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Trump's mysterious $50 Million loan... to himself

POSTED BY: CAPTAINCRUNCH
UPDATED: Monday, November 18, 2019 16:32
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Monday, November 18, 2019 1:52 PM

CAPTAINCRUNCH

... stay crunchy...


There's so much smoke ... once a fraudster, always a fraudster:

https://www.motherjones.com/politics/2019/09/donald-trump-has-never-ex
plained-a-mysterious-50-million-chicago-unit-acquisition-loan-is-it-evidence-of-tax-fraud
/

"Donald Trump’s massive debts—he owes hundreds of millions of dollars—are the subject of continuous congressional and journalistic scrutiny. But for years, one Trump loan has been particularly mystifying: a debt of more than $50 million that Trump claims he owes to one of his own companies. According to tax and financial experts, the loan, which Trump has never fully explained, might be part of a controversial tax avoidance scheme known as debt parking. Yet a Mother Jones investigation has uncovered information that raises questions about the very existence of this loan, presenting the possibility that this debt was concocted as a ploy to evade income taxes—a move that could constitute tax fraud.

Here’s what is publicly known about this mystery debt: On the personal financial disclosure forms that Trump must file each year as president, he has divulged that he owes “over $50 million” to a company called Chicago Unit Acquisition LLC. The forms note that this entity is fully owned by Trump. In other words, Trump owes a large chunk of money to a company he controls.

“We don’t assess any value to it because we don’t care,” Trump said of the loan. “I have the mortgage. That is all there is. Very simple. I am the bank.”
The disclosures state that this loan is connected to Trump’s hotel and tower in Chicago, and the forms reveal puzzling details about Chicago Unit Acquisition: It earns no revenue—suggesting that Trump was not paying interest or principal on the loan—and Trump assigns virtually no value to Chicago Unit Acquisition. Something doesn’t add up. Under basic accounting principles, a firm that is owed money and has no outstanding debt should be worth at least as much as it is owed. The loan has another odd feature: It is identified as a “springing” loan, a type of loan made to borrowers who are viewed as credit risks. Known sometimes as “bad boy” loans, these agreements allow the lender to impose harsh repayment terms if certain criteria aren’t met. These are not the type of loan terms that someone is likely to impose on himself.

The Trump Organization has consistently refused to answer questions about Chicago Unit Acquisition, a limited liability company it formed in Delaware in 2005, as construction began on the Trump International Hotel and Tower in downtown Chicago. But Trump did tell the New York Times in a 2016 interview that this debt represents a loan he repurchased from a group of lenders. “We don’t assess any value to it because we don’t care,” Trump said. “I have the mortgage. That is all there is. Very simple. I am the bank.” Jason Greenblatt, who was then the Trump Organization’s top lawyer, declined to explain to the Times the reason for the Chicago Unit Acquisition deal. “It’s really personal corporate trade secrets, if you will,” he said. “Neither newsworthy or frankly anybody’s business.”

Trump has not publicly identified the creditors from whom he bought this loan. But a 2008 lawsuit Trump filed in connection with the Chicago project—a case that produced voluminous records detailing the financing of this venture—suggests two possibilities. The majority of the hotel and tower project was bankrolled by Trump’s lender of choice, Deutsche Bank, which gave him a $640 million loan. Fortress Investment Group, a New York City-based hedge fund, provided Trump an additional $130 million in financing. (Two other firms, Cerberus Capital Management and Dune Capital Management, partnered with Fortress on this loan.) According to court records, these were the only loans associated with the construction and development of Trump International Hotel and Tower Chicago.

Trump’s Chicago project quickly became a financial debacle—hence the lawsuit. The 2008 financial crisis struck as the project neared completion, and Trump, saddled with nearly $800 million in debt, was in jeopardy of defaulting on a $330 million payment he owed to Deutsche Bank in November that year.

To fend off his biggest creditor, Trump attempted a brazen legal gambit. He sued Deutsche Bank, accusing the firm of causing the housing crisis and economic meltdown that was supposedly inhibiting his ability to sell units in the Chicago project and repay his debts. Eventually, Trump settled his financial differences with Deutsche by repaying some of the money he owed the bank and refinancing the rest through the bank’s private banking arm, according to records filed with the Cook County Recorder of Deeds. That is, Trump took out a new loan through Deutsche’s private bank to cover his debt to the firm’s commercial lending side. This transaction apparently did not involve purchasing any debt, suggesting the debt that Trump claims to have bought could not be from the Deutsche Bank loan. That leaves the Fortress debt."

Hrm, lessee... a Company named Chicago Unit, based in NY, and only exists on paper. Seems legit...

Much, much more here:

https://www.motherjones.com/politics/2019/09/donald-trump-has-never-ex
plained-a-mysterious-50-million-chicago-unit-acquisition-loan-is-it-evidence-of-tax-fraud
/

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Monday, November 18, 2019 2:01 PM

THG


His problems are just starting G.
T

Deep state describes dedicated, educated professionals.

Room rates across President Donald Trump's global hotel empire have nosedived by as much as 63 percent since he moved into the White House while the billionaire continues to deal with allegations of conflicts of interest since taking office.
Twelve of Trump's 13 titular hotels experienced a decline in room rates when comparing prices from January 2017 to January 2018, according to the Telegraph, which cited travel currency service FairFX.

Prior to his inauguration, a two-night stay at Trump Las Vegas cost $844, but now goes for $314, the biggest fall for one of the president's properties.
Trump Turnberry, a United Kingdom property that includes a signature golf course, experienced the next-highest drop of 57 percent, followed by Trump Doral in Florida at 53 percent and Trump's controversial Washington D.C. hotel at 52 percent.

https://www.newsweek.com/trump-hotel-prices-drop-organization-717189

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Monday, November 18, 2019 3:17 PM

6IXSTRINGJACK

[/i]


Doesn't have anything to do with this...

https://www.latimes.com/travel/lasvegas/la-tr-las-vegas-fees-may-mean-
fewer-visitors-20180501-story.html


Nah.

Fuck Occam's Razor. We've got an agenda to push.

Do Right, Be Right. :)

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Monday, November 18, 2019 3:38 PM

CAPTAINCRUNCH

... stay crunchy...


Quote:

Originally posted by 6IXSTRINGJACK:
Doesn't have anything to do with this...

https://www.latimes.com/travel/lasvegas/la-tr-las-vegas-fees-may-mean-
fewer-visitors-20180501-story.html


Nah.




You're right - nah. It's because of his big fat mouth:

https://www.cheatsheet.com/culture/u-s-cities-losing-millions-in-touri
sm-business-under-donald-trump.html
/

"As an economic force, the American tourism industry has few equals. According to U.S Travel Association, one in nine jobs feeds off it. Aviation workers, shop owners, tour guides, hotel staff, taxi drivers, restaurant employees, and bartenders — along with so many other middle-class professions — need a robust tourism industry to survive.

So when a successful hotel owner became 45th president of the United States, this sector seemed poised for growth. Instead, President Donald Trump issued a travel ban and started tweeting hostile messages to nations around the globe. Not surprisingly, foreign tourists responded by taking their vacations elsewhere. In total, forecasters at Tourism Economics estimated the industry lost $2.7 billion in the months after Trump took office."


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Monday, November 18, 2019 4:02 PM

THG


This is new G.
T

Deep state describes dedicated, educated professionals.

Trump Admin No Longer Considers Israeli Settlements In West Bank To Be Illegal |


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Monday, November 18, 2019 4:32 PM

6IXSTRINGJACK

[/i]


lol

Who gives a shit about Trump Towers?

Don't you guys have an impeachment inquiry to keep you busy now? You've only been begging and pleading for it for 3 years now.


FOCUS

Do Right, Be Right. :)

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