Chicago Bank President Stephen Calk accused of bribing Manafort for a position of administration

Stephen Calk, former economic adviser to President Trump's 2016 presidential campaign, was indicted Thursday for approving $ 16 million in loans to former Trump campaign president Paul Manafort. in exchange for his help looking for a management position.

Calk, the founder of Federal Insurance Bank of Chicago's Federal Savings Bank, illegally used the bank's resources to gain favor with Manafort, ignoring internal standards and lying to regulators, according to the unsealed indictment in the southern district of New York.

While the bank was rushing to get its loans, Calk handed Manafort a list ranking high-level administrative jobs that he wanted, starting with the secretary of the treasury, according to the deed. charge. The list also included 19 ambassadors, including in the UK, according to the indictment.

Calk was eventually interviewed as a candidate for the position of Under-Secretary of the Army, but did not get the job, prosecutors said.

"Stephen M. Calk abused the power he had been given as a senior bank official in federal insurance by approving millions of dollars in high-risk loans in order to obtain a personal benefit," he said. in a statement the US Attorney of Manhattan, Audrey Strauss..

[Paul Manafort sentenced to a total of 7.5 years in prison for conspiracy and fraud, and charged with mortgage fraud in N.Y.]

His lawyer, Jeremy Margolis, called the charges "parody".

"Mr. Calk has done nothing wrong and will be exonerated in the isolated and unfounded prosecution case against him," said Margolis of Loeb & Loeb in a statement. his bank were "victims" of Manafort frauds, he said.

"Mr Manafort – who had then ended the Trump campaign – had nothing to do with Mr Calk's desire to serve 'in the administration', said Margolis.

Manafort has not been named in the indictment, but the borrower 's description in the court record matches that of the former chairman of the Trump campaign.

The indictment recalls the financial crisis Manafort had faced in the same months as Trump's campaign chairman, a job he won partly by claiming he was rich and that he could therefore work for free.

At the Manafort trial last year, prosecutors presented evidence that he was in debt while working for the campaign and was trying to juggle mortgages on a number of expensive properties.

According to Calk's indictment, Manafort took a break from his duties in the Trump campaign on July 27, 2016 to travel to an initial meeting in New York with a loan officer to discuss money laundering. A multi-million dollar loan. Calk is joined to us by video and, according to prosecutors, told Manafort that he would be interested in working on the Trump campaign.

The following day, the Federal Savings Bank conditionally approved an initial loan of $ 5.7 million. Less than a week later, Manafort told Calk that he wanted to add the banker to Trump's national advisory committee on the economy, made up of 14 members, according to the act of 39; accusation.

"Is this something you would be able to do?" Said Manafort in an email, according to the indictment. "I'm happy and eager to serve," said Calk. Steven Mnuchin, Treasury, and Secretary of Commerce, Wilbur Ross, are also members of the committee.

Bank employees expressed concerns about the loan, including the fact that they could not verify Manafort's income and that he was late on a $ 300,000 bill on a credit card, according to the report. 'indictment. But Calk reportedly continued to support the loan, the amount of which nearly doubled, says the indictment.

"I would also like to thank you again for fixing my problem. It matters a lot to me, "said Manafort in an email to Calk.

After Trump's election, relations between Calk and Manafort deepened, according to the indictment. Manafort's $ 9.5 million loan was approved a few days after the elections and Calk apparently began asking questions about positions in the administration. On November 14, Calk sent Manafort his biography and a list of executive positions he wanted, including those of secretary of cabinet and under secretary, according to the indictment.

According to the indictment, Calk would have begun to apply for another loan of $ 6.5 million as Manafort's financial pressure increased, particularly with regard to the foreclosure of several properties. At about the same time, he was questioned for the under-secretary of the army. A few weeks later, the second loan was approved, according to the indictment.

Calk did not testify at Manafort's 2018 trial for bank and tax fraud, but other agents at his bank took the floor to describe the unusual process by which the bank approved a loan for Manafort. The bank eventually lost more than $ 12 million on its loans, according to the indictment.

[Judge rejects Trump’s request to halt congressional subpoenas for his banking records]

Manafort was convicted at trial and later pleaded guilty to other charges, including as an unregistered foreign agent while working for a Ukrainian politician before joining Trump's campaign.

Manafort is currently serving a sentence of 7 ½ years imprisonment. He began cooperating with the authorities after his plea of ​​guilty. Prosecutors told a judge that he had provided evidence both to the special council's investigation and to the cases handled by other prosecutors. References to these other investigations have been removed from the material filed so far in Manafort, but it is likely that Manafort provided evidence in the Calk case.

The transcripts show that at a press conference at the Manafort trial last year, prosecutor Greg Andres described Calk as a "conspiracy" that was likely to be "punishable".

Calk risks up to 30 years in prison if he is found guilty of bribery in a financial institution. He is on leave from the Federal Savings Bank of Chicago.

Editor-in-Chief Rachel Weiner contributed to this report.