Controversy seems to follow Donald Trump where ever he goes—and while he tends to take it all in stride, there has to be a time when the billionaire throws his hands up and says, “what’s next?”
The latest troubles headed Trumps way are of the typical financial type, and they are coming out of Tampa, Florida where a group of 30 buyers are accusing Trump of misrepresenting his stake in a $220 million luxury condo project that failed after bankruptcy hit the development partners.
The state lawsuit was filed Tuesday in Florida and the buyers are saying that Trump “presented himself as an active investor in the 190-unit Trump Tower Tampa, while hiding a confidential million dollar licensing deal” in which Trump would allegedly earn a $4 million fee, in addition to 50 percent of any future net earnings by the lead development firm. Buyers were apparently told that the project would be completed by December 2008, and were surprised to hear that in June 2008 the developers filed for Chapter 11 bankruptcy after it fell behind on millions of dollars in payments. Soon after the Trump Tower site was sold off at auction to new owners, leaving the buyers wondering what was going on.
Trump officially denies the allegations and an assistant general counsel at the Trump Organization notes, “The allegations are without merit. Mr. Trump was not the developer of the project and did not enter into contracts with any of the buyers and did not receive deposits from any of the buyers.” So why the mix-up? Trumps people claim that the confusion as to who is to blame is rooted in the fact that Trump licensed the use of his name to the developer—but that is the end of Trump’s involvement, according to his people. Trump’s side adds that the buyers were fully aware of the situation, leaving both sides standing firm against one another in their own versions of the story.
Via: The Real Deal