3 Contractors Sue Trump’s DC Hotel for $5M in Unpaid Work
Susanne Posel (OC) : Donald Trump’s DC hotel is now drowning in $5 million of unpaid debt and the contractors that have yet to be paid for their work have filed a lawsuit against the president elect’s Trump Organization.
The Trump Organization spent an estimated $212 million renovating the Old Post Office into a 263 room hotel in DC.
This month a group of contractors filed a lien on the hotel in an attempt to recoup their costs for installing electricity, woodworking, heating and plumbing for the building.
Joseph J. Magnolia, Inc says they are owed $2.98 million, AES Electrical Inc is owed $2.075 million and A&D Construction of Virginia, LLC is owed $79,700.
According to the complaint, Magnolia said they “completed all plumbing, mechanical and HVAC work, along with site sewer, water, storm and water services” but were not paid for the work.
Richard Sissman, the attorney for A&D, explained that his client’s company is small and “needs the money it is owed” in order to continue to afford being in business.
Sissman said his client has “not heard from anyone” at the Trump Organization regarding this unpaid debt.
This DC hotel is one of the latest conflicts of interest Trump has to deal with before his Inauguration Day just 13 days away.
Stephen Schooner, professor of government procurement law at George Washington University Law School, and Daniel Gordon, senior adviser to that same program, maintain that because of a provision in Trump’s leasing of the Old Post Office building there is a serious problem waiting for the president elect.
Schooner and Gordon wrote in an op-ed piece that the General Services Administration (GSA) explicitly states: “No … elected official of the Government of the United States … shall be admitted to any share or part of this Lease, or to any benefit that may arise therefrom…”
The only resolution to this problem is for the GSA to “end its lease arrangement with the president elect… now.”
Furthering this conflict is the fact that the Trump Organization has pressured foreign diplomats to stay there when in town conducting official business.
For example, Kuwaiti nationals suddenly moved their National Day celebration from the Four Seasons to the new Trump International Hotel in DC after they were “encouraged” to do so by “members of the Trump Organization” who contacted “the Ambassador of Kuwait” and asked him to “move his event to Trump’s DC hotel.”
In an effort to stop Trump’s mounting conflicts of interest from affecting the US government’s ability to function, Senator Elizabeth Warren will introduce a bill this year invoking the emoluments clause of the US Constitution in order to force Trump to “disclose and divest” any and all of his potential conflicts of interest.
Susanne Posel, Occupy Corporatism