Trump faces legal woes at Florida project
November 13, 2009 04:30PM By David Jones
Donald Trump and the Trump Tower Tampa
Billionaire real estate mogul Donald Trump is facing litigation from a group of 30 buyers who allege he misrepresented his stake in a $220 million luxury condominium project in downtown Tampa that failed after the development partners went into bankruptcy.
In a state lawsuit filed Tuesday in Hillsborough County, Fla., the buyers allege that in 2005, Trump presented himself as an active investor in the 190-unit Trump Tower Tampa, while hiding a confidential million dollar licensing deal, in which Trump would earn a $4 million fee, plus 50 percent of future net earnings by Tampa-based SimDag/Robel, the lead development firm.
"They were specifically targeted by Trump's promotional [team] that Trump was building the tower," said Daniel Clark, an attorney with Clark & Martino, one of two firms representing the buyers.
After Trump repeatedly stated that he had a stake in the project, the licensing deal was disclosed in a 2007 media report.
The buyers were told the project would be done by December 2008; however, SimDag filed for Chapter 11 bankruptcy protection in June 2008 after the Florida real estate market collapsed and it fell behind on millions of dollars in contractor fees and other payments. The Trump Tower site was later sold off to new owners in an auction.
Trump officials denied the allegations.
"The allegations are without merit. Mr. Trump was not the developer of the project, did not enter into contracts with any of the buyers and did not receive deposits from any of the buyers," said Alan Garten, assistant general counsel at the Trump Organization.
"Mr. Trump licensed the use of his name to the developer, Simdag/Robel LLC, to brand the project -- no different than any other luxury real estate brand. This was clearly disclosed to the buyers in both the purchase contracts they signed and the property reports they received, each of which expressly identified Simdag/Robel LLC as the project's developer and seller of the units."
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Comments
Anonymous
i hope they stick it to him on this. trumps deal was above board. but when your employees are pitching buyers and talking about the link with the trump brand, you blur the line and people buy in for the trump brand. personally youll never catch me near a trump property unless i cant say no. nothing like telling a client "yeah the gold fixtures in the golf course bathroom are a really nice touch". i can feel my face distort as i lie to them and they look at me with the knowing leer of man watching a man lie to their face.
Comment #1 Posted By: Anonymous 11/13/09
Anonymous
That's not his problem, he have a 99% of winning this case. whatever the other developer promised the buyers that's his problem, not DT's.
Comment #2 Posted By: Anonymous 11/14/09
Anonymous
Trump doesn't lose. His subsidiary companies owe people money all over town and he never gets in trouble for those.
Comment #3 Posted By: Anonymous 11/15/09
Anonymous
He just sold his daughter's religious upbringing. Im sure now he can pay his debt.
Comment #4 Posted By: Anonymous 11/15/09
Anonymous
Everyone and anyone who knows the Trump name knows it is a sales game. The people whining wouldn't be complaining if the real estate market had stayed hot. Before buying next time hire an attorney, and get full disclosure. Trump even lost money owning a casino. Except he got paid a salary of $ 5 million a year. He usually wins so stop whining. Next time he promises you a marble bath with Trump soap buy your own soap.
Comment #5 Posted By: Anonymous 11/16/09
Anonymous
I'll never undestand "The Trump Brand" He cuts corners like any other developer and the weak and stupid pay a premium so they can utter those apparently golden words "I live in a Trump Building" just like "I'm invested with Madoff"
Comment #6 Posted By: Anonymous 11/16/09
Anonymous
Trump is a thief in his core. Remember he got a Japanese woman who married a French guy living in France who gave $40million to Donald to buy the Fee on Empire State Building and Donald put not a single penny of his own money and announced to the whole world that he is the new owner of the Empire State Building? Too many bad stories about the Trump to tell. He is truly the worst of all thieves.
Comment #7 Posted By: Anonymous 11/16/09
Anonymous
America hates Trump.
Comment #8 Posted By: Anonymous 11/24/09
Anonymous
Anyone who is foolish and tasteless enough to buy anything Trump deserves what they get. Trump's products are sh*t. They are tacky nouveau riche overly ostentatious poorly made products. Trump is truly an ugly American.
Comment #9 Posted By: Anonymous 11/24/09
Anonymous
poor Scotland! Trump is trying to soil Scotland. it's bad enough that Trump has soiled Tampa, NYC, Jersey, etc. hey Scotland...don't let Trump build his golf course. fight him. or have him bumped off.
Comment #10 Posted By: Anonymous 11/24/09
Anonymous
Trump is a pig.
Comment #11 Posted By: Anonymous 11/27/09