Judge tosses fraud suit against Manafort’s son-in-law over technicality

Now the fight is heading to state court

New York /
Jul.July 27, 2017 06:00 PM

Former Trump campaign chair Paul Manafort’s son-in-law Jeffrey Yohai just won some precious time in his fight against fraud charges. On Wednesday, a federal judge dismissed an investor’s lawsuit over a technicality.

The plaintiff, New York photographer Guy Aroch, had sued in federal court in November, alleging he invested $2.9 million in Yohai’s real estate projects but never got any money back. Instead, Aroch alleged, Yohai used the money for “personal travel; lavish purchases; and/or speculative ventures outside the investment mandates.”

Yohai filed a motion to dismiss the suit, arguing that because both parties live in New York the matter should be brought to a state court. A judge granted the motion on Wednesday. Aroch’s attorney, who declined to comment, promptly refiled the suit in state court.

Yohai’s legal troubles made headlines because Manafort, who ran President Trump’s campaign until resigning in late August, invested millions with his son-in-law. In June, the New York Times reported that the FBI is investigating Manafort over mortgages he took out in part to fund his investments. He reportedly borrowed $16 million against two New York properties and a Virginia home from a small Chicago bank, whose head personally knew Manafort and was trying to land a job in the Trump administration.

Yohai’s business bought luxury homes in California with an eye toward redeveloping them. His investors include actor Dustin Hoffman and his son Jake, who shelled out $3 million for a Los Angeles project that ended up in bankruptcy.


Related Articles

arrow_forward_ios
Photo illustration of Sen. Brad Hoylman, who championed the pied-à-terre tax. (Getty)

Pied-à-terre tax revenue estimate slashed by 41%

Pied-à-terre tax revenue estimate slashed by 41%
Kirk Goodrich, president of Monadnock Development, is opposed to the bill sponsored by Bran Lander. (Getty, Monadnock Development)

Council bill favoring nonprofits for affordable housing will hurt minority-led firms: developers

Council bill favoring nonprofits for affordable housing will hurt minority-led firms: developers
Sen. Charles Schumers aid President-elect Joe Biden agreed to assist NYC. (Getty)

NYC loses $2.5B in property taxes, gets $1B from FEMA

NYC loses $2.5B in property taxes, gets $1B from FEMA
President-elect Joe Biden's relief plan focuses on the coronavirus and opening schools. (Getty)

Biden’s $1.9T package would extend eviction ban, boost rent relief

Biden’s $1.9T package would extend eviction ban, boost rent relief
Gov. Andrew Cuomo announced that a major development surrounding Penn Station. (Getty)

Cuomo adds housing to $51B Midtown West project

Cuomo adds housing to $51B Midtown West project
Eric Trump and Donald Trump Jr. with President Donald Trump (Getty)

These are the companies dumping the Trump Organization

These are the companies dumping the Trump Organization
Ray McGuire photographed by Axel Dupeux.

The Closing: Ray McGuire

The Closing: Ray McGuire
Sen. Jabari Brisport (Photo via Jabari for State Senate; iStock)

Socialist notches key NY Senate appointment

Socialist notches key NY Senate appointment
arrow_forward_ios

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

Loading...