The invaluable Alex MacGillis at ProPublica has an in-depth story about one of the ways in which Jared Kushner, he who will solve the Middle East, takes advantage of other people to whom the world has been less than kind. It’ll take some block-quoting.
But amid the high-profile Manhattan and Brooklyn purchases, in 2011, Kushner Companies, with Jared now more firmly in command, pulled together a deal that looked much more like something from the firm’s humble past than from its high-rolling present. That June, the company and its equity partners bought 4,681 units of what are known in real-estate jargon as “distress-ridden, Class B” apartment complexes: units whose prices fell somewhere in the middle of the market, typically of a certain age and wear, whose owners were in financial difficulty. The properties were spread across 12 sites in Toledo, Ohio; Pittsburgh; and other Rust Belt cities still reeling from the Great Recession. Kushner had to settle more than 200 debts held against the complexes before the deal could go through; at one complex, in Pittsburgh, circumstances had become so dire that some residents had been left without heat and power because the previous owner couldn’t pay the bills. Prudential, which was foreclosing on the portfolio, sold it for only $72 million — half the value of the mortgages on the properties.
In the following months, Kushner Companies bought another 1,700 multifamily units in similar markets, according to the trade publication Multifamily Executive. Unlike the company’s big New York investments, the complexes were not acquired with an eye toward appreciation — these were not growing markets, after all — but toward producing a steady cash flow. “Our goal is to keep buying and incrementally growing — they’re good markets where you can get yield,” Jared Kushner told Multifamily Executive in October 2011, predicting that the net income for the year’s purchases would be $14 million within a year. The complexes buttressed the Kushner portfolio in another way, he said: They would serve as a hedge against an upswing in inflation he believed was looming on the horizon.
So how does this make him money? Lawsuits. He apparently has a team of turkey vultures swooping in for any little mistake on the lease, any minor violation, and any discrepancy they could find in order to sue. A woman who broke a lease early to tend to her dying mother lost thousands of dollars. A woman who didn’t replace her carpet after the sink backed up was sued for $600.
But you don’t even have to be in the wrong to get screwed by Kushner. You just have to be less wealthy than he is, and not able to stand up to him in court.
(Kamiia) Warren sent a letter reporting the problem to the complex’s property manager, a company called Sawyer Realty Holdings. When there was no response, she decided to move out. In January 2010, she submitted the requisite form giving two months’ notice that she was transferring her Section 8 voucher — the federal low-income subsidy that helped her pay the rent — elsewhere. The complex’s on-site manager signed the form a week later, checking the line that read “The tenant gave notice in accordance with the lease.”
So Warren was startled in January 2013, three years later, when she received a summons from a private process server informing her that she was being sued for $3,014.08 by the owner of Cove Village. The lawsuit, filed in Maryland District Court, was doubly bewildering. It claimed she owed the money for having left in advance of her lease’s expiration, though she had received written permission to leave. And the company suing her was not Sawyer, but one whose name she didn’t recognize: JK2 Westminster LLC.
Warren was raising three children alone while taking classes for a bachelor’s degree in health care administration, and she disregarded the summons at first. But JK2 Westminster’s lawyers persisted; two more summonses followed. In April 2014, she appeared without a lawyer at a district court hearing. She told the judge about the approval for her move, but she did not have a copy of the form the manager had signed. The judge ruled against Warren, awarding JK2 Westminster the full sum it was seeking, plus court costs, attorney’s fees and interest that brought the judgment to nearly $5,000. There was no way Warren, who was working as a home health aide, was going to be able to pay such a sum. “I was so desperate,” she said.
JK2, is, of course, Jared Kushner, the most absurd man in an absurd administration. There is something particularly venal about him, a rich New York socialite who yokes himself to evil incompetence for more power, who is using his status to further enrich his family, and who encourages obstruction of justice while doing nothing to rein in the racist cruelty of his father-in-law’s ghoulish entourage.
But that’s probably because he doesn’t want to. This is a mean shark, a rich bully who thinks he’s the underdog. He’s a scion who can drop hundreds of millions on a deal and pretend he’s earned the chip on his shoulder.
Early in the Adminstration, there were stories about how Kushner had become close with the horrible xenophobic racist Jeff Sessions. “Then there is Jared Kushner, the president’s son-in-law and senior adviser, who considers Sessions a savant and forged a bond with the senator while orchestrating Trump’s trip last summer to Mexico City and during the darkest days of the campaign.”
Jeff Sessions has spent a whole career in pursuit of one thing, and one thing only: white power. Whether that came from jailing black longer and in crueler conditions, protecting police from charges of racial brutality, closing off the border, or cutting welfare from strapping young bucks, his project has been the same. He didn’t wow Jared with his ability to talk the deficit. So what did Kushner consider him to be savant-like about?
This seemed incongruous. But it clearly isn’t. Kushner is a deeply cruel and shallow sociopath. He clearly feels that wealth is for the wealthy and privilege, including racial privilege, is for the privileged.
Look at this nightmare.
Kamiia Warren still had not paid the $4,984.37 judgment against her by late 2014. Three days before Christmas that year, JK2 Westminster filed a request to garnish her wages from her in-home elder care job. Five days earlier, Warren had gone to court to fill out a handwritten motion saying she had proof that she was given permission to leave Cove Village in 2010 — she had finally managed to get a copy from the housing department. “Please give me the opportunity to plead my case,” she wrote. But she did not attach a copy of the form to her motion, not realizing it was necessary, so a judge denied it on Jan. 9, on the grounds that there was “no evidence submitted.”
The garnishing started that month. Warren was in the midst of leaving her job, but JK2 Westminster garnished her bank account too. After her account was zeroed out, a loss of about $900, she borrowed money from her mother to buy food for her children and pay her bills. That February — five years after she left Cove Village — Warren returned to court, this time with the housing form in hand, asking the judge to halt garnishment. “I am a single mom of three and my bank account was wiped clean by the plaintiff,” she pleaded in another handwritten request. “I cannot take care of my kids when they snatch all of my money out of my account. I do not feel I owe this money. Please have mercy on my family and I.” She told me that when she called the law office representing JK2 Westminster that same day from the courthouse to discuss the case, one of the lawyers told her: “This is not going to go away. You will pay us.”
The judge denied Warren’s request without explanation. And JK2 Westminster kept pressing for the rest of the money, sending out one process server after another to present Warren with legal papers. Finally, in January 2016, the court sent notice of a $4,615 lien against Warren — a legal claim against her for the remaining judgment. Warren began to cry as she recounted the episode to me. She said the lien has greatly complicated her hopes of taking out a loan to start her own small assisted living center. She had gone a couple of years without a bank account, for fear of further garnishing. “It was just pure greed,” she said. “It was unnecessary.” I asked why she hadn’t pushed harder against the judgment once she had the necessary evidence in hand. “They know how to work this stuff,” she replied. “They know what to do, and here I am, I don’t know anything about the law. I would have to hire a lawyer or something, and I really can’t afford that. I really don’t know my rights. I don’t know all the court lingo. I knew that up against them I would lose.”
That’s right. That’s the way of America’s worst family. Take on those who can’t stand up for themselves, who can’t afford your lawyers. That’s “toughness” to them. They attack the weak. They prey on economic insecurity and exploit it for power. They dig at the margins of society.
America is a terrifying place. The line between getting along and tumbling into unrecoverable poverty is a thin one. There is no way that Jared Kushner will ever notice that $5000, minus lawyer fees. He’ll get, what, a grand maybe? Two? He would scoff at that if he found it in his glove box.
But that’s money that can ruin a life. It can push some down into the cracks, and foreclose on their dreams. It can spiral them into an unstoppable cycle of poverty and despair. It can stop them from finishing school, from opening a business, from providing even the most meager future for their kids. It can take away the roof over their head.
That’s Kushner. That’s the cruel and petty man behind the cruel and petty man-child. If he goes to prison for obsturctuion of justice it will be a perversion of the system. It’s the least of his crimes. This story proves that he represents the worst of the vampire rich, the heartless techno/plutocrats, with his vapid wife and snarling lawyers.
We had the American Psycho wrong with Don Jr. and Eric. It was Jared all along. There’s a reason why he’s the closest to Trump. They’re the same terrible person.
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