NEW LAWSUIT: Trump is "material witness" in $250 million TAX EVASION SCAM
Last edited Sat Jul 16, 2016, 06:26 PM - Edit history (6)
And his kids are material witnesses, too.
The scheme took advantage of Delaware secrecy laws and allegedly involved a Delaware shell company.
The lawsuit was actually filed last August but on Thursday the Judge unsealed the documents.
From: THE DAILY BEAST
http://www.thedailybeast.com/articles/2016/07/14/donald-trump-junior-and-ivanka-material-witnesses-in-huge-tax-scam-case.html?via=mobile&source=twitter
Four Donald Trump-licensed real-estate developments are at the center of a huge income tax evasion scheme, according to allegations in a lawsuit unsealed Thursday afternoon by a judge in Manhattan.
The presumptive Republican nominee is not personally accused. He is described as a “material witness” in the evasion of taxes on as much as $250 million in income. According to the court papers, that includes $100 million in profits and $65 million in real-estate transfer taxes from a Manhattan high rise project bearing his familiar name.
However, his status may change, according to the lawyers who filed the lawsuit, Richard Lerner and Frederick M. Oberlander, citing Trump’s testimony about Felix Sater, a convicted stock swindler at the center of the alleged scheme.
Trump received tens of millions of dollars in fees and partnership interests in one of the four projects, the Trump Soho New York, a luxury high rise in lower Manhattan. His son Donald Junior and his daughter Ivanka also were paid in fees and partnership interests, the lawyers said, and are also material witnesses in the case.
SNIP
As to Trump, every president starting with Richard Nixon and major party candidate since has made public some or all of their tax returns. He has not, even as Hillary Clinton has released her complete tax returns going back more than three decades.
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From: REAL ESTATE NEWS
http://rew-online.com/2016/07/14/judge-unseals-250m-tax-fraud-case-involving-trump-projects/
A Manhattan judge has just unsealed documents in a civil tax fraud case connected to Donald Trump’s real estate projects. The lawsuit points to an alleged conspiracy to launder $250 million of profit from projects such as Trump SoHo in New York City. It named Felix Sater, a former Trump senior adviser who has an earlier conviction for stock fraud, Sater’s firm Bayrock Group and law firms Kramer Levin, Roberts & Holland and Duval & Stachenfeld as defendants.
“This is an important case because it not only exposes how Bayrock, while developing Trump SoHo in New York, Trump International in Fort Lauderdale, and Trump Camelback in Phoenix in association with Mr. Trump, took advantage of Delaware secrecy to arrange to siphon most of the profits out of the country untaxed, it also exposes how major law firms were willing to facilitate it,” said Frederick Oberlander, one of the lawyers representing the State’s claim.
Trump is currently considered a material witness and has not been found culpable. However, state representatives said that new information “may significantly change that calculus.”
“Mr. Trump gave his consent to the transaction after receiving a full set of documentation which made clear that without it the deal would not go through. The extent of his involvement and any culpability will become clear in the course of the case. At this time, it seems that he benefited indirectly as a partner alongside Sater and Bayrock,” said attorney Richard E. Lerner.
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Here is a link to a full press release about the lawsuit. At this link you can find another link to a PDF of the court filing:
https://bayrocktaxfraudlawsuit.com
Mr. Lerner said: “Mr. Trump gave his consent to the transaction after receiving a full set of documentation which made clear that without it the deal would not go through. The extent of his involvement and any culpability will become clear in the course of the case. At this time, it seems that he benefited indirectly as a partner alongside Sater and Bayrock.”
Mr. Lerner was referring to the fact that, in addition to promises of future fees, Bayrock had given Trump, his son Donald Jr., and his daughter Ivanka partnership interests in Trump SoHo then worth tens of millions of dollars to secure Trump’s participation, and those interests indirectly benefited economically because the scheme allowed Bayrock to keep on hand $20 million it otherwise would have had to pay out for taxes. That extra cash was then available to use to help the Trump projects if necessary, including Trump SoHo.
It is believed that Mr. Trump did not report his receipt of those Trump SoHo partnership interests on his tax returns, despite their multimillion dollar value, by taking advantage of the same legal “carried interest” tax loophole that he has himself publicly denounced.
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