The District of Columbia et al v. Trump

Filing 1

COMPLAINT against Donald J. Trump (Filing fee $ 400 receipt number 84637030093), filed by The District of Columbia, The State of Maryland. (Attachments: # 1 Proposed Summons, # 2 Civil Cover Sheet)(kns, Deputy Clerk)

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 1 of 48

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IN THE UNITED STATES DISTRICT COUR?JI,A . 1(;;;':.,
FOR THE DISTRICT OF MARYLAND
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Greenbelt Division
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THE DISTRICT OF COLUl\IBlA
441 Fourth Street, l\.W.
Washington, D.C. 2000 I,

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and

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THE STATE OF MARYLAND
200 Saint Paul Place, 20th ]-loor
Baltimore, :-'lar:-1and 21202,
Civil Action No.

Plaintiffs,

/ t;. - eV~{)/59& - !JI1

v.
DONALD J. TRUl\IP, in his official capacity
as President of the United States of America
1600 Pennsyl\'ania Avenue, K\\'.
Washington, D.C. 20500,
Defendant.

COMPLAINT
BRIA:-: E. FROSH
Attorney General of :-'laryland
STE\'E:-:

:-'1. SULLlVA:-:

Federal Bar No. 24930
[e-mail]
PATRICK B. HCGHES
Federal Bar No. 19492
ph [e-mail]
Assistant Attorneys General
200 Saint Paul Place, 20th Floor
Baltimore, l\laryland 21202
T: [phone]
10: [phone]

KARL A. RAcr:-:E'
Attorney General for the District of Columbia

O. LUDA\I'AY
Chief Deputy Attorney General
Federal Bar No. 12533
na talie.! [e-mail]
STEI'HA:-:IE E. Lrros'
Senior Counsel to the Attorney General
stephanie.1 [e-mail]
441 Fourth Street, N,W.
Washington, D.C. 20001
T: [phone]
10: [phone]
NATALIE

'jno hac vice ap/Jlicalionjorlhcomillg

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 2 of 48

1\.OAII D. BOOKIlI:\DER*

[e-mail]
STUART C. ~ICPHAIL*

[e-mail]
Citizens for Responsibility and
Ethics in Washington
455 ~lassachllsetts ,\\oclllle, 1\'.\\'., 6th
\\'ashinb'lon, D.C. 20001
'1': [phone]
F: [phone]

*llfO hac "ire allplication forthcoming

1'1001'

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 3 of 48

TABLE OF CONTENTS
I. Nature of the action
II. Panics, jurisdiction,

1
and \'enue

III. I,egal background
IV. Reb'ant

7
8

facts

10

A.

The defendant's

Foreign Emoluments Clause \;olations

10

B.

The defendant's

Domestic Emoluments Clause \;olations

24

C.

Post-inauguration

D.

The plaintiff>' interests in this litigation

premium for the defendant's goods and sen;ces

30
30

V. Claims

41

VI. Prayer for relief

44

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 4 of 48

I.
NATURE OF THE ACTION
This is an action against Donald j. Trump in his official capacity as President of

I.

the United States. The case invokes
that have injured and threaten

unprecedented

to cause continuing

Disuict") and the State of 1\Iaryland (":\Iaryland")

constitutional

\iolations

by the President

i'1jury to the Disuict of Columbia

("the

and their respective residents, including direct

injury to the plaintifls' interests in properties located in the District, in Prince George's County,
:\Iaryland, and in :\Iontgomery
2.

County, :\Iaryland.

The lawsuit alleges \'iolations by the President of two distinct yet related prO\isions

of the U.S. Constitution

that seek to make certain that he faithfully serves the American people,

free from compromising

financial entanglements

with foreign and domestic governments

officials. The first prO\ision, the Foreign Emoluments

Clause, prohibits any "Person holding any

Ollice of Profit or Trust" from accepting "any present, Emolument,

Olfice, or Title, of any kind

whatever, from any King, Prince, or forcign State," absent "the Consent of the Congress."
Const. art. I,

S

9, cl. 8. The sccond, the Domestic Emoluments

\\ithin that Period any other

from the United States, or any of them." U.S. Const. art. II,

these prO\isions help ensure that the President selyes with undivided

Vested by the Constitution

with extraordinary

S

I, d. 7. Together,

loyalty to the American

people, and the American people only. Our republican form of government
3.

demands no less.

powcr, the President is bound by

oath to "faithfully execute" his oflice and "preserve, protect and defend the Constitution
United States." Since 1789, each Presidcnt, regardless of temperament
in his own way, to honor that
is the Constitution's

demand

solen111 YOW.

U.S.

Clause, entitles the President to

receive a salary while in office and forbids him fi'OIn "receiv[ing]
Emolument

and

of the

or ideology, has sought,

'Yet fundamental to a President's fidelity to that oath

that the President,

as the highest

officeholder

in tl,e land,

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 5 of 48

disentangle his pri,.ate finances from those of domestic and foreign powers. Ne,'er before has a
President acted with snch disregard for this constitutional
4.

Trump~s continued

President

ownership

prescription.
interest

in a global

business

clnplfc,

which renders him deeply enmeshed with a legion of foreign and domestic go\"(~rnment actors,
,'iolates the Constitution

and calls into question the rule of law and the integrity of the conntry's

political system. "'hate,'er

the sincerity of the persons iJ1\'oh-ed, foreign and domestic oflicials arc

put in the position of considering
President is important

whether

to maintaining

the President's decision-making

oficling henefits to businesscs associated

with the

goodwill. And irrespective of whcther such benefits affect

or shift his loreign or domestic policy, uncertainty

about whether

the President is acting in the best interests of the American people, or rather for his own ends or
personal

enrichment,

inOicts lasting harm on OlIr denlocTacy.

The Framers of the Constitution

foresaw that possibility, and acted to prevent that harm .
..).

The

Erllolulllcnts

Clauses

arc

two

critical,

closely

related

anti-corruption

prO\isions aimed at ensuring that the President faithfully serves lite jleojl/e, free from the distorting
or compromising
indi,idual

by foreign nations,

their leaders,

states in the Union, Congress, or other parts of the federal government.

They ensure

that Atncricans

effects of financial inducements

prO\ided

do not ha\"e to guess whether a President who orders their

SOilS

and daughters

to

die in foreign lands acts out of concern for his pt;\"atc business interests; they do not ha\"e to
wonder if they lost their job due to trade negotiations in which the President has a personal stake;
and they never have to question whether the President can sit across the bargaining
foreign leaders and faithfully represent the world's most powerful democracy,

table from

unencumbered

by

fear of harming his own cOlnpanies.
6.
entanglements

"'ith

respect to the Foreign Emoluments

between

American

Clause, the Framers were aware that

oflicials and foreign powers could pose a creeping, insidious

2

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 6 of 48

threat to the Repuhlic. The theory underlying the clause, informed by English history and by the
Framers' experience, is that a /Cderal officeholder who recei,'es something of\'alue from a foreign
government

can be imperceptibly

induced

to compromise

what the Constitution

insists be his

only loyalty: the best interest of the United States of America. And rather than address such
corruption

by punishing

it after the filct, the Framers concluded

\\'lite a strict prophylactic
incenti,'es
Trump's

rule into the Constitution

ne\'er undo this important

safeguard

that the best solution was to

itself, thereby guaranteeing

of American

autonomy.

that improper

Applied to President

di\'erse dealings, the text and purpose of the clause speak as one: absent the consent of

Congress,

pri,'ate

enrichment

through

the receipt of benefits

li'om foreign go\'ernments

is

prohibited.'
7.

The Domestic Emoluments

from corruption.

The Founders intended the elause to sen'e as a guarantee

parts of the federal go\'ernment,
operating

Clause was also designed to protect the go\'ernment

on his necessities,

that Con" ..•. other
ess,

and the states "can neither weaken [the President's] fortitude by

nor corrupt his integlity

by appealing to his a\'al;ce."2 The Framers

further intended the elause to protect against self-dealing by ensuring that the President's sen'ice
is "remunerated only

8.
Emoluments

by the compensation

Relatedly,

fixed in advance

and' in ways particularly

by Congress.

important

to the plaintiffs, the Domestic

Clause shields the states and the District of Columbia

from undue pressure

to

,,"orman L. Eisen, Richard Painter & Laurence H. Tribe, The Emoluments Clause: Its
Text, Meaning. and Application to Donald]. Tmmp (Dec. 16, 2016), http://brook.gsl2hGI~lbW;
see
also Applieabiliry of Emoluments Clause to Emplopnent of GO\'ernment Employees by Foreign
Public Universities, 18 Op. O.L.C. 13, 18 (1994) ("Those who hold offices under the United
States must gi\'e the go\'ernment their unclouded judgment and their uncompromised loyalty.
That judgment might be biased, and that loyalty di,'ided, if they received financial benefits from
a foreign go\'ernmenl. ").
The Federalist No. 73 (Alexander Hamilton).

3

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 7 of 48

prm;de emoluments to the President, and protects them from reprisal for any refusal to do so. In
a similar vein, the prm'ision safeguards the states and the District li'OJllunfair acl\'antages certain
slates may er~oy fi'om opportunities

to curry favor (i'om the President

by pro\iding emoluments

that other states lack.
9.

President Trump,

both the Foreign Emoluments

acting through compames he owns or controls, has \;olated
Clause and tbe Domestic Emoluments

millions of dollars in pa)l11ents, benefits, and other valuable
gm'ernments

and persons

gmTrnments.

consideration

His reJleated, ongoing \'iolations include remuneration

from foreign

acting on their behalf, as well as. federal agencies and state

Trump properties held by foreign-government-owned
condominiums

Clause by reeel\1ng

derived from: (a) leases of

entities; (b) purchase and ownership of

in Trump properties hy foreign governments or foreign-government-controlled

entities; (c) other property interests or business dealings tied to foreign governments; (d) hotel
accommodations,

restaurant purchases, the use of

sen'ices and goods by foreign governments
domestic and international

properties

\'ClllIe'S

for

C\'ellts,

and purchases of other

and diplomats at hotels, restaurants,

owned, operated.

and other

or licensed by President Trump;

(c) continuation of the General Sen'iees Administration lease for President Trump's \Vashington,
D.C. hotel despite his hreaeh of the lease's terms, and potential prm;sion of federal tax credits in
connection
broadcasters

with

the same

property;

related to rebroadcasts

and

(D

payments

from forcign.governmcnt-owned

and foreigtl versions of the tele\'ision program

"The

Apprentice" and its spinoffs. ~Ioreover, President Trump, by asserting that he ,,;11 maintain the
interests at issue, is poised to engage in sinlilar constitutional

violations for the duration of his

presidency.

10.

These present and continuing

violations of the Constitution!s anti-corruption

protections threaten the free and independent self-govemanee at the core of our democracy. The
4

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 8 of 48

President is making decisions eyery day with profound and far-reaching
from determining
abandon

effeets on Amelican

life,

who can trayel into the country to deciding whether the United States "ill

global efforts to combat

climate change; from proposing

budgets to oyerseeing

the

federal workforce; from eyaluating who "ill pay more in taxes to choosing how people will access
health carc. Yet Americans are left uncertain as to whether these decisions, \\ith their sweeping
impact on foreign and domestic poliey, arc driycn solely by unyielding loyalty to the conntry's
best interests. or rather are affected by sclf:intercsted

111oti\"ations

grounded in the international

and dmnestic business dealings in which President Tnlmp's personal fortune is at stake.
II.

The President's

\iolations

of the Emoluments

American people are entitled to haw in their goyernmenl.
goyernance

Clauses undermine

It is fundamental

that our dnly cleeted Presidents and the goycrnments

the trust the

to our system of self-

oyer which they preside will

always act in singular pursuit of our liberty, security, health, and well-being. President Trump's
mytiad international and domestic business entanglements

make him yulncrablc to corrupt

influence and depriye the Ameriean people of trust in their chief executiye's undiyided loyalty.
12.

The District and Maryland haye compelling interests in ensuring that the Foreign

and Dornestic Emoluments Clauses arc enforced and protect their residents as designed. The
President's disregard for these constitutional constraints has resulted in significant and ongoing
harm to the District and to l\laryland.
13.

The District and Maryland have other sovereign, quasi-sovereign,

interests in preventing the defendant's
organization,

\iolations

of the Emoluments

and proprietary

Clauses. The defendant,

his

and its afliliates have received presents or emoluments

froIll foreign states

and federal agencies, and state and local governments

in the form of payments

instrumentalities
to the defendant's

hotels, restaurants,

as President to boost this patronage

and other properties. The defendant
of his enterprises,
5

Of

has used his position

and foreign diplomats and other public

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 9 of 48

ollicials have made clear that the defendant's

position as President increases the likelihood that

they will frequent his properties and businesses,
1+,

The defendant's

ongoing constitutional

so\'Creign interests of the District and l\lal)'land,

violations haml the sovereign and quasi-

l\1al),land has an interest in presen;ng

its role as

a separate soycreign and securing obseryance of the tenns under which it participates in the
federal system, That

interest

is harmed

Clauses, but it carries particular

by the defendant's

\;olations

of both Emoluments

foree with respect to the Domestie Emoluments

exists (at least in part) for the protection

Clause, which

of "the United States and any of them," Indeed, as

go\.crnment entities with authmity to tax and regulate businesses and real estate, the Disuicl and
l\laryland

arc harmed

by percei\'ed

defendant

and his extensive alliliated enterprises,

other states and go\'ernments
the Distrin

and l\laryland

and/or

haw an interest in protecting

local competitors,

resulting from economic

and commercial

arc i~ured

15,

revenue that
Thc

OO\'\'S

defendant's

by decreased

\;olations,

\;s-a-\ls

In addition,

and their residents,

business, wages, and tips

to the defendant

l\[aryland

to the

and his business

is itself further injured by the

from those violations.

ongoing

interests of the Distl;et and l\lal).land,
their capacity as propl;etors

their eeonomies

acti\'ily diverted

enterprises due to his ongoing constitutional
lax

or else be placed at a disadvantage

that have granted or will grant such special treatment.

who, as the defendant's

reduction in

actual pressure to grant special treatment

constitutional

\lolations

The District and l\laryland

also harm

the propl;etary

suffer direct financial harm in

of businesses that compete with the defendant's

businesses, to the

extent that businesses owned by hinl and/or his affiliated enterprises attract customers and divert
them away from businesses that the District and Maryland own, license, or tax,
16,
Trump's

The

District of Columbia

\lolations of the Emoluments

and l\laryland

bring this action

to stop President

Clauses, As a direct result of those \;olations,
6

the Distl;ct

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 10 of 48

and l\laryland
To pre,'ent

ha,'e been i'tiured and will continuc to bc injured absent relief from this Court.
these injuries,

President Trump has ,;olated

they request

that this Court

enter a declaratory

the Foreign and Domestic Emoluments

judgment

that

Clauses and an injunction

against ,;olating thcse clauses further.
II.

PARTIES, JURISDICTION,

AND VENUE

17.

The plaintifE arc the District of Columbia and the Stale of~laryland.

18.

The District of Columbia

sued, and is the local government
government.

is a municipal

corporation

for the ten;tory constituting

The District is represented

General for the District of Columbia.

by and through

empowered

the permanent

to sue and be

scat of the federal

its chief legal ollicer, the Attorney

The Attorney General has general charge and conduct of

all legal business of the District and all suits initiated by amI against the District and is responsible
for upholding the public interest.
19.

The State of ~Iaryland

State is represented

is a sovereign state of the United States of Amel;ea. The

by and through its chief legal oflicer, the Attorney General of l\lalyland.

has general charge, supen;sion,

and direction

He

of the State's legal business, and acts as legal

advisor and representative of all major agencies, boards, comnlissions, and official institutions of
state government.

The Attorney

General's

powers and duties include acting on behalf of the

State and the people of Mal)-Jand in the federal courts on matters of public concern.
20.

The defendant

is the President of the United States of America. He is being sued

in his ollicial capacity.
21.

This Court has subject-matter jurisdiction

22.

Venue is proper under 28 U.S.C. ~ 1391(e)(I) because the defendant is "an ollicer

... of the United States ...

under 28 U.s.C. ~~ 1331 and 220 I.

aCling in his ollicial capacity or under color of legal authoriry,"

7

and

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 11 of 48

the District of l\laryland

is a 'judicial

district" in which "a substantial

omIsSIons gI\lng nse to the claim occurred,"

part of the events or

and (in any e\Tnt) where one of "the plaintifl]s]

resides. "

III.

LEGAL BACKGROUND
23.

The Foreign Emoluments

Clause. The ori",;ns of the Foreign Emoluments

Clause go back to at least 1651, when the Dutch broke \\ith traditional

European

diplomatic

clistOlns

presents,

directly

and

prohibited

their

foreign

ministers

from

acccpting

indirectly, in any manner or way whatcycr."3 The Fnllncrs
thinking by those who drafted state constitutions,
crafted the Articles of Confederation,

including

which contained

"any

or

also had the benefit of earlier
Maryland's;'

and by those who

the clause's predecessor:

"[T\lor shall any

person holding any oflice of profit or trust under the United States, or any of them, accept of any
present, emolument, office, or title of any kind whatever,

from any king. prince,

or foreign

Statc."S

24.

The ForeigIl Emoluments

Clause was not included initially at the Constitutional

COI1\'cntion, but it was added without dissent at the request of Charles Pinckney, who "urged the

necessity of presening

foreign l\linisters & other oflicers of the U.S. independent

influence."'; EdmundJennings

3
5 John
Republic regulation).

Randolph

confirmed the clause's anti-corruption

Bassett l\Ioore, A DZges/ qf Ill/ema/ional UW

See Md. Declaration

S

of external

purpose, stating:

651 (1906) (quoting Dutch

of Rights of 1776, art. 32 ("That no person ought to hold, at

the same time, 1110re than one office of profit, nor ought any person, in public trust, to receive
any present from any foreign prince or state, or fi'om the United States, or any of them, ,\;thout

the approbation

of this State.").
of 1781, art. VI,

S

5

Articles of Confederation

,;

2 Farrand, 711e Records qf/he Federal Convention qf 1787, at 389.

8

I.

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 12 of 48

"It was thought proper, in order to exclude corruption
in office from recei\;ng

or holding

and foreign inOuence, to prohibit anyone

any emoluments

recognized the perils of foreign inOuence and corruption,

fi'om foreign

states,")

The

Framers

e\'en in situations subtler than quid Ilro

quo bribery, and they therefore created a hroad constitutional

prophylactic

rule applicable

to

anything of value gin~n by any foreign go\'ernment to anyone holding an "Omee of Profit or
Trust under the United States." including the President.
25,
properly

Consistent

interpreted

\\;th the intent of the Framers,

to coyer monetary

or nonmonetary

the Foreign Emoluments
transactions,

clause bars the receipt of both a "present" and an "Emolument,"
of value,

including

"ithout limitation

payments,

transactions

Clause is

Indeed, the text of the

which together cover anything
granting

special

treatment,

and

transactions

abo\'e marginal cost. The clause also explicitly bars the receipt of "any present [or]

Emolument

...

'if any kind Ilha/rver," emphasizing

the breadth

of conduct

co\'ered under the

prOVISIOn.

26.

The Foreign Emoluments

Clause covers not only transfers of anything of \'alue

fforTI a king, prince, or foreign state indi\idually, but also any transfer from instrumentalities

or

agents of a foreign state, This is in keeping with the considered

of

\;ew of the Department

Justice's Office of Legal Counsel, whose constitutional interpretations arc instructive, though not
controlling."
27.

The Domestic Emoluments

the system of patronage, influence,

Clause. The Framers also intended

and rent-extraction

gO\'CrIlors' ollices through a Domestic Emoluments
3 Farrand,

that predominated

to prevent

in the colonial

Clause apply;ng to just the President. The

The Records 'if/he Federal Convention 'if 1787, at 327.

B
Applicability of the Emoluments Clause and the Foreign Gifts and Decorations
Act to the President's Receipt of the Nobel Peace Prize, 33 01'. O.L.C. 8 (2009).

9

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 13 of 48

clause provides that the President's

"Compensation"

shall not be increased or decreased,

and

frol11 the United States, or any of them," during

that he may not receive any "other Emolument

bis term of onice. The clause tbus works to ensure tbat neitber states nor the federal gon,rnment
can '\,"eaken bis fortitude by operating on bis necessities, nor corrupt his integrity by appealing
to his a\'ance."9 And because the clause is specifically concerned \\;th the federal go,-enlmcnt as
well as the states, it docs not allow for Congress to consent to tbe President's receipt of additional
emoluments
would

beyond his salary. This ban on additional emoluments,

ensure

that the

President

illdejJtlldfll(f illtendedfor him

kr

would

ha\'c

"no

/)e(lU1ia~1'

Alexander Hamilton wrote,

inducement to renounce or desert Ihe

the Constillltioll."10 Furtber, as recognized by judicial aUlhOlities, the

ban "addressed the Framers' concern that the President sbould not ba\"C the ability to com'ert his
or her onice for profit."
28.
making

The Domestic Emoluments

sure that

the nation's

Clause relleets the Framers' particular concern about

powerful

chief executi\'e

remains

free from distorting

and

cOlTllpting influences that migbt hinder his ability to faitbfully execute his onice. The clause
accordingly

proscribes

their respecti\'c

emoluments

instrmnentalitics

not only Ii'om states and the federal government,

but also

and subdivisions.

IV.
RELEVANT FACTS
A.

The defendant's Foreign Emoluments

Clause violations

29.

Following

he continues

the defendant's

bundreds of businesses throughout
empire compliscs

inauguration,

to own and control

the world, including hotels and other properties.

a multitude of different

corporations,

9

The Federalist No. 73 (Alexander Hamilton).

III

Jd. (emphasis added).

10

His business

litnited-liability companies,

limited

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 14 of 48

partnerships, and other entities that he owns or controls~ in whole or in part~ operating in the
United Stales and at least 20 foreign counlJies."

His businesses arc loosely organized under an

umbrella

consisting of the Trump

d/h/a

known as the "Trump

The Trump

Organization

Organization,"

and The Trump Organization,

Organization

LLC

Inc., both of ".hicl, arc owned

solely hy him. But his interests also inclode scores of other entities not directly owned by either
Trump

Organization

controls.

12

emity but that he personally owns, OI\'I1Sthrough other entities, and/or

The defendant also has several licensing agreements

income. Through

these entities and agreements,

that prOlide continuing

110wsof

he personally benefits from husill(:Ss dealini,,"S,

and is (and "ill be) enriched by any business in which the entities he owns or controls engage
with foreign goycrnments, instrumentalities, and officials.
30.
managemem"

On January

I I, 20 17, the defendant

of the Trump

Organization

as well as a longtime company executive.

announced

a plan to tum "leadership

O\'er to his sons Eric Trump
13

and

and Donald Trump Jr.,

Btu the plan did not include relinquishing ownersili/, of

his busincsscs or establishing a blind tnlSt.
31.

The defendant

continues

to own-and

be well aware of the acti,ities

of-the

TrUlUp Organization and othcr corporations, limited-liability companies, limited partnerships,
and other entities in which he retains an ownership interest. Although he formed a trust to hold
his business assets, he may obtain distributions from his trust at any titTIc.
H

"
~Iarilyn Geewax & ~daria Hollenhorst,
Sorting It Out, NPR (Dec. 5, 2016), http://n.prl2g2xZDP.

Tmmp's

Businesses And Potential COilf/irls:

"
U.S. Office of Gov't Ethics, Donald J. Trump, 2016 Executive Branch Personnel
Public Financial Disclosure Report (l\1ay 16,2016), http://bil.ly/2gBUwIV.
Donald Tl1Imp's News COIiference:Full Tranmipl
http://nyti.ms/2jkFUPK.
13

14

Da,id

and Video, N.Y. Times Gan. I I, 20 17),

Kravitz & Al Shaw, Tmmp Law)'er Cor!fi17nsPresidmt Can Pull jl1olll)' From His

II

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 15 of 48

32.

The defendant's

initially indicated

son, Eric Trump (who is also an advisor to the defendant's

that he would not communicate

interests. E,;C Trump

has now ackuowledged,

the President on at least a quarterly basis.
33.

The defendant

\\;th

his father concerning

trust),

his business

however, that he will prm'ide business updates to

IS

has neither sought nor reeeived "Consent

of the Congress" with

respect to his receipt of presents or emoluments from foreign government officials. entities, or
instrUITICn tal itics.
The District of Columbia's Trump International Hotel
34.

The Trump

International

Hotel \\'ashington,

D.C. is located on Pennsyh'ania

A,'enue, N.\\'., just blocks from the White House. The defendant
through

VaI;OUS

35.
International

o\\ns and controls this hotel

entities.
The defendant,

through emities he o\\ns, receives payments made to the Trump

Hotel by guests \\ho stay in hotel rooms and patrons \\ho use the hotel wnues or

other goods or sen;ces ill the hotel.
36.

The restaurant

BLT Prime is located in the Trump

International

Hotel. The

defendant, through valious husiness entities, owns the restaurant, licenses the name from BLT
Prime, and pays BLT Prime to operate the restauranl.'"

3-I.

Since the election, the Trump

to the diplomatic community.

International

Hotel has specifically marketed itself

On one occasion, barely a \\eek after the election, it held an event

Bllsinesses 'l7Ienever He IVallls, ProPublica (Apr. 4, 2017), http://bil.ly/2010~IJC.
15
Jennifer Calfas, Eric Trump Sqys He'll Give Ihe Presidenl QyarlaiJ' VIdales 011 Bllsilless
Empire, Fortune (l\Iar. 24, 2017), hllp:/ /for.tn/2n2~IR.Xa;
Maggie Haberman & Glenn Thrush,
Tl1Imp Reaches Bf)'ond IVesl WillgJor COllnsel, N.Y. Times (Apr. 22, 2017), http://nyti.ms/2rsFqvk.
16
Jessica Sidman, How DOllald Tl1Im/, Losl His DC Restallrants, \\'ashingtonian
23,2016), http://bit.ly/2htYzq9.

12

(OCI.

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 16 of 48

where it pitched the hotel to about 100 foreign diplomats.';

The hotel also hired a "director of

diplomatic sales'! to facilitate business with foreign slates and their diplOinats and agents, Iming
the director away from a competing hotel in \\'ashington.'H

In addition, the defendant has repeatedly appeared at the hotel since his election,

38.

adding further media attention to the property and raising its public profile. Se\'eralligures
administration,
Administrator
39.
the Trump

including Treasury Secretary Steve l\lnuchin
Linda !\Ic:\Iahon,

in his

and Small Business Administration

have also lived or continue to live in the hotel.'"

Diplomats and their agems hm'e \'oiced their intem to stay at (or hold e\"ems at)
International

Eastern diplomat"

HOlel. "Believe me, all the delegations

will go there," one "l'\liddle

told the Washillgloll PO.lIabout the hOleP" An "Asian diplomat"

agreed: "\\'hy

wouldn't I stay at his hotel blocks from the \\'hile House, so I can tell the new presidem, 'I IO\-c
your new hotel!' Isn't it rude to come to his city and say. 'I am sta)ing at your
40.

c0I11petitor?""2\

These statements have become reality. The Embassy of Kuwait, a foreign state,

held its National
Upon information

Day celebration

at the Tmmp

International

H,;tel on Februal)'

22, 2017.22

and belief, Kuwait paid for the \'enue, food, and olher sen ices prO\ided in

,
"
jonathan O'Connell & Mary jordan,
Wash. Post (Nov. 18,2016), http://wapo.st/2qukIgh.
18

For foreign diplolllats, TnJlII/) hotel is place 10 be,

/d.

'9
julie Bykowicz, TnJlII/) Holel JIa)' be Political Capilal '!fthe o\'alioll'.I Ca/)ital, Associated
Press (:\Iar. 5, 2017), http://apne.ws/2n2Rxfs.
20

Id.

21

ld.

22
jonathan O'Connell, Kuwaiti Elllbm.!)' is latest 10 book T17IIIIpD.C. hole~ but alllbmsador
.I,!ys he Jell '110pressure', Wash. Post (Dec. 20, 2016), http://wapo.st/2p!\Itw21
; jackie Northam,
Kuwail Celebratioll AI T17I1II/) Hotel Raises COllflict '!f IlIleresl Questions, NPR (Feb. 25, 20 17),
http://n.pr/2IavPoB.

13

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 17 of 48

connection \\ith the celebration. The cost has been estimated at 540,000 to 560,000.23 Before the
election,

a "sa\"c the date" reservation

event had pre\iously

had been made with the Four Seasons

been held'"' According to one report, the Embassy of Kuwait mO\'ed the

,,,'ent nnder pressure from the Trump Organization

(though Knwait's ambassador

States denied being pressured).25 As a result, the Trump
entities hm"c rerci\"cd ol1e or more payments

41.

Bet\\'een January

International

from Kuwait after 12:01 pm onJanuary

23 and 26, 2017 and dtning February

Tmmp

Agents

of Justiee,

Arabia reported
parking

Hotel.

an agent representing

pa~ing the hotel $190,272

between

Arabia.:?G Some

In a Foreign

October

Upon information

Act report

filed with the
of Saudi

for lodging, $78,204 for catering, and 51,568 for
31. 2017, using money received

were made after the defendant's

fi'om Saudi

as President.27

inauguration

and belief, Saudi Arabia paid at least 5250 per night for each of the rooms it

rented through its agent between January

23 and 26, 2017,28 and paid the hotel for meals and

23
Julia Harte, Kuwail could /iI!J' u/)
Reuters (Feb, 27, 2017), hnp:/ /reuLrs/20FztKa.
2'

of

and parking at the

the Royal Embassy of the Kingdom

I, 2016 and j\lareh

of the payments

Registration

20, 2017.

2017, the Kingdom

of dollars on rooms, catering,

International

to the United

Hotel or its controlling

Saudi Arabia~ a foreign Slale, spent thousands

Department

hotel, where the

10

560,000 for jJar!)' al TrumjJ Hotel

ill

Washillglon,

Jackie Northam, I,uwail Celebration AI TrumjJ Holel Raises COllfliel of IlIleresl Qpesliolls.

25
.Judd Legum & Kira Lerner, Under /IO/itica/ /)re.<.I'ure,
hil1""il wncels mqjor a'enls al Four
Seasons, swilches 10 TnllnjJ's D. C. hOlel, ThinkProgress (Dec. 19, 2016), http://biLly/2rssRzj\1.
26
j\lSLGROUP
Americas Inc, d/b/a
Qor"is j\JSLGROUP,
Supplemental
Statement Pursuant to the Foreign Agents Registration Act of 1938, as amended, for six month
peliod ending 3/31/2017,
filed j\lay 31,2017, http://bit.lyl2rAQjgE;
Chuck Ross, Saudis SjJenl
S270K AI TrumjJ Holel III l.J)b~)'ing Cam/migll Againsl 9/11 Bill, Daily Caller (June 4, 2017),
http://bit.ly/2sSKB7F,

27
Byron Tau & Rebecca Ballhaus, TmmjJ Holel Received S270,000
From l.J)b~)'ing
Cam/Jail,ql Tied 10 Saudis, Wall Street Journal (June 6, 2017), http://on.\\'~j.coll1/2s42HH9.
28

Isaac

Arnsclorf,

Saudis fool

lab al TrumjJ hole!, POLITICO

14

(Feb, 9, 2017),

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 18 of 48

other sen ices pro,'ided
dinner

in connection

at the hotel on January

information

with the stay. Saudi Arabia paid for indi,iduals

23 and both breakfilst and dinner

on January

to ha,'e

24.29 Upon

and belief, at least one of the meals was prO\ided by BLT P,ime. Upon information

and belief, Saudi Arabia paid the hotel through its agent for similar expenses associated "ith a
"isit in mid-February.3o As a result, the Trump International

Hotel or its controlling entities ha,'e

receiw.d one or more payments from Saudi Arabia, through its agent, after 12:0 I pm onJanuary
20,2017.
42.
Representati,'e

On or about April 6, 2017, Kaha Imnadze,

the Ambassador

of Georgia to the United 1\'ations. stayed at the Trump

then tweeted his compliments about the hotel.31 Upon information

and Permanent

International

Hotel and

and belief, the goyernment

of

Georgia, a foreign state, paid the hotel for his room and other seniees prO\ided in connection
with his stay. As a result, the Trump International

Hotel or its controlling entities ha,'e recei,'eel

one or more payments from Geor[.,..;aafter 12:01 pm onJanuary
43.
International

On information

20,2017.

and belief, after 12:01 pm on January

20, 2017, the Trump

Hotel or its controlling entities ha,'e recei,'ed and "ill continue to recei,'e payments

from other foreign states, instrumentalities of foreign states, or foreign officials.
44.

OnJanuary

in which the Trump

20, 2017, Trump Old Post OfIice LLC, the entity leasing the building

International

Hotel is loeated and in which the defendant

has a beneficial

http://politi.co/2kZa6mS.
29
Operations Order from Jason E. Johns, President of 1\'MLB Veterans Ad,'ocacy
Group, to fly-In Veterans regarding the Justice Against Sponsors of Terrorism Act Oan. 23-26,
201 7), http://bit.ly /20iHdIp.

~~o

Ross, Saudis Sjlent S270K AI Trump Holel

31
Kaha
http://bit.lyl2oiF8Fd.

Imnadze

(@kahaimnadze),

15

/11

Lobb;'illg Campaign Against 9/11 Bill.

T"itter

(Apr.

6,

2017,

8:49

A;..1),

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 19 of 48

interest, amended

its governing agreement

to pro\'ide that, during the defendant's

presidency,

the company \l"ill not make any distributions of profits to any entity in \l"hich the defendant has a
beneficial

interest

and

will credit

these

undistributcd

profits

to an

unrccovered

capital

contribution

account held for the benefit of the designated entities that defendant controls. This

amendment

is immaterial

Clause. The defendant
LLC (the remaining
amounts

to \l"hether the defendant

has \'iolated

remains owner of approximately

77.5% of the Trump

from those amounts

45.

Emoluments

Old Post Office

shares arc owned by three of his children), and thereby benefits from any

deposited into the unrecO\'ered capital contribution

disttibution

the Foreign

Additionally,

once he is no longer in

by prO\iding

account.

He further may reeei\'e

office.

that the defendant's

contributions

Trump Old Post Ollice LLC for business purposes, the amendment

"ill be used by

increased the value of one of

his assets.

46.

Plior to taking omee, President Trump's

fi'om foreign gO\'erIunents would be donated
later admitted,
governments,

attorney promised that all profits earned

to the U.S. Treasury.

hO\l"e\'er, that it was not tracking all payments
and that

The Trump

Organization

that it received from foreign

it plans only to estituatc, rather than calculate, such paynlcnts.32

New York's Trump Tower
47.
Through

Trump

Tower

is a mixed-use skyscraper

on Fifth Avenue in New York City.

the use of various entities, the defendal1l owns and controls Trump Tower and, through

entities he owns, receives payments

Blade to Trump Tower by tenants.

Ari :\lelber, et aI., Trump Failing to Track Foreign Cash al His Holels, NBC Ke\l"s (:\lay
24,2017), http://nbcnews.to/2qWzv3x.
32

16

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 20 of 48

48.

One of the largest tenallls of Trump

Tower is the Industrial

Rank of China ("ICRC"), which is a Chinese majOlity-state-owned

elllerprise.'"

and Commercial
As such, ICBC is

an instrumentality of a foreign slate.
49.

After 12:01 pm onJanuary

received one or more paymcllls

20, 2017, Trump Tower or its com rolling entities have

from ICBC under its lease. Trump

To\\'er or its controlling

entities will eontinue to reeei\"C regular payments from ICBC under its lease agreement.
50.

The

defend am

has repeatedly

discussing his \ie\\'s of U.S.-China

referenced

ICRC's

Trump

Tower

lease

in

relations. DUling his presidential campaign in June 2015, for

instance, the defendam stated: "I 100'e China! The biggest bank in the world is from China. You
know where their United States headquaners

is located? In this building, in Trump Tower."3'

Similarly, in :\Iarch 2016, when asked about China's territorial claims in the South China Sea,
the defendant told the Washington Post, "I do deals with them all the time. The largest bank in the
world, 400 million customers, is a tcnant nfmine in New York, in 11anhattan."35
51.

The term ofICBC's

of the defendam's
occur while he is

52.

Trump Tower lease runs umil October 2019, before the end

term. As a result, any negotiations for a renewal or extension of the lease will
sCfying

as President.

36

Trump Grill is a restaurant located inside Trump Tower that the defendant owns

through various business entities. Upon information and belief, tenants of Trump Tower,
including ollicials of China and other countries, have dined at Trump

Grill as a result of their

33
Caleb Melby, et aI., 1l7/en Chinese Bank's Tn/lIlj' Lease Ends, Potential Corif/ict Begins,
Bloomberg (Nov. 28, 2016), https://bloom.bg/20Q07T4.
34

Id.

35

Id.

36

ld.

17

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 21 of 48

tenancy

111

the Tower and the foreign states themselvcs may host e,'ents there, Accordingly,

foreign states or their instmmentalities
The defendant

likely have paid or will pay for sen;ees

has and ,,;11 continue to receive payments

at Trump

GrilL

from "al;OUS foreign states through

Trump GrilL
New York's Trump World Tower
53,

Trump \\'orld Towcr is a skyscraper on United Nations Plaza in Kew York Cit~"

containing condominium
controls Trump

\\'orld

residents of the Trump

units, Through
Tower

the usc of various entities, the dcfendant manages and

and, through

\\' orld Towcr

entities he owns, receives payments

lor common

charges and handles

made by

rental transactions

in\'ohing condorninium units.
54,

In 200 I, the Kingdom

Trump \\'orld TowerY

of Saudi Arabia paid S4,5 million to purchase a floor of

The annual common charges for building amenities for the floor totaled

585,585 at the time, As of 2003, the most recent year for which information

is publicly available,

the Kingdom of Saudi Arabia paid monthly common charges of about S7,398-or

S88,781 per

year. The floor currently belongs to the Kingdom of Saudi Arabia for use by the Saudi :vlission
to the United Nations, which upon information and belief continues to pay

COlnmon

charges to

the defcndant,3"

Stephen R. Brown, Donald Tnanj' made millionsfrom Saudi Arabia, bul IrashesHilla,y
Clillioll for Saudi dOllaliolls 10 Clinloll Foulldalioll, N,Y, Daily News (Sept. 4, 2016),
http://nydn,us/2bNEAq2,
37

38

Id.

18

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 22 of 48

In 2015, the defendant said about Saudi Arabia: "I get along great \\ith all of

55.

them. They buy apartments from me." He further noted: "They spend 540 million, 550 million.
Am I supposed to dislike them' I like them very much. ":19
56.

The Kingdom of 5audi Arabia is a foreign state, and the Saudi :\Iission to the

United l'\ations is an instrumentality of a foreign state.
In

57.

2002,

the

Permanent

:\Iission

of India

to the

United

l\'ations,

an

instrumentality of a forei,,'!l state, paid 55.1 million to purchase two units in Trump World Tower
from the defendant."O As of 2003, the most recent year for which infortnation
'l\'ailable, the I\lission paid monthly common charges of approximately 53,63g-or

is publicly
543,670 per

year. The units continue to belong to the :\1ission, which upon information and belief continues
to pay common charges to the defcndant.

In 2009, the Permanent

58.
instrumentality
Towcr:"

:\Iission of Afghanistan

to the United l\'ations, an

of a foreign state, paid 54.235 million to purchase a unit in Tmmp

As of 2003. the most recent year for which information

World

is publiely a\'ailabJe, the

common monthly charges for the unit purchased by the :\Iission were approximately 52,090 per
month-or

525,085 per year. The unit continues

to belong to the :\lission, which upon

information and belief continues to pay common charges to the defendant.
59.

In 2004, the

Permanent

:\Iission

of Q'ltar

to the

United

l\'ations,

an

instrumentality of a foreign state, paid 51,995,000 to purchase a unit in Trump \Vorld To\\'er,

39

Id.

N".Y.C. Dep't of Finance, Office of the City Registrar, Condo. Unit Deed: 845
U.l\'. Ltd. P'ship To The Permanent !\Iission of India to the U.N. (Dec. 23, 2002),
http:// on.nyc.gov/2pb80bx.
"0

"'
!\lax Abelson, •. fj;hanistan B'9's $4.2 AI. Tmlll/' Condo (with 'Peacq,liness and Views'),
!
Observer (Sept. II, 2009), http://bit.!y 120Q74n3.

19

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 23 of 48

and in 2012, it paid 58.375 million to purchase two additional units in Trump World Tower. As
of 2003, the most recelll year for which information
charges

for the units purchased

is publicly a\'ailable, the common monthly

by tbe l\Iission were a total of approximately

month-or

567,920

information

and belief still pays common charges to the defendant.

60.

per year. The

The defendant,

units continue

through

to bclong

to the ~Iission,

55,660 per

entities he owns, recei\'es payments

whicb

upon

made to Trump

World Tower by tenants and owners of units in the building through their payment of common
charges and other fees. On information

and bclief, these payments

include management

and

other fees paid to the building's managcrnent company, an entity owned by the defendant.
61.
common

Trump
cha;ge

World Tower or its controlling

payments

from Saudi Arabia,

entities will continue

India,

Afghanistan,

to recei\'c regular

and Qatar,

and those

payments "ill flow to the defendant.
62.

The World Bar is a bar located in Trump World Tower.

63.

Tenants of the Trump \\'orld Tower, including oflicials from Saudi Arabia, India,

Afghanistan,

and Qatar ha\'e patronized (or will patronize) the World Bar. Further, foreign states

or agents or instrumentalities of these or other foreign states have hosted and will host events at
the \\'orld

Bar due to its location near the United Nations. By reason of his financial stake in

Trump \\'orld Tower, the defendant "ill either recei\'e pay,nents from foreign states made to the
World Bar, or the re\'enue that the World Bar recei,'es, including from foreign states, allccts the
amount of rent that the defendant is able to charge the \\'orld Bar.
Chinese trademarks
6+.

The defendant

name in connection
the Trademark

began to seek trademark

"ith building construction

Office, and he subsequently

protection

III

China for the usc of his

sef\ices in 2006. His application was rejected by
lost his appeals to the Trademark

20

Review and

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 24 of 48

Adjudication

Board, the Beijing Intermediate

People's Court, and the Beijing High People's

CourLI1 The defendant suflered his most recent court defeat in ~(ay 2015, the month before he
declared his candidacy for President.
65.

Three weeks after his election, on December 2, 20 I6, the defendant spoke directly

with Taiwanese

President Tsai Ing-wen.43 That conversation

suggested that the defendant

might end the "One China"

hruke longstanding

proweol and

policy that the United States had

observed for decades. The defendant further indicated before taking ollice that he might end the
One China policy unless some henefit were recei'Td in exchange.H
66.
Jinping

On February 9, 20 I 7, however, the defendant

and pledged to honor the One China policy."

spoke with Chinese President Xi

Fi,'e days later, on February

14,2017,

China re,'ersed its prior course and gave the defendant trademark protection.
67.

Chinese

Balnc orleaders

68.

law prohibits awarding

tradclnarks

of national, regional, or international

that arc "the same as or sitnilar

10

the

political organizations.'"'fl

Even though China had denied the defendant trademark protection for more than

ten years, including in a ruling from an appellate eourt, and despite Chinese law barring the use
of foreign leaders' names as tradCInarks, China reversed course and decided to grant the
defendant

the trademark

he had sought and valued. But China did so only after he had been

42
Erika Kinetz, Wilh Tmml"s will
Press (Feb. 14,2017), http://apne.ws/2mfcK9:\'.

ill

Chilla, will Tmmp loilels gel flushed? Associated

H
Jordan Fabian & ~eetzan Zimmerman,
leader, The Hill (Dec. 2, 2016), http://bit.!y/2prWnYu.

Tmml' makes hisloT)' wilh I,holle call 10 Taiwall

Jordan Fabian & Evelyn Rupert, Tmml' promises Chillese presidelll he'll hOllor 'olle Chilla'
policy, The Hill (Feb. 9, 2017), http://bit.ly/2pbgZUW;
Laurel Raymond & Judd Legum,
Tnllllf/s lrademark lesls Chinese law, Think Progress (Feb. 18, 20 I 7), http://bit.!y /2pXHZTZ.
H

Fabian & Rupert, T mmp promi<es Chillese presidelll he'll hOllor 'aile Chillo'llOliC)'.
46

Raymond & Legum, Tmml"s lrademark lesls Chillese law.

21

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 25 of 48

elected President, questioncd the One China policy, was sworn in, and then re-afJinned the One
China policy.
69.
Organization

The

trademarks

have

considerable

because

they

gl\"e the

Trump

the sole right to profit from the Trump brand in China. China's granting of these

trademarks constitutes a present or emolument
70,

\'alue

\\'hen

asked why the defendant

provided to the defendant.
changed his position on the One China policy,

and whether he had recei\'ed something in exchange from China, White House Press Secretary
Scan Spicer answered: ''The President always gets something,"

but did not elaborate."

International versions and distribution of "The Apprentice" and its spiiloffs
71.

The defendant

carns royalties and other payments from the distribution

countries of the tcle\;sion program
Apprentice"

"The Apprentice"

and "The New Celebrity Apprentice,"

and also from international

in other

and its spinons (including "Thc Celebrity
for which he is still an executive producer),

versions. of the programs

produced

in other eoumries.

In some

instances, these payments originate from foreign governments or their agents or instrumentalities.
For instance, the defendam is paid for a \'ersion of the program "The Apprentice"
United Kingdom.'.

The network that broadcasts

United Kingdom is an instrumemality
72.

"The Apprentice"

that airs in the

and spinoff shows in the

ofa foreign state.

After 12;01 pm onJanuary

20, 2017, the defendant has recei\"Cd and will continue

to rccch'e payments from foreign states via their payments for "The Apprentice"

or its spinofTs

47
l\!adcline Conway, Spicer on Trump's 'One China' agreement: 'The president always gets
something', POLITICO (Feb. 27, 2017), http://po1iti.co/2prZpfi.

'8
wladcline Berg, Here's How Milch Donald TrumjJ Will Aam From I~'odllring 'Celebrit)"
Apprentice', Forbes (Dec. 13, 2016), http://bit.ly/2p
YOS9h.

22

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 26 of 48

and international \'ersions. Such payments constitute presents or emoluments that the defendant
has accepted and will accept from a foreign state.
Other foreign connections, properties, and businesses
73.

U"ited Arab Emirates.

The defendant's

company is engaged in several real-

estate projects in the United Arab Emirates, including Dubai's Trump
\\'hich opened on February

18, 2017.''1 Upon infonnation

thereby possesses a financial interest in the Trump International

discretion

Golf Club,

and bclief, the defendant,

\.arious business entities, has a branding-and-managerncnt

i4.

International

through

contract \\;th the property, and
Golf Club.

All services for the golf club, including electricity, water, and roads, "come at the
of the government,"

and the "club's bar will need gm'ernment

approvals

to serve

alcohol, not to mention other regulatory issues.~'5(l
75.

The golf club and other projects cannot be built or operated

utility, and other senices and approvals. These discretionary
on the defendant,

apprm'als accordingly confer value

through his financial stake in the company recei\ ing them, in violation of the

Foreign Emoluments
76.

without pennits,

Clause.

Indonesia.

The defendant's company is engaged in at least two real-estate

projects in Indonesia, including redeveloping a resort in Bali.51 Upon information

and belief, the

19
Sudarsan Raghavan, Tmm!"s SOilSgel red earlJeI IrealmCIIIal Dubai golf club ol,ming,
Wash. Post (Feb. 18,2017), http;!/wapo.stl2pY20tL.

sn
Jon Gambrell,
2017), http://apne.ws/2jOgOVk

Golf Club Shows Pi!fall, qf His Presiden!)', Associated
.

Press (Jan. 3,

.\1
Ian Jarrett, Pan Pacific makes w'lyfor Tiump ill Bali, Travel Weekly (Feb. 17, 2017),
http://bit.ly/2nU3A1''JN;RichardC.Paddock&EticLipton,Tmmp's
!Ildollesia Prqjecls, Still
.IIoving Ahead, Crealf PolCIIlial COI!/lic/s, N.\'. Times (Dec. 31, 2016), http://nyti.ms/2kKSKLp;
Russ Choma, Tmmp's !Ildollesian Busilless Parlner Brags Aboul His Access, l\Iother Jones (Feb. 10,
20 17), http://hit.ly /2kttiql\'IC.

23

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 27 of 48

defendant, througll

business entities, has a licensing-and-Inanagement

"cUIOUS

agreement ,,'ith

these pn:>jects. through which he possesses a financial interest in them.
77.

Completing

the projects required or ",ill require permits and appro\'als from the

Indonesian go,'crnmcnt. The defendant \\ill receive \'aluc from these discretionary permits and
apprO\'als through his financial stake in the company recei\;ng them, in \;olation
Emoluments
73.

Clause.
Other.

businesses throughout

The

defendant

also owns,

operates,

or companies

associated
Emoluments

recei\;ng

licenses

with the owning

through

other

his financial stake in the

and operation

of those businesses in \;olation

Clause. In addition, revenues from foreign states' patronage

through

numerous

them, derives \'alue from the foreign permits and approvals

and other businesses may flow to the defendant.
defendant,

and

the United States and abroad, including other hotels, other properties for

sale or lease, and golf courses and c1ubs.52 Tbe defendant,
company

of the Foreign

at least one of his vanous

received one or more presents or emoluments

of the Foreign

of his hotels, golf clubs,

After 12:0 I pm on January
businesses, proJlerties,

20, 20 17, the

and other entities has

from foreign states and ,,;11 continue to do so.

B.

The defendant's Domestic Emoluments Clause violations

79.

As alleged

throughout

above,

the defendant

O\\TIS and controls

hundreds

of businesses

the country, including hotels and other properties. The defendant personally benefits

from the business dealings of these entities and agreements

associated ,,;th them, and is and ,,;11

be enriched by their business with state go\'Crnments or federal agencies within the scope of the
Domestic Emoluments Clause.

52
U.S. Ollice ofCov't Ethics, DonaldJ Trump, 2016 Executi\'e Branch Personnel
Public Financial Disclosure Report (~-Iay 16,2016), http://bil.ly/2gBUwIV.

24

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 28 of 48

The District of Columbia's Trump International Hotel
80.
primarily

On August 5, 2013, Trump
by the defendant,

Old Post OfTice LLC, a business entity owned

signed a GO-year lease "ith

the General

Seniees

("GSA")-an

independent

President-to

open a hotel in the Old Post OfTice Building in the District of Colnmbia.

81.

agency of the United States, whose administrator

Administration

is appointed by the

More than 7G% of Trump Old Post Of lice LLC is owned by

which is in turn O\\11ed almost entirely by the Donald J. Trump
defendant is the sole heneficiary. The Trump International

PJT

Holdings LLC,

Revocahle Trust, of which the

Hotel \\'ashington,

D.C. is located at

this site. The defendant has not divested his interest in the lease since becoming President.
82.

Section 37.19 of the Old Post Ofiice lease states: "No ...

Government

of the United States ...

shall be admined

any benefit that may alise therefrom."

A \iolation

and a default unless it is remedied "ithin
defendant

elected ofTicial of the

to any share or part of this Lease, or to

of Section 37.19 is a non-monetary'

breach

30 days after notice from the GSA. Accordingly,

has been in breach of the lease with the GSA since 12:0 I pm on January

the

20, 20 I 7,

when he became President.
83.

Before the defendant's

to Representatives
the defendant

Elijah Cummings,

would be in \iolation

interests in the lease" for the Trump
the inauguration,

Norman

acting administrator.

the GSA's Deputy Commissioner

indicated

Peter DeFazio, Gerald Connolly, and Andre Carson that
of the lease unless he "fully divests himself of all financial
International

Hotel, which he has not done. Shortly after

Dong, a GSA ofTicial appointed by former President Obama, hecame

But less than a day later, the defendant

Horne, who had coordinated

53

inauguration,

replaced

the GSA's transition with the defendant's

Isaac Arnsdorf,

TnLlIIl) Picks Leader for Federal Agcllq

25

:'vIr. Dong "ith

Tim

campaign .. 3
\

Overseeing His D. C. Hotel,

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 29 of 48

84.
budget

Se\'eral weeks later, on ~Iarch

increasing

16,2017,

the defendant

released a proposed 2018

GSA's limding, while cutting all (or ncarly all) other non-defense-related

agencies' budgets.54 One week after that, on ~larch 23, the GSA issued a letter stating thatcontrary

to the lease's plain terms-Trump

Old Post Oflice LLC "is in full compliance

Section 37.19 [of the lease] and, accordingly,

the lease is valid and in full force and elfect.""

significant portion of the letter IT\iews the purported
and taxpayers-e\'en
85.
governing

the business of Trump

A

financial benefits of the lease to the GSA

though those benefits are immatelial

Attach cd to the ~larch

with

to the question of breach.

23, 20 I 7 letter was an amendment

Old Post Ollice LLC. This amendment

to the agreement
is the basis of the

GSA's position that the tenant is in eomplianee with the lease, but the letter does not explain how
the amendment

blings the tenant into compliance.

In fact, as described above, the amendment

does not prevent the defendant from recei\ing "any benefit" from the lease, and Trump Old Post
Ollice LLC remains in breach of the lease.
86.

In forbearing

from enforcing the Old Post Ollice lease's default and ternlination

procedures, despite the tenant's breach of its ternlS, and in cooperating with the tenant in
attempting

to create the appearance

giycn the defendant an emolument
87.

Additionally,

historic-preservation

POLITICO

of compliance

with the lease, the federal gm'ernment

has

in \iolation of the Domestic Emoluments Clause.

the defendant,

through

tax credit for the Trump

entities he owns, is seeking a S32 million

Intemational

Hotel. Approval of this credit is at

Gan. 26, 2017), http://politi.co/2psg!\lfU.

51
Ollice of ~lgmt. & Budget, Exec. Ollice of the President, America First, A Budget
Blueprint to Make America Great Again (2017), http://bit.ly/2J1\jrBO.
55
Letter from Ke\in 1\1. Terry, Contracting Oflicer, United
Admin" to DonaldJ Trump,j •..(Mar. 23,2017), http://bit.ly/2nhKf.'lB.

26

States Gen. Sen's.

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 30 of 48

the discretion of the National Park Sen;ce, an instrumemality of the federal goyernment now
under the defendant's authm;ty.';'; If approyed, the tax credit would olEet approximately 20";', of
the cost of rehabilitating the building in which the Trump Intcrnational Hotel is operating.
88.

On NO\Tmber 14,2016, the defendant receiwd appro,'alli'OITI the National Park

Seryice for the second phase of the thrce-step-approyal

process. If final appro,'al is granted, it

may constitute an emolument, in "iolation ufthe Donlcstic Emoluments Clause."

Mar-a-Lago Club
89.

The Mar-a-Lago Club is a priyate club and estate located in Palm Beach, Florida.

It is comprised of 20 acres ofland, \\;th a main mansion of oyer 100 rooms, along with a beach
club, pools, tennis courts, aDd a 20,000 square foot hallroom for priyate eyents. The estate itself
was purchased by the defendant in 1985. A decade later, in 1995, the defendant opened the club
as a hotcl and resort for dues-paling members of the public. It is owned by the defendant directly
or owned by entities that he directly controls.
90.

The defendant, through entities he owns, recei,'es payments made to the ,,[ar-a-

Lago Club by members and guests who join or ,;sit the club, or rent space there, or pay for other
goods or sen;ces at the club.
91.

Membership

in the ;..Iar-a-Lago Club reqUIres payment of an initiation fee of

$200,000, plus tax, as well as 514,000 a year in annual dues. This fee was doubled follO\,;ng the
defendant's election as President-an

increase from $100,000 to 5200,000.51 Since his election,

S6
Eric Le';tz, Tmmp It'on the Presidem)', 17lenAPIJToralon a Tax Subsiq)'for His Hotel,
New York ;..Iag. (Nov. 30, 2016), http://nym.ag/20FFl09.

Robert Frank, Mar-a-Lago Membership Fee Doubles to S200, 000, CNBC Gan. 25,
2017), http://cnb.cxl2kjIc2j.
57

27

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 31 of 48

the defendant has also attempted to capitalize on his office by ad,'ertising his private property to
foreign governments and indi\iduals.
92.

The State Department

United Kingdom

and Albania-ha,'e

and at least two U.S. Embassies-those
promoted

the :-Iar-a-Lago

located in the

estate and club on their

respecti,'e websites by posting a 400-word blog post, originally mitten by Leigh Hartman for a
State Department-managed
93.

website, "Share America," on Apli14, 2017.'"

The State Department

and embassies' actions h'l\"e ,erwd

to promote :-'Iar-a-

Lago as the defendant's "Florida estate" and claimed that it "has become well known as the
president frequently travels there to work or host foreign leaders."'"
94.

The State Department is an executi,'e department within the federal government

under the defendant's authority.
95.

ShareAmerica,

the blog for which the post was originally written, is specifically

direrled towards foreign indi,'iduals and gowrnments."o
96.

This po,t advertising 1\lar-a-Lago has since been removed from the wehsites of

the State Department and the embassies, but not before substanti,'e, world-wide advertising of
the defendant's private property, using government resources, had occurred.
97.

The defendant has used his official position as President to promote his 1\lar-a-

Lago property. He has designated :-Iar-a-Lago as the "\\'inter \\'hite House," and also refers to it

:,"
POLITICO

Darren Samuelsohn, Slate Departmfll~ U.S Embassies Promolillg Trump's ,I/ar-a-Lago,
(Apr. 24, 2017), http://politi.co/2peC7Jb.

Mar-a-Lago:
'He wiT/ler 1l7,ite HOllse, http://bit.Iyl2pa\\'tRK
(blog post
subsequently remoYCd; fanner blog post shown at Dan Merica, Stale DejJartmfTll removes .\lar-a-Lago
blDgposl, CNN (Apr. 25, 2017), hllp:/ / enn.it/2pdRu2x).
59

60

About Us, ShareAmerica, IlItps:/ /share.america.gov/about-us/

20 I 7).

28

(last visited June 9,

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 32 of 48

as the "Southern

White House."'iI Since taking office, he has \;sited l\lar-a-Lago

on at least seyen

occasions, and has met with a number of foreign leaders there, including Japanese

Prime

l\linister Shinzo Ahe and the President of the People's Repuhlic of China, Xijinping62
98,

Upon

information

and belief, federal,

state, and local goyernments,

or their

instrumentalities, ha\'c nlade and \\;11continue to make paynlcnts for the use of facilities owned
or operated

by the defendant

for a yariety of functions, The defendant will recei\'e a portion of

those payments, which constitute emoluments prohihited by lhe Domestic Emoluments Clause.
99.

Although the exact extent of these emoluments

is not currently known, examples

of current or potential \;olations include "public pension funds in at least se\'en U.S. states"-blll
not the State of l\laryland
an im'estment

or the District of Columbia-that

"haye im'ested millions of dollars in

fund that owns a New York hotel and pays one of President

Donald Trump's

companies to run it, according to a Reuters rc\;ew of public records."63 And the defendant has

61
See, e.g., Press Briefing by Press Secretary Scan Spicer (Feb. 2, 2017) ("Luckily, for
those of you who are going to be joining the President down to ~lOl;da this weekend, you'll get
some lime to get a glimpse of summer at the '\\'inter \\'hile House' in I\lar-a-Lago."),
http://bit.ly/2k5Q3IZ;
Remarks by President Trump in Listening Session \\;th the National
Association of :\Ianufacturers (:\Iar. 31, 20 I 7) ("The President: ... As you know the President of
China is coming to FJOI;da. We're ha\;ng a meeting-big
meeting-at
I\lar-a-Lago. We call it
the Southern \Vhite House, which it actually is. It was originally built as the Southern \\'hite
House, a 101of people don't know."), http://bitJy/2rUHOZL
62
See Background Briefing by Senior Administration Officials on the Visit of
President Xi jinping
of the People's Republic of China (Apr. 4, 2017) ("SENIOR
ADI\IINISTRATION
OH1CIAL:
I'm certain it was President Trump's imitation thaI they
meet outside onVashington,
D.C.you know, you\'e heard people refer to it as the '\\;nter
\\'hite House.' It's a place where he fecls comfortable and at home, and where he can break the
icc with Xi jinping
\\;thout
the formality,
really, of a Washington
meet-up."),
http://bitJy I2n VQy26.
63
julia Harte, Exclusive: A New link holf! deal shows how some public j>ensionji11lds help to
enrich Tmmp, Reuters (Apr. 26, 2017), http://reut.rs/20IONEp.

29

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 33 of 48

recei,'ed (or will likely reeei,'e) a host of other potemial emolumems

from fcdcral, statc, and/or

local governments.

C.

Post-inauguration premium for the defendant's goods and services

100.

Sincc the dcfendam's

inauguration

as President, goods and scr"ices sold hy his

,'mious Trump husincsscs ha,'e sold at a premium. Thc dcfcndant's
brand greater prominence

thc potcntial

10

prmidc)

and exposure.

high officc !,>i,'esthc Trump

~lorco\'cr, these goods and senices pro\'idc (or ha\"c

a unique bcncfit: access to, influence on, and the goodwill of the

President of thc United States.
J

0 I.

Thus, for example, the starting rate for "guest rooms" at the defendam's

Office hotel increased

10

Old Post

5500 on most nights, up hundreds of dollars from when the hotel first

opened shortly before the defendant's election'"'
102.

Further, as discussed earlier, the initiation fee for membership

at defendant's

l\Iar-

a-Lago resort doubled from 5 I00,000 to 5200,000 shortly after he was eleCled'",;
D.

The plaintiffs' interests in this litigation

103.

The plaimifTs' imerests in this litigation are substantial. They arc harmed by the

defendant's

"ill continue
:\laryland's
interest

constitutional

to suffer) harm

prmisions

the states themselves;

in at least two distinct ways. Fin/, they have suffered

to their so,'ereign

interest in presef\ing

in not being

constitutional

\;olations

subjccted

and/or

quasi-sovereign

its rightful status "ithin
to unfair

competition

including

our fedcral system; the plaintiffs'
by ,irtuc

designed to guard against corruption

the plaintifis' interest in protecting

imerests,

and

10

of ongoing

,iolations

their ecollOlnies

and their residents

The Associated Press, T rumj} Hotd Jfqy He Po!itica! Capita! q[ Nation's
Fortune (:\lar. 5, 2017), http://for.tn/2rsCsXI.
Robert Frank, Mar-a-Lago membershipJee doubles to $200,000.

30

of

protect interests distinct to

6'

65

(and

frOill

Capita!,

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 34 of 48

economic harm; and :\Iaryland's
suffered (and ,,;11 continue
defendant's

interest in preselying its tax revonue, Second, the plaintiffs have

to suffer) proprietary

ongoing constitutional

that the defendant

is in \;olation

\;olations,

and other financial hanns as a result of the

These injuries can be redressed by a declaration

of the Emoluments

Clauses and an injunction preventing

his

continued \;olation of them,
Sovereign and quasi-sovereign injuries to the plaintiffs
10.• ,

Maryland's

sovereign

interest

in enforcing the tenns

agreed to enter the Union. Before adopting the federal Constitution,
states were truly independent
incorporated

protections

with specific prohibitions
go\'ernments.

on public ollicials accepting payments

The 1\laryland Declaration

and contains

precursor

a precursor

10

and its sister

:\Iaryland-had

into their own legal codes and constitutions,
from federal, state, or foreign

of Rights, adopted AUl,,'llStI.•, 1776, prO\'ides that "all

persons invested ,,;th the lq".;slati\'e or exeeUli\'C powers of government
public,"

:\Ial)'land

sO\'ereigns. 1\lany of these states-including

against public corruption

on which it

the U.S, Constitution's

are the trustees of the

Emoluments

combines the concerns of the two c1auscs into a single prohibition:

Clauses,"" This
"That no person

ought to hold, at the sanlC tilne, J110rc than one office of profit, nor ought any person,

in public

trust, to rccei\.c any present from any foreign prince or state, or from the United States, or any of

them, ,,;thout
pro\idcd

the approbation

for banishment

of this State,""7 The 1\lal)'land

"[oreyer" as a potential

66

1\ld. Declaration

"7

!d., art. 32.

punishment

Constitution

for a governor

of Rights of 1776, art. .• (Aug, 1.•,1776).

31

of 1776 further

sharing "directly or

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 35 of 48

indirectly" in the profits of another office, and also prohibited the governor fi'OlTI ecei\ing part of
r
the profits of supplying the army and nmy,68
I05.

l\la~'land's historical

consistent \\ith the constitutions
Constitution

prohibition

against

forcib'll and domestic cI110lumcnts

is

adopted by the other colonies at the time, The Pennsyh'ania

of 1776, which Benjamin franklin

helped draft, made clear "[tJhat gO\'ernment is,

or ought to be. instituted for the common benefit, protection and security of the people, nation or
cOlTImunity; and not for the particular enl0Iun1(~nt or ad\'antagc

of any single man, family, or sett

of men, who arc a part only of that community"'6!> The South Carolina Constitution
and the Massachusetts

Constitution

of 1780," contained

similar prohibitions

of 1776,'''

against corruption

of public oflieials,
106,

The prohibitions

contained

in the Domestic and foreign

Emoluments

Clauses

were thus material inducenlcllts to the states entering the union. As a stale sovereign, l\laryJand
retains its power to bling suit to enforce those prohibitions today,
107,
compete

68

The plaintiffs'
improperly

for

goven,mental
influence

interest

or favor.

in not being compelled

As explained

above,

the

to

Domestic

~ld. Const. of 1776, arts. 33 and 53.

6!>
Const. of Pa" Declaration of the Rights of the Inhabitants of the Commonwealtb
or State of Pennsyh'ania, art. V; .lee alw id, at ~ 36 ("As e\Try freeman to preserve his
independence, (if without a sufficient estate) ought to ha\'e some profession, calling, trade or
farm, whereby he may honestly subsist, there can be no necessity for, nor use in establishing
offices of profit, the usual effects of which are dependence and senility unbecoming freemen, in
the possessors and expectants; faction, contention, corruption, and dborder among the people.
But if any man is called into public seniee; to the prejudice of his-private affairs, he has a right to
a reasonable compensation: And whencver an oIliee, through increase of fecs or othendse,
becomes so profitable as to occasion many to apply for it, the profits ought to be lessened by the
legislature, ").
iO

S.C. Const. of 1776, art. X.

il

~[ass. Const., eh. II, art. XIII.

32

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 36 of 48

Emoluments Clause in particular reflects the Framers' deep concern that one or r110rcof the
states (or the federal goyernment)
power to their ad,'antage

might seck to buy ofT the President so that he would exercise

and to the detriment

of other states, thercby disrupting the balance of

po,,'er in thc federalist system. Thus, thc Domcstie Emoluments

Clause aims to preyent "the

United States, or any of thcm," from fecling compelled (or being compelled) to conler pt;,'ate
financial benefits on the President in order to compcte for inlluence and favor.
108.

The District and lIlaryland each hal'e a gm'crnmental

interest in thc enforcement

of their respective laws regarding taxation, ctl\.iromnental protection, zoning, and land use as
they relatc to real propcrty that the defendant or the "Trump

Organization"

may own or seek to

acquire. The defendant and his afJiliated enterprises ha,'e a large and expanding portfolio of realestate holdings,

including

Realty, othem;se

a hotcl in the District, and the defendant's

known as 'I' International

Trump

International

Realty LLC, is registered to conduct business in

lIlmy'land,72
109.
requirements

Real-estate

acquisition,

ownership,

and development

implicate a range of legal

under the laws of the District and :'-Ialy'land, including tax laws that generate

revenue for the District, :'-Iaryland, and their instrumentalities.

The defendant

has boasted that

he has achieved success in real-estate acquisition and development by using his financial clout
and political connections

to extract from governments

waivers, and variances ,\;th

maximum concessions,

respect to taxes and other requirements

72
:'-Id. State Dep't of Assessments and Taxation,
for Trump International Realty, http://bit.ly/2qXZWpQ

exemptions,

inlposcd

by 1aw.73

:'-Id. Business Express, Registration

73
Geraldine Baum, Tom Hamburger & Michael j. :\Iishak, Trump has thrived with
gnve771mfllt'sgenernsi{r, L.A. Times (May II, 2011), http://lat.ms/
I UG:'-ltc8;jillian Kay Melchior,
Donald Trump Has Mastered the Art '!f the Tax Break, National Review (Aug. 19, 2015) ("Trump has
long sought subsidies, tax breaks, and other preferential treatment from the govcrnment."),

33

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 37 of 48

Indications

to date suggest that this longstanding

cease upon

the defendant's

defendant's ascendancy to the highest office in the land has enhanced his organization's

ability to

I 10.

governments with respect to his properties. i-l

The defendant's

the Constitution

potentially

protection,

placed at a disad,.antage

I I I.

including lost re'.enue

of

or (2) deny such requests and be

Either "ay, the result is the ,"Cry type of injury that the Domestic

of federal government

"hich rank tirst and fourth, respectiwly,

expenditures,

are particularly

decisions that are subject to the corrupting

Federal funds make up approximately

7-1

enforcement

,.is-il-\;s slates and other gO\.ernment entities that have granted or ,,;11

~loreO\.er, the District and l\laryland,

resulting from budgeta".

http://bit.ly

and compromised

Clause "as designed to prevent.

per capita amount

~la".land

in violation of

"ith an intolerable dilemma: either (I) grant

zoning, and land use regulations,

agree to such concessions.
Emoluments

or receipt of presents and emoluments

fequests for concessions, exemptions, wai,"crs, variances, and the like and

sufler the consequences,
em.ironmental

acceptance

presents the District and ;\la".land

the Organization~s

rather,

did not
that the

{i"OIll

to the Presidency;

Organization

there is e,;dence

\\;n concessions

election

practice of the Trump

25% of the District's

in

susceptible to inju".

influence of emoluments.75

fiscal year 2018 budget,'6

is rely;ng on federal lunds for nearly 30% of the State government's

and

budget for fiscal

I Irher3Y.

1\,1ichacl LaForgia & Steve Erler, ll'71f1l 77wl FeisfJ'jYeighboT Becomes the President, N.Y.

Times (~Iay 6, 2017), http://nyti.ms/2qXUxP,,.
U.S. Dept. of Commerce,
20 II) at 23, 32, http://bit.ly 12r6mJRe.
7.\

Consolidated Federal Funds Reportfor Fiscal Year 2010 (Sept.

76
Council of the District of Columbia, Committee of the Whole, Re/)ort on Bill 22241, tIze "Fiscal Year 2018 Federal Portion Budget Request Act rf 2017" (May 30, 2017) at 2,
http://bit.!y 12s0x6Fz.

34

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 38 of 48

year 2018."

Federal gOyernmelll spending accounted

domestic product and more than 28% of ~laryland's
~Iaryland

are home to headquarters

approximately

(,", more than 42% of the District's gross
in fiscal year 2014.'8 Both the District and

for federal agencies.

17% of the workforce in the District

79

Ci,ilian

federal agencies employ

and 10% of 1\laryland's total work.f,)rceHO

Federal agencies annually haye spelll more than 521 billion for procurement
more

than

government

526 billion for procurement
spending

in ~laryland81

and operatioI1s~ and the President's

Gi\'Cn this significance
significant

112.
as governments

I 13.

of federal

role in detennining

when, and where federal funds arc spent, the connict of interest inherent
receipt of emoluments

in the District and

how,

in the defendant's

directly and profoundly alrects the District and ~Iaryland.

The plaintiffs seek to protect this distinct illlerest, and thereby ,indicate
in our constitutional

The plaintiffs'

their role

SChCI11C.

interest in preventing

econonric injury to their residents

and their eCOJlOnries,The District is home to 680,000 residents, while the State of ~Iaryland
is home to o\'Cr 6. I ntillion residents. Residents ofbuth the District and ~laryland
thri,ing

participate in a

hospitality industry that comprises a substalllial part of the plaintiffs' economics.

For

"
~Id. Dept. of Legislati,'e Sen ices, 171e 90 Dqr RelJort: A Review qf the 2017 Legislative
Session at A-3, A-28, http://bit.ly/2r6gIEs.
78
Pew Charitable Trusts, Issue Bride Federal S/lfnding in the States 2005 10 2014 (~Iar. 3,
2016) at 6, http://bit.ly / I QIOq43.
79
Office of Personnel ~lanagcment, Data, Analysis & Documentation:
Federal
Employment Reports (Sept. 2015), http://bit.ly/2qZWcRE;
District of Columbia, Wage and
Salary Employment by Industry and Place of Work (Dec. 2015), http://bit.ly/2raF]hF.
80
John Fritze, Tmmp's Brlt{get Suggests .I1qjor Changes in Md., Baltimore Sun (1\lar. 16,
20 17), http://bsun.mdl2r6nl
Yk.

81
U.S. Dept. of Commerce,
2011) at 37, 48, http://bit.ly12r6n1JRe.

Consolida/ed Fedaal Funds Reportfor Fiscal Year 2010 (Sept.

35

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 39 of 48

example, in 2014, visitors

10

the District generated approximately

56,81 billion in spending'" and

drm'e 53,86 billion in \\'ages83 for 74,570 employees in the District's hospitality industry.'''
l\laryland,

In

lOurists and travelers spent nearly 5 17 billion in 2015, yielding S5,7 billion in \\'ages

for more than 140,000 employees,8; including more than 72,000 hospitality industry \\'orkers
employed in the t\\'o Maryland counties that border the District of Columbia'""
and :\la!)'land

regulate competition

and transparency

Both the District

in this indust!), through la\\'s that prohibit

anticompetiti\'c or deceptive practices and protect consumers.
114,

Residents of the District and :\la!)'land

and emoluments

10

the defendant

because

arc injured by the payment

it tilts the competitive

of presents

play;ng field to\\'ard

his

businesses; causes competing companies and their employees to lose business, wages, and tips;
and generates

a range of market

distortions

that restrict and curtail opportunity,

diminish

revenues and earnin,gs, and hanlper competition.
lIS,

The Distr;ct and l\laryland

in providing and presen;ng
their

residents

a b'el

are free from

ha,'e the authority and right

10

"indicate their intcrest

play;ng field in the hospitality indust!)', and in ensuring that

the injuries

dcfendant's ,;olations of the Emoluments

and

competitive

disad,'antages

that

Clauses,

82
Office of the Deputy :'vlayor for Planning and Economic Development,
alld Tourism, Imps:/ / dmped,dc.gov/page/hospitality-and-tourism.
83

Hos/lila!il)'

Id.

84

no\\' from

Id.

SS
l\ld. Tourism Development
4, 20 I 7) at 3, http://bit.ly /2rOk3Ra.

Board, Fr 2016 Tourism Deve!o/,menIAllllua!

Report Gan.

So
Md, Dept. of Commerce, MOlltgomery COUllf)',Md,: Erig Ecollomic Facts (2017) at 2,
http://bit.ly/2rFHvG2;:\ld,
Dept. of Commerce, Prillce Gco~~e's COUllf)',Md,: Erig Ecollomic Facts
(2017) at 2, http://bit.ly/2sY6P8e,

36

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 40 of 48

116.
,;olations

Maryland's

sovere'gn

of the Emoluments

Clauses

interests

'" tax

The

defendant's

interest in prcscf\;l1g

also il~jurc :\laryland's

revenues.

tax rc"clluc

for the benefit of its residents. For example, National Harbor is a resort development
a casillol restaurants,

George's

cntenainrncnt,

County, I\laryland.

a malina,

Ri,'er in Prince

and shops located on the Potomac

Although ~[aryland

docs not own National

with hotels,

Harbor,

the \'arious

hotels and other businesses in the complex generate significant tax revenue for state and local
go,'ernnlcnts,

through income tax assessed on the businesses

and their employees,

sales lax, hotel

tax, and other taxes and fees.

117.

The National

entertainment,
betwecn

Harbor

de\'e1opment

includes ~IGI\I National

shopping, and casino complex that is subject to a Community

~"IGM National

LLC, and the government

of P,ince George's

County,

Benefit

sets goals

I\IG~I National Harbor to hire Prince George's County residents, to contract with

im'estment
granted

opportunities

and

other

businesses

located

in the

County,

for County residents, The casino is operated

by the ~laryland Lottery and Gaming

Control

Commission,

Agreement

a

encouraging

enterprises

Community

Benefit Agreement

of the

business

of ~Ial')'land,B7 The

a hotel,

subdi\'ision

minority

State

Harbor,

Harbor,

and

to create

under a gaming license

a state go\'crnnlclll

entity.

Under ~Iaryland law, the state and local gO\'ernments recei\'e 56% of the proceeds generated by
~IGI\I National Harbor's \'ideo lottery tenninals and 20% orthe gross proceeds generated by its
table games,"B In the first four months
contributed

of 2017, I\IG1'v1 i\'ational

Harbor's

more than 575 million in revenue to state and local go\'ernment

casino proceeds
treasuries to fund

87
See County Council of Prince George's County, Md" Resolution 1\0, CR-68-20 14
Duly 23, 2014) (apprO\ing Community Benefit Agreement), http://bit.ly/2rotRaS,
88
l\ld, Code Ann" State Gov't ~ 9-IA-27; l\ld, LotteI')' and Gaming Control
Agency, Maryland Casinos Generate 5135,7 Million ;n Revenne During April, http://bit.ly /2s8zSsD,

37

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 41 of 48

,'a,ious public pllll'0ses, including more than S55 million for the State's Education Trust Fund.""
Any

circlltl1stanre

that inlpairs

National

Harbor's

ability

to attract

diminish the re"enues on which the state and local gm'ernments
118.
competitor

Trump

International

of National Harbor's

Hotel, located

\isilOfS

and guests

\,ill

dcpend.

in the District of Columbia,

is a direct

hotels and othcr businesses, including ~IG~I National Harbor.

Those hotels and businesses suffer competitive

harm by the defendants'

Yiolations, and ~laI)'land's tax caflers, in turn, arc

ongoing constitutional

dinlinishcd as a rcsult.90

Proprietary and other financial injuries to the plaintiffs

The District of Columbia. The Disllict has a financial intcrest in properties,

119.

venues, and bther enterprises locatcd within the District as owner. lender, or landlord.
120.
Washington

The

District

owns

the

"'alter

E. Washington

Com'ention

Center.

The

COIl\'cntion and Sports Authority (also known as Events DC), is an instrumentality

of the government

of the DislIict of Columbia.

in the District, including

the Walter

E\'ents DC operates event and conference venues

E. \Vashington

Convention

Center,

D.C. Armory,

and

Carnegie Library.
12 I.

The District, through E,'ents DC, scrves the diplomatic

and state governmcnts

by prmiding

community

and foreign

seniecs that compete with those owned or controlled by the

defendant or the Trump Organization.
122.

In fiscal year 2016, E,'ents DC generatcd

over S30 million in revenue

from

building rental and ancillary charges. A portion of E,'ents DC's revenue is based on demand for
the Convention
89

Center, D.C. Armory, and Carnegie Library.

Id.

"0

Benjamin Frced, AfGAf Sql's lis National Harhor Re.,"r/ Will 'Blow Awa/
Tn/mp's DC Hotel, Washingtonian (Jan. 20, 2016), hllp:/ /bit.ly/2qXV7g6.

38

Donald

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 42 of 48

123.
Foundation

On August 9, 2016, the Embassy of Colombia partnered

with the U.S. Soccer

to host an Olympic watch party at the Carnegie Libra".

for the soccer match

between the U.S. ,,"omen's National team and ColombiaY'
124.

On

September

6, 2016,

the Embassy

of T~ikistan

celebrated

Tajikistan

Independence Day at a reception hcld at the Carnegie Libra".'"'
125.

As discussed above, Trump

International

Hotel \Vashington,

D.C., specifically

markets its hotel rooms, event spacc, and food and be,.erage services to the diplomatic
community and foreign gO\.ertu1Jcnts.
126.

Thc defcndant, his family, and other members of the defendant's administration

ha,.e continued to promote his hotel properties, such as by making multiple appearances at tbose
properties, including in connection with oflicial business.
127.

Since the defendant's inauguration,

foreign governments (including the Embassy

of Kuwait and the Kingdom of Saudi Arabia) h",.e held cvents at the hotel, and public oflicials
have stated that, since the defendant was elected president, they are more likely to pay for goods
and sen.ices at the defendant's properties in an attempt to curry favor with him.
128.

The defendant's

Trump International

Hotel \\'ashington,

defendant or the Trump
\\'ashington

receipt or acceptance of presents or emoluments

Organization

through the

D.C. and other properties owned or controlled by the
has resulted in a competitive injury to the \\'alter

E.

Convention Center, D.C. Armo"., and Carnegie Library.

91
Olympic Watch Party, US Soccer Foundation website (last visited june 10, 2017),
http://bit.ly /2auR..t'1lm.

Tqjik IndflJflldence, Washington Diplomat Facebook page (last visitedjune
2017), http://bit.ly/2d\lR3z8.

39

10,

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 43 of 48

129,

The District's interest is further injured by the loss of the economic ,'alue of its

brands in compaJison

to defendant's

brand, as foreign and state governments

and their agents

and instrumentalities favor his businesses for reasons related to the defendant's receipt or
acceptance of presents or emoluments.

The State of Maryland.

130,

~Iaryland

has a proprietary

interest m properties,

venues. and enterprises that directly compete ,,'ith those o\\'ned or controlled by the defendant or
the Trump Organization,
competitive

advantage

Domestic Emoluments
131.
Conference

~Ialyland

suffers economic loss because its enterprises are placed at a

as the result of the defendant's

ongoing ,iolations

of the Foreign and

Clauses,

Specifically, ~Iaryland

has a dircct financial interest in the i\lomgomcry

Center, part of the Bethesda North ~Iarriott

Hotel and Conference

County

Center located

in Bethesda, ~Iaryland, The site of the hotel and conference center is o\\'ned by the !\Iontgomery
County Re,'enue Authority, a public corporation
subdivision

of the Statc of ~la,,'land,

The County

cemer portion of the site to ~10ntgomery
instrumentality
development
Stadium

Revcnuc

of the conference
separate

center \\'as funded
bonds

Authority

County and to the ~la,,'land

of the State,93 as equal tenams-in-common

AuthOlity.

contributions

established by ~lomgomelY

Stadium AuthOlity. an

to de"elop the conference center. The

through

issued by the County

bonds issued by the i\laryland
Revenue

Authority,

of private investors that funded the development

The hotel and conference center are overseen by a management

93

leased the conference

and direct

from ~10mgomelY County, The County Re,'enue Authority also leased the hotel

portion of the site to a consortium

representatives

County. \\'hich is a

of ~lontgomery

Coumy and the i\laryland

that includes

Stadium Authority. and the facility is

Md, Code Ann .• Econ. Dev. ~ 10-604 (2008 Repl. Vol.),

40

comnlittec

of the hotel.

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 44 of 48

operated by ~\Ian;olt Hotd Sen;ces,
conference center ofrers approximately

Inc., under an agreement

with ;,Iontgomery

County. The

39,000 square feet of meeting space. In fiscal year 201 G,

acti,.ities at the conference center generated, directly and indirectly, an estimated S45.9 million in
spending, and ~;elded estimated tax IT'Tnues of more than S2.7 million for the State and nearly
S I million for ;,Iontgomery
132.

Furthermore,

County."'
as explained

above, the State of ;'da~.land

has suffered financial

harm because it has a soverei,,'" interest in the receipt of tax revenues from facilities (like tbe
National

Harbor) that are in competition

with businesses owned by the defendant

and/or

his

affiliated enterprises outside the State.
133.

The declaratory

and i'1iuncti,.e relief that the plaintifE are seeking would remedy

these injuries by eliminating the plaintiffs' competiti,.e disadvantage

,;s-il-\;s the defendant.

V.
CLAIMS

COUNT I
Violations of the Foreign Emoluments Clause
(Declaratory and Injunctive Relief)
134.
violate-the

As discussed in detail above, the defendant
Foreign Emoluments

has ,;olated-and

will continue to

Clause. The phrase "Person holding any Ollice of Profit or

Trust," as used in the clause, includes the President. The phrases "'present" and "ElTIo]umcnl ...
of any kind whatever" together cover anything of ,"alue, including without limitation moneta!)'
and non-monetary gifts or transactions, transactions granting special treatment, and transactions
above 111arginal cost. And the phrase "any King, Prince, or foreign State" includes any foreign
govermnent and any agent or instrumentality thereof.

"'
Montgomery COIlIl!>'Cor!ferfl/ce Cenler Economic and Fisca/Impacl
Report Gan. 2017) at 1-2.

41

AnalYsis Fl" 2016,

Fina/

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 45 of 48

135.

The defendalll has accepted "preselll[sj" or "Emolumelll [s]" directly from-or

from age Ills or instrumentalities of-China,

the United Arab Emirates, Ku\\"ait, Indonesia, Saudi

Arabia, Afghanistan, Q,"ltar, India, Georgia, the United Kingdom, and other "foreign State!s],"
\\"ithout seeking or obtaining

"the Conselll of the Congress'.

as required

by the Foreign

Emolumellls Clause.
136.

As described

more fully in paragraphs

29

10

78 herein, the defendalll

is

committing or will camlnit these \iolations in connection with transactions in,.olving the Trump
International

Hotel \\'ashington,

D.C., 1'\ew York's Trump To\\"er and Trump \\'orld To\\"er,

restaurallls the defendant mnlS or that arc located in his hotels or other properties, the television
program '"The Apprentice" and its spinoffs and international ,.crsions, and other business and
property interests and transactions in the United States and abroad.
137.

As a direct result of these ,;olauons

of the Foreign Emolumellls Clause, the

plaintiffs, and their residents, have suffered signifiealll harm. They also stand to suller additional
significant hann directly from the further occurrence of these violations.
138.

No plan announced by the defendalll or his attorneys as of the date of this filing

can make this conduct constitutional or othenvisc fCIlledy these constitutional ,ioialions.
139.

The District of Columbia and the State of I\laryland arc entitled to injuncti,.e

and declaratory rclief to slOP the abon:-mentioned

Foreign Emolumellls Clause ,.iolations and

any other Foreign El11olul11ellls
Clause ,.iolations. This Court has the power to grant sueh relief
pursuant to its inherelll authority to gralll equitable relief and 28 U.S.C. ~~ 1331 and 220 I.

COUNT II
Violations of the Domestic Emoluments Clause
(Declaratory and Injunctive Relief)
140.
to ,;alate-the

As discussed in detail abm.e, the defendant has also ,;olated-and

,,;11 continue

Domestic El11alul11ellls
Clause. As President, he is the sale subject of the clause.
42

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 46 of 48

The

phrase

Prcsidcnt~s

"any

other

under

the clause coyers

as set by Congress,

"'Compcnsation~'

paYJl1cnts or transactions,
marginal

Emolument"

including

remuneration

monetary

transactions granting special treatment,

beyond

the

and nOIl-monetar\'

and transactions above

cos!. And the phrase "the United States, or any of them" includes any part of the

federal government,
instrumentality
141.

any

state government,

and

an" agent

or

thereof.
The defendant

is and will be accepting

United States, or any of them." As described
defendant

any local governn1cnt,

has committed

more fully

\iolatio!1S of the Domestic

"any other Emolument"
III

paragraphs

Emoluments

from "the

79 to 99 herein, the

Clause, and "ithout

this

Court's interyel1lion he "ill continue yiolate the clause.
142.

As a direct result of these \iolations

of the Domestic Emoluments

Clause, the

plaintiffs, and their residents, haye suffered significant harm. They also stand to suffer additional
significant harm directly from the further occurrence of these \iolations.
143.

No plan announced

by the defendant or his attortleys as of the date of this filing

can make this conduct constitutional or othcIV.'ise remedy these constitutional violations.
144.
and injunctiye
\iolations

The District of Columbia and the State of l\Ial)'land
relief to stop and preyent the abow-mentioned

and any other \iolations

are entitled to declaratol)'

Domestic

Emoluments

Clause

of the clause. This Court has the power to grant such rclief

pursuant to its inherent authority to grant equitable relief and 28 U.s.C.

43

~S1331

and 220 I.

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 47 of 48

VI.
PRAYER FOR RELIEF
WHEREFORE,

the District of Columbia and the State of Maryland

that this Court enter a judgment
(a)

respectfully request

in their favor and against the defendant, consisting of:

A declaratory judgment,

stating that the defendant

has \'iolated and will continue

to \iolate the Foreign and Domestic Emoluments Clauses, as construed by this Court;
(b)
Emoluments
(c)

injunctive relief, enjoining the defendant from \iolating the Foreign and Domestic
Clauses, as construed by this Court:
such other and further relief as this Court may deem just and proper.

Dated:June

12,2017

THE DISTRICT

OF COLUMBIA

B:_~&~
KARL A. RACI:\E
Attorney General for the District of Columbia
NATALIE

O. LeIJAII'.\\"

Chief Deputy Attorney General
Federal Bar No. 12533
na talie.l [e-mail]
STEI'HA:"IE

E. Lrros.

Senior Counsel to the Attorney General
[e-mail]
441 Fourth Street, l\'.\\'.
Washington, D.C. 20001
T: [phone]
F: [phone]
.pro hac vice applicationjortlicomillg

BRIA:" E. FROSH

Attorney General of l\laryland

44

Case 8:17-cv-01596-PJM Document 1 Filed 06/12/17 Page 48 of 48

STEVE:\":\I; SULLIVA"

Federal Bar No. 24930
[e-mail]
PATRICK B. HUGHES

Federal Bar ;'110. 19492
[e-mail]
Assistant Attorneys General
200 Saint Paul Place, 20th Floor
Baltimore, ;\Iaryland 21202
T: [phone]
F: [phone]
:\'OAH D. BOOKBINDER*

[e-mail]
STUART C.l\ICPHAIL*

[e-mail]
Citizens for Responsibility and
Ethics in Washington
455 ;\Iassachusetts Avenue, 1'1.\"., 6th Floor
Washington, D.C. 20001
T: [phone]
F: [phone]
*pro hac vice applicatiollforthcomillg

45