Former US President Donald Trump is alleged to have inflated his net worth by as much as $2.2 billion in a single year, according to a report by CNN citing New York Attorney General Letitia James’ office. This allegation is part of a civil fraud lawsuit against Trump, his adult sons, and the Trump Organization.
Over a span of 10 years, the attorney general’s office revealed that upon correcting Trump’s financial statements for suspected misvaluations, his net worth was adjusted downwards by 17% to 39% each year, translating to a reduction ranging from $812 million to $2.2 billion, depending on the specific year.
The most substantial disparity of $2.2 billion was identified in 2014. The office asserted that the evidence was so compelling that a trial wasn’t necessary to determine that the defendants had significantly inflated asset values in financial statements and then utilized these statements in business dealings to deceive banks and insurers.
Despite the involvement of 13 experts on the defendants’ side, the office emphasized that the core of the case relied on documents, which overwhelmingly demonstrated that Trump’s statements of financial condition did not remotely represent the accurate value of his assets as they would be assessed by informed market participants.
The office’s valuation and accounting experts concluded that Trump’s actual net worth between 2011 and 2021 would not exceed $2.6 billion, in contrast to the claimed net worth of up to $6.1 billion.
Trump and the other defendants in the case have denied any wrongdoing. In response to the allegations, Trump’s legal team argued that the financial statements of the Trump Organization were not misleading and that loan payments were consistently met.
Trump’s lawyers emphasized that the record unmistakably showcased that his companies diligently fulfilled interest payments to lenders, never defaulted on loans, and maintained punctual repayment throughout the entire period under scrutiny by the New York Attorney General’s office.
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