Tag

#casino

5 incidents

Corruption & Self-Dealing
Major Abuse of Power

Trump Taj Mahal: $10M Money Laundering Fine — Largest in Casino History at the Time

The Bank Secrecy Act requires casinos to file Currency Transaction Reports (CTRs) for cash transactions over $10,000 and Suspicious Activity Reports (SARs) for transactions that appear to involve money laundering. FinCEN found that Trump Taj Mahal had willfully failed to file CTRs and SARs, allowed transactions structured to avoid reporting thresholds (known as structuring — itself a federal crime), and maintained an anti-money laundering program with known deficiencies for years without correction. The settlement required payment of $10 million and an admission that violations occurred. The casino had also received a previous warning from regulators in the 1990s about similar violations — meaning the failures were repeated over more than two decades.

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4
money-launderingFinCENcasinopre-presidencycorruption
Corruption & Self-Dealing
Major Abuse of Power

Trump Taj Mahal: $10 Million FinCEN Fine for Willful Anti-Money-Laundering Violations

FinCEN found that the Trump Taj Mahal had, over the course of years, failed to file Currency Transaction Reports (CTRs) on large cash transactions as required under the Bank Secrecy Act, failed to maintain adequate Suspicious Activity Report (SAR) programs, and failed to maintain basic anti-money-laundering controls. The violations were documented across thousands of transactions. FinCEN described the violations as 'willful' — meaning the casino knew what was required and did not comply. The $10 million fine was FinCEN's largest-ever against a casino; the previous Trump casinos had also faced regulatory action.

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casinomoney-launderingFinCENpre-presidencyAtlantic-City
Updated June 21, 2016 Corruption & Self-Dealing
Major Abuse of Power

Atlantic City Casino Bankruptcies: Six Failures, Contractors and Bondholders Left Unpaid

Trump's Atlantic City ventures were financed substantially through junk bonds. The Trump Taj Mahal opened in April 1990 carrying $675 million in junk bond debt at interest rates of 14 percent; by December 1990 it was behind on interest payments. The first bankruptcy followed in 1991. Trump subsequently filed bankruptcies involving his casino holdings in 1992, 2004, and 2009. In each restructuring, bondholders and creditors took substantial haircuts. Trump negotiated to retain management fees and significant equity stakes as conditions of restructuring. He ultimately sold his remaining stake in Trump Entertainment Resorts in 2009 and 2010. Trump characterized the repeated bankruptcies as smart use of the legal system; critics noted the losses were borne primarily by investors and creditors, not Trump personally.

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Atlantic-Citycasinobankruptcypre-presidencycorruption
Updated February 17, 2009 Corruption & Self-Dealing
Major Abuse of Power

Casino Bankruptcies and Junk Bond Fraud: How Trump Used Other People's Money

Trump's Atlantic City casinos — the Taj Mahal, Plaza, Castle, and related entities — were financed with junk bonds carrying interest rates of 14-17%, which were unsustainable given the revenue the casinos could generate. Trump had collected hundreds of millions in management fees, licensing fees, and development profits before the bankruptcies. When the companies collapsed, thousands of bondholders, including retirees who had purchased the high-yield bonds, received pennies on the dollar or nothing.

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bankruptcycasinoAtlantic-Cityjunk-bondspre-presidency
Updated April 1, 1997 Civil Rights
Major Abuse of Power

Documented Racial Discrimination by Trump Organization Against Employees and Tenants

John O'Donnell's 1991 memoir 'Trumped!' quoted Trump making explicitly racist remarks about a Black accountant: criticizing the employee's work and saying he preferred having 'short guys that wear yarmulkes every day' do his accounting rather than Black men. In a 1997 Playboy interview, Trump was asked about the quotes and replied the book was 'probably true' — then added that he had been 'playing golf' when he said it and denied the remarks were racist. New Jersey Casino Control Commission records documented that supervisors at Trump's Castle were instructed to remove Black dealers from tables when certain high-rolling guests requested it, a discriminatory practice that resulted in regulatory sanctions.

Sources
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racial-discriminationemploymentcasinopre-presidencycivil-rights