SEC Probing Kushner Companies Over Use Of Immigrant Visa Program

The SEC has launched an investigation into the real-estate company run by White House senior adviser (and Trump's son-in-law) Jared Kushner for its use of the "green cards for money" Federal visa program, according to the WSJ. Specifically, the SEC is probing Kushner Companies over its use of the investment-for-visa EB-5 program, which provides green cards to immigrants who invest at least $500,000 in U.S. businesses.

While the WSJ explains that "the precise nature of the SEC’s inquiry isn’t clear, nor is whether the subpoena identified particular projects" it notes that in May 2017, Kushner Cos. received a subpoena from the Securities and Exchange Commission requesting information about its use of the program. That month the company also received a separate subpoena from New York federal prosecutors asking for information about development projects financed in part by the EB-5 program.  Kushner had been running the real estate business until last year, but resigned from the company to join the White House staff.

The SEC probe, which hasn’t been previously reported, is being conducted out of the commission’s Texas office and in collaboration with federal prosecutors from the Brooklyn U.S. attorney’s office, according to another person familiar with it.

By way of background, the EB-5 program offers green cards to aspiring immigrants who invest at least $500,000 in certain U.S. businesses that have been determined to create at least 10 jobs per investor. A green card permits a foreign national to live and work in the U.S. The majority of EB-5 visas go to wealthy Chinese individuals, according to DHS data.

The federal and SEC subpoenas came shortly after the company drew attention for a marketing campaign in Beijing and Shanghai that solicited Chinese investors for One Journal Square, saying that as many as 300 individuals who invested $500,000 each into the project could be eligible for green cards under the EB-5 program, the Journal reported.

The Kushner Companies has had a controversial history with Chinese investors, following reports that the company's prize real estate jewel, the flagship skyscraper at 666 Fifth Avenue, was in financial dire straits and was scrambling to finalize an investment for redevelopment from troubled Chinese conglomerate Anbang.

The federal subpoena, which included a request for email correspondence, concerned at least one specific project: a Jersey City, N.J., development of twin, 66-floor commercial-and-residential towers called One Journal Square, the Journal reported.

But why is the SEC involved in a non-public company matter?

Well, although Kushner Cos. isn’t a publicly traded company, EB-5 investments are considered securities offerings, and the SEC has previously examined other companies in relation to the EB-5 program.

In April, the SEC reached a settlement with an Idaho man it accused of misappropriating some of the $140 million he raised through EB-5 offerings to acquire and develop luxury real estate. Instead, the defendant spent some of the funds on personal expenses and other operations unrelated to the advertised project, the SEC said.

The news of the SEC probe is only the latest in a series of federal inquiries that have emerged in recent months concerning Kushner Companies. In mid-November, federal prosecutors requested documents from the company pertaining to a $285 million loan the firm received from Deutsche Bank AG , the Journal reported last month.

A spokeswoman for Kushner Cos. referred to a previous comment provided by the company’s general counsel, Emily Wolf, who said of the Brooklyn-based inquiry that “Kushner Cos. utilized the program, fully complied with its rules and regulations, and did nothing improper. We are cooperating with legal requests for information.”

 

 

 

Comments

YUNOSELL Jan 6, 2018 9:39 AM

Trump should demand Ivanka get a divorce, or better yet an annulment, or better yet an off with his head official decree

 

Holy Jucifer -- a whole lot of 6's in their business decisions 

whatswhat1@yahoo.com limpinalien69 Jan 6, 2018 11:43 AM

Congratulations ZH'ers!!!

Most of you are a quick study in exploitation of weakness. 

For those of you here who are either a fill-in-the-blank-tard or maybe just a fair player, the weakness of the update is the formatting of the comments section. 

So, in order to play fair, here's the secret sauce:

IN ORDER TO RECEIVE PRIORITY POSITIONING WITH YOUR POST, REPLY TO THE POST CLOSEST TO THE 1ST POST WHICH HAS THE FEWEST REPLIES.

In reply to by limpinalien69

whatswhat1@yahoo.com overbet Jan 6, 2018 1:05 PM

That's not my recollection.  What I remember is replies were posted by time stamp and one could trace back on the thread by clicking on the greyed-out poster who was the source for the reply.  

In answer to your question, yes, comments could be on a single screen.  My vision is one line with arrow-up/down numbers, commenters name and the name of who they are replying to, date, time.  Click on the post and you get hyperlinked to the full body of the post. 

In reply to by overbet

SamAdams venturen Jan 6, 2018 10:20 AM

It is Kushner's soul purpose to use any means necessary to take anything of value into his possession. These people, are not another race as they claim (kushner is clearly pastey white), but are a different culture having greed and lust replacing the usual morality and compassion.  Unfortunately, these people cannot be fixed and are irredeemable. 

In reply to by venturen

veritas semper… Conscious Reviver Jan 6, 2018 1:56 PM

There are rumors that the condition from Ivanka Yael and Damien Kushner to move to Washington was to allow her to be a presidential candidate.

If this is true ,it means that we failed to have the first woman president(as she was too much: too crooked,treasonous,criminal,etc) ,but we may be "allowed" to have YAEL,the first attractive Bimbo as a woman president,with boobs for brains.And the bonus of being already converted to the "true" religion.

In reply to by Conscious Reviver

Boxed Merlot Conscious Reviver Jan 6, 2018 2:11 PM

...carpet bagger...

Yep, I like the term carpetbaggage. Unfortunately, there wasn't a choice in the top half dozen candidates that wasn't up to their neck with the scourge. Being "really smart" or even "genius" is very far cry from "wisdom".

Power and wealth are easily co-opted when one's humility is stunted. All that's missing from our POTUS is the furious tweet exclaiming how humble he is. Looks like a modern day Sennacherib to me. 916M in 365 days?

jmo.

In reply to by Conscious Reviver

Street Smart YUNOSELL Jan 6, 2018 11:24 AM

With rabid anti-Semites like you running around, it's easy to understand how millions of Jews were slaughtered in the Holocaust, in the Crusades and just day to day pogroms incited by the Christian priests. I'm not sure what stands out more about people like you: your ignorance or your primitive hatred. 

 

In reply to by YUNOSELL

MuffDiver69 Jan 6, 2018 9:41 AM

Good and when the Clinton Foundation is finally exposed and people go to jail I’m sure it will be greeted with same enthusiasm from media

Son of Captain Nemo Jan 6, 2018 9:45 AM

Just more proof on the "back room" deals that were solidified after 9/11 through the Patriot Act(s) and NDAA to shed the "skins" of 95 million Americans in the workforce, replacing them with fresh undocumented labour to destinations and terrorist production facilities "unknown" (inside and outside) CONUS going on 17 years... Rest assured the IRS knows each and every one of them personally just like they know YOU!

To those Americans still paying the taxes for it... You should be MORE THAN "PISSED"!

Jared Kushner on behalf of his real boss POTUS Bi Bi... "MAGA"!!!

 

P.S.

Babs Spectre said that you "will" love multiculturalism... Just ask Western Europe how much they are lovin it after they signed up to the "raping" of the Middle East after 3 buildings 2 planes (https://www.youtube.com/watch?v=MFE0qAiofMQ)?...

venturen Jan 6, 2018 9:47 AM

that is funny...the liberal program used against the uber liberal....have at it SEC....he can join his dad in jail...or did he get out.

Twatter Jan 6, 2018 9:50 AM

This lousy bum Kushner should have invested in Stellar XLM crypto and made money the old fashioned way, by earning it!

radio man Jan 6, 2018 9:51 AM

The swamp appears to be replete with Obama hold-overs. Clinton Crime family is a target rich environment, but where does the SEC go?

ludwigvmises Jan 6, 2018 9:56 AM

Wait once Mueller has him in a holding cell, threatening him with a 20 year term. This little entitled millennial will melt as quickly as an icecube in hell.

PT Xena fobe Jan 6, 2018 10:08 AM

Correct me if I am wrong, but I really don't think he is the only one doing this.  Anyone care to guess how many other companies are doing exactly the same thing?

Usual disclaimer:  Yes, I truly don't know.  That's why I am asking.  If you can provide links, names and addresses then so much the better.

In reply to by Xena fobe

FoggyWorld Xena fobe Jan 6, 2018 10:09 AM

And Jared wasn't involved in that scheme because it started after he began working in the WH.  He may own stock in the company that did this but he isn't participating in any of its activities.   This one happens to be legal though apparently his sister when in China did improperly reference Jared's name and job.

And I'm not a fan of Jared's at all but think this needs to put in context.

In reply to by Xena fobe