Trump overstated net worth by up to $3.6 billion per year, NY AG alleges in new filing

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Former President Donald Trump’s net worth was inflated by billions of dollars more than what the New York attorney general’s office initially found to be the case, the AG said in a new court filing Friday.

Citing an extensive analysis by valuation and accounting experts, the AG’s office found that Trump’s net worth in any given year between 2011 and 2021 was overstated by $1.9 billion to $3.6 billion.

This new, larger number is “still a conservative estimate,” New York Attorney General Letitia James wrote in the Friday filing, because those experts accepted at face value many of the elements of Trump’s financial statements “that would otherwise be rejected in a full-blown appraisal review.”

The new claims were part of a motion in opposition to Trump’s request for a summary judgment in his favor in the AG’s sweeping civil fraud lawsuit.

Filed in September 2022, the suit alleges that the former president, his adult sons and his businesses defrauded banks and insurance companies for years in an effort to obtain better loan terms and manipulate taxes for the Trump Organization. The prosecutor is seeking $250 million in damages.

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Attorneys for Trump did not immediately respond to CNBC’s request for comment on the latest motion.

James first asked the court for partial summary judgment against Trump in the case on Aug. 30, asserting that a “mountain of undisputed evidence” backed up her allegations.

In that filing, James wrote that “numerous deceptive schemes” used to inflate Trump’s total assets had a “staggering” cumulative effect, overstating his net worth by between $812 million and $2.2 billion per year.

On Friday, however, the attorney general wrote that Trump’s “deception is far greater” than what was laid out in her late August filing, which relied solely on the undisputed evidence in the case.

If one were to include factors likely to be taken into account by a bank or a real estate developer that was estimating current property values, Trump’s net worth is “overstated by billions more” than the August figures.

Based on the new, expert analyses, James alleged that the net worth that Trump reported every year on his “Statement of Financial Condition” was inflated by $3 billion or more for seven years straight, starting in 2013.

The trial is scheduled to begin on Oct. 2, making it Trump’s first case to reach trial since he left the White House.

On Wednesday, Judge Arthur Engoron rejected Trump’s bid to delay the trial, calling the request “completely without merit.”

James earlier this week asked Engoron to sanction Trump and others in the case for repeatedly putting forward the same failed legal arguments. As of Friday, he had not yet responded to the motion.

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