Former President Donald Trump Faces Allegations of Overstating Net Worth
Former President Donald Trump has been accused of routinely exaggerating his net worth by more than $2 billion, according to a court filing by the office of New York Attorney General Letitia James. The court filing, which was made on Wednesday, reveals that Trump’s real estate holdings were valued significantly less than what he had claimed during those years.
The attorney general’s office submitted the numbers as part of a motion for summary judgement, seeking to resolve a civil fraud claim before the $250 million civil suit against Trump proceeds to trial.
In an April deposition that was made public on Wednesday, Trump referred to his real estate portfolio as the “Mona Lisa of properties” and argued that the quality of his properties, such as Turnberry in Scotland, could fetch much higher prices than their actual valuations. Trump compared it to selling a painting that doesn’t generate income but sells for a significant amount.
During the deposition, Trump responded to hours of questioning about his real estate holdings, claiming that they were worth considerably more than their appraised values. He mentioned properties such as Mar-a-Lago, his assets in Europe, and Trump Towers, citing their prime locations and asserting that he owned “some of the greatest pieces of property in the world.”
Attorney General James filed a $250 million lawsuit against Trump, his children, and his company last year, alleging that they had inflated Trump’s net worth by billions of dollars and deceived lenders and others through false and misleading financial statements. Trump has maintained his innocence and accused James, who is Black, of racism.
The trial is scheduled to begin in October.
One example cited in the filing by the attorney general’s office relates to Trump’s statements of financial condition in 2014, where he claimed to hold $6.7 billion in assets. However, the office argued that Trump’s actual net worth was overestimated by more than $2.2 billion that year.
The court filing also highlighted the valuation of Trump’s Mar-a-Lago estate in Florida, stating that he valued it as a private single-family residence worth between $347 million and $739 million, disregarding the limitations on development rights. In contrast, Palm Beach County assessed the property’s market value based on its restricted use as a social club, valuing it between $18 million and $27.6 million.
Additionally, the attorney general’s office accused Trump of inflating the value of his golf clubs by attaching a “brand premium” of 15-30%. Trump was also alleged to have inflated the value of unsold condominium units at Trump Park Avenue in New York City and misrepresented the value of rent-stabilized apartments.
The filing also highlighted the overvaluation of two apartments leased by Trump’s daughter, Ivanka Trump, which were priced two to three times higher than the contractual option to purchase the units.
Trump’s legal team is expected to challenge the motion for summary judgement.
In his April deposition, Trump claimed that he delegated most business decisions to his adult children while he was president. He stated that he was too occupied to manage the company and wanted to avoid potential conflicts of interest. Trump further disclosed that he directed Donald Trump Jr. and Eric Trump to solely focus on existing properties instead of pursuing new real estate deals.
While boasting about his golf courses and other properties, Trump declared having $400 million in cash reserves, although he acknowledged that his legal expenses were mounting.
As the legal battle between Trump and the New York Attorney General’s office continues, the former president maintains his confidence in his assets and the value of his company.