The Latest Legal front against Trump and his Family involves a Maneuver that Earned him and his Siblings Millions while Lowering their Tax Liabilities.
Trump and Family Members will face a raft of Legal Challenges when he leaves Office, from among, the Manhattan District Attorney, the New York Attorney General, and a Case in North Carolina, Promotion of a Company that Promised People they could get Rich Selling Video Conference Phones led them to Lose Money peddling an Obsolete Product, like the School Case he Lost and Payed $35 Million in Fines and Court Fees.
Now add to that, Leonie Green of the Westminster Apartments in Brooklyn, The Shore Haven Apartments in Brooklyn, and 28 other Complexes named in a Lawsuit that accuses the Trumps of Fraud, under a Comapny Name All County.
Ms. Green is among a Group of Tenants in Rent-Regulated Apartments once owned by Trump’s Father who have filed a Lawsuit against Trump and his Siblings, accusing the Trumps of a Decade-long Fraud to win Artificially High Rent Increases through an Invoice-Padding Scheme.
The Scheme, First revealed in a 2018 Investigation by The New York Times, involved Tacking 20% onto the Cost of Materials Purchased for the Apartments, with Trump, his Siblings, and a Cousin, splitting the Extra Proceeds. The Maneuver generated Millions of Dollars for each Sibling, with No Work Required.
While the Siblings were still Liable for Income Taxes, the Maneuver Allowed them to Evade Far-Higher Gift and Estate Taxes on part of the Fortune they Received from their Father.
But the Tenants paid a Price. New York Laws Governing Rent-Regulated Apartments allow Owners to Increase Rents based on the Costs of Major Capital Improvements. The Trumps based their Applications for Rent Hikes on the Artificially Increased Invoices, so a Boiler that actually cost $50,000 would generate a Rent Increase as if it had Cost $60,000.
The New Lawsuit, filed in State Supreme Court in Brooklyn, seeks the Extra Rent Paid, plus Interest and Triple Damages, for Current and Former Tenants in more than 30 Apartment Complexes that belonged to the President’s Father, Fred C. Trump.
The mostly austere red brick Buildings, with names like Beach Haven, Shore Haven, and Park Briar, are spread across Brooklyn, Queens, and Staten Island. The Invoice-Padding Scheme ran from 1992 until the Trumps Sold their Father’s Buildings in 2004, but the Artificially Increased Rents remained in place.
The Lawsuit could pose a Significant Financial Threat to Trump and his Family. If the Plaintiffs’ Lawyers win approval of Class-Action Status, any Potential Judgment would encompass every Person who paid Rent in more than 14,000 Rent-Regulated Apartments since 1992.
The Lawsuit was filed just before Midnight on Oct. 2nd, moments before the Expiration of the Two-year Statute of Limitations for any Fraud discovered through The Times’s 2018 Investigation. An Amended Complaint was filed on, Tuesday Nov. 1st.
Jerrold S. Parker, a Founding Partner of Parker Waichman, a National Law Firm based in Port Washington, N.Y., said his Firm began considering a Legal Remedy for the Tenants after the Article in The Times. The Firm sought Tenants this year through Television and Internet Advertisements. The Amended Complaint lists 20 Plaintiffs.
In addition to the President and Family Members, including his Sister, Maryanne Trump Barry, a Former Federal Judge, the Estate of their Brother Robert, who died this year, and the Estate of John Walter, a Favorite Nephew and Longtime Employee of Fred Trump’s. Mr. Walter died in 2018.
Trump’s Federal Income Tax Records for some of those years, which were revealed in an Investigation published by The Times this September, show that he received $1.38 Million from All County during the Four years ending in 2003. Thanks to Losses on his own Endeavors, he paid Federal Income Taxes in only One of those years, a Total of $39,117 in 2003.
Ms. Barry filed a Financial Disclosure Form for 1998 showing that she Collected more than $1 Million that year from All County. She retired last year as a Federal Appellate Judge, ending an Inquiry into Complaints, spurred by The Times’s Investigation, that she had Violated Judicial Conduct Rules by participating in Fraudulent Tax Maneuvers, including the Invoice-Padding Scheme.
The Amended Complaint, filed this week, notes that while Fred Trump’s Empire was Sold nearly Two Decades ago, the Trumps only Dissolved All County shortly after the Times Article was Published in 2018.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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