Alex Schnaider
20/06/17 11:23
Is a Russian-born, Jewish Canadian billionaire and co-founder of Midland Resources Holding Inc. with his long time business partner Eduard Shifrin, a Ukrainian billionaire. In 2016, Shifrin, a Ukrainian citizen received Russian citizenship by the personal decree of Vladimir Putin. Midland Resources is an off-shore company that trades Ukrainian steel and operates office buildings and casinos in Moscow.
Another of Alex Schnaider’s enterprises is Talon International, co-owned by Schnaider and Val Levitan (another Russian Canadian who made his fortune in gambling). Talon went into business with Donald Trump in 2004 to build Trump Tower Toronto. The project was initially a joint venture estimated to cost $367 million where Trump would manage hotel operations and Talon International would focus on the development. Neither Schnaider or Levitan had experience in hotel operations or construction.
By the time Trump Tower Hotel Toronto opened in 2012, it was on the verge of collapse. A bad economy, delays in construction, overpriced units, a questionable business model and buyers lawsuits plagued the project. Investors bought condos in the tower that would be rented out as hotel rooms. They claim they were promised high returns on their investments and were given the impression Trump was building the hotel. The project entered into insolvency proceedings in November 2016 and was recently sold for $220 million to a San Diego based investment firm.
Alex Schnaider’s partnership with Donald Trump is under scrutiny as the financial relationship provides a direct tie between Trump and funding from the Russian government. VEB (Vnesheconombank) bank bought $850 million of stock of Midland Company, owned by Alex Schnaider. They bought shares of his company originally worth $70 million at just the time Trump Towers was under construction. Vladimir Putin was chairman of VEB’s supervisory board and some of the proceeds of that sale were injected into the hotel construction at a “key moment for the project.”
From the Wall Street Journal: “After Mr. Shnaider and his partner sold their stake in the steelmaker, Mr. Shnaider injected more money into the Trump Toronto project, which was financially troubled. Mr. Shnaider’s lawyer, Symon Zucker, said in an April interview that about $15 million from the asset sale went into the Trump Toronto project. A day later, he wrote in an email: ‘I am not able to confirm that any funds’ from the deal ‘went into the Toronto project.'”
VEB has been under US sanctions since 2014 after Russia invaded Crimea. The Trump Organization has distanced itself from the project claiming it”merely licensed its brand and manages the hotel and residences.”
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