Reliable sources in Panama City have disclosed that the real reason that the former American securities trader, Gary James Lundgren, refused to open his brokerage books of account to FINRA investigators, because he could not satisfactorily account for the source of funds he used to reportedly purchase approximately $33m in construction bonds, the proceeds of which were originally used to build the Trump Ocean Club.
The bonds, which were issued by the developer, Newland International Properties Corp., were for a total of $220m, and Lundgren, as the 15% owner, was the largest bondholder.
The bonds, which were held by the now-defunct Bear Stearns Companies,Inc., whose assets were purchased, as a deep discount, by JP Morgan Chase, were later sold to Lundgren for an undisclosed price. Lundgren is a longtime client of JP Morgan, and it has long been rumored that he often tendered payment in cash, when purchasing securities for clients.
It has been rumored that the sale, which was reportedly many millions, was also made for cash. Lundgren has been seen, in Panama's banks, toting large sacks of US Dollars, which were reportedly drug profits of the Medellín Cartel that he was charged with laundering, through securities purchases. He reportedly purchased many units, in the Trump Ocean Club, for clients.
Therefore, Gary Lundgren could not very well produce accounts and ledgers that showed cash purchases, without any Source of Funds information, to substantiate their origin. The Financial Industry Regulatory Agency, or FINRA, requested his records no less than five times, in connection with an investigation, and banned him, for life, from any securities matters, when he refused to comply. He would have further incriminated himself as a money launderer, had he released the bank account records of his companies.