White House-Kodak Controversy Has a New Angle: A Billionaire's Huge Stock Gift to a Synagogue

[Nevilledog]

The White House–Kodak Controversy Has a New Angle: A Billionaire’s Huge Stock Gift to a Synagogue

https://www.motherjones.com/politics/2020/08/white-house-kodak-controversy-george-karfunkel-stock-gift/

In late July, a wild chain of events occurred when the Trump administration decided to give Eastman Kodak, the film giant that went bankrupt in 2012, an unprecedented $765 million government loan through the Defense Production Act. Under this deal, which President Trump touted, the company would manufacture ingredients for an assortment of drugs, including hydroxychloroquine, the antimalarial drug Trump has repeatedly promoted—without scientific support—as a treatment for COVID-19. The agreement was officially announced on July 28, but the previous day, the price of Kodak’s stock began to surge, following local media leaks about the loan in Rochester, New York (the home of Kodak). This buying frenzy continued for a couple of days. During that time, billionaire investor George Karfunkel, a member of Kodak’s board of directors, made an unusual transaction: He donated 3 million Kodak shares—worth up to $180 million at the time—to a relatively new Jewish congregation that has almost no public profile.

The out-of-the-ordinary loan for Kodak came from a new and little-known government agency: the US International Development Finance Corporation. This outfit was created to provide foreign aid—not domestic assistance—and it is headed by Adam Boehler, a former roommate of Jared Kushner. In March, Kushner tapped Boehler to be part of his shadow coronavirus task force.

The Kodak deal is now under investigation by several House committees, which have raised questions about Kodak’s “lack of pharmaceutical experience” and about stock options handed to executives and board members right before the announcement. Sen. Elizabeth Warren (D-Mass.) has called for a probe of whether “one or more individuals may have engaged in insider trading.” In a letter to the Securities and Exchange Commission, she observed, “This is just the latest example of unusual trading activity involving a major Trump administration decision.” According to the Wall Street Journal, “In the wake of the wild trading, the SEC opened an investigation looking at the company’s disclosure of the preliminary agreement and the timing of options grants to Executive Chairman Jim Continenza.” (The SEC declined to confirm the existence of an investigation.) On Friday night, the International Development Finance Corporation tweeted: “Recent allegations of wrongdoing raise serious concerns. We will not proceed any further unless these allegations are cleared.” In response, Kodak stock plunged nearly 30 percent on Monday.

Kodak did not reply to a request for comment. It has created a special committee to conduct an internal review.

*snip*

[matt819]

1. Wow, does this stink, or what?

Tax fraud, stock fraud, corruption, money laundering. This investigation needs to go beyond Congress to the FBI, SEC, and IRS. Of course, having a fantastically corrupt AG makes this highly unlikely. Just add it to the list of investigations to be started on January 21, 2021.

[aquamarina]

2. The amount of house cleaning

The Biden administration will have to conduct is mind blowing.

[Blue Owl]

3. The profits must have gotten engaged.

They went to Jared.

What a shocker...