In October 2016, BuzzFeed reported: Donald Trump claimed he had a plan to save a failing Puerto Rican golf resort: He would streamline its budget and attract new members. Those promises, repeated for years, helped the club sell a raft of government-backed bonds that it had very little chance of repaying.
Trump collected hundreds of thousands of dollars in fees from the resort, but he never did oversee the golf course’s daily operations. He didn’t attract more than a handful of new members or reduce its multi-million dollar annual losses. Its costly, self-dealing contracts remained in place. In late 2011, six months after selling the bonds, the club defaulted, leaving Puerto Rican taxpayers — already suffering through a major economic crisis — on the hook for as much as $32.7 million, according to an analysis by Securities Litigation and Consulting Group.
The Trump family distanced itself from the project’s failure, claiming that the real estate developer merely licensed his name to the property. But a review of hundreds of pages of corporate and legal filings, undertaken by BuzzFeed News, shows that Trump promised the club’s investors and the government of Puerto Rico something entirely different. [Continue reading…]