As per a report by CNN, during a span of ten years, the attorney general’s office stated that after rectifying the alleged inaccuracies in Trump’s financial records, his net worth is adjusted lower by a range of 17-39% each year.

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This correction results in a decrease ranging from $812 million to $2.2 billion annually, depending on the specific year. Notably, the largest discrepancy of $2.2 billion occurred in the year 2014, according to the state’s findings.

The report noted that the new allegations were made in a partial summary judgment motion made public Wednesday by New York Attorney General Letitia James, a Democrat.

Lawyers representing the New York attorney general’s office claimed in a civil fraud lawsuit against former President Donald Trump, his adult sons, and the Trump Organization that Trump artificially increased his net worth by up to $2.2 billion within a single year.

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In a recently disclosed deposition from the legal proceedings, Donald Trump stated that he had minimal, if any, involvement in the compilation of the financial depositions. In response, Trump’s legal team submitted a court document advocating for the dismissal of the case. They contended that the financial statements of the Trump Organization were not misleading.

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According to the attorney general’s office, their team of valuation and accounting experts concluded that Donald Trump’s net worth during any year from 2011 to 2021 should not exceed $2.6 billion. This valuation contrasts with the publicly stated net worth of up to $6.1 billion. The attorney general’s office further noted that if Trump’s properties were accurately appraised by professionals, his net worth would likely be significantly lower than the estimated amount.

Financial statements were not misleading

CNN said that Trump and his associates have refuted any allegations of misconduct. In a legal submission, Trump’s lawyers emphasized that the financial statements of the Trump Organization were not deceptive, and they highlighted that the organization consistently met its loan payment obligations. They contended that the attorney general’s lawsuit should be dismissed by the judge on the grounds that no parties suffered any harm as a result of the alleged actions.

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“The statements of financial condition at issue were simply not misleading. Therefore, the Defendants are entitled to summary judgment as a matter of law,” Trump’s attorneys wrote, adding, “The undisputed record further establishes his companies timely paid hundreds of millions of dollars in interest to their lenders and never defaulted on a loan or even been late on a loan payment during the entire 15+ year time period the NYAG has sought to scrutinize in this action.”

Trump’s legal team asserted that there was no deliberate intention to deceive lenders or insurers. They emphasized that the financial statements included disclaimers clarifying that they were not audited and deviated from Generally Accepted Accounting Principles (GAAP). David Miller, a former executive at Erie Insurance, testified that insurer Zurich “didn’t rely on asset valuations at all,” according to the Trump filing, CNN reported.

$250 million lawsuit scheduled for trial in October

The upcoming $250 million lawsuit is scheduled for trial in October, marking the beginning of an extended period encompassing both civil and criminal trials involving the ex-president. While Trump won’t be obligated to attend the six-week-long civil fraud trial, as it falls under a civil case, there’s a possibility that he might choose to provide testimony in his own defence.

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The financial consequences are substantial for both Trump and his family. Attorney General Letitia James is pursuing a claim of $250 million in damages. Additionally, her objective is to secure a permanent injunction preventing Trump and his sons from holding positions as officers or directors in any New York state-registered businesses. She also aims to prohibit them from engaging in new real estate transactions for a duration of five years, CNN reported.

The legal case claims that Donald Trump, along with his grown sons and the Trump Organization, profited by artificially increasing the worth of several assets. These assets encompass various properties such as Trump’s three-story apartment at Trump Tower, Mar-a-Lago, and a range of golf courses.

Updated: 31 Aug 2023, 09:14 AM IST