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The Trump Organization is set to distance itself from one of its biggest headaches in the Russia probe

In walking away from Trump SoHo, Trump will also distance himself from the controversial firm it worked with nearly a decade ago to develop the hotel: Bayrock.

  • The Trump Organization will end its contract with the real estate investment firm that owns the Trump SoHo hotel in New York, effectively ending Trump's relationship with the troubled hotel.
  • In walking away early from the deal, the Trump Organization will also distance itself from the controversial firm it worked with nearly a decade ago to develop the troubled hotel: Bayrock.
  • Bayrock and its cofounder, Felix Sater, are now under scrutiny by special counsel Robert Mueller, who is examining Trump's business dealings as part of his investigation into whether the Trump campaign colluded with Moscow during the 2016 election.

The Trump Organization will cut ties with New York's Trump SoHo Hotel after years of financial hardship and even boycotts following Donald Trump's presidential run and electoral victory in November.

In walking away early from the licensing deal it struck with the

Trump worked with Bayrock on at least four projects throughout the 2000's, including the Trump SoHo. Some of those projects ultimately failed. Bayrock was c

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A lawsuit brought in 2010 against Sater and others, which is ongoing, alleges that "for most of its existence [Bayrock] was substantially and covertly mob-owned and operated," engaging "in a pattern of continuous, related crimes, including mail, wire, and bank fraud; tax evasion; money laundering; conspiracy; bribery; extortion; and embezzlement."

The lawsuit, filed by Bayrock's former finance director, Jody Kriss, accused Sater and Bayrock's founder, Tevfik Arif, of cheating him out of millions of dollars via fraud, money laundering, and racketeering, among other misconduct. In December, a New York judge ruled that the lawsuit could move forwardas a racketeering case.

Sater and Bayrock are now under scrutiny by special counsel Robert Mueller, who is examining Trump's business dealings as part of his investigation into whether the Trump campaign colluded with Moscow during the 2016 election. Mueller is probing whether Russia ever held any financial leverage over Trump that was, or could be, used as blackmail.

According to Kriss' complaint, Sater and Arif began negotiating with the Trump Organization in 2003 to market certain projects under the Trump brand but didn't tell Trump about Sater's criminal past.

In a 2007 deposition, Trump said his organization would never have agreed to partner with Bayrock on the development of Trump SoHo had he known about Sater's past. Trump also said he would not be able to identify Sater if they were in the same room.

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But Bayrock's office was once two floors below Trump's in Trump Tower on Fifth Avenue. A person familiar with the matter, who requested anonymity for fear of retribution by Sater or his associates, told Business Insider that Sater and Trump had standing meetings each week.

Sater has said in a deposition that he met with Trump "on a constant basis," Bloombergpreviously reported, and Kriss told the publication that Trump valued Sater's loyalty — and his Russia connections.

"It's ridiculous that I wouldn't be investing in Russia," Trumpsaid in the 2007 deposition. "Russia is one of the hottest places in the world for investment."

Sater was evidently still in touch with Trump's personal lawyer, Michael Cohen, as recently as late January.

The two met at a New York hotel on January 27 to discuss a peace plan for Russia and Ukraine that was drafted by a Ukrainian politician, Andrey Artemenko. Cohen was said to have delivered the plan directly to Michael Flynn before he resigned as national security adviser on February 13, though Cohenhas disputed thatin subsequent interviews.

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Sater came back into the news over the summer when emails surfaced showing that he had been pushing

"Our boy can become president of the USA and we can engineer it," Sater wrote. "I will get Putin on this program and we will get Donald elected."

Two months later, Cohen emailed Putin's spokesman, Dmitry Peskov, asking for his "assistance" in pushing the deal through, according toemailssubmitted to congressional investigators and read to The Washington Post.

"Over the past few months I have been working with a company based in Russia regarding the development of a Trump Tower - Moscow project in Moscow City," Cohen wrote Peskov. "Without getting into lengthy specifics the communication between our two sides has stalled...As this project is too important, I am hereby requesting your assistance."

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Sater showed Ivanka Trump and her brother Donald Trump Jr. around Moscow in 2006 when their father was scouting real estate in Russia. They stayed for several days at the Hotel National Moscow opposite the Kremlin,according to The Times.

Sater also acted as a fixer to help the former Kazakh cabinet minister Viktor Khrapunov buy three apartments in Trump SoHo using shell companies, theFinancial Times reported. The Kazakh government has alleged that Khrapunov stole those funds from the state.

Khrapunov's use of shell companies to buy Trump real estate was not unique — aUSA Today investigation found that approximately70% of buyers of Trump propertiessince June 2016 werelimited-liability companies, compared with about 4% of buyers in the two years before.

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