{"id":19270,"date":"2017-03-14T14:47:54","date_gmt":"2017-03-14T19:47:54","guid":{"rendered":"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=19270"},"modified":"2017-03-18T10:12:58","modified_gmt":"2017-03-18T15:12:58","slug":"trumps-panama-problem","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/trumps-panama-problem\/","title":{"rendered":"Trump\u2019s Panama Problem"},"content":{"rendered":"<p><a href=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2017\/03\/trump-martinelli.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-19271\" src=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2017\/03\/trump-martinelli.jpg\" alt=\"\" width=\"813\" height=\"457\" srcset=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2017\/03\/trump-martinelli.jpg 813w, https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2017\/03\/trump-martinelli-300x169.jpg 300w, https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2017\/03\/trump-martinelli-768x432.jpg 768w\" sizes=\"auto, (max-width: 813px) 100vw, 813px\" \/><\/a><\/p>\n<p>Ricardo Martinelli, the ex-president of Panama facing extradition on corruption charges, helped him launch his first international property.<\/p>\n<p>Fast Company posted this article written by Anna Lenzer<\/p>\n<section class=\"main\" data-reactid=\"146\">\n<section class=\"post-page\" data-reactid=\"147\">\n<div data-reactid=\"148\">\n<div class=\"post__wrapper\" data-reactid=\"149\" data-id=\"3067820\">\n<section class=\"post\" data-reactid=\"154\">\n<div class=\"post__main \" data-reactid=\"155\">\n<div class=\"post__container\" data-reactid=\"170\">\n<div class=\"post__content\" data-reactid=\"187\">\n<article class=\"post__article\" data-reactid=\"194\">\n<div data-reactid=\"195\">\n<p>It was a big moment for Donald Trump.<\/p>\n<\/div>\n<p><!-- react-empty: 196 --><\/p>\n<div data-reactid=\"197\">\n<p>On July 6, 2011, the future president was beaming as he celebrated the opening of his first international real-estate deal, the Ocean Club in Panama City, Panama. The flashy hotel-condo complex featured a 72-story tower that transformed the skyline of the city with its sail-shaped design. After a ceremony featuring dancers in traditional Panamanian dress, Trump stood at a podium, flanked by his two oldest sons, Don Jr. and Eric, paused during his remarks, gently leaned over and offered a special thanks to Ricardo Martinelli, the president of Panama.\u201cYou\u2019re my friend. Great honor.\u201d<\/p>\n<p>Standing next to Trump\u2019s children, Martinelli smiled back. The white-haired, stocky president was flattered, proud of the fact that the complex had the potential to transform his small country into a destination for the rich and famous. As they both delivered their remarks that afternoon, the sky broke open and a torrential rain flooded the streets, turning the peninsula on which the complex stood into a <a href=\"http:\/\/www.bbc.com\/news\/world-latin-america-14152439\" target=\"_blank\"> \u201cswamp island.\u201d<\/a> Trump and Martinelli had to ride out through the flooded streets in their separate chauffeured SUVs.<\/p>\n<p><script 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[class*=jw-related-page-]{background-size:32px;height:85px;margin-top:-42.5px;width:85px}<\/style>\n<p><script src=\"https:\/\/ssl.p.jwpcdn.com\/player\/v\/7.9.3\/provider.html5.js\" type=\"text\/javascript\" charset=\"utf-8\" async=\"\"><\/script> <script src=\"https:\/\/ssl.p.jwpcdn.com\/player\/v\/7.9.3\/vttparser.js\" type=\"text\/javascript\" charset=\"utf-8\" async=\"\"><\/script><\/p>\n<section class=\"main\" data-reactid=\"146\">\n<section class=\"post-page\" data-reactid=\"147\">\n<div data-reactid=\"148\">\n<div class=\"post__wrapper\" data-reactid=\"149\" data-id=\"3067820\">\n<section class=\"post\" data-reactid=\"154\">\n<div class=\"post__main \" data-reactid=\"155\">\n<div class=\"post__container\" data-reactid=\"170\">\n<div class=\"post__content\" data-reactid=\"187\">\n<article class=\"post__article\" data-reactid=\"194\">\n<div data-reactid=\"197\">\n<figure class=\"inline-video inline inline column-container\">\n<div class=\"image-wrapper\"><\/div>\n<\/figure>\n<p>More than five years later, Trump has taken over the Oval Office and Martinelli is a fugitive from justice wanted on multiple corruption charges and investigations, ranging from <a href=\"http:\/\/www.upi.com\/Top_News\/US\/2016\/12\/09\/Suspected-of-corruption-at-home-powerful-foreigners-find-refuge-in-US\/2721481302887\/\" target=\"_blank\">allegedly helping to embezzle $45 million from a government school lunch program<\/a> to <a href=\"http:\/\/www.telesurtv.net\/english\/news\/Former-Panamanian-President-to-Face-Charges-of-Insider-Trading-20151211-0013.html\" target=\"_blank\">insider trading<\/a> to <a href=\"http:\/\/www.aljazeera.com\/news\/2015\/12\/panama-issues-warrant-arrest-president-151222051503487.html\" target=\"_blank\">using public funds to spy on more than 150 political opponents<\/a>, lawyers, doctors, and activists. But their paths could intertwine again very soon in what may be a thorny dilemma for the Trump administration. At the end of September, <a href=\"http:\/\/www.reuters.com\/article\/us-panama-martinelli-us-idUSKCN11X1XQ\" target=\"_blank\">Panama\u2019s Supreme Court asked the United States to extradite Martinelli<\/a>, who left office in 2014 and now lives in exile in a luxury waterfront condo in Miami.<\/p>\n<figure class=\"inline-large inline inline column-container\">\n<div class=\"image-wrapper\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/fast-company-res.cloudinary.com\/image\/upload\/w_596\/fc\/3067820-inline-i-1-the-panama-connection-trump-and-his-fugitive.jpg\" alt=\"\" width=\"844\" height=\"844\" \/><\/div><figcaption><em>Panama City Skyline: Trump Ocean Club International Hotel &amp; Tower under construction<span class=\"credit\">[Photo: Flickr user <a href=\"https:\/\/www.flickr.com\/photos\/jciti\/5708232747\/in\/photolist-9GqbHZ-nFs6Xg\" target=\"_blank\">Bruce Dailey<\/a>]<\/span><\/em><\/figcaption><figcaption><\/figcaption><\/figure>\n<p>While the United States has codified policies to deny visas to foreign officials facing criminal charges in their home countries, and Trump\u2019s recent executive order on immigration enforcement targets for removal individuals with even unresolved criminal charges, Martinelli entered the U.S. in 2015 on a visitor visa as the criminal investigations around him and his inner circle were tightening and has reportedly remained since.<\/p>\n<aside class=\"pullquote pull-right\"><q>More than five years later, Trump has taken over the Oval Office and Martinelli is a fugitive from justice wanted on multiple corruption charges.<\/q><\/aside>\n<p>Before fleeing Panama, Martinelli sat on the board of a bank that became the co-trustee for the Ocean Club, a role that left it in charge of managing funds coming in from rentals and sales, and of disbursing money to Trump, who gets millions in fees from the project. <a href=\"http:\/\/www.economist.com\/news\/business\/21710828-weakness-trump-inc-may-pose-more-problem-its-sprawl-donald-trumps-conflicts\" target=\"_blank\">The Ocean Club has been Trump\u2019s largest individual source of branding fees<\/a>, reports the <em>Economist<\/em>, earning Trump <a href=\"http:\/\/www.washingtonpost.com\/sf\/world\/2017\/01\/13\/trumps-foreign-network\/\" target=\"_blank\">\u201cat least $50 million on the project on virtually zero investment,\u201d<\/a> reported the <em>Washington Post<\/em> in January.<\/p>\n<p>Now, the extradition request highlights the potential conflicts of interest that have swirled around Trump: A decision that is usually made on the merits by career diplomats could be complicated by the president\u2019s personal and business ties to Panama. Officials at the State Department could be inclined to approve the extradition, mindful of not antagonizing the current government of Panama, which exerts plenty of influence over the fate of a development that makes millions for the president\u2019s family\u2014or to decline the request out of their awareness of Martinelli\u2019s support for the Ocean Club and his admiration and kind words for Trump.<\/p>\n<h4><a name=\"How_Global_Deals_Could_Complicate_Diplomacy\"><\/a>How Global Deals Could Complicate Diplomacy<\/h4>\n<p>The Panama skyscraper was the first building outside of America to bear the Trump name, in a licensing and management deal with local development company Newland International Properties. Trump\u2019s companies today <a href=\"https:\/\/www.nytimes.com\/2016\/11\/26\/us\/politics\/donald-trump-international-business.html\" target=\"_blank\">\u201chave business operations in at least 20 countries<\/a>, with a particular focus on the developing world, including outposts in nations like India, Indonesia, and Uruguay,\u201d according to the <em>New York Times<\/em>. <a href=\"https:\/\/www.washingtonpost.com\/graphics\/world\/trump-worldwide-licensing\/\" target=\"_blank\">An analysis of Trump\u2019s global deals<\/a> published on January 25 by the <em>Washington Post<\/em> found that the Trump name has been contracted out \u201cto at least 50 different licensing or management deals.\u201d As the <em>Post<\/em> explained, \u201cfor his international projects, <a href=\"https:\/\/www.washingtonpost.com\/politics\/how-donald-trump-can-make-money-even-when-trump-branded-properties-fail\/2015\/07\/23\/1ff64854-2ef1-11e5-8353-1215475949f4_story.html\" target=\"_blank\">he has done a majority of his work through licensing<\/a>\u2014where a developer who is liable for the actual cost and responsibility of the contract uses Trump\u2019s name for their hotels. This allows Trump to spread his brand and image worldwide without actually being liable for the project.\u201d (In addition to real estate projects, Trump has also licensed his name in branding deals for a variety of consumer products such as Trump Vodka, Trump Steaks, and Trump Menswear.)<\/p>\n<\/div>\n<p><!-- react-empty: 198 --><\/p>\n<div data-reactid=\"199\">\n<p>Trump has done branding deals ranging from a suite of private mansions in the United Arab Emirates, a luxury resort and golf course in Indonesia, a since-halted project in Azerbaijan that nevertheless earned him more than $2.5 million in fees, and a number of projects in India, where the <em>Times<\/em> found he had more projects in the works than anywhere else outside of North America. Several of the Trump projects in India \u201care being built through companies with family ties to India\u2019s most important political party,\u201d reported the <em>Times<\/em>. In the Philippines, Trump\u2019s partner in a $150 million tower in Manila was named a special envoy to the United States in October by Philippine president Rodrigo Duterte, whose war on drugs has involved the summary execution of thousands of suspected drug users and sellers.<\/p>\n<p>Michael H. Fuchs, who until recently helped to oversee American relations with the Philippines as deputy assistant secretary of state, explained to the <em>Times<\/em> that \u201cthe biggest gray area may not be a President Trump himself advocating for favors for the Trump Organization. It\u2019s the diplomats and career officers who will feel the need to perhaps not do things that will harm the Trump Organization\u2019s interests. It is seriously disturbing.\u201d<\/p>\n<p>Ethics experts have raised concerns about the potential for these global deals to complicate international diplomacy and whether Trump will weigh his political actions against their impact on his business allies. Another concern is that foreign officials might take actions to benefit Trump\u2019s local business in order to curry favor with the White House.<\/p>\n<aside class=\"pullquote pull-right\"><q>\u201cTrump-branded buildings standing like monuments to the decay of American ethics.\u201d<br \/>\n<\/q><\/aside>\n<p>\u201cAmerica has been treated to reports of multi-billion-dollar projects across the planet, to photos of Mr. Trump glad-handing businessmen and to images of exotic, <a href=\"http:\/\/www.economist.com\/news\/business\/21710828-weakness-trump-inc-may-pose-more-problem-its-sprawl-donald-trumps-conflicts\" target=\"_blank\">Trump-branded buildings standing like monuments to the decay of American ethics<\/a>,\u201d noted the <em>Economist<\/em> in November.<\/p>\n<p>Despite his global financial entanglements, as Trump and his inner circle have repeatedly emphasized, the conflict of interest laws that restrain other federal employees don\u2019t apply to the president. <a href=\"http:\/\/www.cnbc.com\/2017\/01\/11\/transcript-of-president-elect-donald-j-trumps-news-conference.html\" target=\"_blank\">\u201cAs you know, I have a no-conflict situation because I\u2019m president, which is\u2014I didn\u2019t know about that until about three months ago, but it\u2019s a nice thing to have,\u201d<\/a> Trump said at his January 11 press conference. Days after his inauguration, a group of ethics lawyers filed a lawsuit against Trump claiming that his holdings violate the Constitution\u2019s emoluments clause, which bars federal officials from taking payments from foreign governments. Trump also hasn\u2019t released his taxes or a list of his lenders, obscuring a complete picture of his potential global conflicts.<\/p>\n<p>Though Trump announced at his January 11 press conference that he would not pursue additional foreign deals while in office and that he would move his assets into a trust controlled by his children, income from the Panama project will continue to roll in.<\/p>\n<p>And that makes for a potential ethical conflict for the president. As the <em>Wall Street Journal<\/em> noted recently, \u201cif the U.S. were to get into a dispute with [Panama] during the Trump administration, <a href=\"http:\/\/www.wsj.com\/livecoverage\/donald-trump-press-conference-01117\/card\/1484155344\" target=\"_blank\">it might appear that his desire to maintain this revenue stream might influence his decision making.\u201d<\/a><\/p>\n<\/div>\n<p><!-- react-empty: 200 --><\/p>\n<div data-reactid=\"201\">\n<p>International extradition requests involve both executive and judicial processes, as the State Department receives the initial request from the foreign government in question and decides if it should be passed on to the Justice Department. If it is, and an ensuing court process finds the subject of the request to be extraditable, the case goes back to the Secretary of State, who is vested with the final decision-making power over whether to authorize the extradition. As explained in <a href=\"http:\/\/www.apks.com\/en\/perspectives\/publications\/2017\/01\/demystifying-international-extradition\" target=\"_blank\"> a recent article in <em>Law360<\/em> co-authored by former Justice and State Department lawyers,<\/a> \u201cthe Secretary of State has ultimate discretion to determine whether the subject should be released or surrendered. In making this decision, the Secretary may take into account \u2018any humanitarian or other considerations for or against surrender,\u2019 as well as \u2018written materials submitted by the fugitive, his or her counsel, or other interested parties.&#8217;\u201d<\/p>\n<p>While the Secretary of State and the executive branch are unlikely to get involved in requests to extradite the average alleged criminal, an extradition request for a former head of state will inevitably become tangled with international politics and diplomatic concerns. \u201cIt would have to get red-flagged,\u201d says John Parry, a professor of law at Lewis &amp; Clark Law School who has worked on extradition cases. The United States generally tries to handle the average extradition request from close allies reasonably expeditiously through the judicial system, but for \u201cthe ones that have a diplomatic or political or foreign relations angle\u201d like a former head of state like Martinelli, Parry explains, \u201cthe political people are going to want to be involved in some way, they just are.\u201d<\/p>\n<p>If the subject of such a high-profile extradition request were a friend or associate of the president, Parry says you\u2019d expect the president to recuse himself from the decision-making process, even instructing their Attorney General and Secretary of State not to discuss the request with him. \u201cIf the president were to get directly involved or if the president\u2019s close advisors on behalf of the president got directly involved with the extradition, sure that would raise a conflict of interest question, I think it definitely would,\u201d says Parry.<\/p>\n<p>The Trump administration hasn\u2019t commented on the extradition request or whether the president has been in contact with Martinelli since his election, despite repeated requests from <em>Fast Company<\/em>. Shortly after his election victory, Trump had a phone call with current Panamanian president Juan Carlos Varela, who was Martinelli\u2019s vice-president during his 2009-2014 term, with whom he reportedly discussed regional security, commerce, and the fight against organized crime and drug trafficking. It is unclear whether they also discussed the extradition request, and Panamanian officials declined to tell <em>Fast Company<\/em> if the two leaders discussed the fate of Martinelli. When asked about the current status of the request, a spokeswoman for the Ministry of Foreign Affairs would only say that the process is in American hands. President Varela\u2019s office did not respond to requests for comment. The U.S. Justice Department doesn\u2019t comment on extradition requests as a matter of policy. (On February 19, Trump called Varela for another conversation about shared security concerns, and invited him to visit Washington in the months ahead.)<\/p>\n<p>Despite all of his troubles in Panama, Martinelli seems confident that he remains in Trump\u2019s good graces. The day after Trump\u2019s victory, Martinelli <a href=\"https:\/\/twitter.com\/rmartinelli\/status\/796402917897097216\" target=\"_blank\">tweeted his congratulations on the \u201ctriumph,\u201d<\/a> adding \u201cGod bless America.\u201d And days before Trump\u2019s inauguration, Martinelli tweeted an image of what he described as an \u201cinvitation\u201d to the official Trump-Pence Inaugural Ball. (A few minutes later, after Twitter users in Panama took notice, he deleted the tweet and didn\u2019t mention the inauguration again until the day of the ceremony, <a href=\"https:\/\/twitter.com\/rmartinelli\/status\/822442159571959808\" target=\"_blank\">when he tweeted about what a beautiful city Washington was and how many people were in town for the event, <\/a> <a href=\"https:\/\/www.facebook.com\/RicardoMartinelliPTY\/posts\/1224701297615416\" target=\"_blank\">posting similar sentiments on Facebook<\/a>.) It\u2019s not clear if Martinelli actually attended the inauguration or the inaugural ball and his spokesman declined to tell <em>Fast Company<\/em> whether the former president has been in touch with Trump or his staff since the U.S. election.<\/p>\n<p>&nbsp;<\/p>\n<section class=\"main\" data-reactid=\"146\">\n<section class=\"post-page\" data-reactid=\"147\">\n<div data-reactid=\"148\">\n<div class=\"post__wrapper\" data-reactid=\"149\" data-id=\"3067820\">\n<section class=\"post\" data-reactid=\"154\">\n<div class=\"post__main \" data-reactid=\"155\">\n<div class=\"post__container\" data-reactid=\"170\">\n<div class=\"post__content\" data-reactid=\"187\">\n<article class=\"post__article\" data-reactid=\"194\">\n<div data-reactid=\"201\">\n<figure class=\"inline-large inline inline column-container\">\n<div class=\"image-wrapper\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/fast-company-res.cloudinary.com\/image\/upload\/w_596\/fc\/3067820-inline-15977396101549325568720106721647174297996097n.jpg\" alt=\"\" width=\"789\" height=\"789\" \/><\/div>\n<\/figure>\n<h4><a name=\"Well_do_anything_to_support_Trump_in_their_mission\"><\/a>\u201cWe\u2019ll do anything to support Trump in their mission.\u201d<\/h4>\n<p>Soon after Martinelli took office in 2009, Trump became one of his biggest fans. Though there were already news reports detailing the Panamanian president\u2019s \u201clack of commitment to \u2018rule of law,&#8217;\u201d per diplomatic cables released by WikiLeaks in 2010, Trump anointed the Latin American leader a \u201cgreat president\u201d in 2011 and cheered the businessman-turned-politician\u2019s corporate style. <a href=\"http:\/\/www.csmonitor.com\/World\/Americas\/2011\/0707\/Could-Donald-Trump-reenter-the-presidential-race\" target=\"_blank\">\u201cFrankly, we need some of that in the United States,\u201d<\/a> he told the <em>Christian Science Monitor <\/em>in Panama City after inaugurating the Ocean Club. He lionized Martinelli as a \u201cbusinessman with heart,\u201d whose leadership in Panama showed Trump \u201cthat\u2019s why the United States is doing so poorly, because it\u2019s not being run properly, it\u2019s not being run as a businessman would,\u201d he told the <em>Monitor<\/em>.<\/p>\n<aside class=\"pullquote pull-right\"><q>Trump anointed the Latin American leader a \u201cgreat president\u201d<\/q><\/aside>\n<p>That summer, Trump\u2019s opening of the mixed hotel and condo development on Panama City\u2019s waterfront to which he\u2019d licensed his name and that his management company would run marked a new frontier in his ambitions. With his name recognition exploding due to his successful TV show, <em>The Apprentice<\/em>, and <a href=\"https:\/\/www.wsj.com\/articles\/SB10001424127887323836504578553492930645794\" target=\"_blank\">dogged by a mixed record at home with some high-profile U.S. projects ending up in foreclosure or unfinished<\/a>, Trump\u2019s decision to license his name overseas was a smart move. In Martinelli\u2019s remarks at the Ocean Club\u2019s opening event, he lavished praise on Trump, thanking him for \u201callowing this wonderful building to have his name,\u201d toured the hotel with him, told Trump that \u201ceverything you touch turns to gold,\u201d and invited him to go sport fishing.<\/p>\n<\/div>\n<p><!-- react-empty: 202 --><\/p>\n<div data-reactid=\"203\">\n<p>Eric Trump told the crowd at another opening event in July 2011 that \u201cfirst it takes an unbelievable government and you just heard it\u2014<a href=\"https:\/\/www.youtube.com\/watch?v=SzUGl-755lU&amp;feature=youtu.be&amp;t=1m4s\" target=\"_blank\">\u2018We\u2019ll do anything to support Trump in their mission.\u2019<\/a> It\u2019s not often that you hear governments say that and it\u2019s such a relief to come into a country that\u2019s so pro-development.\u201d<\/p>\n<aside class=\"pullquote\"><q>It was the Trump Organization\u2019s first international real estate deal.<\/q><\/aside>\n<p>It was the Trump Organization\u2019s first international real estate deal, \u201cthe one by which the rest will be benchmarked,\u201d as Eric put it. <a href=\"http:\/\/www.csmonitor.com\/World\/Americas\/2011\/0224\/Donald-Trump-to-Panama-You-re-hired%21\" target=\"_blank\">Ivanka explained in an earlier interview<\/a> with the <em>Monitor<\/em> in February 2011 that \u201cthis building is a very important bridge for us as we begin to expand internationally, not just through South America, but the world.\u201d<\/p>\n<p><script 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[class*=jw-related-page-]{background-size:32px;height:85px;margin-top:-42.5px;width:85px}<\/style>\n<p><script src=\"https:\/\/ssl.p.jwpcdn.com\/player\/v\/7.9.3\/provider.html5.js\" type=\"text\/javascript\" charset=\"utf-8\" async=\"\"><\/script> <script src=\"https:\/\/ssl.p.jwpcdn.com\/player\/v\/7.9.3\/vttparser.js\" type=\"text\/javascript\" charset=\"utf-8\" async=\"\"><\/script><\/p>\n<section class=\"main\" data-reactid=\"146\">\n<section class=\"post-page\" data-reactid=\"147\">\n<div data-reactid=\"148\">\n<div class=\"post__wrapper\" data-reactid=\"149\" data-id=\"3067820\">\n<section class=\"post\" data-reactid=\"154\">\n<div class=\"post__main \" data-reactid=\"155\">\n<div class=\"post__container\" data-reactid=\"170\">\n<div class=\"post__content\" data-reactid=\"187\">\n<article class=\"post__article\" data-reactid=\"194\">\n<div data-reactid=\"203\">\n<p>Despite initial fears that Trump\u2019s inflammatory campaign rhetoric might hurt his brand, by the time he was elected president buyers were eagerly snapping up Ocean Club units in a rush\u2014the last of the developer-controlled condos were sold at the end of 2016. The project\u2019s developer Newland International Properties had noted under \u201cRisk Factors\u201d in an October 2015 debt offering document that Trump\u2019s campaign \u201cmay negatively impact potential buyers\u2019 perceptions of Trump Ocean Club.\u201d But the concerns turned out to be unfounded, as \u201cdemand spiked in the weeks following Mr. Trump\u2019s election, with buyers betting that the Trump brand will surge in value,\u201d noted the managing director of Punta Pacifica Realty, a local sales and management company that handled many of the final deals and tracked Ocean Club sales data. In a recent press release titled \u201cNew Interest for Trump Project in Panama City,\u201d he wrote that \u201csince the election, PPR has seen the trend continue, with inquiries high as potential buyers investigate the impact of the Trump Effect on the building\u2019s values.\u201d<\/p>\n<h4><a name=\"When_The_Trumps_First_Met_Martinelli\"><\/a>When The Trumps First Met Martinelli<\/h4>\n<p>The Trump family first met Martinelli back in 2006, when Ocean Club developer Roger Khafif invited him to an early meeting with Ivanka, Eric, Donald Jr., and a handful of local government representatives including the mayor of Panama City. \u201cI was friends with Ricardo from way before he became president,\u201d Khafif says, adding that he\u2019s \u201cknown him for the last 20 years or so.\u201d \u201cPanama is a small country, everybody knows everybody,\u201d Khafif says, describing that early 2006 meeting with Martinelli as more of a social networking event. Martinelli was then a prominent businessman who owned one of the biggest and most visible companies in Panama, the supermarket chain Super 99, and was also the leader of the pro-business Cambio Democr\u00e1tico party.<\/p>\n<figure class=\"inline-large inline inline column-container\">\n<div class=\"image-wrapper\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/fast-company-res.cloudinary.com\/image\/upload\/w_596\/fc\/3067820-inline-i-3-the-panama-connection-trump-and-his-fugitive.jpg\" alt=\"\" width=\"844\" height=\"844\" \/><\/div><figcaption><em><strong>Donald Trump<\/strong> speaks with Panama\u2019s President <strong>Ricardo Martinelli<\/strong> during the inauguration ceremony of the Trump Ocean Club in Panama City on July 6, 2011.<span class=\"credit\">[Photo: STR\/AFP\/Getty Images]<\/span><\/em><\/figcaption><figcaption><\/figcaption><\/figure>\n<p>Khafif says that he had previously sold Martinelli an apartment at a smaller resort project that he\u2019d worked on in the past, but wasn\u2019t aware of any stake that Martinelli may have acquired in the Ocean Club.<\/p>\n<aside class=\"pullquote\"><q>Martinelli\u2019s interest in the hotel was not just personal<\/q><\/aside>\n<p>Still, in the small world that is Panama, Martinelli\u2019s interest in the hotel was not just personal. He was a director of Global Bank, one of the largest banks in the country, whose subsidiary Global Financial Funds became the co-trustee for the project a couple of years after the complex opened in 2011. Global Financial Funds replaced the previous co-trustee, HSBC\u2019s Panama unit, in 2013, the same year that <a href=\"http:\/\/money.cnn.com\/2012\/12\/10\/news\/companies\/hsbc-money-laundering\/\" target=\"_blank\">HSBC sold its Panamanian assets to a Colombian bank<\/a>. Khafif says that Global Bank was \u201ca bank we used to work with\u201d before signing them on in 2013, and insisted that Martinelli \u201chad nothing to do with\u201d the bank\u2019s role as co-trustee of the Ocean Club.<\/p>\n<\/div>\n<p><!-- react-empty: 204 --><\/p>\n<div data-reactid=\"205\">\n<p>As co-trustee, Global Financial Funds gained a view into the project\u2019s books and buyers, and was \u201csupposed to make sure money was spent the right way,\u201d as Khafif puts it. Global Financial Funds was responsible for receiving funds coming in from rentals and sales accounts and for transferring it to a disbursement account, after having reserved or paid Trump\u2019s commission for the licensing of his name. As co-trustee, Global Financial Funds was also given custody of certain collateral related to the Ocean Club, such as the original stock certificates.<\/p>\n<p>Global Bank, where Martinelli\u2019s son Ricardo (Rica) also became a director and his wife has been listed as an alternate director, was recently singled out by the <em>Times<\/em> as being \u201cone of three Panamanian banks whose outlook was recently revised by S &amp; P Global to negative from stable, reflecting <a href=\"https:\/\/www.nytimes.com\/2016\/12\/03\/world\/americas\/-panama-papers-leak.html\" target=\"_blank\">\u2018shortfalls in regulation, supervision, governance, and transparency in the Panamanian financial system.&#8217;\u201d<\/a><\/p>\n<p>Global Bank declined to tell <em>Fast Company<\/em> if Martinelli still serves on the bank\u2019s board or in any other capacity. There is still a Ricardo Martinelli listed on the board of Global Bank subsidiary Global Valores, which offers investment products and services, on the company\u2019s website. (A few hours after <em>Fast Company<\/em> reached out to Global Bank and the former president\u2019s son Rica, the bank\u2019s webpage listing this Martinelli on the board began redirecting to another part of the company\u2019s website.)<\/p>\n<h4><a name=\"Corruption_Bullying_And_Blackmail\"><\/a>Corruption, Bullying, And Blackmail<\/h4>\n<p>The Trumps\u2019 admiration of Martinelli appeared to be unaffected by the cascade of international news about his increasingly authoritarian and vindictive behavior, blown open by WikiLeaks\u2019 2010 release of U.S. diplomatic cables, in the year before the family publicly heaped praise on him. Mainstream news outlets like the <em>Times<\/em> <a href=\"http:\/\/www.nytimes.com\/2010\/12\/26\/world\/26wikidrugs.html?pagewanted=all&amp;_r=0\" target=\"_blank\">covered these revelations published by WikiLeaks<\/a>\u2014one of Trump\u2019s favorite sources during the U.S. election\u2014about Martinelli in great detail starting in late 2010. According to the cables, Martinelli ruled by \u201cbullying and blackmail,\u201d and had threatened to stop cooperating with the United States unless American officials helped him with a wiretapping program. The cables documented U.S. Embassy officials in Panama sounding red alarms over Martinelli beginning as early as the second week of his 2009-2014 administration. That\u2019s when, as <em>McClatchy<\/em> noted, the U.S. Ambassador to Panama presciently warned that he was <a href=\"http:\/\/www.mcclatchydc.com\/news\/special-reports\/article24626320.html\" target=\"_blank\">\u201calmost certain to spell trouble for Panama\u2019s democratic institutions.\u201d <\/a><\/p>\n<aside class=\"pullquote\"><q>\u201cWe never saw anything like this, even under the military dictatorship.\u201d<\/q><\/aside>\n<p>Panama\u2019s anti-corruption czar Ang\u00e9lica Mayt\u00edn Justiniani said that the amount lost to corruption in Martinelli\u2019s administration is <a href=\"http:\/\/www.mcclatchydc.com\/news\/nation-world\/world\/article24779503.html\" target=\"_blank\">\u201cpossibly in the billions of dollars,\u201d <\/a> and that \u201cit\u2019s obvious that a lot of the money is outside Panama,\u201d <em>McClatchy<\/em> reported in 2015. She added that \u201cwe\u2019re learning of midlevel [former] officials who have assets of $25 million and 10 properties. We never saw anything like this, even under the military dictatorship.\u201d A Panamanian law professor and human rights activist concurred in an interview with NPR that Martinelli <a href=\"http:\/\/www.npr.org\/sections\/parallels\/2015\/07\/01\/418964649\/as-panamas-economy-booms-so-do-concerns-over-debt-and-the-environment\" target=\"_blank\">\u201cdid more harm to the country than even the dictatorships of the last century,\u201d<\/a> as \u201ceven the militaries, they were not able to develop the degrees and the practice of corruption like Martinelli did.\u201d<\/p>\n<p>Trump\u2019s previous statements implying that overseas corruption was just another cost of doing business suggest that the allegations wouldn\u2019t have raised many red flags anyway. When Walmart\u2019s massive Mexican bribery scandal broke in 2012, Donald Trump said that the U.S. anti-bribery law that applies internationally, the Foreign Corrupt Practices Act, is a <a href=\"https:\/\/www.ft.com\/content\/a5b6d5e8-c951-11e6-8f29-9445cac8966f\" target=\"_blank\">\u201chorrible law and it should be changed.\u201d<\/a> \u201cEvery other country in the world is doing it and we\u2019re not allowed to. It puts us at a huge disadvantage\u2026the world is laughing at us,\u201d he said.<\/p>\n<p>A glimpse into the magnitude of that alleged corruption was revealed in federal court in Brooklyn in December, where Latin America\u2019s largest construction company, Odebrecht, pleaded guilty in a case brought by officials in the United States, Brazil, and Switzerland involving a global bribery scheme spanning a dozen countries. Panama\u2019s current government says that the Martinelli administration was the recipient of Panama\u2019s share of these bribes (Martinelli\u2019s sons have denied any involvement to the local press). On January 12, Panama\u2019s attorney general said that Odebrecht had agreed to pay the Panamanian government more than $59 million in reparations for the bribes it allegedly paid to secure contracts between 2010 and 2014, while Martinelli was president. <a href=\"http:\/\/www.reuters.com\/article\/panama-corruption-odebrecht-idUSL5N1FE7JL\" target=\"_blank\">\u201cThe sum is the amount in bribes Odebrecht admitted<\/a> paying to officials and intermediaries there in a plea agreement disclosed in December in a U.S. court,\u201d <em>Reuters<\/em> reported. Odebrecht, along with its affiliated petrochemical firm, would pay at least $3.5 billion in penalties in the global case, <a href=\"https:\/\/www.nytimes.com\/2016\/12\/21\/business\/dealbook\/odebrecht-brazil-company-bribe-kickback-braskem.html\" target=\"_blank\">the biggest penalty ever for a violation of the Foreign Corrupt Practices Act<\/a>, reports the <em>Times<\/em>.<\/p>\n<\/div>\n<p><!-- react-empty: 206 --><\/p>\n<div data-reactid=\"207\">\n<p>At the end of January, Panama charged and ordered the investigation of 17 people in the Odebrecht bribery case, reportedly including Martinelli\u2019s sons Rica and Luis Enrique. And on February 14 their government said that<a href=\"https:\/\/www.yahoo.com\/news\/panama-says-interpol-issued-alerts-ex-presidents-sons-202024407.html\" target=\"_blank\">Interpol had issued international \u201cred notices\u201d for Martinelli\u2019s sons Ricardo (Rica) and Luis Enrique<\/a> in the Odebrecht case, at the request of Panama\u2019s anti-corruption prosecutor. Some of the money was allegedly laundered through Swiss bank accounts, and such Martinelli-controlled accounts containing $22 million were reportedly frozen in the process, <a href=\"http:\/\/www.univision.com\/noticias\/corrupcion\/tres-familiares-del-expresidente-martinelli-vinculados-en-panama-a-los-sobornos-de-odebrecht\" target=\"_blank\">according to <em>Univision<\/em><\/a>.<\/p>\n<aside class=\"pullquote pull-right\"><q>\u201cI\u2019m a victim of rigged proceedings.\u201d<\/q><\/aside>\n<p>Since fleeing Panama, Martinelli has blamed his troubles on \u201crigged\u201d circumstances engineered by political enemies who are a threat to his life. In response to the Panamanian Supreme Court\u2019s ruling demanding his detention to face the charges against him, Martinelli wrote in a letter in late 2015 that <a href=\"http:\/\/www.cbc.ca\/news\/world\/ricardo-martinelli-panama-contempt-1.3375958\" target=\"_blank\">\u201clike those now detained illegally, I\u2019m a victim of rigged proceedings, of coerced or manufactured witnesses <\/a> and it is ever more evident the violations to the presumption of innocence and due process.\u201d<\/p>\n<p>Martinelli is just one of several foreign leaders suspected of corruption abroad who have found refuge in the United States. There are explicit government policies \u201cdesigned to keep the United States from becoming a haven for corrupt officials,\u201d but a number of such officials fleeing their legal systems back home <a href=\"https:\/\/www.propublica.org\/article\/corrupt-foreign-officials-find-refuge-in-united-states\" target=\"_blank\">\u201chave slipped through the cracks,\u201d<\/a> reported <em>ProPublica<\/em> in a recent article co-published with the <em>Miami Herald<\/em>, calling Martinelli \u201cone of the most prominent cases.\u201d Proclamation 7750, issued by George W. Bush in 2004, has the force of law and instructs the State Department \u201cto ban officials who have accepted bribes or misappropriated public funds when their actions have \u2018serious adverse effects on the national interests of the United States.&#8217;\u201d Under these rules, U.S. officials \u201cdo not need a conviction or even formal charges to justify denying a visa,\u201d and can do so \u201cbased on information from unofficial, or informal sources, including newspaper articles,\u201d noted<em> ProPublica<\/em>.<\/p>\n<p>In response to the article, Martinelli\u2019s spokesman released a letter declaring that <a href=\"https:\/\/twitter.com\/rmartinelli\/status\/808043081673166850\" target=\"_blank\">\u201cit is wrong to say that former President Martinelli is in the United States to avoid facing these political processes.<\/a> Actually having no accused status and haven\u2019t not being [sic] formally charged, he has faced each of this [sic] processes through his attorneys as granted by our laws and constitution.\u201d Martinelli\u2019s letter claimed that \u201cin Panama his life is threatened by the political persecution of President Juan Carlos Varela,\u201d and even accused the current administration of using \u201ctorture\u201d to extract false accusations against him. Martinelli\u2019s team added that \u201cthere is no documentary evidence or material that links former President Ricardo Martinelli in the alleged facts.\u201d<\/p>\n<p>Despite several requests for comment, Martinelli declined to be interviewed for this story.<\/p>\n<h4><a name=\"The_American_Martinelli_\"><\/a>The American Martinelli<\/h4>\n<p>Trump and Martinelli\u2019s mutual affection seems to be partly based on their status as wealthy men with political ambitions who appear to be unmoved by concerns over conflicts of interest. By 2015, Martinelli\u2019s net worth had risen to $1.1 billion, according to the Bloomberg Billionaires Index. Aside from Super 99, he has other large holdings in media, real estate, banking, energy, and sugar, and owns a plane, two helicopters, and a yacht, according to <em>Bloomberg<\/em>. Martinelli was elected on the promise that he would run Panama as he ran his businesses. With his election in 2009, he had perfected the style of right-wing populism that Trump is selling to Americans today. Martinelli\u2019s massive personal wealth, the campaign sales pitch went, made him the only outsider immune to influence and able to dismantle an entrenched and corrupt political establishment.<\/p>\n<aside class=\"pullquote\"><q>He had perfected the style of right-wing populism that Trump is selling to Americans today.<\/q><\/aside>\n<p>Trump\u2019s campaign was so resonant with Martinelli\u2019s that many Panamanians today refer to Trump as the \u201cAmerican Martinelli.\u201d They even shared the same political operative, Republican strategist Alex Castellanos, who worked on Martinelli\u2019s campaign in 2009 and guided a pro-Trump super PAC in 2016. Castellanos, a high-profile political and corporate consultant, appeared regularly on <em>Meet the Press<\/em> and CNN during the campaign as a Trump supporter (though he was a Trump critic before the nomination).<\/p>\n<\/div>\n<p><!-- react-empty: 208 --><\/p>\n<div data-reactid=\"209\">\n<p>Castellanos has said that the now-fugitive leader, whom he referred to as \u201cPanama\u2019s version of Italy\u2019s Silvio Berlusconi,\u201d \u201cwas politically incorrect on the good days, ragingly out of control on others.\u201d <a href=\"http:\/\/www.cnn.com\/2016\/01\/11\/opinions\/castellanos-having-fun-campaigns\/\" target=\"_blank\">As with Trump, \u201cwe couldn\u2019t hide his affluence so we celebrated it,\u201d<\/a> Castellanos explained, adding that \u201cwe used his wealth without apology, as inspiration for every Panamanian\u2019s success.\u201d<\/p>\n<h4><a name=\"One_Of_the_Most_Beautiful_Buildings_In_The_World\"><\/a>\u201cOne Of the Most Beautiful Buildings In The World\u201d<\/h4>\n<p>The Trump Ocean Club tower that Martinelli helped to inaugurate in 2011 was heralded as the icon of Panama City\u2019s rapidly expanding skyline\u201350 skyscrapers have been built around the crowded shoreline since 2007. (There is also one of Martinelli\u2019s Super 99 supermarkets just a few blocks from the Ocean Club, to which the complex offers free shuttle service.)<\/p>\n<figure class=\"inline-large inline inline column-container\">\n<div class=\"image-wrapper\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/fast-company-res.cloudinary.com\/image\/upload\/w_596\/fc\/3067820-inline-i-2-the-panama-connection-trump-and-his-fugitive.jpg\" alt=\"\" width=\"844\" height=\"844\" \/><\/div><figcaption><em><span class=\"credit\">[Photo: via <a href=\"https:\/\/www.trumphotels.com\/panama\" target=\"_blank\">Trump Hotels<\/a>]<\/span><\/em><\/figcaption><figcaption><\/figcaption><\/figure>\n<p>The Ocean Club\u2019s official website explains that the goal was to build \u201cthe most spectacular development in Panama\u2019s history,\u201d and Trump called it \u201cone of the most beautiful buildings in the world.\u201d Trump tweeted that the building had become <a href=\"https:\/\/twitter.com\/realDonaldTrump\/status\/341636247774707713\" target=\"_blank\">\u201cCentral America\u2019s architectural icon,\u201d<\/a> announcing that <a href=\"https:\/\/twitter.com\/realDonaldTrump\/status\/395992537963307008\" target=\"_blank\"> \u201cexcellence has arrived to So. America.\u201d<\/a> The Ocean Club was supposed to be a kind of Elysium on the isthmus for rich expats drawn to Panama for its relaxed tax and immigration laws, and one of \u201cthe best retirement programs in the world,\u201d according to its promotional material. Ivanka Trump explained to the <em>Latin Business Chronicle<\/em> that Panama\u2019s incentives were \u201cincredibly luring to international [investors], especially as we in America are being taxed to the hilt.\u201d Ocean Club condo units are exempt from property taxes through 2031.<\/p>\n<figure class=\"inline-video inline inline column-container\">\n<div class=\"image-wrapper\"><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/BMSlAb4RD7M?rel=1&amp;autoplay=0\" width=\"560\" height=\"340\" frameborder=\"0\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<\/figure>\n<p>Panama\u2019s long-term global strategic importance, due to the Panama Canal connecting the Pacific and Atlantic Oceans, has also helped reassure Ocean Club buyers that the region has some degree of economic stability. Today, a third of trade coming from Asia to America passes through the canal. The country has been the key passageway for interoceanic trade going back hundreds of years to the days of the Spanish Empire, when South America\u2019s resources like the gold and silver of the Inca empire were shipped to Spain via Panama. Martinelli had also served as chairman of the board of directors of the Panama Canal Authority and as minister of Canal Affairs from 1999 to 2003.<\/p>\n<aside class=\"pullquote pull-right\"><q>\u201cI think it was a political stupidity on the part of Donald Trump.\u201d<\/q><\/aside>\n<p>Trump famously outraged many Panamanians in the year before the Ocean Club opening, when he lamented that the canal had just been given back to the Panamanian people. \u201cWe gave it to Panama. We didn\u2019t say, here, take us, pay us $100 billion over a 10-year period or 50-year period. Who are these people that are making these decisions? So, we have very bad decision-makers in this country. And this country didn\u2019t get great by having decisions like that made,\u201d Trump told Wolf Blitzer in 2010. In response, Panama City councillors voted unanimously to declare Donald Trump \u201cpersona non grata\u201d in March 2011, just months before his project\u2019s grand opening there. Panama\u2019s Commerce and Industry Minister Roberto Henriquez said that \u201csomebody who has 400 million dollars invested in Panama should not speak this way,\u201d and that <a href=\"https:\/\/sg.finance.yahoo.com\/news\/Panama-City-declares-Trump-afpsg-4126010404.html\" target=\"_blank\">\u201cI think it was a political stupidity on the part of Donald Trump,\u201d<\/a> <em>AFP<\/em> reported. After the backlash, Trump issued a rare conciliatory statement and spoke to Panamanian press, insisting that he was simply criticizing the negotiating abilities of American politicians and that \u201cif I were from Panama, I\u2019d try and make the same kind of a deal, I respect that.\u201d <a href=\"https:\/\/www.youtube.com\/watch?v=kXPTl7YJWqU\" target=\"_blank\">\u201cI paid Panama a great compliment,\u201d<\/a> he explained.<\/p>\n<p>To reduce the bottleneck effect at its gates as shipping traffic and the size of container ships increased over the years, Panama announced plans for a $5.2 billion expansion of the canal in 2006\u2014on the same day that the Trump Ocean Club <a href=\"http:\/\/www.nytimes.com\/2006\/05\/05\/realestate\/trump-ocean-club-international-hotel-tower.html\" target=\"_blank\">was launched in New York City<\/a>. The canal expansion was another important marketing tool for the development, signaling Panama\u2019s continued economic desirability. \u201cPanama is amazing. It\u2019s thriving. You know why? The canal is doing so well, and they\u2019re now expanding the Panama Canal,\u201d Trump told CNN. \u201cHome to the number one shipping and trade canal in the world,\u201d Ocean Club promotional material explained.<\/p>\n<p>Panama\u2019s location connecting South and Central America\u2014and the vast, swampy and notoriously lawless Dari\u00e9n Gap border region with Colombia\u2014has also raised persistent security concerns since it has served as a key conduit for smuggling for decades. Former U.S. Ambassador Barbara Stephenson noted the arrest of Martinelli\u2019s second cousin Ramon Martinelli in Mexico for <a href=\"http:\/\/www.mcclatchydc.com\/news\/special-reports\/article24626320.html\" target=\"_blank\">his role in a drug smuggling ring that was transporting up to $30 million a month through Panama\u2019s Tocumen International Airport<\/a>, <em>McClatchy<\/em> noted. President Martinelli later told Stephenson, according to the cable, that Ramon was the \u201cblack sheep\u201d of the family and that his government would have arrested him if Mexico didn\u2019t.<\/p>\n<\/div>\n<p><!-- react-empty: 210 --><\/p>\n<div data-reactid=\"211\">\n<p>Panama\u2019s status as a nexus of drug smuggling, money laundering, and strategic importance were notoriously embodied in former Panamanian dictator Manuel Noriega, a paid CIA asset whose nefarious activities prompted President George H. W. Bush to launch Operation Just Cause, the invasion of Panama in late 1989 that involved tens of thousands of U.S. troops. Noriega was under indictment in Florida on drug trafficking charges before the invasion, and after his capture and arrest in Panama, he was taken back to the United States and <a href=\"http:\/\/www.nytimes.com\/1992\/07\/11\/us\/noriega-sentenced-to-40-years-in-jail-on-drug-charges.html\" target=\"_blank\">sentenced to 40 years in prison (later reduced to 30) on drug trafficking, money laundering, and racketeering charges<\/a>. He was the first foreign head of state to be convicted on criminal charges in a U.S. court. (In 2010, Noriega was extradited to France on further money laundering charges, where he received a seven-year sentence, but in 2011 was extradited back to Panama to serve a sentence there for the murder of opponents during his rule.)<\/p>\n<aside class=\"pullquote\"><q>\u201cPanama was no doubt a target of money launderers.\u201d<\/q><\/aside>\n<p>While Trump constantly raged against \u201cglobalists\u201d during his presidential campaign, the Ocean Club was meant to be a magnet for precisely the kind of borderless flow of money that he now loves to criticize. (Panama also has the second-largest free-trade zone on Earth, after Hong Kong, a fact highlighted in the Ocean Club\u2019s sales pitch.) Panama has been a pillar of globalization for hundreds of years, in recent decades known as one of the world\u2019s premier \u201cmoney laundries\u201d for its facilitation of opaque international financial transactions and corporate confidentiality laws. (The new government of Panama says that it is implementing greater transparency laws, though as President Varela admitted to the <em>Times<\/em> last year, <a href=\"https:\/\/www.nytimes.com\/2016\/04\/11\/opinion\/dont-blame-panama-tax-evasion-is-a-global-problem.html?_r=0\" target=\"_blank\">\u201cunder previous governments, Panama was no doubt a target of money launderers.\u201d<\/a>)<\/p>\n<p>Real estate in Panama City was booming in part because of all the dirty money flowing in from around the world. As a U.S. Embassy cable from 2007 released by WikiLeaks noted, <a href=\"https:\/\/wikileaks.org\/plusd\/cables\/07PANAMA255_a.html\" target=\"_blank\">\u201cultimately, real estate projects financed by the proceeds of criminal activity distort the market<\/a> for legitimate developers and create excess supply, which may be why 20,000 luxury apartments are projected to be available in Panama City between now and 2010.\u201d Pointing out the city\u2019s noticeably dark skyline, photographer Paolo Woods told the <em>Times<\/em> in 2015: \u201cWhat\u2019s amazing is most of the skyscrapers are dark,\u201d adding that <a href=\"https:\/\/lens.blogs.nytimes.com\/2015\/11\/03\/avoiding-taxes-legally-offshore\/\" target=\"_blank\">\u201cthey\u2019re just there to launder money.\u201d<\/a><\/p>\n<p><a href=\"http:\/\/www.bbc.com\/news\/world-latin-america-27945558\" target=\"_blank\">As the BBC put it in 2014<\/a>, \u201cthe Russian mafia is believed to control some prime real estate in Panama City while the Sinaloa Cartel\u2014 perhaps the most powerful drug-trafficking organization in the world\u2014brings its cocaine from Colombia via Panama on its route north.\u201d<\/p>\n<p>Some international buyers of Trump Ocean Club units were assisted by Panamanian law firm Mossack Fonseca with the creation of accompanying offshore shell companies set up to facilitate those purchases, according to emails released in last year\u2019s infamous Panama Papers leak. One of the firm\u2019s principals, Ramon Fonseca, also served as an advisor to then-President Martinelli. On February 9, Fonseca and the co-head of the firm, J\u00fcrgen Mossack, were taken into custody and denied bail by Panamanian authorities as part of the government\u2019s investigation into the Odebrecht bribery scandal. The firm is just one of many other law firms and lawyers who assisted buyers of Trump Ocean Club units with creating such offshore entities, according to Panamanian corporate records. <a href=\"http:\/\/www.mcclatchydc.com\/news\/nation-world\/national\/article74789322.html\" target=\"_blank\">The leaked emails show the Ocean Club development company\u2019s COO initiating contact with and offering to cover travel expenses for Mossack Fonseca lawyers<\/a>, <em>McClatchy<\/em> reported.<\/p>\n<p>(Panamanian shell companies have also been a popular vehicle for buyers of luxury Trump properties back home. As <em>Forbes<\/em> reported in a story about money laundering in 1986, \u201conce the money enters the banking stream through shady banks, it is indistinguishable from other money. For example, fully one-third the apartments in Manhattan\u2019s super-expensive condominium Trump Tower are owned by foreign corporations, mostly from Panama and the Netherlands Antilles.\u201d Among these Panama-routed early Trump funds were those of Haitian dictator \u201cBaby Doc\u201d Duvalier, who famously acquired a foothold in Trump Tower in 1983, the year it opened, when his very close friend and family decorator purchased a unit. The condo, then worth $1.65 million, was paid for under cover of a Panamanian shell company, according to a 1986 lawsuit filed in the U.S. by the Haitian government.)<\/p>\n<aside class=\"pullquote pull-right\"><q>The building\u2019s sales team put extra emphasis on Russian investors.<\/q><\/aside>\n<p>While marketing the Ocean Club to the global jet set crowd, the building\u2019s sales team put extra emphasis on Russian investors looking to park cash overseas, and held Russian marketing events around the world from Moscow to Mar-a-Lago. As the <em>Times<\/em> put it in an examination of Trump\u2019s Russian forays on January 16, <a href=\"https:\/\/www.nytimes.com\/2017\/01\/16\/us\/politics\/donald-trump-russia-business.html\" target=\"_blank\">\u201che discovered that his name was especially attractive in developing countries where the rising rich aspired to the type of ritzy glamour he personified.\u201d<\/a> Panama City became one of the preferred Trump projects for Russian investors looking to move their money offshore, offering a more affordable South Florida-type lifestyle with relaxed tax and immigration laws, and stable property rights. (The Trump brand also became popular in places like \u201cLittle Moscow\u201d in South Florida, where as the <em>Post<\/em> reported in November, <a href=\"https:\/\/www.washingtonpost.com\/politics\/in-little-moscow-russians-helped-donald-trumps-brand-survive-the-recession\/2016\/11\/04\/f9dbd38e-97cf-11e6-bb29-bf2701dbe0a3_story.html\" target=\"_blank\">\u201cRussians helped Donald Trump\u2019s brand survive the recession.\u201d<\/a>) As the Trump Organization\u2019s chief counsel told the <em>Post<\/em>, \u201cthere\u2019s newfound wealth in Russia,\u201d and \u201cany developer is going to where you have a chance of selling your product.\u201d<\/p>\n<\/div>\n<p><!-- react-empty: 212 --><\/p>\n<div data-reactid=\"213\">\n<p>The \u201cnewfound wealth\u201d that he was referring to included the vast amounts of cash that had long been pouring out of Russia\u2019s chaotic post-Soviet economy, capital flight that is today estimated to have exceeded $1 trillion. This newfound Russian wealth became a valued part of the Trump Organization\u2019s sales of condos, with Donald Trump Jr. noting in 2008 that \u201cRussians make up a pretty disproportionate cross-section of a lot of our assets. <a href=\"http:\/\/time.com\/4433880\/donald-trump-ties-to-russia\" target=\"_blank\">We see a lot of money pouring in from Russia.<\/a>\u201d<\/p>\n<p>Aside from global players, the Trump Ocean Club also became a favorite of Panama\u2019s domestic elite, and hosted a number of high-profile Martinelli-attended events. Wharton\u2019s Global Forum Panama featured a <a href=\"http:\/\/www.whartonpanama14.com\/panama\/Scheduleday2.html\" target=\"_blank\">one-on-one discussion with Martinelli<\/a>, and he attended <em>Forbes<\/em> magazine\u2019s launch party for its Central American edition as a VIP guest. \u201cPanamanians still talk about the lavish wedding of Martinelli\u2019s private secretary, Adolfo \u2018Chichi\u2019 de Obarrio a year later [in 2013] at the luxury Trump Ocean Club,\u201d <a href=\"http:\/\/www.mcclatchydc.com\/news\/nation-world\/world\/article24779503.html\" target=\"_blank\">attended by Martinelli and members of the ruling party, reported <em>McClatchy<\/em> in early 2015<\/a>. The reporter noted that \u201cde Obarrio, who hadn\u2019t yet turned 30, was gatekeeper for nearly all government purchases and a friend of Martinelli\u2019s son,\u201d and that his wedding at Trump\u2019s Ocean Club featured a \u201cmassive fireworks display.\u201d<\/p>\n<p>As the criminal investigations around his inner circle started to close in in early 2015, Martinelli fled Panama for his waterfront luxury condo in Miami, in a 20-story building made famous for its appearances in <em>Scarface<\/em> and on <em>Miami Vice<\/em>. Later that year, he set up a Florida company called White Shark Developments LLC. A few days after its incorporation, <a href=\"https:\/\/twitter.com\/rmartinelli\/status\/651486410629738496\" target=\"_blank\">he tweeted<\/a> that a visa was required to stay in the United States for up to 180 days, unless you invest at least $500,000 to get an investor visa.<\/p>\n<p>Martinelli has remained an active presence on Twitter from his American sanctuary, where he has denied all wrongdoing. In an interview with <em>Bloomberg<\/em> reporters at a Miami cafe in 2015, he said that his political opponents <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2015-09-17\/from-miami-s-scarface-pad-an-exiled-billionaire-fights-back\" target=\"_blank\">\u201care so afraid of my tweets,\u201d<\/a> warning, \u201clook what happened in the Arab Spring.\u201d Martinelli was stripped of his immunity to criminal prosecution in 2015, and at the end of September the government of Panama asked the United States to extradite him to face the corruption and illegal spying charges.<\/p>\n<h4><a name=\"Ocean_Club_Condo_Owners_To_Trumps_Team_Youre_Fired\"><\/a>Ocean Club Condo Owners To Trump\u2019s Team: You\u2019re Fired<\/h4>\n<p>Back in Panama, the Trump Ocean Club had its own legal meltdown. In 2010, Trump said that the units were \u201cselling like hotcakes.\u201d But just a few months after the tower\u2019s 2011 inauguration, the project\u2019s developer defaulted on the debt and later declared bankruptcy. By 2015, <a href=\"http:\/\/www.pbs.org\/newshour\/rundown\/panama-development-saga-offers-insight-trump-business-practices\/\" target=\"_blank\">the condo owners voted to fire the Trump management team<\/a>, citing \u201cmore than $2 million in unauthorized debts, paying its executives undisclosed bonuses, and withholding basic financial information from owners,\u201d reported the <em>Associated Press<\/em>.<\/p>\n<aside class=\"pullquote\"><q>Trump\u2019s management company refused to accept being fired.<\/q><\/aside>\n<p>The condo owners\u2019 board said that the Trump team had pulled all of this off by what the <em>AP<\/em> described as \u201cfine print chicanery.\u201d Trump\u2019s management company refused to accept being fired, then announced that it was quitting and demanded a $5 million termination fee. The <em>AP<\/em> then broke the news a month later that Trump had filed a confidential claim with the Paris-based International Chamber of Commerce arbitration court demanding up to $75 million, <a href=\"http:\/\/www.theglobeandmail.com\/news\/world\/trump-wants-75-million-after-panama-condo-board-says-youre-fired\/article27099962\/\" target=\"_blank\">asserting that his management team had been wrongfully fired.<\/a> (The <em>Washington Post<\/em> reported in January that the dispute had ended in a confidential settlement.) Trump\u2019s team is still managing the hotel portion of the Ocean Club, for which it has a 40-year contract.<\/p>\n<p>As the <em>AP<\/em> put it, \u201cthe Trump Organization\u2019s adventures in Panama provide a window into how these traits have filtered into his business empire\u2014and the style of management that could be expected in a Trump White House. Transparency and close attention to expenses are not strengths. Squeezing the most from contractual language is.\u201d One retired American doctor who had purchased a unit told the <em>AP<\/em> that \u201cI thought it was pretty safe, because we had Trump involved,\u201d but that he\u2019d since realized that \u201che\u2019s a predatory businessman.\u201d<\/p>\n<\/div>\n<p><!-- react-empty: 214 --><\/p>\n<div data-reactid=\"215\">\n<p>The last time a member of the Trump family appears to have visited Panama City was in December 2015, when Eric Trump travelled there to attend the Ocean Club\u2019s fourth anniversary party and <a href=\"http:\/\/www.prnewswire.com\/news-releases\/eric-trump-strengthens-his-commitment-to-panama-300187454.html\" target=\"_blank\">\u201cto strengthen and support the plans to improve the property in the near future,\u201d<\/a> according to a press release. In an interview with the <em>AP<\/em> that fall, the president\u2019s son dismissed the troubles inside the building as a sideshow to what the Ocean Club was really about\u2013\u201can amazing icon and, frankly, a great testament to America.\u201d<\/p>\n<p>Meanwhile, Martinelli spends his time in Miami meeting friends, posting photos of himself working out at the gym, mocking current Panamanian president Varela, sharing his favorite songs like the <a href=\"https:\/\/www.facebook.com\/RicardoMartinelliPTY\/posts\/1259342387484640\" target=\"_blank\">Bee Gees\u2019 \u201cHow Deep Is Your Love\u201d on Facebook<\/a>, and fulminating on social media about his political enemies. But he hasn\u2019t mentioned Trump on Facebook or Twitter since the inauguration.<\/p>\n<\/div>\n<\/article>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n<\/section>\n<\/section>\n<\/div>\n<\/article>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n<\/section>\n<\/section>\n<\/div>\n<\/article>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n<\/section>\n<\/section>\n<\/div>\n<\/article>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n<\/section>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Ricardo Martinelli, the ex-president of Panama facing extradition on corruption charges, helped him launch his first international property.<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[242,10,12,241,39,34,33,62,42,16,29,18,22,19,117,219,245,243,7,246,244,44],"class_list":["post-19270","post","type-post","status-publish","format-standard","hentry","category-news-articles-panama-perpsective","tag-boca-chica-real-estate","tag-bocas-del-toro","tag-boquete","tag-boquete-real-estate","tag-buenaventura","tag-casco-antiguo","tag-casco-viejo","tag-coffee-in-panama","tag-estate-homes-in-panama","tag-estate-planning","tag-exchange-property-in-panama","tag-foundations","tag-hydro-electric","tag-investments-in-panama","tag-los-quetzales-lodge","tag-move-to-panama","tag-offshore-real-estate-panama","tag-panama-papers","tag-panama-real-estate","tag-relocate-to-panama","tag-rum-in-panama","tag-travel-to-panama"],"yoast_head":"<!-- This site is optimized with the Yoast SEO 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