TRUMP’S FRAUDULENT CLAIMS TO BANKS, INSURERS AND OTHER FINANCiERS
https://www.documentcloud.org/documents/23991865-trump-ny-fraud-ruling
In securing a loan from a bank, insurance coverage or other financial assistance, Donald Trump, like the rest of us, must submit a Statement of Financial Condition. Although his buildings were appraised at current fair market value, he instead submitted statements inflating their values at many times their worth, in order to get more favorable loan terms and other financial assistance from banks and other financiers.
Trump Tower Apartment, Trump’s New York City residence is just under 11,000 square feet. He claimed on his Statement of Financial Assistance it was 30,000 square feet resulting in an overvaluation of $144 to $211 million. Trump’s overvaluation above the appraised value was 300%.
Trump’s Seven Springs Estate was independently appraised over the years from 2000 to 2016 at a value of $25 million increasing to $56 million. From 2011 to 2014, Trump claimed $261 million, increasing to $291 million over the years 2011-14 on his Statements of Financial Condition. Trump’s overvaluation above the appraisal was 400%.
Trump Park Avenue comprises both rent controlled and non-rent-controlled apartments. Trump inflated the appraised value of the rent-controlled apartments by 700% in 2014 and by 64% in 2020 on his Statements of Financial Condition.
Trump 40 Wall Street is a building where Trump owns the ground lease. The appraised value was $200-220 million. Trump claimed $525-$540 million in his Statements of Financial Condition. The overvaluation was more than double.
Trump Mar a Lago is a social club in Palm Beach that is restricted by deed and agreed upon restrictions for use as a“social club”. It was appraised at a value ranging from $18 to 28 million between 2011 and 2020. Trump claimed its valuation was from $426 to $612 million in his Statements of Financial Condition during that time frame. He inflated its value by 2300%
There are a variety of other vast variances between the fair market assessments of the value of Trump’s Golf Courses and their undeveloped lands and Trump’s claims of their value on his Statements of Financial Conditions to his creditors and other financiers.
The trial court judge issued a partial summary judgment against Trump on the first two of nine causes of action. Summary judgment is a judgement before trial and means that assuming all the disputed facts and law in favor of Trump, he still loses the case. This is the equivalent of an open and shut case. The trial court judge must decide remedies; he is appointing a receiver and canceling Trump’s certificates to do business in New York. At trial, he will have to decide the issue of disgorgement – i.e. a return of illicit profits, for example, let’s assume that Trump paid 2% interest on his loans because he was a great risk with lots of assets, but if you subtract all the property overvaluations, he would be an average risk and pay 6% interest. He may have to “disgorge” the difference – i.e. pay back an extra 4% on his loans over a decade.