White House senior adviser Stephen Bannon’s housing and financial arrangements are unusually complicated. Many reporters have attempted to tackle the intricate and conflicting network of connections between Bannon, the extreme-right Breitbart.com site that he used to run, far-right billionaires, a tangle of small companies and financial holdings, and President Donald Trump. USA Today’s new report on the Washington, D.C., town house near Capitol Hill known as the “Breitbart Embassy” hints at another set of potential conflicts of interest for the senior White House official.
The “Breitbart Embassy” has been a D.C. staple since Breitbart (then a fringe conservative site) began operating out of the residential property in 2011. As early as 2013, the town house was described as then-Breitbart chief Stephen Bannon’s house -- though it’s actually owned by an Egyptian businessman and politician named Moustafa El-Gindy. Until recently, there have been conflicting reports on the nature of any official relationships between Breitbart or Bannon and the actual owner of the property, including the nature of any financial or leasing agreements among the different parties.
Now that Breitbart executive Larry Solov has said Bannon “resigned” from Breitbart “via phone” (though offering no proof, yet, of this separation), USA Today’s Paul Singer investigated potential current or past conflicts of interest and legal liabilities associated with the use of the “Breitbart Embassy” property -- and his findings pose some additional conflict-of-interest questions.
Is Bannon Still Living At The “Breitbart Embassy”?
In 2014, a writer for Vice visited the house, which he later described as “a handsome living quarters for Bannon and other company brass” at Breitbart as well as a “workspace for the website's D.C. reporters.” An October 2015 profile in Bloomberg News -- which featured original quotes and photographs of Bannon in the house -- similarly described the property’s dual usage as a workspace and Bannon’s living quarters. A week after the 2016 election, The Washington Post reported that the town house “holds offices sometimes used” by Breitbart but “isn't typically the site of the media organization's day-to-day operations.” However, Bannon "would often hold team meetings around its elegant dining table” and “reportedly uses the upper levels of the four-bedroom residence as his Washington crash pad.”
In his article, Singer implied Bannon no longer lives in the home, but he couldn’t locate documentation to back up Bannon’s living situation. When he knocked on the door of the “Embassy,” a staffer for one of Bannon’s film companies who has also written for Breitbart answered.
If Bannon was previously living in the space -- which he does not own -- was he paying rent to either the owner or to Breitbart as a subletter? Did he continue to either pay rent to the media outlet or live there on the outlet’s dime after he joined the Trump campaign or even the administration? Could he still be doing so today?
Did Breitbart Lease The Residential Space For Commercial Reasons?
Though the residential property is reportedly “still the official address of Breitbart’s Washington bureau,” a Breitbart spokesperson told Singer the site was “transitioning people out of the house” and, soon, into what Singer described as “a regular office in downtown D.C.” He also noted that “the Embassy is in a residential neighborhood where it is generally not legal to run an office.” Singer also spoke with a locally elected official familiar with zoning rules, who explained what commercial uses are allowed in such a residential space and noted that Breitbart’s uses “appear to violate” the rules:
Breitbart CEO Larry Solov told the Senate press gallery that the company has a soon-to-expire lease in the building for corporate housing, offices and entertainment. But zoning rules for the block do not allow commercial leases.
“That area of Capitol Hill is zoned only for residential uses, with a very narrow set of ‘home occupation’ exceptions allowing a resident (as opposed to a rotating group of occasional visitors) to work as an in-home tailor, music tutor, doctor, or the like, or to run a small bed & breakfast,” said Mark Eckenwiler, longtime chair of the zoning committee for the local Advisory Neighborhood Commission, the city government unit for that area.
The uses Solov described to the press gallery “appear to violate the D.C. zoning regulations applicable to that location,” Eckenwiler said. Since the lease is not public, it is impossible to know whether the terms meet the neighborhoods restrictions.
Does El-Gindy Maintain Residence At The “Embassy,” In Accordance With The Tax Deduction Requirements?
As the USA Today report also notes, the Capitol Hill home is not technically Bannon’s -- it’s actually owned by an Egyptian politician and businessman named Moustafa El-Gindy. Washington, D.C.’s public records show that El-Gindy purchased the property in 2009 and appears to have been renting to Breitbart since 2011. As reported by BuzzFeed in August, El-Gindy told an Egyptian reporter he is “just a landlord” and that he rents the house because tourism has slowed in Egypt. But the article points out that El-Gindy may stay at the town house sometimes, and appears to get friendly coverage from Breitbart. He’s been quoted in Breitbart articles without any disclosure of his relationship to Bannon or the outlet at least four separate times.
The nature of any type of lease between El-Gindy and Breitbart -- or Bannon himself, for that matter -- is not clear. Singer’s investigation adds an interesting wrinkle in the story:
El-Gindy is receiving a homestead deduction on the property, a $72,000 tax credit that requires the owner to maintain residence in the building. He could not be located for comment on this story.
In Washington, D.C., individuals qualify for this tax deduction if the property is their “permanent home” or if they own the property and consider it to be their “principal residence.” The Washington, D.C., Office of Tax and Revenue website indicates that violations of this tax rule could result in the property owner owing back taxes, interest, and a penalty to the district.
There are still more questions than answers when it comes to the connections between Bannon, Breitbart, and El-Gindy -- maybe because the answers could point to questionable legal practices, tax violations, and conflicts of interest.