They helped mislead investors and buyers

Speaking of Ivanka Trump, and the other Trumps – ProPublica published a big story yesterday on their criminal activities over the last couple of decades. It’s about all these international property deals, which they have said are just branding exercises with no actual involvement. Not true, says ProPublica.

The Trumps were typically way more than mere licensors or bystanders in their often-troubled deals. They were deeply involved in these projects. They helped mislead investors and buyers — and they profited handsomely from it.

Patterns of deceptive practices occurred in a dozen deals across the globe, as the business expanded into international projects, and the Trumps often participated. One common pattern, visible in more than half of those transactions, was a tendency to misstate key sales numbers.

In interviews and press conferences, Ivanka Trump gave false sales figures for projects in Mexico’s Baja California; Panama City, Panama; Toronto and New York’s SoHo neighborhood. These statements weren’t just the legendary Trump hype; they misled potential buyers about the viability of the developments.

Can you say “felony fraud”?

Not so much the most competent to be US Ambassador to the UN as a crook who lies to potential buyers to get them to overpay for dud properties. There was that project in Panama City that flopped, for instance.

Trump touted himself as a “partner” of the developer. His daughter Ivanka briefly boasted that she had personally sold 40 units. (A broker on the project said he couldn’t remember her selling even one.) Meanwhile, Ivanka told a journalist at the time that “over 90 percent” of the Panama units had sold — and at prices five times as high as comparable buildings. Both statements were untrue.

Not only were the Panama sales figures inflated, but many “purchases” turned out to be an illusion. That was no coincidence. The building’s financing depended on obtaining advance commitments from buyers, often before concrete had started pouring. But in between the sale of the bonds in 2007 and 2013, the year the building went bankrupt, buyers of 458 units in the 1,000-unit building abandoned their purchase contracts. Those buyers forfeited more than $50 million in deposits, and they never took possession of finished units. Given that the “buyers” were often shadowy shell companies or other paper entities, it was nearly impossible to discern who the actual purchasers were, let alone why they backed out.

Trumps “forfeiting” deposits that they had paid themselves via shell companies to lure in real buyers?

They’re skilled at being crooks, I’ll give them that.

8 Responses to “They helped mislead investors and buyers”