A congressional committee has asked federal regulators to terminate the Trump Organization’s lease on its iconic Washington, D.C. hotel, citing possible irregularities in the company’s financial reporting.

The request, if honored, would also undermine a planned $375 million sale of the property to a Miami investment group, a deal that would generate an expected profit of $100 million for the former president’s company.

The deal is currently under a 45-day review by the U.S. General Services Administration, the federal agency that leased the property, known as the Old Post Office Building, to the Trump Organization in 2013 for redevelopment into a five-star hotel.

The House Oversight Committee’s move comes amid increasing scrutiny of the former president’s finances.The New York attorney general said last month that she found “Important Evidence” In an unaudited financial health statement he provided to lenders, business partners and the media, his real estate firm committed fraud by overvaluing various assets, from office buildings to penthouses.

This week, Mazars, the former president’s longtime accountant, cited the revelations Ten years of such reports retractedsaid they could no longer be relied upon, and cut ties with the Trump company.

Carolyn Maloney, the Democratic chair of the House Oversight Committee, and her Democratic colleague Gerald Connolly have previously blamed the company for the Trump International Hotel’s finances Lied and accepted preferential treatment from Deutsche Bank, which provided a $170 million construction loan after Trump became president. Both sides have denied this.

Although the three-year financial statements from GSA that Trump provided to win the lease preceded those that Mazars withdrew, Maloney and Connolly wrote in their new letter that they also “contain potential misrepresentations.”

The two Democrats also raised concerns about a condition in a 2014 loan agreement with Deutsche Bank that allowed lenders to view only the first two pages of Trump’s tax returns at their office and not make copies.

“Given the longstanding ethical concerns and new developments surrounding former President Trump’s lease of the old post office building, we call on the GSA to consider terminating the lease by exercising its powers under Section 27 of the lease,” they wrote. “No one should be rewarded for providing false or misleading information to the federal government or for seeking to profit from the presidency.”

GSA, the Trump Organization and Deutsche Bank did not immediately respond to requests for comment. The Trump Organization slammed an October report by the same House committee as “irresponsible and unequivocally wrong,” while the German lender said it had “made some inaccuracies about Deutsche Bank and its loan agreement.” accurate statement”.

The 263-room Trump International Hotel — just across the street from the White House on Pennsylvania Avenue — has been the subject of controversy since Trump was elected president in 2016. Democrats and government watchdog groups have accused the former president’s family of violating the U.S. Constitution’s emoluments clause after foreign governments and their associates booked rooms there — allegedly to curry favor with the new administration.

While the Trump family has repeatedly touted its success, a House committee found it lost more than $70 million during his tenure, in part because of the coronavirus pandemic.

Late last year, the Trump Organization agreed to sell the lease to CGI Merchant Group for $375 million.

In their letter, Maloney and Connolly said the price was at least $100 million higher than the hotel’s true market value and raised concerns about the identity of CGI fund investors involved in the deal.



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