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NY AG probe suggests Trump business misstated asset values for years


Donald Trump, former President of the United States, speaks at a rally held at Iowa States Fairgrounds, Des Moines, Iowa on October 9, 2021.

Rachel Mummey via Reuters| Reuters

According to a Tuesday court filing, New York Attorney General Office said that it has found “significant evidence” that Trump Organization’s financial statements were based on false valuations of real estate assets.

Those potentially misleading valuations “and other misrepresentations” were used “to secure economic benefits — including loans, insurance coverage, and tax deductions — on terms more favorable than the true facts warranted,” the office said in the filing.

The filing of AG Letitia James states that the Trump Organization Chief Financial Officer Allen Weisselberg, and Controller Jeffrey McConney both “played roles in creating the financial statements as the crux for this investigation.”

McConney, Weisselberg, and McConney were both interviewed as witnesses in the probe.

This was in response to Trump Organization’s appeal against a judge’s decision last month that Trump Jr. and Ivanka Trump had to give interviews under oath to James’ investigators.

James spent many years investigating the company owned by Donald Trump.

Trump’s former lawyer Michael Cohen gave sworn testimony.

Cohen informed Congress that Trump Organization provided different valuations of the same properties to increase their chances for getting loans or insurance at lower rates, as well as to reduce taxes.

James’s office disclosed February that Trump Organization’s long-time accounting firm MazarsAfter stating that 10 years worth of financial statements regarding Donald Trump’s financial situation “should not be trusted”, he had dismissed the company from its client list.

James began Tuesday’s filing by noting she was investigating “potentially misrepresentations and omissions” in Trump’s financial statements.

According to the filing, “So far, we have found substantial evidence that could indicate that financial statements used misleading asset valuations and misrepresentations over more than a decade.”

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