Con Man Trump And 3 Eldest Children Sued By NY Attorney General For Falsifying Financial Statements

Con Man Trump And 3 Eldest Children Sued By NY Attorney General For Falsifying Financial Statements

NY AG: Trump’s oldest children “knowingly participated” in the fraudulent scheme

In a recent article just published on CNN.com by By Mike Hayes, Aditi Sangal, and Maureen Chowdhury, CNN, Donald Trump, and his three oldest children have been sued for financial fraud.

Eric Trump, Ivanka Trump, and Donald Trump Jr. “knowingly participated” in the fraudulent schemes alleged by New York Attorney General Letitia, her complaint said, pointing to how the three Trump children “were intimately involved in the operation of the Trump Organization’s business.”

The scheme “required the participation of Mr. Trump and his children,” the lawsuit said, adding that the children were “aware of the true financial performance of the company.”

The children are mentioned in connection with several of the episodes laid out in the lawsuit in which the New York attorney general alleges Trump and his businesses made false statements about their finances.

The lawsuit, for instance, alleges that Eric Trump was involved in an approach to appraising properties in Las Vegas in a way that lowered their value for tax purposes while inflating their value on Trump financial statements.

From left, Donald Trump Jr., Ivanka Trump, and Eric Trump attend a meeting at Trump Tower in New York in 2016.
 (Jabin Botsford/The Washington Post/Getty Images)

“By using the fraudulent valuation methods and assumptions described above, the Trump Organization was able to inflate the value of Trump Vegas in each of the years from 2013 to 2016,” the complaint said. “Eric Trump, invoking his Fifth Amendment right against self-incrimination, refused to answer questions related to his participation in the drafting of each of 2013 through 2016 Statements.” 

The lawsuit also quotes testimony from Donald Trump Jr. as it describes how the value of Trump Park Avenue was allegedly inflated on Trump financial statements. An appraisal of the property by an outside firm in 2010 for a loan took into account how some of the units were rent-stabilized, lowering their value, according to James’ complaint. Yet, Trump financial statements put a value on the units roughly six times higher than what the appraiser had concluded, the lawsuit said.

“The Trump Organization was well aware of the rent-stabilized nature of many units at the property, as any landlord would be. Indeed, Donald Trump, Jr. testified that the rent-stabilized tenants at the building were, ‘the bane of [his] existence for quite some time,’” the lawsuit said.

The lawsuit pointed to Ivanka’s involvement in securing a loan for purchasing the Doral golf course in Florida and Chicago properties in 2012 – loans that James claims were extended partly because of financial statements allegedly containing misrepresentations.

“On each of those transactions with Deutsche Bank, Ms. Trump was aware that the transactions included a personal guaranty from Mr. Trump that required him to provide annual Statements of Financial Condition and certifications,” the lawsuit says.