Australian authorities simply couldn’t stomach Donald Trump’s alleged mob ties, according to government documents published by Rupert Murdoch’s newspaper,Ā The Australian, on Tuesday. The paper’s investigation reveals that Trump’s dream of building a casino in Sydney in the late 1980s was killed off by queasy officials who consideredĀ his operations in New Jersey “dangerous.”
In 1987, Trump had already opened two casinos in Atlantic City, New JerseyāTrumpās Castle and Trump Plazaāwith Trump Taj Mahal on its way.Ā He was looking to expand the empire Down Under by bidding for a spot on Sydney’s picturesque harbor in partnership with a local developer, theĀ Kern Corporation.
When the state government officials met that May to considerĀ proposals for the site, they were presented with a police report that was unambivalent in opposing the plan for a one clear reason. “Atlantic City would be a dubious model for Sydney and in our judgment,” police noted, according to a summary contained in government minutes. “The Trump Mafia connections should exclude the Kern/Trump consortium.”Ā
Also included in the documents published byĀ The Australian is aĀ finĀancial report concluding Trumpās partnership had overstated estimated revenue from the Ācasino.
Trump’s comments about the Sydney casinoĀ at the time foreshadow his bellicosity as president. FromĀ The Australian:
Mr Trump boasted about his bid for the casino before cabinet reached its decision. āIf our design is chosen, it will not only be the largest, but one of the most magnificent, one of the most beautiful hotels anywhere in the world,ā he toldĀ The AustralianĀ in February 1987. A month before the cabinet decision, he pulled out of the casĀino race but three days later announced he was still a contender.
It turns out Sydney dodged a bullet. Just a year later, Trump was trying to convince New Jersey officials he had theĀ financial wherewithal to open Trump Taj Mahal, according to January 2016Ā Mother Jones reporting onĀ his Atlantic City bankruptcies:Ā
At a hearing in 1988, Trump assured regulators that his reputation would secure him the necessary financing. In particular, he said he could get loans at prime ratesāthe interest rate that commercial banks offer their most trusted customersārather than so-called ājunk bonds.ā
āI can use my own funds or I can use regular bank borrowings, so I can build at the prime rate,āĀ Trump said, according toĀ transcripts obtained by theĀ Post. āI mean, the banks call me all the time. āCan we loan you money? Can we do this? Can we do that?ā”
Trump continued with a line that could be straight out of one of his campaign speeches: āI get it done, and everybody is happy, and it turns out successfully.ā
But he did not get it done, andĀ everybody was not happy. WhileĀ theĀ regulators approved Trumpās casino license,Ā the promised prime-rate loans never materialized, and Trump turned to the very junk bonds he had disparaged.Ā āHe agreed to pay the bond lenders 14 percent interest, roughly 50 percent more than he projected, to raise $675 million. It was the biggest gamble of his career,āĀ PostĀ reporter Robert OāHarrow Jr. wrote.
It was a gamble that failed: The Taj Mahal project ultimately filed for bankruptcy, screwing workers out of millions in retirement savings in the process.
The new reporting adds a new detail to exhaustiveĀ reporting by my colleague David Corn before the 2016 election, in which he details Trump’s known connections to mob associates and organized crime:
For years during his business career, Trump worked or associated with proven or alleged mobsters. (TrumpāsĀ longtime lawyer, the thuggish and deceased Roy Cohn, repped numerous Mafia bosses, some of whom were connected to Trump projects.) Yet when asked about his links to the mob, Trump has repeatedly made false comments and has contradicted himselfāto such a degree it seems he has flat-out lied about these relationships, even when he was under oath.
In a follow-up article,Ā The Australian reports that Trump began airing doubts about the Sydney casino deal around the time the damning police report was finalized, abruptlyĀ canceling a trip to Australia.Ā āI donāt know whether my enthusiasm level can be very great for that particular job,” he said at the time, bemoaning the long flight from America. “Itās just a long, long trip away. I believe [in]Ā very hands-on management.āā