The charges brought against the prominent developer by the office of US attorney Christopher Christie, who has rounded up nearly 50 public and private sector figures in his four-year tenure, trace back to violations of federal tax and campaign laws (Kushner has been a major contributor to Democratic candidates and causes). The charges also included retaliating against an FBI witness, who happened to be his own sister, in a scheme that involved videotaping his brother-in-law in a tryst with a prostitute.

Under the plea agreement, Kushner could have been sentenced to as little as 18 months. But Judge Linares levied the max in a contentious three-hour session in federal court here. Terming Kushner's acts "vile and outrageous," and "horrific and reprehensible," Linares largely ignored the more than 700 letters filed with the court on Kushner's behalf.

As part of the sentence, Kushner will also have to pay a $40,000 fine, complete two years of probation and undergo psychiatric evaluation. In ordering the latter, Linares voiced the opinion that Kushner's charitable endeavors "cannot be easily reconciled with the criminal behavior."

Speaking on behalf of his client, attorney Benjamin Brafman called the behavior "a family squabble gone awry." The trouble began when Kushner's older brother and former partner Murray Kushner filed suit against his brother, charging the misuse of company funds. Murray Kushner, who heads the Bridgewater, NJ-based firm of Schenkman & Kushner, ultimately settled with Charles, but the whole matter attracted the attention of federal officials.

As part of the sentencing, Linares also listened to federal prosecutors who charged that Kushner had obstructed the feds' ongoing probe into the Florham Park, NJ-based Kushner Cos.' affairs. The firm, from which Charles Kushner stepped down as chairman after pleading guilty last summer, owns and/or manages more than $3 billion worth of real estate assets, most of that through a complex series of partnerships.

Last month, Kushner was ordered to pay $12.5 million in fines for violations of federal banking laws relating to NorCrown Bank. Kushner had recently sold the bank as required by the feds in the wake of those violations.

Instant Insights /

Kushner Draws Two-Year Sentence

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