Associated Press after The New York Times reported Saturday, July 8, 2017 on the gathering of the men and Russian lawyer Natalia Veselnitskaya at Trump Tower. (AP Photo/Carolyn Kaster, File) MORE LESS
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Hours before Jared Kushner stepped out to a podium in front of the White House on Monday and said he has never “relied on Russian funds” for his businesses, The Guardian reported that he made a deal with a real estate mogul linked to a Russian firm accused in a multimillion-dollar money laundering scheme.

The President’s son-in-law and senior adviser paid $295 million in 2015 to acquire several floors of a Manhattan office tower from the U.S. branch of a company owned by the Soviet-born Israeli businessman Lev Leviev. Kushner entered into an agreement with Leviev’s Africa Israel Investments (AFI) to purchase the floors of the old New York Times building.

According to the Guardian, AFI was cited as a business partner of Russian-owned real estate company Prevezon Holdings in a lawsuit alleging that Prevezon laundered millions of dollars through Manhattan real estate. Kushner and Leviev did not respond to the Guardian’s request for comment.

A month before Election Day, Kushner also took out a $285 million loan from Deutsche Bank as part of a refinancing package for that some property—a transaction now under scrutiny by federal investigators looking into both Kushner and the President’s finances.

Kushner stated both in written testimony submitted to Congress and on camera Monday that he has “not relied on Russian funds” to support his family real estate company or other business interests.

A link between Prevezon and the Trump campaign came to light via a recently uncovered June 2016 meeting that had been billed to Donald Trump Jr., the President’s eldest son, as an opportunity to obtain damaging information about Hillary Clinton as part of a Russian government effort to help his father’s campaign. Kushner attended the meeting with Russian lawyer Natalia Veselnitskaya and Russian lobbyist Rinat Akhmetshin, both of whom worked for Prevezon’s owner, Denis Katsyv.

Prevezon was accused of trying to use Manhattan properties to launder money stolen from the Russian treasury. Whistleblower Sergei Magnitsky uncovered the alleged scheme, and subsequently died in a Moscow prison under mysterious circumstances. Akhmetshin and Veselnitskaya have lobbied heavily on Katsyv’s behalf against the U.S. sanctions bill that carries Magnitsky’s name, as TPM previously reported. They have also pushed for the reinstatement of a program that allowed U.S. citizens to adopt Russian children, which was abolished by Russian President Vladimir Putin in response to the Magnitsky Act.

Kushner said in his written statement that he knew nothing of the June meeting’s purpose or participants ahead of time, and that he skipped out early after deciding it was a “waste of time.” His attendance at the meeting as well as his business dealings are among the areas of interest of federal and congressional investigators probing Russia’s interference in the 2016 election.

The U.S. settled its case against Prevezon and associated companies in May for a scant $6 million.

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Notable Replies

  1. Uh oh. Is this another one of those foreign contacts Jared “forgot” on his security form?

  2. I urge everyone to note the careful, lawyerly claim that Kushner “didn’t rely on” Russian financing.

    If he could have claimed that he neither solicited nor accepted any Russian financing, he would have done so.

    “Didn’t rely on” leaves open the possibility that he sought and received big money from Russian sources, but will try to say he wasn’t “relying on” that financing since he had other financing options as well.

    Looks to me like his lawyers were careful to leave a loophole that they could later drag a Russian freighter full of laundered rubles through, if need be. Could be because they already know they’ll have to, or could be because they just know they can’t trust their client to tell them the whole truth up front.

  3. Avatar for tena tena says:

    Like father like son like father in law like son in law…

  4. That was the thing I noticed when reading accounts of the statement this morning.

    Can you imagine a city alderman somewhere defending himself at a town meeting from accusations over bribes on a major city land deal by saying he didn’t “rely” on bribery funds to pay off the home mortgage on his mansion?

    H’d be lucky to make it out the door without being lynched, yet Kushner strolls out today and piously proclaims his innocence moments after testifying in secret. It’s utterly disgusting.

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