Felix Sater, born in Moscow, is a controversial figure in the real estate world. He was once a close associate of former President Donald Trump and even had offices in Trump Tower. Sater was involved in various real estate deals and was known for his ambitious projects, including a failed attempt to build a skyscraper in Moscow for Trump. His past includes serving time in prison for violent crime and later working as an informant for U.S. prosecutors to avoid further imprisonment.
Felix Sater Lawsuit and Court Verdict
Recently, Sater faced a civil trial in Manhattan. He was accused of helping Ilyas Khrapunov, a wealthy Kazakh man, launder millions of dollars through U.S. real estate, including condos at the Trump SoHo tower. The city of Almaty, Kazakhstan, and BTA Bank, one of the country’s largest lenders, brought the lawsuit. They claimed that Sater assisted in laundering a portion of approximately $6 billion that Khrapunov’s father-in-law, Mukhtar Ablyazov, allegedly looted from the bank before the financial crisis.
A federal jury in Manhattan ruled in favor of the plaintiffs, awarding them over $32 million in damages. This amount includes interest, according to Matthew L. Schwartz, the plaintiffs’ lawyer from Boies Schiller Flexner LLP. Despite the verdict, Sater expressed his intention to appeal the decision, stating he rejects the verdict.
Details of the Case and Its Implications
The case shed light on a global effort by BTA Bank to recover stolen funds, which were allegedly siphoned through shell companies and fake loans. Almaty also claimed that some laundered money was stolen from the city by Khrapunov’s father, who was the mayor, through corrupt land sales.
Felix Sater denied the allegations but admitted in court that he lied to help Khrapunov conceal his involvement in lucrative deals. He testified that it wasn’t his responsibility to disclose the origins of the money, stating, “They had a due diligence department. If they found it, they found it. If they didn’t find it, they didn’t find it.”
The investments in question included several units at Trump SoHo, an Ohio mall, and private equity deals. While Trump was not a defendant in this case, the trial brought renewed attention to his business dealings and connections with Russia, especially as he campaigns to return to the White House.
Felix Sater had previously arranged meetings between Khrapunov and Trump at Trump Tower to discuss possible investments. However, the lawsuit clarified that there was no suggestion that Trump knew about the illicit origin of the funds or engaged in any wrongdoing.
In addition to his real estate ventures, Sater’s criminal past and cooperation with law enforcement added another layer of complexity to his character. In the 1980s, he worked on Wall Street but was banned from selling securities after pleading guilty to racketeering. To avoid further prison time, Sater became an informant, assisting U.S. prosecutors in investigating organized crime on Wall Street.
Both Khrapunov and Ablyazov have denied any wrongdoing. Khrapunov claimed that he managed his family’s investments legally and that his Swiss company was not a front for his father-in-law. Ablyazov, who allegedly looted billions from BTA Bank, has consistently denied the allegations against him.
The jury’s verdict against Felix Sater is a significant development in the ongoing efforts by Kazakhstan to recover stolen funds. It highlights the intricate web of international money laundering and the challenges in holding individuals accountable. As Felix Sater prepares to appeal the decision, the case continues to draw attention to the complex intersections of finance, real estate, and international crime.
Trump’s Role
Trump, 78, isn’t a defendant and isn’t accused of wrongdoing in the case, but the trial put fresh attention on Trump’s dealings as he campaigns to return to the White House, including his ties with Russia before the 2016 election. Sater, who advised Trump on real estate investments and at one point led his failed effort to build a Moscow skyscraper, was one of many witnesses interviewed in Special Counsel Robert Mueller’s probe into Trump’s 2016 campaign.
Sater met Khrapunov in Trump Tower to discuss laundering the allegedly stolen money and personally arranged meetings between the wealthy Kazakh and Trump to discuss possible investments, BTA and Almaty said in the complaint. But the bank and the city went to great lengths in court documents to distance Trump from the allegations.
