Spooky Connections

Felix Sater

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5–8 minutes

Introduction
Felix Sater is a Russian-American real estate developer, convicted felon, and longtime covert FBI informant who occupied a unique position bridging organized crime networks, high-end real estate development, and U.S. intelligence operations. As managing director of Bayrock Group and an advisor to the Trump Organization, Sater was directly involved in high-profile Trump-branded projects such as Trump SoHo and the proposed Trump Tower Moscow. His career path put him in close proximity to Russian and Eurasian mafia syndicates, U.S. mafia families, post-Soviet oligarch capital, and politically sensitive business ventures that have been the subject of multiple criminal and civil investigations.

Key Connections and Associations

  • Criminal Allegations / Convictions: First-degree assault (1991), $40 million stock-fraud conspiracy (1998) linked to Russian Mafia securities fraud; multiple civil suits alleging fraud, money laundering, threats, and concealment of criminal background.
  • Roles / Organizations: Managing Director, Bayrock Group; Senior Advisor, Trump Organization; Advisor to Mirax Group; FBI confidential source; business intermediary in Kazakhstan-linked money laundering disputes.
  • Associated Individuals: Donald Trump, Michael Cohen, Tevfik Arif, Tamir Sapir, Mukhtar Ablyazov, Viktor Khrapunov, Semion Mogilevich, Salvatore Lauria, Gennady Klotsman.

Background

Born Felix Mikhailovich Sheferovsky in Moscow in 1966, Sater emigrated with his family to Israel and then to the United States, settling in Brighton Beach, Brooklyn. Brighton Beach was, and remains, a stronghold for Russian-speaking and Israeli organized crime, particularly factions aligned with the Mogilevich syndicate. Sater’s father, Mikhail Sheferovsky, was identified by law enforcement as an underboss in that network, which has been linked to global arms trafficking, drug smuggling, financial fraud, and large-scale money laundering.

The family changed their surname to Sater after immigrating. Felix and his sister Regina grew up in this environment, with Felix developing early business instincts and street connections. He briefly attended Pace University but left to work on Wall Street.

Crimes and Investigation

1991 Assault Conviction:
While working as a stockbroker, Sater got into an altercation in a Manhattan bar and stabbed a commodities broker in the face with a broken margarita glass. The attack required 110 stitches to the victim’s face. Sater was convicted of first-degree assault and served approximately 15 months in prison.

1998 Stock-Fraud Conspiracy:
After returning to Wall Street, Sater became involved in a pump-and-dump stock fraud operation valued at approximately $40 million. This scheme was connected to the Russian Mafia through White Rock Partners and involved associates like Salvatore Lauria and Gennady Klotsman. In 1998, Sater pled guilty to securities fraud. To avoid a lengthy prison sentence, he agreed to cooperate with the FBI and other federal agencies.

FBI Informant Role:
Over the next decade, Sater became a high-value government asset, providing intelligence on La Cosa Nostra families, Russian organized crime figures, and even terrorism suspects. He claimed to have supplied U.S. intelligence agencies with Osama bin Laden’s phone number and other actionable intelligence. Then–U.S. Attorney Loretta Lynch later defended the decision to keep Sater’s court records sealed, citing his national security contributions.

Bayrock Group and Trump SoHo

In 2003, Sater joined Bayrock Group as managing director. Bayrock, founded by former Soviet official Tevfik Arif, focused on luxury real estate development, often partnering with the Trump Organization to brand and market properties. Tamir Sapir, a Georgian-born billionaire with his own deep ties to post-Soviet elites, was also a partner in these ventures.

Trump SoHo Development:
The Trump SoHo project in Manhattan was the flagship of Bayrock’s collaboration with the Trump Organization. Media reports and lawsuits have alleged that the project was partially funded with illicit foreign capital, including investments routed through opaque shell companies linked to Russian and Central Asian business interests. Lawsuits brought by former Bayrock executive Jody Kriss alleged that Bayrock was “substantially and covertly mob-owned and operated” and accused Sater of threatening him when he raised concerns.

Sater’s criminal history and mafia ties were not disclosed to potential investors in Trump SoHo. This concealment later became a key point of contention in litigation and investigative reporting.

Kazakhstan Money-Laundering Allegations

Sater has also been named in civil litigation involving former BTA Bank chairman Mukhtar Ablyazov and former Almaty mayor Viktor Khrapunov. Both men have been accused of embezzling billions of dollars and laundering the proceeds through international real estate transactions, including Trump-branded properties in the United States.

In these cases, Sater and associated entities were accused of helping move funds through shell companies such as Triadou SPV SA, registered in Luxembourg but controlled through offshore structures. Plaintiffs allege that Sater played an intermediary role, connecting politically exposed persons with U.S. real estate opportunities that could serve as laundering vehicles.

In January 2025, Judge John Koeltl in the Southern District of New York granted Sater a new trial in one of the related money-laundering cases, a procedural decision that vacated prior rulings but did not dismiss the underlying allegations.

Trump Tower Moscow and Political Implications

In 2015 and 2016, Sater worked closely with Michael Cohen to advance a proposal for a Trump Tower Moscow. In communications revealed during the Mueller investigation, Sater boasted that he could secure Kremlin approval and that the project could help “get Donald elected” president. He suggested that Vladimir Putin’s support for the development could translate into political capital for Trump.

Although the deal never materialized, the effort took place during the U.S. presidential campaign, raising counterintelligence concerns about the intersection of business negotiations and political ambitions.

Criminal Networks and Professional Ecosystem

Russian/Eurasian Organized Crime:
Sater’s early stock fraud case was rooted in Russian Mafia operations closely aligned with the Mogilevich organization, known for its reach into banking, energy, and arms smuggling across Europe and North America.

Brighton Beach Networks:
Brighton Beach served as both a home base and recruitment hub for criminal groups who used cultural and linguistic ties to build trust in illicit ventures. Many of these contacts overlapped with Sater’s business career.

La Cosa Nostra Connections:
Through his cooperation with federal authorities, Sater provided intelligence on several American mafia families, further blurring the line between his underworld contacts and his role as an informant.

Post-Soviet Oligarch Capital:
Sater’s projects at Bayrock frequently tapped into capital from former Soviet states, often routed through offshore jurisdictions. This included Icelandic investment vehicles and Central Asian political elites accused of large-scale corruption.

Guilty Pleas and Legal Outcomes

  • 1991: Convicted of first-degree assault; served about 15 months.
  • 1998: Pled guilty to securities fraud; became a cooperating FBI source; records sealed for national security reasons.
  • 2000s–2020s Civil Litigation: Named in multiple lawsuits alleging fraud, threats, and money laundering through Trump-branded real estate; some cases dismissed, others ongoing or awaiting retrial.

Aftermath

Felix Sater has never been criminally charged in relation to his work with the Trump Organization. However, his record, combined with his role in high-profile Trump projects and his involvement in civil cases alleging international money laundering, has kept him at the center of investigative interest.

His work as an FBI informant gave him unique access to both criminal organizations and the U.S. intelligence community, enabling him to function as a fixer, dealmaker, and broker of sensitive information.

Sater’s wife, Viktoria, runs a small business, and his sister Regina keeps a low profile. Sater himself has largely stayed out of the media spotlight since the Mueller investigation, although his name continues to surface in litigation and investigative journalism. The unresolved Kazakhstan-linked cases, combined with renewed interest in Bayrock’s financing, ensure that his legal and reputational battles are far from over.

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