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MEMORANDUM

TO: RepresentativeJackieSpeier HouseofRepresentatives California,14thDistrictFROM: TomAdamsandDennisAftergutDATE: January9,2018 UpdateJanuary16,2018

RE: TheTrumpOrganization–ARacketeeringEnterprise?

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IntroductionandSummary InvestmentsbyDonaldTrumpandtheTrumpOrganizationrevealpatternshighlysug-gestiveofcriminalconduct,particularlyofmoneylaundering.MultiplepubliclyavailablesourcesreportthatTrumpregularlyhadinvestmentpartnerswhowerecriminalsandhadcon-sistentlinkstomoneylaunderingentities.QuiteoftenTrump’snominalbusinessfailedcom-mercially,suggestingthataconcealed,illicitbusinesswastherealpointoftheundertaking.In-vestmentsinhotelsinToronto,SoHo,Baku,Azerbaijan,andPanamaappeartobetheculmina-tionofastrategybasedonthesepatterns. Butbeyondthesehallmarksofcriminality,Trump’senterprisesbearincommonanoth-er,strikingcharacteristic:Russiansplayapredominantrole.SomeoftheseRussianshadlinkstoVladimirPutin.Trump’sinvolvementwithRussiansgoesbackdecades. SpecialCounselRobertMuellerisnowinvestigatingwhetherunlawfulactswerecom-mittedduringthecourseofthe2016PresidentialelectioninconnectionwithRussianinterfer-ence.ThefactthatRussiansalsoconsistentlyappearinTrump’sinvestmentsraisessignificantquestions.Mostimportantly,aretheseseeminglydisparateeconomicandpoliticalthreadsactuallypartofasinglecloth? ThePresidenthassaidthatiftheSpecialCounsel'sinvestigationmovesintohispersonalfinances,itwillcrossa“redline.”IsthatbecauseTrumpfearswhatwillbediscovered?Wascriminalconductinhisprivateinvestmentslinkedtoeventsthatoccurredintheelection? TheSpecialCounselhasmanytoolsathisdisposaltouncoverfactscurrentlyconcealed.TheForeignCorruptPracticesAct(FCPA)requiresTrumptohaveconductedalevelofduedili-gencewithrespecttohisforeigninvestmentsthatwasapparentlylacking.ItappearsthatTrump,inviolationoftheFCPA,turnedablindeyetoobviouscorruption.TheRacketeeringandCorruptOrganizationsAct—RICO—criminalizescorruptenterprisesthatconductmoneylaundering,evenwhenitoccursabroad. TrumpandtheTrumpOrganizationwerebasedinNewYork.NewYorkhasitsowncriminalstatuteprohibitingenterprisecorruption.Significantly,Trump’spardonpowerdoesnotextendtostatecrimes. BothRICOandNewYorklawauthorizeforfeitureofpropertyobtainedunlawfully. Ifnotalreadydoingso,shouldSpecialCounselMuellerandNewYorkAttorneyGeneralSchneiderman,bothcapableprosecutors,belookingcooperativelyandcomprehensivelyattheentiretapestry:therolesRussiansplayedbotheconomicallyandpolitically?Shouldoneorbothofthemseekforfeitureofanyill-gottengainsobtainedbyTrump,hisfamily,ortheTrumpOrganization?

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TrumpCasinos

AnexaminationoftheTrumpOrganizationasacriminalenterprisemustbeginwithitsdomesticroots.Trumpcasinosareagoodplacetostart.Trump’sexperiencethereprovidedablueprintforlaterTrumpenterprises.Inthecasinobusiness:

• Pushinglegalconstraintsmayinvolve“acceptable”risks.• Theremaybeanopportunitytoengageinmoneylaundering.• Moneycanbemadewithouttheoperationalsuccessofthe“nominal”business.Moneylaunderingistheprocessof"cleansing"theprofitsofcriminalactivitybyengag-

inginlegitimatetransactionsthatmaketheill-gottengainsdifficulttotrace.AsAdamDavidsonreportsintheNewYorker:“Casinoscanmakeitremarkablyeasytoallowpeople,suchasdrugdealersorcorruptoligarchs,tousefundstheyobtainedillegally.…Amoneylaunderercanhandastackofbillstoacasinocashierandreceivechipsforbettingongames.Thechipscanbere-turnedforcashthatwillbereportedaswinningstotheI.R.S.Casinoscanmakeafairbitofmoneythisway.Moneylaundererswill,typically,aimtogamblewith—and,inevitably,lose—someoftheirmoneytodisguisetheiractivity.”1

Acriminalwhomaycaremoreabout“cleansing”moneythanlosingsomeofit,couldbe

attractivetoabusinessthatneedscashdesperatelyenoughnottolooktoocloselyatthesourceofthefunds.Failureofthenominalbusiness,togetherwithothersignificantfactors,canraisethesuspicionofexperiencedinvestigatorsthatsomethingmorethanthenominalbusinessisgoingon.

Pushinglegalconstraintsmayinvolve“acceptable”risks.

Fromthestart,Trump'scasinocompaniesdevelopedapatternandpracticeofviolating

gaminglawsandprohibitionsonracialdiscrimination.Evenafternumerouswarningsfromgov-ernmentalagencies,violationscontinued.TrumpTajMahaleventuallyadmittedtowillfulviola-tionsofBankSecrecyActanti-moneylaunderingrequirements.

Between1990and1999,NewJerseycasinoregulatorsfinedTrumpcasinosmorethan

$1millionformultiple,separateoffenses.2Becausethecasinoindustryhaslongenabledmoneylaundering,theBankSecrecyAct,

adoptedin1970,requiresrobustrecordkeepingbycasinosasacheckonthatandotherillegalactivity.3

In1998aU.S.TreasuryDepartmentagency,theFinancialCrimesEnforcementNetwork

(FinCEN)announceda$477,000civilpenaltyagainstTrumpTajMahalAssociatesforviolationsoftheBankSecrecyActcommittedduring1990and1991.4

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Thenin2015,FinCENlevieda$10millioncivilpenaltyagainstTrumpTajMahalCasinoResort.ThecasinoadmittedtoseveralwillfulviolationsoftheBankSecrecyActandAnti-MoneyLaunderingprovisions.TheFinancialCrimesEnforcementNetworkreportedthatre-peatedviolationshadcontinuedforyears,datingasfarbackas2003,5aperiodwhenMr.Trumpwasthechiefexecutiveofthecasinocompany.6

“TrumpTajMahalreceivedmanywarningsaboutitsdeficiencies,”saidFinCENDirector

JenniferShaskyCalveryin2015.“Likeallcasinosinthiscountry,TrumpTajMahalhasadutytohelpprotectourfinancialsystemfrombeingexploitedbycriminals,terrorists,andotherbadactors.Farfrommeetingtheseexpectations,poorcompliancepractices,overmanyyears,leftthecasinoandourfinancialsystemunacceptablyexposed.”7 MoneyMadeWithoutOperationalSuccess WhentheTrumpTajMahalopenedin1990,Trumptoutedthatitwouldbethe“eighthwonderoftheworld.”Butfromthebeginning,itsbusinesswasbuiltonunmanageabledebtandexcessivecosts.EvenbeforetheTajopened,theNewJerseyCasinoControlCommissionexpressedconcernaboutitsviabilitygivenitsrapidlyescalatingcosts.8 MarvinRoffman,ananalystfortheWallStreetJournal,saidsoatthetime.HereportedthattheTajwouldneedtoreelin$1.3millionadayjusttomeetitsinterestpayments,asumnoAtlanticCitycasinohadeverachieved.“Themarketjustisn’tthere,”Mr.RoffmantoldtheJournal.9Makingmattersworse,Trumpfailedtorunthebusinesscapably:duringa5-yearpe-riodwhenrevenuesatotherAtlanticCitycasinosrose18percent,Trumpcasinorevenuesfellby1percent. Justoneyearafteritopened,TrumpTajMahalwasheadedforitsfirstoffourbankrupt-cies.InAugust1990,Trumphadover$800millioninloansthathehadpersonallyguaranteed.Protectinghimself,hepaidoffthesedebtsthroughfundsraisedfromshareholdersandbond-holders.WhenTrumpfiledhissecondTajbankruptcyin2004,thebondholderstooka$500mil-lionloss.Inthethirdbankruptcyin2009,thebondholderslost$1.3billion.10Trumphimselfmademoney.11 In2014,theTajfiledforbankruptcyprotectionforthefourthtime.Thereason?Ac-cordingtoTrump,itwasthedebtlevelassumedafterthe2009bankruptcy,whenhenolongercontrolledthecompany. Otherssawitdifferently.“PeopleunderestimatedDonaldTrump’sabilitytopillagethecompany,”saidSebastianPignatello,aprivateinvestorwhoatonetimeheldmorethan$500,000ofstockintheTrumpcasinos.“Hedrovethesecompaniesintobankruptcybyhismismanagement,thedebtandhispillaging.”12

WhatwasgoingonattheTajduringtheyearsitfailedtofilereportsdesignedtodetectmoneylaundering?FinCENdidnotchargetheTajwithactualmoneylaundering.Therecords

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thatmighthaveidentifiedillicitpracticesdidnotexist,makingmoneylaunderingdifficulttoprove.However,theTajadmittedthatitsrecord-keepingviolationswerewillful,nottheresultofnegligence.Giventhisfact,onewonderswhattheTajwashidingwhileitsrecord-keepingdutieswerewillfullydisregarded. Thereislittledoubtthattherearelessonsthatcouldeasilyhavebeenlearnedfromthecasinoventures.Aprojectneednotsucceedoperationally-thecasinosenduredmultiplebankruptcies.Trumpendurednone.Hislenders,partnersandinvestorslostfortunes.Trumpmademoney.Trumpcouldskirtregulationsyetwalkawaywithoutbeingpersonallyconvictedofanycrimes.CondosandCriminals,EspeciallyoftheRussianVariety

MoreorlessconcurrentlywiththehistoryoftheTrumpTajMahal,Trumpwasconduct-ingsomeveryunusualresidentialpropertysales.Featuresofthesetransactionssuggestthatmoneylaunderingtookplace.

Althoughmoneylaunderinginrealestatecanbecomplicated,thebasicpatternsarefairlysimple.Someonecouldusetheproceedsofcrimetopurchaserealestateandsubse-quentlysellit,convertingthedirtymoneytosaleproceeds.Alternatively,hecouldtakeoutanequityloanontheproperty,convertingthedirtymoneytoloanproceeds.

In1984,DavidBogatin,aRussianemigrewithfewapparentfinancialresources,pur-chasedfiveunitsintheTrumpTowerfor$6millioncash.ThetransactionwassounusualthatTrumppersonallyattendedtherealestateclosing.Justthreeyearslater,in1987,BogatinpleadedguiltytotakingpartwithRussianmobstersinamassivegasoline-bootleggingscheme.ThegovernmentseizedhisfivecondosatTrumpTower,assertingthatBogatinhadpurchasedthemto“laundermoney,toshelterandhideassets.”13TheBogatinall-cashtransactionandhissubsequentcriminalconvictionhadtooperatetoputTrumponnoticethatlargeall-cashsalesshouldattheveryleastraiseaquestionaboutmoneylaundering.

In1998,Russiadefaultedon$40billionindebt,causingtherubletoplummetandRus-sianbankstoclose.Theensuingfinancialpanicsentthecountry’soligarchsandmobstersscramblingtofindsafehavensfortheirmoney.14 Aneventofthismagnitude,especiallycomingontheheelsoftheBogatincrimes,shouldhaveputhimonfurthernoticethatall-cashsalestoRussiansmightbesuspect. Itwasnosecretthatinvestinginhigh-endrealestateatthattimeofferedcriminalen-terprisesanidealvehicletolaundermoney.“Duringthe’80sand’90s,weintheU.S.govern-mentrepeatedlysawapatternbywhichcriminalswouldusecondosandhigh-risestolaundermoney,”saidJonathanWiner,adeputyassistantsecretaryofstateforinternationallawen-forcementintheClintonadministration.15

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ConstructionoftheTrumpWorldTowerbeganin1999.13peoplewithknownoral-legedlinkstoRussianmobstersoroligarchscametoownorliveinthatTowerandotherTrumpproperties.

Twosuspectedmobsters,bothTrumpTowercondoowners,wereassassinatedonthe

street,oneinNewYork,theotherinMoscow.16Oneofthem,anotoriousRussiangangsternamedVyachelsavKirillovichIvankov,wasshotonthestreetsofMoscowafterbeingextraditedtoRussiain2009formurdercharges.17IvankovhadbeenthoughttobeanenforcerforSemionMogilevich'sRussiancrimesyndicateinNewYork,theBrightonBeachmob,afterMogilivechsprangIvankovfromaRussianprisonin1991.TheFBIconsidersMogilevichtheRussian“bossofbosses.”

In2013,NewYorkpolicearrested29suspectsforallegedlyrunninggamblingringsand

moneylaunderingoutoftwoTrumpTowercondos,oneofwhichoccupiedanentirefloor.18TwosuspectswereRussianownersofTrumpcondosinFlorida.AnotoriousRussianmafiaboss,AlimzhanTokhtakhounov,wastheonlysuspecttoslipaway.SevenmonthsaftertheApril2013raid,heappearednearDonaldTrumpintheVIPsectionoftheMissUniversePageantinMos-cow.19TokhtakhounovwasstillatlargeasofMay2017.20

Overtheyears,sixty-threebuyerswithRussianaddressesorpassportsspent$98million

onTrumppropertiesinsouthFlorida.21Inoneofhismostinfamoustransactions,TrumpsoldamansioninPalmBeachtoRus-

sianoligarchandbillionaireDmitryRybolovlevfor$95million.22Trumphadpurchaseditonlyfouryearsearlierfor$41million,makingonlymodestimprovements.23

Rybolovlev’spurchaseoccurredinJuly2008,inthedepthsofrecession,whentherealestatemarkethadtanked,especiallyinFlorida.Thatsameyear,Trumpfacedsignificantdebtpayments.Hewasunabletomakeapaymentonabankloanfor$40Millionthathehadper-sonallyguaranteed.TrumpEntertainmentResorts,whichownedtheTrumpTajMahalcasinoinAtlanticCity,faceda$53-millionpaymenttobondholders.24

Rybolovlevdidnotpayapremiumforthemansionbecausehelovedit:inshortorder,

hetoreitdowntoresellthepropertyaslots.Ifthatwasabusinessstrategy,itfailed:areales-tateagentquotedintheMiamiHeraldinMarch2017saidthatRybolovlevmaylose$20millionontheoveralltransaction.25

Inanyevent,Trumpreceived$95million,$54millionmorethanhehadpaidjustfour

yearsearlier,a125%gainatatimewhenhousingvalueswerecollapsing.

AndwhatofRybolovlev?ApotashminethatRybolovlevownedinRussiahadcollapsed,causingenormousdamage.Rybolovlevfacedpunitivefinesandeventhelossofthemine.ButfourmonthsafterRybolovlevboughtTrump’sFloridaproperty,theRussiangovernmentruled

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thattheminehadnotcausedthedamage,blamingthecollapseonlong-deadStalin-eraplan-ners.ThestockpriceofRybolovlev’sminingcompanysoared.26 Trumpconductedalotofbusinesswithcriminalsinhisresidentialrealestatebusiness.AgoodpercentageofhiscondobusinessinvolvedpeoplewhoweretakingmoneyoutofRussia.Onceagain,Trumpwasnotpersonallychargedwithanycrime.Again,hemademoney.ABusinessStrategy? Wasastrategybornoftheseexperiences?Investinginaprojectthroughlicensingtheuseofthename“Trump”wouldseeminglyavoidthepersonalliabilityrisksthatTrumpexperi-enced(butavoided)duringhiscasinoyears.Yet,asalicensor,hecouldretainsignificantcon-trolbyinsistingthataprojectmeetseveralqualitystandardsinordertoprotecthisname. Whateverhismotivation,Trumpsoonannouncedfournewhotel/condoprojects.Thefirst,inToronto,wasannouncedin2002.27TheSoHohotel/condoprojectinNewYorkCity,an-nouncedin2006onTrump’stelevisionshow,TheApprentice,openedin2008.28Anotherpro-jectinPanamaCity,Panama,announcedin2006,launchedin2011.29Ahotel/condoprojectinBaku,Azerbaijanwasannouncedin2012.30

Whythehotel/condohybrid?Therecouldbemanyreasons,butonemightbethatcon-dosarearealestateinterestthatcanbesoldseparatelyfromtheoverallproject.Thesecondosprovidedanopportunityformoneylaundering,ashadoccurredwiththeTrumpTowercondos.Moneylaundererscouldconvertfundsusedtopurchaseanindividualcondointoloanproceedsorsaleproceedsevenwhilethehotelitselffacedforeclosureandnewownership.

Theconstructionphaseofthehotelcouldprovideanothermoneylaunderingopportuni-

ty.AsAdamDavidsonwritesinhisdevastatinganalysisoftheBakuproject:“Moneylaunderersloveconstructionprojects.Theyattractlegitimatefundsfromgovernmentsandprivateinves-tors,andtheyrequirefrequentpayoutstolegitimatesubcontractors:cementfactories,lum-beryards,glassmanufacturers,craftsmen.”Thepaymentscouldbemadefrom“dirty”moneythatcoulddifficulttotrace.Aprojectwithveryexpensiveuniquefeatures,suchasaTrumpbrandedhotel,wouldrequireconstructioncontractswhereitcouldbedifficultforoutsiderstoassesswhetherlargepaymentstocontractorsincludedmoneylaundering.

Excessiveconstructioncosts,however,haveinevitableconsequences.Makingthepro-

jectmoreexpensivemakesithardertosucceed.However,theTrumpOrganizationpositioneditselfas“mere”licensor,notanequitypartner.Ifprojectinvestorsandlendersendupbearingthoselosses,well,thatissomethingthatTrumphadpreviouslyenduredandsurvived.31

Lookingatthesefourprojects,itbecomesapparentthattheysharecertainkeycharac-

teristics:• Eachprojectinvolvedoneormorepartiesallegedorproventobecriminals.• EachprojectincludedRussiansorpartiesfromtheformerSovietUnion.

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• Eachprojectwaslinkedtomoneylaundering.• Eachprojectreportedlyincurredexcessivecosts.• Ineach,theTrumpOrganization,nominallyalicensor,playedasignificantrole.• Significantly,notonewasacommercialsuccess.

Thecombinationofsuchsuspiciousfactorsandtheirrepetitionacrossarangeofpro-jectsraisesaprofoundlytroublingquestion:IstheTrumpOrganizationaracketeeringenter-prise? Itwouldtakeathoroughinvestigationtogetthefullstory;butlet’sexaminethepubliclyreportedfacts.

TheTorontoHotel

KeyinformationabouttheTrumpInternationalHotelandTowerinTorontocomesfrom

reportingbytheTorontoStarandColumbiaJournalismInvestigations.32Thatreportingrevealsthatthisprojectpossessedthecorecharacteristicssharedbylaterprojects.

First,criminalinvolvement.Trump’sinitialpartner,LeibWaldman,hadfledtheU.S.af-

terpleadingguiltytobankruptcyfraudandembezzlementin1995.33Trump'sotherpartnersincludedamanwhoillegallyconvertedaNewYorkfactorytoloftsonlytohavetheCityorderallhistenantsevictedtoprotectthemfromhazardousconditions.Anotherpartnerownedanursinghomecompanythatwascutofffromfederalfundingduetoconcernsthattheresi-dents’safetywasatrisk.Fourforeignpartnersinvestedthroughshellcompanies.34 Second,Russianengagementcriticaltotheproject.AlexShnaider,aRussian-bornCa-nadiannationalbecamethenewprincipaldeveloperin2004.Shnaiderhadnoprevioushotelorcondodevelopmentexperience.Hismostapparentqualification:hehadmadealotofmoneyquicklyintheformerSovietUnion.35NewlightwascastonMr.Shnaider'son-goingconnec-tionswithRussianmoneyandRussianeconomicinstitutionsin2010,whenhesoldhiscompa-ny’sshareinaUkrainiansteelmakerforabout$850milliontoaRussian-controlledbank,VEB.Atthetime,VladimirPutinwasthechairofVEB’ssupervisoryboard.Thetransactionapparent-lyservedRussianstrategicpurposesbygivingitkeyassetsintheUkrainianeconomy.36 FinancingfortheTorontoprojectcamefromanAustrianbankwithnopriorexperienceinCanadiandevelopmentandwhichpreviouslyhadbeenaccusedofactingasaconduitforRussianmoneylaundering.37

Third,salespracticesfeaturedmisrepresentationstopotentialbuyers.Atonepoint,

Shnaidersaidthat75%oftheunitsweresold.Afewmonthslater,Trumpsaidthenumberwas70%.Later,thedevelopmentcompanysaid60%.Ayearlater,thecompanyadmittedthatfew-erthan50%weresold.38

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Aclassactionsuitbasedonthesemisrepresentations,filedonbehalfofbuyers,ispend-inginToronto.39

Fourth,constructioncostsspiraledwildlyoutofcontrol,afeaturethatbyitselfraisesthesuspicionofmoneylaundering.Whenthebankloanontheprojectwasdepleted,thein-vestorshadtocomeupwithanadditional$106million.AdamPowadiuk,directorofcommer-cialfinanceatFirstNationalFinancial,arealestatelenderinToronto,saidtheamountofdebtontheprojectswas“enormous”and“verystrange”intheCanadiancontext.40

Fifth,thisprojectwasnotjustacommercialfailure;itwasuniquelysoinaveryfavora-blemarket.Inthelastdecade,morethan400condominiumtowersof14floorsormorehavebeensuccessfullybuiltinToronto,accordingtoCityHallrecords.Onlyonewentbankruptaftercompletion:TheTrumpInternationalHotelandTowerToronto.41

Unlikehisinvestors,DonaldTrumpdidnotlosemoney.42 Hisnamehasnowbeendroppedfromtheproject.43 Sixth,signsofduediligencearemissing.ThisisparticularlytellingsinceTrump’sleaddeveloperhadnohoteldevelopmentexperience,couldnotgetalocalbanktolendonthepro-jectandhadtofinancethroughanAustrianbank,alsowithnorelevantexperience. TheSoHoHotel

InitiatedfouryearsafterTrumpInternationalToronto,theTrumpSoHoHotelsharedsimilarhallmarksofacriminalenterprise.

First,criminalassociationsonceagain.OneofTrump’spartnersintheprojectwasthe

BayrockGroup.44AprincipalofBayrock,aRussian,FelixSater,hadbeenconvictedofastabbingandpleadedguiltytoa$40millionstockmanipulationandmoney-launderingschemeinNewYorkState.45Anotherprincipal,TamirSapir,wasregardedbytheFBIasamemberofaRussianmobinBrightonBeach.46AprimaryfinancialbackerforBayrock,AlexanderMashkevich,aKa-zakhstanminingbillionaire,wasaccusedin2011byBelgianauthoritiesofrunninga$55millionmoney-launderingscheme.Mashkevichandtwopartnerspaidafine,admittingnowrongdo-ing.47

Second,inadditiontothepartners’Russianbackgrounds,importantsourcesofrevenueandfinancinghadRussianconnections.PrincipalfinancingcamefromtheFLGroup,anIceland-icbankfavoredbyRussians.SaterrecommendedtheBankbecauseitwasclosetoPutin.48

Third,aswithTrumpHotelandTowerToronto,salespracticesfeaturedmisrepresenta-

tionstopotentialbuyers.InvestorswhomadedepositsontheunitssuedtheTrumpOrganiza-tionforfraud,obtaininganunusuallyfavorablesettlement:90centsonthedollarplusattor-

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neys'fees.Inreturn,theinvestorsagreedtotheTrumps'demandthattheynotcooperatevol-untarilywithanycriminalinvestigation.ThatmaywellhavehelpedDonaldTrumpJr.andIvankaTrumpavoidchargesofcriminalfraudforfalsestatementstoprospectivebuyersaboutthenumberofunitssold.49

Fourth,thereisreasontobelievethatTrumpSoHowasneverfinanciallyviable,thatitin

facthadbeendesignedtomakemoneyinotherthantheordinaryways.Openedin2010,thecondo-hotelwentintoforeclosurein2014.50BrianHalberg,arealestateattorney,wasquotedintheWallStreetJournalatthetimeoftheforeclosuresaying:“Aluxurycondo-hotelinNewYorkisnotafeasiblebusinessproposition.”51

Whatwasitstrueraisond'être?TwoformerexecutivesfiledsuitagainstTrump’spart-

ner,theBayrockGroup,allegingthatthecompany’s“realpurpose”wastodevelophugelyex-pensivepropertiesbearingtheTrumpbrandandthenusethoseprojectstolaundermoneyandevadetaxes.52Thatsuitisnowscheduledtoproceedtotrialunderaracketeeringstatute53.TheFinancialTimesfoundthattheprojecthad“multipletiestoanallegedinternationalmoney-launderingnetwork.”54

TheFinancialTimeshasalsolinkedmoneylaunderingbyViktorKhrapunovtothepur-

chase(throughshellcompanies)ofTrumpSoHounits.Khrapunov,theformerenergyministerofKazakhstanandex-mayorofitscapital,Almaty,hasbeenaccusedoflootinghundredsofmil-lionsofdollarsofpublicassetsfromthatcity.Khrapunovcontendsthatallofhisfamily’swealthwasmadelawfullyandthattheaccusationsarepoliticallymotivated.55

Fully,seventy-sevenpercentofthecondosalesintheSoHoHotelweretoshellcompa-nies.Thesamerealestatelawyerhandlednearlyhalfofthosesales.FourofthedeedstoshellcompanylistedaMoscowaddressthatwascrossedout,thelawyer’saddresswassubstituted.56 RossDelston,aWashington,D.C.,lawyerandmoneylaunderingexpertwhohascon-sultedfortheJusticeDepartmentisquotedinBuzzFeedassaying:“Having77%ofthetransac-tionstoanonymousbuyersraisestheprobabilitythatthereareredflagsformoneylaunderingandotherfinancialcrime.”57

Followingits2014foreclosure,TrumpSoHohasstruggledtoattractguestsatfive-star

prices,droppingitsratesinordertokeeproomsoccupied.Theremainingcondoshavebeenslowtosell.Thebuilding’smainrestaurantclosedinApril2017.

OnNovember22,2017,theTrumpOrganizationannouncedthatithadreachedadeal

tosellitsinteresttotheCIMGroup.Underthedeal,CIMcanremovetheTrumpname.58

TheBakuHotel In2012,theTrumpOrganizationexportedoverseasthelessonslearnedinNorthAmeri-

ca,andaddedoneortwomore.Theindiciaofcriminalityareevenmoreglaring.

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First,TrumpInternationalTowerandHotelBakuislocatedinAzerbaijan,oneofthe

mostcorruptcountriesintheworld.Second,thedevelopersaregovernmentofficialsandtheirfamilies,widelybelievedto

becriminals.ThedevelopersoftheprojectarecloserelativesoftheTransportationMinister,ZiyaMammadov,whobecameabillionairewhileworkingonamodestcivilservant’ssalary.Theheadsofthedevelopmentcompanyarehisbrother,EltonMammadov,andhisson,AnarMammadov.EltonwasaprominentmemberofParliament.TheMammadovfamilyisknownas"TheCorleonesoftheCaspian.”59ZiyaMammadovhasbeeninvolvedinseveralmultimillion-dollarcontractswiththeCEOofaconstructionfirmcontrolledbytheU.S-sanctionedIranianRevolutionaryGuard.

Third,theconstructionpricesweremultiplesofwhatwouldbeexpectedandthecon-

tractorswerepaidincash,includingonecashpaymentfortwomilliondollars.Twoindividualswhoworkedontheprojectreportedthatbribeswerepaid.Peoplewerewalkingoutwithduf-felsfullofcash.60MoneywasgoinginandoutoftheU.S.,theUnitedKingdom,Turkey,Roma-nia,theUnitedArabEmirates,andseveralothercountries.Withsuchprojects,itcanbeex-ceedinglydifficulttodetectthespreadofillicitfunds.61

Fourth,inconceptandorigin,theprojecthadabsolutelynoprospectoffinancialsuc-

cess.Physicallycompletedbutneveropened,TrumpBakuwassupposedlyaluxurycondo-hotel,butjournalistAdamDavidsonfounditwaslocatedinasectionoftownunattractivetoawealthyclienteleandalmostimpossibletogetto:

[Itisin]theunderdevelopedeasternendofdowntown,whichisdomi-natedbytraintracksandismilesfromthemainbusinessdistrict,onthewestsideofthecity.Acrossthestreetfromthehotelisadiscountshop-pingcenter;theareaisfilledwithnarrow,dingyshopsandhookahbars.Otherhotelsnearbyarelow-budgetoptions:attheAYFPalace,mostroomsareforty-twodollarsanight.Therearenoupscalerestaurantsorshops.62

AformerAzerbaijaniTourismofficialasked:“Whywouldsomeoneputaluxuryhotel

there?Nobodywhocanaffordtostaytherewouldwanttobeinthatneighborhood.”63 Thebuildingnowstandsempty.In2016,theTrumpOrganizationannouncedthatitwas

abandoningtheproject.64 Fifth,reportedfactscontradictthecompany'sefforttoportrayitselfasapassivepartic-

ipantthatmerelylicensedtheTrumpname:• TheTrumpOrganizationretainedextensivecontrolofdesign.Atthetimeitentered

theprojectin2015,theTrumpOrganizationinsistedthatmostofthebuilding’sinteriorbegut-tedandrebuilt.

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• TheTrumpOrganizationhada“technicalservicesagreement”underwhichiten-gagedinextensiveoversight.“WewereinconstantcontactwiththeTrumpOrganization,"theAzerbaijanilawyerwhoworkedontheprojectreported."Theyapprovedthesmallestdetails.”Thisincludedmonthlysitevisitsandeventheapprovaloffurnitureandfabrics.IvankaTrumppersonallyvisitedtheprojectin2014.Shespecifiedcertainmaterials.Aphotoofherattheprojectonherownwebsitesaysthatshehas“overseen”theprojectdevelopment.65

• Trumpsignedacontracttomanagethehotelonceitopened.TheTrumpOrganiza-tionhadarighttoorderanindependentauditofthefinancialrecordsatanytime.66

Sixth,duediligencebytheTrumpOrganizationseemstobeeitherslimornone.Alan

Garten,theTrumpOrganization’schieflegalofficer,saidthatthepeoplewhohadoverseentheduediligencewere“nolongerwiththecompany.”Garten’spredecessoraschieflegalofficer,JasonGreenblatt,nowworksattheWhiteHouseasthePresident’sspecialrepresentativeforinternationalnegotiations.Gartendescribedthedocumentationitselfas“confidentialandpriv-ileged.”67

Eventhemostcursoryreviewoftheprojectwouldhaveuncoveredbasicproblems:the

corruptionoftheMammadovfamilyanditslinkstotheIranianRevolutionaryGuardhadbeendisclosedina2011WikiLeaksrelease,ayearbeforetheTrumpOrganizationannouncedtheBakudeal.Therewasasecondroundofdetaileddisclosuresin2013inareportfromRadioFreeEurope/RadioLibertyandtheOrganizedCrimeandCorruptionReportingProject.68

GartenadmitsthattheTrumpOrganizationbecameawarein2015ofthelinkstothe

IranianRevolutionaryGuard.However,theprojectcontractwasnotcancelleduntilDecember2016,amonthafterthePresidentialelection.69

Whydidittakeuntillate2016tocanceltheagreement?Gartensaystherewas“no

rush”;theprojecthad“stalled.”InApril2015,IvankaTrumphadsuggestedotherwise:shesaidthatthehotelwouldopenthatJune.WhyhadshenotrealizedonhervisitinApril2015thattheprojectwasbuiltonanimpossiblesiteanddoomedtofailure?Ms.TrumpdidnotrespondtoAdamDavidson’srequestforcomment.70

GartenalsosaidthattheTrumpOrganizationcouldnotsimplyabandonitsagreements.

Hedidnotsaywhythecompanydidnotexerciseitsrighttoorderanaudit.Nordidheexplainwhythecompanywasnotabletoterminatetheagreementin2015,butwasabletoafterTrumpwaselectedin2016.NorhasanexplanationbeenofferedastohowtheexistenceofaprivatecontractexcusesunlawfulengagementwithentitiessanctionedbytheUnitedStatesgovernment.71

ThePanamaHotel

TheindiciaofcriminalityoftheTrumpOrganization'sinvolvementinPanamamirroral-mostexactlythoseinAzerbajian.RecentcollaborativereportingbyNBCNews,ReutersandGlobalWitnesshasbroughtcrucialfactsaboutthisprojecttolight.72

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First,Panamais“perceivedtobehighlycorrupt."73ArthurMiddlemiss,aformerassis-tantdistrictattorneyinManhattanandaformerheadofJPMorgan’sglobalanti-corruptionprogram,toldReutersthattheFCPArequiresthosewhodobusinesstheretoperformduedili-genceonothersinvolvedintheirventures.Iftheyfailtodoso,hesaid,theyriskbeingcriminal-lyliableforturningablindeyetowrongdoing.74 Second,thepatternofcriminalassociationsremainsunbroken.PanamanianauthoritieschargedAlexandreHenriqueVenturaNogueira,theleadbrokerfortheproject,withfraudandforgeryafterheadmittedtomoneylaundering.Hefledthecountryafterbeingreleasedon$1.4millionbail.Nogueirawas“partners”withDavidHelmutMurciaGuzmán,currentlyinaU.S.prison,convictedoflaunderingdrugmoney.AnotherinvestorinVentura’sfirm,ArkadyVodovozov,wasconvictedinIsraelofkidnapping.75

Third,salespricesofcondosattheTrumpOceanClubwereatmultiplesofmarketvalue,

anotherhallmarkofmoneylaundering.WhenIvankaTrumpandrealestatebrokersdiscussedsettingaminimumpriceforthecondominiumsat$120,00,Nogueirarecommended$220,000.Heclaimedthathesoldunitsattheprojectfor“fiveorsixtimesthepriceofcomparableunitsinPanama.”76

Manyofthesaleswereallcash,wiretransfers,andmanyofthebuyerswereshellcom-

panies.VenturaNogueiraadmitsthathepurchasedatleast10unitsintheprojectonbehalfofconvicteddrugmoneylaunderer,DavidHelmutMurciaGuzmán.Inaddition,twoRussians,An-dreyBogdanovandIvanKazakikov,boughtatleastadozenunitsafterbringingmoneyintoPanama.Bothmenaresuspectedofmoneylaundering.77

Notingthatnumerouscondosalesweremadetoshellcompanieswithoff-shoreow-

ners,MauricioCeballos,aformerfinancialcrimesprosecutorinPanamahascalledtheTrumpOceanClubinPanamaCity“avehicleformoneylaundering.”78

Fourth,althoughitopened,theTrumpOceanClub,likeotherTrumphotel-condopro-jects,provedtobeawhiteelephant.Outof369totalcondos,202remainunsold.Thehotelhasstruggledwithlowoccupancyandroomratesaretoolowtocoverthecostsofunitmainte-nance.79

OnNovember27,2017,theAssociatedPressreportedthatthecurrentownersofthe

TrumpOceanClubareseekingtoterminatetheircontractwiththeTrumpOrganizationandtoremovetheTrumpnamefromthehotel.Nonetheless,Trumpreportedlyhasearnedover$30millionfromthisproject.80AmongtheclaimsmadebytheownersisthattheTrumpOrganiza-tionmisusedtheirpropertiesforitsowngain.TheTrumpOrganizationiscountersuingtheowners.81

Fifth,aswithTrumpBaku,theTrumpOrganizationclaimsthatitsonlyrolewasinthelicensingofitsname.Infact,aswithBaku,thecompanywasdeeplyinvolvedintheproject.

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• EricandIvankaTrumpconductedqualitycontrolandsiteinspection.“TheTrumpOrganizationhastoapproveeverythingbecauseofhisnameontheproject,”Nogueiratoldjournalists.82

• IvankaTrumpstarredinamarketingvideo.83• TheTrumpOrganizationmanagedthepropertyuponcompletion.84• AswithboththeTorontoandSoHoprojects,promotionalliteraturedescribed

Trumpasadeveloper.85

Sixth,theTrumpOrganizationdoesnotappeartohaveconductedduediligenceonthisin-vestment,despitetheobviousredwarningflags.

“Ihadsomecustomerswithquestionablebackgrounds,”Nogueiraacknowledged.“No-bodyeveraskedme.Developerdidn’taskand(the)TrumpOrganizationdidn’task.Nobodyasked,‘Whoarethecustomers,wheredidthemoneycomefrom?’No,nobodyasked.”86LegalImplications

Thereareseveralfederallawspotentiallyimplicatedincorruptforeignprojects.TheseincludetheForeignCorruptPracticesAct,whichbroadlyprohibitsofferingafor-

eigngovernmentofficialsomethingofsubstantialvaluetoinfluenceanofficialactortosecureanimproperadvantage.TheFCPAalsorequirescertainaccountingpracticesinordertopre-ventandallowthedetectionofcorruptpayments.87Ineffect,itimposesongoingduediligenceforanAmericaninvestorbycriminalizingwillfulblindnessordeliberateignoranceoftheunlaw-fulactionsofforeignassociates.88

InaleadingcaseundertheFCPA,arisingoutofAzerbaijan,theU.S.CourtofAppeals

upheldaconviction,sayingthat,regardlessofwhetherthedefendanthadknownaboutthebribes,“thetestimonyattrialdemonstratedthat[thedefendant]wasawareofhowpervasivecorruptionwasinAzerbaijangenerally.”TheFCPA,theCourtsaid,criminalized“consciousavoidance—adeliberateefforttoremaininthedarkaboutanytransgressionsaforeignpartnermightbeinvolvedin(emphasisadded).”89

TrumpevidentlyhadtheFCPAonhismindinMay2012,themonththattheBakudealwasfinalized.Inaphone-inappearanceonCNBC,heexpressedfrustrationwiththelaw.“Everyothercountrygoesintotheseplacesandtheydowhattheyhavetodo,”hesaid.“It’sahorriblelawanditshouldbechanged.”IfAmericancompaniesrefusedtogivebribes,hesaid,“you’lldobusinessnowhere.”Hecontinued,“Thereisoneanswer—gotoyourroom,closethedoor,gotosleep,anddon’tdoanydeals,becausethat’stheonlyway.Theonlywayyou’regoingtodoitistheotherway(emphasisadded).”90 TheRacketeerInfluencedandCorruptOrganizationsAct,commonlyknownasRICO,isyetanotherstatuteimplicatedbythiscourseofconduct.Itgenerallyprohibitsapatternofracketeeringactivity,meaningatleasttwocriminalacts,suchasmoneylaundering,mailfraud

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orotherspecifiedcrimes.91AracketeeringenterpriseunderRICOincludesanyindividual,part-nership,corporation,association,orotherlegalentityandanygroupofindividualsassociatedinfact,evenifnotalegalentity.92 IfthegovernmentprosecutesapersonasamemberofaRICOconspiracy,itneednotprovethatheagreedwitheveryotherconspirator,knewalloftheotherconspirators,orhadfullknowledgeofallthedetailsoftheconspiracy.Allthatmustbeshownisthatthedefendantagreedtoparticipateinaracketeeringenterpriseconsistingofatleasttworacketeeringacts,thatheknewthegeneralstatusoftheconspiracy,andthatheknewtheconspiracyextendedbeyondhisindividualrole.93 Adefendant’sguiltyknowledgeandparticipationintheconspiracymaybeinferredfromfactsandcircumstances.94Actingasa“licensor”wouldapparentlynotbeadefensesinceadefendantdoesnothavetoparticipateintheoperationormanagementoftheenterprisetobefoundliable.95 RICOalsoauthorizestheforfeitureofallunlawfulproceeds.96 Finally,RICOcanapplywhereverthemoneylaunderingoccurs,evenoutsideoftheUnitedStates.97ThefactthatinvestmentswereinAzerbaijan,CanadaandPanamawouldap-parentlynotbeadefensetoaRICOchargebasedonmoneylaundering. Additionally,giventhatTrumpandtheTrumpOrganizationwerebasedinNewYork,thatstate’sversionofRICOisalsopertinent.TheNewYorkstatuteisanalogoustothefederalRICOstatuteinthatitcriminalizes“enterprisecorruption.”98UnderNewYorklaw,adefendant(1)musthaveengagedinapatternofcriminalactivitythatincludesatleastthreeassociatedcriminalacts(2)withknowledgeoftheexistenceofthecriminalenterpriseand(3)withthein-tenttoparticipateinit.99 Moneylaunderingandfraudarecrimesthatcangiverisetoliabilityforenterprisecor-ruptionunderNewYorklaw.100Thefactthattheenterprisealsohaslegitimateoperationsisnotadefense.101Theintentandknowledgeofthepersonchargedcanbeprovenbyinferencesfromallthefactsandcircumstances.102TheNewYorkstatutealsoauthorizestheforfeitureofunlawfulproceeds.103 TheNewYorkAttorneyGeneralpossessessupervisoryauthorityoverNewYorkcorpora-tionssuchastheTrumpOrganization.TheAttorneyGeneralmayseektorevokeacorporatecharterifthecorporationhastransacteditsbusinessinapersistentlyfraudulentorillegalman-nerorhasabuseditspowerscontrarytothepublicpolicyofthestate.104 TherecentchorusofattacksontheSpecialCounsel'sinvestigation,andthemultiplewaysinwhichthePresidentcouldinterruptorendit,threatenourabilitytolearnthetruthaboutthe2016election.Discoveringwhetheranadversarynationhaddomesticcooperationin

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seekingtoaffectourelectionisamatterofvitalimportance.Fullknowledgealmostcertainlyrequiresthetoolsthatourlegalsystemgivestoskilledprosecutors. Fortunately,ourfederaliststructureprovidesthesetoolsattwolevels,federalandstate.Inthiscase,prosecutorsatbothlevelshaveauthorityoverpotentiallycriminalactsintheirjurisdictions,actsthatmaywellformacoherentfinancialandpoliticalnarrativeofwhathappened.Thesearchfortruthinbothjurisdictionsisurgent.©2018TomAdamsandDennisAftergut.ManythankstoDanaWelchforherexcellentediting. 1AdamDavidson,TheSenateStartsToLookatTrump’sBusiness,170512,TheNewYorker.2PhilipMattera,TrumpOrganization,CorporateResearchProject,http://corp-research.org/trump-organization;MichaelRothfeldandAlexandraBerzon,DonaldTrumpandtheMob,160901,WallStreetJournal.3AdamDavidson,TheSenateStartstoLookatTrump’sBusinesses,170512,TheNewYorker.4FinCENAnnouncesPenaltyAgainstTrumpTajMahalAssociates.January28,1998,U.S.De-partmentofTreasury.5FinCENFinesTrumpTajMahalCasinoResort$10MillionforSignificantandLongStandingAn-ti-MoneyLaunderingViolations.150306,U.S.DepartmentofTreasury.6ShawnTully,HowDonaldTrumpMadeMillionsOffHisBiggestBusinessFailure,160309,For-tune.7FinCENFinesTrumpTajMahalCasinoResort$10MillionforSignificantandLongStandingAn-ti-MoneyLaunderingViolations.150306,U.S.DepartmentofTreasury.8RussBuettnerandCharlesV.Bagli,HowDonaldTrumpBankruptedHisAtlanticCityCasinos,butStillEarnedMillions,160611,TheNewYorkTimes.9RussBuettnerandCharlesV.Bagli,HowDonaldTrumpBankruptedHisAtlanticCityCasinos,butStillEarnedMillions,160611,TheNewYorkTimes.10RussBuettnerandCharlesV.Bagli,HowDonaldTrumpBankruptedHisAtlanticCityCasinos,butStillEarnedMillions,160611,TheNewYorkTimes.11RussBuettnerandCharlesV.Bagli,HowDonaldTrumpBankruptedHisAtlanticCityCasinos,butStillEarnedMillions,160611,TheNewYorkTimes.12RussBuettnerandCharlesV.Bagli,HowDonaldTrumpBankruptedHisAtlanticCityCasinos,butStillEarnedMillions,160611,TheNewYorkTimes.13CraigUnger,Trump’sRussianLaundromat,170713,TheNewRepublic.14CraigUnger,Trump’sRussianLaundromat,170713,TheNewRepublic.15CraigUnger,Trump’sRussianLaundromat,170713,TheNewRepublic.16CraigUnger,Trump’sRussianLaundromat,170713,TheNewRepublic.17CraigUnger,Trump’sRussianLaundromat,170713,TheNewRepublic.18CraigUnger,Trump’sRussianLaundromat,170713,TheNewRepublic.19BrianRossandMatthewMosk,RussianmafiabossstillatlargeafterFBIwiretapatTrumpTower,170321,ABCNews.

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20BrianRossandMatthewMosk,RussianmafiabossstillatlargeafterFBIwiretapatTrumpTower,170321,ABCNews.21CraigUnger,Trump’sRussianLaundromat,170713,TheNewRepublic.22MichaelCrowley,TrumpandtheOligarch,160728,PoliticoMagazine.23MichaelCrowley,TrumpandtheOligarch,160728,PoliticoMagazine.24ThomasFrank,SecretMoney:HowTrumpMadeMillionsSellingCondostoUnknownBuyers,180112,BuzzFeed.25GlennGarvin,DonaldTrump,theunwantedPalmBeachmansionandtheRussianfertilizerking,170307,MiamiHerald.26LukeHarding,Collusion:SecretMeetings,DirtyMoney,andHowRussiaHelpedDonaldTrumpWin,location3683,(2017VintageBooks).27RobertCribb,MarcoChownOved,JeremyBlackman(ColumbiaJournalismInvestigations),SylviaVarnhamO’Regan,MicahMaidenberg,SusanneRust,HoweveryinvestorlostmoneyonTrumpTowerToronto(butDonaldTrumpmademillionsanyway),171021,TheTorontoStar.28BenProtess,SteveEderandEricLipton,TrumpOrganizationWillExitFromItsStrugglingSo-HoHotelinNewYork,071122,TheNewYorkTimes.29KenSilverstein,Narco-A-Lago,171117,GlobalWitness30AdamDavidson,DonaldTrump’sWorstDeal,170313,TheNewYorker.31RussBuettnerandCharlesV.Bagli,HowDonaldTrumpBankruptedHisAtlanticCityCasinos,butStillEarnedMillions,160611,TheNewYorkTimes;ShawnTully,HowDonaldTrumpMadeMillionsOffHisBiggestBusinessFailure,160309,Fortune;RobertCribb,MarcoChownOved,JeremyBlackman(ColumbiaJournalismInvestigations),SylviaVarnhamO’Regan,MicahMaid-enberg,SusanneRust,HoweveryinvestorlostmoneyonTrumpTowerToronto(butDonaldTrumpmademillionsanyway),171021,TheTorontoStar.32RobertCribb,MarcoChownOved,JeremyBlackman(ColumbiaJournalismInvestigations),SylviaVarnhamO’Regan,MicahMaidenberg,SusanneRust,HoweveryinvestorlostmoneyonTrumpTowerToronto(butDonaldTrumpmademillionsanyway),171021,TheTorontoStar.33Ritz-Carlton,whichhadoriginallybeennamedasthehoteloperator,abandonedtheprojectwhenWaldman’sfugitivestatuswasrevealed.34RobertCribb,MarcoChownOved,JeremyBlackman(ColumbiaJournalismInvestigations),SylviaVarnhamO’Regan,MicahMaidenberg,SusanneRust,HoweveryinvestorlostmoneyonTrumpTowerToronto(butDonaldTrumpmademillionsanyway),171021,TheTorontoStar.35RobertCribb,MarcoChownOved,JeremyBlackman(ColumbiaJournalismInvestigations),SylviaVarnhamO’Regan,MicahMaidenberg,SusanneRust,HoweveryinvestorlostmoneyonTrumpTowerToronto(butDonaldTrumpmademillionsanyway),171021,TheTorontoStar.36RobBerry,ChristopherS.StewartandBrettForrest,RussianState-RunBankFinancedDealInvolvingTrumpHotelPartner,170517TheWallStreetJournal.37RobertCribb,MarcoChownOved,JeremyBlackman(ColumbiaJournalismInvestigations),SylviaVarnhamO’Regan,MicahMaidenberg,SusanneRust,HoweveryinvestorlostmoneyonTrumpTowerToronto(butDonaldTrumpmademillionsanyway),171021,TheTorontoStar.

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38RobertCribb,MarcoChownOved,JeremyBlackman(ColumbiaJournalismInvestigations),SylviaVarnhamO’Regan,MicahMaidenberg,SusanneRust,HoweveryinvestorlostmoneyonTrumpTowerToronto(butDonaldTrumpmademillionsanyway),171021,TheTorontoStar.39RobertCribb,MarcoChownOved,JeremyBlackman(ColumbiaJournalismInvestigations),SylviaVarnhamO’Regan,MicahMaidenberg,SusanneRust,HoweveryinvestorlostmoneyonTrumpTowerToronto(butDonaldTrumpmademillionsanyway),171021,TheTorontoStar.40RobertCribb,MarcoChownOved,JeremyBlackman(ColumbiaJournalismInvestigations),SylviaVarnhamO’Regan,MicahMaidenberg,SusanneRust,HoweveryinvestorlostmoneyonTrumpTowerToronto(butDonaldTrumpmademillionsanyway),171021,TheTorontoStar.41RobertCribb,MarcoChownOved,JeremyBlackman(ColumbiaJournalismInvestigations),SylviaVarnhamO’Regan,MicahMaidenberg,SusanneRust,HoweveryinvestorlostmoneyonTrumpTowerToronto(butDonaldTrumpmademillionsanyway),171021,TheTorontoStar.42RobertCribb,MarcoChownOved,JeremyBlackman(ColumbiaJournalismInvestigations),SylviaVarnhamO’Regan,MicahMaidenberg,SusanneRust,HoweveryinvestorlostmoneyonTrumpTowerToronto(butDonaldTrumpmademillionsanyway),171021,TheTorontoStar43RobertCribb,MarcoChownOved,JeremyBlackman(ColumbiaJournalismInvestigations),SylviaVarnhamO’Regan,MicahMaidenberg,SusanneRust,HoweveryinvestorlostmoneyonTrumpTowerToronto(butDonaldTrumpmademillionsanyway),171021,TheTorontoStar.44CraigUnger,Trump’sRussianLaundromat,170713,TheNewRepublic.45OrenDorell,Trump’sbusinessnetworkreachedallegedRussianmobsters,170328,USATO-DAY.46CraigUnger,Trump’sRussianLaundromat,170713,TheNewRepublic.47OrenDorell,Trump’sbusinessnetworkreachedallegedRussianmobsters,170328,USATO-DAY.48TimothyO’Brien,Hey,Mueller,YouShouldCheckOutIceland,170623,BloombergNews.49JesseEisingerandJulianElliott,ProPublica;AndreaBernsteinandIlyaMarritz,WNYC,IvankaandDonaldTrump,Jr.WereClosetoBeingChargedWithFelonyFraud,171004ProPublica;HowIvankaTrumpandDonaldTrump,Jr.AvoidedACriminalIndictment,171004,TheNewYorker.50CraigKarmin,CIMGrouptoTakeControlofNewYorkCondo,141120,TheWallStreetJournal.51CraigKarmin,CIMGrouptoTakeControlofNewYork’sTrumpSoHoHotel-Condo,141120,TheWallStreetJournal52CraigUnger,Trump’sRussianLaundromat,170713,TheNewRepublic.53MarcChampion,HowaTrumpSoHoPartnerEndedUpwithToxicMiningRichesfromKazakh-stan,180111,Bloomberg.54TomBurgis,DirtyMoneyandtheKazakhconnection,161019,FinancialTimes.55Russia-borndealmakerlinkedtoTrumpassistslaunderingprobe,170706,FinancialTimes;seealso,ThomasFrank,SecretMoney:HowTrumpMadeMillionsSellingCondostoUnknownBuy-ers,180112,BuzzFeed,MarcChampion,HowaTrumpSoHoPartnerEndedUpwithToxicMin-ingRichesfromKazakhstan,180111,Bloomberg.56ThomasFrank,SecretMoney:HowTrumpMadeMillionsSellingCondostoUnknownBuyers,180112,BuzzFeed.

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57ThomasFrank,SecretMoney:HowTrumpMadeMillionsSellingCondostoUnknownBuyers,180112,BuzzFeed.58BenProtess,SteveEderandEricLipton,TrumpOrganizationWillExitFromItsStrugglingSo-HoHotelinNewYork,071122,TheNewYorkTimes.59AdamDavidson,DonaldTrump’sWorstDeal,170313,TheNewYorker,MichaelKeller,BlackiMigliozzi,CalebMelbyandMiraRojanaskul,TrackingTrump’sWebofConflicts,170518,BloombergNews.JosephTanfani,Trumpbacksoutofrealestateprojectsaroundtheworld,butthatmaynotbeenoughtoavoidconflicts,161222,LosAngelesTimes.60AdamDavidson,DonaldTrump’sWorstDeal,170313,TheNewYorker.61AdamDavidson,DonaldTrump’sWorstDeal,170313,TheNewYorker.62AdamDavidson,DonaldTrump’sWorstDeal,170313,TheNewYorker.63AdamDavidson,DonaldTrump’sWorstDeal,170313,TheNewYorker.64AdamDavidson,DonaldTrump’sWorstDeal,170313,TheNewYorker;JosephTanfani,Trumpbacksoutofrealestateprojectsaroundtheworld,butthatmaynotbeenoughtoavoidconflicts,161222,TheLosAngelesTimes.65AdamDavidson,DonaldTrump’sWorstDeal,170313,TheNewYorker.66AdamDavidson,DonaldTrump’sWorstDeal,170313,TheNewYorker.67AdamDavidson,DonaldTrump’sWorstDeal,170313,TheNewYorker.68AdamDavidson,DonaldTrump’sWorstDeal,170313,TheNewYorker.69AdamDavidson,DonaldTrump’sWorstDeal,170313,TheNewYorker.70AdamDavidson,DonaldTrump’sWorstDeal,170313,TheNewYorker.71AdamDavidson,DonaldTrump’sWorstDeal,170313,TheNewYorker.72KenSilverstein,Narco-A-Lago,171117,GlobalWitness;NedParker,StephenGrey,StefanieEschenbacher,RomanAnin,BradBrooksandChristineMurray,IvankaandthefugitivefromPanama,171117,Reuters;AggelosPetroppoulos,RichardEngel,APanamatowercarriesTrump’snameandtiestoorganizedcrime,171117,NBCNews.73StefanieEschenbacher,RomanAnin,BradBrooksandChristineMurray,Ivankaandthefugi-tivefromPanama,171117,Reuters.74NedParker,StephenGrey,StefanieEschenbacher,RomanAnin,BradBrooksandChristineMurray,IvankaandthefugitivefromPanama,171117,Reuters.75KenSilverstein,Narco-A-Lago,171117,GlobalWitness;NedParker,StephenGrey,StefanieEschenbacher,RomanAnin,BradBrooksandChristineMurray,IvankaandthefugitivefromPanama,171117,Reuters;AggelosPetroppoulos,RichardEngel,APanamatowercarriesTrump’snameandtiestoorganizedcrime,171117,NBCNews.76KenSilverstein,Narco-A-Lago,171117,GlobalWitness.77KenSilverstein,Narco-A-Lago,171117,GlobalWitness.78AggelosPetroppoulos,RichardEngel,APanamatowercarriesTrump’snameandtiestoor-ganizedcrime,171117,NBCNews.]79JeffHorowitz,EfforttooustTrumpname,managementinluxuryPanamaHotel,171127,As-sociatedPress.80NedParker,StephenGrey,StefanieEschenbacher,RomanAnin,BradBrooksandChristineMurray,IvankaandthefugitivefromPanama,171117,Reuters.

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81JeffHorowitz/AP,PanamaHotelvotestodropTrump–buthiscompanywon’tletgo,180116,TheWashingtonPost.82AggelosPetroppoulos,RichardEngel,APanamatowercarriesTrump’snameandtiestoor-ganizedcrime,171117,NBCNews.83AggelosPetroppoulos,RichardEngel,APanamatowercarriesTrump’snameandtiestoor-ganizedcrime,171117,NBCNews.84KenSilverstein,Narco-A-Lago,171117.85KenSilverstein,Narco-A-Lago,171117.86KenSilverstein,Narco-A-Lago,171117,GlobalWitness;NedParker,StephenGrey,StefanieEschenbacher,RomanAnin,BradBrooksandChristineMurray,IvankaandthefugitivefromPanama,171117,Reuters;AggelosPetroppoulos,RichardEngel,APanamatowercarriesTrump’snameandtiestoorganizedcrime,171117,NBCNews.87RandallJ.Turk,KyleA.Clark,InternationalAnti-Corruption:WarningSignsandRiskMitigationStrategies,2010,BloombergLawReports.R.ChristopherCook,KevinM.Comeau,FCPACom-pliance.WhatYouNeedtoKnow,March,2013,PracticalLawPublishingandPracticalLawCompany,http://www.jonesday.com/files/Publication/f1d432a2-8bb3-4708-af63-1d20ce3cfe13/Presentation/PublicationAttachment/6f7c9bc1-f216-4019-ac37-20e17f12379f/March2013_FCPA.pdf.88CriminalDivision,U.S.DepartmentofJusticeandEnforcementDivision,U.S.SecuritiesandExchangeCommission,AResourceGuidetotheU.S.ForeignCorruptPracticesAct.121114,https://www.justice.gov/sites/default/files/criminal-fraud/legacy/2015/01/16/guide.pdf89U.S.v.Kozney,667F.3d122(2ndCir.2011),AdamDavidson,DonaldTrump’sWorstDeal,170313,TheNewYorker.90AdamDavidson,DonaldTrump’sWorstDeal,170313,TheNewYorker.9118UnitedStatesCode§1961.9218U.S.C.A.§1961(4);UnitedStatesDepartmentofJustice,OfficesoftheUnitedStatesAttor-neys,CriminalResourceManual,Section109.93UnitedStatesDepartmentofJustice,OfficesoftheUnitedStatesAttorneys,CriminalRe-sourceManual,Section109;CriminalRICO:18U.S.C.§§1961–1968,AManualforFederalProsecutors,SixthRevisedEdition,May2016,p.165-170.94CriminalRICO:18U.S.C.§§1961–1968,AManualforFederalProsecutors,SixthRevisedEdi-tion,May2016,p.167-170.95CriminalRICO:18U.S.C.§§1961–1968,AManualforFederalProsecutors,SixthRevisedEdi-tion,May2016,p.167-170.9618U.S.C.§§1963(a)(1)-(3);CriminalRICO:18U.S.C.§§1961–1968;AManualforFederalProsecutors,SixthRevisedEdition,May2016,p220-242.97RJRNabiscov.EuropeanCommunity136SupremeCourt2090(2016).98NewYorkPenalLawArticle460.99NewYorkPenalLaw,§460.20.100NewYorkPenalLaw,§460.10101NewYorkPenalLaw,§460.20.102Peoplev.WesternExpress,978NE2d1231,19NY3d652(2012).

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103NewYorkPenalLaw§460.30.104NewYorkBusinessCorporationLaw§1101(a)(2).