Kerik Loan Activity Is Brought to Light After Indictment

[Desperadoe]

Source: New York Times

Bernard B. Kerik fully repaid a $250,000 personal loan cited in his recent federal indictment days after city investigators began asking about it in 2005, according to people who have been briefed on the transaction.

Federal prosecutors have not alleged that anything about the loan itself was improper. But they charged in a 16-count indictment unsealed two weeks ago that Mr. Kerik had failed to disclose it to the federal government as required after the White House appointed him to train the Iraqi police in 2003.

The loan allegation was one of the few surprises in the indictment, which charged Mr. Kerik with tax evasion and fraud largely in connection with previously known financial transactions. In filing the charges, prosecutors with United States attorney’s office declined to identify a “wealthy Israeli industrialist” said to have financed the loan or to name the “Brooklyn businessman” said to have served as an intermediary in the transaction, referring to them only as John Doe No. 7 and John Doe No. 8.

But interviews with people who have been briefed on the transaction indicate that the industrialist was an Israeli billionaire and philanthropist, Eitan Wertheimer, whose family’s vast holdings include companies with United States Defense Department contracts. The Brooklyn businessman was Shimon Cohen, a marble and stone merchant who has been a friend of Mr. Kerik’s for several years.<snip>



Read more: http://www.nytimes.com/2007/11/24/nyregion/24kerik.html

[sarcasmo]

1. How does one get a quarter of a million dollar personal loan?

Does Ghoulliani have to co-sign?

[Desperadoe]

2. How does one get a quarter of a million dollar personal loan?

<snip> Two years ago, though, Mr. Cohen was interviewed by city investigators and described the 2003 loan as an informal transaction. He said that in handing the money over, he had not discussed any interest with Mr. Kerik nor set any timetable for repayment, according to people briefed on his account of the loan and Mr. Cohen’s lawyer.

Nonetheless, on June 10, 2005, nine days after Mr. Cohen’s conversation with city investigators, Mr. Kerik paid back the loan in full, with interest.<snip>

I'm sure that Mr. Wertheimer, the wealthy Isreali billionaire and philanthropist, does this type of thing all the time for nice former police commissioners, with no paper or stated interest. Must be how he made all that money or maybe it's a part of his philanthropy.

Even though the fibbers are not claiming that this is criminal, you can bet that they made sure it is in the findings for a reason. This is dirty and my guess is that Ghoulie is all over this. Wouldn't you like to know where a punk like Kerik finds a quarter of a mil to pay back this loan on just a few days notice?

[Captain Angry]

3. He probably had that amount of cash on hand already.

People like him borrow money they don't need because it increases the leverage on investments.

If you spend $100 of your money and turn it into $200, you have a nice return.

However, if you borrow $100, turn it into $200, and pay back the original $100 and $5 in interest, you have turned $5 into $200.

None of that makes Kerik any more of a human being, it's just a reason he might have borrowed money he could pay back whenever he wanted to. Hell, he could have borrowed that money with no strings and just stuck it in a savings account for the interest.

[rodeodance]

4. How does one repay it so quickly?