Trump Organization Partner In India Accused Of ‘Large-Scale Fraud’: Report
According to court documents obtained by The Washington Post, the Trump Organization’s real estate partner in India is being accused of engaging in “large-scale fraud.”
Citing a criminal complaint filed by two global investment companies, The Post reports that the company, IREO, was “illegally siphoning off” at least $147 million of investor money and allege the number could actually approach $200 million.
The real estate investment company had been working with the Trump Organization on a project in India, according to the Post.
The two companies that filed the complaint against IREO include the Children’s Investment Fund Foundation and Axon Partners. The two companies invested about $300 million in IREO, according to the report.
Donald Trump Jr. has, in the past, praised IREO as “truly a fantastic group.” IREO’s managing director, Lalit Goyal said in an interview with the Post in 2017 that IREO thought Trump would be “the ideal partner.”
The Trump Organization and IREO had first discussed working together on a commercial real estate tower around 2013, according to the Post, but that deal didn’t end up happening.
In 2016, the two groups signed a licensing agreement regarding a luxury office building.
Goyal offered praise for Trump Jr., saying he was “very focused on what the commercial building should be.”
Trump Jr. took a trip to India last month to promote Trump-branded developments in a number of Indian cities. The visit drew some scrutiny after buyers of certain apartments were offered “a conversation and dinner” with Trump Jr. for a fee of $38,000.
Goyal wrote in a March 13 letter to the company’s investors that “as far as the allegation of fraud, diversion and misappropriation of fraud is concerned, that is false, baseless and devoid of any merit.”
In the letter, he also called the legal proceedings a “needless and unwarranted distraction,” adding that they would result in “significant damage and harm to IREO.”
A spokesman for the Trump Organization did not respond to a request for comment regarding the complaint.