United States Attorney’s Office - District of New Jersey - 2004

False Statements to FEC Companies investigation, so Kushner
concocted the retaliation plan with the
This was an exceedingly complex, scheme to co-opt his brother-in-law.
multi-defendant tax and accounting fraud case Quickly, the FBI was able to trace the
involving false partnership tax returns for the anonymously mailed videotape to private
real estate properties controlled by the Kushner detectives Kushner had paid and used in his
Companies of Florham Park, in which more scheme to hire a prostitute, lure Kushner’s
than $6 million in charitable and political brother-in-law and tape him in the act.
contributions, capital expenditures and Kushner tried to ensnare another employee
gift-and-entertainment charges were in the same way, but that person did not
mischaracterized in tax returns as business respond to the call girl’s advances. We
expense deductions. It also became a case with charged Kushner via complaint in mid-July
a shocking turn of events. The case in chief 2004 with obstruction and interstate
involved a dissection of the immense paper promotion of prostitution. Merely one
trail of a billion-dollar business empire and month later, Kushner pleaded guilty to
focused on Kushner and a then-cohesive group witness retaliation and to assisting in the
of four co-conspirators, including former CFOs filing of false income tax returns and
and outside accountants. Kushner was a very making false statements to the Federal
influential political and business figure in New Election Commission. Judge Linares
Jersey. He ran a company that built and/or sentenced Kushner in March 2005 to 24
managed thousands of condominiums and months in prison. Three years later, all the
apartments plus office buildings in New Jersey subjects in the Kushner Companies
and other states. He was a major fundraiser investigation were brought to justice, three
who had donated millions to state and national of them in successive pleas to significant
politicians, including then-Gov. James criminal tax violations, as their scheduled
McGreevey. Kushner also was a prominent trial was about to start, and finally
benefactor in the Jewish community, building Kushner’s second in command, his brother-
schools, helping synagogues, and contributing in-law Richard Stadtmauer, following a trial
to a broad variety of causes here and in Israel. in the spring of 2008. On many levels, this
Amid an already 16-month investigation of was a remarkable investigation and
Kushner and his co-conspirators came a jaw- prosecution, and it was successful due to the
dropping allegation: Kushner had ordered the perseverance of AUSAs in the Special
videotaping of his sister’s husband engaging in Prosecutions Division, and agents with the
sex in a motel with a prostitute hired by FBI and IRS. The case was initially in the
Kushner. A divide in the Kushner family had hands of AUSAs Thomas Eicher and Scott
erupted into accusations and a lawsuit from his Resnik (the latter has since moved on to
brother/partner that Kushner was stealing private practice), and First Assistant Ralph
through the company partnerships and owed Marra, and later by AUSAs Rachael Honig
him money. As eventually became known and Hallie Mitchell.
publicly, certain members of the Kushner The Curry Organization –
family were cooperating in the Kushner Newark Drug Traffickers