President Donald Trump’s former campaign chairman and another man defrauded the Banc of California in order to obtain a $1 million loan, the financial institution alleges in a lawsuit filed in Los Angeles.
The Banc of California’s Los Angeles Superior Court complaint, filed Thursday, alleges Paul Manafort and his former son-in-law, Jefferey Yohai, defaulted on the loan in 2016. As of Feb. 26, Manafort and Yohai owe bank more than $700,000, the suit states.
Yohai was once married to Manafort’s daughter, Jessica. They divorced in 2017.
Representatives for Manafort and Yohai could not be immediately reached for comment on the suit, which alleges fraud, negligent misrepresentation and breach of loan document contracts.
Manafort and Yohai lied on their credit applications and gave the bank false personal financial statements, according to the complaint. The pair said they wanted to finance ventures in Los Angeles and told the bank they already owned property through a company dubbed Baylor Holding LLC that were free and clear of all liens, the suit states.
Additionally, Manafort told the bank he had a net income of $4 million, and both men promised the loan would be the start of a `highly profitable” relationship between them and the bank, the suit says.
Manafort was previously convicted of tax and bank fraud in Virginia. In a separate case, he also has pleaded guilty to conspiracy against the United States and conspiracy to obstruct justice, in a separate case. He forfeited more than $22 million in cash and property to the federal government and promised to cooperate with Special Counsel Robert Mueller.
But a federal judge found Manafort, 69, had violated the plea deal and a recent sentencing memo from Mueller described Manafort as a liar who “presents a grave risk of recidivism.”