In what should have probably been the first action in the investigation of former Trump campaign chairman Paul Manafort, WSJ reports that New York prosecutors have decided to 'follow the money', demanding records relating to up to $16 million in loans from a bank run by a former campaign adviser for President Trump.
As a reminder, in mid-April, federal investigators requested Mr. Manafort’s banking records from Citizens Financial Group, the Journal previously reported, but now...
The subpoena by the Manhattan district attorney’s office to the Federal Savings Bank, a small Chicago bank run by Steve Calk, sought information on loans the bank issued in November and January to Mr. Manafort and his wife, the person said.
The loans were secured by two properties in New York and a condominium in Virginia, real-estate records show.
Mr. Calk was a member of Mr. Trump’s economic advisory panel who overlapped with Mr. Manafort on the Trump campaign.
Around the time they were issued, Mr. Calk had expressed interest in becoming Mr. Trump’s Army Secretary, the Journal previously reported, citing three people briefed on the Army interactions.
A veteran whose bank caters to former members of the military, Mr. Calk didn’t get the job, and previously declined to comment on it.
Mr. Calk has previously said that the loans to Mr. Manafort were standard with more than sufficient collateral.
Messrs. Manafort and Calk knew each other before the campaign, a person familiar with the relationship has said.
The Journal reported in May that Manhattan District Attorney Cyrus R. Vance Jr. and New York Attorney General Eric Schneiderman had begun examining real-estate transactions by Mr. Manafort, who has spent and borrowed tens of millions of dollars in connection with property across the U.S. over the past decade. Investigators at both offices are examining the transactions for indications of money-laundering and fraud, people familiar with the matters have said.
Asked by a reporter for The Wall Street Journal about the subpoena Monday, Calk said, “I’ve got no comment, but I appreciate the call.”