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Every investor in Trump's Toronto tower lost money except Trump : report
Every investing partner working with President Trump's company on a project to build luxury condominiums in Toronto lost money on the project, save for Trump himself, according to an investigation published by the Toronto Star.
The $500 million condo-hotel highrise faced a tumultuous beginning after it was revealed that its lead developer had fled to Toronto after facing bankruptcy fraud and embezzlement charges.
The developer, Leib Waldman, was detained and extradited to the U.S., where he was sent to prison. After Waldman's exit from the project, it quickly collapsed.
The rocky process, which included skyrocketing project costs, poor weather during construction, design changes and the hotel opening six months late in 2012, led to investors taking significant financial losses.
Toronto billionaire Alex Shnaider, a principal investor in the project, saw his company Talon file for bankruptcy in 2016. In the filings, the company reported that it still had $301 million to repay of a $310 million loan it borrowed nine years ago for the Trump Toronto project.
A spokesman for Shnaider told the Star that the global financial crisis was the principal reason for the deal's failure.
"Mr. Shnaider lost more money on the Trump Tower Project than anyone else," a spokesperson said. "The project was unsuccessful, in Mr. Shnaider's opinion, because of the global financial crisis and its effect on buyers' and potential buyers' ability to close or obtain funding to close, and because of inexperienced management."
Trump, however, walked away from the project with millions, according to the Toronto Star's report. He collected $1.7 million in management fees between 2014 and 2016, as well as a further payout of at least $6 million after walking away from the project.