Paper Profit: Donald Trump defrauded banks for years by exaggerating his networth –US Judge

*Judge Arthur Engoron, Tuesday, September 26, rules in a civil lawsuit brought by New York’s Attorney-General that former United States President Donald Trump  and his company deceived banks, insurers, and others by ‘massively overvaluing his assets and exaggerating his networth’ by as much as $3.6 billion on ‘annual financial statements’ used in making deals and securing financing’

Isola Moses | ConsumerConnect

Former United States President Donald Trump and his company deceived banks, insurers and others by massively overvaluing his assets and exaggerating his net worth on paperwork used in making deals and securing financing, a judge has ruled.

A judge ruled that Trump apparently defrauded American banks for years while building the real estate empire that catapulted him to fame and the White House, agency report said.

Judge Arthur Engoron, ruling on Tuesday in a civil lawsuit brought by New York’s attorney general, found that the former president and his company deceived banks, insurers and others by massively overvaluing his assets and exaggerating his net worth on paperwork used in making deals and securing financing.

Mr. Trump, his company and key executives repeatedly lied about them on his annual financial statements, reaping rewards such as favourable loan terms and lower insurance premiums, Judge Engoron found.

The decision, days before the start of a trial in the suit brought by Attorney General Letitia James, is the strongest repudiation yet of Mr Trump’s carefully coiffed image as a wealthy and shrewd real estate mogul turned political powerhouse.

Ms James sued Mr Trump in September 2022, accusing him and the Trump Organisation of lying for a decade about asset values and his net worth to get better terms on bank loans and insurance.

She has said he had inflated his net worth by as much as $2.23 billion, and by one measure as much as $3.6 billion, on annual financial statements given to banks and insurers.

The judge said Ms James had established liability for false valuations of several properties, including Mar-a-Lago and his penthouse, and chided Trump for offering defenses in a deposition that were “wholly without basis in law or fact.”

“He claims that if the values of the property have gone up in the years since the (financial statements) were submitted, then the numbers were not inflated at that time,” the judge wrote.

“He also seems to imply that the numbers cannot be inflated because he could find a ‘buyer from Saudi Arabia’ to pay any price he suggests,” he added.

The former president has described the case – and several others he is facing – as a politically-motivated “witch hunt”.

A trial is scheduled for 2 October, and could last well into December, 2023, reported said.