Category: Great Buisnessman

Five Days Before Election, Another Trump Property Fails

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A Canadian judge has appointed a receiver to oversee the sale of a Toronto hotel-condo tower bearing the name of U.S. presidential candidate Donald Trump after the tower’s developer failed to make payments on its loans.

The decision brings the 65-storey Trump International Hotel & Tower, the first Trump-branded hotel in Canada, one step closer to a change of ownership after several setbacks since it opened its doors in 2012.

In his presidential campaign, Trump has emphasized his credentials as a wealthy businessman, while his political opponents have long pointed out that his career includes business failures. The Toronto project showed the limits of Trump’s brand in Canada.

The Toronto tower was developed by Talon International Inc., which licensed the Trump brand and hired a Trump-owned company to manage it.

Since its launch, less than half of its residential condos have been sold by Talon and the hotel’s occupancy rates have been lower than some investors in the rooms had hoped. The average daily rate for hotel rooms in the building has declined by about 30 per cent, court documents suggest.

Some hotel unit buyers have said they were misled into investing and have launched lawsuits against Talon, which Talon has said are without merit.

(h/t CBC News)

Lawsuit Alleges Trump Wanted to Replace Unattractive Female Employees

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Donald Trump wanted to fire female employees he considered unattractive and replace them with better-looking women at a golf resort he owned, according to court documents from a 2012 lawsuit.

As reported by the Los Angeles Times, the court documents detail a lawsuit that alleges Trump pressured employees at the Trump National Golf Club in Rancho Palos to replace those he viewed to be unattractive female employees over a number of years in the 2000s.

The report comes as Trump has faced renewed criticism that he disrespects women, a narrative fueled by his controversial remarks about a former Miss Universe that he worked with when he owned the beauty pageant. Hillary Clinton raised in Monday’s debate the fact that he called Alicia Machado “Miss Piggy” and “Miss Housekeeping” after she won his 1996 Miss Universe pageant.

Hayley Strozier, an employee at the golf club until 2008, alleged in a sworn declaration she “had witnessed Donald Trump tell managers many times while he was visiting the club that restaurant hostesses were ‘not pretty enough’ and that they should be fired and replaced with more attractive women.”

According to the LA Times report, the employees said in their lawsuit that they rotated employees schedules “so that the most attractive women were scheduled to work when Mr. Trump was scheduled to be at the club.”

The Trump Organization called the allegations “meritless.”

“We do not engage in discrimination of any kind,” said Jill Martin, vice president and assistant general counsel for The Trump Organization. “The statements made by a group of former disgruntled employees are far from an accurate portrayal of what it is like to work at Trump National Golf Club Los Angeles. Mr. Trump’s sole focus is on ensuring that the facility and operation are providing the highest level of service and an unparalleled golf experience. The only appearance Mr. Trump cares about is that of the facility and the grounds. Rather than looking to old statements from a handful of employees with an ax to grind, the media should focus on the thousands of happy employees, of all races, gender, size and shape, whose lives upon which Mr. Trump has made an incredibly positive impact.”

In the lawsuit, employees claim that Trump’s stated preferences regarding female employees caused managers to value appearance over skill when making hiring and staffing decisions. They also allege that Trump himself made inappropriate and unprofessional comments toward female employees.

The LA Times described the case as a “broad labor relations lawsuit” that is “focused on the course’s high-pressure work culture” in addition to spotlighting the revelations about Trump’s treatment of female employees.

According to the Times’ report, “the bulk of the lawsuit was settled in 2013” with a $475,000 payment to plaintiff employees without any admission of wrongdoing. Another female employee who said she was fired for complaining about the treatment of women at the golf club agreed to a separate settlement with confidential terms.

(h/t CNN)

Trump’s Companies Made $1.6 Million Off the Secret Service

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Donald Trump is making millions off his own Secret Service detail, and your tax dollars.

The Service is tasked with protecting high-ranking government officials and presidential candidates (among other duties) like Trump. Since this protection is mandatory, it’s common practice for the Service to reimburse campaigns for travel expenses. But it looks like the $1.6 million the Service recently paid the Trump campaign went right back to Trump’s business interests, according to Politico.

The business mogul and his security detail regularly fly on the Trump-owned jet service, TAG Air. The firm also manages Trump’s fleet of private planes. So the money the Service pays back goes right back to his business. Politico reviewed Federal Election Commission filings and found that TAG has already made $6 million off Trump’s campaign.

For comparison, Democratic candidate Hillary Clinton charters planes from a private company called Executive Fliteways, one where the Clintons do not have any ownership interest, Politico reported.

It’s not the only way that Trump has been profiting from his White House run.

Last week, he finally admitted President Obama was born in the United States at his hotel in Washington, D.C., earning free media coverage for what CNN’s Jake Tapper later called a “political rick roll.” Trump’s campaign has spent major sums on rent at his hotels and buying copies of his own books, too. He’s even previously stated that he may wind up actually making money from his presidential bid.

(h/t Fortune)

Reality

Donald Trump’s critics have questioned whether the Republican nominee, who points to his business acumen as a case for his candidacy, is trying to do what he has suggested he would in 2000 when he mulled making an independent run: “It’s very possible that I could be the first presidential candidate to run and make money on it.”

Trump Overseas Business Conflicts ‘Can’t be Unwound’

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The author of a new report that alleges Donald Trump’s businesses overseas have conflicts with America’s interests said Wednesday that the Republican presidential nominee “makes money by aiding the people whose interests don’t coincide with America’s.”

“The interests of these businesses, the interests of these politicians, often go directly against the interests of American national security. So right now you have Donald Trump in a situation where he makes money by aiding the people whose interests don’t coincide with America’s,” Newsweek senior writer Kurt Eichenwald told CNN’s Chris Cuomo and Alisyn Camerota on “New Day,” adding later, “The important thing here is this is an entanglement that can’t be unwound.”

The Newsweek report raised a series of questions about how Trump would handle the countless conflicts of interests inherent in his overseas business interests.

Trump has said he plans to entrust his business to his children if he is elected president, a move that would only partially distance Trump from his massive corporation and do little to quell questions about influence-peddling and conflicts of interest.

“From what I’m hearing, Trump is planning to say that he will put the company in a blind trust — which is sort of like saying ‘I have 100 million shares of Apple stock and I’m going to put it in a blind trust,'” Eichenwald said. “He would know what’s there, he knows who his partners are and he knows, you know, he will know going forward.”

“Now, in the future, you’re talking about giving money to either the family of the President of the United States or money that will go to the President of the United States if his company is in this, you know, blind trust.”

CNN has reached out to the Trump campaign for comment on the report and has not yet received a response.

Ivanka Trump also discussed the future of the Trump business empire if her father wins the presidency during an interview on “CBS This Morning” on Wednesday. Asked what the family would do to prevent potential conflicts of interest, she said that “as a private business, we can make decisions that are not in our best interest.”

“There’s something so much bigger than our business at stake, and that’s the future of this country,” she said. “We can say, you know what, we’ll do less deals, and not going to do that deal even though it’s a fine deal and economically reasonable because it could create a conflict of interest. And we’ll act incredibly responsibly, and my father already said he would put it into a blind trust and it would be run by us.”

The report outlines a series of potential conflicts of interests, from Trump’s dealings with businessmen who have been the subject of government investigations in India and Turkey to his ties to powerful Russian oligarchs.

On “New Day,” Eichenwald explained why Turkey would be problematic for the Republican nominee. He said that a failed business deal between Trump and a politically-connected organzation in the country had created potential tension between Trump and the President Recep Erdogan, who had called the deal a “mistake.”

“What I am being told is that Turkey’s cooperation with the United States, in terms of providing an air base where we are able to launch bombers against ISIS would be at risk if Donald Trump was president,” he said.

And where Trump has suggested significant changes to US foreign policy, the Newsweek report magnified some of Trump’s business dealings.

Trump, who has floated the idea of Japan and South Korea obtaining nuclear weapons, maintains an ongoing business relationship with Daewoo Engineering and Construction, according to Newsweek. Daewoo is one of the top South Korean companies involved in nuclear energy projects.

In India, Newsweek raised questions about Trump’s ties to powerful businessmen and political parties in the country, particularly in light of promises from Trump’s son, Donald Trump Jr., to build “a very aggressive pipeline” there with “exciting new projects” to come.

“If he plays tough with India, will the government assume it has to clear the way for projects in that ‘aggressive pipeline’ and kill the investigations involving Trump’s (Indian business) partners? And if Trump takes a hard line with Pakistan, will it be for America’s strategic interests or to appease Indian government officials who might jeopardize his profits from Trump Towers Pune?” Eichenwald wrote.

Eichenwald also discussed potentially problematic connections between Trump and Russian oligarchs under the political umbrella of Russian President Vladimir Putin.

One such connection comes from a deal in which the GOP nominee attempted to license the Trump name to an organization in Russia. Eichenwald said that “the head of that organization, who, again, very politically connected, very tied in to the Putin government, backed away from the deal because Trump wanted too much money.”

Trump would undoubtedly have the most expansive and complex international business portfolio of any president in US history, which would bring an added layer of scrutiny to nearly every foreign policy decision Trump would make as president.

Hillary Clinton’s presidential campaign sought to jump on the story Wednesday by tweeting 20 questions that they would like Trump to answer about Eichenwald’s report.

“Will you sever ties with your company linked to foreign leaders, questionable organizations, and criminals if you become president,” read the first.

The questions also hit Trump for not releasing his tax returns, his business connections and his ability to separate his responsibilities as president with his businesses ventures.

“How can we be sure you’d be willing to be tough on any nation if necessary, if it would put your interests and profits at risk?” asked another question.

(h/t CNN)

Reality

A close examination by Newsweek of the Trump Organization revealed a web of contractual entanglements that could not be just canceled. If Trump moves into the White House and his family continues to receive any benefit from the company, during or even after his presidency, almost every foreign policy decision he makes will raise serious conflicts of interest and ethical quagmires.

In short, because Donald J. Trump would hand over the control of his company that rakes in millions to his children, even with a blind trust as he promised, any policy decision that he would make he would already be aware of any negative or positive impact on his children and their company.

Some of his children are even acting as advisors to his campaign and have helped to write policy proposals, which as they mentioned during the RNC, they plan on continuing in this capacity during Trump’s presidency. This will unquestionably effect their decision-making as the head of a multi-million dollar company, that can skew policy to help their bottom line.

This level of conflict of interest would be undoubtedly seen as a vulnerability by foreign governments who could use the Trump Organization’s interests as leverage in their foreign policies or negotiations with the United States.

Some, but not all, of these concerns could be assuaged if Donald Trump would simply release his tax returns. But to be truly clear of any conflict of interest, as he once suggested of the Clinton Foundation, the Trump Organization should be shut down immediately, contracts canceled, and money returned back to their owners.

It is a long read, but to fully understand the massive scope of this damaging issue, one must read in its entirety.

 

Ivanka Trump Lies About Trump Organization’s Paid Parental Leave

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In an apparent contradiction to what Ivanka Trump said on “Good Morning America” yesterday, the Trump Organization has suggested that not all of its employees are eligible to receive eight weeks of paid maternity and adoption leave.

Deirdre Rosen, the senior vice president of human resources for the Trump Organization, told ABC News that the Trump Organization does offer a an eight-week paid parental leave policy, but said that may not be the case at the various properties that comprise GOP presidential nominee Donald Trump’s sprawling empire.

“The Trump Organization is proud of the family friendly environment it fosters throughout its portfolio. The Trump Organization, along with the lifestyle brand, Ivanka Trump, a company separate from the Trump Organization, wholly owned by Ivanka Trump, both offer an industry leading eight-week paid parental leave policy,” Rosen said in a statement. “The policies and practices allowing employees to enjoy a healthy work-life balance vary from property to property. We take an individualized approach to helping employees manage family and work responsibilities.”

During an interview Wednesday on “Good Morning America,” Ivanka Trump told ABC News anchor Amy Robach that all of Trump’s employees are offered paid maternity leave and adoption leave.

Robach asked if the benefit is applicable to all Trump Organization workers. Ivanka Trump responded: “It is and also adoption leave.”

The Trump Organization declined to release copies of its employee handbooks to ABC News, saying “the organization is a private business and will not be providing their handbooks which are considered proprietary.”

ABC News has asked the company to provide the sections in the employee handbook outlining the Trump Organization and Ivanka Trump’s family leave policies. The company has not yet responded to that request.

The Trump Organization also declined to elaborate on which employees are eligible for the eight-week paid parental leave.

The Trump campaign told ABC News this afternoon that the statement from Trump’s company “needs no further comment.”

Here is the full exchange between Robach and Ivanka Trump:

ROBACH: You’re an executive vice president at the Trump Organization. You said last night that the Trump Organization headed by your father does offer paid maternity leave for its employees. Is that for all of the thousands of employees of your father?

IVANKA TRUMP: It is and also adoption leave. So it’s a great thing and at my own business since inception I’ve offered eight weeks paid leave, only 10 percent of American companies offer that benefit, so it is quite unique and this policy is to encourage more companies and to encourage all Americans to be able to get the benefit of it should they be new mothers because it’s so critical and important.

(h/t ABC News)

Reality

If it does offer parental leave, that’s news to employees at many of the Trump Organization’s hotels.

The Huffington Post on Wednesday morning checked the validity of Ivanka Trump’s comments to ABC. Employees at the Trump SoHo, New York and Miami hotels, as well as the Mar-a-Lago Club in Florida, all said that they do not offer workers paid maternity leave. Instead, they said that the company complied with the Family and Medical Leave Act, a federal law that requires companies to give employees up to 12 weeks of unpaid time off for the adoption or birth of a child.

An undated employee handbook for the Trump International Hotel Las Vegas, obtained by HuffPost, states that workers there are entitled to unpaid family leave, in accordance with the FMLA. The manual notes that employees must “substitute their earned and unused vacation days and personal days for any otherwise unpaid FMLA leave.” That is, if employees want paid maternity or paternity leave, they have to use other paid time off that they’ve banked.

Media

Good Morning America via Yahoo News

Donald Trump Jacked Up His Campaign’s Trump Tower Rent Once Somebody Else Was Paying It

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Donald Trump’s campaign is defending its reasoning for more than quadrupling what it pays to rent office space in the Republican presidential nominee’s namesake tower, saying the higher rent comes from occupying more space.

Federal Election Commission filings show that the Republican nominee’s campaign paid $169,758 in rent last month for space at the Manhattan skyscraper — a dramatic jump of 5 times the amount from March, when the campaign paid Trump Tower LLC only $35,458 in rent.

The spike in rent, which was first reported by The Huffington Post, is a result of the campaign adding two more levels to its existing space, the campaign said Tuesday.

“We calculated the rent based on the average rent per square foot in the area,” the campaign said in a statement provided to CNN.

“Overall, we still pay over $40,000 less in rent than the Clinton campaign,” the statement added. “Also, Mr. Trump makes a personal contribution of $2 million per month to the campaign, obviously a much higher amount than rent.”

Clinton’s campaign is paying about $212,000 a month, according to the Huffington Post, in rent for its 80,000 square feet of office space in Brooklyn.

Steven Cheung, Trump’s director of rapid response, also told the Associated Press the “expansion is in anticipation of more staff.”

However the Trump campaign has not expanded, in March the campaign had 197 paid employees and consultants, while in July it paid 172 employees and consultants.

“If I was a donor, I’d want answers,” said a prominent Republican National Committee member who supports Trump, asking for anonymity to speak freely. “If they don’t have any more staff, and they’re paying five times more? That’s the kind of stuff I’d read and try to make an (attack) ad out of it.”

Indeed, Hillary Clinton’s campaign pounced on the reports of larger rent payments. Democratic vice presidential nominee Tim Kaine said Tuesday that Trump “has highly unusual expenditures, even in this campaign.”

The 172 employees paid by the Trump campaign last month is dwarfed by the more than 700 paid staff on Clinton’s campaign.

“So, as an example, Donald Trump is renting space in one of his buildings to his campaign and the campaign is paying Donald Trump personally for the space,” Kaine said during a roundtable in Lakewood, Colorado. “Once he started to fundraise dramatically, he was self-funding for a while, but once he started to fundraise dramatically, he immediately tripled the rent payment that his campaign donors were paying him personally.”

It isn’t the first time that Trump’s campaign has appeared to be working in concert with his business interests. Federal records have shown that Trump had directed almost a fifth of his campaign cash to companies to which he is linked.

(h/t CNN, Huffington Post)

Reality

While we must stress that there is no direct evidence that Donald Trump is purposefully lining his pockets with the money from donors, but the timing of raising his rent 5 times (that he pays to himself) as soon as he begins accepting external donations while having no good explanation does raise major questions.

However it is important to remember Trump has suggested in 2000 when he mulled making an independent run: “It’s very possible that I could be the first presidential candidate to run and make money on it.”

Historically, candidates would separate themselves from their business interests when running for office. Trump has done the opposite by promoting his businesses while running for office.

Trump Campaign “Confirm” a Gulf War Marine Rescue From Trump That Never Happened

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In a May post on his website, Fox News personality Sean Hannity falsely claimed that in 1991 now-GOP presidential nominee Donald Trump sent his private jet to retrieve 200 “stranded” Gulf War veterans from Camp Lejeune in Jacksonville, North Carolina.

According to the erroneous report — which the Trump campaign said they confirmed to be true — “Mr. Trump did indeed send his plane to make two trips from North Carolina to Miami, Florida to transport over 200 Gulf War Marines back home.”

The Hannity story mostly relied on the recollections of a single source, of Cpl. Ryan Stickney, who was a squad leader in a Marine Corps Reserve antitank (TOW) company that was called up for duty for the 1990-91 conflict that took place after Iraq invaded Kuwait. Cpl. Stickney told his story at a Trump rally in June.

Snopes.com and Washington Post looked deeper into the anecdote and found that the plane — though it bore Trump’s name, as does his private jet — was actually one of a Trump Shuttle fleet of planes from his short-lived airline and not his personal plane as the Trump campaign “confirmed.”

Trump Shuttle was an airline that Trump briefly owned before it was essentially seized by the banks because he failed to make payments on his loans.

But this is where Sean Hannity’s and the Trump campaign’s story starts to break down. Trump’s personal plane only holds 24 passengers, not anywhere near the space required for 200 Marines. Also the Boeing 727s, which do have the appropriate seating capacity, flown by Trump Airlines had a white fuselage while Trump’s personal plane from 1991 was blue and had different markings.

A picture of Trump’s plane from 1991

And finally, Donald Trump made a terrible deal when he purchased Eastern Air Shuttle and re-branded it as Trump Shuttle. Timing is everything in business, and unfortunately for Trump he entered the airline game at the wrong time. So in September 1990, Trump defaulted on the loan and the banks took over Trump Shuttle. The banks searched far and wide for a buyer before they reached a long-term agreement with US Air to manage the airline until 1996, and then to buy it.” So by April 1991, Donald Trump no longer even controlled the planes that flew with his name on them.

Even veterans who were there and in the know rebuked the Trump campaign’s claim.

Lt. Gen. Vernon J. Kondra, now retired, was in charge of all military airlift operations. He said that relying on commercial carriers freed up the military cargo aircraft for equipment transport. But Kondra said the notion that Trump personally arranged to help the stranded soldiers made little sense. “I certainly was not aware of that. It does not sound reasonable that it would happen like that. It would not fit in with how we did business,” he told The Washington Post. “I don’t even know of how he would have known there was a need.”

(h/t Salon, Washington Post, Snopes)

Reality

During this election cycle, Hannity has: peddled a moot voter fraud theory to support Trump’s claim that the election is rigged; launched an investigation into the Gold Star Khan parents, whose political agenda he said made them unfairly target Trump; and claimed “nothing” Trump’s “said is racist.”

20% of Donald Trump’s Campaign Spending Goes to Himself

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Donald Trump’s campaign is almost broke, and is paying an unusual amount of money to Trump-owned businesses. That’s according to the presumptive Republican presidential nominee’s FEC filing, details of which were released Monday night.

The report provided a number of rather shocking facts, including that his campaign raised just $3.1 million in May compared to Democratic rival Hillary Clinton’s $27 million.

In comparison, Mitt Romney’s campaign raised $86.5 million in May during the 2012 presidential race. And on Monday night alone, Clinton raised about $1.6 million at a celebrity-studded fundraiser in New York City.

Another eyebrow-raising tidbit: Of the $6.7 million the Trump campaign spent in May, nearly 20% went to Trump-owned businesses or family members.

Furthermore, the filing suggests that Trump himself is drawing a salary from the campaign, which would be highly unusual.

The campaign also spent $208,000 on hats.

If Trump’s fund-raisers want to feel even worse, their haul was far less than a 2013 Kickstarter campaign to fund a “Veronica Mars” movie, as well as a recent Kickstarter campaign to fund “Reading Rainbow.”

And in a way, Buzzfeed’s widely publicized refusal earlier this month to accept Trump ads may have benefited the candidate: The original ad buy was for $1.3 million, exactly the amount the Trump campaign has left in the bank, according to the FEC report.

(h/t Market Watch)

Reality

According to The New York Times the spending raised eyebrows among campaign finance experts and some of Mr. Trump’s critics who have questioned whether the presumptive Republican nominee, who points to his business acumen as a case for his candidacy, is trying to do what he has suggested he would in 2000 when he mulled making an independent run: “It’s very possible that I could be the first presidential candidate to run and make money on it.”

“He could end up turning a profit if he repaid himself for the campaign loans,” said Paul S. Ryan, a campaign finance expert with the Campaign Legal Center. “He could get all his money back plus the profit margin for what his campaign has paid himself for goods and services.”

“We don’t have clear answers,” Mr. Ryan said. “Historically, candidates would separate themselves from their business interests when running for office. Trump has done the opposite by promoting his businesses while running for office.”

 

 

Hundreds Allege Donald Trump Doesn’t Pay His Bills

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USA TODAY – During the Atlantic City casino boom in the 1980s, Philadelphia cabinet-builder Edward Friel Jr. landed a $400,000 contract to build the bases for slot machines, registration desks, bars and other cabinets at Harrah’s at Trump Plaza.

The family cabinetry business, founded in the 1940s by Edward’s father, finished its work in 1984 and submitted its final bill to the general contractor for the Trump Organization, the resort’s builder.

Edward’s son, Paul, who was the firm’s accountant, still remembers the amount of that bill more than 30 years later: $83,600. The reason: the money never came. “That began the demise of the Edward J. Friel Company… which has been around since my grandfather,” he said.

Donald Trump often portrays himself as a savior of the working class who will “protect your job.” But a USA TODAY NETWORK analysis found he has been involved in more than 3,500 lawsuits over the past three decades — and a large number of those involve ordinary Americans, like the Friels, who say Trump or his companies have refused to pay them.

At least 60 lawsuits, along with hundreds of liens, judgments, and other government filings reviewed by the USA TODAY NETWORK, document people who have accused Trump and his businesses of failing to pay them for their work. Among them: a dishwasher in Florida. A glass company in New Jersey. A carpet company. A plumber. Painters. Forty-eight waiters. Dozens of bartenders and other hourly workers at his resorts and clubs, coast to coast. Real estate brokers who sold his properties. And, ironically, several law firms that once represented him in these suits and others.

Trump’s companies have also been cited for 24 violations of the Fair Labor Standards Act since 2005 for failing to pay overtime or minimum wage, according to U.S. Department of Labor data. That includes 21 citations against the defunct Trump Plaza in Atlantic City and three against the also out-of-business Trump Mortgage LLC in New York. Both cases were resolved by the companies agreeing to pay back wages.

In addition to the lawsuits, the review found more than 200 mechanic’s liens — filed by contractors and employees against Trump, his companies or his properties claiming they were owed money for their work — since the 1980s. The liens range from a $75,000 claim by a Plainview, N.Y., air conditioning and heating company to a $1 million claim from the president of a New York City real estate banking firm. On just one project, Trump’s Taj Mahal casino in Atlantic City, records released by the New Jersey Casino Control Commission in 1990 show that at least 253 subcontractors weren’t paid in full or on time, including workers who installed walls, chandeliers and plumbing.

The actions in total paint a portrait of Trump’s sprawling organization frequently failing to pay small businesses and individuals, then sometimes tying them up in court and other negotiations for years. In some cases, the Trump teams financially overpower and outlast much smaller opponents, draining their resources. Some just give up the fight, or settle for less; some have ended up in bankruptcy or out of business altogether.

Trump and his daughter Ivanka, in an interview with USA TODAY, shrugged off the lawsuits and other claims of non-payment. If a company or worker he hires isn’t paid fully, the Trumps said, it’s because The Trump Organization was unhappy with the work.

“Let’s say that they do a job that’s not good, or a job that they didn’t finish, or a job that was way late. I’ll deduct from their contract, absolutely,” Trump said. “That’s what the country should be doing.”

‘VISIBLY WINCED’

To be sure, Trump and his companies have prevailed in many legal disputes over missing payments, or reached settlements that cloud the terms reached by the parties.

However, the consistent circumstances laid out in those lawsuits and other non-payment claims raise questions about Trump’s judgment as a businessman, and as a potential commander in chief. The number of companies and others alleging he hasn’t paid suggests that either his companies have a poor track record hiring workers and assessing contractors, or that Trump businesses renege on contracts, refuse to pay, or consistently attempt to change payment terms after work is complete as is alleged in dozens of court cases.

In the interview, Trump repeatedly said the cases were “a long time ago.” However, even as he campaigns for the presidency, new cases are continuing. Just last month, Trump Miami Resort Management LLC settled with 48 servers at his Miami golf resort over failing to pay overtime for a special event. The settlements averaged about $800 for each worker and as high as $3,000 for one, according to court records. Some workers put in 20-hour days over the 10-day Passover event at Trump National Doral Miami, the lawsuit contends. Trump’s team initially argued a contractor hired the workers, and he wasn’t responsible, and counter-sued the contractor demanding payment.

“Trump could have settled it right off the bat, but they wanted to fight it out, that’s their M.O.” said Rod Hannah, of Plantation, Fla., the lawyer who represented the workers, who he said are forbidden from talking about the case in public. “They’re known for their aggressiveness, and if you have the money, why not?”

Similar cases have cropped up with Trump’s facilities in California and New York, where hourly workers, bartenders and wait staff have sued with a range of allegations from not letting workers take breaks to not passing along tips to servers. Trump’s company settled the California case, and the New York case is pending.

Trump’s Doral golf resort also has been embroiled in recent non-payment claims by two different paint firms, with one case settled and the other pending. Last month, his company’s refusal to pay one Florida painter more than $30,000 for work at Doral led the judge in the case to order foreclosure of the resort if the contractor isn’t paid.

Juan Carlos Enriquez, owner of The Paint Spot, in South Florida, has been waiting more than two years to get paid for his work at the Doral. The Paint Spot first filed a lien against Trump’s course, then filed a lawsuit asking a Florida judge to intervene.

In courtroom testimony, the manager of the general contractor for the Doral renovation admitted that a decision was made not to pay The Paint Spot because Trump “already paid enough.” As the construction manager spoke, “Trump’s trial attorneys visibly winced, began breathing heavily, and attempted to make eye contact” with the witness, the judge noted in his ruling.

That, and other evidence, convinced the judge The Paint Spot’s claim was credible. He ordered last month that the Doral resort be foreclosed on, sold, and the proceeds used to pay Enriquez the money he was owed. Trump’s attorneys have since filed a motion to delay the sale, and the contest continues.

Enriquez still hasn’t been paid.

Unpaid hourly workers

Trump frequently boasts that he will bring jobs back to America, including Tuesday in a primary-election night victory speech at his golf club in suburban New York City. “No matter who you are, we’re going to protect your job,” Trump said Tuesday. “Because let me tell you, our jobs are being stripped from our country like we’re babies.”

But the lawsuits show Trump’s organization wages Goliath vs David legal battles over small amounts of money that are negligible to the billionaire and his executives — but devastating to his much-smaller foes.

In 2007, for instance, dishwasher Guy Dorcinvil filed a federal lawsuit against Trump’s Mar-a-Lago Club resort in Palm Beach, Fla., alleging the club failed to pay time-and-a-half for overtime he worked over three years and the company failed to keep proper time records for employees.

Mar-a-Lago LLC agreed to pay Dorcinvil $7,500 to settle the case in 2008. The terms of the settlement agreement includes a standard statement that Mar-a-Lago does not admit fault and forbids Dorcinvil or his lawyers from talking about the case, according to court records.

Developers with histories of not paying contractors are a very small minority of the industry, said Colette Nelson, chief advocacy officer of the American Subcontractors Association. But late or missing payments can be devastating for small businesses and their employees.

“Real estate is a tough and aggressive business, but most business people don’t set out to make their money by breaking the companies that they do business with,” she said, stressing she couldn’t speak directly to the specifics of cases in Trump’s record. “But there are a few.”

In the interview, Trump said that complaints represent a tiny fraction of his business empire and dealings with contractors and employees, insisting all are paid fairly. “We pay everybody what they’re supposed to be paid, and we pay everybody on time,” he said. “And we employ thousands and thousands of people. OK?”

The slot-machine cabinets

Despite the Trumps’ assertion that their companies only refuse payment to contractors “when somebody does a bad job,” he has sometimes offered to hire those same contractors again. It’s a puzzling turn of events, since most people who have a poor experience with a contractor, and who refuse to pay and even fight the contractor in court, aren’t likely to offer to rehire them.

Nevertheless, such was the case for the Friels. After submitting the final bill for the Plaza casino cabinet-building in 1984, Paul Friel said he got a call asking that his father, Edward, come to the Trump family’s offices at the casino for a meeting. There Edward, and some other contractors, were called in one by one to meet with Donald Trump and his brother, Robert Trump.

“He sat in a room with nine guys,” Paul Friel said. “We found out some of them were carpet guys. Some of them were glass guys. Plumbers. You name it.”

In the meeting, Donald Trump told his father that the company’s work was inferior, Friel said, even though the general contractor on the casino had approved it. The bottom line, Trump told Edward Friel, was the company wouldn’t get the final payment. Then, Friel said Trump added something that struck the family as bizarre. Trump told his dad that he could work on other Trump projects in the future.

“Wait a minute,” Paul Friel said, recalling his family’s reaction to his dad’s account of the meeting. “Why would the Trump family want a company who they say their work is inferior to work for them in the future?”

Asked about the meeting this week, Trump said, “Was the work bad? Was it bad work?” And, then, after being told that the general contractor had approved it, Trump added, “Well, see here’s the thing. You’re talking about, what, 30 years ago?”

Ivanka Trump added that any number of disputes over late or deficient payments that were found over the past few decades pale in comparison to the thousands of checks Trump companies cut each month.

“We have hundreds of millions of dollars of construction projects underway. And we have, for the most part, exceptional contractors on them who get paid, and get paid quickly,” she said, adding that she doubted any contractor complaining in court or in the press would admit they delivered substandard work. “But it would be irresponsible if my father paid contractors who did lousy work. And he doesn’t do that.”

But, the Friels’ story is similar to experiences of hundreds of other contractors over the casino-boom decade in Atlantic City. Legal records, New Jersey Casino Control Commission records and contemporaneous local newspaper stories recounted time and again tales about the Trumps paying late or renegotiating deals for dimes on the dollar.

A half-decade after the Friels’ encounter, in 1990, as Trump neared the opening of his third Atlantic City casino, he was once again attempting to pay contractors less than he owed. In casino commission records of an audit, it was revealed that Trump’s companies owed a total of $69.5 million to 253 subcontractors on the Taj Mahal project. Some already had sued Trump, the state audit said; others were negotiating with Trump to try to recover what they could. The companies and their hundreds of workers had installed walls, chandeliers, plumbing, lighting and even the casino’s trademark minarets.

One of the builders was Marty Rosenberg, vice president of Atlantic Plate Glass Co., who said he was owed about $1.5 million for work at the Taj Mahal. When it became clear Trump was not going to pay in full, Rosenberg took on an informal leadership role, representing about 100 to 150 contractors in negotiations with Trump.

Rosenberg’s mission: with Trump offering as little as 30 cents on the dollar to some of the contractors, Rosenberg wanted to get as much as he could for the small businesses, most staffed by younger tradesmen with modest incomes and often families to support.

“Yes, there were a lot of other companies,” he said of those Trump left waiting to get paid. “Yes, some did not survive.”

Rosenberg said his company was among the lucky ones. He had to delay paying his own suppliers to the project. The negotiations led to him eventually getting about 70 cents on the dollar for his work, and he was able to pay all of his suppliers in full.

Unpaid based on ‘whimsy’

The analysis of Trump lawsuits also found that professionals, such as real estate agents and lawyers, say he’s refused to pay them sizable sums of money. Those cases show that even some loyal employees, those selling his properties and fighting for him in court, are only with him until they’re not.

Real estate broker Rana Williams, who said she had sold hundreds of millions of dollars in Manhattan property for Trump International Realty over more than two decades with the company, sued in 2013 alleging Trump shorted her $735,212 in commissions on deals she brokered from 2009 to 2012. Williams, who managed as many as 16 other sales agents for Trump, said the tycoon and his senior deputies decided to pay her less than her contracted commission rate “based on nothing more than whimsy.”

Trump and Williams settled their case in 2015, and the terms of the deal are confidential, as is the case in dozens of other settlements between plaintiffs and Trump companies.

However, Williams’ 2014 deposition in the case is not sealed. In her sworn testimony, Williams said the 2013 commission shortage wasn’t the only one, and neither was she the only person who didn’t get fully paid. “There were instances where a sizable commission would come in and we would be waiting for payment and it wouldn’t come,” she testified. “That was both for myself and for some of the agents.”

Another broker, Jennifer McGovern, filed a similar lawsuit against the now-defunct Trump Mortgage LLC in 2007, citing a six-figure commission on real-estate sales that she said went unpaid. A judge issued a judgment ordering Trump Mortgage to pay McGovern $298,274.

Turning the tables on lawyers

Even Trump’s own attorneys, on several occasions, sued him over claims of unpaid bills.

One law firm that fought contractors over payments and other issues for Trump — New York City’s Morrison Cohen LLP — ended up on the other side of a similar battle with the mogul in 2008. Trump didn’t like that its lawyers were using his name in press releases touting its representation of Trump in a lawsuit against a construction contractor that Trump claimed overcharged him for work on a luxury golf club.

As Trump now turned his ire on his former lawyers, however, Morrison Cohen counter-sued. In court records, the law firm alleged Trump didn’t pay nearly a half million dollars in legal fees. Trump and his ex-lawyers settled their disputes out of court, confidentially, in 2009.

In 2012, Virginia-based law firm Cook, Heyward, Lee, Hopper & Feehan filed a lawsuit against the Trump Organization for $94,511 for legal fees and costs. The case was eventually settled out of court. But as the case unfolded, court records detail how Trump’s senior deputies attacked the attorneys’ quality of work in the local and trade press, leading the firm to make claims of defamation that a judge ultimately rejected on free speech grounds.

‘Tons of these stories out there’

Trump claims in his presidential personal financial disclosure to be worth $10 billion as a result of his business acumen. Many of the small contractors and individuals who weren’t paid by him haven’t been as fortunate.

Edward Friel, of the Philadelphia cabinetry company allegedly shortchanged for the casino work, hired a lawyer to sue for the money, said his son, Paul Friel. But the attorney advised him that the Trumps would drag the case out in court and legal fees would exceed what they’d recover.

The unpaid bill took a huge chunk out of the bottom line of the company that Edward ran to take care of his wife and five kids. “The worst part wasn’t dealing with the Trumps,” Paul Friel said. After standing up to Trump, Friel said the family struggled to get other casino work in Atlantic City. “There’s tons of these stories out there,” he said.

The Edward J. Friel Co. filed for bankruptcy on Oct. 5, 1989.

Says the founder’s grandson: “Trump hits everybody.”

Links

USA Today article

 

 

 

Trump Campaign Releases a Video Defending Trump University… That is Itself a Scam

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Former students put forward by Donald Trump’s campaign to help deflect criticism of his defunct real estate seminars have business ties to the presumptive Republican presidential nominee.

The campaign posted a web video Wednesday defending Trump University after a federal judge unsealed documents in a long-running lawsuit filed by ex-students who claim they were fleeced. The seminars ended in 2011 amid a flurry of complaints and state fraud investigations.

“The students on this video are representative of the many students who were overwhelmingly satisfied with Trump University,” the campaign said. “Rather than listen to the media spin, listen to the hard-working students who can attest first-hand to the truth about Trump University.”

(h/t Fortune, Red State)

Reality

As we detailed before, Trump University was a massive scam.

This video features three people – none of whom have ever bought or sold real estate for a living. One of them appears to be a professional testimonial-giver for seminars, one appears to give these kinds of seminars for himself, and one of them has an ongoing business and personal relationship with the Trump family, who have allowed him to sell his protein water on a number of their properties.

These are the three people they found, out of the 40,000 people who (allegedly) came through Trump University who could talk about their great experiences.

Notably, not one of these people is currently in the business of buying or selling real estate, or can offer any proof that Trump University made them successful in this endeavor, which is what it was designed to do.

Contrast this with the thousands involved in class-action lawsuits against the now-defunct university.

Michelle Gunn

The first woman featured in the video, one Michelle Gunn, appears to be a professional testimonial giver for these self-help workshop scams:

Not mentioned by the campaign is that the celebrity billionaire previously endorsed a self-help book authored by Gunn’s teenage son, titled “Schooled for Success: How I Plan to Graduate from High School a Millionaire.” A website promoting the book also features a photo of a smiling Houston Gunn posing with Trump in what appears to be the then reality TV star’s Trump Tower office.

Casey Hoban

Casey Hoban, a Connecticut bottled-water entrepreneur who said he earned “incalculable” profits on real estate deals after attending one of Trump’s two-day courses about a decade ago.

Not disclosed by the campaign is that Hoban is also a Trump family acquaintance whose protein-infused water is stocked at some of Trump’s golf courses, restaurants and resorts.

Hoban told The Associated Press that his business relationship with the Trump organization bloomed after he attended a charity event held last year held by a Trump family foundation. Trump’s son Eric Trump later tweeted Hoban a personal thank you for his $25,000 donation.

That largesse led to an invitation for Hoban and his family to visit Trump Tower last year for a personal tour of campaign headquarters, where they posed smiling for a photo holding Trump for President placards.

Hoban told the AP that he had only met the Trumps a couple of times and that his budding business relationship with the Trump empire had nothing to do with his offer to the campaign to issue a public endorsement of Trump U.

“Absolutely not, from the bottom of my heart,” Hoban said. “I offered to support Trump University because I did some amazing investments after going to that class. I thought it was a way to tell the world that after going to that class at Trump University I prospered.”

Kent Moyer

Kent Moyer is not in real estate at all, as his rather detailed website attests. Rather, he seems himself to be involved primarily in selling the kind of “coaching” and “seminars” that are pretty similar on their face to Trump University. Kent Moyer, per his bio, appears to have gone to Wharton.

However upon questioning by AP, Moyer clarified that he had attended two-week executive seminars offered by Wharton and had never been academically enrolled as a student at the university. He does not have a bachelor’s degree.

Even if people find real value in the consulting services that Mr. Moyer provides, he by his own admission has never actually made money selling real estate, which is what Trump University is supposed to teach you how to do.

He is a former Playboy Mansion bodyguard who founded a Beverly Hills, California-based company that specializes in providing security to the wealthy and famous.

Moyer told the AP that he does not recall ever personally meeting Trump, but said he has long admired the flashy businessman. He said he reached out to Trump’s lawyers after reading about class-action lawsuits alleging the program was a scam posing as a real academic institution.

“I had nothing but a great experience with Trump University,” Moyer said. “Everyone knew it wasn’t a real university. … What the video doesn’t talk about is that because of Trump University I ultimately enrolled in 2007 in the Wharton Business School.”

Moyer has often described himself in media appearances and in written materials as an alumnus of the prestigious business school at the University of Pennsylvania, of which Trump and some of his children are graduates.

(Editor’s Note: It’s a short day today so this ‘reality’ section was pieced together from the cited articles and is not our own.)

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