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Wednesday, Jul 6 2016

Trump's Atlantic City: Built On The Backs Of Bankrupted Workers

Jul 06, 2016

To hear it from Donald Trump, his whole life is full of winning–and that facade is on full display at Trump’s Atlantic City casinos and in his high-style living. But behind the billionaire’s real estate success is a con-man who drives business ventures into financial ruin. Trump’s success came at the expense of small business owners, investors, seniors, and everyday workers whose lives he destroyed. As the Press of Atlantic City reported while Trump’s casinos crumbled, “Trump’s Bankruptcy Deals Left Him Rich.”

Trump’s Taj Mahal project left a wake of financially ruined contractors: Trump refused to pay $1.2 million to the contractor who installed paving stones at the Taj Mahal casino. The builder who crafted the domes atop the Taj suffered over $2 million in losses. The contractor who sourced the Italian marble filed for personal bankruptcy. The contractor who installed bathroom partitions even laid off his own brother. Trump financed the uncompleted casino with junk bonds (after assuring regulators he wouldn’t) and quickly drove the property into financial ruin.

Atlantic City’s Trump Plaza, closed.  Trump Marina Hotel Casino, sold at a massive loss. Trump Taj Mahal, under new ownership. Stock and bondholders lost more than $1.5 billion dollars on their investments in Trump’s Atlantic City properties, even while other casinos in the city thrived.  

As publicly traded stocks in Trump Hotels and Casino Resorts tanked by 70%, small-volume investors were devastated while Trump was paid a $5 million bonus

Trump’s properties also flouted state gambling regulations. Trump’s father Fred once tried to buoy the failing Trump Taj Mahal, buying $3.5 million worth of chips he never intended to use. The New Jersey gaming commission determined the loan to be in violation of rules and Trump paid a hefty fine. Trump was later fined $200,000 for keeping black and female employees away from the gaming tables of notorious mobster Robert Libutti.  

Published: Jul 6, 2016

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