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U.S. lawmakers ask firm for details on Trump hotel investors -Breaking

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© Reuters. FILE PHOTO – The Trump International Hotel can be seen in Washington on September 28th 2020. REUTERS/Erin Scott

WASHINGTON, (Reuters) – Two House members have asked a Miami-based investment company for details about its plan to purchase the Washington hotel rights of Donald Trump. The firm said it had not disclosed all its investors and raises questions about potential conflicts of interest.

CGI Merchant Group agreed to purchase the rights to the Trump Organization hotel for $375 Million. This deal, according to reports, was expected to close in April. It could bring Trump $100 million.

Trump purchased the rights to this property, which is located four blocks away from the White House in the historical Old Post Office Building in 2013. This was before Trump ran for President and won 2016.

Carolyn Maloney (House Oversight and Reform Chair) and Gerald Connolly (House Subcommittee on Government Operations Chairman), wrote to Raoul Thomas, CGI Chief Executive, that they did not reveal all investors’ names.

“Far from resolving the Committee’s grave concerns regarding this lease, the high sale price and lack of transparency surrounding the ultimate purchasers have heightened concerns that former President Trump will receive a final, significant windfall from a lease that he should have never retained while in office,” the two Democrats wrote.

Trump did not officially divest from the business during his time in office, but he claimed that he transferred day-to-day operations over to his two sons.

His supporters, as well as some foreign government officials used it to gather during his presidency. It raised concern about ethics violations and led to legal disputes.

Trump’s company has settled the lawsuit of Washington, D.C.’s attorney general. It was alleging that Trump’s inauguration committee funneled large amounts of charitable money to the hotel. They denied all wrongdoing.

They stated that the settlement only raised more concerns and gave CGI a deadline of May 20 to reply.

CGI has stated it plans to run the property as an affiliated Waldorf Astoria Waldorf Astoria Hotel. CGI couldn’t be reached immediately for comment. Trump Organization could also not immediately be reached.

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