Categories
Business Donald Trump

The Asking Price For Trump Condos Is Plummeting And Tenants Are Refusing To Live In Them

As he faces legal problems in several states and his name continues to be associated with the hatred, violence, and cruelty he inflicted on the country during his four years in office, Donald Trump is also watching as his business begins to circle the drain.

 

The Associated Press reports that Trump condos in several cities are selling for one-third of their original value, a stunning reversal of fortune for a man who built his brand and name on luxury at any price:

“An Associated Press review of more than 4,000 transactions over the past 15 years in 11 Trump-branded buildings in Chicago, Honolulu, Las Vegas and New York found prices for some condos and hotel rooms available for purchase have dropped by one-third or more.

“That’s a plunge that outpaces drops in many similar buildings, leaving units for sale in Trump buildings to be had for hundreds of thousands to up to a million dollars less than they would have gone for years ago.”

Some of the reduction in value may be attributable to the fact that the COVID-19 pandemic has hit real estate hard, but the bad associations of anything carrying the Trump name aren’t helping, especially since many people recall the insurrection that took place at the U.S. Capitol on January 6 shortly after the former president urged his supporters to march on Congress:

“After Trump was accused of whipping up the mob that stormed the Capitol on Jan. 6, things got really bad. Banks vowed not to lend to him, the PGA canceled a tournament at his New Jersey golf course, and New York City fired him as manager of a public course in the Bronx. Several brokers say many potential buyers won’t even look at Trump buildings now.”

In Chicago and Las Vegas, the fall in Trump property values has been even more dramatic:

“In Las Vegas, prices at Trump’s hotel have fallen 4% since he took office four years ago, while average prices for three dozen other hotels in the city that also sell condominiums and rooms rose 14%, according to data collected by Berkshire Hathaway HomeServices broker Forrest Barbee. Since the Trump building opened a dozen years ago, prices per square foot have fallen 66%.”

Ondel Hylton, senior content director at CityRealty, had this to say about what’s happening with Trump-branded properties:

“I have never seen buildings plummet so dramatically. It seems like this is a bottom.”

Donald Trump probably thought being president would be a boon to his company. But it turns out his father was right: He’s a failure, no matter what he attempts.

 

Categories
Business Donald Trump Money Uncategorized

Trump Org. CFO Is On The Verge Of Going Down For Tax Fraud – And Taking The Donald With Him: Report

On Tuesday evening, the New York Times reported that the Chief Financial Officer of the Trump Organization, Allen Weisselberg, is on the verge of being indicted and that the charges could come down as soon as this summer:

“In recent weeks, a grand jury has been hearing evidence about Mr. Weisselberg, who is facing intense scrutiny from prosecutors as they seek his cooperation with a broader investigation into Mr. Trump and the Trump Organization, the people with knowledge of the matter said. The prosecutors have obtained Mr. Weisselberg’s personal tax returns, the people said, providing the fullest picture yet of his finances.”

If Weisselberg does indeed wind up being charged, according to former federal prosecutor Elie Honig, that could also wind up bringing down former President Donald Trump.

During an appearance on CNN shortly after the Times story broke, Honig remarked:

“We’re on the brink of two make-or-break decisions. First, prosecutors will need to sit down, assess all their evidence and decide, do we have enough evidence to indict Allen Weisselberg? If so, then the big decision is, does he flip? Whether he flips will mean everything for this investigation. He’s the exact right person to target to try to flip. He’s in the inner circle, the only person not named Trump who is in the inner circle of the Trump Org. If they flip him, he can open up a universe of evidence.”

That led host Erin Burnett to inquire:

“What is this new reporting from The New York Times, what does it tell you about the types of charges Weisselberg could be facing, especially when you’re getting into this issue of prison time?”

Honig replied:

“Prosecutors seem to be looking to make tax charges against Allen Weisselberg. The charge is that he was paid by the Trump Organization not with a paycheck, but in the Trump Organization paying for tuition, for cars, for apartments. That can be a lot of income. Normally that kind of income is taxable. If they were doing this to try to get around the taxes, to try to beat having to pay taxes, that could be a tax fraud charge.”

Honig added that the prison time Weisselberg could be facing would help determine if he agrees to flip on Trump and tell what he knows to prosecutors:

“A lot is going to depend on the amount here. Tax fraud charges can be as minor as a misdemeanor under New York state law, meaning nobody is going to flip on a misdemeanor, you don’t go to jail. Or they could be up to seven years per year of tax fraud. He could be looking at very little time or very serious time. That’s going to be a huge factor when deciding whether to flip.”

There’s another possibility that Weisselberg has to take into consideration: That Trump will flip on him in order to save his own ass. That alone should give Weisselberg all the motivation he needs to cooperate with investigators.

Here’s Elie Honig on CNN:

 

Categories
Business Donald Trump Money

Trump Is Desperate For ‘A Lot Of Cash’ As Banks Prepare To Seize His Assets: Report

Donald Trump is on the verge of losing everything he owns, as banks are calling in his massive loans and threatening him with seizure of his assets (i.e. properties and bank accounts) unless he starts paying back what he owes them, which is estimated to be anywhere from $420 million to $1 billion.

Dean Enrich, financial investigative reporter for the New York Times, said recently on MSNBC that Trump is desperately trying to find way to make “a lot of cash quickly” to keep the wolves at bay:

“There are both civil and criminal and congressional investigations that are still seeking after years of trying to get Trump’s financial records from Deutsche Bank and, you know, it’s anyone’s guess what that is going to show. We know at Deutsche Bank, though, there were employers who raised money laundering concerns in both the Trump and [Jared] Kushner accounts. We still don’t have the full story about what happened there.”

MSNBC host Alex Witt asked Enrich:

“I trust you will get to the bottom of that, Let me ask you, though, is this just the beginning? How many more banks or financial institutions have relationships with Donald Trump and what’s the impact on his finances of this?”

Enrich responded:

“I think it’s a very serious financial impact for him. He has hundreds of millions of dollars of debt coming due in the next few years, most of it to Deutsche Bank, but not all of it. And normally, a borrower would go to the lender and say, ‘can we refinance the loan, extend it a few years?’ That’s not going to be an option for Trump with most of these loans.”

 

Things are so bad, Enrich added, that Trump is on the precipice of financial default, and that would be catastrophic because some of his largest lenders plan to go after his assets and grab them to compensate for lack of repayment:

“He’s going to need to come up with a lot of cash quickly or he’s going to be at risk of defaulting. In the case of Deutsche Bank, if he defaults, the bank has recourse to his personal assets. They could go to court to seize his property or the money he has in various banking accounts. So he’s going to need to come up with cash very quickly and his businesses right now are struggling, so it’s very unclear to me where he might be able to get that money.”

How will Trump raise hundreds of millions of dollars in a short amount of time? His name and brand are so toxic thanks to his deeds over the past four years that no one wants to do business with him. He, his family, and his company are also facing numerous legal threats in multiple jurisdictions.

Karma is starting to take one hell of a bite out of the Donald.

 

Categories
Business Crime

New York AG Has The Option Of Imposing ‘Corporate Death’ On The Trump Organization

Letitia James is the Attorney General for the state of New York, and that makes her one of the most powerful prosecutors in the country, especially since she’s making it clear that she intends to “use every area of the law” as she investigates the president, his family, and his business, as NBC News has reported:

“New York law allows the attorney general to seek restitution and damages — and, in extreme cases, dissolution — if a business is found to have engaged in persistent fraud. There’s also the Martin Act, a 1921 statute designed to protect investors.

“Past attorneys general have used the Martin Act, considered to be the U.S.’s toughest such state statute in this realm, to expand their powers in the financial crimes sector. The law empowers the attorney general to subpoena witnesses and documents for information pertaining to possible fraud.”

 


As many crimes as the Trump Organization is suspected of having committed (Trump University was just the tip of the iceberg, experts say), AG James could use a legal sledgehammer as she goes about bringing charges against the president’s company, which just so happens to be run by his two eldest sons, Don Jr. and Eric. And that could prove especially catastrophic for the Trump business empire. The power wielded by James under the laws of New York could even be used for a “judgment of corporate death” if she chooses to seek the total dismantling Trump’s holdings in real estate and other businesses.

 


The New York AG has already signaled the direction she plans to pursue, at least initially, having subpoenaed banks that do business with Trump as a way of seeing inside the Trump Organization and Trump’s bank accounts.

Something James told MSNBC host Ari Melber should be of special concern to the president and anyone with connections to the Trump Organization:

“Most of (Trump’s) business activities are performed in New York, he engages in business in New York, he operates in New York and it’s really critically important that New Yorkers as taxpayers — it’s really critically important that we understand and know whether or not he devalued his corporations and he received some tax benefits thereof, that he engaged in false claims against New Yorkers.”

 


Letitia James is going after Trump on numerous fronts. But it’s her investigation of the Trump Organization that could well pose the greatest legal danger to him.

 

Categories
Business Donald Trump

The Trump Organization Is Hemorrhaging Money And On The Verge Of Total Collapse: Report

Donald Trump’s company, the Trump Organization, is hemorrhaging money, especially at its golf resorts, according to a report from Forbes:

“The Trump Organization, which has … declared losses of roughly $90 million at its European golf resorts, according to an analysis of records from Ireland and the United Kingdom. Since the president opened his Aberdeen course in 2012, he has lost $15.5 million. Business has been even worse at Turnberry, which Trump bought in 2014 for $65 million. Despite investing an additional $75 million or so to fix up the property from 2014 to 2018, the place piled up losses of $58 million, according to an analysis of financial reports. The 2019 figures, first reported by the Scotsman, bring Turnberry’s total losses to $61 million since 2014.”

All of Trump’s golf resorts — which were once a major source of revenue for the company — have seen dramatic declines since Trump took office:

For example, at the 643-room Trump National Doral in Miami, Forbes notes:

“Revenues dropped to $87.5 million in 2016, and profits slid to $12.4 million. After election night, the resort lost 100,000 booked room nights, according to someone familiar with the business. Revenue plummeted to $75.4 million in 2017, and profits sank to $4.3 million.”

This latest bad financial news comes on top of the losses suffered by Trump’s hotels during the ongoing coronavirus pandemic, which has also negatively impacted the Trump Organization’s bottom line, as was first reported earlier this year:

“Seventeen of Trump’s clubs and hotels have closed. The remainder of Trump properties are operating at a fraction of their normal capacity: hotels running with restaurants closed, golf clubs operating with clubhouses shut down, and golfers warned not to share carts or touch the flagsticks.”

Simply put, not only is Donald Trump and his company facing serious legal problems in the very near future, there’s a very real possibility that the Trump Organization could be on the verge of bankruptcy.

Looks like karma is starting to catch up with the ex-president in a major way.