- AG Letitia James alleges decade-long financial exaggerations.
- Estimated overstatement ranges between $1.9 billion to $3.6 billion.
- Upcoming trial could further expose financial disparities.
New York's Attorney General, Letitia James, has brought some eye-opening details to light. Donald Trump's self-proclaimed net worth, it seems, was an exaggerated account. From 2011 to 2021, calculations may have been overstated by a hefty sum ranging from $1.9 billion to $3.6 billion. And here's the kicker: these figures, according to James, are still on the modest side.
Why so? The valuation experts on the case, even while acknowledging some of the former President's claims in his annual financial statements, believe the real numbers could be even higher. These revelations are part of the ongoing civil fraud lawsuit initiated by James against Trump, his adult children, and their businesses. The essence of this legal tussle? Allegations that Trump and his team used deceptive tactics to gain favorable terms from banks and insurance companies, thereby pumping up the Trump Organization's finances. The asking price for these alleged discrepancies? A cool $250 million.
To get a perspective on these claims, James pointed out that Trump's assets might have been inflated annually by a whopping 17%-39%. When you crunch these numbers, they indicate an overstatement of $1 billion or more almost every year, reaching up to $2.2 billion. However, James suggests that the real scale of overstatement is even more massive than what has been presented so far.
The methodology, as explained, involves considering various market factors that would typically weigh in on one's net worth. Some of these factors include discounting future income and correcting inconsistent calculation methods. The result of such detailed scrutiny? For seven consecutive years from 2013, Trump's declared net worth might have been exaggerated by $3 billion or more.
All these revelations are set against the backdrop of a trial due to begin on October 2nd. This marks Trump's first courtroom showdown since his presidential departure in 2021. And while the former president sought a delay, Judge Arthur Engoron has labeled such requests baseless. The drama unfolds as James also seeks penalties against Trump for repetitive, unfruitful legal maneuvers.
WOM Money Picks
Be a part of the winning team | 81% Success Rate.