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VOL. CLXVIII . . . No. 58,104 © 2018 The New York Times Company NEW YORK, WEDNESDAY, OCTOBER 3, 2018 U(D54G1D)y+&!z!@!#!: President Trump participated in dubious tax schemes during the 1990s, including instances of out- right fraud, that greatly increased the fortune he received from his parents, an investigation by The New York Times has found. Mr. Trump won the presidency proclaiming himself a self-made billionaire, and he has long in- sisted that his father, the legend- ary New York City builder Fred C. Trump, provided almost no finan- cial help. But The Times’s investigation, based on a vast trove of confiden- tial tax returns and financial records, reveals that Mr. Trump received the equivalent today of at least $413 million from his father’s real estate empire, starting when he was a toddler and continuing to this day. Much of this money came to Mr. Trump because he helped his par- ents dodge taxes. He and his sib- lings set up a sham corporation to disguise millions of dollars in gifts from their parents, records and in- terviews show. Records indicate that Mr. Trump helped his father take improper tax deductions worth millions more. He also helped formulate a strategy to un- dervalue his parents’ real estate holdings by hundreds of millions of dollars on tax returns, sharply reducing the tax bill when those properties were transferred to him and his siblings. These maneuvers met with lit- tle resistance from the Internal Revenue Service, The Times found. The president’s parents, Fred and Mary Trump, trans- ferred well over $1 billion in wealth to their children, which could have produced a tax bill of at least $550 million under the 55 percent tax rate then imposed on gifts and inheritances. The Trumps paid a total of $52.2 million, or about 5 percent, tax records show. The president declined re- peated requests over several weeks to comment for this article. But a lawyer for Mr. Trump, Charles J. Harder, provided a writ- ten statement on Monday, one day after The Times sent a detailed de- scription of its findings. “The New York Times’s allegations of fraud and tax evasion are 100 percent false, and highly defamatory,” Mr. Harder said. “There was no fraud or tax evasion by anyone. The facts upon which The Times bases its false allegations are extremely inaccurate.” Mr. Harder sought to distance Mr. Trump from the tax strategies used by his family, saying the president had delegated those tasks to relatives and tax profes- sionals. “President Trump had virtually no involvement whatso- ever with these matters,” he said. “The affairs were handled by other Trump family members who were not experts themselves and therefore relied entirely upon the aforementioned licensed profes- sionals to ensure full compliance with the law.” The president’s brother, Robert TRUMP TOOK PART IN SUSPECT SCHEMES TO EVADE TAX BILLS Behind the Myth of a Self-Made Billionaire, a Vast Inheritance From His Father This article is by David Barstow, Susanne Craig and Russ Buettner. Fred C. Trump’s real estate em- pire provided Donald J. Trump with today’s equivalent of at least $413 million. BERNARD GOTFRYD/GETTY IMAGES Continued on Page A10 A review of over 100,000 pages of records, including confidential tax returns, shows the wealth the president reaped from his father. THE NEW YORK TIMES MORIA, Greece — He survived torture in Congo, and a perilous boat journey from Turkey. But Mi- chael Tamba, a former Congolese political prisoner, came closest to death only after he had suppos- edly found sanctuary at Europe’s biggest refugee camp. Stuck for months at the camp on the Greek island of Lesbos, Mr. Tamba, 31, tried to end his life by drinking a bottle of bleach. The trigger: Camp Moria itself. “Eleven months in Moria, Mo- ria, Moria,” said Mr. Tamba, who survived after being rushed to hospital. “It’s very traumatic.” Mr. Tamba’s experience has be- come a common one at Moria, a camp of around 9,000 people liv- ing in a space designed for just 3,100, where squalid conditions and an inscrutable asylum process have led to what aid groups describe as a mental health crisis. The overcrowding is so extreme that asylum seekers spend as much as 12 hours a day waiting in line for food that is sometimes moldy. Last week, there were about 80 people for each shower, and around 70 per toilet, with aid workers complaining about raw sewage leaking into tents where children are living. Sexual as- saults, knife attacks and suicide attempts are common. The conditions have fueled ac- cusations that the camp has been left to fester in order to deter mi- gration and that European Union funds provided to help Greece deal with asylum seekers are be- ing misused. In late September, the European Union’s anti-fraud agency announced an investiga- tion. At the height of the European migrant crisis in 2015, Moria was merely a way station as tens of thousands of asylum seekers — many fleeing wars in Syria, Iraq and Afghanistan poured through the region on their way to northern Europe. Then, the num- bers were so great, the migrants were effectively waved through. Gradually, European Union countries tried to gain control over the situation by closing inter- nal borders and building camps at the bloc’s periphery in places like Lesbos, where so many of the ref- ugees arrived. Now they are stuck here. Today, Moria is the most visible symbol of the hardening Euro- pean stance toward migrants — one that has drastically reduced unauthorized migration, but at what critics see as a deep moral and humanitarian cost. Outside Europe, the European Union has courted authoritarian governments in Turkey, Sudan and Egypt, while Italy has negoti- ated with warlords in Libya, in a successful effort to stem the flow of migrants toward the Mediterra- nean. Inside Europe itself, those who still make it to the Greek islands — about 23,000 have arrived this ‘Better to Drown’: A Greek Refugee Camp’s Epidemic of Despair By PATRICK KINGSLEY Afghan refugees last week at a spillover camp outside Camp Moria on the Greek island of Lesbos. MAURICIO LIMA FOR THE NEW YORK TIMES Continued on Page A7 A Festering Symbol of Europe’s Hardening View of Migration SEATTLE — Amazon said on Tuesday that it would raise the minimum wage to $15 an hour for its United States employees, a rare acknowledgment that it was feeling squeezed by political pres- sure and a tight labor market. The raises apply for part-time workers and those hired through tempo- rary agencies. The company said it would also lobby Washington to raise the fed- eral minimum wage, which has been set at $7.25 for almost a dec- ade. The wages will apply to more than 250,000 Amazon employees, including those at the grocery chain Whole Foods, as well as the more than 100,000 seasonal em- ployees it plans to hire for the holi- day season. The change will not apply to contract workers. It goes into effect on Nov. 1. “We listened to our critics, thought hard about what we wanted to do, and decided we want to lead,” Amazon’s chief ex- ecutive, Jeff Bezos, said in a state- ment. “We’re excited about this change and encourage our com- petitors and other large employ- ers to join us.” Employment has become one of Amazon’s most potent political vulnerabilities as well as its most Amazon Raises Minimum Pay To $15 an Hour By KAREN WEISE Continued on Page A18 WASHINGTON — Senate Re- publican leaders pressed on Tues- day to wrap up the confirmation of Judge Brett M. Kavanaugh to the Supreme Court, seizing on word from the F.B.I. that it would com- plete its investigation into allega- tions of sexual assault and sexual misconduct as early as Wednes- day. “We’ll have an F.B.I. report this week, and we’ll have a vote this week,” an emphatic Senator Mitch McConnell of Kentucky, the ma- jority leader, told reporters after the Republicans’ weekly policy luncheon. But Mr. McConnell’s promise was as much about bluffing as it was about confidence, giving the nomination an air of inevitability even as five undecided senators will determine Judge Kava- naugh’s fate. Those five — the Re- publicans Susan Collins of Maine, Lisa Murkowski of Alaska and Jeff Flake of Arizona, and the Demo- crats Heidi Heitkamp of North Da- kota and Joe Manchin III of West Virginia — are refusing to tip their hands. The push for a quick vote on Judge Kavanaugh came as the Senate and the White House waited for the F.B.I. to finish its G.O.P. Presses To Vote in Days On Kavanaugh By SHERYL GAY STOLBERG and MICHAEL D. SHEAR Continued on Page A19 Our writers and editors cooked their way through this season’s new books to come up with a list of favorites. PAGE D4 FOOD D1-10 Fall’s Best Cookbooks Ten years ago, the company introduced a password system that connected to a broad swath of the internet. Now other sites may be at risk. PAGE B1 BUSINESS DAY B1-6 A Facebook Hack Ripples The mother of a boy whose time in gay conversion therapy led to a film had an emotional night at the premiere. PAGE C1 ARTS C1-8 ‘Boy Erased’ Is Her Story, Too Amsterdam is filled with cultural riches, but some visitors come for less high- minded pursuits. New measures are aimed at curbing misconduct. PAGE A4 INTERNATIONAL A4-7 Tourists Behaving Badly Prosecutors said “serial rioters” at- tacked protesters at a 2017 white nation- alist rally in Charlottesville. PAGE A9 NATIONAL A8-23 4 Charged in Virginia Violence Hannah Fox, 9, slept in a car as neigh- borhoods remained cut off and sub- merged by Hurricane Florence. PAGE A8 Still Soaked by Monster Storm Dancers in a piece at the Park Avenue Armory were like musical notes against the stage, Gia Kourlas writes. PAGE C2 Diluting Bach’s Dancing Spirit Thomas L. Friedman PAGE A26 EDITORIAL, OP-ED A26-27 “Mine is the story of a gay immigrant, told through food,” says Nik Sharma, author of a new cookbook. PAGE D1 A Life Well Seasoned Reviews are still out on the new trade deal, but its name, U.S.M.C.A. for short, is getting two thumbs down. PAGE B2 Try Saying It Five Times Fast Domestic partners of diplomats will be denied visas, even those from nations that ban same-sex marriage. PAGE A6 U.S. Change on Gay Envoys Yankees Manager Aaron Boone chose Luis Severino to start the wild-card game. Second-guessing began. PAGE B7 SPORTSWEDNESDAY B7-10, 12 Who’s Pitching First? After six of their colleagues committed suicide, taxi drivers are opening up more about depression. PAGE A24 NEW YORK A24-25, 28 Suicides Get Cabbies Talking Late Edition Today, patchy morning fog, partly sunny, high 76. Tonight, partly cloudy, low 63. Tomorrow, clouds and sunshine, warmer, humid, high 80. Weather map is on Page B12. $3.00

TO EVADE TAX BILLS IN SUSPECT SCHEMES TRUMP TOOK …Oct 03, 2018  · VOL.CLXVIII ... No. 58,104 ©2018 The New York Times Company NEW YORK, WEDNESDAYOCTOBER 3, 2018, C M Y K,Bs-4C,E2

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Page 1: TO EVADE TAX BILLS IN SUSPECT SCHEMES TRUMP TOOK …Oct 03, 2018  · VOL.CLXVIII ... No. 58,104 ©2018 The New York Times Company NEW YORK, WEDNESDAYOCTOBER 3, 2018, C M Y K,Bs-4C,E2

VOL. CLXVIII . . . No. 58,104 © 2018 The New York Times Company NEW YORK, WEDNESDAY, OCTOBER 3, 2018

C M Y K Nxxx,2018-10-03,A,001,Bs-4C,E2

U(D54G1D)y+&!z!@!#!:

President Trump participatedin dubious tax schemes during the1990s, including instances of out-right fraud, that greatly increasedthe fortune he received from hisparents, an investigation by TheNew York Times has found.

Mr. Trump won the presidencyproclaiming himself a self-madebillionaire, and he has long in-sisted that his father, the legend-ary New York City builder Fred C.Trump, provided almost no finan-cial help.

But The Times’s investigation,based on a vast trove of confiden-tial tax returns and financialrecords, reveals that Mr. Trumpreceived the equivalent today of atleast $413 million from his father’sreal estate empire, starting whenhe was a toddler and continuing tothis day.

Much of this money came to Mr.Trump because he helped his par-ents dodge taxes. He and his sib-lings set up a sham corporation todisguise millions of dollars in giftsfrom their parents, records and in-terviews show. Records indicatethat Mr. Trump helped his fathertake improper tax deductionsworth millions more. He alsohelped formulate a strategy to un-dervalue his parents’ real estateholdings by hundreds of millionsof dollars on tax returns, sharplyreducing the tax bill when thoseproperties were transferred tohim and his siblings.

These maneuvers met with lit-tle resistance from the InternalRevenue Service, The Timesfound. The president’s parents,Fred and Mary Trump, trans-ferred well over $1 billion inwealth to their children, whichcould have produced a tax bill of atleast $550 million under the 55percent tax rate then imposed ongifts and inheritances.

The Trumps paid a total of $52.2million, or about 5 percent, taxrecords show.

The president declined re-peated requests over severalweeks to comment for this article.But a lawyer for Mr. Trump,Charles J. Harder, provided a writ-ten statement on Monday, one dayafter The Times sent a detailed de-scription of its findings. “The NewYork Times’s allegations of fraudand tax evasion are 100 percentfalse, and highly defamatory,” Mr.Harder said. “There was no fraudor tax evasion by anyone. The

facts upon which The Times basesits false allegations are extremelyinaccurate.”

Mr. Harder sought to distanceMr. Trump from the tax strategiesused by his family, saying thepresident had delegated thosetasks to relatives and tax profes-sionals. “President Trump hadvirtually no involvement whatso-ever with these matters,” he said.“The affairs were handled byother Trump family members whowere not experts themselves andtherefore relied entirely upon theaforementioned licensed profes-sionals to ensure full compliancewith the law.”

The president’s brother, Robert

TRUMP TOOK PARTIN SUSPECT SCHEMES

TO EVADE TAX BILLSBehind the Myth of a Self-Made Billionaire,

a Vast Inheritance From His Father

This article is by David Barstow,Susanne Craig and Russ Buettner.

Fred C. Trump’s real estate em-pire provided Donald J. Trumpwith today’s equivalent of atleast $413 million.

BERNARD GOTFRYD/GETTY IMAGES

Continued on Page A10A review of over 100,000 pages of records, including confidential tax returns, shows the wealth the president reaped from his father.THE NEW YORK TIMES

MORIA, Greece — He survivedtorture in Congo, and a perilousboat journey from Turkey. But Mi-chael Tamba, a former Congolesepolitical prisoner, came closest todeath only after he had suppos-edly found sanctuary at Europe’sbiggest refugee camp.

Stuck for months at the camp onthe Greek island of Lesbos, Mr.Tamba, 31, tried to end his life bydrinking a bottle of bleach. Thetrigger: Camp Moria itself.

“Eleven months in Moria, Mo-ria, Moria,” said Mr. Tamba, whosurvived after being rushed tohospital. “It’s very traumatic.”

Mr. Tamba’s experience has be-come a common one at Moria, acamp of around 9,000 people liv-ing in a space designed for just3,100, where squalid conditionsand an inscrutable asylumprocess have led to what aidgroups describe as a mentalhealth crisis.

The overcrowding is so extremethat asylum seekers spend asmuch as 12 hours a day waiting inline for food that is sometimesmoldy. Last week, there wereabout 80 people for each shower,and around 70 per toilet, with aidworkers complaining about rawsewage leaking into tents wherechildren are living. Sexual as-saults, knife attacks and suicideattempts are common.

The conditions have fueled ac-cusations that the camp has beenleft to fester in order to deter mi-gration and that European Union

funds provided to help Greecedeal with asylum seekers are be-ing misused. In late September,the European Union’s anti-fraudagency announced an investiga-tion.

At the height of the Europeanmigrant crisis in 2015, Moria wasmerely a way station as tens ofthousands of asylum seekers —many fleeing wars in Syria, Iraqand Afghanistan — pouredthrough the region on their way tonorthern Europe. Then, the num-bers were so great, the migrantswere effectively waved through.

Gradually, European Union

countries tried to gain controlover the situation by closing inter-nal borders and building camps atthe bloc’s periphery in places likeLesbos, where so many of the ref-ugees arrived. Now they are stuckhere.

Today, Moria is the most visiblesymbol of the hardening Euro-

pean stance toward migrants —one that has drastically reducedunauthorized migration, but atwhat critics see as a deep moraland humanitarian cost.

Outside Europe, the EuropeanUnion has courted authoritariangovernments in Turkey, Sudanand Egypt, while Italy has negoti-ated with warlords in Libya, in asuccessful effort to stem the flowof migrants toward the Mediterra-nean.

Inside Europe itself, those whostill make it to the Greek islands —about 23,000 have arrived this

‘Better to Drown’: A Greek Refugee Camp’s Epidemic of DespairBy PATRICK KINGSLEY

Afghan refugees last week at a spillover camp outside Camp Moria on the Greek island of Lesbos.MAURICIO LIMA FOR THE NEW YORK TIMES

Continued on Page A7

A Festering Symbol ofEurope’s HardeningView of Migration

SEATTLE — Amazon said onTuesday that it would raise theminimum wage to $15 an hour forits United States employees, arare acknowledgment that it wasfeeling squeezed by political pres-sure and a tight labor market. Theraises apply for part-time workersand those hired through tempo-rary agencies.

The company said it would alsolobby Washington to raise the fed-eral minimum wage, which hasbeen set at $7.25 for almost a dec-ade.

The wages will apply to morethan 250,000 Amazon employees,including those at the grocerychain Whole Foods, as well as themore than 100,000 seasonal em-ployees it plans to hire for the holi-day season. The change will notapply to contract workers. It goesinto effect on Nov. 1.

“We listened to our critics,thought hard about what wewanted to do, and decided wewant to lead,” Amazon’s chief ex-ecutive, Jeff Bezos, said in a state-ment. “We’re excited about thischange and encourage our com-petitors and other large employ-ers to join us.”

Employment has become one ofAmazon’s most potent politicalvulnerabilities as well as its most

Amazon RaisesMinimum PayTo $15 an Hour

By KAREN WEISE

Continued on Page A18

WASHINGTON — Senate Re-publican leaders pressed on Tues-day to wrap up the confirmation ofJudge Brett M. Kavanaugh to theSupreme Court, seizing on wordfrom the F.B.I. that it would com-plete its investigation into allega-tions of sexual assault and sexualmisconduct as early as Wednes-day.

“We’ll have an F.B.I. report thisweek, and we’ll have a vote thisweek,” an emphatic Senator MitchMcConnell of Kentucky, the ma-jority leader, told reporters afterthe Republicans’ weekly policyluncheon.

But Mr. McConnell’s promisewas as much about bluffing as itwas about confidence, giving thenomination an air of inevitabilityeven as five undecided senatorswill determine Judge Kava-naugh’s fate. Those five — the Re-publicans Susan Collins of Maine,Lisa Murkowski of Alaska and JeffFlake of Arizona, and the Demo-crats Heidi Heitkamp of North Da-kota and Joe Manchin III of WestVirginia — are refusing to tip theirhands.

The push for a quick vote onJudge Kavanaugh came as theSenate and the White Housewaited for the F.B.I. to finish its

G.O.P. PressesTo Vote in DaysOn KavanaughBy SHERYL GAY STOLBERG

and MICHAEL D. SHEAR

Continued on Page A19

Our writers and editors cooked theirway through this season’s new books tocome up with a list of favorites. PAGE D4

FOOD D1-10

Fall’s Best CookbooksTen years ago, the company introduceda password system that connected to abroad swath of the internet. Now othersites may be at risk. PAGE B1

BUSINESS DAY B1-6

A Facebook Hack RipplesThe mother of a boy whose time in gayconversion therapy led to a film had anemotional night at the premiere. PAGE C1

ARTS C1-8

‘Boy Erased’ Is Her Story, TooAmsterdam is filled with cultural riches,but some visitors come for less high-minded pursuits. New measures areaimed at curbing misconduct. PAGE A4

INTERNATIONAL A4-7

Tourists Behaving BadlyProsecutors said “serial rioters” at-tacked protesters at a 2017 white nation-alist rally in Charlottesville. PAGE A9

NATIONAL A8-23

4 Charged in Virginia Violence

Hannah Fox, 9, slept in a car as neigh-borhoods remained cut off and sub-merged by Hurricane Florence. PAGE A8

Still Soaked by Monster StormDancers in a piece at the Park AvenueArmory were like musical notes againstthe stage, Gia Kourlas writes. PAGE C2

Diluting Bach’s Dancing Spirit

Thomas L. Friedman PAGE A26

EDITORIAL, OP-ED A26-27

“Mine is the story of a gay immigrant,told through food,” says Nik Sharma,author of a new cookbook. PAGE D1

A Life Well Seasoned

Reviews are still out on the new tradedeal, but its name, U.S.M.C.A. for short,is getting two thumbs down. PAGE B2

Try Saying It Five Times FastDomestic partners of diplomats will bedenied visas, even those from nationsthat ban same-sex marriage. PAGE A6

U.S. Change on Gay Envoys

Yankees Manager Aaron Boone choseLuis Severino to start the wild-cardgame. Second-guessing began. PAGE B7

SPORTSWEDNESDAY B7-10, 12

Who’s Pitching First?After six of their colleagues committedsuicide, taxi drivers are opening upmore about depression. PAGE A24

NEW YORK A24-25, 28

Suicides Get Cabbies Talking

Late EditionToday, patchy morning fog, partlysunny, high 76. Tonight, partlycloudy, low 63. Tomorrow, cloudsand sunshine, warmer, humid, high80. Weather map is on Page B12.

$3.00