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.
In a newly released deposition from the case, Trump testified that he had very little involvement in putting the financial statements together. He stated that the Trump Organization’s former chief financial officer, Allen Weisselberg, primarily prepared the numbers included in the statements, along with others working under him. Trump claimed that he paid little attention to the statements and relied on the hired accountants to ensure their accuracy.
The judge is expected to rule on the motions just before the trial begins in October. If the case proceeds to trial, it could last up to six weeks. Trump will not be required to attend the fraud trial, as it is a civil case, but he could choose to testify if he wishes.
These allegations and the upcoming trial add to the legal challenges that Donald Trump is currently facing. It is expected to be the first of several months of civil and criminal trials for the former president. The outcome of these trials could have significant implications for Trump’s reputation and future business endeavors.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 Trump’s net worth by between 17-39% each year, amounting to a disparity of $812 million to $2.2 billion, depending on the year. The largest discrepancy 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 there is no need for a trial as the evidence shows that the defendants presented grossly 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 leave no doubt that Trump’s financial statements do not reflect the true value of his assets.
In a recently released deposition, Trump testified that he had very little 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, however, stated that their valuation and accounting experts determined that Trump’s net worth would be no more than $2.6 billion between 2011 and 2021, significantly less than the stated net worth of up to $6.1 billion.
The attorney general’s office is seeking a ruling from the judge that Trump and others made false or misleading financial statements from 2011-2021 and benefited from inflating his assets to receive favorable loan terms and insurance rates. The judge is expected to rule on the motions just before the trial.
Both Trump and his lawyers have denied any wrongdoing, with the lawyers arguing that the financial statements were not misleading and that the Trump Organization never missed a loan payment. They also claimed that there was no intent to defraud lenders or insurers and that the statements contained caveats explaining that they were unaudited and departed from Generally Accepted Accounting Principles.
The lawsuit, which seeks $250 million in damages, is set to go to trial in October. It marks the beginning of several months of civil and criminal trials for the former president. While Trump will not be required to attend the fraud trial, he could testify in his defense. The outcome of the trial holds significant financial stakes for Trump and his family, as the attorney general’s office is also seeking to permanently bar Trump and his sons from serving as officers or directors of any business registered in New York state and block them from engaging in any new real estate transactions for five years. 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.
What are the potential consequences for Donald Trump if he chooses to testify in the fraud trial
That their experts have determined that the net worth of Donald Trump and his organization would be significantly lower than what was stated in the financial statements.
The judge is expected to rule on the motions just before the trial begins in October. If the case proceeds to trial, it could last up to six weeks. Trump will not be required to attend the fraud trial, but he could choose to testify if he wishes.
These allegations and the upcoming trial add to the legal challenges that Donald Trump is currently facing. It is expected to be the first of several months of civil and criminal trials for the former president. The outcome of these trials could have significant implications for Trump’s reputation and future business endeavors.
