Jared Kushner didn’t disclose stake in Cadre, $1B in loans: report

Experts say failure to report presents potential conflict of interest

New York /
May.May 02, 2017 09:30 AM

When filling out his government disclosure forms, Jared Kushner omitted a few things, including his stake in a real estate tech company and at least $1 billion in loans.

The president’s son-in-law and senior advisor didn’t disclose his stake in Cadre, a tech startup he co-founded with his brother and Ryan Williams in 2014, or loans totaling at least $1 billion from 20 different lenders to properties and companies co-owned by Kushner, the Wall Street Journal reported. As a stakeholder in Cadre, Kushner is business partners with Goldman Sachs Group, Peter Thiel and George Soros (whose investment was first reported by The Real Deal in January).

His interest in Cadre is the kind of investment that would usually need to be disclosed. But his failure to publicly report the debt doesn’t necessarily violate disclosure rules, experts told the Journal. Still, there’s some concern that undisclosed business ties could present potential conflicts.

“Anything that presents a potential for the conflict of interest should be disclosed so that the public and the press can monitor this,” Trevor Potter, a Republican former chairman of the Federal Election Commission, said.

An attorney for Kushner noted that a revised version of his disclosure forms includes his stake in Cadre. According to the papers filed with the Financial Industry Regulatory Authority, Kushner holding company JCK Cadre LLC, owns 25 to 50 percent of Quadro Partners, Inc., which owns at least 75 percent of RealCadre LLC, which operates Cadre. Kushner has reduced his ownership stake to less than 25 percent, Kushner’s attorney Jamie Gorelick told the Journal.

In January, the White House announced that Kushner’s assets would be divested in a trust administered by family members.  [WSJ] — Kathryn Brenzel 


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
Eric Gordon
Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world
Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world
Big Tech locations in NYC
MAP: Here’s a look at all the Big Tech locations in NYC
MAP: Here’s a look at all the Big Tech locations in NYC
Terra Capital's Vik Uppal, RedSky's Benjamin Bernstein with 658 Driggs Avenue and 625 Driggs Avenue (Terra, ICSC, StreetEasy)
RedSky founders accused of failing to repay bailout
RedSky founders accused of failing to repay bailout
Jared Kushner and 666 Fifth Avenue (Getty, David Shankbone, CC BY 2.5 - via Wikimedia Commons)
Congress probes Jared Kushner’s dealings amid 666 Fifth Avenue sale
Congress probes Jared Kushner’s dealings amid 666 Fifth Avenue sale
The Torkian Group's Hersel Torkian and 250 East 83rd Street (Getty, Google Maps, The Torkian Group)
Torkian nabs $145M loan for Upper East Side development
Torkian nabs $145M loan for Upper East Side development
Connecticut Governor Ned Lamont (Registered Citizen, Getty)
Half of Section 8 vouchers have gone unused in Connecticut
Half of Section 8 vouchers have gone unused in Connecticut
Icon's Jason Ballard (Jason Ballard via Twitter, Getty)
Icon lands a $57M lunar construction deal with NASA
Icon lands a $57M lunar construction deal with NASA
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...