Donald John Trump is involved in many real estate business deals. Over the years, he established relationships with other businessmen and was involved in the establishment of a considerable number of physical casinos. One of the most famous is certainly the Trump money laundering casino in Atlantic City. A few years ago, the media was abuzz with news about the fraudulent scheme. If you aren’t familiar with this case, you can read more about it below.
Was the Trump Taj Mahal Casino Part of A Money Laundering Scheme?
The Trump Taj Mahal Casino Resort was built back in 1990. The resort quickly became one of the most commonly visited gambling destinations in Atlantic City, New Jersey. However, over time, the casino became the target of constant visits from federal officials. The reason for this was the fact that the gambling house was suspected of being part of a massive money laundering scheme. Considering that the establishment was closed in 2016, it’s safe to assume that the allegations weren’t false. If you want to learn more about the lawsuit, check out the next paragraphs of our article.
- Trump Taj Mahal in Atlantic City: The Beginning
- Considerable Success During the 90s
- Breaking the Anti-Money Laundering Legal Rules
- The Final Outcome
- The Trump Money Laundering Casino Today
|OTHER CASINOS OWNED BY TRUMP IN THE PAST||PERIOD OF EXISTENCE|
|Trump Plaza||1984 – 2014|
|Trump World’s Fair||1981 – 1999|
|Trump Marina||1997 – 2011|
|Trump 29 Casino||2002 – 2006|
Trump Taj Mahal in Atlantic City: The Beginning
In 1983, Resorts International laid the foundation for the construction of the Taj Mahal Casino. The company’s plan was to build a lavish gaming club in New Jersey’s largest city, Atlantic City. People were already familiar with Resorts International because they also owned the Resorts Casino Hotel, which was located in the immediate vicinity of the future Taj Mahal.
However, the company faced a lot of construction problems and eventually had to ask for support to complete the project. Many investors were interested in taking a stake in the company, but one bidder stood out and beat the other candidates. Donal Trump, who owned two other casinos in Atlantic City back then, established a partnership with the Resorts International becoming their chairman.
Even after Trump became part of the company, Resorts International was still struggling with financial problems. That’s why the businessman decided to make a generous offer. He said he’d finance the entire project and complete the construction on one condition, which was to acquire full ownership of the company. After debates with another bidder, Merv Griffin, the company was acquired by Griffin, but Trump bought the future Trump Taj Mahal Casino.
Considerable Success During the 90s
Before it became famous for the Trump casino money laundering scheme, the gambling club was one of the most popular places in all of Atlantic City. It was even referred to as the 8th wonder of the world. The facility opened in 1990, and it included a 120,000-square-foot gaming area with numerous entertainment options.
One of the largest casinos in the world went through some difficulties over the years. Soon after its establishment, the casino almost went bankrupt. Eventually, however, it became a well-known target for a number of Russian gangsters. They visited the casino regularly and left with large amounts of money in their pockets.
In addition to mobsters, the casino has also become a popular destination for many other active gamblers. Until 2003, it was the casino with the most revenue. Nevertheless, the Borgata Casino has displaced the Trump Taj Mahal from the top of the list. However, the club wasn’t only about glamor and gambling.
Trump Taj Mahal Money Laundering Scheme in Action
The issue of the Trump casino money laundering scheme flooded the media. Some people were shocked, and others weren’t surprised at all. The truth was that the crime had been going on for over 20 years. According to the U.S. Treasury Department’s Financial Crimes Enforcement Network, the company failed to comply with several mandated anti-money laundering controls.
The investigations of the Trump Casino in New Jersey took place many years ago. The owner of the casino was found to have failed to report countless important transactions and to have effective records management system. According to the government, the casino didn’t report a number of players who cashed out more than $10,000 in a single day.
According to IRS, the Trump Taj Mahal Casino Resort violated anti-money laundering laws more than 100 times between 1990 and 2000. The settlement agreement between FinCEN and Trump Taj Mahal Casino was signed in 1998. According to experts, Trump’s company had to pay one of the highest fines in history for Bank Secrecy Act violations.
Although the settlement agreement was publicly announced at the time, no further details were revealed about the players whose funds weren’t reported. In addition, the names of the former employees who were involved in any way in the disbursements of these transactions were also missing. As everyone can see, the agreement is only two pages long, and it only contains the most important details about the Trump Taj Mahal Casino violations.
The Final Outcome
It should come as no surprise that after the penalty against the Trump Taj Mahal Casino, it wasn’t possible for the business to flourish again. One of the reasons for this was the fact that the casino’s reputation was completely ruined. Within a very short time, it became known as a fraudulent gambling destination.
And secondly, the Trump Taj Mahal Association of Atlantic City, New Jersey, had to pay the colossal sum of $477,000.00 within five business days after the execution of the settlement agreement in 1998. However, that wasn’t all. In February 2015, another investigation by the US FinCEN was conducted.
The outcome was quite unfortunate for the Trump Taj Mahal Casino Association. The company had to pay a civil fine of $10 million for repeated and deliberate money laundering violations. The 1998 fine was substantial enough, but the $10 million imposed by the U.S. federal government was the largest fine ever levied against a casino.
What’s more, Doland Trump’s gambling business has also been linked to the Asian mafia. The latter is based on the fact that Taj Mahal’s vice president of foreign marketing was part of a known criminal gang in Hong Kong. In addition to this, as you already know, Russian mobsters were among the regular visitors of the casino.
The money laundering violations, the poor reputation, and a few shooting incidents outside the casino are just some of the reasons for the complete closure of the Trump Taj Mahal Casino Resort on October 10, 2016. Many were confident that the business would grow again, but right now Trump Taj Mahal Resort is just a memory.
The Trump Money Laundering Casino Today
For a year, the Trump Taj Mahal money laundering casino wasn’t operating at all. However, in 2017, it was announced that the property would be purchased and taken over by Hard Rock International company. Just a year later, the gambling club known as Trump Taj Mahal or the Eighth Wonder of the World became Hard Rock Hotel and Casino Atlantic City.
The newly established facility achieved considerable success in a very short time. Currently, it’s one of the most famous and well-liked casino resorts in New Jersey. Guests can indulge in numerous activities, as the gaming area includes hundreds of slot machines and many table games, including poker, blackjack, and baccarat. Sports betting is also offered on the premises of the club.
We hope you enjoyed reading this article of ours. We made sure to include all the important and interesting details about the Trump Casino money laundering scheme. Many of you may not have known that the current Hard Rock Casino used to belong to the former US President. If you want to learn more about this case, please, feel free to read the next paragraphs.
When was the Trump Taj Mahal Casino Resort built?
The Taj Mahal Casino was built back in 1990. Even though it faced some issues at the beginning, over the years, the facility became one of the most popular gambling destinations in Atlantic City, New Jersey. It was even named the Eight Wonder of the World and was considered the world’s largest casino.
What type of violations was the casino accused of?
Although business was booming, a U.S. FinCEN investigation found that Trump’s company had committed more than 100 money laundering violations between 1990 and 2000. After another investigation in 2015, the company was required to pay a civil fine of $10 million for a series of anti-money laundering control breaches.
Who presented the original idea for the establishment of the casino?
Despite the fact that the Taj Mahal Casino was owned by Donal Trump, the original idea for establishing the gambling club came from Resorts International. Nevertheless, the company’s budget wasn’t enough, and they sought support from other investors. In the end, however, they’d to sell all company rights to Merv Griffin. Trump, on the other hand, bought the Taj Mahal Casino.
When was the Trump Casino money laundering scheme revealed?
The first investigation of Trump Taj Mahal Casino was conducted back in 1998. It was confirmed that the company had violated U.S. anti-money laundering controls more than 100 times over a ten-year period. The Trump Taj Mahal Association of Atlantic City, New Jersey, was ordered to pay a fine of $447,000.
What happened to the Trump Taj Mahal Casino?
On October 10, 2016, the casino officially closed for good. A year later, the property was purchased by Hard Rock International. Currently, the Hard Rock Hotel and Casino Atlantic City is one of the most famous gambling halls in New Jersey. Unlike the Trump Taj Mahal Casino, which is no longer in operation, there are no legal problems associated with the Hard Rock Casino.