666 Fifth Avenue proceeds wrongfully diverted, lawsuit says

December 02, 2008 11:09AM

A lawsuit filed in New Jersey State Superior Court alleges
that developer Charles Kushner funneled more than $5 million from a real estate
deal into the New York Observer, the newspaper run by his son Jared. The
lawsuit claims the payments to the newspaper, and other payments used to cover
family loans and Charles Kushner’s personal mortgage, were a “wrongful
diversion” of proceeds from the purchase of 666 Fifth Avenue. Kushner
purchased the building in January 2007 for $1.8 billion,
the highest price paid for a single office building in the U.S. at the time. Kushner spent
a year in federal prison
beginning in 2005 after pleading guilty to filling false tax returns, making illegal campaign
donations and retaliating against a witness. The lawsuit was filed in Bergen County November 25.

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