Donald Trump Accused of Inflating Net Worth by Billions
Lawyers for the New York attorney general’s office have alleged that Donald Trump inflated his net worth by as much as $2.2 billion in one year. This comes as part of their civil fraud lawsuit against the former president, his adult sons, and the Trump Organization.
Allegations of Misvaluations
The attorney general’s office revealed that Trump’s net worth reduces 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 was alleged to have occurred in 2014.
- The allegations were made in a partial summary judgment motion by New York Attorney General Letitia James.
- The office argues that the Trump financial statements were grossly inflated and used to defraud banks and insurers in business transactions.
- Trump’s lawyers have responded by asserting that the statements were not misleading and are calling for the case to be dismissed.
Newly Released Deposition
A newly released deposition from the case reveals that Trump testified to having “very little, if any” involvement in preparing the financial statements. Trump’s lawyers argue that this supports their claim that the statements were accurate and not misleading.
Valuation and Accounting Experts
The attorney general’s office states that their valuation and accounting experts believe Trump’s net worth during 2011-2021 was no more than $2.6 billion. The office is asking the judge to find that Trump and others made false or misleading financial statements and benefited from inflating assets to receive favorable loan terms and insurance rates.
- The judge is expected to rule on the case just before the trial.
- Trump and others involved have denied any wrongdoing.
Trump’s lawyers argue that there was no intent to defraud lenders or insurers as the statements contained caveats and departure from Generally Accepted Accounting Principles. They cite testimonies from Rosemary Vrablic of Deutsche Bank and David Miller of Erie Insurance to support their argument.
Trump’s Deposition Testimony
Under oath, Trump distanced himself from preparing the financial statements and claimed that his involvement was minimal. He stated that the numbers were primarily prepared by his former CFO, Allen Weisselberg.
The $250 million lawsuit is set to go to trial in October, where Trump may testify in his defense. The outcome of the trial could have significant financial consequences for Trump and his family. New York Attorney General Letitia James is seeking financial damages and to permanently bar Trump and his sons from certain business activities.
The allegations against Donald Trump regarding the inflation of his net worth have raised concerns about his financial practices. The upcoming trial will shed further light on these claims and determine the legal consequences for all parties involved.
This story has been updated with additional developments.