Updated June 1, 2012 Corruption & Self-Dealing
Major Abuse of Power
Trump SoHo: Fraud Investigation, Investor Losses, DA Charges Dropped
Trump SoHo buyers, including an investor group led by Sateesh Bhagat, discovered that marketing materials claiming 60% of units were sold were false — fewer than 15% had been sold. They sued for fraud. The Manhattan DA opened a parallel criminal investigation. In 2012, after Trump lawyers met with DA Vance, the investigation was dropped. Vance later received a $25,000 campaign contribution from Kasowitz's law firm, which he initially kept and later returned; Vance denied it influenced his decision. The Bhagat investor group settled civilly for $3.16 million. The pattern — criminal investigation followed by dropped charges after private meeting — resembled the Bondi situation in Florida.