Trump Legal Matters
Trump Management Corporation
In 1973, the U.S. Department of Justice sued the Trump Management Corporation, along with Donald Trump and his father Fred Trump, for racial discrimination in the rental of its apartment complexes. The suit alleged that the company discriminated against Black applicants and violated the Fair Housing Act of 1968.
Case Details and Evidence
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Discrimination Tactics: Evidence in the investigation showed that Black applicants were told there were no vacancies, while white applicants were told vacancies existed in the same buildings.
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Coding Applicants: Internal records and employee testimonies indicated that applications from Black renters were sometimes marked with a "C" (for "colored") or a "9" to distinguish them.
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Investigation: The suit was based on investigations by the New York City Human Rights Division and the Justice Department, which used "testers" (black and white individuals with similar backgrounds) to document discriminatory treatment.
Settlement
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No Admission of Guilt: In 1975, the case was settled with a consent decree in which the Trumps did not admit to any wrongdoing or violation of the law.
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Consent Decree Requirements: Despite the lack of admission, the settlement was described as far-reaching, requiring the Trump organization to adopt strict measures to prevent future discrimination, including listing vacancies with the Urban League and taking out advertisements indicating they were equal opportunity landlords.
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Subsequent Violations: In 1978, the Justice Department returned to court, alleging that the Trump Organization was still engaging in discriminatory practices in violation of the 1975 settlement.
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Trump Management Corporation
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While Donald Trump has stated the case was a minor settlement that he settled to avoid a lengthy fight, the Justice Department at the time considered the consent decree a significant victory, describing the Trumps' failure to follow the Fair Housing Act as "substantial".
Trump University
In 2018, a federal judge finalized a $25 million settlement to resolve fraud lawsuits against Trump University, compensating thousands of students who claimed they were misled by high-pressure sales tactics. The settlement, which included cases in California and New York, allowed Donald Trump to avoid admitting wrongdoing.
Key Details of the Trump University Settlement
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Total Amount: $25 million was paid in January 2017 to resolve two class-action lawsuits and a civil lawsuit from the New York Attorney General's office.
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Student Compensation: Eligible plaintiffs received 80% to 90% of what they paid for the seminars, totaling roughly $21 million for the California suits and $3 million for the New York lawsuit
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No Admission of Liability: Donald Trump did not admit to wrongdoing as part of the settlement, maintaining that the lawsuits were without merit, but settled to focus on his presidency.
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Finalization: U.S. District Judge Gonzalo Curiel approved the final settlement in early 2018, putting an end to roughly six and a half years of litigation.
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Context: The lawsuits alleged that the programs, which cost up to , failed to provide promised real estate secrets and used deceptive marketing.
The settlement marked a major resolution to fraud allegations just days before a trial was scheduled to begin
Trump Organization
The Trump Organization (specifically subsidiaries Trump Corporation and Trump Payroll Corp) was convicted in December 2022 on 17 criminal counts, including tax fraud and falsifying business records. The scheme involved evading taxes on executive perks, leading to a maximum fine of $1.6 million. This was a distinct criminal case from the civil fraud judgment.
Key Conviction Details (2022 Criminal Tax Fraud Trial):
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Entities Convicted: Trump Corporation and Trump Payroll Corporation, acting as the Trump Organization.
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Charges: 17 counts, including criminal tax fraud, conspiracy, and falsifying business records.
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The Scheme: Company executives received off-the-books luxury perks—such as rent-free apartments, private school tuition, and cars—without paying personal income taxes, while the company falsified records.
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Key Figure: Former CFO Allen Weisselberg pleaded guilty to 15 felonies and testified against the organization.
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Sentence: The company was fined $1.6 million, the maximum penalty allowed
Donald Trump’s casino businesses filed for Chapter 11 bankruptcy protection multiple times—specifically in 1991, 1992, 2004, 2009, and 2014. These filings involved Atlantic City properties like the Trump Taj Mahal, Trump Plaza, and Trump Castle, driven by high debt loads and intense competition. While the businesses suffered, Trump avoided personal bankruptcy.
Key Details of Trump Casino Bankruptcies
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1991 (Taj Mahal): The Taj Mahal, opened in 1990 with huge debt, filed for Chapter 11 bankruptcy just one year later.
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1992 (Castle/Plaza): Both Trump Plaza and Trump Castle filed for bankruptcy as debts mounted.
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2004 (Trump Hotels & Casino Resorts):
A filing occurred with over $1.8 billion in debt.
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2009 (Trump Entertainment Resorts): Following the 2008 financial crisis, the company filed again with roughly $1.74 billion in debt.
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2014 (Trump Entertainment Resorts): Another filing occurred, leading to the closure of the Trump Taj Mahal and Trump Plaza by 2016.
Impact and Legacy
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Investor and Worker Losses: Studies indicate these bankruptcies significantly harmed shareholders and employees, with employee retirement savings, in some cases, lost, according to a Mother Jones article.