Since it might be salient to the FBI's current investigation of Donald Trump and his close associates ties with Russia and with related Russia associates, with this FBI investigation probably later expanding to ties with other bad actors around the world including even with bad actors in the US, let me copy below here a very key paragraph contained in this Taj Mahal Wikipedia:
"In February 2015, the U.S. Department of the Treasury's Financial Crimes Enforcement Network settled an investigation of Trump Taj Mahal with the assessment of a $10 million civil fine for "significant and long-standing money laundering violations" which were described as "willful and repeated" contraventions of the record-keeping and reporting requirements of the Bank Secrecy Act. The casino agreed to periodic external audits to comply with anti-money laundering statutes, and admitted to multiple violations as part of its settlement. The U.S. Treasury made note of casino violations dating back to 1998, when Trump Taj Mahal paid a $477,700 fine for violating currency transaction requirements, as well as violations in 2003, 2010, and in 2012, for which the company was "repeatedly warned". Trump Taj Mahal was "far from meeting" standards required to protect the U.S. financial system "from exploitation from criminals, terrorists, and other bad actors", the Treasury said in a press release."
When you click on 37, 38 and 39 in the Reference Section at the bottom of the Trump Taj Mahal Wikipedia, you should be able to view the actual original documents cited in their entirety. They are very interesting reading.
I can't think of an easier way to launder money than through a huge casino.
Now let me quantify some of the key amounts related to Taj Mahal Holding Corp's March 27, 1996 SEC filing related to its Annual Report 10-K for 1995.
When you search the US SEC's Website, and enter "Taj Mahal" as the Company Name, you will get as the third option Taj Mahal's Annual Report 10-K for 1995. Below here's the link:
Or here's the direct link for Taj Mahal's 10-K:
Or just copy these links in your browser and you should be able to also view them.
There's a lot of interesting information in Taj Mahal's 1995 10-K. Let me address just a couple items included there.
Under Item 6: Selected Financial Data on Page 21, it shows five years of Annual Net Revenues resulting in a very strong Annual Net Revenue Growth of Trump Taj Mahal Associates and Trump Taj Mahal Funding Combined Financial Statements:
Also Under Item 6: Selected Financial Data on Page 21, it shows substantial continuing Annual Losses Before Extraordinary Item in each of the past five years:
Bottom Line Net Losses were the same as above except for 1991, which also had a massive $259.6 Gain on the Taj Restructuring, resulting in a Bottom Line Net Income of $188.5 Mil in 1991. Whoa, what's going on here?
Well, you must then go to the "1991 Taj Restructuring" back on Page 1 and it states:
"From April 2, 1990 when the Taj Mahal opened, through October 4, 1991, cash generated from Taj Associates' operations was insufficient to cover its fixed charges. As a result, on July 16, 1991, Taj Associates and two affiliated entities (collectively, "the Debtors") filed a petition for reorganization pursuant to a prepackaged plan of reorganization under chapter 11 of title 11 of the United States Code."
Yeah, a substantial amount of Taj's Debt was eliminated from the books by Taj filing bankruptcy,
thus the resultant Economic Gain of $259.6 Mil, which was also reflected in
Taj's Bottom Line Net Income in 1991.
Man, I bet there are a lot of people with Student Education Loan Debt who wish
they could get one of these 1991 Taj Restructurings with the resultant loan forgiveness.
Anyway, the Losses in 1992 through 1995 are substantially lower than that in 1991
due to the 1991 bankruptcy filing and resultant huge drop in interest expense related
to the huge drop in Total Interest-Bearing Debt.
So, how could Taj's Annual Revenues be so strong and increasing so much every year but its Bottom Line Net Losses continue to be so large even after the massive 1991 Debt elimination?
It's all about Haj's being so incredibly highly leveraged with so much very high interest rate debt.
Its 10-K disclosed Taj's Total Interest Expense for the three most recent years as follows:
And just who was Taj Mahal's external CPA firm auditing their financial statements?
No other than Arthur Andersen, which also audited Enron and World Com and then imploded.