The White House is investigating whether more than $ 500 million in loans to Jared Kushner's family business violated ethics or criminal laws, the Wall Street Journal reports.
White House lawyers are currently examining a $ 184 million loan from Apollo Global Management LLC's real estate division and a $ 325 million loan from Citigroup Inc. may violate federal rules and regulations according to a letter from a federal ethics authority to a democratic legislator.
The two loans were granted to Kushner Cos., A real estate company founded and managed by the Kushner family. Kushner, the son-in-law of President Donald Trump and a White House senior advisor, reportedly met with senior executives of the two companies before providing any loans.
"I have discussed this matter with the White House Legal Department to ensure that they have begun to identify the facts necessary to determine whether a law or ordinance has been violated," wrote David Apol, who acting director of the Office of Government Ethics, in the letter published on Monday. "During this discussion, the White House informed me that they had already started this process."
The letter was addressed to MP Raja Krishnamoorthi, an Illinois Democrat and a member of the House Oversight Committee. Legislators earlier this month asked the Office of Government Ethics to comment on possible ethical issues surrounding Kushner's executive meeting while handing over loans to his family business, the Journal reported.
The loans "raise serious ethical issues that need to be investigated," Krishnamoorthi wrote in a letter to the Ethics Agency. "Are the abovementioned actions of Mr. Kushner a violation of his ethical obligations to the American people?" He asked.
"Are the abovementioned actions of Mr. Kushner a violation of his ethical obligations to the American people?"
Citigroup said last week that the loan was "fully adequate" and that the transaction is in preparation in 2016 before Kushner will meet Citigroup CEO Michael Corbat in 2017 ,  "Nothing related to the [Brooklyn] loan or any other personal business with Mr. Kushner or the Kushner Companies was discussed at this meeting," Citigroup said. "The Kushner family has been a Citi customer for decades," she added.
A lawyer from Apollo also denied it, assuming the loan after his executive Kushner had met, according to a letter that was sent to Congressional members this month.
"Josh Harris and Jared Kushner have never discussed any loans regarding Kushner Companies," the letter said. The loan "was negotiated on behalf of ARI by an Apollo investment professional who had a business relationship with Kushner Companies prior to his tenure at Apollo."
Kushner led the family business before the 2016 election, but after Trump took office, he sold most of his assets to others. He still holds shares in some corporate real estate, including those who have received the loans that are the subject of an investigation.