Trump’s private bankers left Deutsche Bank because of a real estate deal

Trump’s private bankers left Deutsche Bank because of a real estate deal

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Germany’s largest bank said in US regulatory documents that Rosemary Vrablic and Dominic Scalzi were “allowed to resign” as of December 31 after allegations that they were involved in “undisclosed activities” linked to a property investment that included the “purchase of a customer property. managed entity.”
Bankers were also involved in “forming an unapproved external entity to maintain the investment”, German bank (DB) said in filings for the Financial Industry Regulatory Authority (FINRA).

The allegations relate to the bankers’ purchase of an apartment in 2013 from Bergel 715 Associates, a company in which Kushner, a client of Deutsche Bank, was a minority investor, according to a person familiar with the matter. The purchase was not disclosed to the bank and violated its internal policies, the person said.

New York City property records show that Vrablic, Scalzi and an associate bought a condo on 715 Park Avenue de Bergel 715 for $ 1.5 million that year.

Deutsche Bank did not immediately respond to a request for comment on Thursday. Vrablic and Scalzi’s lawyers declined to comment. Regulatory disclosures were first reported by the New York Times.

Vrablic and Scalzi have worked together for years since joining Deutsche Bank. Vrablic was a trusted contact for the Trump Organization and Kushner, and she took charge of Deutsche Bank’s private bank relationship with Trump after its commercial division stopped doing business with him.

In a statement released in late December, Vrablic said, “I have decided to resign from my bank position as of December 31 and I am looking forward to my retirement.”

Deutsche Bank decided not to do business with Trump anymore, a source told CNN Business in January, a move that will deprive him of a major source of loans that previously helped finance his golf courses and hotels.

The Trump Organization owes Deutsche Bank approximately $ 340 million over the next few years, the source said.

Trump has several outstanding loans with Deutsche Bank, according to financial disclosure documents he was forced to file as president. Trump lent tens of millions of dollars to Trump National Doral, his golf resort in South Florida. Deutsche Bank also provided loans to the Trump International Hotel and Tower in Chicago and the Trump International Hotel in Washington, which opened in 2016. The loans are due in 2023 and 2024.

– Matt Egan contributed reporting.

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