03.09.18

Peters, Colleagues Press Citigroup and Apollo on Loans to Kushner Business

Kushner Companies Received More Than Half a Billion Dollars after Company Officials Met with Kushner at White House

Washington, DC – U.S. Senators Gary Peters (D-MI), Ranking Member of the Federal Spending Oversight and Emergency Management Subcommittee, joined colleagues in sending letters to Citigroup and Apollo Global Management seeking information on reports that the companies provided more than $500 million in loans to Kushner Companies, the family business of Senior Advisor to the President Jared Kushner, after meeting with Kushner in the White House.

"Federal ethics laws prohibit federal employees from profiting from their government service, and Mr. Kushner's refusal to fully divest from his financial holdings raises questions about his behavior as a Senior Adviser to President Trump," wrote the Members. "It would be a serious matter if the loans provided to Kushner Companies by Apollo (and Citigroup) resulted in a violation of federal ethics laws."

In January 2017, Kushner announced that he was stepping down as CEO of Kushner Companies to work as a Senior Advisor to President Trump. However, Kushner appears to have maintained financial holdings in Kushner Companies over the course of his first year serving in the White House. Reports of Mr. Kushner's interactions with Apollo and Citigroup have raised new questions about Mr. Kushner's conflicts of interest.

According to the New York Times, Apollo’s founder Joshua Harris had multiple meeting with Mr. Kushner in early 2017. In November 2017, Apollo lent $184 million to Kushner Companies to "refinance the mortgage on a Chicago skyscraper." Mr. Kushner also met with Citigroup's CEO Michael L. Corbatand, and shortly thereafter Citigroup provided Kushner Companies "and one of its partners $325 million to help finance a group of office buildings in Brooklyn."

The members of Congress asked Citigroup and Apollo to provide a list of all loans made to Kushner Companies, all meetings held in person or by phone between them and Kushner Companies, and all documents and communications related to any loans made by Citigroup to Kushner Companies or any entity affiliated with or partnered with Kushner Companies.

Along with Peters, the letter was signed by Senators Elizabeth Warren (D-MA) and Tom Carper (D-DE) and Representative Elijah Cummings (D-MD). Earlier this week, the same members of Congress sent letters to the White House and to Kushner Companies seeking information on these loans and Mr. Kushner's involvement.

Text of letter to Citigroup can be found here.

Text of letter to Apollo Global Management can be found here.