DALLAS — Before taking office, Donald Trump pledged that his business empire would forgo new deals abroad while he was president. But as the Trump Organization unveils a new brand of hotels, that promise is not preventing the company from bringing foreign deals home.
The company, now largely run by Trump’s eldest sons, Eric and Donald Jr., has been pursuing a downtown Dallas hotel project with a real estate firm that has deep Turkish roots. The hotel, if built, would fall under the Trump Organization’s Scion chain, a more affordable alternative to its five-star luxury line.
An examination by The New York Times of records including corporation registrations, private e-mails, and archived websites found that Alterra Worldwide, the real estate firm that would own the hotel and be partners with the Trumps, has business ties in Russia, Kazakhstan and at least two dozen other countries. Ordinarily, such international experience would be a selling point for the firm, but it is a complicating factor when dealing with Trump’s company, where concerns already have been raised internally about some of Alterra’s foreign connections.
These revelations show that as the Trump Organization rolls out its new hotel line across the country — properties that the Trumps will manage and their partners will own — a partnership with Alterra may invite the foreign entanglements and potential conflicts of interest that the company said it sought to avoid in its international dealings.
Alterra’s president, Mukemmel Sarimsakci, is a familiar face in Dallas, where he has recruited foreign investment to other developments that earned praise from city officials. Sarimsakci — who goes by Mike, or, alternatively, the “Turkish Trump’’ — is also listed on an expert consultant website charging $465 an hour for advice on doing business in such countries as Iran, Mexico, and Nigeria.
His brother and longtime business partner, Yusuf Sarimsakci, has helped oversee developments around the world, including the Ritz-Carlton in Moscow near the Kremlin, the hotel where Trump stayed in 2013 while his Miss Universe pageant came to town. On that project, Yusuf worked with a wealthy Kazakh businessman who has ties to the strong-arm leader of that country.
“For construction, we do business in Russia, Kazakhstan, and Iraq, and we have a big office in Istanbul,’’ Mike Sarimsakci said in 2015 at a startup event in Texas, adding, “And that’s run by my brother, my partner.’’
The Times’ review of Alterra’s international business dealings also found that Yusuf had worked with an array of companies based in corporate secrecy and tax havens like the British Virgin Islands, a revelation from the vast leak of legal and financial documents known as the Panama Papers.
The Times’ examination found that Alterra and its associates have done business in countries that have complex and tense relations with the United States — including Turkey, which has become a vexing place for the Trump administration. (Sarimsakci did not answer questions about his opinions on Turkish politics, though posts on Twitter from 2015 show some support for the government of President Recep Tayyip Erdogan.)
In January, Trump and his lawyers announced his ethics plan, which included putting his business in a trust managed by his two eldest sons and an executive, while also appointing an outside ethics adviser and a chief compliance counsel to review potential deals.
The potential partnership with Sarimsakci’s firm has not yet cleared those ethical hurdles, and lawyers scrutinizing the deal have privately raised concerns about some of the foreign connections, including Yusuf’s ties to Russia, according to a person briefed on the matter but who was not authorized to speak publicly about Trump Organization business.
It is possible that the deal will proceed only if Sarimsakci agrees to restrictions on his partners and the funding of the deal. The vetting process is iterative, allowing the Trump Organization to restructure deals if the ethics officer raises concerns.
In an interview, Eric Danziger, the chief executive officer of the Trump Organization’s hotel operation, said that the company had signed letters of intent with Sarimsakci and about 30 other partners across the country, but that there were no final contracts or guarantees. Of all those partners, Sarimsakci is the only one who has been publicly confirmed, as he has trumpeted the potential deal in the local news media.
In drafting his presidential ethics policy, Trump gave extra consideration to international dealings, given the emoluments clause of the Constitution banning federal employees from accepting gifts from foreign leaders or governments. He pledged that profits made from foreign governments at existing Trump hotels would be donated to the US Treasury.
Projects in the United States, even those funded with foreign money, arguably pose less of a reputational and ethical threat to the company and the president because they would be subject to local laws and regulations. Even so, once foreign money is involved, it can be difficult to trace its origins.
Mike Sarimsakci has been quoted in the Dallas Business Journal saying that the deal would be financed by his family and business associates in Turkey and Kazakhstan. In recent statements to The Dallas Morning News, which has chronicled Sarimsakci’s legal and business difficulties in the United States, he backed away from those claims and said the money would come only from him and two US partners. He declined to elaborate to The Times.
A savvy self-promoter, Sarimsakci has a good deal in common with Trump: He briefly operated a business investment seminar program and he values appearances. Like the president, he has political interests and promotes his global influence.
While Sarimsakci has said that he hopes to work on Scion hotels in a number of cities, Dallas appears to be first.