New Jersey-based real estate tycoon Charles Kushner, who heads a US consortium formed to bid for the acquisition of Israel Discount Bank (TASE: DSCT), was arrested on Tuesday in Newark. Kushner is suspected of hiring prostitutes in an effort to suborn potential witnesses in an investigation into suspicions that he made illegal contributions to political candidates.
Kushner, 50, a confidant of New Jersey Governor James McGreevey, is considered politically powerful in New Jersey. He is known for his philanthropy to Jewish causes, particularly educational institutions, including Yeshiva University, but mainly for his political contributions, beneficiaries of which include Senator Hilary Clinton, former Democratic presidential candidate Al Gore, former New York Mayor Rudolph Giuliani, and especially McGreevey.
Kushner, whose wealth is estimated at $1 billion, was freed on $5 million bail.
It is not clear how Kushner’s arrest will affect the efforts of his group to acquire the controlling interest in Discount Bank, which the Israeli government is privatizing. The deadline for applications is next Tuesday. The bidders will then be examined, and consortia found suitable will join the second round of the tender.
Some sources predict that the consortium headed by Charles Kushner may now be disqualified, unless it separates from him, and reorganizes, but assessments are that the time available for this is insufficient.
Published by Globes [online] - www.globes.co.il - on July 15, 2004