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Trump sues Hong Kong partners for financial records

US property tycoon Donald Trump has filed a fresh lawsuit against his Hong Kong partners, demanding access to their financial records of a plot of prime Manhattan land he partly owns, a press report said yesterday.

The new claims replaced the previous US$1 billion US lawsuit filed last month against New World Development (新世界發展) tycoon Henry Cheng (鄭家純) and Shui On Holdings (瑞安建業) chairman Vincent Lo (羅康瑞), reported the South China Morning Post.

ACCESS

"The new claims seek access to the partnership's books and records and the information concerning the sale of the property, which we allege the Cheng group has not fairly disclosed," said Michael Bowe, partner at Kasowitz, Benson, Torres and Friedman, which is representing Trump.

"The court order precludes them from doing anything with the proceeds until the case is resolved," he was quoted as saying.

Trump, the star of US reality TV show The Apprentice, had accused the Hong Kong businessmen of a "staggering breach" of their duty to get the best price for a plot of prime Manhattan land.

It was sold at 1.8 billion dollars to Extell Development Co and the Carlyle Group, although another bidder offered US$3 billion.

Trump also said they began selling parts of the property last year, which he owns a 30 percent interest, without telling him.

In the new lawsuit, Trump said Extell president Gary Barnett, has since lined up deals to "flip all, or substantially all of the property, to other buyers at an enormous profit."

`BLACKMAIL'

The newspaper said Trump wanted to learn more about the circumstances under which the deal took place but the Hong Kong partners allegedly refused to co-operate.

They have "repeatedly refused to permit me to review the partnerships' books, records and accounts unless I first agree to a so-called `protocol' limiting the exercise of my inspection rights," he was quoted as saying.

Trump also accuses his partners of trying to "blackmail" him after they allegedly sought a general release absolving them from liability for any misconduct, as a condition for him receiving his share of the sale proceeds.

THREATS

After he refused, they "threatened" that they would not distribute his share of the proceeds and would instead reinvest that cash in a different unidentified property, according to the newspaper.

Lo had previously rejected Trump's claims saying he did not own the land and had no right to decide who bought it.

Their deal only allowed him to share profits from a sale, he told the Post.
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