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Trump buddy Tom Barrack ordered the discharge of a $ 250 million bond, his SPAC is withdrawing SEC registration and the IPO plan

Thomas Barrack, Executive Chairman and CEO of Colony Capital, attends a panel discussion during the annual Milken Institute Global Conference at the Beverly Hilton Hotel on April 28, 2019 in Beverly Hills, California.

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A federal judge in Los Angeles on Friday ordered the release of a $ 250 million secured loan from Thomas Barrack, the private equity investor charged with his close friend, ex-President Donald Trump, illegally for the United Arabs To have operated Emirates.

The order requires that the release bond – the highest ever in the world – be backed by $ 5 million in cash, an additional $ 21.23 million in securities, and Barracks House in California.

Barrack and his co-defendant Matthew Grimes, a 27-year-old business associate, had been in jail since Tuesday when they were arrested in Los Angeles on an indictment by Brooklyn, New York Federal Court.

Grimes was approved for a $ 5 million bond early Friday. Neither he nor Barrack appeared in court before Judge Patricia Donohue because they had waived their appearance.

Donohue ordered Barrack to surrender his passport, wear an electronic wristband, and subject him to GPS monitoring and a curfew.

Barrack was also ordered to remain with his lawyers, at least until his and Grimes’ indictment in Brooklyn on Monday.

He also cannot transfer funds overseas, cannot transfer more than US $ 50,000 except for attorney’s fees, and may trade in securities without written permission from the prosecutor. His travels are limited to the central federal district of California and the southern and eastern boroughs of New York, which include New York City, Long Island, and several boroughs north of the Big Apple.

Barrack was listed on the Forbes Richest Billionaires list in 2013, but has not been on that list since then.

Earlier Friday, Falcon Acquisition, a Barrack-backed acquisition vehicle, announced to the Securities and Exchange Commission that it was withdrawing its registration with the agency “because the company has decided to abandon proposed transactions.”

The transactions included an IPO of 25 million shares to raise $ 250 million for the Falcon Acquisition, founded by Barracks Family Office Falcon Peak and TI Capital.

Falcon Acquisition, which had planned to list its shares on the New York Stock Exchange, announced that it would target technology-oriented companies as candidates for mergers.

A Falcon Peak attorney did not immediately respond to a CNBC request for comment.

Barrack and Grimes were originally due to be heard on bail in Los Angeles on Monday.

But that was postponed to Friday after prosecutors reached an agreement with defense attorneys on bail terms.

Attorneys at Barrack’s first LA court appearance earlier this week moved to detain him until he appears for at least one more court hearing in Brooklyn because he could escape to avoid charges. Barrack is a Lebanese citizen and has a private jet.

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Barrack, who chaired Trump’s 2017 housewarming fund, is accused, along with Grimes and UAE national Rashid Sultan Rashid Al Malik Alshahhi, of secretly advocating Emirates’ interests on the orders of senior officials from the oil-rich Gulf country. Prosecutors said the three influenced the foreign policy positions of Trump’s 2016 campaign and continued those efforts through Trump’s presidency through April 2018.

Barrack is also charged with obstruction of justice and multiple false statements during an interview with federal police officers in June 2019.

The indictment states that Barrack was simultaneously advising American officials informally on Middle East policy and seeking appointment to a senior role in the US government, including special envoy for the Middle East.

Alshahhi, 43, remains at large.

Barrack resigned last year as CEO of Colony Capital, a private equity firm he founded, and as its Executive Chairman in April.

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