Broward

THE COURTS

Trump tower promoter’s criminal record was concealed by feds

 

Years before Felix Sater helped lead the development of a Fort Lauderdale condo-hotel, he pleaded guilty in a massive stock fraud, but his case was sealed by the court — and investors.

msallah@MiamiHerald.com

They announced the stunning 24-story high-rise on Fort Lauderdale’s beach that became one of the biggest condo-hotel deals in Florida.

The $200 million Trump International Hotel & Tower was touted as a draw for international tourism that would transform the popular beach.

There were other plans for Trump developments in New York and Phoenix, with Sater jetting to sites and interviewing with the media.

In a 2007 session with The New York Times, he boasted about the ventures, while admitting to mistakes “in my 20s,” including the barroom brawl.

The newspaper also turned up tantalizing details, including two people charged in the New York stock case who said Sater helped the government in the war on terror by tracking down black market missiles.

But missing were details about Sater’s guilty plea to racketeering in the New York boiler room and his arrangement with prosecutors.

Not until three years later did those details emerge with the civil racketeering suit filed by a finance director of Bayrock, targeting Trump tower and other ventures.

Among the disclosures: Sater had been cooperating with the feds against other suspects, among them crime syndicate soldiers.

Making matters worse, the lawsuit — and the secret details — were plastered on Courthouse News, a website that covers legal affairs.

It set off a reaction in the courts rarely seen, with one judge sealing the civil suit and another judge ordering a criminal probe of the lawyer who filed it, Fred Oberlander.

Prosecutors argued the lawsuit could have been filed without the sensitive witness information.

While the court reels over the leaks, burned investors are angry about another issue: the judge’s decision to seal the racketeering charge — including Sater’s sentence.

Altschul, the lawyer for dozens of Trump tower buyers, said investors were deprived of knowing a key member of the development team had been steeped in financial crime with the mob.

“Do you honestly think they are going to invest in a project when you tell them that one of the people happens to have been involved with the mob? That’s insane,” he said.

Not only is the issue before the Supreme Court, but motions have been filed — including one by The Miami Herald — with the court in Brooklyn to unseal the docket.

The practice of concealing cases is banned in the federal court circuit that includes Florida.

Cassell, the former federal judge in Utah and now a law professor, said he will continue to raise the issue before Congress. “To hide an entire case, it’s [wrong],” he said.

“In my 5 1/2 years on the bench, I never buried a case. We’re talking about victims who have a right to know what has happened in their case. You have a right to know the [defendant’s] sentence in a case… It raises profound questions about how our judicial system is structured.”

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