Everyone who invested in President Donald Trump’s “Trump Tower Toronto” project lost their money except Donald Trump, according to a report from The Toronto Star.
The reason that Trump was able to skate away from the deal with millions while other investors took a bath, the Star said, is because Trump himself never put any money on the line for the $500 million project, but rather licensed his name to the deal and agreed to promote it.
Trump Tower Toronto was plagued by problems from the very beginning, including the exposure of developer Leib Waldman as a fugitive from U.S. justice, wanted on charges of embezzlement and bankruptcy fraud.
Waldman was arrested and jailed, leaving a group novice investors holding the project’s strings as it was hit with multiple delays, changes in the original design, skyrocketing costs and struggles with Toronto’s weather.
Each time the group of investors would become nervous, however, Trump would assure them that his money was on the line as well and that he wouldn’t let them lose their money.
The hotel and condominium complex opened six months behind schedule in 2012 and began to lose money immediately, in spite of injections of cash from Russia’s state-owned Vnesheconombank or VEB.
The current owners removed the Trump name from the complex in August of this year after the project went into bankruptcy and arranged a buyout deal which netted Donald Trump $6 million, in addition to $1.7 million in management fees for a two-year period between 2014 and 2016.