Financial institution CEO charged in Manafort bribe scheme


The top of a Chicago-based financial institution has been charged with bribery and accused of approving $US16 million ($A23 million) in high-risk loans to US President Donald Trump’s former marketing campaign chairman Paul Manafort in a scheme to land a high Trump administration publish reminiscent of Military secretary.

Stephen Calk, ex-Chairman and CEO of Federal Financial savings Financial institution however now on a go away of absence, was charged by New York federal prosecutors with monetary establishment bribery, carrying a most jail time period of 30 years.


The 54-year-old Calk pleaded not responsible throughout a quick look in Manhattan federal court docket on Thursday after surrendering to authorities.

His title repeatedly got here up throughout Manafort’s 2018 monetary fraud trial in Virginia, with prosecutors saying Calk accredited the loans for Manafort in trade for assist securing a senior publish below Trump.

Calk was named to a Trump marketing campaign financial advisory committee and interviewed for the job of Military undersecretary however didn’t land the job.

US Justice of the Peace Decide Debra Freeman ordered Calk be launched on bail and required him to give up his passport.

Federal Financial savings Financial institution stated in a press release it’s a sufferer of financial institution fraud perpetrated by Manafort, and Calk “has been on a whole go away of absence and has no management over or involvement with the financial institution.”

Calk’s brother, John Calk, is presently serving because the financial institution’s CEO.

The indictment didn’t point out Manafort by title, however made clear he was the one who schemed with Calk.

Calk allegedly offered Manafort with a ranked want listing of presidency jobs, and Manafort advisable to Trump’s post-election transition workforce that Calk be appointed as Military secretary, the service’s high civilian publish.

Manafort used his affect with Trump’s transition workforce to land Calk a proper interview for the place of Military undersecretary in January 2017, in line with the indictment. Calk’s want listing additionally included treasury secretary or deputy secretary, defence secretary, commerce secretary and 19 ambassador posts in international locations together with Britain, France, Germany and Italy.

Manafort was one of many first folks in Trump’s inside circle charged by Particular Counsel Robert Mueller as a part of his now-completed investigation into Russian interference within the 2016 US election and Trump marketing campaign.

Manafort, who was convicted of financial institution and tax fraud in Virginia and pleaded responsible to different prices in Washington, is serving a seven-and-a-half yr sentence in a federal jail in Pennsylvania.

The indictment in opposition to Calk stated he knew of “vital pink flags” about Manafort’s skill to repay the loans.

Initially printed as Financial institution CEO charged in Manafort bribe scheme

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