Kushner Cos. Subpoenaed by Feds 04/20 06:26
NEW YORK (AP) -- The Kushner Cos. has been subpoenaed by federal prosecutors
for information related to an Associated Press report that the company filed
dozens of false documents about its buildings in New York City.
The real estate company issued a statement saying it has "nothing to hide
and is cooperating fully with all legitimate requests for information,
including this subpoena."
The statement Thursday acknowledged that the federal subpoena arrived last
month, a day after the AP reported the Kushner Cos. routinely filed false
paperwork with the city stating it had zero rent-regulated tenants in buildings
across the city when, in fact, it had hundreds. The AP report covered a
three-year period when the real estate company was run by Jared Kushner,
President Donald Trump's son-in-law who is now a senior adviser.
Tenant advocates say such false filings allow landlords to avoid heightened
city oversight designed to keep lower-paying, rent-regulated tenants from being
harassed during construction and pressured to leave, freeing up apartments for
Kushner Cos. told the AP at the time of its report that the company
outsources preparation of construction permit applications and fixes any
mistakes immediately. Records show the company did file some amended documents,
often more than a year later.
The AP report, based on work by nonprofit watchdog Housing Rights
Initiative, has sparked an inquiry by the New York state attorney general's
office and a city council investigation.
The Wall Street Journal reported earlier Thursday that the U.S. attorney's
office in Brooklyn had subpoenaed housing paperwork from the company. The
office declined to comment to the AP
The Brooklyn attorney's office also has reportedly subpoenaed the Kushner
Cos. over a visa-for-investment program to raise money from Chinese investors
for its real estate projects.