A new lawsuit filed in New York Wednesday alleges that former President Donald Trump claimed that the Trump International Hotel & Tower in Chicago “had become worthless” – apparently to claim a “substantial loss” for tax purposes, even as he used the property as collateral for future loans.
In fact, the Chicago loans – as well as other loans described in the suit -- have clauses that say that if Trump misrepresented his financial condition, the bank could put the loans into default, according to the suit.
However, there is no such instance of default described in the lawsuit – even after Deutsche Bank reportedly began getting indications that Trump and his associates may have misrepresented his wealth, though Deutsche Bank eventually cut ties with Trump and his organization, after being repaid on all outstanding loans.
The fraud allegedly included the former president's compound at Mar-a-Lago in Florida, his controversial hotel in Washington D.C. and even his own triplex at Trump Tower in Manhattan - three examples of what the AG alleges were more than 200 instances of fraud over the course of 10 years. In one example, James said Trump overinflated the value of Mar-a-Lago almost 10-fold.
The AG's office is seeking about $250 million in penalties, to permanently bar Trump and his children from being officers of any New York-registered company, and to bar them from borrowing from any New York-registered financial institution for five years. "We believe the conduct alleged in this action also violates federal criminal law," James said at the news conference, referencing the alleged filing of false financial statements, as well as purported bank fraud.
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