Freehold Music Center: Piano Dealer Forced to Accept 70 Cents on the Dollar for Trump Taj Mahal Supply Contract
Tier 3Resolved1989-01-01 to 1990-12-31
Factual Summary
In 1989, J. Michael Diehl, owner of the Freehold Music Center in Freehold, New Jersey, was contracted to supply approximately $100,000 worth of grand and upright pianos to the Trump Taj Mahal casino in Atlantic City. It was one of the largest single sales in the store's history.
After delivering the pianos, Diehl attempted to collect payment. His calls to the Trump Organization went unanswered for weeks. Approximately a month after delivery, he received a letter from the Trump corporation stating that the casino was short on funds and would pay only 70 percent of the agreed amount.
Diehl, a small business owner who lacked the resources to sue the Trump corporation, accepted approximately $70,000 and absorbed a $30,000 loss. The lost revenue had a significant impact on Diehl and his family, as he still needed to pay his own piano suppliers for the instruments he had delivered.
The Trump Taj Mahal opened in April 1990 and filed for bankruptcy in 1991, having been financed with $900 million in high-yield bonds. Diehl's account later appeared in a Hillary Clinton campaign advertisement highlighting Trump's treatment of small business contractors. Bruce Springsteen, who had rented his first guitar from the Freehold Music Center as a teenager, publicly criticized Trump over the incident, calling him a "bastard."
Primary Sources
1. Diehl's firsthand account reported by NJ101.5: "Freehold Music Center owner: Trump stiffed me for $30,000," September 2016: https://nj1015.com/freehold-music-center-owner-trump-stiffed-me-for-30000/
2. Philadelphia Inquirer: "I sold Trump $100K worth of pianos for his Atlantic City casino. Then he stiffed me," September 2016: https://www.inquirer.com/philly/news/politics/presidential/Donald-Trump-pianos-Atlantic-City-Taj-Mahal-casino-presidential.html
3. CBS News: "Store owner who rented Bruce Springsteen his first guitar claims Donald Trump stiffed him," September 2016
Corroborating Sources
1. The Week: "This music store owner sold Trump $100,000 worth of pianos. Trump refused to pay," September 2016
2. Washington Monthly: "Trump and the Faces of the Bilked," September 2016
3. Patch (Freehold): "Trump Cheated Me: Freehold Piano Store Owner Refutes Candidate's Bad Job Claim," September 2016
Counterarguments and Context
The Trump Organization has not publicly disputed Diehl's specific account. The general defense offered in similar contractor disputes was that the Taj Mahal casino was experiencing financial difficulties, which is supported by its 1991 bankruptcy filing. However, the financial distress of the casino does not address the fact that the contract was honored by the vendor and that the payment reduction was imposed unilaterally after delivery was complete. Diehl himself has stated he did good work and fulfilled the contract in full.
Author's Note
This entry is classified as Tier 3 because it rests on Diehl's consistent, detailed public account rather than adjudicated court records. The Freehold Music Center was a well-known local institution. Diehl's account has been reported across multiple outlets and has not been contradicted. The Taj Mahal's practice of imposing retroactive payment reductions on small vendors is consistent with the broader pattern documented across Trump's Atlantic City operations.