General Discussion

The owners of a 70-story Panama City hotel tower formerly managed by President Donald Trump’s companies are accusing them of stiffing the Panamanian government.

In a legal filing Monday in an ongoing lawsuit in Manhattan federal court, private equity manager Orestes Fintiklis and the company he leads, Ithaca Capital Partners, claimed that two Trump companies failed to pay Panamanian taxes equal to 12.5% of the management fees they drew from the hotel.

The Trump entities were allegedly supposed to withhold those fees in advance and pay them to the government regardless of whether the property was profitable or not. Instead, the Trump companies simply kept the money, the suit claims, “thus intentionally evading taxes.” That and other financial irregularities exposed Fintiklis and the companies he represents “to millions of dollars in liability,” according to the suit, which also claims Trump companies sought to cover up their actions. The filing does not say whether a tax penalty has been levied by Panamanian authorities.......

Trump’s company tried unsuccessfully to convince Panamanian President Juan Carlos Varela to intervene on Trump’s behalf. When Fintiklis’ group eventually took control, it found walls had been hastily built to obstruct access to certain areas — one was in the middle of a hallway, another in front of an elevator bank — including inner offices. Trump employees also shredded hotel documents, Fintiklis’ group alleged.