{"id":26522,"date":"2019-07-09T10:29:17","date_gmt":"2019-07-09T15:29:17","guid":{"rendered":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=26522"},"modified":"2019-07-09T10:31:26","modified_gmt":"2019-07-09T15:31:26","slug":"lawsuit-trump-tax-evasion-panama-takes-strange-turn","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/lawsuit-trump-tax-evasion-panama-takes-strange-turn\/","title":{"rendered":"Lawsuit over Trump tax evasion in Panama takes a strange turn"},"content":{"rendered":"

\"\"<\/a>The Trump Ocean Club International Hotel (tallest) is seen in Panama City on February 28, 2018.<\/em>
\nPanamanian prosecutors are investigating a dispute between owners and the management of a Trump hotel, a skyscraper that cuts a distinctive figure among the towers crowding the capital city. \/ AFP PHOTO \/ Rodrigo ARANGUA (Photo credit should read RODRIGO ARANGUA\/AFP\/Getty Images)<\/em><\/p>\n

From suspicions of money laundering, to watching his name vanish from the building\u2019s facade, President Donald Trump\u2019s former property in Panama has long served as one of the main headaches for the president\u2019s ongoing business struggles since his ascension to the presidency.<\/p>\n

Now, an ongoing lawsuit threatens to open a new chapter in the saga of the former Trump Ocean Club property \u2014 and fresh questions about the building\u2019s finances.<\/p>\n

The building, over which Ivanka Trump helped oversee<\/a> construction and development, transferred to new owners last year, with Trump\u2019s name being removed wholesale from the building. Led by majority owner Orestes Fintiklis, the new owners recently filed a lawsuit in the Southern District of New York alleging that they\u2019d uncovered financial records showing<\/a> that the Trump Organization had spent years dodging Panamanian taxes.<\/p>\n

As The Washington Post summarized<\/a>:<\/p>\n

\n
<\/div>\n

In the filing, Fintiklis does not give a dollar figure for the amount of taxes Trump allegedly evaded. But he says his company could now face \u201cmillions of dollars in liability\u201d if Panama demands that it pay the taxes Trump did not. Fintiklis also asserts that the Panamanian authorities have audited the hotel\u2019s books and \u201cidentified the failure to withhold and pay income taxes relating to Trump\u2019s management fees.\u201d<\/p><\/blockquote>\n

The filing claims that the Trump Organization lied about salary expenses, amid other financial shenanigans, in order to limit its tax burden. Fintiklis added that the Trump Organization misled his company prior to the purchase, claiming that the building stood at the fore of Panama\u2019s luxury hotel market \u2014 even though, the Post added, Fitinklis said it was in reality \u201cfalling to the bottom of the market.\u201d (The Trump Organization has denied the allegations.)<\/p>\n

Just last week, the case took a strange turn, this time hinging on what documents can or should remain confidential.<\/p>\n

In a letter first flagged<\/a> by Courthouse News\u2019 Adam Klasfeld, the defendants\u2019 lawyers alleged that the Trump Organization\u2019s legal team had proposed that certain documents \u2014 or potentially all of them \u2014 remain confidential.\u00a0\u201cBased on our conversations with counsel, we suspect that Defendants\u2019 aim is to designate every document produced as \u2018confidential\u2019 or \u2018highly confidential,\u2019 which would preclude Plaintiffs\u2019 representatives from being able to look at key documents,\u201d the letter<\/a> read.<\/p>\n

According to the plaintiffs\u2019 attorneys, the Trump Organization is apparently \u201cworried about Mr. Fintiklis disclosing some sort of secret marketing information\u201d to other hotels. But the letter states that there\u2019s no real reason for such a drastic step, and that the Trump Organization\u2019s legal team hasn\u2019t explained why the proposed \u201crestriction is required or even standard practice for this case.\u201d<\/p>\n

The Trump Organization\u2019s legal team didn\u2019t take long to respond. In a short, two-page letter on Monday, the defendants\u2019 lawyers wrote<\/a> that the initial letter from the plaintiffs was an \u201cimproperly-filed letter brief.\u201d They acknowledged that the two sides had reached \u201can impasse regarding\u201d potential confidentiality, and suggested an \u201cinformal conference\u201d to hash things out, which the judge scheduled for July 17<\/a>.<\/p>\n

The debate over keeping all documents in the ongoing dispute about potential tax evasion confidential is just the latest in a line of bizarre developments surrounding the former Trump Ocean Club property. Not only has the building been credibly accused as the site of massive money laundering operations<\/a>, but last year a management scuffle broke out at the building, with the new management kicking out the Trump Organization wholesale. Shortly\u00a0thereafter, a Panamanian law firm representing the Trump Organization issued<\/a> a letter to then-Panamanian President Juan Carlos Varela threatening<\/a>\u00a0potential \u201crepercussions\u201d to Panama if the government didn\u2019t intervene on behalf of the Trump Organization.<\/p>\n\n

\n

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    The Trump Ocean Club International Hotel (tallest) is seen in Panama City on February 28, 2018. Panamanian prosecutors<\/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":[242,12,241,39,248,34,33,62,42,219,11,249,243,7,255,246,244,44],"class_list":["post-26522","post","type-post","status-publish","format-standard","hentry","category-news-articles-panama-perpsective","tag-boca-chica-real-estate","tag-boquete","tag-boquete-real-estate","tag-buenaventura","tag-casco","tag-casco-antiguo","tag-casco-viejo","tag-coffee-in-panama","tag-estate-homes-in-panama","tag-move-to-panama","tag-offshore-real-estate","tag-panama-offshore-real-estate","tag-panama-papers","tag-panama-real-estate","tag-panama-real-estate-bocas-del-toro","tag-relocate-to-panama","tag-rum-in-panama","tag-travel-to-panama"],"yoast_head":"\nLawsuit over Trump tax evasion in Panama takes a strange turn - Blog and Newsletter<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/lawsuit-trump-tax-evasion-panama-takes-strange-turn\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Lawsuit over Trump tax evasion in Panama takes a strange turn\" \/>\n<meta property=\"og:description\" content=\"The Trump Ocean Club International Hotel (tallest) is seen in Panama City on February 28, 2018. 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