UBS has filed a document with the District Court of D.C. to block the Department of Justice’s forfeiture of Paul Manafort’s $3 million apartment at Trump Tower – arguing that the 1,500 square-foot, 43rd floor unit isn’t his to relinquish per a September agreement with federal prosecutors.
Bloomberg reports that the former Trump campaign chairman gave up the condo as part of a plea arrangement regarding crimes he committed as a consultant for Ukraine’s then-ruling government party.
Manafort purchased the apartment in 2006 with cash through a shell company, John Hannah LLC, for about $3.7 million, according to property records. In early 2015, he transferred the property from the shell company to himself. He then pledged the home as collateral on a $3 million loan from UBS Bank USA. The variable-rate mortgage required interest-only payments for the first 10 years, before coming due in May 2040. –Bloomberg
In their Nov. 2 court filing, UBS says that Manafort has defaulted on the $3 million mortgage, while Zillow lists the apartment with an estimated value of $2.9 million. Manafort owed nearly $110,000 in interest in fees as of Nov 1, while his interest rate this month was 4.125%.
UBS claims it didn’t know that the property would be subject to forfeiture when the loan was made, and that their interest in the property is superior to Manafort’s. The bank has asked a D.C. judge to block the transfer of the apartment to the government – one of several properties Manafort agreed to give up as part of his deal.