Tag: blind trust

Trump Trust Revised So He Can Take Profits From His Businesses At Any Time

Leave a comment

A newly surfaced detail in the trust agreement Donald Trump established to administer his business holdings shows the extent to which the President remains financially wedded to the Trump Organization months after moving into 1600 Pennsylvania Avenue.

As ProPublica reported Monday, Trump added a clause to his trust agreement on Feb. 10 that allows him to withdraw funds at any time from any of his businesses, which number more than 400, without disclosing it publicly.

“The Trustees shall distribute net income or principal to Donald J. Trump at his request, as the Trustees deem necessary for his maintenance, support of uninsured medical expenses, or as the Trustees otherwise deem appropriate,” the document reads.

Before Trump took office, he promised to cede control of the Trump Organization to his two adult sons, who also pledged to keep the President in the dark about the company’s day-to-day operations. As it turns out, Trump not only may continue to withdraw money from his businesses, but his son Eric Trump also has said he plans to give his father regular financial updates. As ProPublica noted, the revised trust agreement stipulates that trustees “shall not provide any report to Donald J. Trump on the holdings and sources of income of the Trust.”

If Trump’s refusal to release any of his tax returns is any indication, the public is unlikely to learn any details about what profits Trump is taking from his businesses while he is in office.

(h/t Talking Points Memo)

Documents Confirm Trump Still Benefiting From His Business

Leave a comment

Before taking office, President Trump promised to place his assets in a trust designed to erect a wall between him and the businesses that made him wealthy.

But newly released documents show that Trump himself is the sole beneficiary of the trust and that it is legally controlled by his oldest son and a longtime employee.

The documents, obtained through a public records request by the investigative news service ProPublica and first reported by the New York Times, also show that Trump retains the legal power to revoke the trust at any time.

The documents were filed to the Alcoholic Beverage Control Board in Washington to alert the board that oversees liquor licenses at Trump’s D.C. hotel of the change in the business.

The documents show that Donald Trump Jr., the president’s eldest son, and Allen Weisselberg, the Trump Organization’s chief financial officer, were placed in legal control of the trust on Jan. 19, one day before Trump took office.

But they outline that the trust’s purpose is “to hold assets for the exclusive benefit of Donald J. Trump,” who “has the power to revoke the Trust.”

The records provide documentary evidence of what ethics experts have been warning about since before Trump took office.

While Trump has promised he will observe a separation between his business and the presidency, he retains ownership of the business and will personally benefit if the business profits from decisions made by his government.

Further, the business will be run by family members who remain the most trusted members of Trump’s inner circle, raising questions about whether Trump’s promises to limit communication about the business’s fate are realistic.

“What I’m going to be doing is my two sons, who are right here, Don and Eric, are going to be running the company,” Trump had said at a news conference shortly before taking office. “They are going to be running it in a very professional manner. They’re not going to discuss it with me.”

Less than two weeks after returning to their New York City home following their father’s inauguration, Donald Trump Jr. and his brother Eric Trump, also assigned to run the business, were back in Washington this week to attend the announcement of Trump’s nominee to the Supreme Court.

Trump Organization representatives did not respond for comment about the documents Saturday.

The trust also does not dissolve other potential conflicts, including his title as executive producer of the NBC competition reality show “Celebrity Apprentice.” He recently made headlines for criticizing the show’s new host, former California governor Arnold Schwarzenegger, at the National Prayer Breakfast.

NBC representatives have not said whether Trump will be compensated for that role, or how much. But executive producers are traditionally paid, even when only retaining a passive credit.

The trust document obtained by ProPublica is attached to license filings tied to Trump’s Washington hotel, and it remains unclear whether other Trump businesses are governed under the same trust. The company has declined multiple requests to provide company trust agreements that could provide more clarity.

In recent weeks, corporate filings have documented that the Trump Organization has been removing the president as an officer or director of the more than 400 entities registered across the country associated with the organization.

The Trump Organization also provided a list, signed by Trump on the day before his inauguration, of more than 400 companies from which he had agreed to resign. Other companies have been dissolved in recent months, the company said.

Those resignations provide evidence the president no longer has official management responsibilities in the businesses, as he and his attorney pledged during a news conference last month. Still, Trump will continue to profit from their success.

The company has also named Bobby Burchfield, a veteran Republican lawyer who has advised both Bush presidential teams, to serve as an outside ethics adviser, indicating that some corporate transactions would not be undertaken without his sign-off.

The question of Trump’s continued ownership stake has been particularly nettlesome at his Washington hotel, which is located in the Old Post Office building and is owned by the federal government. The terms of the 2013 lease agreement with the General Services Administration prohibit any elected official from benefiting from the property.

It is not yet clear whether placing his shares in the hotel under the control of the trust will provide sufficient legal separation to satisfy the terms of the lease. The GSA, which controls the lease, indicated on Jan. 27 that it had received new information from the Trump Organization and was “reviewing and evaluating this information to assess its compliance with the terms and conditions of the Old Post Office lease.”

Congressional Democrats, including Rep. Elijah E. Cummings (Md.), have been pressing the GSA to conclude that the Trump Organization is out of compliance with the lease.

“This legal concoction from President Trump’s lawyers does nothing to address his conflicts of interest or the breach of the lease for his hotel,” Cummings said in a statement.

(h/t The Washington Post)

Trump Urged UK Leader to Oppose Wind Farm Near His Golf Course

Leave a comment

President-elect Donald Trump used a post-election meeting with interim United Kingdom Independence Party (UKIP) leader Nigel Farage to express opposition to wind farms in the United Kingdom, according to The New York Times.

Trump has long been against a wind farm constructed near his golf course in Aberdeenshire, Scotland, even fighting unsuccessfully all the way to Great Britain’s highest court to block it, The New York Times said Monday.

The story broke Monday night, at the same time the president-elect tweeted about his business interests.

“Prior to the election it was well known that I have interests in properties all over the world.Only the crooked media makes this a big deal!” he wrote.

He followed that message up with a second tweet praising Farage and suggesting, “Many people would like to see @Nigel_Farage represent Great Britain as their Ambassador to the United States.”

Trump met with Farage on Nov. 12 at Trump Tower in New York City, following his shocking White House win.

Farage, who helped spearhead the Brexit campaign for Britain to leave the the European Union (EU), is a longtime supporter of Trump and his Republican presidential campaign.

Andy Wigmore, who was present during the pair’s meeting, said Sunday that Trump wanted Farage to campaign against new wind farm developments in the U.K.

“But one thing Mr. Trump kept returning to was the issue of wind farms,” he said, according to The Sun. “He is a complete Anglophile and also absolutely adores Scotland, which he thinks is one of the most beautiful places on Earth.”

“But [Trump] is dismayed that his beloved Scotland has become overrun with ugly wind farms which he believes are a blight on the stunning landscape,” added Wigmore, who lead communications for Leave.EU, one of two groups leading the Brexit effort.

“It is clear that it is an issue he is very passionate about and not because he is against renewable energy or green technology but because he genuinely thinks wind farms are damaging Scotland’s natural beauty.”

The Times notes that Trump owns two golf courses in Scotland, Trump Turnberry and Trump International Golf Links, the second of which is located in the village of Balmedie, near Aberdeenshire.

Trump’s business empire is facing new scrutiny after his White House win, with critics fretting that it may become a conflict of interest for his incoming administration.

The timing and content of his Monday night tweet about Farage raised eyebrows on social media, with Guardian reporter Jon Swaine noting saying the suggestion of Farage as ambassador “publicly disrespect[s]” the current ambassador and could be seen as “preempting the Queen.”

(h/t The Hill)

Trump on Business Conflicts: You Knew Who You Were Voting For

Leave a comment

As Donald Trump assured us during the campaign, someday he’ll turn his business into a “blind trust” operated by his children (right after they change the definition of what a “blind trust” is). For now, it appears Trump is still looking out for his own business interests by combining them with the interests of the president-elect.

The latest example comes from the New York Times, which reported on Monday evening that during a meeting with Nigel Farage days after the election, Trump encouraged the British politician and his pro-Brexit entourage to oppose offshore wind farms that threaten to ruin the view at one of his Scottish golf courses. Last year, Trump lost a long legal battle to block the construction of a wind farm near his resort.

“He did not say he hated wind farms as a concept; he just did not like them spoiling the views,” said Andy Wigmore, a media consultant who attended the meeting. Wigmore said he and his associates were already opposed to wind farms, but Trump “did suggest that we should campaign on it” and “spurred us in and we will be going for it.”

Trump spokesperson Hope Hicks initially denied the report, then stopped responding when informed that Wigmore described the conversation with Trump. But Trump took matters into his own hands, blasting the “crooked media” for focusing on his conflicts of interest. He tweeted, a short time after the Times story was published:

But the next day Mr. Trump was acknowledging a recent meeting with the British politician Nigel Farage, in which, The Times reported, he “encouraged Mr. Farage and his entourage to oppose the kind of offshore wind farms that Mr. Trump believes will mar the pristine view from one of his two Scottish golf courses.”

Pressed about his business interests, Mr. Trump also said, “In theory I could run my business perfectly and then run the country perfectly.”

 

(h/t New York Magazine)

Trump Uses Argentine Congratulatory Call to Push Through Permits

Leave a comment

Over the weekend, there were a flurry of stories about how Donald Trump and his family are already using the presidency to leverage his overseas businesses as well as his new DC hotel. Well, now there’s more. This time in Argentina.

Here’s the background.

For a number of years, Trump and his Argentine partners have been trying to build a major office building in Buenos Aires. The project has been held up by a series of complications tied to financing, importation of building materials and various permitting requirements.

According to a report out of Argentina, when Argentine President Mauricio Macri called President-Elect Trump to congratulate him on his election, Trump asked Macri to deal with the permitting issues that are currently holding up the project.

This comes from one of Argentina’s most prominent journalists, Jorge Lanata, in a recent TV appearance. Lanata is quoted here in La Nacion, one of Argentina’s most prestigious dailies. Said Lanata: “Macri called him. This still hasn’t emerged but Trump asked for them to authorize a building he’s constructing in Buenos Aires, it wasn’t just a geopolitical chat.”

(For Spanish speakers, here’s the original Spanish we’ve translated: “Macri llo llamó. Todavía no se contó pero Trump le pidió que autorizaran un edificio que él está construyendo en Buenos Aires, no fue solo una charla geo política.”)

Separately, Trump’s business partner on the project, Felipe Yaryura, was there on election night at the Trump celebration in New York City.

Why aren’t we hearing about this in the American press?

Well, remember, no one knew anything about the visit from Trump’s Indian business partners until it appeared in the Indian press either. It seems like this is likely happening on many fronts. It’s just being hidden from the American press. We only hear about it when it bubbles to the surface in the countries where Trump is pushing his business deals.

(h/t Talking Points Memo)

Update

Both President Macri and President-Elect Trump have denied that they discussed Trump’s building project during their post-election phone conversation.

But it was confirmed that Ivanka Trump, daughter of U.S. President-elect Donald Trump, CEO of Trump Org, and member of his transition team, briefly joined her father’s telephone call with Argentine President Mauricio Macri to “say hello.”

Ivanka Trump’s Presence at Meeting With Japan’s Leader Raises Blind Trust Questions

Leave a comment

President-elect Donald Trump has repeatedly said that there would be no conflicts of interest during his administration because his vast business empire would be in a “blind trust.” But White House ethics lawyers in both parties have criticized that, noting that having his children run the company means it would be neither blind nor a trust.

The very first meeting that the President-elect held with a world leader, Japanese Prime Minister Shinzo Abe, is prompting further criticism—even alarm. According to photographs taken at Trump Tower in New York City and published this week, the session was attended by Ivanka Trump, who has no government security clearance and is an executive at the Trump Organization.

“This is not the way we behave in the world’s leading constitutional democracy,” says Norman Eisen, special counsel and ethics adviser to President Barack Obama between 2009 and 2011. “It’s like something out of a tin-pot oligarchy.”

Members of the press were also barred from the meeting, adding to building criticism that a President Trump will not honor White House traditions of transparency. Ivanka Trump’s presence apparently only became public because the Japanese government released photos; it is not clear whether she was present for the entire meeting.

Meanwhile the New York Times reports that Jared Kushner, Trump’s trusted son-in-law, consulted a lawyer to find out how he could join Trump’s forthcoming administration without running afoul of federal laws prohibiting nepotism. Kushner was also present at the Abe meeting, according to another photo published by Reuters and the Japanese government. He too lacks government security clearance.

In an interview with Fortune, Eisen says Ivanka Trump and Kushner’s apparent presence at Trump’s first face-to-face meeting with the leader of one of our key allies was “shocking” and unprecedented. “If you’ve got one member of the power couple—Jared Kushner, whispering in the President[-elect]’s ear—and if you’ve got the other, the wife and daughter, who is running businesses, it merges the Trump Organization and the United States into one huge conglomerate managed by the Trumps for their own interests,” he says.

He adds that the fear is that their involvement will turn “our intelligence community into a management consulting firm for the Trump family business. That can’t be right. Ivanka must go, and Kushner can’t stay.”

Eisen and Richard Painter, White House ethics adviser to President George W. Bush between 2005 and 2007, on Tuesday wrote an op-ed in the Washington Post urging Trump to put his “conflict-generating assets in a true blind trust run by an independent trustee.”

Unlike most other federal employees, the President of the United States isn’t bound by the federal conflict of interest law. But Eisen tells Fortune that several lawyers, including those who are part of the Republican party, are “worried about this unprecedented blurring of lines” and President-elect Trump should “expect massive litigation if he proceeds on this collision course.”

(h/t Fortune)

Trump Meets Indian Partners, Despite Vow to Separate From Business

Leave a comment

President-elect Donald Trump reportedly met this week at Trump Tower with three Indian business partners, raising fresh questions about a separation between the Trump’s business and future work in the White House.

Trump’s children, who are part of his presidential transition team, also attended the meeting with Atul Chordia, Sagar Chordia and Kalpesh Mehta, according to India’s Economic Times.

The business partners are building a Trump-branded luxury apartment complex south of Mumbai. A picture of Trump standing alongside the men while giving a thumbs up was posted on Twitter earlier this week.

The meeting comes as Trump vowed to hand off his business to his three adult children in a blind trust to avoid potential conflicts of interest while serving in the Oval Office.

A spokeswoman for Trump told The New York Times that the three Indian real estate executives flew from India to congratulate Trump.

“It was not a formal meeting of any kind,” said Breanna Butler, a Trump Organization spokeswoman.

Butler and Hope Hicks, a spokeswoman for Trump, declined to comment when asked by the Times if the meeting included any discussion of Trump businesses in India or expanding that business.

But Donald Trump Jr. showed interest in expanding the business further in India, Mehta told the Economic Times.

A former deputy editor at GQ India told the Times that he hosted an event at Sagar Chordia’s hotel during the presidential campaign, saying the Indian businessman expressed “elation” about the opportunities Trump’s candidacy could bring.

Trump caught flak earlier this week after his daughter Ivanka was photographed attending a meeting with Japanese Prime Minister Shinzo Abe at Trump Tower.

State Department officials noted that Ivanka Trump does not have security clearance and is an executive at the Trump Organization hotel chain.

“Donald Trump’s children and son-in-law have been deeply involved in the transition and selecting who will be part of his administration,” said Noah Bookbinder, the executive director for Citizens of Responsibility and Ethics.

“At the same time they are deeply involved in the business. There does not seem to be any sign of a meaningful separation of Trump government operations and his business operations.”

Trump Team Seeks Top-Secret Security Clearances for Trump’s Children

Leave a comment

President-elect Donald Trump is potentially seeking top secret security clearances for his children, sources tell CBS News.

The Trump team has asked the White House to explore the possibility of getting his children the top secret security clearances. Logistically, the children would need to be designated by the current White House as national security advisers to their father to receive top secret clearances. However, once Mr. Trump becomes president, he would be able to put in the request himself.

His children would need to fill out the security questionnaire (SF-86) and go through the requisite background checks.

While nepotism rules prevent the president-elect from hiring his kids to work in the White House, they do not need to be government officials to receive top secret security clearances.

The issue raises another layer of questions about the unique role his children are playing and conflicts of interest with their running his network of businesses.

Mr. Trump’s children Ivanka, Eric and Donald Jr., as well as son-in-law Jared Kushner, were named to the president-elect’s transition team late last week. Though they were an integral part of his campaign team, Mr. Trump’s children have all stated that they will not hold formal roles in the government.

“No,” Ivanka told CBS News’ Lesley Stahl when asked during a “60 Minutes” interview if she would join the administration. “I’m going to be a daughter. But I’ve– I’ve said throughout the campaign that I am very passionate about certain issues. And that I want to fight for them.”

(h/t CBS News)

Update

USA Today reports that, “it wasn’t something [Trump] was expecting right now.”

Reality

The fact that his children, who will now be running his business, may have security clearance, as well as a direct line of communication with the President of the United States, makes the concept of a blind trust completely useless. The Trump family will be able to alter government policy to better fit their business ventures or be aware of information months before the rest of the public is notified, allowing an unfair advantage to raise their profits among their competitors.

As Glenn Greenwald put it, “This is not a blind trust in any manner, no matter who calls it that. Stop using this term. It’s false.”

Trump Kids to Run Business While on Transition Team

Leave a comment

The Trump Organization said on Friday it was vetting new business structures aimed at transferring management control to three of President-elect Donald Trump’s children and a team of executives.

The Trump Organization said in a statement it was planning to transfer control of the portfolio of businesses to Donald Trump Jr, Ivanka Trump, Eric Trump and other executives.

Earlier on Friday, the three Trump children – the oldest of Trump’s five children – were also named as members of Trump’s Presidential Transition Team Executive Committee.

“This is a top priority at the organization and the structure that is ultimately selected will comply with all applicable rules and regulations,” a spokesperson for the Trump Organization said in a statement.

Federal conflict-of-interest law does not apply to the president, but most White House occupants in the last few decades have voluntarily placed their assets in a blind trust to avoid any suggestion of impropriety.

Experts in government ethics said that giving over control to Trump’s children would do virtually nothing to prevent potential conflicts of interest, since there’s usually no daylight between one’s personal interest and the interest of one’s immediate family members.

“It doesn’t meet any of the standards of a blind trust if the kids are running the company,” said Kenneth Gross, a Washington lawyer who specializes in advising political clients on compliance and ethics.

Gross noted that the official transition team roles that Ivanka Trump, Donald Trump Jr and Eric Trump now have would appear to complicate matters further.

“If they’re going to be involved in government functions – and they’re starting down that road – and running the business, that’s going to make it very difficult to separate the government and business functions and deal with the conflicts of interest,” Gross said.

All three children already have roles in the Trump Organization, according to the company’s website. Ivanka Trump is executive vice president of development and acquisitions, charged with domestic and global expansion of the company’s real estate interests.

Donald Trump Jr is an executive vice president, and works to expand the company’s real estate, retail, commercial, hotel and golf interests nationally and internationally. Eric Trump is executive vice president of development and acquisitions, responsible for new project acquisition, development and construction globally.

Typically, a blind trust involves turning over assets to an independent financial manager with no prior relationship to the owner. In addition, a blind trust derives its name from the idea that the owner would no longer know what assets are sold or bought. For instance, someone with extensive stock holdings would have no way of knowing which companies’ shares he or she still owned in a blind trust.

Trump’s portfolio includes interests in hundreds of limited liability companies, many overseas, as well as numerous real estate properties both domestic and foreign.

Short of selling the entire Trump empire, experts said, he will find it difficult to create a trust sufficiently “blind” to avoid the possibility of any conflicts.

(h/t Huffington Post)

Reality

This is already showing signs of a conflict of interest with Trump family using their position to help enrich their organization with insider information. This is the type of corruption Trump ran against, but only took a few days after being elected to engage in.