Trump’s Money Laundry

Russia was an unruly country with lots of crime and violence. Putin brought peace to Russia essentially identifying people with power and buying them off with properties, which actually belonged to the citizens of Russia, and parceling them out to these powerful people, most of whom were gangsters. So Putin bought his power by selling public properties to gangsters creating a kleptocracy. The problem with dirty money is that it needs to be cleansed by laundering it. This is effectively done by buying and selling apartment units.

“Russian gangsters began to launder money by buying and selling apartment units in Trump Tower in the 1990s. The most notorious Russian hit man, long sought by the FBI, resided in Trump Tower. Russians were arrested for running a gambling ring from the apartment beneath Trump’s own. In Trump World Tower, constructed between 1999 and 2001 on the east side of Manhattan near the United Nations, a third of the luxury units were bought by people or entities from the former Soviet Union. A man investigated by the Treasury Department for money laundering lived in the Trump World Tower directly beneath Kellyanne Conway, who became the press spokeswoman for the Trump campaign. Seven hundred units of Trump properties in South Florida were purchased by shell companies. Two men associated with those shell companies were convicted of running a gambling and laundering scheme from Trump Tower. Perhaps Trump was entirely unaware of what was happening on his properties.”

“A Russian oligarch bought a house from Trump for $55 million more than Trump had paid for it. The buyer, Dmitry Rybolovlev, never showed any interest in the property and never lived there—but later, when Trump ran for president, “Rybolovlev appeared in places where Trump was campaigning. Trump’s apparent business, real estate development, had become a Russian charge. Having realized that apartment complexes could be used to launder money, Russians used Trump’s name to build more buildings. As Donald Trump said in 2008. ‘Russians make up a pretty disproportionate cross-section of a lot of our assets. We see a lot of money pouring in from Russia.’”

“The Russian offers were hard to refuse: millions of dollars up-front for Trump, a share of the profits for Trump, Trumps’s name on a building—but no investment required from Trump. These terms suited both sides. In 2006, citizens of the former Soviet Union financed the construction of Trump SoHo, and gave Trump 18% of the profits—although he put up no money himself. In the case of Felix Sater, the apartments were currency laundromats. A Russian American, Sater worked as senior advisor of the Trump Organization from an office in Trump Tower two floors below Trump’s own. Trump depended upon the Russian money. Sater bought through an entity known as the Bayrock Group. Sater arranged for people from the post-Soviet world to buy apartments using shell companies. From 2007, Sater and Bayrock were helping Trump around the world, cooperating on at least four projects. Some of these failed, but Trump made money regardless.”

“Russia is not a wealthy country, but its wealth is highly concentrated. It is thus common practice for Russians to place someone in their debt by providing easy money and naming the price later. As a candidate for the office of President, Trump broke with decades of tradition by not releasing his tax returns, presumably because they would reveal his profound dependence on Russian capital. Even after he announced his candidacy for the office of president, in June 2015, Trump was pursuing risk-free deals with the Russians. In October 2015, near the time of a Republican presidential debate, he signed a letter of intent to have Russians build a tower in Moscow and put his name on it. He took to Twitter to announce that ‘Putin loves Donald Trump.’”

“The final deal never went through, perhaps because it would have made the Russian sources of Trump’s apparent success just a bit too obvious at the moment when his presidential campaign was gaining momentum. The fictional character ‘Donald Trump, successful businessman’ had more important things to do. In the words of Felix Sater writing in November 2015, ‘Our boy can become president of the United States and we can engineer.’ In 2016, just when Trump needed money to run a campaign, his properties became extremely popular for shell companies. In the half year between his nomination as the Republican candidate and his victory in the general election, some 70% of the units sold in his buildings were purchased not by human beings, but by limited liability companies.”

Quotes are taken directly from “The Road to Unfreedom: Russia, Europe, America” by Timothy Snyder

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