Hudson Valley Involved In New York’s Lawsuit Against Donald Trump
A number of locations in the Hudson Valley are named in a civil lawsuit against former President Donald Trump.
On Wednesday, New York State Attorney General Letitia James filed a civil lawsuit against former President Trump for allegedly inflating his net worth.
New York Attorney General Sues Donald Trump for Years of Alleged Financial Fraud
The lawsuit is against Donald Trump, the Trump Organization, senior management and involved entities for engaging in years of financial fraud to obtain a host of economic benefits, officials say.
“For too long, powerful, wealthy people in this country have operated as if the rules do not apply to them. Donald Trump stands out as among the most egregious examples of this misconduct,” James stated. "Mr. Trump thought he could get away with the art of the steal, but today, that conduct ends. There are not two sets of laws for people in this country; we must hold former presidents to the same standards as everyday Americans."
Lawsuit Alleges Trumps Children Helped With Financial Fraud
The lawsuit alleges Trump, with the help of his three oldest children, Donald Trump Jr., Ivanka Trump, and Eric Trump, and senior executives at the Trump Organization inflated the perceived value of certain properties when it benefited them while also downplaying the values of other assets so they could receive tax breaks.
“With the help of his children and senior executives at the Trump Organization, Donald Trump falsely inflated his net worth by billions of dollars to unjustly enrich himself and cheat the system. In fact, the very foundation of his purported net worth is rooted in incredible fraud and illegality," James said.
Donald Trump Sued In New York State
The lawsuit comes after a three-year investigation by the New York Attorney General's Office. The lawsuit alleges from 2011-2021, Trump and the Trump Organization knowingly and intentionally created more than 200 false and misleading valuations of assets.
The lawsuit seeks to:
- Permanently bar Mr. Trump, Donald Trump, Jr., Ivanka Trump, and Eric Trump from leading a business in any New York corporation or similar business entity registered and/or licensed in New York state
- Ban Mr. Trump and the Trump Organization from entering into any New York real estate acquisitions for 5 years
- Seeks $250 million for alleged fraudulent practices
A spokesperson for Trump Organization called the lawsuit, "targeted" and "meritless unethical political harassment."
Three Hudson Valley Properties Named in Trump Lawsuit
Three properties in the Hudson Valley are named in a civil suit against former President Trump.
Trump National Golf Course Hudson Valley, Hopewell Junction, New York
The Trump organization employed the fixed-asset, unsold membership, membership deposit and brand premium schemes, officials allege.
"Once the property was valued using a combination of fixed assets and income, the club valuation fell by almost $4 million from the 2020 figure," the lawsuit states.
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Seven Springs, Westchester County, NY
Trump purchased the 212-acre estate in 1995 for $7.5 million. The Trump Organization valued the property at up to $291 million, stated the area was zoned for nine mansions and that seven mansions were approved that would net $161 million, officials say.
"However, these values were fiction, totally unsupported by the development history of the property and contradicted by every professional valuation done on the
property. The valuation of the mansions also conflicted with limits imposed by the Town of New Bedford on how the property could be developed," the lawsuit states.
Trump National Golf Club Westchester, Briarcliff Manor, New York
Trump is accused the inflating the property value by using an unsold membership scheme.
"The valuation for 2011 assumed new members would pay an initiation fee of nearly $200,000 for each of the 67 unsold memberships, even though many new members in that year paid no initiation fee at all and no new member in the prior year paid an initiation fee of more than $50,000. Trump also utilized the fixed-asset scheme on this property, ignoring an appraisal that showed the true value of the property to be much lower," the lawsuit states.
In a statement, Trump called the lawsuit "another witch hunt."