US Supreme Court Denies Appeal from Banker Linked to Trump Associate Manafort, Reports Reuters

U.S. Supreme Court Rejects Appeal from Former Bank CEO Convicted of Bribery

By Jonathan Stempel

The U.S. Supreme Court declined on Monday to consider an appeal from the former CEO of a Chicago bank who was convicted of bribery following the approval of $16 million in questionable loans to Paul Manafort, who served as Donald Trump’s campaign chairman in 2016. The loans were allegedly part of a scheme to secure a prominent position in Trump’s administration.

Stephen Calk, the former chairman and chief executive of Federal Savings Bank, sought to overturn a lower court’s ruling that upheld his conviction and a prison sentence of one year and one day.

Prosecutors contended that after Manafort received the loans in 2016, he recommended Calk for the role of U.S. Army secretary to Trump’s transition team after the election in November. Calk, who is 59 and had previously served for 16 years as an Army reservist, was later interviewed for the position of under secretary of the Army in January 2017 but was not selected.

In 2021, a federal jury in Manhattan found Calk guilty of financial institution bribery and conspiracy. At the time, Audrey Strauss, the U.S. attorney for Manhattan, criticized Calk for using his federally backed bank as a means to "buy himself prestige and power."

In addition to his prison sentence, Calk was also given two years of supervised release, 800 hours of community service, and ordered to pay a fine of $1.25 million. His conviction and sentence were upheld by the 2nd U.S. Circuit Court of Appeals in November 2023.

In his appeal to the Supreme Court, Calk argued that his actions should not be deemed corrupt under federal anti-bribery laws because Manafort’s assistance did not constitute a tangible "thing of value" with a specific dollar amount. He claimed that the 2nd Circuit’s interpretation conflicted with rulings from four other federal appellate courts, which suggested that the term "thing of value" should not be interpreted solely based on the recipient’s subjective valuation. Calk also asserted that he could not have acted corruptly if he genuinely believed his actions were in the best interest of his bank.

The U.S. Justice Department opposed Calk’s appeal, maintaining that "anything of value" could encompass intangible benefits, and it disputed his assertion of divided appellate court opinions. Furthermore, the department stated that proving corruption did not necessitate demonstrating that Calk had intentionally breached a legal duty to his bank.

Manafort, a seasoned Republican operative, was convicted of tax evasion and bank fraud in 2018, receiving a sentence of 7.5 years in prison before being released to home confinement. He was pardoned by Trump in December 2020, shortly before the end of Trump’s presidency. As of now, Trump is the Republican candidate for the upcoming U.S. election on November 5, facing Democratic Vice President Kamala Harris.