A Company That Jared Kushner Partially Owns Received $90m From Offshore Investors Just Since 2017

There has been no shortage of controversy regarding the finances and taxes of President Trump and his family. Most recently, Jared Kushner is back in the spotlight for potential tax avoidance connections. A recent report indicates that just since 2017, a company that Kushner partially owns received a total of $90 million from investors offshore.

The Details

The company in question is a real estate company, Cadre, that Jared Kushner partially owns. This funding comes from an opaque offshore company. More importantly, Cadre received the funds while Kushner was in his current role of senior advisor to President Trump, his father-in-law. Corporate filings, as well as interviews, indicate that Kushner is an international envoy for the United States. The money itself came from a Goldman Sachs vehicle within the Cayman Islands, a jurisdiction known for its corporate secrecy and tax haven status.

Although Kushner did sell some assets when he joined the Trump administration, he retained his stake in Cadre. Kushner’s financial disclosure documents indicate his holdings in the company are worth as much as $50 million. His attorneys indicate that after joining the administration, Kushner did resign from the board of Cadre and reduced the ownership stake so that it is under 25 percent. He is also not involved actively in any company operations. Even so, Kushner’s connection to Cadre exists.

As far as the foreigners who invest in Cadre with the assistance of Goldman Sachs, the companies have not disclosed their names. This information does not legally need to be public. Multiple sources indicated that most of the money originated in another offshore tax haven before going to the Cayman Islands while other investments originated in Saudi Arabia.

Why It Matters

The offshore funding for Cadre from a company about which few details are known could lead to conflicts of interest. This is particularly concerning giving Kushner’s prominent role in the United States government. Ethics experts are concerned about the transparency lack. These experts have indicated concerns that others will feel that Kushner is being influenced improperly.

This issue is so important that Kushner did not initially receive security clearance when he joined the Trump administration. This clearance block was due to these specific reasons, potential foreign influence and outside business interests. Allegedly, Kushner’s clearance was only approved when Trump intervened.

More on Cadre

Kushner, along with Joshua, his brother, and Ryan Williams, their friend, founded Cadre in 2014. The company’s operations are out of a Manhattan building that the Kushner family’s real estate business owns. The company advertises itself in the form of an online marketplace that lets investors buy property. Additionally, it has a real estate investment fund that is worth over half a billion dollars. Ethics experts have concerns about the fact that this investment fund had slow growth until Kushner entered the White House but has multiplied in value by five times since then.

In August 2017, Cadre began using the Goldman Sachs offshore vehicle to collect funds. In January 2018, the bank announced a deal that clients could use to invest up to $250 million total in Cadre. Complicating the tax haven implications and secrecy, the offshore vehicle of Goldman Sachs in question is under the management of Cayman Islands accountants with ownership by another offshore Goldman Sachs company. This is fully legal despite increased scrutiny for offshore businesses.

This is unlikely to be the last we hear about foreign influence or business interests impacting the Trump administration, given that President Trump himself still retains ownership of most of his business assets.

Source:

https://www.theguardian.com/us-news/2019/jun/10/jared-kushner-real-estate-cadre-goldman-sachs