Justice Department prosecutors are trying to secure a plea deal with Jeffrey Yohai, Paul Manafort’s former son-in-law, in an investigation into Yohai’s real estate dealings, the Wall Street Journal reported Thursday morning.
The Journal cited unnamed people familiar with the matter.
The criminal investigation into Yohai by the DOJ and Los Angeles U.S. attorney’s office is separate from the probe into Manafort by special counsel Robert Mueller. However, Manafort is linked to the Yohai investigation, since he was an investor in Yohai’s real estate projects.
Federal investigators have been looking into real estate purchases made by Yohai through shell companies. He bought the properties with a loan from private lender Genesis Capital, using Manafort’s home in New York as collateral, USA Today reported in October. Yohai had planned to renovate and flip the properties, but his plan did not work out and at least one of the companies has now filed for bankruptcy.
In a September court filing, Yohai accused Manafort of misleading the court in a legal battle over how Manafort would purchase the projects out of bankruptcy.
It is not clear what charges federal prosecutors would like Yohai to plea guilty to, according to the Wall Street Journal.
Yoahi’s lawyer, Aaron May, told the Journal in a statement that Yohai “has not been charged with any crime nor has he entered into any plea agreements.”