New York prosecutors with the New York attorney general’s office have alleged that Donald Trump artificially inflated his net worth by a potential $2.2 billion within a single year. These claims were revealed as part of their civil fraud lawsuit against the former president, his adult sons, and the Trump Organization.
Over a span of ten years, the attorney general’s office asserts that upon rectifying Trump’s financial statements to account for alleged misvaluations, his net worth underwent a reduction ranging from 17% to 39% annually. This translates to an adjusted figure of $812 million to $2.2 billion per year, contingent on the specific year. Notably, the largest discrepancy of $2.2 billion was observed in 2014, as per the state’s assertions.
These fresh allegations were disclosed through a partial summary judgment motion made public by New York Attorney General Letitia James.
Supported by undeniable evidence, the attorney general’s office contends that a trial is unnecessary to conclude that the defendants intentionally exaggerated asset values in financial statements and then exploited these statements in business dealings to deceive financial institutions and insurers.
The office emphasized that despite the multitude of experts brought forward by the defendants, the core of the case rests on documented evidence. The provided documents allegedly leave no room for doubt that Trump’s financial statements significantly deviate from the actual market values of his assets as assessed by knowledgeable market participants.
“Based on the undisputed evidence, no trial is required for the court to determine that defendants presented grossly and materially inflated asset values in the (statements of financial condition) and then used those SFCs repeatedly in business transactions to defraud banks and insurers. Notwithstanding defendants’ horde of 13 experts, at the end of the day, this is a documents case, and the documents leave no shred of doubt that Mr. Trump’s SFCs do not even remotely reflect the ‘estimated current value’ of his assets as they would trade between well-informed market participants,” the attorney general’s office stated.
Valuation and accounting experts from the attorney general’s office have concluded that Trump’s net worth during any year spanning from 2011 to 2021 would not surpass $2.6 billion. This is in stark contrast to the stated net worth of up to $6.1 billion he reported. The office contends that the difference would likely be even more pronounced if his properties were evaluated through comprehensive professional appraisals.
James’ office is requesting the judge to find that Trump and his associates issued inaccurate or deceptive financial statements between 2011 and 2021. They allegedly gained advantages by overstating Trump’s asset values, leading to more favorable loan conditions and insurance premiums.
Trump and his associates have refuted these allegations, asserting their innocence. Trump’s legal team is scheduled to submit their motions for summary judgment, possibly by Wednesday. The judge’s decision on these motions is anticipated shortly before the commencement of the trial.