In July, Fred Trump is investigated by a Senate committee for profiteering, along with over 30 other real estate developers, using the Federal Housing Administration to acquire large sums of money.
Fred Trump and his partner received at least $3.5 million more from the FHA than the cost to build apartment complexes the money was intended for. During his testimony before the Senate committee, Trump tried to deny profiting from the extra $3.5 million since the Beach House Apartments bank account still held $4 million.
In the investigation, Trump and his attorneys admit that the FHA split $16 million between six different Trump-owned properties and that some or all of the funding was promised before any construction plans had been made for the properties. In other words, there was no expectation that the cost to build the apartment complexes would amount to $16 million.
Even though it’s decided that Fred Trump didn’t break any laws, the investigation results in him being blacklisted from the FHA the following year.
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