Friday, April 19, 2024

Trump Using Campaign Donations To Cash-Strapped Businesses


Trump’s Main 2024 White House Campaign Fundraising Operation, sharply increased Spending at Trump's Properties in recent months, funneling Money into His Businesses, at a time when He is facing serious Legal Jeopardy and desperately needs Cash.

Trump’s Joint Fundraising Committee wrote Three Checks in February and One in March, to His Mar-a-Lago Club in Palm Beach, Florida, totaling $411,287, and another in March to Trump National Doral Miami for $62,337, according to a Report filed to the Federal Election Commission (FEC) this week.

Federal Law and FEC Regulations, allow Donor Funds to be spent at a Candidate’s Business, so long as the Campaign Pays Fair Market Value, Experts say. Trump has been doing it for years, shifting Millions in Campaign Cash into His sprawling Business Empire, to Pay for Expenses such as using His Personal Aircraft for Political Events, Rent at Trump Tower, and Events at His Properties, which has included Hotels and Private Clubs.

While the Practice is Legal, some Campaign Finance Experts believe it raises Ethical concerns when a Candidate is generating Personal Revenue off Running for Office.

“When voters see something like this happening it contributes to their distrust of the political system and their elected officials' motives,” said Shanna Ports, Senior Legal Counsel with the Campaign Legal Center, a Nonprofit Government Accountability Group.

The Money Trump’s Sampaign is spending at His Businesses, could help Trump as He faces a Big Cash Crunch. Trump has been hit with a pair of large Financial Judgements after Losing Two Civil Lawsuits.

He posted a $91.6 million Bond in a Sexual Abuse/Defamation Case, brought by the Writer E. Jean Carroll, and a $175 million Bond, that the Court has Rejected, in a New York Fraud Case involving Falsifying Business Records.

The Payments Trump’s Campaign has made to His Businesses are Small, compared to His Large Court-Ordered Financial Judgements, but have been growing in recent months.

The Trump Campaign and Affiliated Political Committees, paid Businesses owned by Trump at least $4.9 million since the start of 2023. Most of that Money, $4.1 million went to TAG Air, Inc. for Air Travel.

Trump lists TAG Air, Inc among His Assets, on His latest Financial Disclosure required of Presidential Candidates, with a value of between $5 million and $25 million. It Operates His Private Aircraft, nicknamed Trump Force One.

Trump's various Campaign Committees and a super PAC controlled by His Supporters also spent at least $809,000 at His Properties since the beginning of last year.

The Bulk of the Campaign spending at Trump's Properties since the start of 2023, $663,000, has been at Mar-a-Lago, and most of it occurred in February. It’s Not clear what Events the money went toward.

The Trump Save America Joint Fundraising Committee, which raises Money for Trump’s Campaign, and His Save America Leadership PAC accounted for the Majority of the Spending at Trump Properties, with otherEexpenses paid for by Trump’s Main Campaign Committee, the MAGA Inc., super PAC, and Save America.

Questions about how Trump’s Businesses have benefited from His Political Career, have swirled around Him throughout Trump’s Three Campaigns and His Four years in the White House.

Under Pressure to avoid Potential Conflicts-of-Interest between His Role as President and His vast Business Dealings, Trump declared after Winning the 2016 Election, that He wouldn't cut any "new deals." Trump also put His Two Adult Sons in Charge of the Family Business, which was Controlled by a Trust, controlled by His CFO.

But Critics said didn't have Strong enough Requirements to Prevent potential Ethical Conflicts. He should have put the Trust in a Blind Trust. The Trustee has No import, and complete Discretion over the Trust’s Assets and Investments.

Lawsuits accusing Trump of Violating the Emoluments Clauses in the Constitution, during His Presidency were Unsuccessful. Critics said those Seeking to Influence Trump's Administration, funneled Money into His Businesses, including a Hotel near the White House in Washington, D.C. that has since been Sold and rebranded as a Waldorf Astoria.

America Democracy Legal Fund filed a Complaint with the FEC in 2016, alleging “Mr. Trump is using funds from his presidential campaign to further his business and personal interests." The Complaint was Dismissed, but concerns remain in the minds of some Campaign Finance Experts.

"People should be running for office because they want to serve the public, not because they want to enrich themselves," Ports said. "So the fact that campaigns are allowed to pay the candidate’s business raises those concerns. While legal, it creates kind of a negative impression of the election system."

Richard Briffault, a Legislation Professor at Columbia Law School, said Trump's use of Campaign Funds at His Businesses may Not be Illegal, but it's "a little bit dicey. Nobody's ever seen anything like it"

Briffault said the only comparable Political Candidate with such a sprawling Business may be former New York City Mayor Michael Bloomberg, who Ran for President as a Democrat, but even then, they’re Not an exact Comparison. “Everything with Trump, nobody’s ever seen anything like it,” He said.

The Primary thing Trump’s Businesses need to do, is Charge His Campaign and PACs, the same Amount they would Charge any other Paying Customer for the Services. But there’s also an Ethical Question of whether the Campaign and PACs could get a better Deal somewhere else.

“How much are they charging? And to what extent are they putting people up who might be staying someplace else that might be cheaper?” Briffault asked. “You could imagine that there could be cheaper venues to these things, but they’re purposely holding them there.”

Trump's Leadership PAC also has been Spending vast sums on Attorneys, as the President faces Four Criminal Cases.

Spending Money on Legal Issues is Not unusual for a Campaign, but Campaign Finance Experts say Trump has pushed the Boundaries of what is Allowable.









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