The Business of Trump is Fraud

I don’t think it’s any surprise to anyone that the core competency of the Trump Organization is fraud. The ongoing puzzle to me is why that’s attractive to 40+ % of American voters.

This is a really good article that explains concisely and in plain English just what the fraud is. Should it be of interest to the Justice Department? Absolutely. Will it be, under a Trump appointee? Absolutely not.

Here’s a paragraph that will give you an idea what we’re talking about.

The reporters—Heather Vogell and Peter Elkind of ProPublica, and Andrea Bernstein and Meg Cramer of WNYC—identified a similar pattern that occurred in deals around the world. The basic scheme worked like this: some local developer in Panama, the Dominican Republic, Florida, Canada, or some other location pays Trump, up front, for the use of his name and agrees to pay him a cut of every sale—not only of units but of things like hotel-room minibar items or, even, bathrobes. These projects typically require sixty per cent or more of units to be sold before construction gets under way. The same set of problems occurred in multiple projects. Many of the early units would be sold to shadow buyers—hidden behind shell companies. Donald Trump or, often, Ivanka Trump would deceive future investors by telling them that a much higher percentage of units had been sold than was factual. More investors pour money in, getting enough money into the project, often, to begin construction. Eventually, the project fails and goes bankrupt. Many of those investors lose all of their money. But the Trumps do not. They got paid up front and are paid continuously throughout until the day the project collapses. They are paid for their name and for overseeing the project, and, if the building is opened, the Trumps manage the property day to day, in exchange for hefty fees.”

https://www.newyorker.com/news/swamp-chronicles/is-fraud-part-of-the-trump-organizations-business-model?mbid=nl_Daily%20101818&CNDID=27072783&utm_source=Silverpop&utm_medium=email&utm_campaign=Daily%20101818&utm_content=&spMailingID=14457406&spUserID=MTMzMTgyODA4NjY1S0&spJobID=1501430193&spReportId=MTUwMTQzMDE5MwS2

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