SEC May Penalize Trump Hotels For Misreporting Monetary Transaction

NEW YORK Trump Hotels and Casino Resorts may be sanctioned by the Securities and Exchange Commission. The SEC contends a third quarter earnings statement issued by Trump Hotels last October was misleading in that it reported a $17 million transaction as part of ongoing operations rather than a onetime gain. The transaction concerned the acquisition of the All-Star Cafe by Trump from Planet Hollywood in 1999. It was recorded as a beneficial book-keeping gain of $17 million but Trump Hotels indicated in a press release that it was part of ordinary revenues. It should have been disclosed as one-time gain under SEC regulations. The SEC has yet to file any formal action, but its Northeast Regional Office might seek authority for fines against the company and its chief executive and financial officer at the time. (8/16/00) SOURCE: The Star Ledger- Newark, NJ