A real estate deal involving Donald Trump and his former business partner, Tom Barrack, became the subject of renewed focus in the ongoing civil fraud trial against the former U.S president. This deal, dating back over a decade, allegedly involved Trump’s efforts to convert the Old Post Office in Washington, D.C., into a luxury hotel.
Back in July 2011, Trump informed the federal government that Colony Capital, the firm founded by Barrack, was “heavily involved” in the project. This claim, revealed during courtroom proceedings, was elucidated in the course of testimony by Ivanka Trump, his daughter, and former employee.
The business relationship between Trump and Barrack did not last however. Barrack withdrew his participation from the project, leaving Trump to procure financing from Deutsche Bank instead.
The case against Trump alleges asset inflation on his part to obtain more favorable loan terms. According to these allegations, Trump secured Libor plus 4% after Barrack had offered Libor plus 5%-6% previously. The trial continues amidst the backdrop of much media and legal industry scrutiny.