(NewsNation) — New York’s attorney general sued former President Donald Trump, his company and his three eldest children for fraud on Wednesday, alleging the group lied about the value of various real estate assets to pay lower taxes and mislead investors. .
Between 2011 and 2021, state Attorney General Letitia James said Trump and his organization knowingly and intentionally “created more than 200 false and misleading asset valuations” in annual financial statements to “defraud financial institutions.” ”.
In all, prosecutors say Trump received nearly $250 million in benefits from the fraudulent activity.
The former president’s attorney responded to the lawsuit with a statement calling the allegations “political,” adding: “We are confident that our judicial system will not tolerate this unbridled abuse of authority, and we look forward to defending our client against each and every one of them.” the assertions without merit of the Attorney General”.
Here are some of the specific allegations outlined in the civil lawsuit:
used fake numbers to inflate assets
As just one example, the AG’s lawsuit says Trump misrepresented the value of his Trump Tower apartment by lying about the unit’s square footage on financial statements.
“Most of this fraudulently inflated value came from the misrepresentation in the years 2012 to 2016 that the apartment was 30,000 square feet when in fact the apartment was only 10,996 square feet. That grossly oversized size was then multiplied by an unreasonable price per square foot,” the lawsuit says.
ignored legal restrictions on properties
At Trump Park Avenue, a residential building in Manhattan, the former president allegedly misrepresented the value of several rent-stabilized apartments by appraising them at market rate.
“In 2011 and 2012, the 12 rent-stabilized units were collectively valued at $49,596,000, a rate 65 times higher than the $750,000 valuation for those units in the 2010 appraisal, which was based on
in their rent stabilized status.
Trump also lied about the value of his Mar-a-Lago property in Florida by ignoring development restrictions on the property, according to the lawsuit.
“The Mar-a-Lago club was valued at up to $739 million based on the false premise that it was unrestricted property and could be developed and sold for residential use, despite the fact that Trump himself signed deeds donating his ownership rights. residential development and restricting changes to ownership,” according to the lawsuit.
In reality, the Mar-a-Lago property should have been valued closer to $75 million, prosecutors say.
the cousin of the trump brand
Trump intentionally increased the value of his golf clubs by incorporating a “brand premium” despite saying brand value was not included in the calculations, investigators allege.
“In the 2013 Declaration, the value of Mr. Trump’s golf course in Jupiter, Florida, was further inflated by fraudulently adding 30% for the Trump ‘brand’,” according to the lawsuit.
Prosecutors say the same fraudulent brand premium appeared for six other golf clubs on the 2013 financial statement.
The suit alleges that Trump consistently misrepresented his cash holdings by including funds that were part of a partnership not under his control.
“In some years, these restricted funds accounted for nearly a third of all cash reported by Mr. Trump (for example, they accounted for $24 million of the total $76 million cash reported for 2018),” it read.
The investigation determined that Trump reported the cash as his own, even though he had no power to access it on his own.
Source : www.newsnationnow.com