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Crime Donald Trump Donald Trump Jr. Eric Trump Ivanka Trump The Trump Organization

Federal Appeals Court Says Multimillion Dollar Fraud Suit Against The Trumps Will Proceed

An enormous class action lawsuit filed against former President Donald Trump and his three oldest children — Don Jr., Eric, and Ivanka — will move forward despite pleas from the Trumps that the case be allowed to go to arbitration.

According to Courthouse News, the Second Circuit Court of Appeals ruled Wednesday that the lawsuit, accuses the Trumps of running a pyramid scheme to hawk the services of American Communications Network, which allegedly ran a multilevel marketing scheme that bilked investors and never produced the financial returns it promised:

“Trump and three of his children — Donald Trump Jr., Eric Trump and Ivanka Trump — appeared from 2005 to 2015 in promotional television ads, at events and in magazines touting American Communications Network, a telecommunications company that offers business seminars and encourages enrollees to bring in new recruits.

“In a 2018 federal class action, four investors who said they lost hundreds or thousands of dollars investing with ACN sought damages from the then-first family and their corporate entity, the Trump Organization, saying they concealed that ACN paid them handsomely for their endorsements.”

Here’s how the scheme worked: ACN made investors pay $499 up front so they could register with the promise that they could then earn commissions by selling products at “motivational rallies.” At those rallies, family and friends were shown a DVD to encourage them to pony up money for their share of a massive payday promised in ACN’s promotional materials, many of which featured the Trumps encouraging people to pay money so the could reap the rewards, which never materialized.

In the lawsuit, investors reported they made back “less than 10%” of their initial investment.

Much like another illegal scheme, Trump University, the only people who made money in the ACN/Trump deal were the principals: ACN and the Trump family.

A class action judgement against the Trumps could put a massive dent in their bottom line at a time when the Trump Organization is reportedly hemorrhaging money and the former president is unable to lure investors to his struggling real estate business.

The Trump Organization is also under criminal indictment for engaging in tax fraud over the course of decades. Those indictments were handed down earlier this month.

Categories
Crime Donald Trump Jr. Elections Ivanka Trump

DC Attorney General Focused On Don Jr. And Ivanka For Inaugural Fraud Scheme: Report

The District of Columbia attorney general is focusing in on Donald Trump Jr. and Ivanka Trump for their role in an alleged scheme to defraud the 2017 Trump inaugural committee out of more than $1 million, according to The Daily Beast.

Attorney General Karl Racine has filed a civil lawsuit against both the inaugural committee and the Trump Organization which went to mediation earlier this month. However, no resolution was reached on the matter, which places it back in the hands of a judge overseeing the suit:

“The case will proceed, as all sides wait to see whether D.C. Superior Court Judge José M. López rules that the local law enforcement agency has already proven its case before trial. The office of the local attorney general, Karl Racine, has a pending motion for summary judgment arguing that the evidence already presented weighs that heavily in his favor.

“The local attorney general claims the Trump Organization and Trump International Hotel Washington, D.C. were ‘unjustly enriched’ by overbilling the nonprofit inauguration committee. The office wants the judge to force the return of $1.08 million in ‘misspent charitable funds.’ (The AG’s office wants to award that money to another civic-minded nonprofit of its choosing.)”

The suit is especially dangerous for Don Jr. and Ivanka, who are believed to have bilked the inaugural committee out of millions by directing events to the Trump International Hotel in the nation’s capital and overbilling on rooms and services provided at the hotel.

While Racine’s suit is asking for a civil judgement against the Trumps, his office retains the right to any evidence of criminal behavior to other agencies that could pursue the Trump Organization and seek criminal penalties, including imprisonment for fraud and other crimes.

One of the key figures in the inaugural fraud scheme was recently indicted in federal court:

“Tom Barrack, who led the inaugural committee as its chairman, was arrested on a separate matter last week. Barrack, a wealthy investor and personal friend of Donald Trump, appeared in Brooklyn federal court on Monday to plead not guilty to charges that he used his access to the incoming president to secretly lobby for the United Arab Emirates.

“When Barrack was deposed in November 2020 by Leonor Miranda, an assistant attorney general with the office’s public advocacy division, he claimed that he wasn’t involved in the Trump family’s initial selection of venues—and that he didn’t know about the block of hotel rooms that were eventually paid by his committee.”

Barrack might be willing to cooperate with prosecutors and tell what he knows about possible crimes by the Trump family and Trump Org. If he wants to avoid spending the rest of his life in prison (Barrack is 74), he’d best start singing like a canary.

Categories
Corruption Crime Donald Trump Donald Trump Jr. Ivanka Trump

Washington DC Attorney General Is Investigating Trump’s Kids For ‘Massive Fraud’

Indictments were handed three weeks ago against the Trump Organization by the office of Manhattan District Attorney Cyrus Vance, Jr., but there’s plenty of other legal news on the horizon, and it involves the three eldest children of the failed, one-term former president, Don Jr., Ivanka, and Eric.

The Daily Beast reports that prosecutors with the office of District of Columbia Attorney General Karl A. Racine are seeking testimony from Allen Weisselberg, the chief financial officer of Trump Org.:

“The District of Columbia’s attorney general will have to wait just a little longer to find out if three more people in the Trump family circle can be forced to testify, as investigators continue to look into whether Donald Trump’s 2017 inauguration committee misspent more than $1 million and enriched his own company.

“A local judge Sunday, on the eve of a potentially critical court hearing in that case, ruled that he won’t even let the D.C. attorney general’s office argue in court on Monday why it should subject these key witnesses to tough questions.”

Recent court filings show Racine suspects that the Trump children were involved in massive fraud related to the 2017 inauguration, steering money to Trump-branded properties in violation of the law.

One person who has intimate knowledge of the allegedly illegal actions by the Trump kids is Stephanie Winston Wolkoff, who says the former president’s children have been involved in what’s known as “self-dealing”:

“The world’s about to learn how Trump’s inner circle—with Trump’s full knowledge—took advantage of the presidential inauguration.

“Everything they did was all about self-dealing. They had a nonprofit pay them for their own hotel at an inflated cost.”

It should be noted, however, that Racine isn’t seeking criminal penalties against Don Jr., Ivanka, and Eric. At least not yet.

The case underway against the three Trump children is civil in nature, and seeks to recover any improperly spent money which would then be handed over to a non-profit to be used for the benefit of the public.

So while Donald Trump waits to see if he and his company will be charged in Manhattan (which seems a virtual certainty), the D.C. case could also open up members of the Trump family to severe financial penalties and leave them vulnerable to prosecution for attempting to enrich Trump Org. with money intended solely for the inauguration.

Things are about to get much worse for the Trumps. They’re certainly deserving of whatever karma has in store for them.

 

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Crime Donald Trump Ivanka Trump

Ivanka Is In Just As Much Legal ‘Peril’ As Allen Weisselberg: Report

One of the key phrases found in the indictment against the Trump Organization handed down earlier this month is “nonemployee compensation,” a strategy which is used to pay an employee of a company but also giving them money they claim as a non-employee contractor or consultant, and it’s used as a way for the company and the recipient to dodge paying taxes.

The indictment from the office of Manhattan DA Cyrus Vance Jr. not only focused on the former president’s corporation but also on Chief Financial Officer Allen Weisselberg, who is facing the prospect of spending the rest of his life behind bars if he refuses to cooperate with prosecutors.

But it turns out that someone much closer to Donald Trump has also been paid hundreds of thousands of dollars by Trump Org: Ivanka Trump. And that suggests she can also be indicted for accepting nonemployee compensation, according to biographer Michael D’Antonio, who has written extensively about the former president and penned a biography of the real estate magnate.

D’Antonio spoke with CNN’s Jim Acosta on Sunday and was asked whether he thinks Weisselberg will flip on his boss and agree to help prosecutors. He replied:

“You know, he really is acting as if he is going to go down with the ship. I think this is astounding given Michael Cohen’s example. But there’s another thing that I notice in the president’s — or former president’s complaints. And his idea that, ‘Well, they’re going after really good people, and they would only be going after me because of political motivations.’ Well, the big problem for him is that he invited all of this.”

But it was what D’Antonio said next that should be of special concern to Ivanka Trump, who accepted $700,000 for work as a “consultant.”

“The other person who I think is in peril is Ivanka Trump. One of the things that Allen Weisselberg is in trouble for is taking money as a contractor and then claiming self-employed status so that he can get some of the retirement benefits that the tax code allows for self-employed people. Well, we know that Ivanka Trump got quite significant sums paid to her as nonemployee compensation. That freed the Trump Organization from paying part of her taxes, and it put her in a status that I think the IRS would have lots of questions about. So, these folks don’t know how to play the game straight. I think everything they do is crooked.”

Now consider this scenario: Ivanka is also indicted by Vance and then has to make a no-win decision: Give up her father to save herself or spend years in prison. Which will she choose?

If she’s anything like her daddy, she’ll toss him under the bus so quickly it’ll make the old man’s head spin.

Here’s Michael D’Antonio on CNN:

 

Categories
Crime Donald Trump Donald Trump Jr. Eric Trump Ivanka Trump The Trump Organization

Legal Scholar Proves Trump And His Children Will Be Indicted By The Fall Of This Year

Thursday’s indictment of the Trump Organization by Manhattan District Attorney Cyrus Vance Jr. was a disappointment to some because it didn’t include the names of the former president or any of his three eldest children, all of whom are top executives for the company.

But just because there were no charges against any of the Trumps, that doesn’t mean they’re in the clear, according to noted legal scholar Jennifer Taub, who has carefully dissected the indictment and predicts members of the Trump family are far from in the clear.

Writing in Washington Monthly, Taub lays her cards on the table in the very first paragraph:

“Subtle hints in and surrounding this document foreshadow future legal trouble for Mr. Trump himself. With the grand jury expected to meet three times per week for much of the year, we should expect a superseding indictment by fall, one that could include other executives in the Trump Organization including the president’s sons, Donald Trump, Jr., and Eric Trump, as well as the former president himself.”

Taub also explains how she arrived at her prediction of charges being just months away and carrying the name “Trump” without “corporation” immediately following it:

“The very first overt act that seems to indicate the ex-president’s involvement was Donald Trump on behalf of the corporation entering into a lease around March 31, 2005 for an apartment in Manhattan on Riverside Boulevard (the Trump Place building). That lease had a rider that permitted only Allen Weisselberg and his wife to occupy the apartment and to use it as their primary residence.

“Why is this lease rider important? Well, it communicates that the grand jury knows that Donald Trump knew Weisselberg was living in the apartment on the company’s dime.”

In other words, there was a conspiracy. Two or more people were involved in a scheme to break the law. That makes it a conspiracy. If they even planned to commit a crime, that alone is a conspiracy. And Thursday’s indictment makes it clear that the failed, one-term for president would have known all about the tax avoidance schemes Weisselberg was charged for.

The Trump children, as top corporate officers, are also part of a criminal conspiracy, meaning they can expect to see their names emblazoned on future indictments.

All of this, Taub concludes, means that we need to sit tight and wait a while longer, because the “big fish” are about to get their share of karmic justice, too:

“It might be a huge psychological hurdle to ask the men and women of a grand jury to indict a former president. Perhaps the first step of charging his businesses will make them comfortable when they are later given evidence of Trump’s connection to the same or similar fraudulent schemes.

“Who knows for sure? But, what I am certain of is this. For Trump, the worst is yet to come.”

Remember how Weisselberg was shown being marched into the DA’s office in handcuffs yesterday? Trump was reportedly apoplectic when he saw that. Just imagine how upset he’ll be when the cuffs are on his own wrists.