Ivanka Trump and Jared Kushner Still Benefiting From Business Empire, Filings Show

Ivanka Trump and Jared Kushner Still Benefiting From Business Empire, Filings Show By JESSE DRUCKER, ERIC LIPTON and MAGGIE HABERMANMARCH 31, 2017 Continue reading the main storyShare This Page Share Tweet Email More Save 1395 Photo President Trump’s daughter, Ivanka, and her husband, Jared Kushner, leaving the Oval Office in February. Credit Stephen Crowley/The New York Times Ivanka Trump and Jared Kushner, President Trump’s daughter and son-in-law, will remain the beneficiaries of a sprawling real estate and investment business still worth as much as $740 million, despite their new government responsibilities, according to ethics filings released by the White House Friday night. Ms. Trump will also maintain a stake in the Trump International Hotel in Washington, D.C. The hotel, just down the street from the White House, has drawn protests from ethics experts who worry that foreign governments or special interests could stay there in order to curry favor with the administration. It is unclear how Ms. Trump would earn income from that stake. Mr. Kushner’s financial disclosures said that Ms. Trump earned between $1 million and $5 million from the hotel between January 2016 and March 2017, and put the value of her stake at between $5 million and $25 million. The disclosures were part of a broad, Friday-night document release by the White House that exposed the assets of as many as 180 senior officials to public scrutiny. The reports showed the assets and wealth of senior staff members at the time they entered government service. Continue reading the main story RECENT COMMENTS Bruce Carroll 31 minutes ago If it is true that federal employees are forbidden under federal criminal and civic law from taking any action that might benefit their... mike b 31 minutes ago Everyone knows the Trump fortunes have been built from slick salesmanship, deception, sleight-of-hand, self-interest...and no doubt some... SSJ 31 minutes ago These people are incapable of understanding what it is to live in the real world. Just got laid off along with 100 others from my $12 hr.... SEE ALL COMMENTS WRITE A COMMENT Those disclosures included the assets of Gary D. Cohn, the former president of Goldman Sachs who now leads the National Economic Council, Kellyanne Conway, the pollster and counsel to Mr. Trump and Stephen K. Bannon, the chief strategist to the president. Mr. Bannon disclosed $191,000 in consulting fees he earned from Breitbart News Network, the conservative media organization, $125,333 from Cambridge Analytica, a data firm that worked for the Trump campaign, and $61,539 in salary from the Government Accountability Institute, a conservative nonprofit organization. All three are backed by Robert Mercer and his daughter Rebekah, financiers and major Republican donors. Mr. Bannon’s most valuable asset was Bannon Strategic Advisors Inc., a privately held consulting firm into which income from his other investments appeared to flow. It was valued at between $5 million and $25 million. He also held bank accounts valued at up to $2.25 million, and rental real estate worth as much as $10.5 million. Ms. Conway earned at least $842,614 last year, and perhaps slightly more, the filings show. Her assets are valued at between $11 million and at least $44.2 million. Mr. Cohn is far wealthier, with assets valued between $253 million and $611 million, and income last year as high as $77 million. Another White House official, Reed Cordish, who heads up technology initiatives, accumulated assets as a Maryland developer valued as high as $424 million. Mr. Trump’s administration is considered the most wealthy in American history, with members of his senior staff and cabinet worth an estimated $12 billion, according to a tally by Bloomberg. The Friday filings will add voluminous detail to that top-line figure. The White house chief of staff, Reince Priebus, for example, earned at least $1.18 million — nearly half of which came from the Republican National Committee, which he formerly led. His assets totaled between $604,008 and at least $1.26 million. “I think one of the really interesting things that people are going to see today — and I think it’s something that should be celebrated — is that the president has brought a lot of people into this administration, and this White House in particular, who have been very blessed and very successful,” said Sean Spicer, the White House press secretary. The officials “have given up a lot to come into government by setting aside a lot of assets,” he said. Until January, Mr. Kushner was the chief executive of Kushner Companies, a family-run real estate investment firm with holdings across the country. It is a growing business that has taken part in at least $7 billion of acquisitions over the past decade. Late Friday, the White House released details of the plan devised by his advisers to avoid conflicts of interest between Mr. Kushner’s government role and the wide-ranging business empire he ran with his father. That business depends on foreign investment from undisclosed sources, as well as billions of dollars in loans from the world’s biggest financial services firms. Although Mr. Kushner has stepped down from his management positions at the more than 200 entities that operated aspects of the family real estate business, he will remain a beneficiary of a vast majority of the business he ran for the past decade, through a series of trusts that already owned the various real estate companies. The plan laid out on Friday “is not sufficient,” said Larry Noble, a former general counsel and chief ethics officer for the Federal Election Commission. “While removing himself from the management of the businesses is an important step, he is still financially benefiting from how the businesses do. This presents potential for a conflict of interest. Given his level in the White House and broad portfolio, it’s hard to see how he will recuse himself from everything that may impact his financial interest.” While the filing discloses Mr. Kushner’s personal lenders, it does not provide information on his business partners or lenders to his projects. His real estate firm has borrowed money from the likes of Goldman Sachs, the Blackstone Group, Deutsche Bank and the French bank Natixis. It also received loans from Israel’s largest bank, Bank Hapoalim, which is the subject of a United States Justice Department investigation into allegations that it helped wealthy Americans evade taxes using undeclared accounts. Most recently, his firm’s flagship property at 666 Fifth Avenue in Manhattan was the subject of controversy: Around the time his father-in-law received the Republican nomination last spring, Mr. Kushner’s firm began conversations with a Chinese company with ties to some of the Communist Party’s leading families about a plan to invest billions of dollars in the troubled office tower. Mr. Kushner’s company and the firm, Anbang Insurance Group, agreed to end the talks on Wednesday after weeks of negative publicity about the deal, criticized as a bailout of the Kushners. The building had already been rescued by a number of prominent firms, including the private equity giant Carlyle Group, and Zara, the Spanish fashion retailer founded and owned by Amancio Ortega, one of the world’s wealthiest men. Morning Briefing Get what you need to know to start your day in the United States, Canada and the Americas, delivered to your inbox. Enter your email address Sign Up Receive occasional updates and special offers for The New York Times's products and services. SEE SAMPLE PRIVACY POLICY Mr. Kushner has divested his stakes in any businesses connected to that property. The disclosures do not reveal the names of investors and lenders to ventures that Mr. Kushner is retaining a stake in. For example, the form shows Mr. Kushner is retaining a stake in a limited liability corporation that owns a Trump-branded luxury rental high-rise building in Jersey City worth as much as $5 million. That project was financed with tens of millions of dollars from wealthy Chinese investors through a controversial visa-for-sale program called EB-5. However, the filing does not disclose the names of any of those investors — or partners in any of his other projects. “We don’t know who the business partners are in many of these investments,” Mr. Noble said, “and those business partners may also have interests that will be affected by how he advises the government. And that’s a concern.” “He could have foreign business partners who have a real interest in policy, and he may be advising the president on those policies,” Mr. Noble added. “This is a dark area where we just don’t know what’s going on.” In all, the Kushner company owns more than 20,000 apartments and approximately 14 million square feet of office space. Previous disclosures by the United States Office of Government Ethics showed that Mr. Kushner had divested his interests in several entities, mostly partnerships connected to a venture capital firm run by his brother, Joshua, called Thrive Capital, that invests in technology firms like Instagram. He also shed his interests in funds run by the private equity giant Blackstone Group — whose chief executive, Stephen A. Schwarzman, is an economic adviser to Mr. Trump — as well as BlackRock, the world’s largest asset manager. Over all, he has shed his stakes in 58 businesses. He is still the sole primary beneficiary of a majority of the trusts that will retain assets, with his children as the secondary beneficiaries. Mr. Kushner was required to submit some limited financial information for his wife, Ms. Trump, who will continue to receive payments from the Trump Organization as well as her fashion brand. Ms. Trump, who now serves as an assistant to the president, resigned from her leadership roles at both companies. Instead of performance-based payments, Ms. Trump will receive fixed payments from T International Realty, the family’s luxury brokerage agency, as well as fixed fees from two entities related to real estate projects, the documents show. Ms. Trump had previously rolled her fashion brand into the Ivanka M. Trump Business Trust, which is overseen by her brother-in-law, Josh Kushner, and sister-in-law, Nicole Meyer. The documents released on Friday valued the trust at more than $50 million. The brand is largely a licensing operation, meaning that it sells the use of Ms. Trump’s name to partners who manufacture her clothes, shoes and other accessories. Since it is privately held, little is known about the company’s financials, but The New York Times has previously reported that revenues were roughly between $4 million and $6 million in 2013, before the debut of a major partnership. The disclosure forms released Friday for less senior White House staff members were not reviewed by the federal Office of Government Ethics. Only the White House Counsel’s Office examines their assets to determine if there are potential conflicts, and to decide what steps employees must take to sell assets, resign positions or recuse themselves from decisions. Already, a complaint has been filed against at least one White House staff member for taking actions that might benefit his own financial interests. Christopher P. Liddell, an assistant to the president and the director of strategic initiatives, had been the chief financial officer of companies including Microsoft, International Paper and General Motors before taking his White House job. Until recently, he also owned stock in General Motors, according to disclosure forms, among more than 750 other companies. But in late January and early February, according to a complaint filed by Citizens for Responsibility and Ethics in Washington, Mr. Liddell participated in meetings that involved several of the companies in which he still owned a total of about $2 million in stock, including International Paper and General Motors. Mr. Liddell, according to disclosures, sold these stock holdings by mid-February. 1395 COMMENTS “It is Ethics 101 — the most basic thing you are not supposed to do: using your official capacity to benefit your financial interest,” said Norman Eisen, who served as a White House ethics lawyer during the Obama administration and now is a co-chairman of Citizens for Responsibility and Ethics in Washington. The White House did not respond Friday when asked about the complaint.

Ivanka Trump set to get West Wing office as role expands

Ivanka Trump set to get West Wing office as role expands The first daughter will not, however, become a government employee, raising ethics questions. Ivanka Trump, who moved to Washington saying she would play no formal role in her father’s administration, is now officially setting up shop in the White House. The powerful first daughter has secured her own office on the West Wing’s second floor — a space next to senior adviser Dina Powell, who was recently promoted to a position on the National Security Council. She is also in the process of obtaining a security clearance and is set to receive government-issued communications devices this week. In everything but name, Trump is settling in as what appears to be a full-time staffer in her father’s administration, with a broad and growing portfolio — except she is not being sworn in, will hold no official position and is not pocketing a salary, her attorney said. Trump’s role, according to her attorney Jamie Gorelick, will be to serve as the president’s “eyes and ears” while providing broad-ranging advice, not just limited to women’s empowerment issues. Last week, for instance, Trump raised eyebrows when she was seated next to Angela Merkel for the German chancellor’s first official visit to Trump’s White House. As her role in the White House grows — a role that comes with no playbook — Trump plans to adhere to the same ethics and records retention rules that apply to government employees, Gorelick said, even though she is not technically an employee. But ethics watchdogs immediately questioned whether she is going far enough to eliminate conflicts of interest, especially because she will not be automatically subjected to certain ethics rules while serving as a de facto White House adviser. FBI’s Trump-Russia probe knocks White House on its heels FBI’s Trump-Russia probe knocks White House on its heels By SHANE GOLDMACHER and MATTHEW NUSSBAUM "Having an adult child of the president who is actively engaged in the work of the administration is new ground,” Gorelick conceded in an interview on Monday. “Our view is that the conservative approach is for Ivanka to voluntarily comply with the rules that would apply if she were a government employee, even though she is not.” A spokeswoman for Ivanka Trump said her role was signed off on by the White House counsel’s office, and the conflict issues were “worked through” with the office of government ethics. A White House spokeswoman did not respond to a request for comment about the unique arrangement. People close to Ivanka Trump said that she sees nothing unusual about the arrangement — it’s simply how she has worked with her father for years, as a senior official at the Trump Organization and as Donald Trump’s partner on “The Apprentice.” But in the White House, the unprecedented arrangement for a child of the president has raised new questions about potential conflicts of interest — and about why Ivanka Trump can’t simply join the administration as a government employee. Her husband, Jared Kushner, serves as an official senior adviser in the White House and was sworn in, but his hiring also raised questions of whether it violated anti-nepotism laws. The Justice Department ruled that those laws applied only to agency appointments. Ivanka Trump still owns her eponymous fashion and jewelry brand, even though she stepped down from her position at the company ahead of her father’s inauguration. She is also publishing a book, “Women Who Work,” which is due out in May. "I will continue to offer my father my candid advice and counsel, as I have for my entire life,” Trump said in a statement. “While there is no modern precedent for an adult child of the president, I will voluntarily follow all of the ethics rules placed on government employees." The arrangement, however, was greeted with more questions about what freedoms Trump was trying to preserve for herself — and why. “They're not saying she's going to voluntarily subject herself to ethics rules to be nice,” said Norm Eisen, the former ethics czar in the Obama administration. “There’s recognition that they're in very uncertain territory here. The better thing to do would be to concede she is subject to the rules. It would create some outside accountability, because if she can voluntarily subject herself to the rules, she can voluntarily un-subject herself to the rules.” POLITICO Playbook Get the latest news and scoops first, every morning — in your inbox. Email Sign Up By signing up you agree to receive email newsletters or alerts from POLITICO. You can unsubscribe at any time. Under the new rules, Trump has divested her common stock, tech investments, investment funds — and they will all appear on Kushner’s 278 financial disclosure form, required by all Cabinet nominees. Bloomberg News reported on Monday afternoon that Trump and Kushner sold as much as $36.7 million in assets to comply with federal ethics rules, according to the Office of Government Ethics. But when it comes to divesting from her business, however, Gorelick admitted there is no way to make it a conflict-free zone. “The one thing I would like to be clear on: we don’t believe it eliminates conflicts in every way,” Gorelick said. “She has the conflicts that derive from the ownership of this brand. We’re trying to minimize those to the extent possible." Gorelick argued that the area is murky because outstanding contracts with third party vendors mean that Ivanka Trump cannot simply close her business — those vendors could continue using her brand. She also can’t sell the business, her attorney argued, because the buyer would have the right to license her name and potentially create other ethical issues. Instead, Trump will be distancing herself, as much as possible, from the day-to-day operations of the Ivanka Trump brand and convey her interests to a trust. The trust, Gorelick said, will be controlled by her brother-in-law, Josh Kushner, and her sister-in-law, Nicole Meyer, who will be prohibited from entering the brand into any agreements with foreign countries or agencies. Ivanka Trump has appointed Abigail Klem to serve as president of her company, overseeing the day-to-day operations, and prohibited the company from using her image to sell the brand. The first daughter, however, will retain veto power to kill any deals that would be “unacceptable from an ethics perspective.” President Donald Trump's approval rating dipped to a new low in Gallup's daily tracking poll. Gallup: Trump hits low 37 percent approval By MADELINE CONWAY Gorelick, a former deputy attorney general in the Clinton administration, will also serve as the outside ethics adviser to the trustees. The business will also be prohibited from using her image to market the brand. Under the trust, her attorneys said, Ivanka Trump will receive only the information she needs for disclosure requirements and to facilitate compliance with conflict of interest and impartiality rules. As for the money she will make from her book, Trump is planning to donate the royalties and net proceeds to charities that focus on women in the workforce, with the help of a donor-advised fund. The measures that Ivanka Trump is undergoing to comply with federal ethics laws, ethics watchdogs said, are better than nothing. But they argued they are weak in the face of the flagrant violations of ethics standards by the president. Donald Trump’s hotels and golf courses, for instance, continue to engage in business with foreign and national groups that have interests in front of the White House. “You might be inclined to view this differently and more generously if the White House had shown a stronger commitment to ethics enforcement,” Eisen said.

U.S. Attorney Preet Bharara Says He Was Fired After Refusing to Quit

Preet Bharara last year. On Friday, Mr. Bharara was asked to step down along with 45 other United States attorneys. CreditBryan R. Smith for The New York Times

The call to Preet Bharara’s office from President Trump’s assistant came on Thursday. Would Mr. Bharara, the United States attorney in Manhattan, please call back? He did not.

The following day, Mr. Bharara was one of 46 United States attorneys appointed by President Barack Obama asked to resign — and to immediately clean out their offices. The request took many in his office by surprise because, in a meeting in November, Mr. Bharara was asked by the then-president-elect to stay on.

Mr. Bharara refused to resign. On Saturday, he announced on Twitter that he had been fired.

It was unclear whether the president’s call on Thursday was an effort to explain his change of heart about keeping Mr. Bharara or to discuss another matter. The White House would not comment on Saturday.

However, there are protocols governing a president’s direct contact with federal prosecutors. According to two people with knowledge of the events who were not authorized to discuss sensitive conversations publicly, Mr. Bharara notified an adviser to the attorney general, Jeff Sessions, that the president had tried to contact him and that he would not respond because of those protocols. Mr. Bharara then called Mr. Trump’s assistant back to say he could not speak with the president, citing the protocols.

Mr. Bharara was a highly public prosecutor who relished the spotlight throughout more than seven years in office. He pursued several high-profile cases involving Wall Street, and he was in the midst of investigating fund-raising by Bill de Blasio, the mayor of New York, and preparing to try former top aides to the governor of New York, Andrew M. Cuomo, who are both Democrats. It was not immediately clear how his departure would affect those cases and others that were pending.

Mr. Bharara stayed quiet on Saturday until early afternoon. Then, on his personal Twitter feed, which he set up eight days ago, he wrote: “I did not resign. Moments ago I was fired.” Referring to the Southern District of New York, he continued, “Being the US Attorney in SDNY will forever be the greatest honor of my professional life.”

Peter Carr, a Justice Department spokesman, declined to characterize Mr. Bharara’s departure that way, saying only, “I can confirm that Mr. Bharara is no longer the U.S. attorney for the Southern District of New York.”

All presidents choose their own appointees for United States attorney positions and almost always ask those appointed by their predecessors to leave. But the process under Mr. Trump was unusually abrupt, and it was yet another rocky encounter between the Trump administration and the nation’s law enforcement apparatus.

Mr. Bharara’s job had appeared to be secure. In November, he met at Trump Tower with the president-elect and several of his advisers, including Mr. Trump’s son-in-law, Jared Kushner, and his chief strategist, Stephen K. Bannon, according to two people briefed on that discussion who requested anonymity.

At the meeting, according to those briefed, Mr. Trump asked Mr. Bharara to remain in the job, which Mr. Bharara relayed to reporters and television cameras in the Trump Tower lobby.

Then came the order to resign on Friday, creating what was described as a feeling of whiplash in the prosecutor’s Manhattan office. One person familiar with the views of current prosecutors described an oddly subdued reaction mixed with anxiety as the events unfolded. “You have a sense of how it’s going to end, and it’s not going to end well,” the person said.

But Mr. Bharara, unlike his fellow United States attorneys, publicly refused to leave. He gave no public statement citing a policy or legal issue that had affected his decision to refuse the resignation order.

It was unclear how many of the 46 holdovers had submitted resignations. Mr. Bharara’s colleague Robert L. Capers, the United States attorney in Brooklyn, announced his resignation on Friday afternoon.

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Two White House officials, speaking on condition of anonymity to avoid offending the president, said the promise to keep Mr. Bharara on was a product of a chaotic transition process and Mr. Trump’s desire at the time to try to work with Senator Chuck Schumer, Democrat of New York, with whom Mr. Bharara is close. The relationship between Mr. Trump and Mr. Schumer, the Senate minority leader, has since soured.

It was Dana Boente, the acting deputy attorney general, who called Mr. Bharara on Saturday. According to a Justice Department official, Mr. Boente told Mr. Bharara that he was one of the 46 United States attorneys being told to resign.

Mr. Bharara, the official said, replied that that was in conflict with Mr. Trump asking him to stay on. Mr. Boente reiterated that Mr. Bharara was being asked to resign, and Mr. Bharara said that he was interpreting that as being fired. Mr. Boente then said again that the department was asking him to step down, according to the official.

Mr. Bharara’s office is overseeing the case against the former aides to Mr. Cuomo and the inquiry into fund-raising by Mr. de Blasio, who has been a target of Mr. Trump’s ire as he has positioned himself as a vocal opponent of the president’s on the left.

His office is also overseeing an investigation into whether Fox News, which is owned by the media magnate Rupert Murdoch, failed to properly alert shareholders of settlements with female employees who had accused the channel’s former chief, Roger Ailes, of sexual harassment.

The investigation of Mr. de Blasio’s campaign fund-raising has been going on for about a year and is examining whether the mayor or his aides traded beneficial city action for political donations. Mr. de Blasio was interviewed recently by prosecutors who appeared to be in the final stages of determining whether to seek charges in the matter. Mr. de Blasio’s press secretary has said that the mayor has cooperated with Mr. Bharara’s inquiry and that he and his staff had “acted appropriately and well within the law.”

White House officials have said little about the timing of the mass push for resignations, other than insisting it had not been a response to a call for a purge on Fox News, where one host, Sean Hannity, urged the president to clean house at the Justice Department.

Phil Singer, a former aide to Mr. Schumer and a Democratic strategist, called it “absurd” to suggest that Mr. Bharara’s firing had been meant to punish Mr. Schumer. He noted that any investigation involving Trump Tower would fall within the purview of Mr. Bharara’s office.

The Southern District of New York, which Mr. Bharara has overseen since 2009, encompasses Manhattan, Mr. Trump’s home before he was elected president, as well as the Bronx, Westchester County and other counties north of New York City.

The Thursday afternoon phone call from the Oval Office was a curious sidelight to the fast-moving events. Mr. Trump’s assistant asked the prosecutor to return the call. Before doing so, Mr. Bharara called Mr. Sessions’s chief of staff, Jody Hunt, to alert the Justice Department to the call and express concern about contacts between presidents and federal prosecutors.

Aides to Mr. Trump did not respond to three emails seeking comment about the nature of Mr. Trump’s call to Mr. Bharara.