Allegations Of Business Links To Organized Crime
Trump maintained a connection with organized crime members to supply the concrete for Trump Tower. According to former New York mobster Michael Franzese, “the mob controlled all the concrete business in the city of New York,” and that while Trump was not “in bed with the mob … he certainly had a deal with us. … he didn’t have a choice.”Mafia-connected union boss John Cody supplied Trump with concrete in exchange for giving his mistress a high-level apartment with a pool, which required extra structural reinforcement. Trump admitted in 2014 that he had “had no choice” but to work with “concrete guys who are mobbed up.” He further stated that “I don’t like getting close to people like that, but they respected me.”
Journalists David Cay Johnston and Wayne Barrett, the latter of whom wrote an unauthorized 1992 Trump biography, have claimed that Trump and his companies did business with New York and Philadelphia families linked to the Italian-American Mafia. A reporter for The Washington Post writes, “he was never accused of illegality, and observers of the time say that working with the mob-related figures and politicos came with the territory.”
United States 2020 Election Investigation
The Department of Justice is probing Trump’s months-long efforts to overturn the 2020 election. By March 2022, the DOJ had seated several grand juries, including one regarding the fake electors scheme, to help prosecutors decide whether to bring charges against Trump’s inner circle.
Under Attack For Bankruptcies
During the Republican primary prior to the 2016 election, Trump was not the only businessperson attempting to win the presidency, though he was certainly the one who received the most press coverage.
One of Trumpâs challengers was the former chief executive officer of Hewlett-Packard, Carly Fiorina, who used a debate performance in September 2015 to land one of the few attacks on Trump that appeared to bother him.
Discussing the issue of federal debt, Fiorina questioned if Trump was the right person to tackle the issue.
âYou ran up mountains of debt, as well as losses, using other peopleâs money, and you were forced to file for bankruptcy not once, not twice, four times.”
Trump fired back, saying it was normal for businesses to declare bankruptcy as a strategy. âI used the law four times and made a tremendous thing,â he said. âIâm in business. I did a very good job.”
After the debate, the nonpartisan PolitiFact website ran the article, âFact-checking claims about Donald Trumpâs four bankruptcies,â in which it rated Fiorinaâs statement âMostly True.â Trump had indeed declared Chapter 11 bankruptcy four times, but, the site qualified, âFiorinaâs statement doesnât tell the whole story.â
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Business Career Of Donald Trump
| This article is part of a series about |
Donald Trump is an American businessman and television personality who served as the 45th president of the United States from 2016 to 2020. He began his real estate career at his father’s company, Trump Management, which he later renamed the Trump Organization. He rose to public prominence after concluding a number of highly publicized real estate deals in Manhattan, and his company now owns and licenses his name to lodging and golf courses around the world. Trump partly or completely owned several beauty pageants between 1996 and 2015. He has marketed his name to many building projects and commercial products. Trump’s unsuccessful business ventures have included numerous casinos and hotel bankruptcies, the folding of his New Jersey Generals football team, and the now-defunct Trump University.
After being inaugurated as U.S. president in January 2017, Trump resigned all management roles within the Trump Organization, and delegated company management to his sons Donald Jr. and Eric. However, Trump retained his financial stake in the work document, leaving ongoing concerns about possible conflicts of interest.
Fourth Time’s A Charm: How Donald Trump Made Bankruptcy Work For Him
Trump Plaza, Atlantic City. Image via Flickr.
Here at FORBES, we’ve been tracking Donald Trump‘s wealth since the inaugural Forbes 400 rich list in 1982. Today, we value him at $2.7 billion, although he claims he’s worth far more. One question we’re often asked when talk turns to Trump’s fortune: how can a man who has been bankrupt so many times remain a multi-billionaire? How is he worth more now, post-bankruptcies? We spoke to bankruptcy lawyers and casino industry experts — some of whom have had firsthand involvement in Chapter 11 cases connected to Trump — in an attempt to explain how he has survived corporate bankruptcies and thrived in the aftermath.
1. It’s nothing personal…
First things first: Donald Trump has filed for corporate bankruptcy four times, in 1991, 1992, 2004 and 2009. All of these bankruptcies were connected to over-leveraged casino and hotel properties in Atlantic City, all of which are now operated under the banner of Trump Entertainment Resorts. He has never filed for personal bankruptcy — an important distinction when considering his ability to emerge relatively unscathed, at least financially.
“Corporations, limited partnerships, and LLCs in which he had an ownership interest or companies that had his name attached have filed for bankruptcy,” said Michael Viscount of Atlantic City law firm
In Presidential Bid)
2. …it’s just business.
3. It’s better than the alternative.
4. He’s leveraged his persona.
6. He’s not the one to blame.
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Donald Trump’s Companies Filed For Bankruptcy 4 Times
Trump still touts his business sense and wealth as qualifications for president.
Trump has built an American empire from Las Vegas to New York with towering hotels and sparkling casinos. Forbes estimates he’s worth $2.7 billion. But not all of Trump’s business ventures have been constant money-makers. In 1991, 1992, 2004, and again in 2009, Trump branded companies or properties have sought Chapter 11 protection.
“I’ve used the laws of this country to pare debt. … We’ll have the company. We’ll throw it into a chapter. We’ll negotiate with the banks. We’ll make a fantastic deal. You know, it’s like on ‘The Apprentice.’ It’s not personal. It’s just business,”Trump told ABC’s George Stephanopoulos last Thursday.
A business declaring bankruptcy is nothing new in corporate America, where bankruptcy is often sugar-coated as “restructuring debt.” But it might seem alarming to everyday Americans who can’t get a bank to restructure their home loans. If you want to get Donald Trump hot under the collar, accuse him of declaring bankruptcy.
Doug Heller, the executive director of Consumer Watchdog, said Trump is the “most egregious, almost comical example” of the disparity between what the average American faces when going through bankruptcy and the “ease with which the very rich can move in and out of bankruptcy.”
“I’m a much bigger businessman. I mean, my net worth is many, many, many times Mitt Romney’s,” Trump said.
Donald Trumps Business Failures Were Very Real
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Many of Donald Trumps tweets arent worth paying attention to, but on Tuesday morning he posted a pair that demanded inspection. Like many other people, me included, the President had apparently been reading a story in the Times that punctured the mythology surrounding his business career. Based on Internal Revenue Service transcripts of Trumps tax returns from 1985 to 1994, the Timesreport said that Trumps core businesses racked up losses of more than a billion dollars in a ten-year period. During 1990 and 1991, the story said, Trumps losses were so large that they were more than double those of the nearest taxpayers in the I.R.S. information for those years.
Trump could simply have ignored the report or dismissed it as old news. But, with cable-news networks featuring it prominently, and the Daily News, one of Trumps home-town papers, running the front-page headline BIGGEST LOSER, he did what he usually does and counterattacked. This is what he wrote on Twitter:
These are significant sums, certainly. But, as the Times article points out, depreciation charges arent nearly large enough to create the massive losses that Trumps businesses incurred. Some fraction of Donald Trumps losses can be attributed to depreciation, Susanne Craig, one of the authors of the Times piece, wrote in a , responding to Trump. We found most of it was just bad business.
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Construction And Property Law Matters
In 2011, Donald Trump sued Scotland, alleging that it built the Aberdeen Bay Wind Farm after assuring him it would not be built. He had recently built a golf course there and planned to build an adjacent hotel. Trump lost his suit, with the Supreme Court of the United Kingdom unanimously ruling in favor of the Scottish government in 2015.
In 2013, 87-year-old Jacqueline Goldberg unsuccessfully sued Trump on allegations that he cheated her in a condominium sale by bait-and-switch when she was purchasing properties at the Trump International Hotel and Tower.
In 2015, Trump initiated a $100 million lawsuit against Palm Beach County claiming that officials, in a “deliberate and malicious” act, pressured the FAA to direct air traffic to the Palm Beach International Airport over his estate, because he said the airplanes damaged the building and disrupted its ambiance. Trump had previously sued the county twice over airport noise the first lawsuit, in 1995, ended with an agreement between Trump and the county Trump’s second lawsuit, in 2010, was dismissed.
A Complete List Of Donald Trumps Business Disasters
As debate moderators introduce every other candidate by their political credentials , Donald Trump comes to us only as businessman. So considering its his one and only qualification for the candidacy, youd think hed be better at it.
Trumps purported lack of business acumen has been a major sticking point recently, with Marco Rubio even calling Trump out for his shoddy record: I mean this is a guy thats taken Trump airlines bankrupt, Trump vodka, nobody wanted it, Trump mortgage, was a disaster, Trump university was a fraud. Rubios rightbut hes also barely scratched the surface.
Of course, everyone is familiar with Trumps real estate failings , but its the business ventures where his recklessness really shines. The man licensed his name to hundreds of trademarks and incorporated countless businesses-to-be, but only a select few were actually led by the hand of the Donald himself.
So to commemorate our countrys imminent President Trump-wrought downfall, weve compiled every major, non-real estate-related Trump business disaster out there . Because while we aim for completeness, the man has faileda lot. If you know of anything we missed, please do let us know down below. And Donald, good luck with that wall.
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Trump Entertainment Resorts 2009
His most recent bankruptcy came in 2009, after the company missed a $53.1 million bond payment. That was pretty much the end of the road for Trump in Atlantic City. While his name remained on three casinos, he resigned from the board and gave up his remaining stake in the company.
“I had the good sense, and I’ve gotten a lot of credit in the financial pages, seven years ago I left Atlantic City before it totally cratered,” he said during the debate.
The two Atlantic City casinos that still had the Trump name filed for bankruptcy yet again in 2014. At the time Trump made sure people knew he was no longer running the company, and sued to have his name removed.
Georgia 2020 Election Investigation
Two investigations in the state of Georgia regarding phone calls that Trump made to the Georgia Secretary of State. In the call, Trump asks the Secretary of State to “find votes” to overturn the 2020 United States presidential election. These charges include Criminal Solicitation to Commit Election Fraud, Intentional Interference with Performance of Election Duties, Conspiracy to Commit Election Fraud, Criminal Solicitation, Racketeering, and a dozen other statutes.
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Other Unsuccessful Trump Business Ventures
As outlined by Rolling Stone in 2016, the Trump brand has been associated with many business duds. Over the years, Trump has attempted to expand into multiple markets, some tangentially related to real estate, most not at all.
During the 2016 election, one of the biggest stories was a lawsuit over Trump University, a for-profit real estate seminar series that purported to teach Trumpâs business techniques. Some students paid upward of US$20,000 for tuition in the pseudo-university in which Trump had essentially no role.
Despite saying he would never settle the lawsuit, shortly after winning the 2016 election, Trump did settle and agreed to pay US$25 million to former Trump University students.
Another business venture was Trump Vodka, an attempt to get into the high-dollar liquor market that completely shut down in 2011. This was an unusual endeavor because Trump has insisted throughout his career that he doesnât drink.
Other failed ventures included Trump Steaks, Trump Magazine, two nonalcoholic beverages â Trump Fire and Trump Power â and GoTrump.com, an attempt to get into the online travel booking industry .
How Much Cash Does Donald Trump Really Have
According to 2020 filings by New York Attorney General Letitia James, Trump had $93 million in liquid assets at that time. Though he wasn’t at all cash poor, he had far less money in the bank than his fellow real estate billionaires. He had exaggerated his wealth to lenders and bankers. So much for that “honesty.”Forbes also revealed that Trump’s team constantly tried to show them that he was worth a lot more. The magazine has always known it was unrealistic.
In 1982, Trump’s lawyer Roy Cohn phoned Forbes to get his client a higher spot on the Forbes 400 list of the richest Americans. “I am sitting here looking at his current bank statement. It shows he’s got more than $500 million in liquid assets, just cash.” Cohn told journalist Jonathan Greenberg who recalled the conversation to Washington Post in 2018.
Forbes also recalled that during a 1990 cover story with Trump â amid the brink of filing for bankruptcy âThe Apprentice star bragged about “never-before-seen cash flow numbers,” as soon as they entered his office. “As we enter his 26th-floor office in Manhattan’s Trump Tower, he is already on the attack: ‘I’m going to show you cash flow numbers I’ve never shown anyone before,'” wrote the magazine. “He shows us more numbers attesting to a wealth of cash and negotiable securities but folds the page so we can’t see the next column over.”
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Trump Never Loses Another Chance
Despite his many missteps, Trump has always rebounded and found new ways to pursue his interests. Trump shifted his business from developing projects to licensing and management deals after he had failed in the 1990s.
Trumps star rose to new heights when he was made a reality TV star as The Apprentice even though his casino business went bankrupt twice more. He capitalized on his fame to run for President in 2016, defeating two political dynasties, the Clinton and Bush families, on his way to becoming the White House.
Even if he loses in democrats2020 and experiences the same embarrassing setback as his hotel or casino failures, Trump will still be there. Trump has an extraordinary gift for selling that leads to more deals, sometimes with ex-partners who have reacted negatively to him but then warmed to him again.
Trump sued Deutsche Bank in 2008 to get some of his loan payments back. He was trying to sell condos in his Chicago tower. After two years of legal battles, the two sides settled, and Deutsche Bank began lending Trump money again in 2011. Trump likely hopes that 2020 voters will be equally forgiving.
Trump Contractors: ‘it Was The Beginning Of The End For Us’
Trump takes umbrage at the idea that he went bankrupt, always pointing out that he never filed personally and that he used the bankruptcy laws to get richer.
Connolly said taking his casinos into Chapter 11 was “reasonable and responsible” and the right decision for Trump and his bondholders.
“It looked like a fair deal and actually kept them going,” Connolly said.
But Mike D’Antonio, author of the book “Never Enough: Donald Trump and the Pursuit of Success,” said the bankruptcies shouldn’t come with bragging rights.
“Donald likes to say his bankruptcy filings were just a tool he’s been using for his businesses,” D’Antonio said. “He’s had a string of failures. And you’re not just talking about big investors. You’re also taking about bond holders, not big banks…people who invested their retirements.
“So, you can call it a legal tool that he’s using, but lots of people have been hurt along the way. Its been a badge of shame for him.”
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Trump Has Filed For Six Business Bankruptcies
Trump, however, filed for bankruptcy regarding these companies:
Critics cite that the Trump corporate bankruptcies are examples of his inability to manage, his recklessness, and poor business acumen. Trump answers that criticism by stating he has used federal laws to protect his business interests. This idea is an example, he says, of his business insight and outstanding intelligence. Trump stated in August 2015:
I have used the laws of this country just like the greatest people that you read about every day in business have used the laws of this country, the chapter laws, to do a great job for my company, my employees, myself and my family.
In reporting from the New York Times, in 2016, Trump put up a small amount of his own money, moved personal debts to the casinos, and was awarded millions of dollars in salary, payments, and bonuses. The Times countered by sharing that the burden of his failures fell on the investors and those who bought into his business acumen self-assessment.
Three of the casino-related bankruptcies came about during the time of the early 1990s recession and the Gulf War crisis. Both of these situations made keeping Atlantic City, New Jersey gambling facilities face some hard times. At about this same time, Trump entered into a project that involved a Manhattan hotel and two casino holding companies.
