Felix Sater, a former associate of Donald Trump, has been found liable by a federal jury in Manhattan for aiding in the laundering of millions of dollars through U.S. real estate investments, including units at Trump SoHo.
According to Bloomberg, the jury awarded over $32 million in damages to the city of Almaty, Kazakhstan, and BTA Bank.
Sater, who once had close ties with Trump, was accused of assisting in laundering funds for a wealthy Kazakh individual. The civil trial in Manhattan’s federal court concluded with the jury finding Sater liable for his actions. The plaintiffs in the case were the city of Almaty and BTA Bank.
The jury’s decision included more than $32 million in damages, with interest, against Sater. Despite the verdict, Sater has denied the allegations but admitted to lying to help conceal roles in lucrative deals. The laundered money was reportedly part of the $6 billion looted from BTA Bank by Mukhtar Ablyazov, father-in-law of Ilyas Khrapunov.
Sater’s involvement included investments in properties such as Trump SoHo, an Ohio mall, and various private equity deals. During the trial, evidence showed that Sater had offices in Trump Tower and had presented himself as a senior advisor to Trump as recently as 2011.
Sater has a controversial history, including a prison term for a violent altercation and a guilty plea for racketeering related to stock swindles. He was also a witness in Special Counsel Robert Mueller’s investigation into Trump’s 2016 campaign. Despite these issues, Trump has not been implicated in this case.
Sater met Khrapunov at Trump Tower to discuss laundering the allegedly stolen money. Khrapunov and Ablyazov have both denied any wrongdoing, and Sater maintains that he was not legally obliged to disclose the nature of the funds involved in the deals. "I reject the verdict and will be appealing," Sater said in a telephone interview.
Matthew L. Schwartz, Boies Schiller’s chairman-elect and managing partner, expressed satisfaction with the jury’s decision, emphasizing Sater's deliberate and morally culpable conduct. The case forms part of a larger global initiative by BTA Bank to recover funds looted during Ablyazov’s tenure.
Sater’s defense argued that there was no suggestion that either Khrapunov or Sater disclosed the illicit origin of the stolen funds to Trump or that Trump engaged in any impropriety in connection with Khrapunov. This point was underscored during the proceedings to distance Trump from the allegations against Sater.
The verdict against Sater is seen as a significant victory for the plaintiffs, highlighting ongoing efforts to hold individuals accountable for financial crimes. The substantial damages awarded reflect the severity of the accusations and the jury's belief in the culpability of Sater.
The trial has also brought to light the intricate connections between high-profile individuals and financial misconduct, raising questions about the broader implications for global financial transparency and accountability. As Sater prepares to appeal, the case continues to attract significant attention.
Felix Sater has been found liable by a federal jury for aiding in laundering millions of dollars through U.S. real estate investments. The jury awarded over $32 million in damages to the city of Almaty, Kazakhstan, and BTA Bank.
Sater, who has a controversial history and once had close ties to Trump, denied the allegations but admitted to some wrongdoing. The case is part of a broader effort to recover funds looted from BTA Bank. Sater plans to appeal the verdict.
