In response to evasive maneuvers to avoid Don, Don Jr & Ivanka testifying in New York’s civil suit over alleged fraudulent property valuations at Trump Org, NY Attorney General Letitia James filed a preliminary determination of fraud in her ongoing investigation in order to compel testimony.
“For more than two years, the Trump Organization has used delay tactics and litigation in an attempt to thwart a legitimate investigation into its financial dealings,” said Attorney General James. “Thus far in our investigation, we have uncovered significant evidence that suggests Donald J. Trump and the Trump Organization falsely and fraudulently valued multiple assets and misrepresented those values to financial institutions for economic benefit. The Trumps must comply with our lawful subpoenas for documents and testimony because no one in this country can pick and choose if and how the law applies to them. We will not be deterred in our efforts to continue this investigation and ensure that no one is above the law.”
The Office of the Attorney General (OAG) statement late today detailed some of the preliminary findings. By revealing some of the potentially illegal activity, AG James is forcefully responding to Team Trump’s claims that the investigation is only ‘a partisan witch hunt’. Here are some of the bullet points from the OAG press release.
- Misstated objective facts, like the size of Mr. Trump’s Trump Tower penthouse;
- Miscategorized assets outside Mr. Trump’s or the Trump Organization’s control as “cash,” thereby overstating his liquidity;
- Misstated the process by which Mr. Trump or his associates reached valuations, including deviations from generally accepted accounting principles in ways that the statements did not disclose;
- Failed to use fundamental techniques of valuation, like discounting future revenues and expenses to their present value, or choosing as “comparables” only similar properties in order to impute valuations from public sales data;
- Misstated the purported involvement of “outside professionals” in reaching the valuations; and
- Failed to advise that certain valuation amounts were inflated by an undisclosed amount for brand value.
Moreover, the OAG investigation has found and described examples on seven different Trump owned properties of the following “misrepresentations”, saving many millions of dollars in lower taxes, favorable loans and lower insurance premiums.
- Misrepresentations to banks & insurers for loans & to meet coverage requirements
- Misrepresentations to insurers to lower premiums
- Misrepresentations to the IRS for tax deductions and to lower appraisals
Here are the ‘properties’ in question.
1) Seven Springs, a 212 acre NY potential luxury home development property in wealthy Westchester County
2) Trump Tower Triplex, the family apartment in Trump Tower on 5th Avenue in NYC
3) Trump International Golf Club Scotland
4) Despite promises not to include brand value, the investigation found a misleading “undisclosed added brand premium” for golf & club properties.
5) Trump National Golf Club Westchester
6) Trump Park Avenue
7) 40 Wall Street, a leasehold on a property not owned by Trump, but valued at several hundred million dollars depending on who asked.
AG James makes the case for both Jr and Ivanka testifying by noting that Don Jr “certified” annual statements of assets and that Ivanka “negotiated and secured financing” for the properties and was primary contact with Deutsche Bank. Their testimony is needed, because the investigation is ongoing. Hat tip to Michael Cohen.
Wednesday, Jan 19, 2022 · 6:47:41 AM +00:00 · CorpFlunky
MSNBC report helps explain that Trump, Jr & Ivanka need to be deposed because they’re being investigated for making or approving fraudulent financial statements, but that it’s complicated because of the ongoing criminal investigation.