Kushner Cos. Subpoenaed for Information Related to Housing Filings
The real-estate company run by the family of White House adviser Jared Kushner in mid-March received a federal grand-jury subpoena for information related to paperwork the company filed in New York City concerning its rent-regulated tenants, according to people familiar with the matter.
The subpoena, part of an investigation by prosecutors in the Brooklyn U.S. attorney’s office, came shortly after an Associated Press article about the company having filed documents that said it had zero rent-regulated tenants, when in fact it had hundreds, an omission that relieved it of certain rules governing developers.
The Kushner Cos., where President Donald Trump’s son-in-law was chief executive before joining the administration, said at the time of the Associated Press article that the paperwork was done by a third party and that “if mistakes or violations are identified, corrective action is taken immediately.”
A spokeswoman for the company said Thursday that “Kushner Companies has nothing to hide and is cooperating fully with all legitimate requests for information, including this subpoena.” She added: “We believe that this subpoena, which has already been complied with, was issued based solely on an article that appeared in the press the day before it was issued.”
A spokesman for the U.S. attorney’s office, John Marzulli, said: “I can’t confirm or deny the existence of any subpoena or investigation.”
The subpoena adds to the mounting number of federal and state inquiries concerning the firm’s business. It seeks information on the identities of the third parties hired by the company to file documents with the New York City Department of Buildings and the city Department of Finance, according to a person familiar with it.
Though the filings occurred during a period when Mr. Kushner was CEO, none of the documents had his signature, the Associated Press reported.
The subpoena to the company, which is now run by Mr. Kushner’s father, Charles Kushner, comes as it is also facing scrutiny on the same subject from the New York attorney general’s office, which has launched an inquiry into the matter, according to Eric Soufer, a spokesman for Attorney General Eric Schneiderman.
As a part of that, attorneys from the Attorney General’s office have met with tenant representatives, Mr. Soufer said.
The New York City Council has also opened an investigation into the filings.
Since early last year, Brooklyn federal prosecutors, along with the U.S. Securities and Exchange Commission, have also been reviewing Kushner Cos.’s use of a federal investment-for-visa program known as EB-5, The Wall Street Journal has reported. The company has since ceased using the EB-5 program to finance its projects. Kushner Cos. has said it did nothing improper with the program and is cooperating with legal requests for information.
And the Brooklyn U.S. attorney’s office is also investigating a $285 million loan the company received one month before the 2016 presidential election from Deutsche Bank AG , the Journal has reported. Kushner Cos. has said it “has cooperated and will continue to cooperate with any reasonable request for information.” A spokesman for Deutsche Bank declined to comment.
In that inquiry, prosecutors sent a document request in mid-November of last year to the Kushner Cos. asking for contracts and other information about the loan.
Source:-https://www.wsj.com/articles/kushner-cos-subpoenaed-over-tenant-records-1524173492
