Wednesday, October 17, 2018

Speaking of poop on the carpet...

From January this year:
The former head of his family’s real-estate empire, which is worth more than a billion dollars, Kushner was intent on bringing a businessman’s sensibility to matters of state. He believed that fresh, confidential relationships could overcome the frustrations of traditional diplomatic bureaucracy.

  New Yorker
Did he get that idea from His Lardship, or was it the other way around?
Henry Kissinger, who, in his role as a high-priced international consultant, maintains close relationships in the Chinese hierarchy, had introduced Kushner to [Cui Tiankai, the Chinese Ambassador to the United States,] during the campaign, and the two met three more times during the transition. In the months after Trump was sworn in, they met more often than Kushner could recall. “Jared became Mr. China,” Michael Pillsbury, a former Pentagon aide on Trump’s transition team, said.

[...]

On at least one occasion, they met alone, which counterintelligence officials considered risky. “There’s nobody else there in the room to verify what was said and what wasn’t, so the Chinese can go back and claim anything,” a former senior U.S. official who was briefed on the meetings said. “I’m sorry, Jared—do you think your background is going to allow you to be able to outsmart the Chinese Ambassador?” Kushner, the official added, “is actually pretty smart. He just has limited life experiences. He was acting with naïveté.”

[...]

Kushner often excluded the government’s top China specialists from his meetings with Cui, a slight that rankled and unnerved the bureaucracy. “He went in utterly unflanked by anyone who could find Beijing on a map,” a former member of the National Security Council said.
Meeting alone with a non-allied official - another Trump move. Who cares if it's a potential national security problem? If you've got US government officials in the room, you can't make personal business deals.
Some officials who were not invited to Kushner’s sessions or briefed on the outcomes resorted to scouring American intelligence reports to see how Chinese diplomats described their dealings with Kushner.
Pathetic.
Kushner was “their lucky charm,” the former N.S.C. member said. “It was a dream come true. They couldn’t believe he was so compliant.” (A spokesman for Kushner said that none of the China specialists told him that “he shouldn’t be doing it the way he was doing it at the time.”)
I wonder if that's true. Sounds highly unlikely. He didn't even have a security clearance back then.
In recent years, the F.B.I. and the C.I.A. have dedicated increased resources to tracking efforts by the Chinese government to spy on or to enlist Western officials in pursuit of their policy goals. [...] “The Chinese influence operations are more long-term, broader in scope, and are generally designed to achieve a more diffuse goal than the Russians’ are,” Christopher Johnson, a former C.I.A. analyst who specializes in China, said.

[...]

Among national-security specialists, Kushner’s difficulty obtaining a permanent security clearance has become a subject of fascination. Was it his early failure to disclose foreign contacts? Or did it have something to do with the investigations into Russian interference in the 2016 elections? As the Administration finished its first year, some clues to Kushner’s security troubles have come into sharper focus, giving a new perspective on his encounters with China.

[...]

During the transition, Kushner met with a range of foreign officials to discuss the incoming Administration. At the same time, as the head of his family’s business, he was urgently seeking an infusion of cash to repay a debt totalling hundreds of millions of dollars. In 2007, the Kushner Companies had bought 666 Fifth Avenue, a forty-one-story office tower, for $1.8 billion, the highest price ever paid for a building in Manhattan at that time. The deal turned out to be a potential disaster for Kushner. Demand for office space had fallen short, and he was hunting for investors, in Asia and the Middle East, among other places, to shore up the building’s finances.

On November 16, 2016, Kushner had a private dinner with Wu Xiaohui, the chairman of China’s Anbang Insurance Group, to discuss Wu’s possible investment in 666 Fifth Avenue. Months later, when the meeting was revealed, and Bloomberg News reported that the Kushner family stood to make as much as four hundred million dollars from the agreement with Anbang, Democratic lawmakers, including Senator Elizabeth Warren, of Massachusetts, criticized it as a possible conflict of interest. The companies abandoned the negotiations.

[...]

On January 9, 2017, shortly before beginning work at the White House, Kushner said that he was stepping down as C.E.O. He sold his stake in 666 Fifth Avenue to a family trust, while retaining ownership of many of his assets.

[...]

A Kushner project in Jersey City, which opened in November, 2016, reportedly received about fifty million dollars, nearly a quarter of its financing, from Chinese investors who are not publicly named, through a U.S. immigration program known as EB-5, which allows wealthy foreigners to obtain visas by investing in American projects. Kushner was also an investor, alongside prominent Chinese and Hong Kong businessmen, in multiple companies. [...] Ivanka Trump has her own business endeavors in China, where some of her branded handbags, shoes, and clothes are manufactured.

[...]

In some cases, it was unclear whether Kushner was representing the transition or his business.
Let me guess.
Kushner and Cui also met repeatedly to prepare for Trump’s first meeting with China’s President, Xi Jinping, on April 6th, at Trump’s Mar-a-Lago resort.

[...]

In the event, China overwhelmingly achieved its objectives: a soft-focus summit with regal photo ops and little talk of trade and other touchy subjects. It was also an auspicious occasion for the Kushner family. While Xi met with Trump, Beijing regulators approved three trademark applications from Ivanka’s company, to sell bags, jewelry, and spa services. Ivanka is also an adviser to the President, and her deals with the Chinese were hardly unusual. Since Trump assumed office, the Chinese government has approved scores of trademark applications by the Trump Organization.

[...]

According to current and former officials briefed on U.S. intelligence about Chinese communications, Chinese officials said that Cui and Kushner, in meetings to prepare for the summit at Mar-a-Lago, discussed Kushner’s business interests along with policy.
What a surprise.
In March, 2017, Bill Priestap, the F.B.I.’s chief of counterintelligence, visited the White House and briefed Kushner about the danger of foreign-influence operations, according to three officials familiar with the meeting. Priestap told Kushner that he was among the top intelligence targets worldwide, and was being targeted not only by China but by every other major intelligence service as well, including those of the Russians and the Israelis. Priestap said that foreign spy agencies could use diplomats and spies masquerading as students and journalists to collect information about him.

[...]

When Kushner was briefed by the F.B.I., he saw little cause for alarm, according to a person close to Kushner. He had no doubt that China and other countries were trying to persuade him to do things or to provide information, but he was, despite his inexperience in diplomacy and intelligence, confident in his ability to navigate these situations. After all, he told others, New York real estate is not “a baby’s business.”

[...]

In the months after Priestap briefed Kushner on the counterintelligence threat, Kushner and Ivanka Trump made some adjustments. In May, the Kushner Companies issued an apology after reporters observed Nicole Kushner Meyer, Jared Kushner’s sister, speaking about his White House position while promoting real estate to potential investors in China. In September, Kushner and Ivanka declined an invitation to visit China, amid criticism from some American scholars that they were ill-equipped to conduct diplomacy on behalf of the United States.

Other plans remained unchanged.
From May:
A real estate startup partly-owned by presidential senior adviser Jared Kushner is seeking an investment of at least $100 million from a private fund backed by Saudi Arabia and the United Arab Emirates.

[...]

Nearly half of its $100 billion is financed by the Saudi government's Public Investment Fund, Bloomberg said. At least $15 billion has been invested by the UAE sovereign wealth fund.

[...]

Kushner reportedly has stakes in the parent company that owns Cadre, valued between $5 million and $25 million, according to his updated financial disclosure last year.

The discussions are especially sensitive as Kushner's and his family's business dealings with foreign entities have been called into question.

Kushner Companies took out four loans from Israel's largest bank, Bank Hapoalim, which is currently under investigation by the US Department of Justice.

Kushner himself has a close personal relationship with Saudi Crown Prince Mohammed Bin Salman, and has been instrumental in securing deals between the US and Saudi Arabia. He reportedly leaked classified information to the Saudi crown prince, who is said to have secretly boasted about having Kushner under his control.

In March, House Democrats called for an FBI probe into Kushner's personal ties to the Saudi royalty. Officials from several other countries, including China, have also bragged about having influence over Kushner.

Kushner Companies has also been linked to troubled Chinese insurance fund Anbang. Special counsel Robert Mueller is reportedly investigating contact between Kushner and foreign investors, particularly his links to Anbang.

  Business Insider
From June this year:
Kushner and his family company have made substantial investments over the years with Israel-based banks and companies, and his financial interests expanded over the past year, according to a disclosure report released last week. It showed that he and his father increased their line of credit with an Israeli bank to as much as $25 million, up from a maximum of $5 million in a previous report

  WaPo
And, finally, an article from this past May:
Jared Kushner and his family business have a big problem.

In 2007, then 27-year-old Kushner made an audacious move while running his family real estate business: He bought an skyscraper in Manhattan — 666 5th Avenue — for $1.8 billion. It was the most ever paid for an office tower. And the timing couldn’t have been worse.

[...]

The commercial real estate market in New York City collapsed. Running out of cash, Kushner was forced to sell the lucrative retail space on the ground floor to Vornado Realty Trust, a more experienced real estate firm, to keep things afloat. Vornado later bought about half of the office tower.

[...]

The building is about one-third vacant and rent covers only about fifty percent of the mortgage, forcing the Kushners and their business partners to burn millions each month.

But the real issue comes in February 2019, when the tower’s $1.2 billion mortgage becomes due. Refinancing is really not an option since many real estate experts believe the mortgage exceeds the value of the tower.

Jared Kushner himself attempted to strike a deal with a Chinese company, Anbang, in the days following the 2016 election. But it evaporated upon further scrutiny of the terms of the deal.

[...]

Three months after the inauguration and shortly after the Anbang deal fell through, Charles Kushner, Jared’s father, reportedly “made a direct pitch to Qatar’s minister of finance,” Ali Sharif Al Emadi, to provide new financing for 666 5th Avenue.

In March, Charles Kushner confirmed the meeting but described it as a courtesy and said he would never take money from the Qataris, presumably because it would present a conflict of interest due to Jared Kushner’s position in the White House.

[...]

Now, they are taking the money.

[...]

The deal is being struck with Brookfield Properties, “a publicly traded company, headquartered in Canada, one of whose major investors is the Qatar Investment Authority,” according to the Times.

So the Kushners may not be accepting funding directly through the sovereign wealth fund. But the money will come from a firm that is financed in large part by the same fund.

  Think Progress
Sounds like a similar way Trump dealt with Cohen to pay off women he slept with.
The deal is “is likely to raise further concerns about Jared Kushner’s dual role as a White House point person on the Middle East and a continuing stake holder in the family’s company,” as the Times reports.

Kushner has been unable to obtain a permanent security clearance due to concerns that foreign government could use his business entanglements to gain influence.

[...]

After denying all knowledge of a potential deal to the New York Times, Brookfield later told the Washington Post it was investing through a different fund that doesn’t include Qatari investments, but the Post could not verify the claim.
One thing Jared and Ivanka have over His Lardship is that they know how to lay low when the situation calls for it.   And we haven't heard much out of them for a while.  Until now.

Jared Kushner reportedly paid little to nothing in taxes for years

Two princes: Kushner now faces a reckoning for Trump's bet on the heir to the Saudi throne

Jared Kushner Is a Power-Hungry 'Prince' With No Government Experience Like Mohammed Bin Salman, US Intel Officials say: Report

...but hey, do what you want...you will anyway.

No comments: