Steven Mnuchin Red Flags OneWest Was Established In 2009 When Mnuchin, George Soros, And Others Bought Struggling IndyMac. “OneWest was established in 2009 after Mnuchin and other wealthy investors including Michael Dell and a hedge fund run by prominent Democratic donor and Clinton supporter George Soros took over Pasadena mortgage lender IndyMac, which failed in 2008 after many of its less-than-prime mortgage loans soured amid the housing bust.” (James Rufus Koren, “OneWest Bank Shut Out Nonwhite Borrowers While Owned By Steve Mnuchin Led Group, Advocates Say,” Los Angeles Times, 11/17/16) • Two California Advocacy Groups Have Accused OneWest Of Engaging In Racist Lending Practices And Have Asked Federal Regulators To Investigate Whether OneWest Bank Has Discriminated Against Or Failed To Serve Minority Communities. “Two California advocacy groups have asked federal housing regulators to investigate Pasadena’s OneWest Bank over allegations that it discriminated against or failed to serve minority communities.” (James Rufus Koren, “OneWest Bank Shut Out Nonwhite Borrowers While Owned By Steve Mnuchin Led Group, Advocates Say,” Los Angeles Times, 11/17/16 • Mnuchin’s CIT And OneWest Are Already Under Investigation By HUD’s Inspector General Office For The Bank’s Activities Servicing Reverse Mortgages. “The California Reinvestment Coalition, one of the groups that filed the complaint with HUD, had raised similar issues with bank regulators over the past two years while CIT was working to acquire OneWest and as recently as this spring, when regulators reviewed and later approved the bank’s plans to serve minority and low-income communities.” (James Rufus Koren, “OneWest Bank Shut Out Nonwhite Borrowers While Owned By Steve Mnuchin Led Group, Advocates Say,” Los Angeles Times 11/17/16 • In 2011, The Office Of Thrift Supervision Hit The Bank With A Regulatory Order Saying It Had Failed To Follow Various Procedures When Foreclosing On Homeowners. “Regulators, too, have taken issue with some of OneWest’s practices, though not related to potential discrimination. In 2011, the Office of Thrift Supervision hit the bank with a regulatory order saying it had failed to follow various procedures when foreclosing on homeowners.” (James Rufus Koren, “OneWest Bank Shut Out Nonwhite Borrowers While Owned By Steve Mnuchin Led Group, Advocates Say,” Los Angeles Times, 11/17/16) • Critics Say “During The Depths Of The Financial Crisis, Mnuchin Was Looking To Make Profits From The Ruins Of The Housing Bust.” “But Mnuchin's resume also includes a stint as chairman and CEO of a California bank that's been called a foreclosure machine. During the depths of the financial crisis, Mnuchin was looking to make profits from the ruins of the housing bust. In 2009, he put together a group of billionaire investors and bought a failed California-based bank, IndyMac. It had been taken over by the Federal Deposit Insurance Corp. after its sketchy mortgage loans went bad.” (“Trump s Potential Treasury Secretary Headed A Foreclosure Machine ,” NPR, 11/29/16) • A OneWest Employee In Texas Said In A July 2009 Deposition That She Signed About 750 Affidavits And Other Documents Related To Foreclosures And Bankruptcies Every Week, Spending About 30 Seconds On Each Without Always Verifying Their Accuracy. “Like most other big banks, OneWest also had a robo-signing scandal. An employee in Texas said in a July 2009 deposition that she signed about 750 affidavits and other documents related to foreclosures and bankruptcies every week, spending about 30 seconds on each without always verifying their accuracy.” (Zachary Mider, “Nominating Mnuchin for Treasury Will Dredge Up Mortgage Meltdown Controversies,” Bloomberg 11/21/16) • OneWest Employees Claim That They Were Under Orders To Reject As Many Loan Modifications As Possible, And That The Terms Of The Bank’s Arrangements With The FDIC Gave It An Incentive To Complete As Many Foreclosures As It Could. “Another review came from the FDIC, which in early 2011 got a letter from a group of OneWest employees claiming that 1 they were under orders to reject as many loan modifications as possible, and that the terms of the bank’s arrangements with the FDIC gave it an incentive to complete as many foreclosures as it could. The FDIC’s inspector general audited the bank and found the claims mostly unsubstantiated.” (Zachary Mider, “Nominating Mnuchin for Treasury Will Dredge Up Mortgage Meltdown Controversies,” Bloomberg 11/21/16) • “According To The Coalition, OneWest Foreclosed On More Than 36,000 Homeowners Under Mnuchin. During That Time, The FDIC Made Payments To OneWest Totaling More $1 Billion.” (“Trump s Potential Treasury Secretary Headed A Foreclosure Machine ,” NPR, 11/29/16) • In 2011, There Was A Protest Outside Mnuchin’s Bel Air Home After A Homeowner, Who Had Missed Her Mortgage Payment After Her Younger Brother Was Killed And She Lost Her Job, Was Issued A Notice By OneWest That Her Home Would Be Foreclosed On. “Their frustration hit a peak in 2011 as homeowner Rose Gudiel led a protest in front of Mnuchin’s home in the tony Bel Air neighborhood of Los Angeles. Gudiel said she missed her mortgage payments after her younger brother was fatally shot and she was furloughed from her state government job. Gudiel said she was applying for a loan modification when OneWest issued a notice that it would foreclose. Though the bank was servicing the loan, it was owned by Fannie Mae. About 100 demonstrators gathered outside his home. They brought a mattress, a nightstand and a lamp to illustrate her fear of sleeping on the streets if she lost her house.” (Ylan Q. Mui and Renae Merle, “With Treasury Candidate Come Possible Conflicts,” Washington Post 11/17/16) • Mnuchin May Have Personally Gotten More Than $200 Million In Proceeds From The Sale Of OneWest In 2015, According To Bloomberg Calculations. “They changed the name to OneWest, turned it around and sold the bank for a big gain last year. Mnuchin may have personally gotten more than $200 million in proceeds from the sale, according to Bloomberg calculations. That doesn’t count any dividends or payments he might have received as chairman and chief executive officer of OneWest’s parent company.” (Zachary Mider, “Nominating Mnuchin for Treasury Will Dredge Up Mortgage Meltdown Controversies,” Bloomberg, 11/21/16) Mnuchin Was The Co-Chairman Of The Board And Invested In Relativity Media, A Movie Studio, Which Went Into Bankruptcy In 2015 Immediately After Mnuchin Had Left The Group. “OneWest and Mnuchin also were embroiled in the saga of Relativity Media, the studio co-founded by flashy Hollywood executive Ryan Kavanaugh. Mnuchin had invested in the studio via Dune, and served as nonexecutive co-chairman of the board from October 2014 to May 2015, exiting just ahead of the company’s Chapter 11 bankruptcy.” (Daniel Miller and James Rufus Koren, “Treasury Candidate Is A Wall Street Executive Who Has Backed Movies Such As Last Summer s Suicide Squad, ” Los Angeles Times, 12/12/16) • OneWest Was A Lender To The Studio And Was Repaid $50 Million It Lent To The Company Before It Filed For Bankruptcy, Which Some Said Exacerbated The Liquidity Situation At Relativity Media. “According to documents from Relativity’s bankruptcy proceedings, OneWest, a lender to the studio, was repaid $50 million it lent to the company just before it filed for bankruptcy protection. A July 2015 filing by Relativity’s financial adviser at Blackstone Group, which was hired to advise the studio before its bankruptcy, said that this repayment exacerbated its ‘already problematic liquidity situation.’” (Daniel Miller and James Rufus Koren, “Treasury Candidate Is A Wall Street Executive Who Has Backed Movies Such As Last Summer s Suicide Squad, ” Los Angeles Times, 12/12/16) In 2016, Mnuchin’s Fiancé, Actress Louise Linton, Was Criticized For Writing A Memoir About Her Time Traveling In Africa That Critics Said Was Untruthful And Racist. “Until last week, Louise Linton was a little-known Scottish actress living in California, whose most prominent roles were guest spots in the television shows ‘CSI: NY’ and ‘Cold Case’ and the movies ‘Intruder’ and ‘Cabin Fever.’ Now, thanks to a self-published memoir she wrote about her experiences volunteering in Africa when she was 18, she's become the target of outrage and mockery on social media. On top of her literary missteps, Buzzfeed has discovered that she’s dating Donald Trump’s finance chief. The trouble began with an article by Linton 2 that appeared in the Telegraph in the UK on July 1 under the headline ‘How my dream gap year in Africa turned into a nightmare,’ accompanied by a photo of the blond actress.” (Michael Schaub, “Controversial Africa Memoir Draws Fire For Louise Linton, Actress, Self Published Author And Trump Dining Companion,” Los Angeles Times, 7/6/16) Mnuchin Has Made Personal Donations To A Number Of Democrats Including Barack Obama, Hillary Clinton, John Edwards, And John Kerry. (Center for Respective Politics, Accessed 11/29/16) BACKGROUND Personal Information Steven Turner Mnuchin Education Yale University New Have, CT (“Steven Mnuchin,” Bloomberg, Accessed 11/29/16) Work Experience Undefined – 1994: Chief Information Officer at The Goldman Sachs Group 1994-1998: Head of the Mortgage Securities Department at SFM 1998-1999: Oversaw Mortgages, U.S. Governments, Money Markets, And Municipals In The Fixed Income, Currency, And Commodities Division For SFM Capital Management 1999-2001: Member of the Executive Office SFM Capital Management 2001- 2003: Executive Vice President SFM Capital Management 2002: Hired To Run A Credit Fund Set Up By Billionaire George Soros. 2003 – 2004: Chief Executive Officer at SFM Capital Management 2003 – Present: Vice-Chairman of ESL Investments 2004: Founded Hedge Fund Dune Capital Management LP 2005 – Present: Independent Director of Sears Holdings Corporation 2009-2015: Co-Founded and served as Chairman of OneWest Bank Group LLC 2014 - Undefined: Non-Executive Co-Chairman of Relativity Media, LLC 2015-2016: Served as Vice Chairman of CIT Group Inc. Board Memberships: Director on the Yale Development Board. Member of the Board of Museum of Contemporary Art Los Angeles (MOCA), New York Presbyterian Hospital, the Los Angeles Police Foundation, Life Trustee of New York Presbyterian Hospital and UCLA Health System Board. He is a Trustee of Sculpture Garden Board. He was a Board Member of Junior Achievement National Board, the Whitney Museum, the Hirshhorn Museum, City Harvest and Riverdale Country School. (“Steven Mnuchin,” Bloomberg, Accessed 11/29/16) 3 Political Contributions According to Opensecrets, Mnuchin Has Contributed To Republicans And Democrats, Including Barack Obama, Hillary Clinton, Donald Trump, the RNC, John Edwards, And John Kerry. (mm Accessed 11/29/16) MNUCHIN, STEVEN ONE WEST BANK 6/30/16 $75,800 Republican National Cmte (R) MR MNUCHIN, STEVEN One West Bank 6/30/16 $10,000 Republican Party of Arkansas - (R) MNUCHIN, STEVEN ONE WEST BANK 6/30/16 $2,700 Trump, Donald (R) MR MNUCHIN, STEVEN ONE WEST BANK 6/30/16 $100,200 Republican National Cmte (R) MR MNUCHIN, STEVEN ONE WEST BANK 6/30/16 $100,200 Republican National Cmte (R) MR MNUCHIN, STEVEN MR MNUCHIN, STEVEN l?T MNUCHIN, STEVEN MNUCHIN, STEVEN Ia MNUCHIN, STEVEN MR MNUCHIN, STEVEN MR MNUCHIN, STEVEN MNUCHIN, STEVEN TMR MNUCHIN. STEVEN MNUCHIN, STEVEN ONE WEST BANK DUNE CAPITAL MANAGEMENT CIT GROUP, INC. DUNE CAPITAL MANAGEMENT ONE WEST BANK ONE WEST BANK DUNE CAPITAL MANAGEMENT ONE WEST BANK ONE WESI BANK DUNE CAPITAL MANAGEMENT 6/30/16 2/?0/16 4/29/14 9/10/12 6/8/12 5/8/12 9/1/11 5/12/10 52, 700 $1,900 $2,000 $1,900 $12,500 $2,500 $1,900 $2,500 $1,000 $1,900 T'ump, Donald (R) Wildes, Michae (D) Harr s, KamaIa (D) Wildes. Mrchae Republican National Cmte (R) Romney. Mitt (R) Wuldes, M-chae (D) Romney, Mitt (R) Pawlenty, Ti'n (R) WiIdes, chae (D) MNUCHIN. STEVEN DUNE CAPITAL 10/22/07 $2,300 Clinton. Hillary(D) IA MNUCHIN. STEVEN DUNE CAPITAL MANAGEMENT 6/4/07 $2,300 Obama, Barack (D) .4 MNUCHIN. STEVEN DUNE CAPITAL MANAGEMENT 4/18/07 $1,000 Lautenberg, Frank (D) IA MNUCHIN. STEVEN DUNE CAPITAL MANAGEMENT 3/28/07 $2,300 Dodd, Chris (D) MR MNUCHIN. STEVEN DUNE CAPITAL 2/22/07 $2,300 Landrieu, Mary LID) IA MNUCHIN. STEVEN DUNE CAPITAL MANAGEMENT 2/14/07 $2,300 Giuliani, Rudolph (R) MR MNUCHIN. STEVEN DUNE CAPITAL MANAGEMENT 2/1/07 $2,100 Edwards,John (D) I?l Criminal Filings According To Nexis, Mnuchin Has No CRIMINAL FILINGS Filed Against Him. (Nexis, Accessed 11/29/16) GENERAL CONTROVERSY Mnuchin Was The Head 0f0neWest Bank, Which Has Been Under In vestigation For Reverse Mortgage Policies, And Has Been Accused Of Racially Discriminatory Mortgage Practices In November 2016, Two California Advocacy Groups Asked Federal Regulators To Investigate Whether Mnuchin?s OneWest Bank Has Discriminated Against Or Failed To Serve Minority Communities. ?Two California advocacy groups have asked federal housing regulators to investigate Pasadena?s OneWest Bank over allegations that it discriminated against or failed to serve minority communities. The allegations lodged with the US. Department of Housing and Urban Development build on a multitude of earlier complaints against the bank. They come as former OneWest Chairman Steve Mnuchin is rumored to be a leading candidate for the post of US. Treasury secretary under President- elect Donald Trump. Mnuchin remains a board member Group, a New York financial services Company that acquired OneWest last year.? (James Rufus Koren, "OneWest Bank Shut Out Nonwhite Borrowers While Owned By Steve Mnuchin Led Group, Advocates Say," WW 1 1/17/16) ?The California Reinvestment Coalition, One Of The Groups That Filed The Complaint With HUD, Had Raised Similar Issues With Bank Regulators Over The Past Two Years While CIT Was Working 6 To Acquire OneWest and as recently as this spring, when regulators reviewed and later approved the bank’s plans to serve minority and low-income communities.” (James Rufus Koren, “OneWest Bank Shut Out Nonwhite Borrowers While Owned By Steve Mnuchin Led Group, Advocates Say,” Los Angeles Times 11/17/16) “In Their Complaint, The Coalition And Fair Housing Advocates Of Northern California Allege That OneWest Has Made Few Loans To Nonwhite Borrowers, Operates A Small Number Of Branches In Minority Neighborhoods And Has Neglected Foreclosed Properties In Those Neighborhoods.” (James Rufus Koren, “OneWest Bank Shut Out Nonwhite Borrowers While Owned By Steve Mnuchin Led Group, Advocates Say,” Los Angeles Times, 11/17/16) Mnuchin’s CIT And OneWest Are Already Under Investigation By HUD’s Inspector General Office For The Bank’s Activities Servicing Reverse Mortgages. “CIT and OneWest are already being investigated by HUD’s Office of Inspector General. The office last year served subpoenas demanding information about the bank’s servicing of reverse mortgages. CIT disclosed the investigation in a regulatory filing last year.” (James Rufus Koren, “OneWest Bank Shut Out Nonwhite Borrowers While Owned By Steve Mnuchin Led Group, Advocates Say,” Los Angeles Times, 11/17/16) “Regulators, Too, Have Taken Issue With Some Of OneWest’s Practices, Though Not Related To Potential Discrimination. In 2011, The Office Of Thrift Supervision Hit The Bank With A Regulatory Order Saying It Had Failed To Follow Various Procedures When Foreclosing On Homeowners.” (James Rufus Koren, “OneWest Bank Shut Out Nonwhite Borrowers While Owned By Steve Mnuchin Led Group, Advocates Say,” Los Angeles Times, 11/17/16) OneWest Was Established In 2009 When Mnuchin, George Soros, And Others Bought Struggling IndyMac. “OneWest was established in 2009 after Mnuchin and other wealthy investors including Michael Dell and a hedge fund run by prominent Democratic donor and Clinton supporter George Soros took over Pasadena mortgage lender IndyMac, which failed in 2008 after many of its less-than-prime mortgage loans soured amid the housing bust.” (James Rufus Koren, “OneWest Bank Shut Out Nonwhite Borrowers While Owned By Steve Mnuchin Led Group, Advocates Say,” Los Angeles Times, 11/17/16) Mnuchin And His Team Were Able To Finance The Deal When The FDIC Agreed To Cover Much Of The Bank’s Losses On Bad Loans. “Mnuchin and his group turned the savings and loan into a more traditional commercial bank with the help of a widely criticized deal under which the Federal Deposit Insurance Corp. agreed to cover much of the bank’s losses on bad loans.” (James Rufus Koren, “OneWest Bank Shut Out Nonwhite Borrowers While Owned By Steve Mnuchin Led Group, Advocates Say,” Los Angeles Times 11/17/16) Mnuchin Made A Fortune Running OneWest Bank, Which Has Been Described As A “Foreclosure Machine” Critics Say “During The Depths Of The Financial Crisis, Mnuchin Was Looking To Make Profits From The Ruins Of The Housing Bust.” “But Mnuchin's resume also includes a stint as chairman and CEO of a California bank that's been called a foreclosure machine. During the depths of the financial crisis, Mnuchin was looking to make profits from the ruins of the housing bust. In 2009, he put together a group of billionaire investors and bought a failed California-based bank, IndyMac. It had been taken over by the Federal Deposit Insurance Corp. after its sketchy mortgage loans went bad.” (“Trump s Potential Treasury Secretary Headed A Foreclosure Machine ,” NPR, 11/29/16) “Mnuchin And His Partners Bought IndyMac On The Condition That The FDIC Agree To Pay Future Losses Above A Certain Threshold. They Renamed The Bank OneWest Bank And, After Running It For 6 Years, They Sold It Last Year For A Profit, Estimated At Close To $1.5 Billion.” (“Trump s Potential Treasury Secretary Headed A Foreclosure Machine ,” NPR, 11/29/16) Mnuchin May Have Personally Gotten More Than $200 Million In Proceeds From The Sale Of OneWest In 2015, According To Bloomberg Calculations. “They changed the name to OneWest, turned it around and sold the bank for a big gain last year. Mnuchin may have personally gotten more than $200 million in proceeds from the sale, according to Bloomberg calculations. That doesn’t count any 7 dividends or payments he might have received as chairman and chief executive officer of OneWest’s parent company.” (Zachary Mider, “Nominating Mnuchin for Treasury Will Dredge Up Mortgage Meltdown Controversies,” Bloomberg, 11/21/16) “According To The Coalition, OneWest Foreclosed On More Than 36,000 Homeowners Under Mnuchin. During That Time, The FDIC Made Payments To OneWest Totaling More $1 Billion.” (“Trump s Potential Treasury Secretary Headed A Foreclosure Machine ,” NPR, 11/29/16) In 2011, There Was A Protest Outside Mnuchin’s Bel Air Home After A Homeowner, Who Had Missed Her Mortgage Payment After Her Younger Brother Was Killed And She Lost Her Job, Was Issued A Notice By OneWest That Her Home Would Be Foreclosed On. “Their frustration hit a peak in 2011 as homeowner Rose Gudiel led a protest in front of Mnuchin’s home in the tony Bel Air neighborhood of Los Angeles. Gudiel said she missed her mortgage payments after her younger brother was fatally shot and she was furloughed from her state government job. Gudiel said she was applying for a loan modification when OneWest issued a notice that it would foreclose. Though the bank was servicing the loan, it was owned by Fannie Mae. About 100 demonstrators gathered outside his home. They brought a mattress, a nightstand and a lamp to illustrate her fear of sleeping on the streets if she lost her house.” (Ylan Q. Mui and Renae Merle, “With Treasury Candidate Come Possible Conflicts,” Washington Post, 11/17/16) “After The Protest, Gudiel Said She Qualified For A Loan Modification And Hasn’t Missed A Payment Since Receiving It. She Is Still Living In Her Three-Bedroom Home Outside Of Los Angeles.” (Ylan Q. Mui and Renae Merle, “With Treasury Candidate Come Possible Conflicts,” Washington Post 11/17/16) One Homeowner Testified That OneWest Moved To Foreclose On Her Family, Despite Her Families Willingness To Pay Off the Home In Full, After Her Father Had Signed Reverse Mortgage Forms While He Was Heavily Medicated. “After Mnuchin took over in 2009, he slowed the unit’s origination of new loans and stopped completely in 2011, according to Reverse Mortgage Daily. The bank continued to service existing reverse mortgages, sometimes foreclosing on elderly retirees. Julie Cheney, whose father got a loan from Financial Freedom before his death in 2005, testified at the Los Angeles hearing that he hadn’t needed the loan and was heavily medicated when he signed documents. After he died, OneWest moved to foreclose despite the family’s willingness to repay in full, she said.” (Zachary Mider, “Nominating Mnuchin for Treasury Will Dredge Up Mortgage Meltdown Controversies,” Bloomberg 11/21/16) OneWest Also Had A Robo-Signing Scandal A OneWest Employee In Texas Said In A July 2009 Deposition That She Signed About 750 Affidavits And Other Documents Related To Foreclosures And Bankruptcies Every Week, Spending About 30 Seconds On Each Without Always Verifying Their Accuracy. “Like most other big banks, OneWest also had a robo-signing scandal. An employee in Texas said in a July 2009 deposition that she signed about 750 affidavits and other documents related to foreclosures and bankruptcies every week, spending about 30 seconds on each without always verifying their accuracy.” (Zachary Mider, “Nominating Mnuchin for Treasury Will Dredge Up Mortgage Meltdown Controversies,” Bloomberg, 11/21/16) “Two Years Later, The U.S. Office Of Thrift Supervision, Citing Questionable Foreclosure Practices Across The Industry, Ordered OneWest And The Other 13 Biggest Mortgage Servicers To Review Their Procedures And Fix Any Errors They Found. Only OneWest finished the exercise. In 2014, the OCC said OneWest’s review had found only a handful of errors. The other banks paid billions of dollars to settle the case without completing a review.” (Zachary Mider, “Nominating Mnuchin for Treasury Will Dredge Up Mortgage Meltdown Controversies,” Bloomberg, 11/21/16) OneWest Employees Claim That They Were Under Orders To Reject As Many Loan Modifications As Possible, And That The Terms Of The Bank’s Arrangements With The FDIC Gave It An Incentive To Complete As Many Foreclosures As It Could. “Another review came from the FDIC, which in early 2011 got a letter from a group of OneWest employees claiming that they were under orders to reject as many loan modifications as possible, and that the terms of the bank’s arrangements with the FDIC gave it 8 an incentive to complete as many foreclosures as it could. The FDIC’s inspector general audited the bank and found the claims mostly unsubstantiated.” (Zachary Mider, “Nominating Mnuchin for Treasury Will Dredge Up Mortgage Meltdown Controversies,” Bloomberg 11/21/16) Mnuchin’s Firm Was Paid A Large Debt Repayment Immediately Before A Film Studio He Invested In Filed For Bankruptcy Mnuchin Was The Co-Chairman Of The Board And Invested In Relativity Media, A Movie Studio, Which Went Into Bankruptcy In 2015 Immediately After Mnuchin Had Left The Group. “OneWest and Mnuchin also were embroiled in the saga of Relativity Media, the studio co-founded by flashy Hollywood executive Ryan Kavanaugh. Mnuchin had invested in the studio via Dune, and served as nonexecutive co-chairman of the board from October 2014 to May 2015, exiting just ahead of the company’s Chapter 11 bankruptcy.” (Daniel Miller and James Rufus Koren, “Treasury Candidate Is A Wall Street Executive Who Has Backed Movies Such As Last Summer s Suicide Squad, ” Los Angeles Times, 12/12/16) OneWest Was A Lender To The Studio And Was Repaid $50 Million It Lent To The Company Before It Filed For Bankruptcy, Which Some Said Exacerbated The Liquidity Situation At Relativity Media. “According to documents from Relativity’s bankruptcy proceedings, OneWest, a lender to the studio, was repaid $50 million it lent to the company just before it filed for bankruptcy protection. A July 2015 filing by Relativity’s financial adviser at Blackstone Group, which was hired to advise the studio before its bankruptcy, said that this repayment exacerbated its ‘already problematic liquidity situation.’” (Daniel Miller and James Rufus Koren, “Treasury Candidate Is A Wall Street Executive Who Has Backed Movies Such As Last Summer s Suicide Squad, ” Los Angeles Times 12/12/16) “Adviser Timothy Coleman Of Blackstone Wrote In The Filing That This Caused Relativity To ‘Largely Have To Stop Paying Many Vendor Bills, To Postpone Production Of Certain Film Projects, And To Postpone The Release Of Certain Completed Films.’” (Daniel Miller and James Rufus Koren, “Treasury Candidate Is A Wall Street Executive Who Has Backed Movies Such As Last Summer s Suicide Squad, ” Los Angeles Times 12/12/16) Typically, Large Debt Repayments Before Bankruptcy Are Frowned Upon Because One Creditor Is Not Supposed To Be Favored Over Another. “Typically, bankruptcy courts look askance at large payments to one creditor shortly before filing for Chapter 11, because companies aren’t supposed to favor one creditor over another. Nonetheless, Relativity’s plan to reorganize its business was approved by a New York bankruptcy court judge in March, wiping hundreds of million of dollars of debt from its balance sheet.” (Daniel Miller and James Rufus Koren, “Treasury Candidate Is A Wall Street Executive Who Has Backed Movies Such As Last Summer s Suicide Squad, ” Los Angeles Times 12/12/16) The $50 Million Debt Repayment Was An Issue In A Civil Lawsuit Filed By Another Film Financing Firm That Stated Mnuchin “Was In A Unique Position, Affording Him Knowledge Of Both Relativity’s Precarious Financial Position And The Ability To Ensure Certain Creditors — Namely, OneWest Bank — Were Able To Siphon Away Funds That Had Been Commingled With RKA’s [Money].” “But the issue of the $50 million repayment also surfaced in a civil lawsuit filed by RKA Film Financing, an investor in Relativity, against Kavanaugh, Mnuchin and others. The case, which was filed in New York County Supreme Court and included allegations of fraud, claimed that money RKA lent to Relativity was used for purposes other than those it was earmarked for. The lawsuit alleged that at least some of RKA’s money was likely included in the funds paid to OneWest. The complaint, which was first filed last year and amended in March, claimed that Mnuchin ‘was in a unique position, affording him knowledge of both Relativity’s precarious financial position and the ability to ensure certain creditors namely, OneWest Bank were able to siphon away funds that had been commingled with RKA’s [money].’” (Daniel Miller and James Rufus Koren, “Treasury Candidate Is A Wall Street Executive Who Has Backed Movies Such As Last Summer s Suicide Squad, ” Los Angeles Times 12/12/16) Mnuchin’s Fiancé Was Criticized For Embellishing An Experience While Traveling In Africa, And For Borderline Racist Writings 9 In 2016, Mnuchin’s Fiancé, Actress Louise Linton, Was Criticized For Writing A Memoir About Her Time Traveling In Africa That Critics Said Was Untruthful And Racist. “Until last week, Louise Linton was a little-known Scottish actress living in California, whose most prominent roles were guest spots in the television shows ‘CSI: NY’ and ‘Cold Case’ and the movies ‘Intruder’ and ‘Cabin Fever.’ Now, thanks to a self-published memoir she wrote about her experiences volunteering in Africa when she was 18, she's become the target of outrage and mockery on social media. On top of her literary missteps, Buzzfeed has discovered that she’s dating Donald Trump’s finance chief. The trouble began with an article by Linton that appeared in the Telegraph in the UK on July 1 under the headline ‘How my dream gap year in Africa turned into a nightmare,’ accompanied by a photo of the blond actress.” (Michael Schaub, “Controversial Africa Memoir Draws Fire For Louise Linton, Actress, Self Published Author And Trump Dining Companion,” Los Angeles Times, 7/6/16) “In The Article, Linton, Who Was In Zambia, Described Hiding From Armed Rebels As A Nearby Village Was Being Attacked. ‘As The Night Ticked Interminably By, I Tried Not To Think What The Rebels Would Do To The “Skinny White Muzungu With Long Angel Hair” If They Found Me,’ she writes, using a Swahili word for a foreigner of European heritage.” (Michael Schaub, “Controversial Africa Memoir Draws Fire For Louise Linton, Actress, Self Published Author And Trump Dining Companion,” Los Angeles Times, 7/6/16) Some Zambians Questioned Her Account. “On Twitter, the hashtag #LintonLies caught on, as some users accused Linton of not being truthful in her memoir, which claims that violence between the warring Hutu and Tutsi people had spilled from the Congo into Zambia. In the Guardian, Zambian writer Lydia Ngoma raised several questions about the accuracy of Linton's account. ‘As a Zambian, the whole article just made me cringe,’ Ngoma wrote. ‘But on a more serious level, it also made me wonder just how many other countries around the world people like her have falsely documented and gained credit for?’” (Michael Schaub, “Controversial Africa Memoir Draws Fire For Louise Linton, Actress, Self Published Author And Trump Dining Companion,” Los Angeles Times, 7/6/16) Linton Offered An Apology On Twitter Saying Her Intent Was Not To Offend. “On Tuesday, Linton offered an apology on Twitter, writing, ‘I am genuinely dismayed and very sorry to see that I have offended people as this was the very opposite of my intent.’” (Michael Schaub, “Controversial Africa Memoir Draws Fire For Louise Linton, Actress, Self Published Author And Trump Dining Companion,” Los Angeles Times, 7/6/16) Mnuchin’s Firm Helped Finance A Trump Hotel In Chicago, And Trump Sued Mnuchin In 2008, Trump Sued Mnuchin’s Dune Capital, Who Was A Lender For The Construction Of A Trump Tower In Chicago. “One of the lenders that have extended credit to Mr. Trump is Mr. Mnuchin’s Dune Capital. Dune was among a syndicate of lenders led by Deutsche Bank for the construction of his Trump International Hotel & Tower, a 92-story skyscraper in Chicago. Mr. Trump sued the lenders, including Dune, in 2008 to extend the terms of the loan on the basis of ‘unprecedented financial crisis in the credit markets.’ The suit was later settled.” (Andrew Ross Sorkin, “Donald Trump s Pick for Fund Raiser Is Rife With Contradictions,” New York Times, 5/9/16) 10