Loans, real-estate deals draw scrutiny for possible AML issues
The biggest news stories regarding the Trump presidential campaign and its alleged Russia connections focus almost exclusively on who talked to whom and what resulted. But an effort to follow money trails has been occurring, as well. To that end, the Wall Street Journal reported yesterday that prosecutors in the state of New York have issued a subpoena for records from the Chicago-based Federal Savings Bank.
According to the Journal, prosecutors are seeking records related to loans totaling approximately $16 million that were made by the bank to former Trump campaign manager Paul Manafort and his wife immediately after Trump’s election in November and then again in January.
Manafort apparently secured the loans with properties that he owns. The bank, run by a Trump ally and member of the president’s economic advisory panel, is reported to have about $67 million in equity capital, a figure that gained the attention of some given that the Manafort loans account for nearly 24 percent of that capital.
Manafort has not been charged with wrongdoing in any of the investigations in which he is a central figure, but officials have been investigating his various business dealings, especially in real estate, with an eye to determining whether AML requirements and standards may have been violated.
In late June, for example, the New York Times ran an in-depth feature describing Manafort’s various high-value loans related to real-estate purchases, many of which had involved his son-in-law, Jeffrey Yohai. Yohai is the target of a lawsuit alleging Ponzi-type fraud activities.
Simultaneous to inquiries about his financial dealings, shell companies, and real-estate transactions, Manafort is facing new questions about activities related to his work in the presidential campaign.
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