Prosecutors Push Plea Deal In Investigation Of Manafort Son-In-Law

After he was named in the grand jury indictment of Paul Manafort and Rick Gates, many in the media speculated that Special Counsel Robert Mueller might also be pursuing an indictment against Manafort’s estranged son-in-law, Jeffrey Yohai, who memorably accused his one-time father-in-law and financial backer of ‘conspiring’ to mislead a federal bankruptcy court back in September.

While the speculation wasn’t wrong, the Wall Street Journal reported Thursday that prosecutors in a separate probe are seeking a plea deal with Yohai, though the exact nature of the charges being pursued - and any relationship they might have to the charges listed in the indictment - are not yet known. It’s unclear if Yohai is also still being investigated by Mueller.

Here’s WSJ:

The Justice Department is seeking to reach a plea deal in its criminal investigation of the former son-in-law of Paul Manafort, President Donald Trump’s one-time campaign chairman, according to people familiar with the matter.

 

The investigation into Jeffrey Yohai—who hasn’t been charged with any crime—by the Federal Bureau of Investigation and U.S. attorney’s office in Los Angeles is separate from the Washington-based probe of his former father-in-law and others by Special Counsel Robert Mueller, who is examining Russian influence on last year’s presidential election, some of the people familiar with the situation said.

As the investigation into Yohai’s failed house-flipping projects progressed, federal prosecutors reached out to Yohai’s attorney and to a Los Angeles-based lender, Genesis Capital LLC, about a possible plea deal. Genesis lent money to the entities Yohai created for the failed projects, which also received an investment from Manafort. WSJ previously reported that prosecutors were looking into another Yohai venture in NYC. Aaron May, a lawyer for Yohai, said in a statement to WSJ: “Yohai has not been charged with any crime nor has he entered into any plea agreements.” It isn’t clear to what charges investigators want Yohai to plead guilty; it’s also unclear what Yohai would be charged with should he decline the deal.

Manafort and Yohai worked together on real-estate deals related to multiple properties, both in Los Angeles and New York, court and real-estate records show, including some alleged to have involved loan fraud, according to Mueller’s indictment. Yohai was referred to in the indictment as Manafort’s son-in-law, but wasn’t mentioned by name. Manafort’s daughter, Jessica, filed for divorce from Yohai earlier this year. Records show a divorce judgment was issued in August. Manafort, his wife and daughter put at least $4.2 million into house-flipping projects, federal bankruptcy-court records show. Yohai put the four properties into corporate bankruptcy in December 2016, as the lender, Genesis, was moving toward foreclosure, records show.

Genesis was also the lender in early 2016 on a Brooklyn townhouse cited by Mr. Mueller in the indictment accusing Manafort of loan fraud. Manafort purchased the property through a corporation for nearly $3 million in 2012, using money from another entity in Cyprus, then took out loans from Genesis in early 2016, in part for construction at the property. Meanwhile, Genesis got loan guarantees for the Brooklyn property from Manafort, his wife Kathleen, Yohai and Jessica Manafort, court records show.

Yohai was referenced in the Manafort indictment in connection with a Manhattan condominium Manafort purchased in 2012 through a corporation for $2.85 million, which the government alleged used funds wired from entities he controlled in Cyprus. Mueller accused Manafort of fraud for telling the bank that supplied the loan that Yohai and Manafort’s daughter, Jessica Manafort, would be living there full time, when in fact they intended to rent it out on AirBnB.

Of course, this isn't the first time that Yonhai's possible cooperation with federal investigators has been reported. Politico said back in August that federal investigators had approached Yohai about cooperating earlier this summer. Their approach reportedly set off "real waves" in Manafort's orbit. Only then, they specified that it was Mueller who had come knocking, not the LA US Attorney's office.

To be sure, the WSJ report leaves many questions unanswered. Is this probe really a smoke screen to get Yohai to deliver damning testimony against his former father-in-law - something he’s already proven more than willing to provide? As the investigation moves toward its conclusion, its relationship to the Mueller probe - if any - will become more apparent.

Comments

pods Four chan Thu, 11/09/2017 - 09:15 Permalink

They are probably leery to go after her because they know she will take them all down with her. She probably has a Hooveresque file cabinet on anyone who could do her harm.  Shit, she was using the FBI to build dossiers on people back when she was first lady IIRC.She is a shit slinger and will take anyone down to stay afloat, much like a drowning person.And the media will gladly oblige her when she proffers up some dirt on people coming after her.And we all know what will happen if that doesn't work. Arkancide.pods

In reply to by Four chan

Bush Baby pods Thu, 11/09/2017 - 09:33 Permalink

If no Russian Collusion is found, Trump should pardon everyone who gets convicted, kind of a retrospective immunity deal,only fair since all the Clinton cohorts got the immunity up front.So the Russian Collusion simply becomes a blank check to take down and discredit anyone in Trumps orbit. There's not one Piece of Shit on either side of the aisle that isn't guilty of something. Kind of a "Here's what you get for supporting Trump"

In reply to by pods

mtl4 Bush Baby Thu, 11/09/2017 - 11:24 Permalink

Mueller has no case against anyone, the goal will simply be like going after the mob and hoping each individual will flip in an effort to save thair own skins.  Not to mention the special prosecutor is a political jockey himself, so it's an old school witch hunt there's no doubt about it. In other news, Hitlery still has zero charges against her.......rigged?

In reply to by Bush Baby

Caloot Bush Baby Thu, 11/09/2017 - 10:30 Permalink

So you buy a home, say your going to live in it, decide not to, don't flip it, and rent it out, and now your prosecuted on fraud?   You've got to be fking kidding me.  That happens all over America.   Thats the plea pressure?   This is getting to be a joke.  Not a drop on Russian colussion.   This guy looks like a clown.  This needs to end.. honestly.   

In reply to by Bush Baby

Ex-Oligarch Caloot Thu, 11/09/2017 - 16:04 Permalink

Yes.  Plus:"... loans from Genesis in early 2016, in part for construction at the property. Meanwhile, Genesis got loan guarantees for the Brooklyn property from Manafort, his wife Kathleen, Yohai and Jessica Manafort"Apparently, the prosecution theory on the townhouse is that the same people who cause the corporate entity to defraud the bank also executed personal guarantees of the debt.  As someone else mentioned up thread, the reason the prosecution is pushing for a plea is because the case would be laughed out of court.

In reply to by Caloot

junction Cognitive Dissonance Thu, 11/09/2017 - 08:42 Permalink

The bigger picture is that the failure of this high-end house flipping project is a warning.  A warning that all those other investors who thought real estate prices have nowhere to go but up, may face hard times ahead.  Depending on AirBnB renters to cover your fixed mortgage costs is delusional.  Once the Chinese money launderers slow down their investing in local real estate, that real estate market is in trouble.  Unlike Manafort, no sane person would take out a $5 million home renovation loan on a townhouse in Carroll Gardens, Brooklyn. Meanwhile, the FBI investigation into the body parts business run by Medcure could mushroom. http://www.reuters.com/article/us-usa-bodies-fbi-exclusive/exclusive-fb… the "Foreign Intelligence Service", run by a sham poster, is getting into the act.http://beforeitsnews.com/alternative/2017/11/fbi-raids-hillary-clinton-…

In reply to by Cognitive Dissonance

lester1 Thu, 11/09/2017 - 08:11 Permalink

Wtf is that deep State swamp creature Mueller doing ??.. Investigating Russian meddling in the election or unrelated white collar crimes from years ago???

Sofa King Thu, 11/09/2017 - 08:12 Permalink

Move the highly-compensated Mueller Investigative team over to Pro-Bono and lets see how quickly they wrap this shit show up.This scam is one of the biggest fucking frauds perpetrated against the American Taxpayer in recent history.Motherfuckers are trying to convice the public that 2+2=5 

Cardinal Fang Thu, 11/09/2017 - 08:15 Permalink

So they are busting the guy for saying he was gonna live in the house but he really intended to rent it on air-bnb?

Isn't that the DOJ equivalent of taking the tag off a mattress under penalty of law?

Your tax dollars at work.

headhunt Thu, 11/09/2017 - 08:33 Permalink

At the very least trump needs to push DOJ to appoint another Independent Special Counsel to investigate Hillary and the Mueller connection ASAP.Make sure they are very conservative and as partisan as Mueller and his leftist clown clique.

highwaytoserfdom Thu, 11/09/2017 - 08:47 Permalink

The whole national security state of regim change has to end.  Mueller is complicit in war crimes and murders in the US and world wide.  This NATO MIC  complex need to be swept up in some sort of Nuenenberg trial. POTUS  MAGA does not include the 6m MIC Jobs or 600k security state or  drug and medical criminal cartel on murders.Mueller is Bush's 911 cover up putz.  

BendGuyhere Thu, 11/09/2017 - 08:55 Permalink

All Yohia has to do is testify under oath that he met with someone, who may have had a russian accent, who knew someone, who may have had a russian surname, who seemed to indicate that someone associated with VLADIMIR PUTIN, the ultra-arch demon of all time, might be willing to lend some money from a shadowy bank in Cyprus, blah blah blah.....This entire stupidly constructed ham-fisted russian collusion narrative has grown cobwebs and is disintegrating. Not even the MSM echo chamber can sustain it.It is a very poorly designed Plan B to cover some very fat asses from accountability for the massive collusion and treason of URANIUM ONE.WE ALL KNOW THAT JOHN MCCAIN IS A COMPLETE COMMY TRAITOR TO THE USA, HIDING BEHIND A 'WAR HERO' MASK, WHAT IS THE XCUSE WITH THE REST OF THE RINO ESTABLISHMENT, INCLUDING JEFF SESSIONS?  IS THEIR WAY OF LIFE UNDER GLOBALISM SO AMAZING THAT THEY CAN'T LET GO? THEY WOULD LITERALLY SELL OUT THEIR OWN MOTHER FOR THAT PRIVATE JET?

homebody Thu, 11/09/2017 - 09:01 Permalink

My DNA says I might be related to some of these clowns back ten generations - I might end up in prison for collusion as well.  And we are paying for this fishing expedition.  Wake up everyone and get ready to punt all RINO's next year.

highwaytoserfdom Thu, 11/09/2017 - 09:11 Permalink

nobody is going to ride in wearing a white hat  You have that right..  look at the past AG's  and would fill ten Gallon with puke.And the one that sat on security state got his head blown off in LA. Think will run for congress and place a bill in to replace badges and uniforms with tranny cross dressing outfits.  Then second to replace BLS with Shadowstats Criminals running the asylum ..

optimator Thu, 11/09/2017 - 09:28 Permalink

The Third Reich introduced "Sippenhaft", the idea that a family can share the responsibility for a crime or act committed by one of its members  collective punishment because of family association. As a legal principle, it was derived from Germanic Law in the Middle Ages, usually in the form of fines.