Paul Manafort, the former Trump campaign manager, just got a subpoena for a $3.5 million mortgage that he took out on a Bridgehampton home, NBC News and New York Daily News report. He took out the mortgage shortly after leaving the campaign.
Back in August, Manafort left the Trump campaign upon allegations of working in Ukraine with a pro-Russian political party and being paid millions in the process. The same day that Manafort left the campaign, he created Summerbreeze, LLC, a holding company through which the $3.5 million loan was taken out.
The UCC filing does not have a name or signature from Manafort, though it does list his Florida residence, while the Bridgehampton address is listed as collateral.
In addition, the lender never entered the information for the loan to government record. This means that the lender isn’t protected, as there’s no record of the lender being owed money by the borrower. Not recording the information to the county isn’t illegal, but it is strange for a lender not to do so, as it removes the protection that’s ensured with the mortgage notice.
A spokesperson claims that the loan was taken out as a bridge loan and that it was repaid in December. Manafort’s real estate attorney, Bruce Baldinger, told NBC that the mortgage notice was sent in for recording, but “was returned by the county recording clerk ‘due to deficiencies in accompanying documents.’” The filing that showed the loan repayment—a UCC3—was filed six months after in May, and hasn’t appeared in state nor county records.
In December, Summerbreeze LLC became the deed holder for the Bridgehampton property, after being transferred from Kathleen Manafort, Paul Manafort’s wife.
The loan was made by a subsidiary of Spruce Capital—which was co-founded by Joshua Crane, who has a real estate partnership history with Trump.
Spruce Capital has a financial connection with Ukrainian-American real estate mogul Alexander Rovt, who put in a donation to the Trump campaign on Election Day for $10,000—however, the legal limit for such a donation is $2,700.
Spruce Capital claims that they do not know of any connections to Rovt in regard to this loan.
Baldinger also told NBC that Manafort didn’t have any contact with Spruce Capital after the loan was repaid.
In December, Summerbreeze, LLC took out a $9.5 million loan through the Federal Savings Bank of Chicago, under which the Bridgehampton residence is listed, again, as collateral. The chief executive of the bank, Steve Calk, served as an economic advisor to the Trump campaign.