US News

MOGUL $LAMMED

Real-estate mogul Charles Kushner diverted funds from his record-breaking sale of a Manhattan office tower to help fund his son’s newspaper, The New York Observer, a sensational lawsuit charges.

The suit was filed in New Jersey by Kevin Swill, the ex-president of the financing arm of Kushner’s company, according to The Star-Ledger of Newark.

Swill accuses the developer of using more than $5 million that was supposed to help finance his $1.8 billion purchase of 666 Fifth Ave. to help fund the financially troubled Observer, which is owned by his son Jared. Jared Kushner purchased the paper in 2006.

The suit also claims Kushner funneled at least $300,000 to Mark O’Donnell, a top political donor and live-in boyfriend of ex-New Jersey Gov. Jim McGreevey. O’Donnell now works for the elder Kushner.

Swill claims in the lawsuit, which was filed last week in Bergen County, NJ, that his former employer, Westminster Capital Associates, got an $18 million commission for the 666 sale, the Ledger said. The sale price, in 2007, was the highest ever paid for a US office tower.

The suit alleges that Charles Kushner used the commissions for the Observer and other personal expenses, the Ledger said.

Swill, who was fired by Westminster, claims he’s owed money related to the deal. The legal papers did not say why Swill believes Charles Kushner made a payment to O’Donnell, who manages a large chunk of Kushner’s fortune.

Kushner has also been a major fund-raiser for McGreevey, and in 2000,sponsored a US visa for Golan Cipel, who began a secret affair with the former governor. McGreevey resigned when the relationship became public.

Charles Kushner was convicted of tax evasion in 2004, and served a nearly two-year prison stint. Kushner family spokesman Howard Rubenstein, told The Post the allegations in the suit are “false,” describing Swill, as “a disgruntled employee.”

Rubenstein added that O’Donnell wasn’t employed by Kushner at the time he supposedly received the payments. He said Swill had offered to settle the suit, but Kushner refused.