NEW YORK (AP) — Donald Trump’s company is under scrutiny for no longer preparing sweeping financial statements that New York state alleges contained deceptive numbers for years, an executive stated Monday at the former president’s civil fraud trial.
Trump’s 2014 to 2021 “statements of financial condition” are central to state Attorney General Letitia James’ lawsuit against him, his company and key figures. The defendants deny wrongdoing, but James alleges that they provided lenders and insurers with financial statements significantly inflating Trump’s asset values and overall net worth.
Currently, the Trump Organization continues to prepare various financial audits and reports for some components but no longer creates a roll-up financial statement of the company, claimed Mark Hawthorn, the COO of the Trump Organization’s hotel arm.
Hawthorn wasn’t asked why the comprehensive reports had ceased, but stated that they are “not required by any lender, currently, or any constituency.”
The trial, now in its second month, focuses on the real estate empire that launched Trump’s career and his current campaign. Trump claims James is attempting to harm his campaign, saying that his wealth was understated, not exaggerated, on his financial statements. He has also emphasized that the numbers included disclaimers stating that they weren’t audited and that others might come to different conclusions about his financial position.
Judge Arthur Engoron has already ruled that Trump and other defendants committed fraud. The current proceeding aims to decide remaining claims of conspiracy, insurance fraud and falsifying business records.
James wants the judge to impose over $300 million in penalties and to ban Trump from doing business in New York. An appeals court has temporarily frozen that order.
(Information credit: Associated Press writer Michael R. Sisak)
