Mafia Ties
Where and when: New York and Atlantic City, 1970s- ?
Trump has been linked to the mafia many times over the years, with varying degrees of closeness. Many of the connections seem to be the sorts of interactions with mobsters that were inevitable for a guy in the construction and casino businesses at the time. For example, organized crime controlled the 1980s New York City concrete business, so that anyone building in the city likely brushed up against it. While Trump has portrayed himself as an unwitting participant, not everyone agrees. There have been a string of other allegations, too, many reported by investigative journalist Wayne Barrett. Cohn, Trump’s lawyer, also represented the Genovese crime family boss Tony Salerno. Barrett also reported a series of transactions involving organized crime, and alleged that Trump paid twice market rate to a mob figure for the land under Trump Plaza in Atlantic City. Michael Isikoff has also reported that Trump was close to Robert LiButti, an associate of John Gotti, inviting him on his yacht and helicopter. In one case, Trump’s company bought LiButti nine luxury cars.
👉Four times in his career, Trump’s companies have entered bankruptcy.
In the late 1980s, after insisting that his major qualification to build a new casino in Atlantic City was that he wouldn’t need to use junk bonds, Trump used junk bonds to build Trump Taj Mahal. He built the casino, but couldn’t keep up with interest payments, so his company declared bankruptcy in 1991. He had to sell his yacht, his airline, and half his ownership in the casino.A year later, another of Trump’s Atlantic City casinos, the Trump Plaza, went bust after losing more than $550 million. Trump gave up his stake but otherwise insulated himself personally from losses, and managed to keep his CEO title, even though he surrendered any salary or role in day-to-day operations. By the time all was said and done, he had some $900 million in personal debt.Trump bounced back over the following decade, but by 2004, Trump Hotels and Casino Resorts was $1.8 billion in debt. The company filed for bankruptcy and emerged as Trump Entertainment Resorts. Trump himself was the chairman of the new company, but he no longer had a controlling stake in it.Five years later, after the real-estate collapse, Trump Entertainment Resorts once again went bankrupt. Trump resigned from the board, but the company retained his name. In 2014, he successfully sued to take his name off the company and its casinos—one of which had already closed, and the other of which was near closing.
👉The Undocumented Polish Workers
Where and when: New York City, 1980
In order to construct his signature Trump Tower, the builder first had to demolish the Bonwit Teller store, an architecturally beloved Art Deco edifice. The work had to be done fast, and so managers hired 200 undocumented Polish workers to tear it down, paying them substandard wages for backbreaking work—$5 per hour, when they were paid at all. The workers didn’t wear hard hats and often slept at the site. When the workers complained about their back pay, they were allegedly threatened with deportation. Trump said he was unaware that illegal immigrants were working at the site.
In 1991, a federal judge found Trump and other defendants guilty of conspiring to avoid paying union pension and welfare contributions for the workers. The decision was appealed, with partial victories for both sides, and ultimately settled privately in 1999. In a February GOP debate, Marco Rubio brought up the story to accuse Trump of hypocrisy in his stance on illegal immigration. Meanwhile, Massimo Calabresi shows that testimony under oath shows Trump was aware of illegal immigrants being employed there.
👉Breaking Casino Rules
Where and when: New York and New Jersey, various
Trump has been repeatedly fined for breaking rules related to his operation of casinos. In 1990, with Trump Taj Mahal in trouble, Trump’s father Fred strolled in and bought 700 chips worth a total of $3.5 million. The purchase helped the casino pay debt that was due, but because Fred Trump had no plans to gamble, the New Jersey gaming commission ruled that it was a loan that violated operating rules. Trump paid a $30,000 fine; in the end, the loan didn’t prevent a bankruptcy the following year. As noted above, New Jersey also fined Trump $200,000 for arranging to keep black employees away from mafioso Robert LiButti’s gambling table. In 1991, the Casino Control Commission fined Trump’s company another $450,000 for buying LiButti nine luxury cars. And in 2000, Trump was fined $250,000 for breaking New York state law in lobbying to prevent an Indian casino from opening in the Catskills, for fear it would compete against his Atlantic City casinos.
Trump admitted no wrongdoing in the New York case. (He’s now out of the casino business.)