PSPC withdrawn, bail hearing in UAE case changed

A bail hearing for Thomas Barrack, the private equity investor criminally accused of illegally lobbying his close friend former President Donald Trump on behalf of the United Arab Emirates, has been postponed to Friday in federal court in Los Angeles.

Also on Friday, Falcon Acquisition, a so-called special-purpose acquisition company backed by Barrack, told the Securities and Exchange Commission in a letter that it was withdrawing its SEC registration statement “because the company has chosen to abandon “the planned transactions.

These transactions included an initial public offering of 25 million shares to raise $ 250 million for Falcon Acquisition, which was formed by the family office of Barrack, Falcon Peak, and TI Capital.

Falcon Acquisition, which had planned to list its shares on the New York Stock Exchange, had said it was targeting tech-focused companies as mergers.

A Falcon Peak attorney did not immediately respond to a request for comment.

Barrack, 74, has been jailed since his arrest Tuesday in Los Angeles. He was originally scheduled to have his bail hearing next Monday, along with Thomas Grimes, a 27-year-old Barrack’s associate, who is indicted in the same case.

But the U.S. Attorney’s Office in Brooklyn, New York, which is prosecuting Barrack and Grimes, said Friday morning that the two men’s bail hearing would now be held at 1 p.m. EDT in California.

Prosecutors had requested Tuesday at Barrack’s first Los Angeles appearance that he be detained until at least he appears in Brooklyn court for another hearing over the risk that he may flee to avoid to face the charges. Barrack has Lebanese nationality and owns a private jet.

A spokesperson for Barrack declined CNBC’s request to comment on the change in bail hearing.

Barrack, who was chairman of Trump’s inaugural fund in 2017, is accused along with Grimes and UAE national Rashid Sultan Rashid Al Malik Alshahhi of secretly defending UAE interests under the leadership of senior UAE officials . Prosecutors said the trio influenced Trump’s campaign foreign policy positions in 2016 and continued that effort during Trump’s presidency until April 2018.

Barrack is also charged with obstructing justice and making multiple false statements during a June 2019 interview with federal law enforcement officials.

The indictment said Barrack was at the same time informally advising US officials on Middle East policy and also seeking appointment to a senior position in the US government, including as a special envoy. in the Middle-East.

Alshahhi, 43, is still at large in the case.

Last year, Barrack resigned as CEO of Colony Capital, a private equity firm he had founded. He resigned his position as executive chairman of the company in April.

– Additional reports by CNBC Kevin breuninger