While working in the Ukraine, Paul Manafort invested millions of dollars in real estate to secure loans needed to curb various financial losses.
Manafort, who was pushed out of Donald Trump’s campaign in August, purchased condos and apartments in New York, Los Angeles, Virginia and Florida. He used many of these properties as collateral as he borrowed voraciously from companies with ties to the president, the New York Times reported. The properties include a $3.7 million apartment in Trump Tower.
The purpose of at least part of the $20 million loans secured by his properties seems to be to counter the financial blowback from his son-in-law declaring bankruptcy. His daughter is married to Jeffrey Yohai, a spec house developer who filed for Chapter 11 in December.
Shortly after leaving Trump’s campaign, Manafort snagged a $3.5 million loan from Spruce Capital Partners, secured by a home in the Hamptons. The financing seems out of step with Spruce’s most recent lending activities, since it’s the only single-family house and only property outside of New York City. Spruce has Ukranian connections through one of its backers, billionaire Alexander Rovt. Joshua Crane, a co-founder of Spruce, has also been involved in two Trump hotel projects.
“There is nothing out of the ordinary about them,” Manafort said of his loans, “and I am confident anyone who isn’t afflicted with scandal fever will come to the same conclusion.” [NYT] — Kathryn Brenzel