Trump May Have Breached Lease for D.C. Hotel, House Committee Says

The U.S. House Committee on Oversight and Reform wrote a letter to the General Services Administration (GSA) expressing its concern over whether former President Donald Trump breached his lease for the Trump International Hotel in Washington, D.C.

The Trump Organization is currently faced with accusations of submitting "false financial statements or certifications" to the GSA, which the committee said in its letter could constitute "a breach of the lease terms" of the historic Old Post Office Building the hotel is currently located in. The accusations are another on the pile of allegedly "fraudulent or misleading" financial statements, some of which New York Attorney General Letitia James is in the process of investigating.

The committee asked the GSA to terminate the lease before Trump's business can sell the hotel "and end, once-and-for-all, the grave damage this inappropriate lease has done to presidential ethics and integrity in government contracting."

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The Trump Organization is attempting to sell the lease to the hotel after failing to in 2019 before the pandemic hit. Above, the Trump International Hotel is seen on June 02, 2021, in Washington, DC. Kevin Dietsch/Getty Images

The letter also noted Trump's longtime accounting firm, Mazars USA LLP, recently cut ties with him, saying that a decade's worth of Statements of Financial Condition "should no longer be relied upon" and that the Trump Organization should inform any recipients of these statements of this.

In order to obtain the lease for the hotel, Trump submitted three years' worth of Statements of Financial Condition to the GSA. The committee's letter noted that these statements were from longer than 10 years ago, so they do not fall into the ones Mazars said are no longer reliable but added that they could still contain "potential misrepresentations about former President Trump's assets that are similar to those identified by state investigators."

CNN reported that the Trump Organization stands to make $100 million in profit off the hotel's sale. According to the House letter, the Trump Organization plans to sell the lease to CGI Merchant Group, an investment group based in Miami, for over $370 million. The GSA is currently reviewing the deal.

James' civil investigation into the Trump Organization is looking into whether the company inflated prices to get loans then subsequently deflated them for the tax benefits. According to upstate New York's Rome Sentinel, James will be going to court later Thursday to try to enforce a subpoena that would require Trump and his two oldest children, Ivanka Trump and Donald Trump Jr., to testify on the topic.

In a statement, James said the investigation has found "significant evidence" to back up its claims. Trump has denied the allegations in the past, calling them a "witch hunt," according to the Sentinel.

"No one should be rewarded for providing false or misleading information to the federal government or for seeking to profit off the presidency," the committee said in its letter.

In a statement sent to Newsweek, a GSA spokesperson said the agency is looking into the issue.

"GSA has taken, and will continue to take, steps to ensure that the tenant is in compliance with the terms and conditions of the lease," the spokesperson said. "GSA is committed to ensuring a thorough and appropriate review process for the proposed transfer of the lease of the Old Post Office building."

Update 02/17/22 12:17 p.m. ET: This story was updated to add more information.

Donald Trump, Arizona
Former President Donald Trump's lease for his hotel might be terminated after allegations of false financial statements. Above, Trump speaks at a rally at the Canyon Moon Ranch festival grounds on January 15 in Florence, Arizona. Photo by Mario Tama/Getty Images