The New York Attorney General’s investigation into the Trump Organization’s potentially misleading business practices has “uncovered significant evidence” that the company’s financial statements relied on misrepresentations to secure economic benefits for more than a decade, the attorney general’s office said in a court filing on Tuesday.
The potentially misleading asset valuations “and other misrepresentations” were used to secure loans, insurance coverage and tax deductions “on terms more favorable than the true facts warranted,” according to the filing from New York State Attorney General Letitia James, which was first reported by CNBC.
James claimed the Trump Organization valued unsold units in the Trump Park Avenue building at more than six times their appraised value—at $292 million— on financial statements between 2010 and 2012, though an outside appraisal concluded the total market value of the units were worth $55 million.
In another example, the company’s financial statements from 2012 to 2016 listed former President Donald Trump’s triplex apartment in Trump Tower in Manhattan as more than 30,000 square feet and “valued the apartment at up to $327 million based on those dimensions,” though the company’s 2017 statement “slashed the apartment’s value by two-thirds, sizing the residence at just under 11,000 square feet,” according to the filing.
Trump Organization Controller Jeffrey McConney and former Chief Financial Officer Allen Weisselberg “played a role in crafting the financial statements at the crux of this investigation,” the filing alleges.
James wrote in the filing that the attorney general’s office has interviewed more than 40 witnesses and has received hundreds of thousands of documents as part of the probe—despite “serious lapses” of document preservation from the Trump Organization.
The Trump Organization did not immediately respond to a request for comment from Forbes,