BofI Federal has ties to Jared Kushner

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.