Bayrock Group is an international real estate development and investment firm based in New York. The company was founded by Kazakh businessman, Tevfik Arif in 2001.
Video Bayrock Group
History and personnel
The Bayrock Group was founded in 2001 by Tevfik Arif, a former Soviet official from Kazakhstan who became an international businessman. He founded Bayrock after he transferred some of his business to the United States.
Arif hired Russian businessman, Felix Sater, as Bayrock managing director in 2003. Sater became Chief Operating Officer of Bayrock, and assisted several projects, including the project management of Trump SoHo. Sater left Bayrock in 2008 after the article New York Times reveals its criminal past. In 1998, Sater has pleaded guilty to extortion and stock fraud as part of a $ 40 million pump and disposal scheme linked to the US and Russian mafia. He works with the CIA and FBI, allegedly offering information about the black market for Stinger missiles. Sater then works as a senior advisor to Trump.
By 2014, Bayrock is largely inactive, with the exception of several lawsuits.
Maps Bayrock Group
Company structure
According to Forbes Bayrock is "a series of publicly controlled, but not wholly owned, limited liability companies." Bayrock Group is set tiered, with Bayrock Group LLC having a plural majority or interest in approximately 12 parent subsidiaries. The parent company in turn has a majority interest in the company at a lower level. The lower-level subsidiaries correspond to individual real estate projects, with Bayrock Spring Street in accordance with Trump SoHo, Bayrock Camelback for the Phoenix hotel project, and Bayrock Merrimac to Trump Fort Lauderdale hotel. Other Bayrock subsidiaries include Bayrock Whitestone and Bayrock Ocean Club .
Bayrock Group has had a strategic partnership with investment companies Iceland FL Group and Eurasia Resources Group affiliated with Alexander Mashkevitch. A Bayrock Group investor presentation from 2007 refers to Mashkevitch's "Eurasian Group" as a strategic partner in equity financing.
Projects and properties
After moving the Bayrock Group to the 24th floor of Trump Tower, Arif developed a relationship with billionaire businessman Donald Trump. Bayrock went on to collaborate with The Trump Organization on projects in Turkey, Poland, Ukraine, Russia, Arizona, Colorado, New York, and Florida.
Loehmann's Seaport Plaza
Arif began developing properties in Brooklyn, initially rebuilding Loehmann's Seaport Plaza, a 26,000 square foot seaside mall on Emmons Avenue in Sheepshead Bay, Brooklyn. Tenant properties include Loehmann's and Nine West Shoes.
Trump International Hotel & amp; Residence
In 2003, Bayrock bought a site of bankruptcy at Camelback Corridor of Phoenix, Arizona. Bayrock announces plans for Trump International Hotel & amp; Residence, Trump International Hotel for $ 200 million, 190-feet. Plans for the project include 97 units of private homes ranging from $ 950,000 and 188 hotel/condo rooms. Although the site was approved by the Phoenix City Council and Planning Commission in 2005, the project was restrained by public opposition and was never completed.
Bayrock later failed on a $ 36 million loan from Hypo Real Estate Capital Group, which sold the site in 2010.
Moscow high-rise
In 2005, Donald Trump extended Bayrock Group one year to develop a project in Moscow. Sater puts Russian investors and potential sites for tall buildings, an enclosed pencil factory called Sacco and Vanzetti. Sater said, "We saw some very, very large properties in Russia," on a scale "... a tall building in Vegas." Bayrock organized a potential deal in Moscow between Trump International Hotel and Russian investors in 2007, but the deal never worked.
Trump SoHo
Trump SoHo is a 46-million-dollar condo-hotel hybrid, 46 floors, 39 units located at 246 Spring Street in SoHo, New York City. The hotel is a joint venture between Bayrock, The Trump Organization, and Sapir Organization, a company owned by Georgia real estate developer Tamir Sapir. Trump awarded a license agreement for the hotel in return for an 18% equity stake in the project. The project is funded by Kazakh businessman Alexander Mashkevitch.
In 2007, Bayrock traded future earnings from Trump SoHo and other projects in exchange for $ 50 million in financing from Iceland's FL Group Company. The arrangement directs Bayrock's chief financial officer to file a rape lawsuit, alleging that money is being transferred to people outside the company, including Salvatore Lauria, Sater's partner.
Sater was the managing director of Bayrock and Trump's senior adviser when the Trump SoHo construction began in 2006. Sater played a major role during the building process. Sater receives a call from a court in the Southern District of New York for a case of fraud and embezzlement against former BTA Chairman Bank Mukhtar Ablyazov and former Mayor Almaty Viktor Khrapunov. Bank BTA funds are heralded allegedly used to buy some condominiums in Trump Soho as a method of washing and concealment.
Trump International Hotel and Tower (Fort Lauderdale)
Bayrock worked with Trump to develop Trump International Hotel and Tower in Fort Lauderdale, Florida.
European Project
Bayrock Group develops seven seaside resort resorts in Europe. These hotels are managed by the luxury Turkish hotel chain, Rixos Hotels. Resorts in Turkey on the Mediterranean Sea include Rixos Hotel Tekirova near Tekirova; Rixos Hotel Belek in Belek; Rixos Hotel Labada near ÃÆ' â € ¡amyuva; and Rixos Hotel Beldibi in Beldibi.
Legal charges involving Bayrock
Arizona settings (2007)
Trump International Hotel & amp; Housing investor Ernest Mennes filed suit in US District Court in Arizona in 2007. The lawsuit alleges that Bayrock has taken money from Trump's development plan in Phoenix. It was further suspected that Sater had summoned Mennes in 2006, threatening that if he exposed Sater's criminal past, that his cousin would "electrically sting Mr. Mennes's scrotrels, cut Mr. Mennes's feet, and leave Mr. Mennes dead in the trunk of his car. "The case is resolved by Bayrock and Mennes are prohibited from discussing this issue.
Kriss v. Bayrock
In the case of the federal Kriss et al. vs. Bayrock Group LLC et al., Two former Bayrock employees, former finance directors Jody Kriss and Michael Chudi Ejekam, filed suit in US District Court in New York in 2010. The lawsuit alleges that Sater's role in the company was hidden and that the company "substantially and veiled are owned and operated covertly. " Trump SoHo lawsuits
In 2011, Rockwell Group, an interior design firm, sued Bayrock and Sapir Organization for losses of more than $ 1.5 million after Bayrock failed to pay for interior design work at Trump SoHo. Bayrock replied two days later, filing a complaint with the New York Supreme Court. Cases
Qui tam (2015)
Lawyers Frederick Oberlander and Richard Lerner carry the case against Quadrupt against Bayrock in 2015. The lawsuit alleges that Arif, Satter, and others have been in control of Bayrock for nearly a decade and have been "involved in a series of tax frauds and then take steps to hide the scam. "
References
Source of the article : Wikipedia
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