Trump inflated net worth up to US$2.2 bn per year from 2011 to 2021: prosecutors

NEW YORK, UNITED STATES — Donald Trump routinely overvalued his net worth by billions of dollars each year between 2011 and 2021, New York’s attorney general alleged on Wednesday.

In documents filed in support of an ongoing US$250 million civil suit against the former president, state Attorney General Letitia James claimed that Trump and some of his associates submitted “grossly inflated” numbers to banks and insurers “to secure and maintain loans and insurance on more favorable terms.”

The scheme resulted in “hundreds of millions of dollars in ill-gotten savings and profits,” the documents alleged.

James’ lawsuit against the current Republican frontrunner in the 2024 presidential race dates back to last year, when she accused Trump, some of his children and the Trump Organization business of tax and financial fraud.

Trump and his children also stand accused of deflating the value of certain Trump Organization assets — including golf clubs, luxury hotels and other properties — to reduce taxes.

The trial is due to start on 2 October, with a preliminary hearing on 22 September, though James, a Democrat, is seeking to have the court resolve the case before it goes to trial based on the documents submitted Wednesday.

They allege Trump overstated his wealth each year between 2011 and 2021, including the years he was president, between 17 and 39 percent — amounting to US$812 million and US$2.2 billion each year.

“Based on the undisputed evidence, no trial is required for the Court to determine that Defendants presented grossly and materially inflated asset values,” to help them conduct “business transactions and defraud banks and insurers,” prosecutors argued.

In January, the Trump Organization was fined US$1.6 million by a New York judge in a criminal tax and financial fraud case.

If James’ civil case against Trump goes to trial, it will be one more for the candidate to have to juggle while also zipping across the country on the campaign trail.

Trump is facing four criminal trials for actions allegedly taken before, during and after his presidency — state cases in New York and Georgia and two federal cases in Florida and Washington.

Trump has in the past denounced the case as a “witch hunt,” calling James, who is Black, “racist.”

— AFP