A court document filed by New York Attorney General Letitia James says Ivanka Trump was given the option to buy a luxury NYC apartment from the Trump Organization for a third of the value listed on company financial statements.
Ivanka had an option to purchase the Park Avenue apartment for $8.5 million, according to the court order seeking testimony filed by the AG’s office, after leasing it on ‘extraordinarily favorable terms’.
But her father Donald Trump, on his Statement of Financial Condition over several years listed values of the apartment at between $20,820,000 and $25,000,000, according to the document.
The revelations about the lucrative perk for the president’s daughter comes in a sweeping court filing filed by the AG as she seeks to secure testimony and obtain further documentation in a probe of what the AG says in an extraordinary public statement are ‘fraudulent and misleading’ valuations of major business assets.
It all comes at time when the former president is positioning himself for a potential run to try to recapture the White House – while blasting the probe as a politically motivated witch hunt. It threatens to ensnare not only Trump and his top executives – some who have served his family for decades – but the adult children he relied on both at his business enterprise and while serving in the White House.
The same document reveals that her brother, Eric Trump, invoked his Fifth Amendment right against self-incrimination 500 times over six hours of testimony – amid a parallel criminal investigation.
They are among the allegations of accounting tricks and unusual financial arrangements spelled out in court documents filed by James’ office seeking to compel testimony by the former president, Ivanka and Eric Trump in their civil investigation of Trump’s real estate and hospitality empire.
James’ office mentions the apartment in a filing that alleges the Trump Organization pumped up valuations when communicating with lenders, but provided low-ball estimates to tax authorities.
Ivanka Trump had an option to purchase a Park Avenue apartment leased to her by her father’s company for $8.5 million, according to the court order seeking testimony filed by the AG’s office. But the firm listed its value as high as $25 million in financial statements
Park Avenue Apartment with ‘extraordinarily favorable terms’
The AG argues the president’s daughter, who served as an unpaid White House aide when Trump was in office, should have to testify.
‘Given Ivanka Trump’s involvement in these and other matters, her testimony plainly bears a reasonable relation to the matters under investigation by OAG and must be compelled,’ according to the filing.
It states her ‘knowledge’ of the financial statements, and says Ivanka ‘also has relevant information regarding the valuation of assets contained therein. In particular, she was able to ask for and access financial summaries and projections covering properties or businesses in the Trump Organization portfolio.’
According to a Trump Organization website, the building is ‘idyllically situated near Central Park, world-renowned restaurants, shopping and some of Manhattan’s most prestigious schools’
According to the AG’s court order, Ivanka was allowed to buy the Park Avenue apartment at $8.5 million. However, she had to lease it for ‘extraordinarily advantageous terms’. Ivanka and her two children are seen together in the apartment.
According to the statement, Ivanka Trump’s father, Donald Trump, listed the values of the apartment as between $20,820,000- $25,000,000 in his Statement of Financial Condition. This document was compiled over many years. Jared and Ivanka are seen together in the apartment.
It was large enough to accommodate a Steinway baby-grand. Ivanka had later the option of purchasing a bigger unit.
Ivanka shared images taken in her apartment via Instagram
Court filings reveal complex schemes that overstate company assets’ value
Ivanka is alleged to have been offered the chance of purchasing the property for a lower price in the highlighted portion of the document
According to the filing, Ivanka paid “a monthly rental rate that was just a fraction per square feet of what other penthouse tenants paid in this building.”
According to filings, she rented an apartment on Trump Park Avenue starting in 2011.
According to the company’s financial statements for 2011, 2012, and 2013, it was worth ‘approximately 2 1/2 times the option price with no disclosure about the existence of an option. In 2013, it was valued at $25 million – ‘more than three times the option price, again, with no disclosure of the existence of the option.’
Ivanka had the option in 2015 to acquire a bigger penthouse unit within the same building for $14 million.
According to a Trump Organization web site, the building is ‘idyllically situated near Central Park, world-renowned restaurants, shopping and some of Manhattan’s most prestigious schools, houses over 120 luxury condominiums in one of the Upper East Side’s most coveted locations.’
“Refitted using a wide range of Italian fixtures and polished hardwoods and marble finishes. Each detail on Trump Park Avenue has been meticulously decorated with sophistication and classicism.
The New York’s attorney general is seeking a court order to force Donald Trump and his two oldest children to testify in their fraud case, stating that she has ‘uncovered significant evidence’ of financial misconduct.
James began investigating the tax affairs at Trump Organization in March 2019, after Michael Cohen, a former Trump confidante, revealed details about its business practices.
James will investigate whether Trump Organization inflated the value its assets to obtain tax relief.
James already had access to some information, even from Trump Organization representatives early in his participation.
Her office claims that the flow of important information has ceased.
According to the document, Trump Organization “hasn’t made anything even close to a complete production” of Trump’s documents.
AG notes that Eric Trump invoked the Fifth Amendment ‘repeatedly’ during deposition
The document reprints comments when Eric Trump took the Fifth Amendment – as he did 500 times during an interview
Even though prosecutors are trying to force testimony from Ivanka & Don Jr. they point out that Eric Trump was the one who ran the company during his father’s term and refused to answer multiple questions.
Prosecutors write that Eric Trump repeated his Fifth Amendment privilege when asked to clarify various aspects of 2012 and 2013. When he was asked about the Seven Springs resort’s valuation, he responded accordingly.
His father was a beneficiary of the multi-million dollar project. He was his ‘liason.
Prosecutors claim that the Trump Organization exaggerated the land donation value to justify big tax deductions at Seven Springs. They were referring to a property that they estimated at $80million in 2007, and at $291million five years later in 2012.
‘For his part, Eric Trump has asserted his Fifth Amendment privilege in declining to answer OAG’s questions on these matters,’ according to prosecutors.
‘Eric Trump… invoked his Fifth Amendment right against selfincrimination to answer more than 500 questions during the 2020 interview. This was after he had lasted six hours.
The speech that he made when he was asked about his ‘basic background information’ was printed by the prosecution verbatim.
Cabinets stocked with Trump’s paper files – but no info handed over since July
Company general counsel Alan Garten ‘testified that there were file cabinets at the Trump Organization containing Mr. Trump’s files, that Mr. Trump had assistants who maintained files on his behalf, that he received and maintained hard copy documents, and that he used Post-It Notes to communicate with employees,’ they wrote.
‘Yet as of June 30, 2021 – more than 18 months after receiving the initial subpoena from OAG – the Trump Organization still had not searched for those documents,’ they write.
The AG argues the Trump Organization ‘has not made anything approaching a complete production of documents for Mr. Trump.’
It states that despite Trump’s famed inability to use email or computers, Trump regularly created handwritten documents.
Trump writes to German Bank: “Hopefully you will be amazed!”
Even brief messages from former Presidents could prove to be evidence-bearing.
The filing cites a November 2011 note that Trump wrote to Richard Byrne, the Chief Executive Officer of Deutsche Bank Securities – the Trump Organization’s primary lender.
Trump attached his financial statement along with a note that said, “hopefully you’ll be impressed!”
It also “touted” the potential of Doral property and included a letter which ‘establishes brand value’, but not in my net worth statement.
James claims that Trump added a “brand premium” of 15-30 percent to some properties bearing his name, even though they stated in their financial statements that such values were not included.
Metadata cited by the AG’s office indicate it came from Trump’s custodial files, but there has been no further production from those files since July – an ‘abject failure.’
Trump Organization called the investigation into civil rights ‘baseless’, and said it was politically motivated.
Claim Trump Tower 11,000-square foot penthouse, 30,000 SF. It cost $200 million
James stated that Trump Tower’s former President claimed it to be 30,000 sq. feet in size and valued at $327 million. However, the actual area was only 11,000 square footage and is worth just a fraction.
Trump long boasted of his triplex apartment. It has featured in numerous photo-shoots.
The AG “It was discovered that this property’s valuations, which were included in the Statements on Financial Condition from at least 2012, were based upon the assumption that the apartment had a triplex of 30,000 square feet.
Trump falsely claimed that Trump Tower’s penthouse was 3000 square feet for tax and financial purposes. It was actually 11,000 square footage.
Trump Organization’s Trump Tower penthouse was undervalued, according to The AG’s office
The triplex offers spectacular views of Manhattan and is described as 11,000 sqft, although it is still listed as 30,000 sqft
The documents repeatedly point to times when Trump signed off on valuations or referenced them
According to the office, evidence shows that Jeffrey McConney and Allen Weisselberg (longtime Trump CFO) ‘both participated’ in these valuations.
James says that the difference in the property’s value was around $200 million due to misreporting the size of its penthouse.
In a parallel criminal probe, Weisselberg received a charge last year for tax fraud.
Trump acknowledged that his apartment had a value exceeding $200 million.
Trump’s penthouse, despite its lower value and only one-third of the footage claimed, is not to be missed.
While Baron Trump was finishing up his school year, Melania Trump, the First Lady of America, stayed there.
It has perks fit for a hereditary ruler, with 24-karat gold finishings, marble, and is decked out with gilded furniture.
Its stylings have been compared to Louis XIV, it features large chandeliers and gilded finishings and features a private elevator – which over the years has provided Trump a speedy commute to his office.
Trump, while still in office, switched to Florida as his domicile. Trump also mentioned New York’s higher taxes while railing about the city and its prosecutors.
A mysterious listing of $150,000 Westchester club dues that were waived to some members
He also allegedly inflated the value of his golf course in Scotland, and wrongly stated that members of his Westchester club were paying $150,000 to join.
Trump purchased the property for $8.5 millions and listed it in financial documents beginning in 2004. With a value of $68million in 2011, the company recorded the property’s worth under the heading ‘Club Facilities and Related Real Estate’.
The filing included a breakdown that listed the values of 67 unsold memberships, which was valued at $12.775,000.
‘Although the supporting data spreadsheet states that the club was currently “getting $150,000” per membership, the Trump Organization derived $12,775,000 in value by computing a value with 47 of the 67 unsold memberships priced higher than that amount, in many instances by $100,000 each,’ according to the AG.
Additionally, not all members paid the initial fee.
According to records, ‘even the representation that the club was “getting $150,000 per membership” in June 2011 was false: Records indicate that many members paid no deposit for their memberships in 2011.’
According to prosecutors, Trump is directly connected to an effort by Trump to raise memberships via waiving fee.
The strategy has been described in a memo dated March 2012 as having been discussed many times with Donald Trump. It will now be applied according to Trump’s instructions.
According to the AG who noted records showing that there were no fees for initiation, the goal was to attract 75 members.
The Statement of Financial Condition states that a combination of increasing the number of members and not collecting any initiation fees could reduce the unsold memberships for sale, and therefore the listed value Briarcliff. The filing states that Mr. Trump changed his strategy and the Statement of Financial Condition has stopped using unsold memberships to calculate the Briarcliff’s value.
Trump Organization calculated the value of members who paid $150,000 each to play in his Westchester County golf club.
Financial documents from the firm showed that some fees had been priced at $100,000 more than $150,000, according to Prosecutors. Many members who were recruited for the club’s membership program received their fees waived.
Letitia Jam announced on Tuesday she wanted a subpoena for Donald Trump’s two oldest children and to force them to testify
Eric Trump (far left) was required to testify at the October 2020 hearing. Allen Weisselberg, second right), testified during the fall 2021. James is now trying to get Don Jr. and Ivanka (far right), to testify. The following are the photos of them all in January 2017.
Scottish Golf Course Cost $12.5 Million, but Company claimed that value rose to $436M. Forbes Magazine cited a quote from an accountant who said the company was claiming this figure.
The AG also delves into Trump’s golf course in Aberdeen, Scotland and how the company arrived at its valuation for financial statements. Trump has repeatedly praised the course and even visited it in 2016 during his presidential campaign.
According to the AG, he bought the property in 2006 for $12.6million and began to list it in his financial statements. Exhibits cited by prosecutors name Trump’s longtime accounting firm, Mazars – who was a party to a lawsuit that went all the way to the Supreme Court as the government sought Trump’s financial information.
The company lists the value of combined ‘Club Facilities and Related Real Estate’ which combine the existing facility and potential real estate projects – but a recipient ‘is kept from learning, from the statement, the value assigned to any particular club in that category.’
The documents cite a figure of 75 million pounds as the initial valuation for the combined property that Trump provided to his accountant – with a company email with the subject line ‘Forbes Magazine’ penned by Trump Organization compliance counsel George Sorial. This would make its 2011 worth $161 million.
The email ‘contained a quote Mr. Sorial provided to an accountant in Scotland who was then expected to pass the information on to Forbes Magazine,’ according to the documents. ‘It thus appears that the valuation of Trump Aberdeen used for Mr. Trump’s financial statement was prepared for purposes of providing information to Forbes magazine in a quote’ – implying the basis was less than thorough.
The company then valued the property at $436 million on Trump’s 2014 statement – double its 2013 valuation. That statement cites planning permission to build to 1,486 homes – but used ‘parcel valuation’ based on developing 2,500 homes – more than 1,000 more.
Development potential was worth $361 million or 4/5ths of the declared value.
Yet that same year, the company ‘consistent with Donald Trump’s testimony to the Scottish government, represented in an audited financial statement that it did not intend any residential development on the property for the foreseeable future.’
A report also mentions a Trump-related public dispute about a planned wind farm. Despite claiming the pricey development in its 2014 statement of assets, a 2013 statement provided to UK regulators stated that ‘the hotel, second golf course, and future phases of the project have been postponed until such time that the Scottish Government and regional Councils have reversed their stance on supporting the wind farm development being considered for Aberdeen Bay.’
The value Trump gave ‘did not account for this indefinite postponement of residential development,’ prosecutors wrote.
AG Letitia James attacks Trumps with a statement saying that no one can ‘pick and choose’ if the law applies to their case.
James stated that the Trumps had misrepresented the IRS’s value to insurance companies, banks and other financial institutions.
James said that they are taking legal action in an effort to get Donald Trump Jr., Ivanka Trump and Donald Trump Jr. to cooperate with our probe into Trump Organization’s financial dealings.
“Noone in this country has the right to choose whether or not they follow the law.”
“We found significant evidence that Trump Organization fraudulently valued multiple assets to gain economic benefits. This included loans and insurance coverage. Tax deductions were also taken.
James claimed that Trump’s son Don Jr. (44), and daughter Ivanka (44) were trying to evade the truth, which was unacceptable.
We won’t accept their efforts to avoid testifying during this investigation.
“We won’t be stopped in our efforts for this investigation to uncover the facts and pursue justice no matter what roadblocks Mr. Trump or his family put in our path.”
According to the court filing, state authorities are yet to decide whether they will bring a civil suit in relation to the allegations. However, investigators must question Trump and his two oldest children as part the investigation.
Letitia James is blasted by company
Trump and his attorneys claim the investigation was politically motivated.
Trump Organization released a statement saying that Letitia Jam is the one who misleads the public.
The company stated that she had deceived New Yorkers when she promised to win Trump’s election without any proof and in complete violation of all ethical guidelines. Three years later, the company stated that Trump’s candidacy was deceitful.
Michael Cohen, who worked for the Trump family for over a decade until he turned on them, and was sentenced to three years in federal prison for tax evasion and campaign finance violations, sparked James’s investigation into the Trump Organization. Cohen appears on a podcast in a Mea Culpa jacket.
James (pictured January 6th) stated that everyone is subject to the law, even Trumps.
Donald Trump seen with Don Jr. and Ivanka at the finale of season six on The Apprentice
During a June 2019 visit to London, the Trumps were photographed with Prince Charles (left) and the Duchess Of Cornwall (right).
James’ office presented its most complete accounting to date of their investigation into Trump’s company’s repeated misvaluation of assets for favorable loan terms and to reduce its tax burden in court papers.
According to Trump Organization, the organization had misrepresented the true value of land donated in New York City and California by using paperwork that was submitted to IRS. This allowed it to justify several millions in tax deductions.
Trump’s Seven Springs Estate in Westchester, New York was overvalued as well. The property was valued at $80million by the Trump Organization in 2004. In 2007, it was valued at $200 million. By 2012, it had been valued at $291 million. It was valued at $56 Million by an independent appraiser in 2016.
Trump seen at his Scottish Golf Course in June 2011, also exaggerated the property’s value
Trump’s Seven Springs Estate in Westchester, New York was overvalued as well. The property was valued at $80 million by the Trump Organization in 2004; it was valued at $200 million in 2007, and $291 million by 2012. An independent valuer valued it at $56million in 2016.
Trump’s legal team sought to stop the subpoenas and called them “unconstitutional”
James, they claim is trying to illegally obtain witness testimony for the parallel criminal probe being led by Alvin Bragg (Matrical District Attorney).
Trump sued James at federal court last month to stop her investigation.
His lawyers claimed that the Republican attorney general (a Democrat) had violated Republican constitutional rights by publicly maligning Trump and his associates in a thinly disguised effort.
The Republican ex-president used to decry James’ probe and Bragg’s probe in the past as part of an ‘experiment’.
James Office made a late Tuesday statement stating that although it isn’t certain if the court papers from Tuesday merit legal action, the office believes that investigation should continue unassisted
James stated that the Trump Organization used litigation and delay tactics for more than 2 years to stop a legal investigation into their financial transactions.
“Thus far our investigation has uncovered substantial evidence that Donald J. Trump, the Trump Organization and other financial institutions misrepresented multiple assets’ values for economic gain.
James’ civil investigation differs from her criminal investigation. However, James’ office was involved in both. Her office sent several attorneys to collaborate with the Manhattan D.A.’s office.
James’ court case was not the only one in which a judge sided with him. Eric Trump, a Trump Organization executive, also testified after his attorneys abruptly cancelled he scheduled deposition.
The Trump Family is pictured at The Celebrity Apprentice’s 2015 finale at Trump Tower
Allen Weisselberg stands as Trump talks in May 2016. James has forced him to testify.
Manhattan’s district attorney filed tax fraud allegations against Trump Organization, Weisselberg and its long-serving chief financial officer last year.
Weisselberg did not plead guilty to allegations that he, along with the company, evaded tax on lucrative fringe benefits given to executives.
Trump, in his lawsuit to block James, filed shortly before Christmas, stated: ‘Her mission is guided solely by political animus and a desire to harass, intimidate, and retaliate against a private citizen who she views as a political opponent.’
Former president’s lawyers claim that James and his family were subject to a ‘bitter Crusade’. They accuse James of “bombarding” them with subpoenas.
Trump said James had been ‘nothing but corrupt officials doing dirty work for your Party’
“Tell Letitia she’s not dealing with Cuomo brothers. A corrupt Governor in corrupt state including your office, Fredo and other offices,’ he stated in a statement.
“Despite years of investigations that no one else could have survived, yours just continues the political Witch Hunt against me that the Radical Left Democrats have been conducting for many years.
“This isn’t about delaying, it is about our Constitution!”
You are nothing but corrupt officials doing dirty work for your political party. You shouldn’t be elected to office. It could be why you got reelected by New Yorkers in an inept race for governor. You didn’t quit for a higher purpose, you quit because your poll numbers were atrocious—you didn’t have a chance. New York got lucky!’
James announced her intention to run for Governor of New York. She then suspended her campaign in order to mount another bid for Attorney General.
Trump attorney Alina Habba told CNBC in a statement: ‘Letitia James targets President Trump with a callous disregard for the ethical and moral obligations she swore to abide by when she became Attorney General.’
“She’s shortchanging the state with this partisan investigation, and she has forever damaged the integrity of her office.
Habba explained that by filing the suit, she intends to not only hold her responsible for her obvious constitutional violations but also to stop her bitter quest to punish her political adversary in its tracks.
Trump reacted furiously to James’ announcement that her investigation would continue unabated