Thursday, November 18, 2010

Donald Trump Accused of Fraud and Racketeering

Donald Trump accused of pulling some funny business involving one of his Central American investments.

Palm Beach fixture Donald Trump is being sued for fraud and racketeering in connection with his development of a luxury hotel/condo high-rise in Central America that’s allegedly turning out to be a lot less fancy than investors believed.

The star of NBC’s The Apprentice along with a partner, Panamanian developer Roger Khafif, are the targets of a federal lawsuit brought last week in West Palm Beach by 33 investors from Florida, New York, New Jersey and Russia.

The investors say Trump and Khafif wined and dined them at Mar-a-Lago in Palm Beach in 2007, and Russia in 2006, then changed the terms of their deals as they finish the Trump Ocean Club in Panama City, Panama.

While the architecturally-breathtaking building is slated to open in the spring, the investors claim they were offered to put down 30 percent of the pre-construction prices of condos, in the $500,000-range. The Trump Organization was supposed to finance the remaining 70 percent.

Now, according to the lawsuit, Trump and Khafif decided this summer not to finance the 70 percent.

And that’s just one of several changes made without the investors’ knowledge, according to the paperwork.

The hotel’s beach club, at first planned for the exclusive Contadora Island, has been moved to the more down-market Isla Sabago.

The apartments, meanwhile, are smaller than originally promised, according to the lawsuit.

And Trump, who originally said his company would open a casino in the hotel, changed his mind.

Neither Trump nor the investors’ lawyer commented.
Jacked from Page 2 Live


Anonymous said...

Quick get a search warrant - he hides everything under that combover....

Anonymous said...

yeah,his wig is involved in the fraud....
they should diff start their search there.

Anonymous said...

Why does this not surprise me? This man has filed bankruptcy more times than Kim Kardashian has been dumped by dudes--Mainly because he is honestly a bad business man with bad business ethics. But yet he is allowed to have the Apprentice show spotlighting budding business exe's was always a damned joke to me!!! I honestly do not know or understand how Trump is allowed to go with his shams and so forth. Had this been anyone of color, they would have been washed up years ago.--ThatBKChick

Anonymous said...

Agreed w/10:15

He belonged to my dad's golf club and was kicked out for betting, etc .... and for just being unethical all around. That's why he built his own golf club (the first one). The man is uncouth.

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