Tom Barrack Gets More Freedom To Travel For Business While On Bail

Colony Capital director Tom Barrack
Bisnow Archive
Colony Capital Director Tom Barrack

The founder of Colony Capital can get back to traveling for business thanks to a ruling from a federal judge in the Eastern District of New York.

Tom Barrack was given a green light this week to continue his real estate work while awaiting trial for allegedly lobbying on behalf of the United Arab Emirates in dealings with U.S. officials, Bloomberg reports. Barrack, an ally and former top fundraiser of Donald Trump, was arrested in California and indicted in July on seven federal crimes for allegedly failing to disclose his lobbying activity. After spending two days in jail, Barrack was released on $250M bail and pled not guilty.

On Wednesday, U.S. District Judge Brian Cogan in Brooklyn, New York, modified Barrack's bail conditions this week to allow him to travel to visit possible development sites in the United States, Bloomberg reported. Last month, a federal judge allowed Barrack to conduct financial transactions in excess of $2M and greenlighted some limited domestic travel.

“Mr. Barrack has spent over forty years involved in real estate transactions across the world. As part of his business, he and other investors seek to acquire undermanaged, well-located assets and then set up businesses to develop and manage the underlying properties and ultimately maximize their value by instituting best-in-class management," Barrack's attorney, Daniel Petrocelli, wrote in a letter to the district judge, as reported by Bloomberg.

Authorities also alleged in the indictment that Barrack lied to federal investigators when he was interviewed in 2019 about his relationship with the United Arab Emirates. Authorities also charged former Colony Capital executive Matthew Grimes and Emirati businessman Rashid Sultan Rashid Al Malik Alshahhi in the alleged lobbying scheme.

Barrack stepped aside as CEO of Colony Capital in 2019 after the firm struck a $325M deal to buy digital infrastructure from Digital Bridge Holdings. This past March, Barrack also stepped down as Colony's executive chairman. He retains a director role with the firm.

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