Did Jared just secure his family’s real-estate empire by facilitating a palace coup in Saudi Arabia?

I’ve written previously about the Kushner family’s attempts to shore up their precarious finances by extorting fees from low-income tenants and selling green-cards to Chinese investors. As Bloomberg reported in August, the Kushners are desperately seeking cash to save their heavily-mortgaged Manhattan skyscraper as balloon payments come due over the next two years.

Last week, Kushner took an unannounced trip to KSA:

President Donald Trump’s son-in-law and senior adviser Jared Kushner returned home Saturday from an unannounced visit to Saudi Arabia — his third trip to the country this year.

Kushner left Washington, D.C., via commercial airline on Wednesday for the trip, which was not announced to the public, a White House official told POLITICO. He traveled separately from Treasury Secretary Steven Mnuchin, who led a delegation to Riyadh last week to focus on combating terrorist financing. […]

The White House official would not say who Kushner met with in Saudi Arabia. But he has cultivated a relationship with the crown prince, Mohammad Bin Salman, who, like Kushner, is in his 30s. — www.politico.com/…

Saudi Arabia has, for the past two years, been waging a brutal bombing campaign against Yemen which has caused thousands of civilian deaths. This war is widely believed to be Mohammed Bin Salman’s [MBS] project, though the war is broadly supported in Saudi Arabia across factions. For example, Prince Alwaleed bin Talal promised to reward Saudi air force pilots with Bentleys when they returned from bombing raids.

Sadly, our government has actively supported the Saudi war in Yemen, providing weapons (including cluster bombs) and operational support. Hundreds of children have been killed by these weapons, thousands have lost limbs. Many of you saw the heart-rending pictures of a young toddler who had lost four of her fingers, staring at the intact hand on her doll.

Then yesterday, the crown prince, Mohammad Bin Salman, engineered a palace coup, arresting dozens of his own uncles and cousins.

midnight blitz of arrests ordered by the crown prince of Saudi Arabia over the weekend has ensnared dozens of its most influential figures, including 11 of his royal cousins, in what by Sunday appeared to be the most sweeping transformation in the kingdom’s governance for more than eight decades.

The arrests, ordered by Crown Prince Mohammed bin Salman without formal charges or any legal process, were presented as a crackdown on corruption. They caught both the kingdom’s richest investor, Prince Alwaleed bin Talal, and the most potent remaining rival to the crown prince’s power: Prince Mutaib bin Abdullah, a favored son of the late King Abdullah. — www.nytimes.com/…

Another prince died along with several officials as his helicopter crashed near the Yemeni border.

Now, here’s where it gets interesting. Prince Alwaleed bin Talal had sparred with Trump during and after the election. His Kingdom Holding Company is a major investor in Twitter and Apple. He was one of the people arrested.

“The king and crown prince’s recent public statements regarding the need to build a moderate, peaceful and tolerant region are essential to ensuring a hopeful future for the Saudi people, to curtailing terrorist funding, and to defeating radical ideology — once and for all — so the world can be safe from its evil,” the White House said in the statement.

The White House statement made no mention of the scores of arrests, including that of Prince Alwaleed bin Talal, a billionaire investor who has held stakes in an array of Western companies, including the News Corporation, Citigroup and Twitter. Prince Mohammed, who has already sidelined rivals to the throne, is viewed as the mastermind behind the crackdown.

Prince Alwaleed sparred with Mr. Trump on Twitter during the presidential election, referring to him as a “disgrace not only to the GOP but to all America.” Mr. Trump fired back, also on Twitter, that he was a “dopey prince” trying to “control our U.S. politicians with daddy’s money.” — www.nytimes.com/…

If Kushner was in Saudi Arabia to bless the impending palace coup by MBS, then the Trumps and Kushners can expect rich rewards in the years to come. If MBS can ascend to the throne and diminish the competition, he will control a state-owned oil company that is valued at $2 Trillion and about to go public this year. Yes, that’s Trillion with a T.

Even without the money raised from an IPO, Saudi Aramco produced almost 4 billion barrels of crude oil in 2016. At $50 a barrel, that’s $200 billion in sales each year, the vast majority of it profit. Those numbers are staggering. Saudi Aramco’s annual profits exceed the total net worth of the richest person in the world.

Let’s just say that becoming the King of Saudi Arabia makes you an extremely wealthy person. It makes you even wealthier if you can imprison some of your relatives and confiscate their assets in a “anti-corruption drive”.

And when you have consolidated all this power and wealth, you aren’t going to forget the friends who helped you make it happen will you? Friends with last names like Kushner and Trump? What’s a $5 billion loan or a $10 billion construction contract among friends?

So what can you do as the Trump/Kushner kleptocracy tries to milk every dollar it can out of its days in elected office? You can get out and vote. And you can help get out the vote. I’ve been doing that every day this week and have multiple people tell me they are thankful for the reminder because they didn’t know there was an election on Tuesday, November 7.

A Modest Proposal: Conscript Don Jr, Jared and Eric into a combat infantry unit

Eric Trump is 32.

Jared Kushner is 36.

Donald Trump Jr. is 39.

They’re all young enough to serve. Yes, the Army won’t allow Jared and Don Jr to enlist since they’re over 34, but I’m sure the President can make a call and request an exemption.

If Donald Trump is going to deliver “fire & fury”, perhaps his kids and sons-in-law should help deliver it. Eric and Don are already “locked & loaded” so to speak. They have the ability to track and shoot dangerous animals as you can see in the photo above. They should require minimal training to end up on the front-lines.

It would really be a wonderful testament to their father and father-in-law’s deep desire to serve his country in Vietnam, which was prevented by his painful bone spurs. Those bone spurs really were a pity, since all those years he spent at the pampered “military academy” were wasted.

Anyway, this generation can redeem all that. I would recommend placing them in a combat infantry unit that leads the “fire & fury” charge into Pyongyang, or any other place Trump wants to go to war.

Hey, maybe we should ask all Senators, Representatives and Presidents’ children to serve in combat roles if their parents voted for war. Wouldn’t that be a good idea?

#ConscriptDonJr #ConscriptEric #ConscriptJared

— @subirgrewal

Jared Kushner uses lawfare to extort money from poor tenants in Baltimore.

While much of the discussion of Kushner’s real-estate empire has focused on glitzy high-rises in New York City, Kushner also owns far more modest low-rise residential rental complexes across the country. The NY Times has a superb exposé of shoddy conditions and exploitative, extortionate tactics used in Baltimore housing complexes owned by a company called “JK2 Westminster”. The JK stands for Jared Kushner’s initials.

The article describes the travails of one young woman who terminated her lease early, with permission from the landlord, a few months before Kushner bought the property. Kushner’s lawyers filed a court-case to extract several thousand dollars from the young woman. The judge ruled against her because she failed to attach a document. Her wages were garnished and her bank account emptied.

The garnishing started that month. Warren was in the midst of leaving her job, but JK2 Westminster garnished her bank account too. After her account was zeroed out, a loss of about $900, she borrowed money from her mother to buy food for her children and pay her bills. That February — five years after she left Cove Village — Warren returned to court, this time with the housing form in hand, asking the judge to halt garnishment. “I am a single mom of three and my bank account was wiped clean by the plaintiff,” she pleaded in another handwritten request. “I cannot take care of my kids when they snatch all of my money out of my account. I do not feel I owe this money. Please have mercy on my family and I.” She told me that when she called the law office representing JK2 Westminster that same day from the courthouse to discuss the case, one of the lawyers told her: “This is not going to go away. You will pay us.”

The judge denied Warren’s request without explanation. And JK2 Westminster kept pressing for the rest of the money, sending out one process server after another to present Warren with legal papers. Finally, in January 2016, the court sent notice of a $4,615 lien against Warren — a legal claim against her for the remaining judgment. Warren began to cry as she recounted the episode to me. She said the lien has greatly complicated her hopes of taking out a loan to start her own small assisted-living center. She had gone a couple of years without a bank account, for fear of further garnishing. “It was just pure greed,” she said. “It was unnecessary.” I asked why she hadn’t pushed harder against the judgment once she had the necessary evidence in hand. “They know how to work this stuff,” she replied. “They know what to do, and here I am, I don’t know anything about the law. I would have to hire a lawyer or something, and I really can’t afford that. I really don’t know my rights. I don’t know all the court lingo. I knew that up against them I would lose.”

All of this evokes the practices of Kushner’s father-in-law, who also got his start managing low-income and rent-stabilized properties. Trump practiced housing segregation and harassed tenants.

The pattern of behavior at Kushner’s companies and their lawyers seems downright vindictive :

In the cases that Tapper has brought to court on behalf of JK2 Westminster and individual Kushner-controlled companies, there is a clear pattern of Kushner Companies’ pursuing tenants over virtually any unpaid rent or broken lease — even in the numerous cases where the facts appear to be on the tenants’ side. Not only does the company file cases against them, it pursues the cases for as long as it takes to collect from the overmatched defendants — often several years. The court docket of JK2 Westminster’s case against Warren, for instance, spans more than three years and 112 actions — for a sum that amounts to maybe two days’ worth of billings for the average corporate-law-firm associate, from a woman who never even rented from JK2 Westminster. The pursuit is all the more remarkable given how transient the company’s prey tends to be. Hounding former tenants for money means paying to send out process servers who often report back that they were unable to locate the target. This does not deter Kushner Companies’ lawyers. They send the servers back out again a few months later.

There are several more examples in the lengthy NY Times’ expose, including the story of a young mom who moved because black mold in her apartment induced her son’s asthama. She too was pursued by Kushner’s lawyers, even though she terminated her lease early (with permission) a year prior to them buying the property. There are other examples of poor maintenance and how the Kushners changed rent-payment rules and deadlines so as to create more late fees.

And it wasn’t happening just in Baltimore — Doug Wilkins, a lawyer in Toledo who has represented some of the complexes bought there by Kushner, told me the company is seeking far more monetary judgments than did previous owners.

 

Kushner family touting Trump ties while selling green cards to foreign investors for $500k.

The EB-5 program allows investors to, in effect, buy a green card if they invest 1 million (or $500k in certain areas). The investment has to create or preserve a certain number of jobs in the US. Real-Estate developers have been using this program to offer investors apartments/equity with green cards attached for years. Trump himself has marketed properties and raised capital by wooing foreign investors with the same promise of a green card.

This week, Jared Kushner’s sister was in China, touting her family’s ties to the White House as she marketed there family’s development in Jersey City, NJ. The slides had a picture of Donald Trump on them, suggesting Jared’s father-in-law could expedite their visas.

 

Mr. Trump’s political power was palpable at the Shanghai event even if his name went unsaid. As on Saturday in Beijing, one slide that was presented to the Shanghai audience, describing who will decide the future of the visa program for foreign investors, included a photograph of Mr. Trump, as shown by a snapshot taken by an audience member. — NY Times

The Washington Post researcher for the story on the ground was threatened and harassed.

Journalists barred from China event pitching investment in Kushner project — The Hill

Jared Kushner still retains his interest in the family real-estate business, though he has resigned from his executive positions. The New Yorker called it his Trumpian “divestment” strategy.

Over several hours of slide shows and presentations, representatives from the Kushner family business urged Chinese citizens gathered at a Ritz-Carlton hotel to consider investing hundreds of thousands of dollars in a New Jersey luxury apartment complex that would help them secure what’s known as an investor visa. […]

The tagline on a brochure for the event: “Invest $500,000 and immigrate to the United States.”

And the highlight of the afternoon was Meyer, a principal for the company, who was introduced in promotional materials as Jared’s sister.

— WaPo

PS. This is a piece about the Kushner family trying to leverage their ties to the White House in their business. This isn’t about the EB-5 visa per se, though there are legitimate questions as to whether its use by real-estate developers to raise cheap capital is in keeping with the spirit of the program. There are numerous comments exploring the drawbacks of the program. Pres. Obama, Sen. Leahy and Sen. Feinstein have all been somewhat skeptical of the creative uses real-estate developers have put the program to. This PBS piece is a good place to start if you want to know more about gerrymandering and lobbying by developers to qualify for the lower 500k investment threshold.