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A 2018 Pulitzer Prize-winning New York Times investigation uncovered evidence that the Trump family had padded the cost of improvements they made to their residential buildings in Brooklyn, Queens, and Staten Island, then used these inflated figures to justify larger rent increases for tenants living in rent-regulated apartments; increases to the base rent which still exist today. Parker Waichman LLP has filed a class-action lawsuit against the Trump family on behalf of the 30,000 current tenants and more than 100,000 former tenants of these buildings.
On March 11, 2022, plaintiffs were granted the right to proceed with an Amended Complaint, charging Donald Trump and his cohorts with engaging in racketeering activities under the Racketeering Influenced Corrupt Organizations Act, commonly known as “RICO”. It appears from the face of the Complaint that the Trump defendants utilized fraudulent billings and charges for improvements in the tenant’s apartments to increase the rents under the Rent Stabilization Law. These increases were permanent, causing each successive tenant to also overpay.
If you lived in a Trump-owned building in one of these boroughs between August 1992 and today, call 800-968-7529 for a free consultation to learn how you can seek compensation for paying unfairly inflated rent.
According to the Times investigation, Donald Trump took charge of a plan that involved his siblings, a cousin, his father, and their advisers to create a sham corporation called All County Building Supply & Maintenance. All County had no offices and no employees, and its only listed address was the home of John Walter, a relative and longtime employee of the Trump family. This company would act as a purchasing agent for Fred Trump’s property management company.
Under this scheme, Fred Trump would negotiate the purchase of materials like windows, doors, and appliance for his properties, and All County would pay the vendors. Then, All County would invoice Fred Trump’s property management company for 20 to 50 percent more than it had paid. Fred Trump’s company would pay the inflated invoices, and the extra money went into the pockets of Donald Trump, his siblings, and cousin. Essentially, they had found a way for Fred Trump to give them money without paying estate or gift taxes.
Fred Trump’s apartment buildings were rent-regulated, but with this scheme, he could also unfairly increase rent for his tenants. By submitting these padded invoices to the city, Fred Trump could claim that he had made major capital improvements to the properties and get approval to raise rents by more than what would normally be allowed. These unfair rent increases would be compounded over time, so that even tenants who moved in long after the Trump family sold these buildings would still be paying inflated prices. The Times‘s analysis showed that even a $10 increase in rent for all of the Trump apartments back in 1995 could add up to more than $33 million in overpayments and counting.
Even Donald Trump’s niece, Mary L. Trump, has cited the Times‘s reporting in legal action against the Trump family, and it also contains strong evidence in support of tenants’ claims for compensation. In December 2020, Parker Waichman LLP lawyers filed a class-action complaint seeking to consolidate what could potentially be thousands of Trump lawsuits. If you might also have grounds to file a claim, contact us today to protect your legal rights.
Anyone who lived in a Trump-owned apartment building in either Brooklyn, Queens or Staten Island since August 1992 may be eligible to seek compensation through a Donald Trump tenant lawsuit. These properties include:
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