Manafort tried to mislead court, son-in-law claims
Real estate at core of bankruptcy case
As federal authorities investigate former Trump campaign chairman Paul Manafort’s controversial ties to Russia, his estranged son-in-law is accusing him of conspiring to mislead a federal bankruptcy court about real estate investments.
Jeffrey Yohai made the allegation on Sept. 28 in a case that centers on four troubled California real estate investments that collectively total millions of dollars. Manafort’s daughter, Jessica, filed for divorce from Yohai in March.
Yohai’s legal declaration alleged that Manafort and other parties in the cases “have all conspired to mislead this court ... as to their true intentions and motivations.”
Yohai has worked in real estate in California and New York, business and court records show. Part of that work has focused on buying upscale homes in the Los Angeles area, renovating them and then marketing and reselling the properties to luxury buyers. Four of the properties he planned to redevelop now are in the bankruptcy proceedings. Manafort, his wife Kathleen and daughter Jessica, helped finance Yohai’s redevelopment efforts by putting up approximately $4.2 million, bankruptcy court records show.
The accusations come as special counsel Robert Mueller continues his investigation into Russia’s interference in the 2016 presidential election and possible collusion with Trump associates. Manafort has been a central figure in that probe, which has also focused on some of his work for a pro-Russia political party in Ukraine from 2012 to 2014. Mueller’s team is conducting a wide-ranging inquiry into Manafort’s businesses and contacts with Russians during his time as Trump’s campaign chairman.
FBI investigators are also examining financial deals between Manafort and Yohai, The New
York Times said in June. It is unclear whether Mueller’s investigation has included the real estate issues now in bankruptcy court.
Yohai’s filing alleged Manafort and others had misled him and the court about the funding and ownership of the companies that have proposed to clear up the bankruptcy issues. He questioned whether the rescue plan had sufficient funds to finalize the deal.
Peter Carr, a spokesman for Mueller’s team, declined to comment, as did Aaron May, an attorney who represents Yohai on any criminal matters. James Hines, an attorney who represents Yohai in the bankruptcy matter, said his client had no comment on the real estate case at this time.
Manafort spokesman Jason Maloni also declined to comment. However, Matthew Browndorf, managing partner of the law firm Manafort is using to help with the process of buying the real estate companies, said the bankruptcy judge overseeing the case ignored the allegations at a hearing Wednesday. The judge gave Manafort extra time to finalize the loans he needs to buy the properties out of bankruptcy.