Business

NY AG investigation suggests Trump business misrepresented asset values ​​for years

Former US President Donald Trump speaks during a rally at the Iowa State Fairgrounds in Des Moines, Iowa on October 9, 2021.

Rachel Mammy | Reuters

The New York Attorney General’s investigation of the Trump Organization “uncovered substantial evidence” that the company’s financial statements for more than a decade were based on misleading estimates of its real estate assets, the office said in a statement Tuesday. in a court statement.

These potentially misleading estimates “and other misrepresentations” were used “to obtain economic benefits, including loans, insurance coverage and tax deductions, on terms more favorable than the true facts justified,” the office said in a statement.

According to AG Letitia James, Trump Organization CFO Allen Weisselberg and Comptroller Jeffrey McConnie “played a role in the financial reporting at a key juncture in this investigation.”

The attorney general said Weisselberg and McConnie were among more than 40 witnesses interviewed in the investigation.

The filing comes in response to an appeal by the Trump Organization and former President Donald Trump against a judge’s ruling last month that Trump and his two adult children, Donald Trump Jr. and Ivanka Trump, were to be sworn in for interviews with James investigators. ‘ office.

James has been investigating a business owned by former President Donald Trump for several years.

The investigation began following sworn testimony from Trump’s former personal lawyer, Michael Cohen.

Cohen told Congress that the Trump organization gave different valuations to the same property in order to get better terms on loans and insurance, as well as lower taxes.

James’s office reported in February that Mazars, a longtime accounting firm with the Trump Organization, fired the company as a client after saying a decade of Donald Trump’s financial statements “can no longer be relied upon.”

In her Tuesday statement, James begins by noting that she is investigating “potential misstatements or omissions in financial statements that describe the assets” of Trump’s company.

“To date, the investigation has uncovered significant evidence potentially indicating that for more than a decade these financial statements have been based on misleading asset estimates and other misstatements,” the statement said.

This is the latest news. Please stay tuned for updates.


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