New York Attorney General Outlines Possible Fraud Pattern at Trump Business

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And for years, according to the filing, Mr. Trump’s company included Mr. Trump’s personal brand value in some of its golf club reviews, although it said that was not the case.

Although Ms. James did not show the company benefited from each valuation, her filing claimed the company had grossly inflated its assets, which could have given too rosy a picture of Mr. Trump’s finances to lenders.

Lawyers for Ms. James also argued that Mr. Trump had submitted at least two misleading statements to the Internal Revenue Service, claiming that he had grossly overstated the value of land at his Seven Springs estate in Westchester County and of his Los Angeles golf club. The value of Seven Springs, Ms James said, had been increased by counting the value of seven non-existent mansions, worth $61 million. Mr. Trump received tax deductions worth millions of dollars on both properties.

Investigators have accused the Trump Organization of calculating the value of Trump Tower by wrongly inflating the size of Mr. Trump’s longtime home: while Mr. Trump had claimed since 2012 that his triplex penthouse apartment in the he building was 30,000 square feet, he had signed paperwork stating its size as 10,996 square feet.

The additional square footage allowed the company to claim a value of $327 million for the apartment in the statements of financial position. Ms James said Allen H. Weisselberg, the Trump Organization’s longtime chief financial officer, said during questioning of Ms James’ investigators that the apartment was overvalued by $200 million “more or less “.

Mr. Weisselberg, according to the filing, also falsely told one of Mr. Trump’s insurance companies that the valuations of the properties were based on appraisals made by professional appraisers, when that was not the case. . In fact, “the assessments were prepared by staff of the Trump Organization,” the filing states.

A lawyer for Mr. Weisselberg, Mary E. Mulligan, declined to comment.

Mr. Trump’s company is already under investigation in Manhattan. In July, former Manhattan District Attorney Cyrus R. Vance Jr. accused the company and Mr. Weisselberg of carrying out a 15-year scheme to distribute luxury off-book benefits to certain executives. . That case is expected to go to trial later this year.

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