President Donald Trump has another lawsuit facing him upon leaving office in January. The New York Times reported Thursday that Trump has tried "a maneuver" that would score millions for Trump and his siblings and lower their taxes.
Leonie Green of the Westminster Apartments in Brooklyn is among a group of tenants in a rent-regulated apartment building that the late Fred Trump Sr. owned. The group says that there has been a decade-long fraud committed against the residents to increase rents artificially through an "invoice-padding scheme."
At least 20 percent was added to the cost of materials for the apartments. The Trump children and a cousin split the profits.
"The maneuver generated millions of dollars for each sibling, with no work required," the Times reported. "While the siblings were still liable for income taxes, the maneuver allowed them to evade far-higher gift and estate taxes on part of the fortune they received from their father."
Basically, if the new boiler cost $50,000, the Trumps would say it was $60,000 and collect the profit in a way that would hide the funds from New York laws.
"New York laws governing rent-regulated apartments allow owners to increase rents based on the costs of major capital improvements. The Trumps based their applications for rent hikes on the artificially increased invoices."
The filing was submitted to the New York Supreme Court asking for the extra rent paid, plus interest and triple the damages. It would apply to "all current and former tenants in more than 30 apartment complexes. "