Bank CEO charged with trying to trade loans for Trump post

FILE - In this May 23, 2018, file photo, Paul Manafort, President Donald Trump's former campaign chairman, leaves the Federal District Court after a hearing in Washington. Federal prosecutors have charged banker Stephen M. Calk, with trying to buy himself a role in President Donald Trump's administration by making risky loans Manafort. Calk was arrested Thursday, May 23, 2019, in New York City on a financial institution bribery charge. (AP Photo/Jose Luis Magana, File)

A banker who prosecutors say tried to trade loans to former Trump campaign chairman Paul Manafort to get a post in the president's administration has been arrested on a financial institution bribery charge

NEW YORK — A banker who prosecutors say tried to buy himself a senior post in President Donald Trump's administration by making risky loans to former Trump campaign chairman Paul Manafort was arrested Thursday on a financial institution bribery charge.

Stephen M. Calk, 54, was scheduled to appear in Manhattan federal court in the afternoon. A message was left with his attorney for comment.

Authorities said Calk committed the crime while serving as CEO of The Federal Savings Bank based in Chicago.

Federal prosecutors described the charge in a release, saying Calk abused his bank position by approving $16 million in high risk loans that were ultimately downgraded.

William F. Sweeney Jr., head of New York's FBI office, said Calk "went to great lengths to avoid banking violations in an attempt to secure a senior position in a presidential administration."

"His attempt at petitioning for political favors was unsuccessful in more ways than one — he didn't get the job he wanted, and he compromised the one he had," Sweeney Jr. added.

Manafort lobbied Trump's son-in-law, Jared Kushner, to consider Calk for Secretary of the Army, according to emails from the weeks leading up to the 2016 election shown to jurors at Manafort's tax evasion and bank fraud trial last year.

Prosecutors said that while Manafort's loans were pending approval, Calk gave Manafort a ranked list of government positions he wanted, starting with Secretary of the Treasury, followed by Deputy Secretary of the Treasury, Secretary of Commerce and Secretary of Defense, as well as 19 ambassadorships similarly ranked and starting with the United Kingdom, France, Germany and Italy.

According to trial evidence, Manafort passed along Calk's resume to Kushner in a Nov. 30, 2016, email, along with two other names of people he said "should be a part of the Trump administration."

Manafort wrote that the individuals would be "totally reliable and responsive to the Trump White House.

He also said Calk was "strong in defense issues, management and finance."

Kushner responded, "On it!"

Calk was formally interviewed for the position of under secretary of the Army in early January 2017 at the Presidential Transition Team's Manhattan offices, prosecutors noted.

But Calk never got an administration post, though he did approve Manafort's loans.

Manafort is serving a 7½ year sentence on charges he misled the government over his foreign lobbying work and encouraged witnesses to lie on his behalf. He also faces an indictment in New York charging him with state crimes , including a residential mortgage fraud scheme.

Related News

UN reports rise in Afghan war deaths, blames...

Jul 17, 2017

A U.N. report says Afghanistan's protracted war killed a record number of civilians during the...

Taliban suicide car bombing in Kabul kills 24...

Jul 24, 2017

Taliban suicide car bombing targets minibus with Afghan government employees, killing 24

Officials: Afghan children smuggled to Pakistan...

Jul 31, 2017

Afghan officials: Children illegally being taken to religious seminaries in Pakistan to be taught...

IS targets Iraq Embassy in Kabul; all 4 attackers...

Jul 31, 2017

IS suicide bombing targets Iraq Embassy in Kabul; hours-long gunbattle ends hours later with all 4...

The Latest: Afghanistan says 2 Iraq embassy staff...

Jul 31, 2017

Afghanistan's Interior Ministry spokesman Najib Danish has said that two Afghan employees died in...

Watchdog: Tight security hinders oversight of US...

Aug 1, 2017

The U.S. watchdog tasked with overseeing the spending of U.S. aid to Afghanistan said unprecedented...

About Us

Buzzing Globe explores the numerous events which causes a “buzz” to the everyday individual and to shed light onto these events.

Contact us: sales[at]buzzingglobe.com

Subscribe Now!