In a September 2016 email chain, officials at Federal Savings Bank flagged "some of the issues that underwriting is having" with a loan being processed for Paul Manafort.
From: Thomas Horn
To: Javier Ubarri Jim Norini
Cc: Jim Brennan
Date: Tue, 13 Sep 2016 18:52:35 -0400
Attachments: Term sheet e?mail Credit committee.pdf (93.64 kB); Memo Manafort Yohai 9 13
2016.pdf (68.23 kB)
Attached are some of the issues that underwriting is having with this loan. Hopefully, we can discuss
tomorrow in Lake Forest. Please see attached as to the terms of the deal and what the minimum
value was to be and what the appraisal came in at within the last few days.
Tm: SAVIXUS BMK
AVP Commercial Loan Underwriter
The Federal Savin 5 Bank
iake Forest, .L 50045
U.S. V. MANAFORT, 1:18-cr-83 (T.S.E.)
lale Forest, IL. 60045
September 13, 2016
issues on Manafort/Yohai deal for the completion of Los
During the underwriting of this transaction, the following issues have arisen that
needs to be brought to the TFSB Credit Committee?s attention. While these
issues need to be addressed they haven?t stalled the funding process title
In the last two days, the TFSB Credit Department has begun to receive the
appraisals for the transaction. The loan was approved for $5 700 000 or 70% of
the "as complete? value of the property located at Los
Angeles, California. Due to the size of the transaction, two appraisals were
ordered. One appraisal gives a value of (87% LTC) and the second
appraisal has not yet been received. This falls short of the approved amount
which required a minimal ?as completed? value of
TFSB is also taking a 15? position on one of Mr. Manafort?s residences located in
Alexandria, Virginia. TFSB has received the appraisal for this property which
gives a value of
1) Mr. Manafort?s consulting business shows no income as of 7/31/2016, only
$638,048 in expenses. Mr. Manafort's accountant has indicated that there
are in fees earned (cash basis) but no back up information has
2) Mr. Manafort is 90 days past due of over on his AMEX card. Mr.
Manafort explanation was that he allowed his friend to pay season tickets
to the Yankees on his Amex card. Although, Mr. Manafort?s credit is for
the most part good, the large size of the delinquency is troubling. The
unpaid Amex has dropped Mr. Manafort?s credit scores from
in April 2016 to _as of 8/1/16.
3) As of the 7129/16, Paul Manafort only had $210,517 in availability on his
line with UBS. $3,000,000 of the remier credit line was secured by his
apartment at dNew York, New York. Since that time,
Mr. Manafort has funded the escrow accounts to fund the TFSB loan
accounts for $500,000 from his UBS account, however, Credit Officer
does not have clari?cation as to how those funds were obtained.
4) Mr. Manafort has two mortgage loans with Citizen?s One and Citizen?s
Bank for and Credit Of?cer still does not know which
properties these loans are associated.
5) Mr. Yohai has shown no experience in the construction of SFR's. Mr.
Yohai could not point to any completed construction projects.
6) All loans for projects in California have maturities dates within the next six
7) Mr. Yohai shows signi?cant NOL losses on his personal tax returns.
These losses are related to a movie production company that Mr. Yohai?s
wife is involved, Mirror Cube. LLC. Credit Of?cer has asked for the
?nancials but not received. Credit Of?cer has been told various items
about the company including, company is dissolved, company is still
active, and Mr. Yohai has started a lawsuit against the former partners.
8) Mr. Yohai disclosed that he also is in the luxury car leasing business but
no information has been provided other than listings of the cars that he
has leased and the associated debt.
9) The personal ?nancials for Mr. Yohai are over exaggerated. For exam le,
Mr. Yohai purchased a vacant lot in the same area as
LLC (subject property) in 2014 for $770,000. No construction has been
done to the property but Mr. Yohai lists the value now at $6,500,000.
10) Mr. Yohai shows $3,300,000 in payables but are not detailed in the
personal ?nancial statement.
11) $317,000 in liens from former contractor. Title policy will be 1.5X the lien
amount. New contractors who have yet to be approved by TFSB have
already resumed work on the property.
12) No information on how quickly the project can be completed.
13) Little information on the hard money lenders that are funding the various
California SFR projects. (loans cross collateralized, will they provide
extensions on the maturity dates, current on loans).