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BofI Federal has ties to Jared Kushner

The bank was under investigation until last year

The Bank of Internet building in University City. Don’t go looking for a branch building because there isn’t one. - Image by Andy Boyd
The Bank of Internet building in University City. Don’t go looking for a branch building because there isn’t one.

San Diego-based BofI Federal, formerly known as Bank of the Internet, appears to have ties to Jared Kushner, President Trump’s son-in-law, according to a study by ProPublica, the group chasing business and banking fraud. The Securities and Exchange Commission was investigating the company until last year.

In a story appearing yesterday (April 30), ProPublica says the bank has been involved recently in two real estate transactions involving Kushner Companies.

Earlier this month, BofI Federal took over a mortgage previously owned by Kushner Companies for a Brooklyn development, according to the story. The deal involves a project in the gentrifying Bushwick Neighborhood. The bank said in a statement that the company “has no exposure or relatonship with Mr. Kushner” with respect to the project. The bank says it was a routine refinancing.

According to Pro Publica, BofI does most of its deals in California, but according to a January, 2017 Reader story, it made deals in foreign countries.

“This month, the company made a loan of at least $33 million to a well-known developer, Toby Moskowitz for a Brooklyn project,” says Pro Publica, which can’t tell if BofI made money on it. BofI played a role, with Fortress Investment Group, in a Jersey City project. But BofI says it is just participation in a loan.

The 2017 Reader story tied BofI to some dubious San Diego County characters: Barry Minkow, the former Ponzi schemer/evangelical minister who is in prison once again, and members of the notorious Oceanside Galanis family. Brothers Jason and Derek Galanis had been charged with fleecing Native Americans. The father, John Galanis, was getting out of prison at the time. BofI blamed a publication for concocting the story to drive down BofI stock.

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The Bank of Internet building in University City. Don’t go looking for a branch building because there isn’t one. - Image by Andy Boyd
The Bank of Internet building in University City. Don’t go looking for a branch building because there isn’t one.

San Diego-based BofI Federal, formerly known as Bank of the Internet, appears to have ties to Jared Kushner, President Trump’s son-in-law, according to a study by ProPublica, the group chasing business and banking fraud. The Securities and Exchange Commission was investigating the company until last year.

In a story appearing yesterday (April 30), ProPublica says the bank has been involved recently in two real estate transactions involving Kushner Companies.

Earlier this month, BofI Federal took over a mortgage previously owned by Kushner Companies for a Brooklyn development, according to the story. The deal involves a project in the gentrifying Bushwick Neighborhood. The bank said in a statement that the company “has no exposure or relatonship with Mr. Kushner” with respect to the project. The bank says it was a routine refinancing.

According to Pro Publica, BofI does most of its deals in California, but according to a January, 2017 Reader story, it made deals in foreign countries.

“This month, the company made a loan of at least $33 million to a well-known developer, Toby Moskowitz for a Brooklyn project,” says Pro Publica, which can’t tell if BofI made money on it. BofI played a role, with Fortress Investment Group, in a Jersey City project. But BofI says it is just participation in a loan.

The 2017 Reader story tied BofI to some dubious San Diego County characters: Barry Minkow, the former Ponzi schemer/evangelical minister who is in prison once again, and members of the notorious Oceanside Galanis family. Brothers Jason and Derek Galanis had been charged with fleecing Native Americans. The father, John Galanis, was getting out of prison at the time. BofI blamed a publication for concocting the story to drive down BofI stock.

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Comments
12

Given this and other stories linked to it, it appears BofI is a bank in name only: it's really a laundry for shady people's dirty money.

May 1, 2018

Cassander: I would not reach that conclusion at all. As far as I know, BofI Federal does a lot of legitimate banking. Remember, the SEC investigation was closed. Banks routinely join in financing of large projects in which other banks are involved. Best, Don Bauder

May 1, 2018

Kushner sounds like Chas Keating and Lincoln Savings and loan of the notorious savings and loan crash and frauds of decades gone by... using "their banks" and its funds as their personal piggy banks

Thanks for pointing this Don..

I will avoid this bank like the plague. Everything the Trumps and Kushners touch turns to sh**.

May 1, 2018

SportsFan0000:Kushner's company is a family affair. When you think about it, no New York City real estate company is reputable. Best, Don Bauder

May 1, 2018

I use an Internet bank named Ally Bank. They have better rates for CD's and other services because they have no branches. BoI seems legitimate. It's rated 4 stars on Nerdwallet. They just do pay good returns considering they have no branches.

May 1, 2018

Ponzi: Ally Bank grew out of GMAC, the one-time finance subsidiary for General Motors. Some time ago, that was considered a black mark. I don't know that it is now. Best, Don Bauder

May 1, 2018

Don, I didn't know that. I am surprised I didn't do more research when I signed up. They service car loans, savings and investment accounts. I just found them to be the offering the best rates on CD's. If they are FDIC insured, then I am comfortable.

May 1, 2018

They may pay good rates of CD's but I like to go into a brick and mortar bank and actually see and talk to real live human beings.

May 2, 2018

Ponzi: I hesitate to denigrate Ally just because it was once GMAC's financial subsidiary. It may have changed. Best, Don Bauder

May 2, 2018

AlexClarke: Your attitude is understandable. I don't know whether you get a better paper trail from a bricks-and-mortar bank than an online institution. It seems that you would. Best, Don Bauder

May 2, 2018

I do almost everything online anymore. Pay bills, order parts, goods, even food. I manage stocks, and banking online. I hardly ever go to a bank unless I have to for notary services or something. It all depends on the individual and their comfort zone, so I respect all concerns people have about online security and privacy. My last career was a computer programmer, five of those years at Costco. I am comfortable with Internet transactions and take the necessary precautions. Online banking is safer than using an ATM card where the thieves often use mechanical devices or cameras to steal passwords and account data.

May 2, 2018

Ponzi: I would do more online if I could figure out how to do certain things. Best, Don Bauder

May 2, 2018

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