Trump overvalues ​​Mar-a-Lago estate, lies about net worth to buy Doral: New York attorney general

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PALM BEACH, Florida. – A lawsuit filed by the New York Attorney General claims former President Donald Trump overvalued his $75 million Mar-a-Lago property in Palm Beach County to $739 million for lying about its value net.

Attorney General Letitia James announced the $250 million lawsuit filed in New York State Civil Court on Wednesday, alleging a fraudulent scheme to deceive lenders, insurers and tax authorities.

“To say that you have money that you don’t is not the art of the transaction. It’s the art of theft,” James said in reference to Trump’s 1987 book.

Trump released a statement referring to the civil case as “another witch hunt” and to James, who is black and a Democrat, as “racist.”

Donald Jr., Ivanka and Eric Trump, as well as Trump Organization leaders Allen Weisselberg and Jeffrey McConney, are also charged in the lawsuit.

MAR-A-LAGO

FILE – Former President Donald Trump’s Mar-a-Lago estate is seen in Palm Beach, Fla., December 24, 2017. (AP Photo/Carolyn Kaster, File) (Copyright 2017 The Associated Press. All rights reserved.)

James accused the defendants of excluding the limitation that the Mar-a-Lago property was to be used only as a club and other factors when valuing the property from 2011 to 2021.

“All appraisals for this property were false and misleading,” James wrote, adding that in a filing to local authorities, Trump had described the estate as a “white elephant” that was “impossible to sell” as a private residence and had to be “preserved” by club members.

James alleged that Trump also wanted a tax benefit for “historic preservation” with limitations on changes without approval from the National Trust for Historic Preservation.

James said the property’s fraudulent valuation considered it ‘unrestricted residential land’, added to its alleged value as a Trump-branded club, ‘falsified the price per square footage figure’ and used ‘asking prices’. ” instead of ” actual sales.

DORAL

FILE – In this Nov. 20, 2019, file photo, the entrance to the Trump National Doral Resort is shown in Doral, Fla. (AP Photo/Wilfredo Lee, file) (Copyright 2019 The Associated Press. All rights reserved)

James alleged that Trump used the false financial disclosure statements to secure the extension of a $125 million loan or combination of loans from Deutsche Bank, as part of the purchase of Trump National Doral in Miami-Dade County.

The lawsuit accused Ivanka Trump of using the information to negotiate the loan on the Trump Organization’s property to Doral. Initially, in 2011, the bank described the Doral property as a “difficult asset”, according to the lawsuit.

The loan for the Doral property was closed in 2012 and it was outstanding until May, when the Trump Organization refinanced it through Axis Bank, according to the lawsuit.

James said Trump also used the Doral property for the so-called “inter-affiliate deal” scheme to “significantly inflate” Trump Organization values ​​to provide “false and misleading statements about financial status.”

Associated document: Here is the 222-page lawsuit and attachments (PART 1 & PART 2)

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Read the statements

New York Attorney General Letitia James speaks during a press conference, Wednesday, Sept. 21, 2022, in New York City. (AP Photo/Brittany Newman) (Brittany Newman)

Attorney General

PALM BEACH

The Mar-a-Lago property was valued at $739 million based on the false premise that it was unrestricted property and could be developed and sold for residential purposes, even whether Mr. Trump himself has signed deeds donating his residential development rights, severely limiting changes. to the property and limiting the permitted use of the property to a social club. In reality, the club generated annual revenues of less than $25 million and should have been valued at over $75 million.

MIAMI DADE

The Trump Organization signed a $150 million buy-and-sell agreement for Trump National Doral in 2011. Mr. Trump’s statements were used to secure a $125 million loan from Deutsche Bank and were regularly submitted to the bank to meet Mr. Trump’s financial reporting requirements. as guarantor of the loan. In several instances, the loan agreement required Mr. Trump to certify the truth and accuracy of his statements as a condition of the loan’s security and covenants.

ASSET

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