Category: Pocket Padding

Trump Signed ‘Letter of Intent’ for Russian Tower During Campaign

Four months into his campaign for president of the United States, Donald Trump signed a “letter of intent” to pursue a Trump Tower-style building development in Moscow, according to a statement from the then-Trump Organization Chief Counsel Michael Cohen.

The involvement of then-candidate Trump in a proposed Russian development deal contradicts repeated statements Trump made during the campaign, including telling ABC News Chief Anchor George Stephanopoulos in July 2016 that his business had “no relationship to Russia whatsoever.”

The disclosure from Cohen, who has described himself as Trump’s personal lawyer, came as Cohen’s attorney gave congressional investigators scores of documents and emails from the campaign, including several pertaining to the Moscow development idea.

“Certain documents in the production reference a proposal for ‘Trump Tower Moscow,’ which contemplated a private real estate development in Russia,” Cohen’s statement says. “The decision to pursue the proposal initially, and later to abandon it, was unrelated to the Donald J. Trump for President Campaign.”

In a separate statement texted to ABC News, Cohen added that “the Trump Moscow proposal was simply one of many development opportunities that the Trump Organization considered and ultimately rejected.”

Cohen specifically says in his statement that Trump was told three times about the Moscow proposal.

“To the best of my knowledge, Mr. Trump was never in contact with anyone about this proposal other than me on three occasions, including signing a non-binding letter of intent in 2015,” his statement says.

Cohen also makes clear that he himself engaged in communication directly with the Kremlin about the proposal during the ongoing 2016 presidential campaign. His statement says he wrote to the press secretary for Russian President Vladimir Putin at the request of Felix Sater, a frequent Trump Organization associate who had proposed the Trump Moscow development.

“In mid-January 2016, Mr. Sater suggested that I send an email to Mr. Dmitry Peskov, the Press Secretary for the President of Russia, since the proposal would require approvals within the Russian government that had not been issued,” Cohen’s statement says. “Those permissions were never provided. I decided to abandon the proposal less than two weeks later for business reasons and do not recall any response to my email, nor any other contacts by me with Mr. Peskov or other Russian government officials about the proposal.”

The Trump Moscow development proposal, which was first reported Monday by The Washington Post, provides a new look at the relationship between the president’s real estate firm and Sater, a convicted felon who served a year in New York state prison for stabbing a man during a bar fight.

Sater is a controversial figure who served for many years as a federal government cooperating witness on a host of matters involving organized crime and national security. Sater had also traveled in Moscow with Trump’s son, Donald Trump Jr., in the mid-2000s and handed out business cards identifying himself as a “senior adviser” to Donald Trump Sr.

Trump had taken pains to distance himself from Sater. In one sworn deposition, regarding a Trump development in Florida on which Sater had worked, Trump said “I don’t know him very well … if he were sitting in the room right now I really wouldn’t know what he looked like.”

The emails show Sater and Cohen – friends since their teenage years growing up in Brooklyn – sharing their dreams of a Trump presidency.

In one, made public Monday by The Washington Post and New York Times, Sater writes: “I know how to play it and we will get this done. Buddy, our boy can become President of the USA and we can engineer it.”

And Sater adds, pointedly: “I will get all of Putins team to buy in on this.”

On Sept. 30, 2015, Trump Organization officials told ABC News that Sater had inflated his connections to the company. Alan Garten, a senior Trump Organization attorney, told ABC News that “there’s really no direct relationship” between Sater and the real estate firm.

“To be honest, I don’t know that he ever brought any deals,” Garten said.

That was the same month Sater brought the company the Trump Moscow development proposal, according to Cohen’s statement. Cohen’s statement notes that he did not share the proposal with others in his firm.

“Mr. Sater, on occasion, made claims about aspects of the proposal, as well as his ability to bring the proposal to fruition. Over the course of my business dealings with Mr. Sater, he has sometimes used colorful language and has been prone to ‘salesmanship,’” Cohen wrote. “As a result, I did not feel that it was necessary to routinely apprise others within the Trump Organization of communications that Mr. Sater sent only to me.”

Garten and an attorney for Sater did not immediately respond to requests for comment.

For five months, the Trump Organization gave serious consideration to the Moscow development idea. But Cohen told ABC News he scuttled the plan in January 2016, one year before Trump was sworn in as president.

“I abandoned the Moscow proposal because I lost confidence that the prospective licensee would be able to obtain the real estate, financing, and government approvals necessary to bring the proposal to fruition,” Cohen said. “It was a building proposal that did not succeed and nothing more.”

[ABC News]

Trump Associate Boasted That Moscow Business Deal ‘Will Get Donald Elected’

A business associate of President Trump promised in 2015 to engineer a real estate deal with the aid of the president of Russia, Vladimir V. Putin, that he said would help Mr. Trump win the presidency.

The business associate, Felix Sater, wrote a series of emails to Mr. Trump’s lawyer, Michael Cohen, in which he boasted about his ties to Mr. Putin and predicted that building a Trump Tower in Moscow would be a political boon to Mr. Trump’s candidacy.

“Our boy can become president of the USA and we can engineer it,” Mr. Sater wrote in an email. “I will get all of Putins team to buy in on this, I will manage this process.”

The emails show that, from the earliest months of Mr. Trump’s campaign, some of his associates viewed close ties with Moscow as a political advantage. Those ties are now under investigation by the Justice Department and multiple congressional committees.

There is no evidence in the emails that Mr. Sater delivered on his promises. Mr. Sater, a Russian immigrant, was a broker for the Trump Organization at the time, which means he was paid to deliver real estate deals.

In another email, Mr. Sater envisioned a ribbon-cutting in Moscow. “I will get Putin on this program and we will get Donald elected,” Mr. Sater wrote.

Mr. Cohen suggested that Mr. Sater’s comments were puffery. “He has sometimes used colorful language and has been prone to ‘salesmanship,’ ” Mr. Cohen said in a statement. “I ultimately determined that the proposal was not feasible and never agreed to make a trip to Russia.”

Mr. Sater presented himself as so influential in Russia that he helped arrange a 2006 trip that Mr. Trump’s daughter, Ivanka, took to Moscow. “I arranged for Ivanka to sit in Putins private chair at his desk and office in the Kremlin,” he said.

Ms. Trump said she had no involvement in the discussions about the Moscow deal. In a statement, she said she that during the 2006 trip, she took “a brief tour of Red Square and the Kremlin but I have never met President Vladimir Putin.” She did not say whether she sat in his chair.

The Times reported earlier this year on the plan for a Trump Tower in Moscow, which never materialized. On Sunday, The Washington Post reported the existence of the correspondence between Mr. Sater and Mr. Cohen but not its content.

The Trump Organization on Monday turned over emails to the House Intelligence Committee, which is investigating Russian meddling in the presidential election and whether anyone in Mr. Trump’s campaign was involved. Some of the emails were obtained by The Times.

The Trump Organization issued a statement Monday saying: “To be clear, the Trump Organization has never had any real estate holdings or interests in Russia.”

[New York Times]

Don’t forget: Trump is Using the Presidency to Enrich His Family

Amid the avalanche of news about North Korea, Russia and President Trump’s open feud with Senate Majority Leader Mitch McConnell (R-Ky.), don’t lose sight of this bit of news: Trump’s family business has earned a nearly $2 million profit in just four months this year from the new Washington hotel that bears his name.

Given that in the past 24 hours Trump has threatened nuclear war with North Korea, thanked Russian President Vladimir Putin for expelling U.S. diplomats from Moscow and publicly attacked his party’s leader in the Senate, it’s easy to lose sight of another ongoing scandal: How Trump continues to line his family’s pockets through the presidency.

It’s unprecedented to have a president who retains a stake in businesses as sprawling as the Trump empire. But Trump has taken business conflicts to yet another level by tying the Trump Hotel so explicitly to the presidency.

Trump’s Washington hotel is the new power hub in Washington. Before he became president, the Trump family company projected the hotel would lose money this year. But instead it has become a profit center, owing to its transformation into “a kind of White House annex,” The Post’s Jonathan O’Connell reported this week.

After spending just one month in the hotel’s public spaces, Post reporters witnessed, among other things, luminaries of Trump’s world, including current White House staffers and former New York mayor and Trump ally Rudolph Giuliani, “posing for selfies at the bar the night Trump fired FBI Director James B. Comey,” and former Trump campaign manager-turned-lobbyist Corey Lewandowski sitting in “a black leather chair marked ‘Reserved.’” In July, Republican fundraisers used the space to raise $10 million for Trump’s reelection campaign.

Trump’s tweets and Thursday’s mad, impromptu news conference might eclipse his presidency-for-profit, but don’t forget: his “working” vacation has also been a daily advertisement for his Bedminster, N.J., golf resort, another showpiece in his family’s vast holdings around the world. When Trump is on television, golfing or eating or roaming around Bedminster, it’s free advertising not only for the resort, but also for the Trump brand as a whole.

Of course, we knew this was coming. Before Trump took office in January, ethics watchdogs warned that unless Trump established a blind trust, he risked embroiling himself in unprecedented conflicts of interest. Trump declined to take this step, and although he has left the day-to-day operation of the family companies to his adult sons, he and his family members, including his daughter Ivanka, who works at his side in the White House, still stand to profit from them.

And they have. From the time the Washington hotel opened last year through June 2017, Ivanka Trump has earned $2.4 million from her stake in it.

The Trump Hotel is the most blatant example of how Trump is selling the presidency. No ordinary luxury hotel in a city that boasts more than a few, the Trump Hotel is where foreign dignitaries, lobbyists, White House staff, Cabinet officials, Trump confidants, Republican fundraisers, elected officials, religious leaders and assorted sycophants gather — to see and be seen, to rub elbows with the powerful, to possibly catch a glimpse of the president himself, and, most crucially, to patronize the hotel owned by the most powerful person in the world.

It doesn’t come cheap: Guests have paid, on average, $652.98 a night to stay there, according to the Post investigation; a special cocktail in the bar costs $100, and a bartender might try to sell you a $2,500 bottle of bubbly. With a social media-obsessed president, patrons are eager to post about reveling in the opulence and in praise of the Trump brand.

As Walter Shaub, the since-departed director of the Office of Government Ethics, has said of Trump’s refusal to divest from his business holdings, “a conflict of interest is anything that creates an incentive to put your own interests before the interests of the people you serve.” Trump’s continued stake in the hotel and ongoing promotion of it by using his name as the draw risks the appearance of “using the presidency for private gain,” Shaub told Vox.

But while the D.C. hotel is the most prominent example of Trump profiting off his office, it’s not the only one. Richard Painter, who served as George W. Bush’s ethics counsel, has called the hotel “really just a tip of the iceberg.”

There’s an even more cynical twist to the story that shouldn’t go unnoticed.

Consider the working-class voters Trump has duped into believing he’s come to Washington to save their jobs and way of life. They couldn’t possibly dream of spending the kind of money it takes to stay at Trump’s hotel. But Trump is continuing to use one of his chief selling points in running for president — his success as a businessman — to maintain support from this base. And the money Trump rakes in from his hotel feeds that image. For Trump and his supporters, then, those profits are not an abuse of his office, they are proof of the financial success he says is the mark of a strong leader.

Beyond this, there’s another dynamic at work: Trump is able to get away with this sort of self-dealing in part because he’s making a mess on so many other fronts. Because of the sheer chaos of Trump’s presidency — Trump’s erratic behavior, the West Wing mayhem, the cloud of the Russia investigation — this alarming new reality has gone overshadowed, and he has managed to move the ethical goalposts of the Oval Office. The public has only so much bandwidth to absorb the scale and scope of this administration’s unraveling of ethical norms.

One of the biggest challenges of the post-Trump era will be how to restore the norms and standards that Trump has so blithely trashed. Someday, Americans — from the people who run our government to the citizens in every corner of the country — will have to reckon with what he has done, and figure out how to undo it. That process will probably have to start with some basic reminders that the presidency is not for sale.

[Washington Post]

During Made in America Week, White House Defends Imported Trump Products

As the White House kicks off its Made in America Week, shining a spotlight on products manufactured domestically, President Donald Trump’s spokesman was forced Monday to defend the fact that goods bearing the Trump name are frequently produced abroad.

Made in America Week — continuing a trend of themed weeks, such as Infrastructure Week and Energy Week — saw the White House hosting a product showcase featuring a variety of items manufactured in the U.S., the president delivering a speech encouraging domestic manufacturing and a ceremony commissioning the latest American-built Navy aircraft carrier.

But asked at Monday’s press briefing about whether the Trump Organization or Ivanka Trump brands would commit “to stop manufacturing wares abroad,” press secretary Sean Spicer shifted the focus to Trump’s attempts to cultivate other companies’ domestic production efforts.

“I think what’s really important is the president’s agenda — regulatory relief and tax relief — are focused on trying to make sure that all companies can hire here, can expand here, can manufacture here,” said Spicer.

On the matter of Trump-branded items, he added, “I can tell you that in some cases, there are certain supply chains or scalability that may not be available in this country.”

Questions about Trump products’ creation and assembly abroad have dogged the businessman-turned-president since first announcing his America-first ambitions at the launch of his candidacy for president over two years ago.

During a memorable campaign stop in August 2016, Democratic rival Hillary Clinton held up a Trump-branded tie made China as she assailed the Republican nominee for suits stitched in Mexico, furniture created in Turkey and picture frames made in India.

But asked at Monday’s press briefing about whether the Trump Organization or Ivanka Trump brands would commit “to stop manufacturing wares abroad,” press secretary Sean Spicer shifted the focus to Trump’s attempts to cultivate other companies’ domestic production efforts.

“I think what’s really important is the president’s agenda — regulatory relief and tax relief — are focused on trying to make sure that all companies can hire here, can expand here, can manufacture here,” said Spicer.

On the matter of Trump-branded items, he added, “I can tell you that in some cases, there are certain supply chains or scalability that may not be available in this country.”

Questions about Trump products’ creation and assembly abroad have dogged the businessman-turned-president since first announcing his America-first ambitions at the launch of his candidacy for president over two years ago.

During a memorable campaign stop in August 2016, Democratic rival Hillary Clinton held up a Trump-branded tie made China as she assailed the Republican nominee for suits stitched in Mexico, furniture created in Turkey and picture frames made in India.

Trump shrugged off the criticism during the campaign, telling ABC News that Clinton didn’t need to raise the issue because he readily took ownership of the foreign items, chalking up the decisions as a financial one, given the costs of U.S. manufacturing. He pointed to the nature of the economy and blamed then-President Barack Obama’s policies for forcing his hand.

“Unfortunately, my ties are made in China, and I will say this, the hats — Make America great again — I searched long and hard to find somebody that made the hats in this country,” Trump told ABC News in June 2016.

“I pay a lot more money. It is a very hard thing, and it’s because they devalue their currency,” he added, referring to alleged Chinese efforts to make it less expensive to buy goods from the country.

Trump partially chalked up the production imbalance to “unfair trade practices” as he spoke at the product showcase Monday afternoon. Touting job creation in the manufacturing sector since he took office, he promised that the country would “once again rediscover our heritage as a manufacturing nation.”

“We’re here to celebrate American manufacturing and showcase all the products of the 50 states made in the U.S.A,” he said. “Remember in the old days, they used to have ‘Made in the U.S.A.’? ‘Made in America’ but ‘Made in the U.S.A.’ — we’re going to start doing that again. We’re going to put that brand on our product because it means it’s the best.”

Comments about the Trump Organization’s business efforts by the president and his advisers have waned since his election, particularly as critics decry what they view as potential conflicts of interest. Spicer expressed discomfort in fielding the query on the topic Monday.

“Again, it’s not appropriate me for to stand up here and comment about a business, and I believe that’s a little out of bounds,” he said, as the line of questioning wound down at the press briefing. “But again, I would go back to the president’s broader goal, which is to create investment here, to bring back the manufacturing base.”

[ABC News]

Jared Kushner ‘Tried and Failed to Get a $500m Loan from Qatar Before Pushing Trump to Take Hard Line Against Country’

Jared Kushner tried and failed to secure a $500m loan from one of Qatar’s richest businessmen, before pushing his father-in-law to toe a hard line with the country, it has been alleged.

This intersection between Mr Kushner’s real estate dealings and his father-in-law’s international issues highlights the difficulties of an administration besiged with an unprecedented number of conflicts of interest.

Early in his real estate career, Mr Kushner purchased a building at 666 Fifth Avenue in New York for $1.8bn – a record-setting deal at the time.

These days, however, more than a quarter of the office space in the building is vacant. According to The New York Times, the building has not generated enough to pay its debts in several years, forcing Kushner Companies to cover the multimillion-dollar difference.

In 2015 – while Donald Trump was firing up his presidential campaign – Mr Kushner was working with his biological father to keep the property from going underwater. The men zeroed in on Qatari billionaire sheikh Hamad bin Abdullah Al-Thani (HBJ) as a potential investor.

HBJ eventually agreed to invest $500m in the property, sources tell The Intercept, on the condition that Kushner Companies found the rest of the money for the multi-billion-dollar project on its own.

For help, Kushner Companies turned to Chinese insurance company Anbang. The company agreed to secure a $4bn construction loan to develop the property in early March. But weeks later, as concerns about conflicts of interest mounted, Anbang pulled out.

Without the help of Anbang, Kushner Companies could not meet the rest of HBJ’s funding demands. According to one source in the region, HBJ killed the deal. According to another, he simply put it on hold.

Either way, a diplomatic crisis centred around Qatar broke out shortly thereafter. In early June, at least six Gulf Region countries severed or reduced ties to the country, claiming it had supported terrorism.

The countries issued a list of demands necessary for Qatar to regain favour, including shutting down the media network Al-Jazeera, cutting ties with various Islamist groups, limiting ties with Iran, and expelling Turkish troops.

The move sent the tiny, isolated nation into an economic tailspin. Secretary of State Rex Tillerson quickly encouraged the countries to engage in “calm and thoughtful dialogue“ and asked for “no further escalation by the parties in the region”.

Mr Trump, however, unleashed a string of criticism toward the country, calling it a “funder of terrorism at a very high level”.

“So good to see the Saudi Arabia visit with the King and 50 countries already paying off,” he tweeted on 6 June. “They said they would take a hard line on funding, extremism, and all reference was pointing to Qatar.”

The President’s position took Mr Tillerson by surprise, and sources say he suspected Mr Kushner was behind it all.

A source close to Mr Tillerson told The American Conservative that the Secretary of State is convinced that some of Mr Trump’s remarks were written by UAE ambassador Yousef Al Otaiba – a close friend of Mr Kushner.

“Otaiba weighed in with Jared and Jared weighed in with Trump,”  the source said. “What a mess.”

But even if the source’s account of the proceedings is true, it still leaves open the question of why Mr Kushner wanted to convince the President to speak out against Qatar.

Mr Tillerson’s reasons for supporting the small country, and urging a quick end to the conflict, however, are more clear: The US runs a crucial airbase out of the country, which runs air campaigns against Isis in Iraq and Syria, and helps protect Israel.

Mr Tillerson left on Monday for a trip to Turkey, Kuwait, the UAE, Qatar, and Saudi Arabia to help mediate an end to the crisis. Kushner Companies did not respond to The Independent’s request for comment.

[The Independent]

Ethics Chief Accuses Reince Priebus of Making ‘Explicit Threat’ to Silence His Complaints About Trump

Outgoing Director of the Office of Government Ethics Walter Shaub Jr. accused White House Chief of Staff Reince Priebus of making a “fairly explicit threat” in an attempt to quell criticism of President Donald Trump’s refusal to divest from his businesses.

During a Sunday interview on ABC’s This Week, host George Stephanopoulos recalled that Priebus had warned Shaub to “be careful” speaking out after Trump announced that he would not sell his assets or place them in a blind trust as recent presidents have done.

“Did White House pressure have anything to do with your decision to resign?” Stephanopoulos asked.

“I think the fairly explicit threat from Reince Priebus really is emblematic of how the interactions with the White House have been since the beginning of this administration,” Shaub explained, adding that he was not “pushed out.”

“I really always thought the ethics rules were strong enough to protect the integrity of the government’s operations,” Shaub continued. “My recent experiences have convinced me that they need strengthening. And frankly, they convinced me that that I achieved that all I could possibly achieve in this job.”

[Raw Story]

Media

Trump Holds $10 Million Dollar Fundraiser at His Hotel

Protesters greeted the president with cries of “Shame!”as he arrived at the $35,000 per person bash.

Many were unhappy with the Republican healthcare plan, holding placards that said “Healthcare, not tax cuts”.

Holding the fundraising event at Trump International Hotel has increased concerns about conflicts of interest.

Richard Painter, who served as the chief ethics lawyer in the White House for former President George W Bush, said it was unacceptable for the president to be potentially benefiting financially from this kind of event. He should have picked another hotel, he said.

But Kathleen Clark, a law professor who specialises in government ethics at Washington University in St. Louis, told USA Today it did not break any laws.

It is not clear if the hotel is being paid to host the event.

Republican National Committee officials were expecting to raise about $10m, with about 300 places available.

Not all the money raised will go towards the Trump 2020 campaign – some will go to other Republican Party causes.

It is unusual for a president to raise cash for re-election so early in his first term, only five months since the former property developer took office.

“Of course he is running for re-election,” White House spokeswoman Sarah Huckabee Sanders told reporters on Wednesday.

Reporters were barred from attending the event.

The president has previously been criticised for entertaining foreign leaders at another of his properties in Florida.

A lawsuit filed in June argued President Trump was “flagrantly violating the constitution” by accepting payments from foreign governments, a charge the White House has strongly denied.

[BBC]

Trump will hold fundraiser at his own hotel in D.C.

President Trump has chosen his Washington hotel as the site for a fundraiser that could be used to benefit him and other Republicans.

Campaign director Michael Glassner confirmed the location to The Associated Press on Wednesday. He calls it a premier and convenient choice. The Tuesday fundraiser in Washington will be for larger donors.

Mr. Trump officially kicked off his re-election campaign on Inauguration Day by filing Federal Election Commission paperwork, making it the earliest such effort by a sitting president. But Mr. Trump has not officially announced his candidacy, and in a letter accompanying his filing, he wrote it did “not constitute a formal announcement of my candidacy for the 2020 election.”

Through the end of March, Mr. Trump’s campaign had raised more than $7 million through small donor appeals and the sale of merchandise. The Trump campaign and Republican National Committee will share proceeds.

The Trump Organization completed a $200 million renovation of the government property weeks before Election Day. Trump has since distanced himself from the finances of the hotel, but critics say conflicts remain.

The venue poses possible ethical and legal questions for Mr. Trump, and is sure to raise questions from Democrats who continue to question the intersection of government and Mr. Trump’s business ventures.

Mr. Trump’s hotel, located just blocks from the White House also on Pennsylvania Avenue, opened shortly before the 2016 election. Mr. Trump has said he would donate proceeds from foreign officials to charity, but the White House and the Trump Organization have yet to release any details of that plan. The Department of Justice is arguing in court that the president is not violating the Emoluments Clause in the Constitution by accepting foreign payments.

Earlier this year, Ivanka Trump, who works as an assistant to her father and plays a prominent role in the White House, told “CBS This Morning” she manages any “conflict” that arises with the hotel.

Other details of the fundraiser have yet to be released publicly.

In some ways, Mr. Trump hasn’t stopped campaigning. On his 100th day in office, he held a campaign-style rally in Pennsylvania. Wednesday night, he will make an appearance in Iowa for a rally.

[CBS News]

Trump seeks sharp cuts to housing aid, except for program that brings him millions

President Trump’s budget calls for sharply reducing funding for programs that shelter the poor and combat homelessness — with a notable exception: It leaves intact a type of federal housing subsidy that is paid directly to private landlords.

One of those landlords is Trump himself, who earns millions of dollars each year as a part-owner of Starrett City, the nation’s largest subsidized housing complex. Trump’s 4 percent stake in the Brooklyn complex earned him at least $5 million between January of last year and April 15, according to his recent financial disclosure.

Trump’s business empire intersects with government in countless ways, from taxation to permitting to the issuing of patents, but the housing subsidy is one of the clearest examples of the conflicts experts have predicted. While there is no indication that Trump himself was involved in the decision, it is nonetheless a stark illustration of how his financial interests can directly rise or fall on the policies of his administration.

The federal government has paid the partnership that owns Starrett City more than $490 million in rent subsidies since May 2013, according to figures provided by a spokesman for the Department of Housing and Urban Development. Nearly $38 million of that has come since Trump took office in January.

That subsidy generates steady income for Trump and his siblings, each of whom inherited an interest in the property when their father died. Although it represents a small portion of his overall wealth, it is one of the few examples of money the president derives directly from the federal government he oversees.

HUD, meanwhile, has come under fire in recent days after news of the expected nominee to lead the department in the New York region: Lynne Patton, an event planner who has no professional experience in housing but who is a former vice president of Eric Trump’s foundation and who helped plan his wedding.

The administration’s decisions on housing programs were not influenced by Trump’s interest in Starrett City, HUD spokesman Jereon Brown said Tuesday. Several experts said cutting the subsidy paid directly to landlords can be politically difficult, in part because many beneficiaries of that type of subsidized housing are elderly and in part because landlords are more likely to be politically organized.

Starrett City is a complex of 46 brick towers that stretches across 150 acres just to the west of New York’s John F. Kennedy Airport. It was built in the mid-1970s and houses nearly 15,000 people.

Trump once called Starrett City “one of the best investments I ever made,” but it was his father who was an investor in its construction, according to a representative of Starrett City.

“Upon Fred Trump’s death, his four children inherited his interests,” Bob Liff, a spokesman for Starrett City Associates, the partnership that owns the complex, said in a statement to The Washington Post. “There’s been no change, except that Donald Trump’s holding was placed in a revocable trust upon becoming president.”

Placing his stake in a revocable trust allows it to be managed by others. Trump has not divested himself of his assets but has said he has turned over management to his sons.

Liff declined to say how large a stake Trump’s three surviving siblings own today.

The more than $5 million the president reported earning from Starrett City was part of nearly $600 million in gross revenue he claimed from January 2016 through mid-April, records show.

“It’s a conflict, and it’s why everyone has pushed Trump to not only step away from his business interests but to divest them,” said Scott Amey, general counsel at the Project on Government Oversight, an independent watchdog organization.

A White House spokeswoman declined to respond to detailed questions from The Post and directed inquiries to the Trump Organization, which did not respond to messages Monday and Tuesday.

Starrett City provides more than 3,500 subsidized housing units to low-income residents under a program that makes payments directly to landlords. Under the “project-based rental assistance program,” residents contribute 30 percent of their income toward rent, and the federal government pays the rest.

The project-based rental assistance program is one of only a few HUD programs that would be spared steep cuts under Trump’s proposed budget, which housing advocates have said would carry devastating consequences for the poor and the homeless.

The administration has proposed reducing HUD’s overall budget by $7 billion, or about 15 percent. That includes cuts to two of the other programs that, together with the program that pays landlords directly, serve the vast majority of people who get federal housing assistance.

The budget calls for a nearly 29 percent cut, or $1.8 billion, to public housing and a 5 percent drop, or nearly $1 billion, in vouchers that allow tenants to use the aid on the housing of their choice, according to Douglas Rice, a senior policy analyst at the Center on Budget and Policy Priorities. In contrast, the program that directs money to Starrett City and other privately owned housing would see a reduction of about half a percent, or $65 million, from its $10.8 billion allocation.

“It certainly raises questions as to why that remained relatively flat while there were other cuts,” Amey said.

But Amey and others cautioned against assuming that Trump’s holdings were a factor in the decision, noting that Starrett City represents a relatively small portion of the president’s income.

Ben Carson, the HUD secretary, has said that “no one is going to be thrown out on the street” if the proposed cuts take effect. Congress has ultimate say on the budget, but the Trump spending plan lays out the president’s priorities.

Compounding the questions swirling around HUD this week were reports that Carson was poised to name Patton, who spoke at the Republican National Convention, to the position of regional administrator overseeing the New York area. No formal announcement has been made, but Armstrong Williams, a longtime friend and adviser to Carson, defended Patton in an interview Monday evening.

Williams, a conservative commentator, said Patton earned Carson’s trust in just a few months while serving as his $160,000-a-year senior adviser. “She has shown a capacity not only to learn but to regurgitate, to put together tours where she shows she has a knowledge of HUD,” Williams said. “She has done a great job of briefing the secretary.”

Patton previously worked as an event planner for the Trump Organization and “a senior aide to the Trump family.” She organized “upscale events and celebrity golf tournaments at multiple Trump properties” and handled “celebrity talent acquisition for various marketing projects,” according to an online résumé on the website LinkedIn.

She told the Daily Mail earlier this year that she was entrusted by Eric and Lara Trump to help plan their wedding in Palm Beach, Fla. She also served as an unpaid vice president for the Eric Trump Foundation, a charity that raised money for children with leukemia.

The New York Daily News first reported her expected appointment late last week and raised questions about claims she made on her LinkedIn profile. Under “education” she lists a law degree from the Quinnipiac University School of Law, along with the notation “N/A.” After the controversy erupted, she explained that “N/A,” short for “not applicable,” was meant to signify that she did not finish law school.

Williams said that she dropped out before earning a degree but that she had been truthful with Carson about her background, including a history of substance abuse.

Patton has “been a lot of dark places” but has overcome them, Williams said. “She has a keen insight into people who overcome mental illness and addiction,” he said, adding that this will help her relate to people HUD serves.

As one of 10 regional administrators, Patton would serve as a liaison to local and state officials in the New York area and oversee HUD programs there. She did not respond to requests for comment through a person who answered her cellphone Monday.

Some New York City officials scoffed at her prospective appointment.

“Folks in that role historically have had substantial background in government or in housing,” Mayor Bill de Blasio, who served in that position previously, said during a radio program this week.

Michael Bodaken, president of the National Housing Trust, said the regional administrator would not have authority to make budget decisions or issue waivers that could benefit Starrett City. He added, “We would have been happier with someone with substantial housing experience because it’s such an important job.”

Williams dismissed criticism about Patton’s lack of experience.

“Whatever Lynne Patton was in the past doesn’t matter,” he said. “What she is today matters, and Dr. Carson has tremendous trust in her.”

He said that neither the president nor anyone in the Trump family had urged Carson to recommend her for the position and that her closeness to the family was not a factor.

“It did not help her with Dr. Carson,” Williams said. “He was skeptical, too, just like anyone else. He didn’t realize she had the intellect and the knowledge and work ethic she has.”

[Washington Post]

Trump Profited From Kids Cancer Charity

The Trump Organization took in healthy profits in recent years for hosting a charity golf event to benefit children’s cancer research, despite claiming the use of the course had been donated Forbes reported Tuesday.

Since 2007, President Trump’s son Eric Trump has held an annual charity golf event at the Trump National Golf Club in Westchester County, N.Y., to raise money for the Eric Trump Foundation on behalf of the St. Jude Children’s Research Hospital in Memphis, Forbes reported. To date, Eric Trump has raised more than $11 million — including $2.9 million last year — for the hospital’s research, most of it through the golf tournaments, according to Forbes.

The costs for the tournaments averaged $50,000 during the first four years, which is about what other charities pay for events at Trump courses. But the expenses quickly began to rise, reaching $322,000 by 2015, Forbes reported, citing IRS filings.

If accurate, these figures are hard to reconcile with Eric Trump’s claims that the charity is able to use the course for free and that many other expenses are donated. “We get to use our assets 100% free of charge,” the president’s son told Forbes.

“In reviewing filings from the Eric Trump Foundation and other charities, it’s clear that the course wasn’t free — that the Trump Organization received payments for its use, part of more than $1.2 million that has no documented recipients past the Trump Organization,” Forbes reported. “Golf charity experts say the listed expenses defy any reasonable cost justification for a one-day golf tournament.”

In addition, more than $500,000 in donations were given to other charities, “many of which were connected to Trump family members or interests, including at least four groups that subsequently paid to hold golf tournaments at Trump courses,” the magazine reported.

According to Forbes, the spike in costs for the tournament started in 2011 when Donald Trump insisted the charity begin paying the Trump Organization for the events.

Ian Gillule, who worked as a membership and marketing director at the Westchester course, told Forbes that Donald Trump was not happy with the expenses the charity wasn’t being billed for.

“Mr. Trump had a cow,” Forbes quoted Gillule as saying. “He flipped. He was like, ‘We’re donating all of this stuff, and there’s no paper trail? No credit?’ And he went nuts. He said, ‘I don’t care if it’s my son or not — everybody gets billed.'”

The Donald J. Trump Foundation gave $100,000 to the Eric Trump Foundation to help offset the increase in costs, Gillule told Forbes. That means donors to the Donald J. Trump Foundation — the Trump family had not given money to that foundation for several years — saw $100,000 of their donations pass on as revenue to the Trump Organization by way of charges to the Eric Trump Foundation.

Eric Trump announced he would stop fundraising in December and is now acting as co-head of the Trump Organization during his father’s presidency. The Eric Trump Foundation changed its name to Curetivity and plans to continue to hold charity golf events for St. Jude, Forbes reported.

[USA Today]

 

 

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