Donald Trump and his business were found liable Friday of inflating asset values in paperwork to lenders, but given that nobody lost money, this punishment smacks of political overkill. In a 92-page ruling, New York Judge Arthur Engoron ordered him to pay $355 million, while also banning him from being an officer for any New York corporation for three years.
The judge had previously found that Mr. Trump fudged numbers submitted on Statements of Financial Condition (SFCs), most egregiously by claiming that his 11,000-square-foot triplex in Trump Tower was actually 30,000 square feet. Friday’s ruling, putting a price tag on that conduct, includes pages of summarized testimony from business partners.
Donald Bender, an accountant at Mazars who helped draw up the documents, said he discovered later, after being interviewed by investigators, “that the Trump Organization had withheld records, such as appraisals, that Mazars had requested,” in the judge’s telling. “Bender made clear that Mazars would not have issued the SFCs if it had known.”
Mr. Haigh affirmed that Mr. Trump’s “personal guarantee” was “the reason for favorable pricing on the loan.” Deutsche loans included covenants requiring Mr. Trump “to maintain a minimum net worth of $2.5 billion, excluding any value related to his brand.”
Perhaps this explains some of the obsession by the mogul-turned-President with puffing up his valuations over the decades. It’s true that Mr. Trump was interacting with sophisticate…
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