Donald Trump Reaches Deal To Keep Name On Taj Mahal
Posted on: March 9, 2015, 12:45h.
Last updated on: March 9, 2015, 12:45h.
The Trump Taj Mahal will still be known by that name for the foreseeable future, ending an effort by Donald Trump to take his name off of the beleaguered resort.
Trump and investor Carl Icahn reached an agreement that will see the Trump name stay on the casino, despite previous signs from the Trump family that they wanted nothing to do with the resort or Atlantic City.
“I am happy to have reached a deal with Carl, someone who I have great respect for both personally and professionally,” Trump said in a statement. “The Trump Taj Mahal, under the right leadership and with the proposed significant reinvestment in the property, can be, once again, a wonderful place for travel and entertainment.”
Trump Fought to Have Name Removed
The agreement comes after an ongoing legal battle over whether the Trump family could sue to have their name removed from the resort. Last month, a federal judge agreed that they could move forward with their lawsuit; last week, the casino filed an appeal of that decision. Trump, along with his daughter Ivanka, has already been successful in removing his name from the former Trump Plaza, which is now closed.
Trump Entertainment Resorts, which operates the casino, argued in a court filing that the Trump name was too “iconic” to lose, calling the name “an invaluable asset.” Donald Trump no longer runs Trump Entertainment Resorts, though he does hold a 10 percent stake in the company.
Since his removal from the operation of the company, Trump has consistently made it clear that he is not associated with the casinos, and that he does not wish to be associated with Atlantic City.
The Trumps had argued that Trump Entertainment had allowed the two casinos that used the Trump name to fall into disrepair in recent years. This, they said, damaged their personal brand, leading to their desire to separate the family name from the casinos.
Like so many other aspects of the ongoing saga at the Trump Taj Mahal, the deal will have to be approved by a federal bankruptcy court judge. The Trump Taj Mahal is also embroiled in a dispute with union workers, which are now headed to an appeals court. That legal battle hinges on the Trump Taj Mahal’s decision to break agreements with the United Here Local 54 union, which a bankruptcy court approved. The union says that the bankruptcy court lacked the jurisdiction to make that decision.
Trump Taj Mahal fined $10 Million for Violating Bank Secrecy Act
The agreement comes just days after the Trump Taj Mahal was fined $10 million by the Financial Crimes Enforcement Network (FinCEN) for repeated violations of the Bank Secrecy Act (BSA). FinCEN had ordered the casino to make regular external audits to ensure its compliance with money laundering statutes, and the casino admitted to violating many of the requirements of the BSA.
“Trump Taj Mahal received many warnings about its deficiencies,” FinCEN Director Jennifer Shasky Calvery said. “Like all casinos in this country, Trump Taj Mahal has a duty to help protect our financial system from being exploited by criminals, terrorists, and other bad actors. Far from meeting these expectations, poor compliance practices, over many years, left the casino and our financial system unacceptably exposed.”
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