Former U.S. President and Republican presidential candidate, Donald Trump, was recently informed by the independent financial monitor for the Trump Organization that there were issues of incompleteness and inconsistency in certain disclosures made by the company to lenders and others. Barbara Jones, the monitor, stated that Trump and his company defended their disclosure practices but agreed to address the identified issues and make adjustments moving forward. This information was shared in a letter filed in court by Jones. CNBC has reached out to the Trump Organization for comment on these claims.
Barbara Jones, a former federal judge, was appointed as a financial monitor in November in a case where the Trump Organization, Trump, and some of his children are being sued by New York Attorney General Letitia James for alleged fraud related to financial statements. The trial for this case is scheduled for October 2nd. James requested an outside monitor last year due to concerns that Trump was attempting to move his companies out of New York to evade her jurisdiction.
Judge Arthur Engoron agreed with James’ request, citing the “persistent misrepresentations” in Trump’s Statements of Financial Condition from 2011 to 2021. Jones, in her letter, mentioned that the Trump Organization consists of assets held by the Donald J. Trump Revocable Trust, which acts as a guarantor for loans and owns various properties such as real estate, hotels, golf courses, and licensing ventures.
During her review, Jones found incomplete information regarding certain material liabilities provided to lenders, including intercompany loans, contingent liabilities, and golf club membership deposits. She also noted inconsistencies in the company’s financial statements, particularly regarding depreciation expenses. The annual audited financial statements prepared by an outside accounting firm listed depreciation expenses, but the interim financial statements provided internally to third parties inconsistently reported them.
The attorney general’s lawsuit alleges widespread fraud involving false financial statements made by the defendants to banks, insurance companies, and the IRS. Letitia James is seeking $250 million in damages and a business ban for the Trump Organization in New York. The allegations claim that Trump exaggerated asset values to obtain favorable loan and insurance terms and to reduce tax obligations.
Overall, these developments highlight the ongoing legal challenges faced by the Trump Organization and former President Donald Trump.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
