NY AG Sues Trump Family
Posted: Wed Sep 21, 2022 5:06 pm
The NY attorney general’s investigation into financial issues with respect to Trump and the Trump Organization resulted in the filing of a civil lawsuit. https://iapps.courts.state.ny.us/nyscef ... 67b4ec3336
It’s long and fairly boring, unless you are interested in how the Trump Organization was able to get loans. The reason it could was that DJT personally guaranteed the loans based on financial statements that significantly exaggerated his net worth and liquid financial resources.
You may recall that Trump’s accountant resigned in January and said it could no longer stand behind statements it had previously issued. The accounting firm has simply been compiling the statements based on figures provided by the Trump Organization. The Trump Organization represented to the accounting firm that it was following Generally Accepted Accounting Principles (GAAP), but wasn’t following them in a number of important respects. The result was a serious exaggeration of DJT’s financial position.
The primary remedy sought in the complaint is not damages, but disgorgement. Put simply, it seeks to require Trump to pay back the value of advantages he was given by lenders and insurance companies because he misrepresented his assets. It also seeks to temporarily bar Trump and his kids from real estate development in New York.
It’s long and fairly boring, unless you are interested in how the Trump Organization was able to get loans. The reason it could was that DJT personally guaranteed the loans based on financial statements that significantly exaggerated his net worth and liquid financial resources.
You may recall that Trump’s accountant resigned in January and said it could no longer stand behind statements it had previously issued. The accounting firm has simply been compiling the statements based on figures provided by the Trump Organization. The Trump Organization represented to the accounting firm that it was following Generally Accepted Accounting Principles (GAAP), but wasn’t following them in a number of important respects. The result was a serious exaggeration of DJT’s financial position.
The primary remedy sought in the complaint is not damages, but disgorgement. Put simply, it seeks to require Trump to pay back the value of advantages he was given by lenders and insurance companies because he misrepresented his assets. It also seeks to temporarily bar Trump and his kids from real estate development in New York.