HOW A TRUMP COMPANY VIOLATED THE EMBARGO ON CUBA

New York      Cesar Chelala

On October 19, 1960, the U.S. government imposed a commercial, economic, and financial embargo on Cuba, except for food and medicines. The measure was taken after Cuba nationalized American owned oil refineries without compensation. On February 7, 1962, the embargo was expanded to include almost all exports. The embargo is still in effect and is the longest trade embargo in modern history. Donald Trump knowingly broke the embargo.

The details of Trump’s violation are included in a Newsweek investigative report written by Kurt Eichenwald and titled, “How Donald Trump’s Company Violated the United States Embargo Against Cuba.” A company owned by Donald Trump carried out business in Cuba when Fidel Castro was president of that country, despite the U.S. trade ban that made such undertakings illegal.

In 1998, a Trump company spent over $68,000 for its activities in Cuba, despite the trade ban. According to Newsweek, the Trump company then called Trump Hotels and Casino Resorts did not spend the money directly. Instead, it used the services of an American consulting firm called Seven Arrows Investment and Development Corp.

Seven Arrows consultants traveled to Cuba apparently hoping to establish a foothold on the island when normal relations resumed between both countries and trade restrictions would be lifted. Trump representatives met with Cuban government officials and other business leaders to explore opportunities for the casino company.

A Trump former executive said that Donald Trump was aware of the trip and had participated in discussions over it. Seven Arrows instructed Trump officers how to make the trip appear legal by linking it to a charitable activity. At that time, Americans traveling to Cuba had to receive specific permission which was granted only in a few cases mostly related to humanitarian efforts.

According to the conditions of the embargo, neither an American company nor one based in the United States could spend any money in Cuba; a foreign charity or a similar organization needed to pay all expenses, including the trip to the island. Also, consultants needed to obtain a license from the federal Office of Foreign Assets Control (OFAC), says Newsweek.

However, according to a former Trump officer, who spoke on condition his name wouldn’t be revealed, says the company did not obtain a government license from that office. Without that license, the trip that was undertaken by Trump officers was in violation of federal law. If OFAC would have found out about this activity it could have made a referral to the Department of Justice.

With his usual nonchalance, during the launching of his presidential campaign in November 1999 at a luncheon hosted by the Cuban American National Foundation, Donald Trump declared that he wouldn’t spend any money in Cuba as long as Castro was in power.

For Trump, Cuba at the time offered him a significant opportunity. His company was struggling and, in 1998 alone, Trump Hotels had lost almost $40 million, according to the company’s records. In addition, its stock price had collapsed, going from $12 a share to just $2.75.

It is possible that these activities by the Trump company cannot now be investigated, due in part to the fact that the statute of limitations has already ran out. They show once again, however, that Mr. Trump is always ready to play tricks with the law, if they can be of economic benefit to him.

Dr. Cesar Chelala is a New York writer.