court if he chooses to do so.
The allegations made by the New York attorney general’s office are significant, as they suggest that Donald Trump and his organization intentionally inflated their net worth in order to deceive banks and insurers. The attorney general’s office claims that this deception allowed Trump to receive favorable loan terms and insurance rates, benefiting financially from the inflated asset values.
The attorney general’s office also argues that their valuation and accounting experts have determined that Trump’s net worth during the period of 2011-2021 would be significantly lower than what was stated, potentially by as much as $2.2 billion in 2014 alone. They assert that if Trump’s properties were actually valued through professional appraisals, his net worth would likely be considerably less than the stated amount.
Trump’s lawyers have responded by filing a motion to dismiss the case, arguing that the Trump Organization’s financial statements were not misleading. They claim that the statements contained caveats explaining that they were unaudited and departed from Generally Accepted Accounting Principles. Additionally, they argue that there was no intent to defraud lenders or insurers.
The judge is expected to rule on the motions just before the trial begins in October. Trump and his lawyers have denied any wrongdoing and maintain that the financial statements were accurate.
This civil fraud lawsuit is just one of several legal challenges that Trump is currently facing. The trial could last up to six weeks, and it will be followed by other civil and criminal trials involving the former president. While Trump is not required to attend the fraud trial, he may choose to testify if he wishes.
These allegations and legal proceedings further contribute to the ongoing scrutiny surrounding Trump’s financial dealings and raise questions about his credibility and honesty. The outcome of the trial will have significant implications for Trump and his reputation.Donald Trump and the Trump Organization are facing new allegations of inflating the former president’s net worth by as much as $2.2 billion in one year. Lawyers for the New York attorney general’s office made the claims as part of their civil fraud lawsuit against Trump, his adult sons, and the Trump Organization. The attorney general’s office stated that when correcting the Trump financial statements for alleged misvaluations, it “reduces Mr. Trump’s net worth by between 17-39% in each year, or between $812 million to $2.2 billion, depending on the year.” The largest disparity of $2.2 billion occurred in 2014, according to the state.
New York Attorney General Letitia James, a Democrat, made the new allegations public in a partial summary judgment motion. The attorney general’s office argued that “defendants presented grossly and materially inflated asset values” in the statements of financial condition and used them to defraud banks and insurers in business transactions. They claimed that the documents provided “no shred of doubt” that Trump’s asset values did not reflect their true worth.
In a recently released deposition, Trump testified that he had “very little, if any” involvement in preparing the financial statements. His lawyers responded to the allegations by filing a court motion to dismiss the case, asserting that the Trump Organization’s financial statements were not misleading.
The attorney general’s office stated that their valuation and accounting experts determined that Trump’s net worth between 2011 and 2021 would be no more than $2.6 billion, significantly less than the stated net worth of up to $6.1 billion. They accused Trump and others of making false or misleading financial statements and benefiting from inflating his assets to receive favorable loan terms and insurance rates.
Both Trump and his lawyers have denied any wrongdoing. They argued that there was no intent to defraud lenders or insurers and that the financial statements contained caveats explaining that they were unaudited and departed from Generally Accepted Accounting Principles.
The judge is expected to rule on the motions just before the trial, which is set to begin in October. The lawsuit seeks $250 million in damages and aims to permanently bar Trump and his sons from serving as officers or directors of any business registered in New York state. It also seeks to block them from engaging in any new real estate transactions for five years.
The outcome of the trial will have significant financial implications for Trump and his family. While Trump will not be required to attend the fraud trial as it is a civil case, he could testify in his defense. The lawsuit alleges that Trump, his adult sons, and the Trump Organization enriched themselves by inflating the value of various properties, including Trump’s triplex apartment at Trump Tower, Mar-a-Lago, and multiple golf courses.
This story has been updated with additional developments.
How has the attorney general’s office determined that Trump’s net worth during the period of 2011-2021 would be significantly lower than what was stated?
Position for summary judgment, the attorney general’s office emphasized their valuation and accounting experts’ determination that Trump’s net worth during the period of 2011-2021 would be significantly lower than what was stated. They alleged that if Trump’s properties were actually valued through professional appraisals, his net worth would likely be considerably less than the stated amount.
Trump’s lawyers, on the other hand, have filed a motion to dismiss the case, asserting that the Trump Organization’s financial statements were not misleading. They argued that the statements contained caveats explaining that they were unaudited and deviated from Generally Accepted Accounting Principles. Furthermore, they claimed that there was no intent to defraud lenders or insurers.
A judge is expected to rule on the motions just prior to the trial commencing in October. Trump and his legal team have repeatedly denied any wrongdoing and maintained the accuracy of the financial statements.
This civil fraud lawsuit is just one component of the numerous legal challenges Trump is currently facing. The trial, projected to last up to six weeks, will be followed by other civil and criminal trials involving the former president. While Trump is not obliged to attend the fraud trial, he retains the option to testify if he desires.
These allegations and legal proceedings continue to deepen the scrutiny surrounding Trump’s financial dealings, pushing his credibility and honesty into question. The outcome of the trial will bear significant consequences for Trump and his reputation.
This just adds to the growing list of legal troubles for Trump.
The truth always finds its way, no matter how high the net worth claims may be.