Calk, the president of the Federal Savings Bank, approved millions in "high-risk loans in an effort to secure a personal benefit" prosecutors said.
ADVERTISEMENTBank CEO Stephen Calk tried to exchange $16 million in loans to Paul Manafort for a top position within the Trump administration, according to an indictment against the banking executive unsealed Thursday.
Calk, the president of the Federal Savings Bank, approved millions in "high-risk loans in an effort to secure a personal benefit, namely to an appointment as Secretary of the Army, or another similar high-level position in the incoming presidential administration," said Deputy U.S. attorney Audrey Strauss of the Southern District of New York.
Federal investigators were probing last year whether Manafort, the former Trump campaign chair, promised Calk a job in the White House in return for $16 million in home loans, NBC News first reported in February 2018.
Calk, who surrendered to the FBI Thursday morning, allegedly approved multiple high-risk loans for Manafort, who urgently needed them to avoid foreclosure. While the loans were pending approval, Calk allegedly provided Manafort with a ranked list of positions he desired. At its head were the two top positions at the U.S. Treasury, followed by Secretary of Commerce and Secretary of Defense. The list also included 19 high-level ambassadorships, among them ambassador to the United Kingdom, France, Germany and Italy.
Manafort received three separate loans in December 2016 and January 2017 from Federal Savings Bank for homes in New York City, Virginia and the Hamptons. The three loans were questioned by other officials at the bank, two sources with direct knowledge of the matter told NBC News last February.
The loans raised red flags at the bank in part because of Manafort's history of defaulting on prior loans and that the size made Manafort's debt the single largest lending relationship at the bank, according to prosecutors. Calk was required to authorize an unusual lending scheme to avoid passing the lending cap to a single borrower.
In exchange, Manafort provided Calk with personal benefits, prosecutors said. The bank CEO was appointed to Trump's Council of Economic Advisers in August 2016, just days after the bank approved a proposed $9.5 million loan to Manafort.
According to the indictment, Manafort and his son-in-law, Jeffrey Yohai, approached the bank in an effort to refinance loans tied to a construction project in Los Angeles.
During a meeting held on July 27, 2016 — while Manafort was Trump campaign chairman — Calk allegedly broached the idea of him joint the Trump campaign. By the next day, the first loan of $5.7 million was approved. Less than a week later, Manafort offered Calk a position on the economic advisory committee for Donald Trump, according to the indictment.
Calk issued another loan for over $9 million later in the fall of 2016. Then, Calk reached out to Manafort asking him if he was involved in the Trump presidential transition following the election, according to the indictment.
Manafort allegedly responded, "total background but involved directly."
Shortly after the election, in November or December 2016, Manafort recommended Calk for an administrative position, leading to a formal interview of Calk for Under Secretary of the Army at the transition team headquarters in Trump Tower in 2017. When Manafort made the recommendation, he had more than $6 million in loans pending approval at Calk's bank.
Calk ultimately was not hired for the position.
Months later, the loans to Manafort were downgraded by the banks regulator, the Office of the Comptroller of the Currency. Calk allegedly lied to regulators, telling them he never desired a position in the presidential administration.
A November 14, 2016 email Calk sent to Manafort that included his resume and list of desired positions in ranked order was as exhibit in the Manafort trial.