Thursday, April 28, 2011

Trump's first casino partners had alleged mob ties

The Huffington Post:

New York - For years, Donald Trump has boasted that his casinos are free of the taint of organized crime, using this claim to distinguish his gambling ventures from competitors. But Trump's casinos turn out not to be so squeaky clean.

One of his prime Atlantic City developments, the Trump Plaza Hotel & Casino, relied on a partnership with two investors reputedly linked to the mob, prompting New Jersey regulators to force Trump to buy them out. And he employed a known Asian organized crime figure as a vice president at his Taj Mahal casino for five years, defending the executive against regulators’ attempts to take away his license, according to law enforcement officials.

On Oct. 5, 1993, Trump told a Congressional panel examining the rise of Indian casinos -- then, a rapidly emerging threat to Atlantic City -- that the proprietors were vulnerable to organized crime.

It is “obvious that organized crime is rampant,” Trump told the panel, according to a transcript, drawing a direct contrast to his own operations. “At the Taj Mahal I spent more money on security and security systems than most Indians building their entire casino, and I will tell you that there is no way the Indians are going to protect themselves from the mob.”

That broadside garnered Trump a reprimand from then-House Interior Committee Chairman George Miller, a California Democrat, who complained that he had never heard more irresponsible testimony. But Trump continued, predicting that Indian casinos would spawn “the biggest crime problem in the nation’s history.”

Trump’s neglected to mention that his initial partners on his first deal in Atlantic City reputedly had their own organized crime connections: Kenneth Shapiro was identified by state and federal prosecutors as the investment banker for late Philadelphia mob boss Nicky Scarfo according to reports issued by New Jersey state commissions examining the influence of organized crime, and Danny Sullivan, a former Teamsters Union official, is described in an FBI file as having mob acquaintances. Both controlled a company that leased parcels of land to Trump for the 39-story hotel-casino.

Continue reading here.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.