Trump's Emoluments Clause Violation: What's The Verdict?

The Emoluments Clause, embedded within the US Constitution, is designed to prevent federal officials from accepting gifts or benefits from foreign states. It stands as a testament to the Founding Fathers' foresight and commitment to protecting the integrity of American governance from foreign influence. Former President Donald Trump has faced several lawsuits and allegations claiming that he violated the Emoluments Clause by profiting from his business empire during his presidency. Trump's decision to retain ownership and control of his businesses while in office raised concerns about potential conflicts of interest and constitutional violations. The outcome of these lawsuits remains uncertain, with some cases being dismissed as moot now that Trump is no longer in office. However, the debate surrounding Trump's business dealings and their compliance with the Emoluments Clause has sparked ongoing legal and political discussions.

• More than 150 foreign government officials from 77 foreign governments patronized Trump properties.
• Foreign governments hosted or sponsored 13 events at Trump properties, each likely making five and six-figure payments. | | Legal consequences | The Supreme Court ended Trump emoluments lawsuits, stating that the cases are moot now that Trump is no longer in office. |

Trump's retention of his business empire

Donald Trump's business empire was a source of concern throughout his presidency, with critics arguing that his business interests created conflicts of interest. Despite this, Trump retained his financial stake in the work document, and his business portfolio expanded during his first term in office.

Trump's business interests include real estate, social media, cryptocurrency, golf courses, and various products such as Bibles, guitars, and cologne. He has marketed his name to numerous building projects and commercial products, with mixed success.

Trump's business ventures have included several unsuccessful endeavours, such as numerous casino and hotel bankruptcies, the folding of his New Jersey Generals football team, and the now-defunct Trump University. He has also been involved in over 4,000 legal actions related to his businesses.

In his first term, Trump promised to turn over his empire to his sons, not engage in new foreign deals, and donate his presidential salary back to taxpayers. However, critics argued that these restrictions were not enough to protect against conflicts of interest.

In his second term, Trump indicated that he planned to have a more involved role in his businesses. He declined to say that he would divest from his social media company and continued to promote new products, such as guitars.

Legal experts and ethics watchdogs warned that Trump's business dealings posed alarming conflicts of interest, as his appointees would be charged with regulating his businesses, and his dealings with foreign countries could impact deals sought by his company abroad.

The Foreign Emoluments Clause

The clause is designed to shield federal officeholders of the United States against "corrupting foreign influences". It is a negative clause, a restriction prohibiting the passage of legislation for a particular purpose. The word "emolument" has a broad meaning and is interpreted as "profit", "benefit", or "advantage".

The Department of Justice Office of Legal Counsel has opined that the language of the Emoluments Clause is "sweeping and unqualified". It prohibits those holding offices of profit or trust under the United States from accepting any gifts, emoluments, offices, or titles from foreign states without congressional consent.

The history of the Emoluments Clause dates back to the mid-17th century when the Dutch enacted a rule forbidding their foreign ministers from accepting gifts from foreign powers. This rule was motivated by a fear of corruption and went against customary international relations. The Articles of Confederation, America's first national constitution, included a similar provision, which was then carried over into the Constitution of 1787.

The modern Foreign Emoluments Clause has been interpreted to apply only to appointed officers, not elected officials. This interpretation has been a subject of debate, with some arguing that it should extend to all federal elected positions. However, the prevailing view is that it does not reach state positions.

The Domestic Emoluments Clause

The clause states that the President's compensation "shall neither be increased nor diminished during the Period for which he shall have been elected, and he shall not receive within that Period any other Emolument from the United States, or any of them." This provision reinforces the separation of powers by preventing Congress from influencing the President through control over their salary.

During the Constitutional Convention, Benjamin Franklin initially proposed that the President should receive no compensation at all. However, this motion was respectfully postponed, and the Convention eventually agreed to a fixed salary provision for the President. Later, Franklin and John Rutledge successfully moved to bar the President from receiving any additional emoluments from federal or state governments. Alexander Hamilton elaborated on the intent behind the Domestic Emoluments Clause, explaining that it was designed to isolate the President from potentially corrupting congressional influence.

Despite the importance of the Domestic Emoluments Clause, it has rarely been analysed or interpreted by courts. During the Trump administration, several litigants alleged that President Trump's retention of certain business and financial interests violated the Domestic Emoluments Clause. However, the Supreme Court ultimately found these cases moot without addressing their merits, as Trump was no longer in office by the time the cases reached the Court.

Trump's mitigation efforts

Donald Trump's decision to retain ownership and control of his business empire before his inauguration put him at odds with the Constitution's anti-corruption provisions, also known as the Emoluments Clauses. These clauses prohibit the president from receiving any profit, gain, or advantage from foreign or domestic governments. Trump's failure to divest from his businesses before assuming office created ongoing conflicts of interest and resulted in violations of both the Foreign and Domestic Emoluments Clauses.

Instead of divesting, Trump maintained his business dealings and took steps to keep his financial interests secret, such as refusing to release his tax returns. He also ignored the advice of career government ethics officials and the Director of the Office of Government Ethics, who recommended divesting from his business holdings while serving as president. Trump's actions normalised levels of corrupt and unethical behaviour that had not been seen in decades, if ever, in American politics.

Trump's failure to mitigate his violations of the Emoluments Clauses had far-reaching consequences. It undermined public faith in the integrity of government institutions and normalised corruption. It also posed serious threats to national security and foreign policy, as Trump's financial conflicts appeared to influence his administration's military decisions and favourable treatment of countries that subsidised his businesses.

In conclusion, Trump's mitigation efforts were largely non-existent, and his refusal to divest from his business interests while serving as president resulted in significant ethical, legal, and national security concerns.

Trump's business interests

Donald Trump's business interests are varied and far-reaching. They include hotels, condos, real-estate rentals, and licensing deals. Trump's main company, the Trump Organization, is a privately-owned conglomerate that serves as the holding company for all his ventures and investments.

Trump's businesses generated at least $446.3 million in sales in 2019, a figure that dropped by about 40% to $278 million in 2020.

Trump's net worth slipped to about $2.3 billion during his presidency, compared to about $3 billion before he took office. Forbes estimates his current wealth at $2.1 billion.

Hotels and Resorts

• Trump National Doral, a golf resort in Miami, Florida, which generated the most revenue of any of Trump's businesses in 2019, posting $77.2 million in sales.
• Trump International Hotel in Washington, D.C., housed in the Old Post Office building, a national landmark.
• Trump International Hotel and Tower in Las Vegas, a hotel and condominium complex.
• Trump Turnberry in Scotland, a golf resort with three courses and a hotel.
• Mar-a-Lago in Palm Beach, Florida, a private resort and club.

Golf Courses

Trump owns or manages 16 golf courses in the US, Scotland, Ireland, and the United Arab Emirates. Notable courses include:

• Trump International Golf Club in West Palm Beach, Florida.
• Trump National Doral Miami, an 800-acre resort with five golf courses.
• Trump Turnberry in Scotland, which Trump purchased in 2014.

Real Estate

Trump's real estate interests include residential and commercial properties, as well as licensing deals. Notable real estate ventures include:

• Trump Tower in Manhattan, New York City, a 58-story mixed-use tower that serves as the headquarters of the Trump Organization.
• Trump World Tower in Manhattan, New York City, which Forbes estimated to be worth $290 million in profits and unrealized appreciation.
• AXA Financial Center in Manhattan, New York City, and 555 California Street in San Francisco, in which Trump owns a 30% stake.
• Trump International Hotel and Tower in Chicago, Illinois, valued at $1.2 billion.
• Trump Towers in Istanbul, Turkey, a pair of conjoined towers that were welcomed by Turkish President Recep Tayyip Erdoğan in 2012.

Other Ventures

Trump's other business interests include:

• Trump Model Management, a modelling agency that Trump founded.
• Trump Entrepreneur Initiative (formerly Trump University), a for-profit business education company.
• Trump Media & Technology Group, a technology company that runs Trump's social media app, TRUTH Social.
• Trump Ice, a bottled water brand.
• Trump Steaks, a line of beef products sold exclusively by The Sharper Image and QVC.
• Trump Home, a home furnishings line.
• Trump Productions, a television production company.
• Trump Institute, a travelling lecture series.
• Trump Cards, a line of non-fungible tokens featuring Trump as a superhero, an Old West sheriff, and other figures.

Foreign Business Interests

Trump has business interests in numerous countries around the world, including:

• Argentina, where he has a history of business dealings with President Mauricio Macri.
• Azerbaijan, where the Trump Organization was involved in a controversial hotel development with ties to the Iranian Revolutionary Guard Corps.
• Canada, where Trump has licensing deals for hotels in Vancouver and Toronto.
• China, where Trump has numerous trademarks and where Chinese companies have invested in Trump properties.
• Dominican Republic, where Trump has a licensing deal for luxury villas.
• India, where Trump has licensing deals for several real estate projects, including Trump Tower Mumbai.
• Indonesia, where Trump has licensing deals for two luxury resorts.
• Ireland, where Trump owns the Doonbeg golf course and resort.
• Mexico, where Trump explored expanding his business empire but ultimately faced foreclosure and lawsuits.
• Philippines, where Trump has a licensing deal for Trump Tower Philippines in Manila.
• Qatar, where Qatar Airways had a corporate campus at Trump Tower in New York City.
• Russia, where Trump pursued several business deals over the years but ultimately did not complete any projects.
• Saudi Arabia, where Trump incorporated companies related to potential business expansion in Jeddah.
• Scotland, where Trump owns two golf courses, Trump Aberdeen and Trump Turnberry.
• St. Martin, where Trump owns a beachside estate, Château Des Palmiers.
• Turkey, where Trump has a licensing deal for Trump Towers Istanbul.
• United Arab Emirates, where Trump International Golf Club in Dubai opened in 2017.

Emoluments Clause Violations

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