Executive at Donald Trump’s company says ‘presidential premium’ was floated to boost bottom line

During Donald Trump’s tenure as President of the United States, executives at the Trump Organization explored the possibility of incorporating a “presidential premium” into the valuation of his properties, including the Trump Tower penthouse and the Mar-a-Lago resort. This strategy aimed to inflate Trump’s net worth by approximately $145 million, as revealed by Patrick Birney, Assistant Vice President of the Trump Organization, during testimony at Trump’s civil fraud trial in New York.

However, it’s important to note that the idea of the “presidential premium” was ultimately abandoned. Nevertheless, this revelation raises questions about the efforts made by Trump and his associates to artificially boost his net worth.

The trial, brought forth by New York Attorney General Letitia James, centers on allegations of fraud, conspiracy, insurance fraud, and falsifying business records related to Trump’s financial statements. In a prior ruling, the judge found that Trump and his company had engaged in years of fraud by exaggerating the value of his assets and net worth in these financial statements.

Birney’s testimony indicated that the consideration of a “presidential premium” came about as a means to offset a loss in the valuation of Trump’s Manhattan penthouse. This loss was attributed to a correction in the reported size of the penthouse, which had been inaccurately valued for years. The correction was made in Trump’s 2017 financial statement, coinciding with a broader financial review undertaken by the Trump Organization following Trump’s election as president.

The proposed “presidential premium” involved adding 25% to the value of Trump’s Trump Tower penthouse and considering similar premiums for his properties at Mar-a-Lago and Bedminster golf club in New Jersey. For instance, applying this premium to the Bedminster golf club would have increased its listed value to approximately $145 million, with an added $18.9 million attributed to a “presidential summer residence” premium.

When questioned about who directed the consideration of the “presidential premium,” Birney indicated it was likely Allen Weisselberg, the former Chief Financial Officer of the Trump Organization. Weisselberg had previously mentioned that “Donald likes to see [his net worth] go up.”

While this particular premium was ultimately discarded and not included in Trump’s financial statements, state lawyers argue that Trump and his associates employed various tactics to inflate his net worth without disclosing them to parties relying on these statements for accurate financial information.

Attorney General Letitia James is seeking $250 million in penalties and aims to prohibit Trump and other defendants from conducting business in New York. A court-appointed receiver has also been ordered to take control of certain Trump companies, although this action has been temporarily halted by an appeals court.

Trump’s net worth has been a subject of discussion, with Trump estimating it to be in excess of $6 billion and attributing significant value to his brand. However, he maintained that his brand was not factored into his financial statements, asserting that if he wanted to inflate his statement, he would have included his brand.

In summary, the consideration of a “presidential premium” as a means to enhance the valuation of Trump’s properties sheds light on the complexity and legal scrutiny surrounding Trump’s financial dealings during his time in office. The trial continues to examine these allegations of financial manipulation.

Frequently Asked Questions (FAQs) about fraudulent valuation

More about fraudulent valuation

• Trump Organization Faces Trial Over Valuation of Assets
• New York Attorney General Letitia James
• Donald Trump’s Net Worth
• Trump Tower
• Mar-a-Lago
• Allen Weisselberg
• Trump’s Financial Statements