Donald Trump's DC Hotel Makes Money From Foreign Governments, Suit Alleges

The Democratic attorneys general of Washington D.C. and the state of Maryland are suing President Donald Trump. They filed the lawsuit Monday claiming that by keeping his business entities, Trump is undermining public trust, creating an unfair business advantage which harms businesses around the capital and violating the constitution. Both D.C. and Maryland own and tax businesses and claim that in his capacity as President, Trump is steering potential customers towards his own businesses.

Federal officials are barred by the Constitution from taking gifts and emoluments or payments from foreign governments, but also from the federal and state governments, other than his salary. There is little case law in determining what constitutes as an emolument.

READ: Trump's Approval Rating Gets Closer To All-Time Low As Voter Disapproval Hits Historic High

Trump has had several events at the Trump International Hotel, which the lawsuit states promoted the business. The suit also points to a delegation from Saudi Arabia spending thousands of dollars at the hotel in January and February this year, and parking dating back to last year.

“An agent representing the Royal Embassy of the Kingdom of Saudi Arabia reported paying the hotel $190,272 for lodging, $78,204 for catering, and $1,568 for parking between Oct. 1, 2016 and March 31, 2017, using money received from Saudi Arabia,” the lawsuit states.

The lawsuit also quotes the Washington Post last year about how foreign officials would always choose Trump’s hotels over other area hotels.

“Diplomats and their agents have voiced their intent to stay at (or hold hotel events at) the Trump International Hotel. ‘Believe me, all the delegations will go there,’ one ‘Middle Eastern diplomat’ told the Washington Post about the hotel,” the lawsuit said. “ An ‘Asian diplomat’ agreed: ‘Why wouldn't I stay at his hotel blocks from the White House, so I can tell the new president, 'I love your new hotel' Isn't it rude to come to his city and say, 'I am staying at your competitor?’”

The lawsuit contends that even though Trump’s sons, Donald Trump Jr. and Eric Trump, lead the various Trump business entities, the President still benefits from the money made from foreign governments and is aware of which foreign officials stay at his hotel or other properties.

The lawsuit also claims that the Embassy of Kuwait was pressured by the president’s administration to move a Kuwait National Day celebration from a Four Seasons Hotel to Trump’s Hotel. According to the lawsuit, the event cost between $40,000 and $60,000.

Brian Frosh is the attorney general of Maryland and Karl Racine is the attorney general of Washington D.C. Frosh told the New York Times on Monday that if the lawsuit advances he would ask for Trump’s tax return in discovery.

READ: Trump Can Be Impeached If Robert Mueller Proves President Obstructed Justice, DOJ Says

The suit, filed in Maryland federal court, also points to Trump’s claim that payments that come in from foreign governments would be donated to the U.S. Treasury, but that the Trump organization said they aren’t tracking those payments.

Profits from Trump’s properties in New York, foreign hotels and golf courses and royalty payments from foreign versions of the show “The Apprentice” are listed as other payments that allegedly violate the Constitution. The majority state-owned Industrial and Commercial Bank of China is a tenant of Trump’s in New York. Bloomberg reported last year that the bank is the largest bank in the world in terms of how much money they lend out.