Donald Trump’s business practices have long been a subject of controversy. Throughout his career as a real estate mogul and his time in politics, numerous allegations have surfaced of Trump failing to pay bills owed to various entities. I grew up in New York City and come from a family who have construction businesses in the tri-state area. It was well known that you would be taking a risk of non-payment if you worked on a Trump project. Looks like some things never change.
Here are 10 notable instances where Trump, his companies, or his campaign have been accused of not paying their debts.
El Paso, Texas
El Paso tops the list of cities owed money by Trump’s campaign, with an outstanding balance of $569,204.63 for his February 2019 rally. This amount includes a one-time late fee of $98,787.58. The city has hired lawyers to advocate for payment, but the debt remains unpaid as of 2024.
Albuquerque, New Mexico
Trump’s campaign owes Albuquerque nearly $445,000 for a 2019 rally. This unpaid debt complicated plans for a 2024 Halloween rally in the city, with Mayor Tim Keller stating, “If you’re not going to pay your bills, we’re just not going to entertain you using city facilities”.
Tucson, Arizona
Tucson is still waiting on payment of $81,837 for security services provided during a May 2016 campaign rally. City officials have expressed frustration with the Trump campaign’s refusal to pay.
Erie, Pennsylvania
Erie is seeking $35,129.27 from Trump’s campaign for a rally held on October 10, 2018. City officials believed the security costs were reasonable given the nature of the event.
Spokane, Washington
Spokane has been trying to collect $65,124.69 from Trump’s campaign for a May 2016 rally. City Council President Ben Stuckart stated, “I would expect anyone who is billed for police services to pay their fair share”.
Edward J. Friel Co.
This Philadelphia-based cabinetry company was allegedly shortchanged for work done on Trump’s Atlantic City casino. The unpaid bill significantly impacted the company’s finances, leading to its bankruptcy in 1989.
The Paint Spot
Juan Carlos Enriquez, owner of The Paint Spot in South Florida, waited over two years to be paid more than $30,000 for work at Trump’s Doral golf resort. The case led to a judge ordering foreclosure of the resort if the contractor wasn’t paid.
Dishwashers and Waitstaff in Florida
In 2024, Trump Miami Resort Management LLC settled with 48 servers at his Miami golf resort over failing to pay overtime for a special event. The settlements averaged about $800 for each worker.
USA TODAY NETWORK Analysis
A USA TODAY NETWORK investigation found at least 60 lawsuits and hundreds of liens, judgments, and other filings documenting accusations against Trump and his businesses for failing to pay various workers, including dishwashers, glass companies, plumbers, and real estate brokers.
Chicago Unit Acquisition LLC
The Chicago Unit Acquisition LLC loan is a complex and puzzling financial arrangement involving Donald Trump and his Chicago property. According to Trump’s financial disclosures, he owes over $50 million to Chicago Unit Acquisition LLC, a company he fully owns. This setup suggests that Trump essentially owes money to himself. The loan is linked to the Trump International Hotel and Tower in Chicago, and it has been described as a “springing” loan, which typically includes harsh repayment terms for borrowers seen as credit risks. Despite the significant amount, the LLC reports no revenue, and Trump assigns it almost no value, raising questions about the legitimacy of this financial structure.
In 2012, around the same time Fortress Credit Corp. forgave over $100 million of Trump’s debt on the Chicago project, Trump claimed to have repurchased the loan from a group of banks through Chicago Unit Acquisition LLC. However, this transaction has been scrutinized as potentially being a tax avoidance scheme known as “debt parking,” where forgiven debt is not declared as taxable income by parking it in a separate entity. The New York Attorney General has investigated these transactions, questioning whether Trump properly reported the forgiven debt as income5. Despite these inquiries, the Trump Organization has consistently declined to provide detailed explanations about the loan’s nature and purpose.
A Pattern Of Behavior
These instances paint a picture of a consistent pattern of alleged non-payment by Trump, his businesses, and his campaign. While Trump has disputed many of these claims, the sheer volume of accusations across various sectors and regions is noteworthy. As Trump continues his political career, these financial controversies remain a significant part of his public profile.
Citations:
[1] https://www.motherjones.com/politics/2019/09/donald-trump-has-never-explained-a-mysterious-50-million-chicago-unit-acquisition-loan-is-it-evidence-of-tax-fraud/
[2] https://www.newsweek.com/donald-trump-chased-over-unpaid-debts-his-rallies-1961765
[3] https://www.salon.com/2024/10/11/still-owes-750000-to-cities-for-campaign-rallies-report/
[4] https://publicintegrity.org/politics/donald-trump-police-cities-bills-maga-rallies/
[5] https://www.thenation.com/article/politics/donald-trump-debts-corruption/
[6] https://www.usatoday.com/story/news/politics/elections/2016/06/09/donald-trump-unpaid-bills-republican-president-laswuits/85297274/
[7] https://kfoxtv.com/news/local/trumps-campaign-still-owes-el-paso-over-500k-for-2019-rally-other-cities-also-unpaid
[8] https://www.pbs.org/newshour/politics/donald-trumps-properties-could-be-seized-if-454-million-civil-fraud-debt-not-paid-warns-ny-ag-james
[9] https://www.salon.com/2024/10/31/unpaid-bills-haunt-halloween-rally-in-albuquerque-leave-campaign-scrambling-for-venue/
[10] https://www.motherjones.com/politics/2019/09/donald-trump-has-never-explained-a-mysterious-50-million-chicago-unit-acquisition-loan-is-it-evidence-of-tax-fraud/
[11] https://digitaledition.chicagotribune.com/infinity/article_share.aspx?guid=48064a51-a9ad-48e0-a229-995f6a9d9578
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