Donald Trump’s Soured Baja Venture
Millions Lost by “Investors”.
I was appalled after I read the article about Donald Trump’s Baja venture appearing in the Los Angeles Times on March 7. It was an Associated Press news article which hit our nation.
I see little difference between Mr. Trump, the notorious Bernie Madoff and other scam artists that prey on unsuspecting people. Retired citizens and working adults entrusted Mr. Trump and his “partners” with over $32 million according to the article. Now all funds are reported to be lost, gone for good and “up-in-smoke.” No doubt these down payments for the project were siphoned-off to pay for all the advertising, promotions and fine parties; hosted to attract and entice buyers. But, as the real estate market imploded and construction cancelled – the “party” quickly ended.
Mr. Trump and his “partners” should have placed the investors’ funds in an interest-bearing escrow account. That would have protected “Mr. Goldberg,” “Mrs. Smith” and others from harmful loss. Mr. Trump should have paid for all the parties and promotions out of his own pocket along with his trusted partners. Why should Mr. Trump be able to share in all the positive upside on the project and not the downside? Why are retired couples – seeking better retirement years – left again with nothing? Mr. Trump should be a mensch and personally pay back the $32 million lost by the buyers.
Now, there is probably some legal reason why Mr. Trump won’t be held responsible. He’s no doubt got the best attorneys working on that right now. But morally Mr. Trump should pay back to “Mrs. Smith” and “Mr. Goldberg” all their lost monies – plus interest. People are hurting today across America. We don’t need another high-profile guy taking advantage of a trusting public. We’ve had enough of that Mr. Trump.
We don’t need the Donald Trump Medical Center erected in his honor now. We don’t need the Donald Trump Library and Arts Building constructed either. What we need from Mr. Trump is to act morally responsible and pay back the $32 million. After all, he can afford it – remember he’s a self-proclaimed billionaire. And most importantly it’s just the right thing to do. #
Ted Lux is the author of the investment book, Exposing the Wheel Spin on Wall Street and has written articles on a wide-array of business matters. He has been in the financial and real estate industry for more than 25 years.