-
-
-
Loading
Loading
The civil fraud trial involving Donald Trump and his family business revolves around the disputed value of Mar-a-Lago, which Trump has described as the "Mona Lisa" of properties. The trial has lasted 10 weeks, with prosecutors and the defense disagreeing on the worth of the private club in Florida and the boundary between legitimate real estate appraisals and fraud. The allegations state that Trump, his sons, and the Trump Organization artificially inflated the value of assets, including Trump Tower and various golf resorts, by $2 billion in order to secure better loan interest rates. The New York Attorney General, Letitia James, claims that this resulted in more than $150 million in savings over ten years and is seeking to ban Trump from conducting business in the state. The trial is reaching its conclusion, but even before it began, Judge Arthur Engoron ruled that the financial documents connected to the allegations "clearly contain fraudulent valuations." Trump has appealed this pre-trial ruling and is facing six more counts of fraud that require evidence of intent. Although Trump was expected to testify, he announced on social media that he had nothing more to say in what he believes is a politically motivated case. He was especially offended by the claim that Mar-a-Lago is worth $18 million, arguing that it is worth 50 to 100 times that amount. Determining the actual value of Mar-a-Lago is complicated due to the property's deed restrictions, which limit its use to a private club. The land cannot be subdivided, and the estate, built in 1927, requires expensive preservation costs. Trump changed it to a private club to utilize membership fees for upkeep. The issue with valuing Mar-a-Lago lies in these restrictions. Real estate experts explain that its value is based on the club's profits rather than the land itself. If the deed restrictions didn't exist, the property would be worth significantly more. Trump claimed Mar-a-Lago's value was between $426.5 million and $612 million, while the Palm Beach County Assessor appraised it at $18-27.6 million for tax purposes over the same period. Experts note that tax assessors' values are usually lower than the property's selling price. The New York Attorney General alleges that the Trump Organization fraudulently came up with higher valuations by comparing Mar-a-Lago to properties without deed restrictions. They argue that this constitutes fraud because the organization knew about the restrictions but ignored them. Mar-a-Lago is a central element of the lawsuit as it is where Trump spends his time. Claims have been made that he used one of the marble bathrooms to store classified documents. Hearing low valuations for Mar-a-Lago has been a cause of offense for Trump, and he frequently raises this issue in press conferences and on social media. In the ongoing trial, witnesses have given conflicting valuations, with one luxury real estate broker stating that Mar-a-Lago is worth over $1 billion. However, without the deed restrictions, some experts estimate its value to be around $500 million or even higher. Trump argued that he is not legally bound by the deed restrictions and that the valuations would have been higher if they had considered the Trump brand. His defense also claims that the values of assets are not crucial because banks conduct their own research for loan decisions. The defense's accounting expert argued that while there were errors in the financial documents, they did not indicate fraud or intent. He asserted that valuations are subjective, and banks and lenders use financial documents as a starting point. The lawsuit does not require proof of victimhood but rather intentional fraud. If found guilty, Trump and his co-defendants could face fines of at least $250 million and be banned from conducting business in New York. The Trump Organization might have to hand over control to a court-appointed receiver or sell iconic landmarks, including Mar-a-Lago.