SUMMARY
Donald Trump’s business empire has exposed him to unprecedented corruption and foreign interference. His refusal to fully separate himself from his business has meant foreign governments have spent untold amounts corruptly buying their way into Trump’s good graces. Trump has also put the interests of his personal businesses ahead of the American people influencing his foreign and domestic policy decisions for his own benefit.
- The Trump Organization receives unknown sums from foreign governments seeking favor through visits to Trump properties unchecked by oversight
- The Saudi Arabian Government paid over $270,000 to Trump Hotel in DC for one event.
- The Kuwaiti Government paid a total of up to $180,000 throwing parties at Trump Hotel D.C. in 2017, 2018, and 2019
- At least 28 foreign governments, political groups, or officials have spent hundreds of thousands of dollars at Trump properties in an attempt to curry favor with the administration.
- Trump puts his foreign business interests ahead of American interests when making policy decisions.
- Trump allowed Turkish business partners to influence U.S. policy in Northern Syria
- Trump’s Muslim bans excluded Indonesia, Turkey, and Saudi Arabia—countries with large Muslim populations but have Trump branded properties
- The Trump Org may have violated Foreign Corrupt Practices act by working on projects with history of bribery and offering value to foreign officials. Trump has expressed his desire to eliminate the FCPA.
- A Trump Organization project in Azerbaijan may have violated Iran Sanctions.
- Trump Organization project in Georgia may have involved money laundered from Iran and Russia.
- Trump’s frequent visits to his own properties has opened the presidency to new national security stresses.
¶ Trump Receives Payments From Foreign Governments With No Oversight
¶ The Trump Organization Said It Would Estimate Profits From Foreign Governments Then Donate To The U.S. Treasury
The Trump Organization Said That It Intended To Estimate Profits From Foreign Governments To Be Donated To The U.S. Treasury. According to NBC News, “Sheri Dillon, an attorney for the Trump Organization, said during a news conference the president-elect had directed that hotel profits from foreign governments would be donated to the U.S. Treasury because ‘he wants to do more than what the Constitution requires.’ ‘President-elect Trump has decided, and we are announcing today, that he is going to voluntarily donate all profits from foreign government payments to his hotels to the United States Treasury,’ she said. According to the new pamphlet, the Trump Organization does not plan to calculate foreign government profits, but rather to estimate them. ‘To attempt to individually track and distinctly attribute certain business-related costs as specifically identifiable to a particular customer group is not practical,’ the pamphlet states.” [NBC News, 5/24/17]
¶ The Trump Organization Did Not Track Payments Or Make Attempts To Identify Travelers Representing Foreign Governments
The Trump Organization Said It Would Track Direct Billings To “Reasonably Identifiable” Foreign Governments At Its Businesses. According to The Wall Street Journal, “The company said it will track direct billings to a foreign government made by its properties, banquets or other businesses. It will also track all electronic or check payments received from a ‘reasonably identifiable’ foreign government entity. The company warned that some foreign government entities, such as state controlled aerospace, bank, healthcare or energy entities, may not be ‘reasonably identifiable’ as foreign government entities and thus would be excluded from the profit calculation.” [Wall Street Journal, 5/31/17]
The Trump Organization Said That It Did Not “Attempt To Identify Individual Travelers Who Have Not Specifically Identified Themselves As Being A Representative Of A Foreign Government Entity" According to NBC News, “The Trump Organization does not ‘attempt to identify individual travelers who have not specifically identified themselves as being a representative of a foreign government entity,’ according to a new company pamphlet. The policy suggests that it is up to foreign governments, not Trump hotels, to determine whether they self-report their business. That policy matches what several sources told MSNBC — Trump Organization employees are not soliciting information about whether reservations or business is from a foreign government.” [NBC News, 5/24/17]
¶ Trump Organization Announced It Donated $343,000 To U.S. Treasury To Cover Profits From Foreign Governments
Trump Organization Donated $191,538 To Cover Profits From Foreign Governments At Trump Properties In 2018. According to AP, “The Trump Organization said a check for $191,538 sent to Treasury represents profits from embassy parties, hotel stays and other foreign government spending at its Washington hotel and other properties last year. The voluntary donation is up from $151,470 sent a year ago to cover the president’s first calendar year in office.” [AP, 2/25/19]
Trump Organization Donated $151,470 To Cover Profits From Foreign Governments At Trump Properties In 2017. According to AP, “The Trump Organization said a check for $191,538 sent to Treasury represents profits from embassy parties, hotel stays and other foreign government spending at its Washington hotel and other properties last year. The voluntary donation is up from $151,470 sent a year ago to cover the president’s first calendar year in office.” [AP, 2/25/19]
Critics Pointed Out Trump Org Donations Were “Shrouded In Secrecy” And Do Not Cover All Trump Properties. According to AP, “The Treasury donations have been criticized by watchdog groups and Democrats as insufficient and shrouded in secrecy. They say the money doesn’t cover all of Trump’s properties, such as resorts, and its unclear how the company is calculating profits.” [AP, 2/25/19]
¶ Trump’s Denied Oversight Attempts To Track Donations From Trump Organization To Cover Foreign Profits
¶ The Treasury Department Denied A FOIA Request Seeking Information On Trump’s Donation Plans
The Treasury Department Denied A Freedom Of Information Act Request On Donald Trump’s Promised Donations Of Foreign Profits From His Hotels. According to The Washington Post, “Last week, nearly 200 congressional Democrats filed a lawsuit against President Trump, alleging that he is violating the emoluments clause of the Constitution by accepting payment from foreign visitors to his hotels. Two days earlier, the attorneys general of the District and Maryland had filed their own lawsuit alleging the same. The emoluments clause has become a rallying cry for those who think that Trump is more interested in making money off his presidency than in actually governing — and that payments from foreign nationals at Trump properties appear to match the concerns about foreign influence that the founders had in mind when they wrote the clause. But like many things with Trump, holding him accountable on his promise to donate such funds to the Treasury Department will probably be difficult — and a recent denial of a Freedom of Information Act request by the agency shows just how tough it will be to ensure that all payments from foreign visitors are handed over to the government.” [Washington Post, 6/19/17]
- The Treasury Department Stated That A Requester Would Need To Submit Detailed Bank Information, Like Trump’s Bank Account And Routing Numbers, To Identify Responsive Documents. According to The Washington Post, “Several months back, I filed a request seeking records of any donations to the Treasury Department made by the Trump Organization, the president, his sons and Allen Weisselberg, the organization’s chief financial officer. In April, Treasury denied my request, saying that I would need detailed information like bank account and routing numbers for the agency to search its logs for donations from Trump or his organization.” [Washington Post, 6/19/17]
¶ Trump Org Did Not Provide The House Oversight Committee With Details Of Its Donation Plan
The Trump Organization Provided The House Oversight Committee With A Glossy Pamphlet Featuring Photos Of Trump Properties When Asked For Information On The Company’s Plans To Donate Foreign Profits. According to Business Insider, “The Trump Organization is not attempting to track whether guests at its hotels and other properties are representatives from foreign governments, a document released on Wednesday by the leading Democrat on the House oversight committee showed. Instead, the document showed that the Trump Organization was relying on guests to self-report any ties to foreign governments. […] In April, Republican Rep. Jason Chaffetz of Utah and Democratic Rep. Elijah Cummings of Maryland — the chair and ranking member of the oversight committee, respectively — requested information about the plan’s ‘implementation and timing’ from attorney Sheri Dillon, who announced it at a January news conference. The plan came in response to suggestions that as soon as he took office, Trump could be violating the emoluments clause of the Constitution, which bars the president from accepting gifts from foreign powers. Cummings on Wednesday released the response both congressmen received on May 11: a short, glossy pamphlet filled with photos of Trump properties.” [Business Insider, 5/24/17]
¶ Government Agency Overseeing Trump Hotel D.C. Lease Does Not Know How Much Money Foreign Governments Have Spent At The Hotel
GSA Confirmed It Does Not Know How Much Money Foreign Governments Have Spent At Trump Hotel. According to Government Executive, “When pressed by Rep. John Garamendi, D-Calif., to confirm that GSA has no idea how much spending by foreign governments contributes to the income and profits at the Trump hotel, Murphy said, ‘that’s correct.’ On foreign expenditures she said, ‘The only thing I know is what I’ve read in the paper.’ Garamendi noted that foreign spending is considered an emolument.” [Government Executive, 1/28/20]
¶ Trump’s Businesses Saw A Rise In Profits From Foreign Governments Since 2017
In 2018, The Trump Organization’s Profit From Foreign Governments Rose 26 Percent. According to Bloomberg, “The Trump Organization’s profits from foreign governments rose 26 percent last year, the company said Monday. Spending by foreign dignitaries, embassies and other government representatives produced $191,538 in net income for President Donald Trump’s family business according to Eric Trump, his son and company executive vice president. The Trump Organization donated an equivalent amount to the U.S. Treasury on Feb. 22 by writing a check signed by Eric Trump and his older brother Donald Trump Jr.” [2/25/19]
¶ Over 28 Foreign Governments Have Spent Hundreds Of Thousands At Trump Properties To Curry Favor With The President
At Least 28 Foreign Governments, Political Groups, Or Officials Have Held Events And Spent Money At Trump Businesses Since Election. According to Public Citizen, “The 371 entities holding events and spending money at Trump businesses include: […] 28 foreign governments, political groups or officials.” [Public Citizen, 11/11/19]
¶ Government of Saudi Arabia Paid For Stays At Several Trump Hotels Since Election, Spent Millions In Trump Transactions Since The 1990’s
2017: The Government Of Saudi Arabia Spent $270,000 At The Trump International Hotel. According to the New York Times, “The single biggest known tab was paid by the government of Saudi Arabia, which disclosed that it spent $190,273 at the Trump hotel in early 2017, as well as an additional $78,204 on catering.” [New York Times, 9/7/19]
- Saudi Government Paid Veterans To Travel To D.C. To Lobby Against 9/11 Bill Allowing Victims’ Families To Sue Saudi Arabia. According to AP, “After Congress passed a new law allowing Sept. 11 victims’ families to sue Saudi Arabia in U.S. courts, opponents mounted an expensive political campaign, including paying American military veterans to visit Capitol Hill and warn lawmakers about what they said could be unintended consequences. What few people knew, including some of the recruited veterans themselves, was that Saudi Arabia’s government was largely paying for the effort, worth hundreds of thousands of dollars. Despite a World War II-era U.S. law requiring lobbyists to immediately reveal payments from foreign governments or political parties, some of the campaign’s organizers failed to notify the Justice Department about the Saudi kingdom’s role until months afterward, with no legal consequences.” [AP, 5/11/17]
- Saudi Arabia’s Lobbying Firm Started Making Trips to The Trump International Hotel In D.C. A Week After Trump Was Elected. According to The Daily Caller, “At least seven groups of veterans were flown to Washington, D.C. between November and February, according to Brian McGlinchey, the founder of 28Pages.org, a website that has pushed for the declassification of a portion of a joint congressional review that details links between 9/11 hijackers and the Saudi government. The junkets started on Nov. 14, a week after Trump was elected. Visits were also made on Jan. 23 and in mid-February, McGlinchey found. Qorvis MSLGroup has denied that Trump International was chosen in order to cozy up to Trump. And Trump lawyers have dismissed claims that he is in potential violation of the Emoluments Clause.” [Daily Caller, 6/4/17]
2018: Crown Prince Of Saudi Arabia Stayed At Trump International Hotel Manhattan For Five Days, Boosting Struggling Hotel Revenues. According to The Washington Post, “The general manager of the Trump International Hotel in Manhattan had a rare bit of good news to report to investors this spring: After two years of decline, revenue from room rentals went up 13 percent in the first three months of 2018. What caused the uptick at President Trump’s flagship hotel in New York? One major factor: ‘a last-minute visit to New York by the Crown Prince of Saudi Arabia,’ wrote general manager Prince A. Sanders in a May 15 letter, which was obtained by The Washington Post. […]The previously unreported letter — describing a five-day stay in March that was enough to boost the hotel’s revenue for the entire quarter — shows how little is known about the business that the president’s company does with foreign officials.” [Washington Post, 8/3/18]
Bookings By Saudi Customers At Trump Chicago Has Increased Significantly Since 2016 Election. According to The Washington Post, “At Trump’s hotel in Chicago, like the hotel in New York, business has declined since Trump began his polarizing political career — but Saudi customers have been an exception. According to data recently shared with investors, Saudi bookings at Trump Chicago had gone from 81 ‘room-nights’ in the first half of 2016 to 218 in the first half of this year — an increase of 169 percent. (In the same time frame, bookings from Saudi Arabia’s rival Qatar increased 1,633 percent, from three ‘room-nights’ to 52).” [Washington Post, 10/11/18]
Trump Turnberry Staffer: Group Of Saudi Royals Stayed At The Resort For A Week Earlier This Summer. According to Politico, ‘They are not the resort’s only conspicuous guests. Earlier this summer, according to a staffer, a group of Saudi royals stayed at the resort for about a week at the tail end of extended travel, bringing a party of 25 people and more than a hundred pieces of luggage.’ [Politico, 9/16/19]
¶ Pre Presidential History
Trump On Saudi Arabia During 2015 Campaign Rally: “I Get Along With All Of Them. They Buy Apartments From Me. They Spend $40 Million, $50 Million.” According to The Washington Post, “‘Saudi Arabia, I get along with all of them. They buy apartments from me. They spend $40 million, $50 million,’ Trump told a crowd at an Alabama campaign rally in 2015. ‘Am I supposed to dislike them? I like them very much.’” [Washington Post, 10/11/18]
1991: Trump Sold $20 Million Yacht To Saudi Prince. According to The Washington Post, “In 1991, when Trump was nearly $900 million in debt from failed casino projects, he sold his 281-foot yacht to Saudi Prince Alwaleed bin Talal for $20 million. (The boat had been originally owned by late Saudi billionaire and arms dealer Adnan Khashoggi, a cousin of Jamal Khashoggi.)” [Washington Post, 10/11/18]
2001: Trump Sold 45th Floor Of Trump World Tower New York To Kingdom Of Saudi Arabia. According to The Washington Post, “In 2001, Trump sold the 45th floor of his Trump World Tower, in New York, to the Kingdom of Saudi Arabia for $4.5 million.” [Washington Post, 10/11/18]
Saudi Prince Flipped Manhattan Trump Triplex For $36 Million. According to The Washington Post, “More recently, Prince Nawaf bin Sultan bin Abdulaziz al-Saud acquired what would become a 10,500-square-foot triplex apartment in a Trump building on the west side of Manhattan. Nawaf sold it in February for $36 million.” [Washington Post, 10/11/18]
During The Campaign, Trump Established Several Shell Companies In Preparation For A Potential Saudi Hotel Development. According to The Washington Post, “During Trump’s presidential campaign, he also seemed to be exploring plans to build a hotel in Jiddah, Saudi Arabia’s second-largest city, part of an international expansion plan. In August 2015 — two months after he got into the race — Trump established eight new shell companies that included the name ‘Jeddah.’ The names of those corporations — four of which also included the word ‘hotel’ — seemed to indicate Trump was planning a hotel in the city. The Trump Organization did not answer questions about what was planned or if the company was working with a Saudi partner.” [Washington Post, 10/11/18]
¶ Embassy Of Kuwait Paid Up To $180,000 Throwing Annual National Day Party At Trump D.C. In Three Consecutive Years
February 25, 2017: The Embassy of Kuwait Held Its National Day Celebration At Trump’s D.C. Hotel. According to the Washington Post, “Donald Trump, one month from taking the oath of office to become president, continues to draw new business from foreign leaders who book rooms and meeting space at his D.C. hotel. The latest example is the Kuwaiti Embassy, which plans to hold its National Day celebration for about 600 guests at the hotel on Feb. 25.” [Washington Post, 12/20/16]
- Treasury Secretary Steve Mnuchin Attended National Day Celebration Held At Trump International Hotel In Washington DC. According to Associated Press, “After Trump’s speech, Treasury Secretary Steven Mnuchin returned to his Washington residence — the hotel — and strode past the gigantic American flag in the soaring lobby. With his tiny terrier tucked under an arm, Mnuchin stepped into an elevator with reality TV star and hotel guest Dog the Bounty Hunter, who particularly enjoyed the Trump-stamped chocolates in his room. […] Last week, Kuwait’s ambassador, Salem Al-Sabah, and his wife hosted a reception in the hotel’s presidential ballroom, in what was one of the first known instances of foreign money changing hands with the hotel division of the Trump Organization since he became president. A spokeswoman for the Trump Organization did not respond to questions about whether the money from the Kuwait Embassy has been or will be donated. Mnuchin attended.” [Associated Press, 3/5/17]
February 26, 2018: Kuwaiti Embassy Planned To Return To Trump Hotel For Consecutive Year To Celebrate National Day. According to The Washington Post, “For the second year in a row, the Kuwaiti embassy will hold a large National Day celebration at President Trump's hotel in downtown Washington. An invitation obtained by The Washington Post said the event is scheduled to be held in the hotel ballroom the evening of Feb. 26. A source familiar with the plans, speaking on the condition of anonymity because the event is private, confirmed the details of the invitation.” [Washington Post, 1/26/18]
February 26, 2019: Kuwait Embassy Held Third Consecutive National Day Party At Trump Hotel D.C. According to 1100 Pennsylvania, “Yesterday, a person invited to the Kuwaiti embassy in D.C.’s independence day celebration confirmed that the location is in fact at the Trump Hotel D.C. next month. On Sunday, Twitter user @OpWolverines posted a photo of what appeared to be an invite to the reception, which 1100 Pennsylvania reported on later that day. Shortly thereafter, and speaking anonymously because ‘D.C. is too small of a town,’ a person invited to the party verified its authenticity to 1100 Pennsylvania.” [1100 Pennsylvania, 1/29/19]
February 26, 2019: Kuwait Embassy Held Third Consecutive National Day Party At Trump Hotel D.C. According to Mother Jones, “Trump’s fancy hotel in Washington, DC, has been the recipient of revenue from governments, people, and parties with interests before the US government and motive to curry favor with Trump. One such entity: the government of Kuwait. As the below invitation shows, the Gulf State is holding its independence anniversary shindig at the Trump International Hotel next month. This will mark the third year in a row that the Kuwaitis have decided to grace Trump’s hotel with their presence and petro-dollars.” [Mother Jones, 1/30/19]
¶ Kuwaiti Government Estimated To Spend $40,000-$60,000 To Trump Hotel For Each Party
Cost Estimates Said The Kuwaiti Government Could Pay $40,000-$60,000 According to Reuters, “The Kuwaiti government could pay up to $60,000 to President Donald Trump’s hotel in Washington for a party it held on Wednesday in an early test of Trump’s promise to turn over profits from such events to the U.S. Treasury. The Kuwait Embassy hosted an event to mark their National Day. Similar National Day celebrations at the Trump International Hotel for a crowd of several hundred can run from $40,000 to $60,000, according to cost estimates from the hotel seen by Reuters. The hotel declined to comment on the figures.” [Reuters, 2/27/17]
¶ Kuwaiti Embassy Held National Day Celebrations At Four Seasons In Georgetown Before Trump Was Elected
Kuwait Embassy Repeatedly Held National Day Celebrations At Four Seasons In Georgetown Before Trump’s Election. According to The Washington Post, “Before Trump's election, Kuwait had held its National Day celebrations repeatedly at the Four Seasons hotel in Georgetown — and asked the Four Seasons to reserve a day for the event to return in 2017. Then, after Trump won, Ambassador Salem al-Sabah switched the event to the Trump International Hotel — which opened in late 2016 on Pennsylvania Avenue NW.” [Washington Post, 1/26/18]
¶ Kuwaiti Embassy Held 2020 Celebration At The Embassy Itself
Kuwait Did Not Schedule National Day Celebration At Trump Hotel DC For The First Time In Trump’s Presidency. According to 1100 Pennsylvania, “Breaking with what’s become a tradition since its owner was elected U.S. president, Kuwait’s embassy in Washington will not hold its national day celebration at the Trump Hotel D.C. in 2020. According to a photo of an invitation obtained by 1100 Pennsylvania, this year’s D.C. celebration of Kuwait’s independence will be held at the embassy itself on Feb. 25.” [1100 Pennsylvania, 2/11/20]
¶ Ukrainian Officials Stayed At Trump Properties In New York And D.C. To Curry Favor With The President
In An Effort To Curry Favor, Ukrainian President Volodymyr Zelensky Told Trump He Stayed At Trump Tower The Last Time He Traveled To The United States. According to the Washington Post, “‘Actually, last time I traveled to the United States, I stayed in New York near Central Park, and I stayed at the Trump Tower,’ Zelensky told Trump, according to a rough transcript of the July 25 call released Wednesday. Zelensky’s comments mark the first known example of an interaction Democrats and government ethics experts warned about when Trump took office: that foreign leaders would try to influence Trump by spending money at his properties and telling him about it.” [Washington Post, 9/26/ 19]
- Zelensky May Have Stayed At Trump Tower Prior To Assuming His Office. According to Washington Post, “It remains unclear whether the stays were illegal. Zelensky may not have entered office at the time of his stay at Trump International Tower, overlooking Central Park in New York. A spokeswoman for Zelensky declined to say when the president’s New York stay took place, but Zelensky posted several images from New York City — including a video jogging in Central Park — on social media in March 2018. That was 14 months before Zelensky entered office and more than six months before he entered the race for president in Ukraine.” [Washington Post, 9/26/19]
A Lobbyist, Registered As An Agent Of President Zelensky’s, Hosted An Event At Trump’s D.C. Hotel. According to the Washington Post, “A top Zelensky aide met at Trump’s D.C. hotel in July with Trump attorney Rudolph W. Giuliani, a frequent patron of the hotel himself, according to the New York Times. A lobbyist who registered as an agent of Zelensky’s with the U.S. government hosted a $1,900 event at the D.C. hotel in April, according to a federal filing.” [Washington Post, 9/26/19]
¶ Industrial And Commercial Bank Of China Rented Space In Trump Tower For Over $2 Million
Industrial And Commercial Bank Of China Reportedly Signed Deal To Rent 14,256 Sq. Ft. In Trump Tower For $150-$175 Per Sq. Ft., For Total Rent Of $2,138,400 To $2,494,800. According to New York Post, “Industrial and Commercial Bank of China has chosen a location known for its international appeal to set up its first US outpost: Trump Tower at 725 Fifth Ave. The bank – said to be the world’s largest in terms of global market value – signed a deal for the 20th floor, about 14,256 square feet. Donald Trump said the tower’s office space is now fully leased. Although Trump Tower is most famous for its retail atrium that’s now home to Gucci and for its tony condo apartments, it also has about 200,000 square feet of office space on floors 14-26, with some of the highest rents in the world – ‘in the $150-$175 a square foot category,’ Trump said yesterday.” [New York Post, 9/16/08]
The Industrial And Commercial Bank Of China Was Government-Owned. According to The Industrial and Commercial Bank Of China, Central Huijin Owned 34.71 percent total shares and the ministry of finance owned 34.60 percent of shares. [Industrial and Commercial Bank of China, 9/30/19]
- Central Huijin Was A Government Owned Investment Firm. According to Central Huijin, “Central Huijin Investment Ltd. ("Central Huijin") is a state-owned investment company incorporated in accordance with China's Company Law. Central Huijin, which is headquartered in Beijing, was established in December 2003 and mandated to exercise the rights and the obligations as an investor in major state-owned financial enterprises, on behalf of the People's Republic of China ("State"). In September 2007, the Ministry of Finance issued special treasury bonds and acquired all the shares of Central Huijin from the People's Bank of China.” [Central huijin
¶ Qatari Customers And Government Officials Have Frequented Trump Properties Since Election
January 2017: Qatari Government Officials Had Breakfast With Mike Flynn At Trump International Hotel. According to The Daily Beast, “Met w/General Flynn, who will assume the position of National Security Advisor, and other officials at a working breakfast in Washington D.C. […] The breakfast gathering took place the night after the Global Chairman’s Dinner—one of the inauguration’s most exclusive events, set up so the incoming president can meet the foreign diplomatic corps. Some of those who attended the dinner also attended the Trump Hotel breakfast, two individuals with direct knowledge of the events told The Daily Beast. Country officials invited to the breakfast included Saudi Arabia, United Arab Emirates, Israel, Lithuania, Estonia, Denmark, Japan, Angola and others. Former Kazakh Ambassador Kairat Umarov attended the breakfast, as did two senior Qatari officials.” [Daily Beast, 1/16/19]
Qatari Bookings At Trump Chicago Have Jumped Dramatically Since Election. According to The Washington Post, “At Trump’s hotel in Chicago, like the hotel in New York, business has declined since Trump began his polarizing political career — but Saudi customers have been an exception. According to data recently shared with investors, Saudi bookings at Trump Chicago had gone from 81 ‘room-nights’ in the first half of 2016 to 218 in the first half of this year — an increase of 169 percent. (In the same time frame, bookings from Saudi Arabia’s rival Qatar increased 1,633 percent, from three ‘room-nights’ to 52).” [Washington Post, 10/11/18]
¶ Government of Slovakia Rented Trump World Tower Condos In 2017
The Government Of Slovakia Rented Condominiums In Trump World Tower In 2017 Without Congressional Approval. According to Reuters, “The U.S. State Department allowed seven foreign governments to rent luxury condominiums in New York’s Trump World Tower in 2017 without approval from Congress, according to documents and people familiar with the leases, in what some experts say could be a potential violation of the U.S. Constitution’s emoluments clause […] Slovakia, another Trump World Tower renter, said in a statement that its lease was ‘fully in line with U.S. legislation and our internal guidelines.’ Slovakia’s prime minister is scheduled to meet with Trump at the White House today to discuss security cooperation and other issues.” [Reuters, 5/2/19]
¶ Turkish Government Owned Groups Held Conferences At Trump Properties
The Turkey-U.S. Business Council Plans To Hold A Conference At The DC Trump International Hotel That Would Potentially Violate The Emoluments Clause. According to Bloomberg, “A conference at Trump’s Washington hotel in May, planned by business groups that promote political and economic ties between the U.S. and Turkey, could violate both the domestic and foreign emoluments clauses of the Constitution, according to Tribe. The three-day conference is a joint effort by the Washington-based American-Turkish Council and the Istanbul-based Turkey-U.S. Business Council. Previous conferences have cost about $400,000, with about one-third of the amount going to the venue, according to Howard Beasey, chief executive officer of the American-Turkish Council. The Trump hotel was chosen for its location and because the hotel the council had used in the past wasn’t available, Beasey said, adding that sponsors and members pay their own way and no government funding is involved.” [Bloomberg, 4/12/17]
- The Turkey-U.S. Business Council Is Part Of The Turkish Government’s Foreign Economic Relations Board. According to Bloomberg, “The Turkey-U.S. Business Council is part of the government-controlled Foreign Economic Relations Board, known by the acronym DEIK. The council is headed by Ekim Alptekin, who’s also chairman of Inovo BV, a Dutch consulting company that paid former national security adviser Michael Flynn’s consulting firm $530,000 last year for work in which a foreign government was the main beneficiary, according to a government filing. Speakers at last year’s conference included Turkish-born developer Mike Sarimsakci of Alterra International, who signed a letter of intent to build a Scion-branded hotel in Dallas with the Trump Organization, and Burak Talu, CEO of Dogus Construction Co., who has written about his company’s hopes for U.S. infrastructure work.” [Bloomberg, 4/12/17]
Turkish Airlines Hosted Its Annual Golf Tournament At Donald Trump’s Doral Course In April. According to CBS News, “Anyone can book an event at a Trump golf club or hotel, and profits can go to President Trump through his trust. So, who’s doing this? Turkish Airlines, half-owned by the Turkish government, paid for its annual tournament at President Trump’s Doral golf course in Miami in April. […] CBS News asked the Trump Organization if they consider money from Turkish Airlines to be from a foreign government, but it didn’t respond.” [CBS News, 6/12/17]
- Turkish Airlines Is Half-Owned By The Turkish Government. According to CBS News, “Anyone can book an event at a Trump golf club or hotel, and profits can go to President Trump through his trust. So, who’s doing this? Turkish Airlines, half-owned by the Turkish government, paid for its annual tournament at President Trump’s Doral golf course in Miami in April. […] CBS News asked the Trump Organization if they consider money from Turkish Airlines to be from a foreign government, but it didn’t respond.” [CBS News, 6/12/17]
¶ Ecuadorian Trade Minister Spent Over $3,000 During 2 Night Stay At Trump International D.C.
Ecuadorian Trade Minister Spent $3,300 At Trump International Hotel D.C. According to a hotel bill obtained by David Fahrenthold of the Washington Post, the Ecuadorean commerce minister spent $1,233 per night on room, $366.50 on meals at BLT, and $68.00 on room service at the Trump International Hotel in Washington, D.C. [Twitter, 7/22/19]
¶ Malaysian Prime Minister Spent Hundreds Of Thousands Of Dollars Staying At Trump Hotel D.C. During Official Visit With President Trump
Malaysian Prime Minister Najib Razak Stayed At The Trump International Hotel During His Visit To Washington D.C. To Meet With Donald Trump. According to The Washington Post, “Before arriving at the White House late Tuesday morning to meet with President Trump, Malaysian Prime Minister Najib Razak strode through the golden doors of an elevator at the Trump International Hotel and past the lounge to his waiting motorcade. The prime minister’s official White House visit also brought at least 24 hours of activity and sales to the glamorous 263-room hotel on Pennsylvania Avenue that Trump owns through a trust. And it is likely to escalate debate over whether the president is benefiting from a luxury property that has become Washington’s new power center — and, its critics say, a staging area for those seeking White House access. Hotel staffers and Malaysian officials declined to say whether Najib and the other officials stayed overnight at the hotel, among the most expensive in Washington, or if they did stay, for how long.” [Washington Post, 9/12/17]
The White House Refused To Confirm That Najib Stayed At The Hotel, Though Najib’s Entourage Lounged In Areas Reserved For Hotel Guests. According to The Washington Post, “White House press secretary Sarah Huckabee Sanders dismissed a question about the delegation’s stay. ‘We certainly don’t book their hotel accommodations,’ she told reporters Tuesday.But signs of the Malaysia delegation’s presence were obvious at the property. At lunchtime Monday, more than a dozen members of Najib’s entourage relaxed in a lounge area reserved for hotel guests. That evening, they came and went from the hotel, sometimes returning to the valet stand with shopping bags.” [Washington Post, 9/12/17]
Najib’s Events At The Trump International Likely Cost Hundreds Of Thousands Of Dollars. According to The Washington Post, “OnTuesday morning, dozens of delegation members convened in meeting rooms with name cards bearing the Malaysian coat of arms. Some attended a white-tablecloth breakfast in the hotel’s Lincoln Library meeting room. Events of this scale would probably mean hundreds of thousands of dollars in revenue for the Trump Organization, based on confirmed spending totals of other groups that have set up camp there. The company declined to comment.” [Washington Post, 9/12/17]
¶ Trump Put Personal Business Interests Before American Interests
¶ Trump Requested Ambassador To Get The British Open Moved To Trump Turnberry
Trump Asked His Ambassador To The U.K. To Get The British Open Moved To Trump Turnberry. According to the New York Times, “The American ambassador to Britain, Robert Wood Johnson IV, told multiple colleagues in February 2018 that President Trump had asked him to see if the British government could help steer the world-famous and lucrative British Open golf tournament to the Trump Turnberry resort in Scotland, according to three people with knowledge of the episode. The ambassador’s deputy, Lewis A. Lukens, advised him not to do it, warning that it would be an unethical use of the presidency for private gain, these people said. But Mr. Johnson apparently felt pressured to try. A few weeks later, he raised the idea of Turnberry playing host to the Open with the secretary of state for Scotland, David Mundell.” [New York Times, 7/21/20]
The Ambassador’s Deputy Was Forced Out A Few Months After Emailing Officials At The State Department Detailing The Episode. According to the New York Times, “Still, the episode left Mr. Lukens and other diplomats deeply unsettled. Mr. Lukens, who served as the acting ambassador before Mr. Johnson arrived in November 2017, emailed officials at the State Department to tell them what had happened, colleagues said. A few months later, Mr. Johnson forced out Mr. Lukens, a career diplomat who had earlier served as ambassador to Senegal, shortly before his term was to end. The White House declined to comment on Mr. Trump’s instructions to Mr. Johnson, as did the ambassador and the State Department. Although Mr. Trump, as president, is exempt from a federal conflict of interest law that makes it a criminal offense to take part in ‘government matters that will affect your own personal financial interest,’ the Constitution prohibits federal officials from accepting gifts, or ‘emoluments,’ from foreign governments. Experts on government ethics pointed to one potential violation of the emoluments clause that still may have been triggered by the president’s actions: The British or Scottish governments would most likely have to pay for security at the tournament, an event that would profit Mr. Trump.” [New York Times, 7/21/20]
¶ Trump Allowed Turkish Business Partner To Influence Foreign Policy Decisions
Trump Towers Instanbul Was Developed By Aydin Dogan And Mehmet Ali Yalçındağ. According to a press release from the Trump Organization, “Donald and Ivanka Trump began their visit with a press conference attended by the developers of the project, Aydin Dogan, Dogan Holding’s Honorary Chairman and Mehmet Ali Yalçındağ, Dogan Yayin Holding, Member of the Board as well as VIP guests and key media outlets. Speaking in sequence, Donald Trump and Ivanka Trump expressed their great pride and enthusiasm for Trump Towers Istanbul.” [Trump Organization Press Release, 5/9/12]
¶ John Bolton Said Trump’s Motivation For U.S. Policy With Turkey Was Motivated By Financial Interests And He Often Granted “Personal Favors” To Erdogan
Bolton: Trump’s Approach To U.S. Policy With Turkey Is Motivated By Personal Or Financial Interests. According to NBC News, “Former national security adviser John Bolton derided President Donald Trump’s daughter and son-in-law during a private speech last week and suggested his former boss’ approach to U.S. policy on Turkey is motivated by personal or financial interests, several people who were present for the remarks told NBC News.” [NBC News, 11/12/19]
- Bolton: Trump’s Advisors Are Not Aligned With Him On Turkish Policy Issues. According to NBC News, “Bolton said he believes there is a personal or business relationship dictating Trump’s position on Turkey because none of his advisers are aligned with him on the issue, the people present said.” [NBC News, 11/12/19]
Bolton Expressed Concern To AG Barr That Trump Was Granting “Personal Favors” To Leaders Of Turkey And China. According to The New York Times, “John R. Bolton, the former national security adviser, privately told Attorney General William P. Barr last year that he had concerns that President Trump was effectively granting personal favors to the autocratic leaders of Turkey and China, according to an unpublished manuscript by Mr. Bolton. Mr. Barr responded by pointing to a pair of Justice Department investigations of companies in those countries and said he was worried that Mr. Trump had created the appearance that he had undue influence over what would typically be independent inquiries, according to the manuscript. Backing up his point, Mr. Barr mentioned conversations Mr. Trump had with the leaders, President Recep Tayyip Erdogan of Turkey and President Xi Jinping of China.” [New York Times, 1/27/20]
¶ Mehmet Yalcindag “Deployed” By Erdogan To Work Trump Administration On Matters Of State
Erdogan “Deployed” Yalcindag And Albayarak To Work Trump Administration On Russian Missiles, Banking Sanctions, And Other Matters. According to The New York Times, “On the Russian missiles, banking sanctions and other matters, Mr. Erdogan has deployed both his own son-in-law and Mr. Trump’s Turkish business partner, Mehmet Ali Yalcindag, as emissaries to the administration, sometimes through Mr. Kushner, according to Turkish officials and public records.” [New York Times, 11/12/19]
Erdogan Made Yalcindag A Go Between For Turkish-American Communications And Appointed Him As Chairman Of TAIK After Trump Was Elected President. According to The New York Times, “Frantic to reach the new president-elect the next day, the Turkish Embassy in Washington eventually turned in desperation to Mr. Yalcindag for the telephone number of Trump headquarters — beginning his new role as a go-between for Ankara. Mr. Erdogan knew Mr. Yalcindag from Turkish business circles, and he had reportedly collaborated with Mr. Erdogan’s son-in-law on a campaign to influence the Turkish news media. On the strength of his ties to the Trump family, Mr. Erdogan also named Mr. Yalcindag to a new role as chairman of a state-run business group that lobbies Washington on behalf of Ankara.” [New York Times, 11/12/19]
- TAIK Operated Under The Umbrella Of Turkey’s Foreign Economic Relations Board. According to TAIK, “The Turkey-U.S. Business Council (TAİK) is Turkey’s oldest business council. Established in 1985, TAİK’s mission is to enhance trade and investment relations between Turkey and the United States. TAİK operates under the umbrella of the Foreign Economic Relations Board of Turkey (DEİK).” [tair.org.tr, accessed 9/30/19]
¶ NYT Proposed Trump’s Business Partner Convinced Trump To Allow Turkey To Invade Northern Syria
As Chairman Of TAIK Yalcindag Lobbied House Foreign Affairs Committee And State Department And Made The Case For Turkish Takeover Of Northern Syria. According to The New York Times, “During a visit this year, Mr. Yalcindag also made stops on Capitol Hill and at the State Department, not only to lobby on trade policy but on an array of other issues, as well.In one State Department meeting, according to a person present, his agenda included pushing for the extradition of the Pennsylvania-based cleric Fethullah Gulen, accused by Mr. Erdogan of promoting the 2016 coup attempt against him; pleading for the United States to quietly settle the sanctions case against the Turkish bank with a limited fine; arguing for the sale of Patriot missiles to reduce Turkey’s need for Russian alternatives; and making the case for a Turkish takeover of northern Syria.” [New York Times, 11/12/19]
¶ Ivanka Trump Has Been Awarded Chinese Trademarks While President Trump Discusses Trade Deal Raising Questions Of Whose Interests Are Best Being Served During Negotiations
Ivanka Trump Was Awarded 7 New Trademarks As Donald Trump Pledged To Save ZTE. According to The New York Times, “China this month awarded Ivanka Trump seven new trademarks across a broad collection of businesses, including books, housewares and cushions. At around the same time, President Trump vowed to find a way to prevent a major Chinese telecommunications company from going bust, even though the company has a history of violating American limits on doing business with countries like Iran and North Korea.” [New York Times, 5/28/18]
- ZTE Was Chinese Telecommunications Giant That Suffered Under Trump’s Sanctions. According to The New York Times, “ZTE, the Chinese telecommunications giant that was on the brink of collapse after being hit with tough penalties by the Trump administration, has become a linchpin of trade relations between the United States and China.” [New York Times, 6/7/18]
- Bolton Claimed Barr Was Concerned With Trump’s Decision To Lift Sanctions On ZTE. According to The New York Times, “Mr. Bolton wrote in the manuscript that Mr. Barr singled out Mr. Trump’s conversations with Mr. Xi about the Chinese telecommunications firm ZTE, which agreed in 2017 to plead guilty and pay heavy fines for violating American sanctions on doing business with North Korea, Iran and other countries. A year later, Mr. Trump lifted the sanctions over objections from his own advisers and Republican lawmakers.” [New York Times, 1/27/20]
January 2019: Ivanka Trump Was Granted Five Trademarks From China As The Trump Administration Continued Trade Talks With Beijing. According to Fox News, “Ivanka Trump has been granted five trademarks from China as her father’s administration continues to negotiate with the Asian powerhouse over trade and ethics experts raise concerns about the first family’s business dealings. Trademarks, including ones for wedding dresses, sunglasses and child care centers, were approved Sunday, according to an Associated Press report. An additional trademark regarding brokerage, charitable fundraising and art valuation services was also approved earlier this month.” [Fox News, 1/22/19]
Ivanka’s “Growing Portfolio Of Trademarks In China” Raised Questions About Whether She Was Receiving Favors From Chinese Officials. According to The New York Times, “The most recent slew of trademarks appear to have been granted along the same timeline as Ms. Trump’s previous requests, experts said. But more broadly, they said, Ms. Trump’s growing portfolio of trademarks in China and the family’s business interests there raises questions about whether Chinese officials are giving the Trump family extra consideration that they otherwise might not get.” [New York Times, 5/28/18]
¶ Trump Stopped The Deportation Of Chinese Dissident Guo Wengui Because He Was A Mar-A-Lago Member And Frequent Trump D.C. Guest
Donald Trump Reportedly Was Considering Deporting Chinese Dissident Guo Wengui Until Aides Informed Him That Guo Was A Mar-A-Lago Member. According to Vanity Fair, “He has treated monumental decisions on such questions as whether to certify the Iran nuclear framework or who should lead the Federal Reserve with all the seriousness of a Bachelorette promo. But few of his escapades have been as screen-worthy as one starring Guo Wengui, a billionaire Chinese dissident dubbed the ‘Che Guevara of Chinese crony capitalism,’ a cohort of Chinese officials who infiltrated Trump’s New York penthouse using a fluffed set of visas and a letter from the Chinese government, hand-delivered to the president by Republican National Committee finance chairman Steve Wynn, a casino tycoon with links to the Chinese-controlled gambling haven Macau. […] Despite Wynn’s flagrant conflict of interest, Trump was reportedly considering deporting Guo until aides talked him out of it—including informing him that Guo happens to be a member of his Mar-a-Lago resort (a privilege that costs $200,000 in initiation fees plus $14,000 in annual dues). The president subsequently changed his mind, exposing a secondary set of even more problematic biases.” [Vanity Fair, 10/24/17]
Exiled Chinese Billionaire Guo Wengui Said That He Conducted Business Meetings At The Trump International Hotel In Washington D.C. According to CNBC, “Mr. Guo’s presence in the United States poses a dilemma for the Trump administration, which is seeking China’s cooperation to rein in North Korea’s nuclear ambitions. In recent years Mr. Guo provided Washington with insights into Chinese politics through his visits with embassy officials in Beijing, according to a former senior administration official. Mr. Guo, who is a member of Mar-a-Lago, President Trump’s private Palm Beach club, is eager to get close to the powerful. On Tuesday, he wrote on Twitter that he flew to Washington for meetings at the Trump International Hotel. He contributed to charitable work by Tony Blair, the former British prime minister, who calls him a friend.” [CNBC, 5/31/17]
¶ Donald Trump’s Muslim Ban Excluded Several Countries In Which He Did Business
Donald Trump’s Executive Order That Would Suspend Entry To The U.S. From Seven Muslim-Majority Countries Does Not Include Countries In Which The Trump Organization Has Done Business Or Pursued Deals. According to Bloomberg, “President Trump is poised to sign an executive order that would suspend all entry to the U.S. from seven Muslim-majority countries in the Middle East, according to a draft proposal obtained by Bloomberg News. His proposed list doesn’t include Muslim-majority countries where his Trump Organization has done business or pursued potential deals. Properties include golf courses in the United Arab Emirates and two luxury towers operating in Turkey.” [Bloomberg, 1/26/17]
Washington Post: “Excluded From The [Travel Ban] Lists Are Several Majority-Muslim Nations Where The Trump Organization Is Active And Which In Some Cases Have Also Faced Troublesome Issues With Terrorism.” According to The Washington Post, “The seven nations targeted for new visitation restrictions by President Trump on Friday all have something in common: They are places he does not appear to have any business interests. The executive order he signed Friday bars all entry for the next 90 days by travelers from Syria, Iran, Iraq, Yemen, Sudan, Somalia and Libya. Excluded from the lists are several majority-Muslim nations where the Trump Organization is active and which in some cases have also faced troublesome issues with terrorism.” [Washington Post, 1/28/17]
Washington Post: “Trump Is Now Facing Questions About Whether He Designed The New Rules With His Own Business At Least Partly In Mind.” According to The Washington Post, “According to the text of the order, the restriction applies to countries that have already been excluded from programs allowing people to travel to the United States without a visa because of concerns over terrorism. Hewing closely to nations already named as terrorism concerns elsewhere in law might have allowed the White House to avoid angering some more powerful and wealthy majority Muslim allies, such as Egypt. But without divesting from his company, as bipartisan ethics experts had advised, Trump is now facing questions about whether he designed the new rules with his own business at least partly in mind.” [Washington Post, 1/28/17]
¶ 2020: Trump’s Expanded Travel Ban Did Not Include Countries With Trump Properties
January 2020: Trump Added Nigeria, Eritrea, Sudan, Tanzania, Kyrgyzstan, And Myanmar To Muslim Travel Ban. According to The New York Times, “President Trump on Friday added six countries to his list of nations facing stringent travel restrictions, a move that will virtually block immigration from Africa’s most populous nation, Nigeria, and from Myanmar, where the Muslim minority is fleeing genocide. Beside Nigeria, three other African countries, Eritrea, Sudan and Tanzania, will face varying degrees of restrictions, as will one former Soviet state, Kyrgyzstan. Myanmar’s Rohingya Muslims could also be caught in the crossfire.” [New York Times, 1/31/20]
¶ Donald Trump’s Rollback Of Sanctions On Cuba Could Impact His Competitors In The Hotel Industry
Donald Trump’s Plan To Roll Back Obama-Era Cuba Policies Could Negatively Impact His Domestic Hotel Competitors’ Overseas Expansion Plans. According to The Washington Post, “By rolling back Obama-era policies that allowed more private business investment in Cuba, President Trump would be leveraging the power of his office, like others who came before him, to shift Washington’s approach to the communist island. But as the owner of a real estate company with a big stake in hotels and resorts, Trump brings an added element to an issue that is unique to his presidency — the ability, through his official actions, to undermine a growth area for his industry rivals who have raced in recent years to establish a foothold in a lucrative new market. Starwood Hotels and Resorts, which merged with Marriott International to form the world’s largest hotel chain, last year debuted the first Cuban hotel managed by a U.S. company in nearly 60 years, taking advantage of President Barack Obama’s 2014 move to normalize relations with Cuba and lighten regulations enforcing the U.S. embargo on the island.” [Washington Post, 6/15/17]
Donald Trump’s Administration Planned To Ban Certain Financial Transactions Between U.S. Businesses And The Cuban Military, Which Controls A Large Share Of Cuba’s Tourism And Hotel Sector. According to The Washington Post, “Trump is expected to announce in Miami on Friday his intention to ban certain financial transactions between U.S. businesses and the Cuban military, whose companies control much of the island’s economy and a significant share of the tourism and hotel sector. That directive could undercut efforts by the U.S. hotel industry, which hopes to use the Starwood deal as a template as it continues to push Congress to lift the ongoing U.S. embargo completely. The issue offers a reminder of Trump’s dual roles, public and private, as a result of his decision to retain his sizable ownership stake in his company.” [Washington Post, 6/15/17]
¶ Trump Properties And Foreign Leaders
Trump Has Met With Leaders Of At Least 10 Countries Where He Has A Property Or Is Developing One. According to Politico, “As president, Trump has met with leaders of at least 10 countries where he has a property or is developing one: Turkey, the Philippines, South Korea, India, Indonesia, Canada, Ireland, Panama, Dominican Republic and the United Arab Emirates, according to his schedules. He also met with leaders of three countries — China, Saudi Arabia and South Korea — where state-owned companies are developing new Trump resorts. Some of the governments are spending their own money on roads and other infrastructure for Trump’s projects.” [Politico, 10/20/19]
Politico: Foreign Leaders Have Made A Point To Mention Trump Properties In Attempt To Flatter The President. According to Politico, “Foreign leaders know that. And as they have gotten to know Trump, they have learned to regularly mention his properties in what appear to be attempts to flatter him. In June 2018, Canadian Prime Minister Justin Trudeau gave Trump a photo of his family’s first property in that country as a gift. In July, Ukrainian President Volodymyr Zelensky told Trump he had stayed in Trump Tower in New York in their infamous call. And this year, in another meeting with the Irish leader, it was the prime minister who first mentioned a Trump property when he asked during an Oval Office meeting about whether the upcoming St. Patrick’s Day parade in New York passes Trump Tower. Trump laughed and replied that it did. ‘I used to watch it all the time,’ Trump told him. ‘I would watch it all the time. So you’ll be there on Saturday?’” [Politico, 10/20/19]
Trump Has Invited 7 Foreign Leaders To Visit His Properties. According to Politico, “Trump has invited the leaders of seven countries — Japan, China, Haiti, Jamaica, St. Lucia, the Bahamas and the Dominican Republic — to meet with him at Mar-a-Lago, the resort he has dubbed the winter White House. Japanese Prime Minister Shinzo Abe has been twice to Mar-a-Lago, which he described to Trump as ‘gorgeous’ in 2017 and 2018, staying overnight at least once as a personal gift from Trump, though the Japanese government didn’t answer questions about the second visit. He also has been to Trump National Golf Club in Virginia, Trump International Golf Club in West Palm Beach, Trump National Golf Club in Jupiter and Trump Tower, according to 1100 Pennsylvania, which tracks visits to Trump properties.” [Politico, 10/20/19]
¶ Trump Organization May Have Violated Foreign Corrupt Practices Act (FCPA)
¶ FCPA Prohibits American Companies From Providing Foreign Officials (Including Parties And Candidates) With Any Thing Of Value Including Cash Payments, Gifts, And Travel Or Entertainment Expenses
FCPA Prohibits American Companies From Bribing Foreign Officials. According to the American Bar Association, “TheFCPAcontainstwo main components: the anti-bribery provisions, which prohibit payments to foreign officials to obtain or retain business, and the accounting provisions that require issuers to make and keep accurate books and records and to maintain an adequate system of internal accounting controls. The accounting provisions also prohibit individuals and businesses from knowingly falsifying books and records or knowingly failing to implement internal controls. Persons and entities subject to the FCPA include ‘domestic concerns,’ which are U.S. persons and businesses.[6] ‘Issuers,’ which are U.S. and foreign public companies listed on U.S. stock exchanges or which are required to file periodic reports with the SEC, also are subject to the FCPA.[7] In addition, certain foreign persons and businesses acting while in the territory of the United States may be subject to the FCPA.[8]” [American Bar Association, 3/21/14]
- Under FCPA, Foreign Official Includes “Any Foreign Political Party Or Official Thereof” Or “Any Candidate For Foreign Political Office.” According to the Justice Department, “The FCPA’s anti-bribery provisions apply to corrupt payments made to (1) ‘any foreign official’; (2) ‘any foreign political party or official thereof ‘; (3) ‘any candidate for foreign political office’; or (4) any person, while knowing that all or a portion of the payment will be offered, given, or promised to an individual falling within one of these three categories.111 Although the statute distinguishes between a ‘foreign official,’ ‘foreign political party or official thereof,’ and ‘candidate for foreign political office,’ the term ‘foreign official’ in this guide generally refers to an individual falling within any of these three categories.”[“A Resource Guide To The U.S. Foreign Corrupt Practices Act,” Department of Justice, 11/14/12]
Under FCPA Bribery Is An Improper Payment Of “Anything Of Value” Including, “Travel Expenses, Entertainment Expenses, Or Expensive Gifts.” “According to the American Bar Association, “An improper payment may be anything of value.[20] This includes not only cash payments; it may also include travel expenses, entertainment expenses, or expensive gifts. Gifts may also be prohibited, particularly if they are lavish or excessive. Likewise, foreign charitable contributions are not prohibited under the FCPA unless made for the purpose of improperly influencing a foreign official or made without a proper vetting of the foreign charity. Further, an improper payment need not be made directly to a foreign official; payments to friends or family members of an official may also violate the FCPA, if made in order to influence the official.[21]” [American Bar Association, 3/21/14]
¶ Trump Organization Has Provided Things Of Value To Foreign Officials In Indonesia, India, And The Philippines In Potential Violation Of FCPCA
FCPA Experts: Trump Organization’s “Famous Brand, Its Command Of The Luxury Market, Its Extensive Technical Advice” Constitute Things Of Value. According to the New Yorker, “Tillipman explained that the F.C.P.A. defines corruption as ‘the payment of money or anything of value’ to a foreign official. Last year, JPMorgan Chase agreed to pay two hundred and sixty-four million dollars to settle charges that it had violated the F.C.P.A.; the bank had given jobs and internships to relatives and friends of government officials in Asia. Tillipman, along with several other F.C.P.A. experts, told me that the Trump Organization had clearly provided things of value in the Baku deal: its famous brand, its command of the luxury market, its extensive technical advice.”[New Yorker, 3/13/17]
¶ Trump Indonesia Business Partner Hary Tanoe Was An Indonesian Official And Received Valuable Brand Consulting And Access To Trump’s Inauguration Party
¶ Tanoe Ran For Office And Chaired Indonesian Political Party While Doing Business With Trump
2013 - 2014: Former Head Of The Indonesian Armed Forces Under Suharto, Wiranto, Ran For President With Tanoe As His Vice-President. According to Channel NewsAsia, “Former Indonesian armed forces chief Wiranto has officially announced he is making a bid for the Indonesian presidency. Media baron Hary Tanoesodibjo is also bidding to become the country's first ethnic Chinese vice-president. The pair from the Hanura Party is the first to officially announce their candidacies. Other parties have either announced only their presidential candidates or say they will wait until after April's parliamentary elections. Both men have links to the late former President Suharto. Mr Wiranto served as President Suharto's armed forces chief, while Mr Hary started his media empire with two of Mr Suharto's children. One of Indonesia's richest men, 47-year-old Mr Hary entered politics less than two years ago and only joined Mr Wiranto's Hanura Party in February. Mr Hary controls the MNC Group, which owns several TV and radio stations in the country.” [Channel NewsAsia, 7/3/13]
2015: Tanoe Launched Perindo Party. According to the Jakarta Post, “Media magnate Hary Tanoesoedibjo on Saturday launched to great fanfare a new political party called the United Indonesia Party (Perindo). Hary said in his speech that he had decided to launch the party as part of his contribution to the nation’s development. ‘There are so many challenges facing the nation and Perindo is ready to fix Indonesia so that it can be better,’ Hary said. Many political bigwigs attended the launch, including Golkar Party chairman Aburizal Bakrie, People’s Conscience (Hanura) Party chairman Wiranto and National Mandate Party (PAN) chairman Hatta Rajasa.” [Jakarta Post, 2/9/15]
- March 2020: Tanoe Remained The Chairman Of The Indonesian Unity Party (Perindo). [Perindo, accessed, 3/3/20]
¶ The Trump Organization Gave Hary Tanoe Valuable Consulting, Management And Licensing Services Beginning 2015
Hary Tanoe Was The Founder, Controlling Shareholder, Executive Chairman And CEO Of MNC Group. According to MNC Group, “Hary Tanoesoedibjo, Indonesian citizen, aged 51, was born in Surabaya in 1965. He is currently domiciled in Jakarta. He is the founder and the controlling shareholder as well as the Executive Chairman and CEO of MNC Group. He obtained his Bachelor of Commerce (Honours) degree from Carleton University, Canada in 1988 and an MBA from Ottawa University in 1989 and regularly served as a speaker at various national and international media events, as well as lecturer in the form of general lecture in more than 150 universities covering entrepreneurship and the economy.” [MNC Group, Annual Report, 2016]
8/14/15: MNC Land’s Bali Nirwana Resort Entered Into Consulting, Management, And Licensing Agreements With Trump Organization Companies. According to MNC Land, “On August 14, 2015, PT Bali Nirwana Resort (“BNR”), a subsidiary, entered into agreements with details follow: i. BNR entered into Technical Services Agreement with DT Bali Technical Services Manager LLC (DTBT), whereby DTBT will provide technical assistance and consultation for the construction, engineering, planning and programming for the construction of integrated entertainment and resort development components located in Raya Tanah Lot, Tabanan, Bali. […] ii. BNR entered into Hotel Management Agreement with DT Bali Hotel Manager LLC (DTBHM), whereby DTBHM will provide supervise, direct and control the management and operation of all aspects and as the exclusive operator during the term. […] BNR entered into License Agreement with DT Marks Bali LLC (DTMB), whereby BNR is authorized to use the name “Trump” on its residential projects. […] BNR entered into Golf and Club Management Agreement with DT Bali Golf Manager LLC (DTBGM), whereby DTBGM will supervise, direct and control the management and operation of all aspects of the golf and as the exclusive operator during the term.” [MNC Land, Annual Report, 2015]
8/19/15: MNC Land’s Lido Nirwana Resort Entered Into Consulting, Management, And Licensing Agreements With Trump Organization Companies. According to MNC Land, “On August 19, 2015, PT Lido Nirwana Parahyangan (LNP), a subsidiary, entered into agreements related to the management of, and related services to, integrated entertainment and resort development component under LNP which consisted of (i)Technical Service Agreement, (ii)Hotel Management Agreement, (iii)License Agreement and (iv)Golf and Club Management Agreement with details as follow: […] ‘LNP entered into an agreement with DT Lido Tehnical Services Manager LLC (DTLT), whereby DTLT will provide tehnical assistance and consultation for the construction, engineering, planning, programming for the construction of integrated entertainment and resort development components located in Lido, Sukabumi.[…] LNP entered into Hotel Management Agreement with DT Lido Hotel Manager LLC (DTLHM), whereby DTLHM will provide supervise, direct and control the management and operation of all aspects and as the exclusive operator during the term.[…] LNP entered into Golf and Club Management Agreement with DT Lido Golf Manager LLC (DTLGM), whereby DTLGM will supervise, direct and control the management and operation of all aspects of the hotel and as the exclusive operator during the term.” [MNC Land, Annual Report, 2015]
¶ Hary Tanoe Was Given Exclusive Access To Trump’s Presidential Inauguration As A Business Partner Of Trump
Tanoe Reported That He Was Invited To Trump’s Inauguration As A Partner Of Trump Organization, Not As A White House Friend. According to Tempo, “Last week, Hary spoke for almost two hours to Tempo reporters Wahyu Muryadi, Yandhrie Arvian, Sapto Yunus, Abdul Malik, Raymundus Rikang and Reza Maulana at his MNC Tower office in central Jakarta. Hary spoke of his first meeting with Trump, on Trump’s anti-immigration policy, his political objectives and his Indonesian Unity Party (Perindo) in the upcoming 2019 general elections. He was proud of the fact that he introduced House of Representatives (DPR) Speaker Setya Novanto and Deputy Speaker Fadli Zon to Trump. ‘I arranged the meeting,’ Hary said. In what capacity were you invited to President Trump’s inauguration? They invited me as a partner of the Trump Organization, not as a White House friend. I don’t know whether I am the only Indonesian who was invited, but I didn’t see any other over there.” [Tempo, 2/7/17]
¶ Trump Indian Business Partner Mangal Probhat Lodah Was An Indian Official And Received Valuable Brand Consulting And Brand Licensing From Trump Organization
¶ Mangal Prabhat Lodha Was An Indian Official From 1995-Present
Mangal Prabhat Lodha Was The Vice President Of The Bharatiya Janata Party In Maharashtra State. According to the New York Times, “Mr. Trump’s partner in the Trump Tower Mumbai is the Lodha Group, founded by Mangal Prabhat Lodha, vice president of the Bharatiya Janata Party — currently the governing party in Parliament — in Maharashtra State. The Lodha Group has already negotiated with the United States government; it announced a landmark purchase of a property, known as the Washington House, on tony Altamount Road, from the American government for 3.75 billion rupees, almost $70 million.” [New York Times, 11/26/16]
Mangal Prabhat Lodha Was Senior Legislator In Maharasthra Legislative Assembly Sporadically Between 1995 And Today. According to website, “Mr. Lodha is a senior legislator in the Maharashtra Legislative Assembly, he has been consistently elected as MLA from Malabar Hill constituency of South Mumbai since 1995 - 1999, 2004 -2009 and 2014 – present by winning close to 70 thousand votes in the 2014 assembly elections, winning with highest percentage in Maharashtra.” [Mangal Prabhat Lodha, accessed 3/3/20]
2020: Mangal Prabhat Lodha Reappointed As President Of Mumbai BJP. According to Decan Herald, “The BJP on Thursday re-appointed Chandrakant Patil and Mangal Prabhat Lodha as the Presidents of the party’s Maharashtra and Mumbai units respectively.” [Decan Herald, 2/13/20]
¶ Mangal Prabhat Lodha Received Trump Brand And Design Consulting From The Trump Organization
September 2013: Trump Teamed Up With Mumbai-Based Lodha Developer For Developing Trump Tower In Mumbai. According to the Economic Times, “The Trump Organization led by US billionaire and property moghul Donald Trump has tied up with Mumbai-based Lodha Developer for developing Trump Tower in Mumbai. The proposed tower with two wings will be a part of Lodha proposed 17.5-acre development The Park in central Mumbai. The 800-feet high Trump Tower Mumbai will offer 3, 4 and 5 bedroom apartments and the prices are expected to be over Rs 8 crore for the 3-bedroom and Rs 10 crore for the 4-bedroom residences, Lodha said in a release today.” [Economic Times, 9/18/13]
Trump’s Role Was Primarily To Lend His Name To The Towers, A Franchise Deal Where The Lodha Group Can Use Trump’s Logos And Designs. According to CNN.com, “Nothing projects Brand Trump louder than a gleaming new building towering over India’s slums. There are two officially branded Trump Towers in India, both on the country’s western coast -- in the cities of Pune and Mumbai. I spoke with Prashant Bindal, the Chief Sales officer of the Lodha Group, which is building Trump Towers Mumbai. Trump Mumbai is not owned by Trump. According to Bindal, Trump’s role is primarily to lend his name to the towers, a franchise deal where the Lodha Group can use Trump’s logos and designs.  ‘We have the classic Trump golden façade, the club, the services -- it stands out,’ says Bindal. Trump Mumbai began construction in 2013 and is expected to open by the end of 2018. According to Bindal, the Lodha Group has sold 200 apartment residences so far, out of a total of 300. The apartments are being sold at a 30% premium over other similar properties constructed by the group. ‘The association that Trump provides is his power,’ says Bindal. ‘Buyers say it is his ability to stand out. They are lapping it up. They have seen his properties in New York and Dubai and they want the same prestige here.’” [CNN.com, 3/22/16]
Trump Provided Design Consulting To Lodha Group
The Lodha Group Enlarged Trump Tower Mumbai’s Kitchens, Added Air-Conditioning In The Lobbies And Kitchens, At Donald Trump’s Insistence. According to Bloomberg, “In nearby Mumbai, Abhishek Lodha is trying to secure approvals for the last few floors of the Trump Tower Mumbai. The managing director of Lodha Group said in an interview at the firm’s office that he negotiated the tower deal over six months prior to Trump’s election, which included a visit to Trump Tower in New York for meetings with Donald Jr. and Ivanka. Once in Mumbai, Trump the elder made a few tweaks to the project: bigger kitchens, air-conditioning in the lobbies and kitchens, and he picked out the façade design.”[Bloomberg, 9/12/17]
Donald Trump Picked The Façade Design For Trump Tower Mumbai.According to Bloomberg, “In nearby Mumbai, Abhishek Lodha is trying to secure approvals for the last few floors of the Trump Tower Mumbai. The managing director of Lodha Group said in an interview at the firm’s office that he negotiated the tower deal over six months prior to Trump’s election, which included a visit to Trump Tower in New York for meetings with Donald Jr. and Ivanka. Once in Mumbai, Trump the elder made a few tweaks to the project: bigger kitchens, air-conditioning in the lobbies and kitchens, and he picked out the façade design.” [Bloomberg, 9/12/17]
¶ Trump Philippines Business Partner Jose E.B. Antonio Was A Foreign Official And Received Valuable Brand Consulting From Trump Organization
¶ Jose E.B. Antonio Was A Philippine Official Before Signing Licensing Deal With Trump
Jose E.B. Antonio Was A Special Envoy To China For The Philippines. According to Money Sense, “That foresight made Century Properties one of the pioneering developers in the Philippines with the award-winning Essensa development in Fort Bonifacio as its crowning glory. From there, Century became the first to provide completely furnished units with the South of Market development and it is now setting its sights on developing the former International School compound in Makati into what he calls Century City, which will rival developments in Japan and the United States. At the same time, as special envoy to China, Antonio is spending a lot of time encouraging Chinese companies to invest in the Philippines and Filipino firms to take advantage of growth opportunities in the world’s fastest-growing economy.” [Money Sense, 9/5/08]
Antonio Served As Envoy To China In 2005 And Was Reappointed In 2018. According to ABS-CBN, “Duterte also re-appointed Century Properties Group Chairman and CEO Jose E.B. Antonio as his special envoy to the United States. Century Properties is known for partnering with celebrities for its luxury developments. Aside from Trump Tower Manila, the company also built a condominium complex with a man-made beach designed by American socialite Paris Hilton. Antonio served as special envoy to China in 2005 and founded the Philippines-China business council.” [ABS-CBN News, 1/4/18]
Jose E.B. Antonio Was A Special Envoy To The United States For The Philippines. According to Bloomberg, “But in Manila, there’s an extra connection: Century Properties’ chief executive and controlling stakeholder, Jose E.B. Antonio, was appointed last month to serve as a special government envoy to the U.S. for Philippine President Rodrigo Duterte, who has vowed to expel American troops from his country and ranted against President Barack Obama. Antonio says he sees no conflict between his public role and private partnership.”[Bloomberg, 11/22/16]
¶ Jose E.B. Antonio Received Something Of Value From The Trump Organization Through Brand Licensing
September 2011: Trump Teamed With Century Properties For A $150 Million High-Rise Residential Project In Manila. According to Real Deal, “Real estate firm Century Properties is teaming up with the Donald Trump brand for a $150 million high-rise residential project dubbed the Trump Tower Manila in the Philippines, the company announced today. Though the building will be 100 percent owned and developed by Century Properties, it will bear Trump's name, Business Inquirer reported. The skyscraper, slated for a 3.4-hectare development site known as Century City on the northern end of the Makati central business district, will be approximately 780 feet tall and will have at least 220 units.” [Real Deal, 9/9/11]
Trump Licensed His Name To Century City Development Corporation. According to Realty Plus, “The Trump Tower Manila is to be developed by Century City Development Corporation at a cost of US$150 million, say reports. Century City Development Corporation is a member of the Filipino real estate firm, Century Properties, and will develop the Trump Tower using the name and mark under license from New York-based Trump.” [Realty Plus, 9/14/11]
Jose E.B. Antonio Was Chairman Of Century Properties Group, The Largest Privately Held Real Estate Development Company In The Philippines. According to Money Sense, “Jose E.B. Antonio, chairman of the Century Properties group, the largest privately held real estate development company in the Philippines, is not one to let failures stop him from achieving his goals. Antonio says that he had invested in a number of small businesses – all of which did not perform as he expected – before he finally hit the big time with Century Properties. ‘I went through a stage when my small business ventures failed. These happened in the eighties before I went into real estate, at a time when the Philippine economy was spiraling down. Everyone was flying out of the country and people converted their pesos to dollars. So practically, all my business initiatives became unsuccessful. But what other people label or call a failure, I have learned, is just God’s way of pointing you in a new direction. So for me there are no mistakes, only new discoveries and new opportunities,’ he says.” [Money Sense, 9/5/08]
¶ Trump Organization Worked On Projects Where Bribery Occurred In Brazil And Allegedly In Azerbaijan In Potential Violation Of FCPA
¶ Trump Partners Engaged In Bribery On Trump Brazil Project
The Trump Organization Business Partners On A Rio Hotel Project Were Accused Of Bribing Two State Pension Funds And Inflating The Price Of The Property. According to Bloomberg, “When Donald Trump pulled his name off a beachfront hotel in Rio de Janeiro in December, his company said it was due to delays in the project and called the move part of ‘normal housecleaning’ in the weeks before he took up the presidency. Brazilian prosecutors and lawmakers investigating pension funds that backed the project paint a picture that may provide a different explanation. In court documents and interviews, investigators say the Trump Organization, in a deal negotiated by daughter Ivanka and son Donald Jr., found itself managing a hotel backed by shady characters, profligate pension funds and built on, prosecutors suspect, corruption. The federal prosecutor’s office is investigating whether the FIP LSH fund that owns the hotel—it sat unfinished with prostitutes loitering at its entrance during a recent visit—bribed two state pension funds in exchange for $41 million of investment and artificially inflated the property’s value. They are also examining whether the Trump Organization profited ‘via illicit payment of commissions and bribes’ to the pension funds, according to the court documents. No one from the Trump Organization or the company itself has been targeted in the probe.” [Bloomberg, 2/15/17]
¶ Trump Partners Allegedly Engaged In Bribery On Trump Azerbaijan Project
Azerbaijani Officials Were Allegedly Routinely Bribed On The Trump Tower Baku Project By Trump’s Developer. According to the New Yorkers, “Two people who worked on the Trump Tower Baku told me that bribes were paid. Much of the graft was routine: Azerbaijani tax officials, government inspectors, and customs officers showed up occasionally to pick up envelopes of cash. The executive at Mace, the construction firm, told me that the Mammadovs handled payments and all interactions with the Azerbaijani government. ‘Were people bribed?’ he said. ‘I don’t know. Maybe. We didn’t check.’ (A spokesman for Mace said that the firm was ‘not involved’ in any corruption.)” [New Yorker, 3/13/17]
Matthew Stephenson: Trump Organization May Be Liable Under FCPA If It Was Extensively Involved In The Baku Project While The Routine Bribing Of Azeri Officials Occurred. According to Matthew Stephenson, “Second, the US partner may be liable under the FCPA for bribes paid by the foreign partner if the latter can be considered the former’s agent, or if the two partners can be deemed co-conspirators in the bribery scheme. This is the theory of FCPA liability that seems most viable in the case of the Trump Organization’s dealings in Baku. For this theory to apply, two conditions must hold: (1) bribery of Azeri government officials—the handing out of “envelopes of cash” to tax collectors and inspectors and the like, for example—continued between May 2012 and December 2016, and (2) the Trump Organization’s involvement in the project needs to have been sufficiently extensive that the Trump Organization could be considered responsible for the Azeri partner’s conduct. This is the one possible theory of liability that Professor Koehler’s otherwise thorough critique omits, and the reason that I’m at least open to the possibility that there was indeed an FCPA violation here. On the first condition, while all of Mr. Davidson’s discussion focuses on the first period, it strikes me as highly likely that bribery of Azeri government officials continued after May 2012, especially since construction on the hotel was not yet complete. With respect to the second condition, the issue is much harder. Professor Koehler correctly notes that we don’t have (to his knowledge or mine) and FCPA cases involving a licensor being responsible for the conduct of a licensee, nor do we have any cases involving the similar situation of a franchisor being liable for the conduct of a franchisee. At the same time, as Mr. Davidson’s article notes, the Trump Organization’s degree of direct involvement in the Baku project was unusually extensive for a licensor. So at the very least, it’s a hard legal question. Of course, it’s all hypothetical, as the odds that the U.S. government will prosecute the Trump Organization strike me as vanishingly small.” [Matthew Stephenson, 3/21/17]
¶ Trump May Be Directing His Administration To Eliminate The FCPA And Weaken American Global Corruption Enforcement
January 2020: Trump Administration Announced Plans To Propose Changes To FCPA Ahead Of Revelations Trump Instructed Officials To Find A Way To Eliminate The Law Through Executive Action. According to CNBC, “The Trump administration is ‘looking at’ making changes to a decades-old global anti-bribery law, White House economic advisor Larry Kudlow told reporters on Friday. […] The questions about possible changes to the FCPA were sparked by revelations in a soon-to-be-released book about Trump, which describes an episode in which Trump bitterly complained about the law, which he sees as a hindrance to U.S. businesses competing overseas. According to Washington Post reporters Phillip Rucker and Carol Leonnig, in 2017 Trump told his then-Secretary of State Rex Tillerson that it was ‘just so unfair that American companies aren’t allowed to pay bribes to get business overseas.’ Trump then said he needed Tillerson ‘to get rid of that law.’ When Tillerson said it would be virtually impossible to get Congress to authorize a repeal of the law, Trump reportedly ordered a senior policy adviser, Stephen Miller, to draft an executive action to repeal the FCPA.” [CNBC, 1/17/19]
Experts Say The FCPA Is A “Powerful Tool For Fighting Corruption Around The World” And An Example Of American Influence. According to CNBC, “Business experts, however, say the FCPA is a powerful tool for fighting corruption around the world, and a perfect example of American ‘soft power,’ or the influence that the U.S. exerts simply by virtue of its reputation.” [CNBC, 1/17/19]
¶ Trump Organization May Have Violated Sanctions Against Iran In Trump Tower Baku Project
Four Years Prior To Their Business Partnership With The Trump Organization, U.S. Diplomatic Cables Revealed That The Mammadov Family Was In Business With Individuals Connected To Iran’s Revolutionary Guard. According to the New Yorker, “Even a cursory look at the Mammadovs suggests that they are not ideal partners for an American business. Four years before the Trump Organization announced the Baku deal, WikiLeaks released the U.S. diplomatic cables indicating that the family was corrupt; one cable mentioned the Mammadovs’ link to Iran’s Revolutionary Guard.[…] As the Mammadovs were preparing to build the tower, the family patriarch, Ziya, was cementing his financial relationship with the Darvishis, the Iranian family with ties to the country’s Revolutionary Guard. At least three Darvishis—the brothers Habil, Kamal, and Keyumars—appear to be associates of the Guard. In Farsi press accounts, Habil, who runs the Tehran Metro Company, is referred to as a sardar, a term for a senior officer in the Revolutionary Guard. A cable sent on March 6, 2009, from the U.S. Embassy in Baku described Kamal as having formerly run ‘an alleged Revolutionary Guard-controlled business in Iran.’ The company, called Nasr, developed and acquired instruments, guidance systems, and specialty metals needed to build ballistic missiles. In 2007, Nasr was sanctioned by the U.S. for its role in Iran’s effort to develop nuclear missiles. The cable said that Kamal and Keyumars were frequent visitors to Azerbaijan; Kamal had recently established ‘a close business relationship/friendship’ with Ziya Mammadov, and, with Mammadov’s assistance, had been awarded ‘at least eight major road construction and rehabilitation contracts, including contracts for construction of the Baku-Iranian Astara highway.’ (Keyumars also seems to have been involved in these deals.) The cable added, ‘We assume Mammedov [sic] is a silent partner in these contracts.” [New Yorker, 3/13/17]
Ranking Members Of Senate Committees Asked U.S. Officials To Investigate Whether The Trump Organization Violated US Sanctions By Doing Business With The Mammadov Family. According to United States Senate documents, “Mr. Davidson’s article details the relationships that exist between the Mammadov family and the IRGC, and between what is described as a possible IRGC-controlled construction firm (the Azarpassillo firm) and the Mammadovs, and the Trump Organization. These relationships raise serious questions about whether the Trump Organization may have become entangled with an IRGC front organization in violation of U.S. sanctions. We urge you to investigate the Trump Organization’s foreign partners in the Trump Tower Baku deal, as well as the internal controls of the Trump Organization, and provide us with your conclusions, where appropriate. In particular: […] 2. We ask you to direct the Office of Foreign Assets Control to open an investigation into whether the Trump Organization maintained proper compliance controls in this case, and to assess whether or not the Trump Organization violated US sanctions law by conducting transactional activity with a group linked to the IRGC.” [Letter From Ranking Members Sherrod Brown, Ben Cardin, and Dianne Feinstein To Secretary Steven Mnuchin, Attorney General Jeff Sessions, and Director James Comey, United States Senate, 3/30/17]
¶ Trump Organization’s Partner In Georgia Did Business With Iran and Russian Owned Companies And With Companies Allegedly Involved In Money Laundering Schemes
2011: Trump Signed A Deal To Develop Two Of The Tallest Towers In Georgia; Construction Would Be Overseen By Giorgi Ramishvili Of the Silk Road Group. According to The New York Times, ‘In a ceremony with caviar and wine at Trump Tower in Manhattan on Thursday, Mr. Trump signed a deal to develop the two tallest towers in the republic of Georgia, the former Soviet state at the nexus of Eastern Europe and Western Asia. Giving his blessing to the deal was Mikheil Saakashvili, the flamboyant, English-speaking president of Georgia. […] Any actual construction, if it begins as scheduled in 2013, would be overseen by Giorgi Ramishvili, chairman of the Silk Road Group, one of the largest private investment companies in the south Caucasus region. The deal, which the partners estimate at $300 million, calls for two projects. The Trump Tower Tbilisi would go up on Rose Revolution Square in Georgia’s capital. The Trump Riviera would be part of a planned Silk Road complex that includes a casino, an exhibition hall and a marina, in the resort city of Batumi on the Black Sea, near Turkey. The residential buildings will each contain 100 apartments and rise nearly 40 stories -- average by New York standards, but nearly twice the size of the republic’s tallest structures. The partnership was born of a two-year friendship between Mr. Trump and Mr. Saakashvili.’ [New York Times, 3/11/11]
¶ Silk Road Group Did Business With Iran And Russian State-Owned Companies
Silk Road Group, Which Partnered With The Trump Organization To Construct A Trump-Branded Luxury Tower In The Republic Of Georgia, Had Oil Trading And Transport Deals With Russian And Iranian Companies.According to McClatchy, “Weeks before his inauguration, Donald Trump was allied with a company in the former Soviet republic of Georgia that planned to build a 47-story luxury tower in the Black Sea resort of Batumi. The tower, nixed in early January, was to bear Trump’s name – in exchange for which he would receive royalties, as he does from similar arrangements around the world. But the company, Silk Road Group, had business ties and relationships that could have been problematic for a sitting U.S. president. Over the years it had oil trading and transport deals with companies in both Russia and Iran, countries currently facing varying degrees of U.S. and European financial sanctions.” [McClatchy, 6/28/17]
¶ Silk Road Group’s Chairman Allegedly Made Fortune From Oil Smuggling
Silk Road Group Chairman George Ramishvili Allegedly Made His Fortune Smuggling Oil And Other Commodities In The 1990s.According to McClatchy, “Calling itself one of the largest private-investment firms in Central Asia, the Silk Road Group does business in the energy, transportation, banking, media, winemaking and digital sectors. Its reach extends throughout the former Soviet Union and Persian Gulf. Two prominent persons in Georgia, demanding anonymity in order to speak freely, said its chairman, Ramishvili, made his fortune transporting oil and other commodities shortly after the collapse of the Soviet Union. The 1990’s were a time of turmoil, with plenty of opportunities for creative entrepreneurs and little enforceable law standing in the way. ‘There was a lot of smuggling going on, and it was well connected to the state security services,’ recalled one of the businessmen.” [McClatchy, 6/28/17]
¶ Silk Road Group’s Corporate Structure Mimicked Money Laundering Organization
The Silk Road Group’s Corporate Structure Appeared Designed To Conceal Money Laundering. According to the New Yorker, “The Silk Road Group, which was established in Georgia shortly after the fall of the Soviet Union, does not have a conventional corporate structure. It is a holding company that controls dozens of corporate entities registered around the world. In total, B.T.A. loaned the Silk Road Group three hundred million dollars, and these funds were dispersed among its many subsidiaries, making the money trail hard to follow. For example, an eight-million-dollar loan was granted to Batumi Riviera Holding, B.V., which was registered in Holland. Batumi Riviera Holding has reported having a sole asset: a company called Vento, L.L.C., which is registered in Georgia. That registration indicates that its creditor is B.T.A., which made loans valued at seventy-five per cent of the initial investment in the company. Batumi Riviera Holding, in turn, is owned by Tbilisi Central Plaza, a company registered in Malta. Tbilisi Central Plaza is owned by Susalike Holding GmbH, which is registered, in Germany, to a Silk Road Group subsidiary. […] When I described to John Madinger, the retired Treasury official, the various entities and transactions involved in the funding of the Trump Tower Batumi, he said, ‘That is what you would expect to see in a money-laundering operation: multiple shell companies in multiple countries. It’s designed to make life hard for people trying to follow the transaction.’” [New Yorker, 8/21/17]
If The Trump Organization Was Involved In Illegal Activities With The Silk Road Group, It Is Likely Kazakh Security Officials Are Aware And Have Passed This Information Along To The Kremlin. According to the New Yorker, “The Kazakh government placed B.T.A. Bank’s assets under the authority of its sovereign-wealth fund. Soon after, Timur Kulibayev—the powerful son-in-law of the country’s dictator, Nursultan Nazarbayev—became the director of the fund. Kulibayev and his staff had access to all the bank’s internal documents. Recently, Kulibayev became the majority owner of the bank, giving him total control over B.T.A.’s archives, as well as ownership of its assets. Kulibayev was surely familiar with the players involved in the Trump Tower Batumi project. […] Keith Darden is a political scientist at American University who has written extensively on the use of compromising information—kompromat—by former Soviet regimes against people they want to control. He told me that Kazakh intelligence is believed to collect dossiers on every significant business transaction involving the country. This would be especially true if a famous American developer was part of the deal, even if it would not have occurred to them that he might one day become the U.S. President. ‘There is no question—they know everything about this deal,’ Darden said. Darden explained that Kazakh intelligence agents work closely with their Russian counterparts. Kulibayev himself has direct ties to Russia’s leadership.” [New Yorker, 8/21/17]
¶ Silk Road Group Allegedly Involved In Kazak Bank Money Laundering Scandal
Silk Road Group Was Allegedly Involved In BTA Bank Chairman’s Money Laundering Scheme. According to the New Yorker, “In 2009, when Ablyazov fled to London, the Kazakh government seized control of B.T.A. Bank. (Tatishev moved to Singapore in 2013.) A lawyer representing the bank, Roman Marchenko, informed the Silk Road Group that he had reason to believe that it had participated in Ablyazov’s loan scheme. The Silk Road Group denied any wrongdoing. A settlement was reached, for fifty million dollars—a bargain price, considering that the loans had totalled three hundred million. Marchenko believes that the Silk Road Group was deeply entwined with Ablyazov, but Kazakh government officials decided to stop investigating. They were pursuing Ablyazov’s stolen assets all over the world, and there was more money in other countries.”[New Yorker, 8/21/17]
¶ Kazak Bank’s Funding Of Trump Tower Batumi Was Possibly Bank Fraud
Officials Of The Kazak Bank That Wrote Loans To The Silk Road Group Co-Owned Silk Road Subsidiaries That Received The Loans.According to the New Yorker, “Then, in 2005, something remarkable happened. Saakashvili and President Nazarbayev, of neighboring Kazakhstan, announced that B.T.A. Bank—the largest bank in Kazakhstan—was giving several hundred million dollars in loans to help develop Georgia. The loans would pay for the construction of hotels in Batumi, the expansion of the Georgian telecommunications industry, and the growth of a Georgian bank. Curiously, all the loans went to subsidiaries of one company: the Silk Road Group, which specialized not in real-estate development but in shipping crude- and refined-oil products, by rail, from Kazakhstan to other countries. […] That wasn’t the only puzzling thing about the loans. At the time that B.T.A. was lending all this money to the Silk Road Group, the bank’s deputy chairman, Yerkin Tatishev, was apparently crossing an ethical line—positioning himself to exert improper influence over some of the very Silk Road Group subsidiaries that were benefitting from the loans. B.T.A. Bank had representatives on the boards of those subsidiaries, but one representative serving on two boards, Talgat Turumbayev, was simultaneously working for Tatishev’s company, the Kusto Group, supervising mergers and acquisitions. (Turumbayev told me that serving on the boards wasn’t a conflict of interest, because it didn’t take ‘a lot of time.’) I spoke with people who had knowledge about the subsidiaries. They told me that the subsidiaries were co-owned by the Silk Road Group and secret partners. The source at one subsidiary told me he suspected that Tatishev—who repeatedly participated in company meetings—was a hidden owner.” [New Yorker, 8/21/17]
BTA Bank Deputy Chairman, Yerkin Tatishev, Was Involved In Managing The Day-To-Day Operations Of Silk Road Companies, Including Those Receiving Loans From His Bank. According to the New Yorker, “Although Tatishev had repeatedly assured me that he was not involved in making decisions about Silk Road Group projects that had been funded by B.T.A. loans, I continued to accrue contradictory evidence. I recently received a cache of internal Silk Road Group e-mails, dating back to 2014, and they make clear that Tatishev has exerted detailed operational control over the company’s activities, including real-estate businesses that were funded by the B.T.A. loans. The e-mail cache shows that David Borger, a German financier who is a top executive at the company, regularly informed Tatishev about delicate internal financial matters and asked him for approval on a wide variety of decisions pertaining to Silk Road Group hotels, casinos, telecommunications infrastructure, and hydroelectric plants. Many of these projects had been initially funded by loans made while Tatishev was a senior official at B.T.A. Bank.” [New Yorker, 8/21/17]
January 2017: The Trump Organization And The Silk Road Group Announced The Termination Of The Batumi Development. According to Reuters, “The Trump Organization pulled out of a $250-million real estate project in ex-Soviet Georgia to avoid a potential conflict with Donald Trump’s role as president, Trump’s former business partner in the project told Reuters. The Trump Organization declined to comment on the assertion that it quit the project due to conflict-of-interest concerns, and the Trump transition team did not respond to a request for comment. Since winning election as U.S. president, Donald Trump has said he would take steps to ensure he had no conflict of interests with his business. However, he has given few details on how he will do that. Trump planned to give his brand name to Georgian developer Silk Road Group, to build a 47-storey residential tower in the Georgian Black Sea resort of Batumi, a plan he had announced during his visit to the South Caucasus country in April 2012. SRG and the Trump Organization announced their joint decision to terminate the project last week, but did not elaborate on the reasons. ‘The only reason (for project termination) was that Mr. Trump was elected as the U.S. president and could not continue business abroad as it would pose a conflict of interest,’ Giorgi Ramishvili, SRG head, told Reuters in an interview.” [Reuters, 1/10/17]
¶ Trump’s Frequent Visits To his Own Properties Have Opened The Presidency To New Security Threats
¶ Army Unit Tasked With VIP Assignments Such As Presidential Visits To His Properties Has Been Spread Too Thin And Faced Personnel Shortfall Due To Increased Work Load Under Trump
Explosive Ordinance Disposal (EOD) Units Facing Personnel Shortfall And Increase Of Domestic Missions Leading To Burnout And Hurting Preparedness. According to Task & Purpose, “Explosive ordnance disposal units across the Army are struggling to train for combat operations amid both a personnel shortfall and a surge of domestic protection missions, a dangerous combination some EOD techs say has compromised their overall readiness and left their comrades burned out.” [Task & Purpose, 11/6/19]
VIP Demand For EOD Units Increased Under Trump As Teams Forced To Cover Mar-A-Lago, Trump Tower New York, Trump Golf Club Bedminster. According to Task & Purpose, “According to an enlisted EOD tech, VIP demand has also increased since Trump took office: Under the current administration, EOD units must also cover the Mar-a-Lago Club, the Trump Tower in New York City and the Trump National Golf Club in Bedminster, New Jersey. Because VIP assignments are usually apportioned by location, units east of the Mississippi are tasked with conducting more Trump property missions, the enlisted tech explained. In fiscal year 2014, the enlisted tech’s battalion conducted 25 VIP missions, the tech said; by fiscal 2019, that number jumped to over 130 VIP missions, 11 of which were for Trump properties, with teams from the tech’s battalion conducting six rotations at Trump Tower in New York City. The rising workload comes on top of existing assignments, such as protecting former presidents. While the soldiers in the enlisted tech’s unit still enjoy those VIP missions, the tech said ‘we just need a break.’ Soldiers in other units are completely sick of VIP missions.” [Task & Purpose, 11/6/19]
EOD Tech: “We Just Need A Break[…]There’s Just So Many.” According to Task & Purpose, “The rising workload comes on top of existing assignments, such as protecting former presidents. While the soldiers in the enlisted tech’s unit still enjoy those VIP missions, the tech said ‘we just need a break.’ Soldiers in other units are completely sick of VIP missions. ‘When I first came in, guys fought for [VIP missions],’ said the EOD officer. ‘Even taking Jimmy Carter to church was a fun thing to do. You get to hobnob with the bigwigs and come back with cool stories. But now everybody hates them. There's just so many.’” [Task & Purpose, 11/6/19]
VIP Assignments Rose From 25 In 2015 To 130 In 2019, 11 Of Which Were At Trump Properties. According to Task & Purpose, “According to an enlisted EOD tech, VIP demand has also increased since Trump took office: Under the current administration, EOD units must also cover the Mar-a-Lago Club, the Trump Tower in New York City and the Trump National Golf Club in Bedminster, New Jersey. Because VIP assignments are usually apportioned by location, units east of the Mississippi are tasked with conducting more Trump property missions, the enlisted tech explained. In fiscal year 2014, the enlisted tech’s battalion conducted 25 VIP missions, the tech said; by fiscal 2019, that number jumped to over 130 VIP missions, 11 of which were for Trump properties, with teams from the tech’s battalion conducting six rotations at Trump Tower in New York City..” [Task & Purpose, 11/6/19]
¶ Cindy Yang Sold Trump Access To Chinese Clients At Mar-A-Lago Or Trump D.C.
Cindy Yang Ran An Investment Business Offering Access To Trump And His Family To Chinese Clients. According to Mother Jones, “Beyond this sordid tale, there is another angle to the strange story of Yang: She runs an investment business that has offered to sell Chinese clients access to Trump and his family. And a website for the business—which includes numerous photos of Yang and her purported clients hobnobbing at Mar-a-Lago, Trump’s private club in Palm Beach—suggests she had some success in doing so.” [Mother Jones, 3/9/19]
Yang’s Business Successfully Got Chinese Clients At Minimum Photos With The Trump Circle In Washington Or Mar-A-Lago. According to Mother Jones, “The overall message conveyed by the GY US Investments website seems clear: hire Yang’s company and she can get you close to Trump and his government—at Mar-a-Lago and in Washington. If the posted photos are authentic, she has been able to get Chinese clients at least into the Trump circle for a quick pic. They are a sign that this Chinese immigrant and Trump donor has used her contacts to go from massaging clients to massaging influence.” [Mother Jones, 3/9/19]
¶ Federal Investigators Looking Into Possibility That Chinese Spies Attempted To Access Mar-A-Lago
Federal Investigation Opened Into Possibility String Of Trespassing Cases Near Mar-A-Lago Could Be Chinese Spies. According to Daily Mail, “Federal authorities are investigating if six Chinese individuals found trespassing on President Trump‘s Mar-a-Lago Club and a U.S. Naval base in Florida were simply disoriented tourists or government spies. The string of odd occurrences began in September 2018 when a Chinese student entered the Naval Air Station Key West by walking along the facility’s secure perimeter and began taking photos of ‘sensitive equipment.’ Six months later in 2019, a women attempted to enter the Mar-a-Lago club with a cache of electronic items, including four cellphones, a laptop, a thumb drive and a hard drive.” [Daily Mail, 2/23/20]
2019: Six Chinese Citizens Were Arrested For Trespassing In South Florida, Two At Mar-A-Lago Claiming To Be Lost Tourists. According to Daily Mail, “In total, four Chinese men have been arrested for trespassing and snapping photos at the Naval Air Station Key West since 2018, and two Chinese women have been arrested for trespassing at Mar-a-Lago since March 2019. All six of them said that they were tourists who got mixed up while sightseeing, but NBC News reports that authorities are questioning their claims.” [Daily Mail, 2/23/20]