Tag

#financial

3 incidents

Updated May 20, 2024 Corruption & Self-Dealing
Critical Rights and Rule-of-Law Concern

New York Civil Fraud Judgment: $454 Million for Inflating Assets Over Decades

Judge Engoron found that Trump had consistently and intentionally misrepresented asset values across a decade of financial statements. His Mar-a-Lago estate was valued in financial statements at up to $739 million — despite its deed restricting it to residential use, with an estimated fair market value of $75-100 million. His Trump Tower triplex was listed at 30,000 square feet when it was actually 10,996 square feet — nearly three times its actual size. The fraud allowed Trump to obtain loans at more favorable rates than he would have received with accurate valuations.

Sources
4
fraudcivil-judgmentNew-Yorkpost-presidencyfinancial
Updated September 26, 2016 Corruption & Self-Dealing
Major Abuse of Power

Atlantic City Casinos: Six Bankruptcies, Bondholders Wiped Out, Workers Unpaid

Trump's Atlantic City casinos were overleveraged from the beginning: the Taj Mahal alone carried $675 million in junk bonds at 14% interest when it opened in 1990. When revenue fell short of the debt service requirements, bankruptcy followed. Through six rounds of bankruptcy, Trump negotiated deals that preserved his equity stake or management role while bondholders received cents on the dollar. He personally profited $82 million in salary and fees from the casinos between 1995 and 2009 while publicly traded Trump Hotels & Casino Resorts lost $1.4 billion. Trump repeatedly characterized the bankruptcies as strategic use of 'the laws of this country' and claimed he had made 'a lot of money' on Atlantic City.

Sources
3
Atlantic-Citybankruptcycasinospre-presidencyfinancial
Updated October 2, 2018 Corruption & Self-Dealing
Major Abuse of Power

Tax Fraud Investigation: Trump Helped Receive $413 Million Through Fraudulent Schemes

The Times investigation identified multiple strategies: Fred Trump created a shell company called All County Building Supply & Maintenance to collect money from Trump properties, which was then used to justify large increases in maintenance fees that were passed to Trump children as untaxed income; Fred Trump's estate was valued at far below market rates to reduce estate taxes; and the children, acting in concert, were able to receive hundreds of millions in what amounted to gifts but were legally classified in ways that minimized tax exposure. The New York Department of Taxation opened a review.

Sources
3
tax-fraudinheritanceFred-Trumppre-presidencyfinancial