Podcast Summary
Judge to Decide on Trump Organization's Fate in Fraud Case: Judge Angouoron is expected to issue a decision this week on the New York attorney general's civil fraud case against Donald Trump and The Trump Organization, with findings of fraud, insurance fraud, business record fraud, financial statement fraud, and conspiracies, and a potential monetary penalty.
The New York attorney general's civil fraud case against Donald Trump and The Trump Organization is nearing its decision phase, with Judge Angouoron expected to issue his judgment this week. The judge had previously granted a motion for summary judgment, finding it more likely than not that persistent fraud had occurred within the company. Since then, a monitor, Barbara Jones, a former federal judge, was appointed to oversee the company due to deficiencies in financial statements and control data. The ultimate decision includes findings of fraud, insurance fraud, business record fraud, financial statement fraud, and conspiracies, as well as the determination of the monetary penalty. The monitor's report revealed errors in financial statements totaling millions of dollars and phantom loans of up to $50 million, among other issues. These findings, made while the company was already under monitorship, underscore the severity of the alleged fraud.
Trump Organization's business on hold due to investigation: The Trump Organization has halted new loans, refinancing, and acquisitions for over a year due to the NY AG's investigation, instead focusing on maintaining current loan obligations. Concerns arise from submission of alternative financial statements which do not provide property value estimates.
The Trump Organization's operations have been significantly impacted by the New York attorney general's investigation into alleged financial fraud. The organization has not taken out any new loans, refinanced, or acquired new assets in the past 14 months. Instead, they have been focusing on maintaining their current loan obligations. However, they have been submitting alternative financial statements, called material asset and material liability statements, which do not provide an estimate of the property's value. This is a concern for the monitor and could potentially be seen as an attempt to hide the true financial situation of the organization. The fact that the Trump Organization has not been able to conduct significant business during this time period is a significant development in the ongoing legal proceedings.
Trump Organization's financial reporting raises concerns of fraud: The Trump Organization's financial reporting practices have been questioned for inflated asset values, unapproved changes, and ongoing issues with financial controls, errors, and inconsistent information.
That the Trump Organization's financial reporting practices have raised serious concerns of persistent fraud, as evidenced by their use of "cooked books" with inflated asset values in the past, and their subsequent change in reporting methods without approval from banks. This change in reporting methods, which began after the litigation was commenced, could be considered a "subsequent remedial measure" by the judge, indicating an awareness and intent to hide previous financial irregularities. The monitor's report also highlights ongoing issues with financial controls, errors, and inconsistent financial information within the company. These issues include phantom loans and intercompany transactions that were not properly listed on the balance sheet, which are significant red flags in financial reporting. Overall, the Trump Organization's financial practices have come under intense scrutiny, with the New York Attorney General seeking to put the entity out of business due to its lack of financial controls and improper reporting.
Monitor finds Trump Organization still providing incomplete financial info: The Trump Organization, despite having a monitor in place, failed to provide complete and accurate financial information to lenders in 10 instances, but has since started to comply.
The Trump Organization, despite having monitorship in place for 14 months, was still found to be providing incomplete or inaccurate financial information to lenders. This issue was highlighted in a monitor's report, which identified 10 instances where required certifications attesting to the accuracy and completeness of financial information were not provided. The monitor also noted that since raising this issue, the Trump Organization has started to submit these certifications when required. Meanwhile, on a completely different note, getting enough quality sleep is crucial for our mental and physical health. Beam's dream powder, a science-backed healthy hot cocoa for sleep, can help improve sleep quality with its natural blend of ingredients like reishi, magnesium, L-theanine, melatonin, and nano CBD. The product, which contains no added sugar and is available in various delicious flavors, has been clinically proven to help 93% of participants get better sleep. So, whether you're an athlete, a business professional, or just someone looking for better sleep, Beam's dream powder is a worthwhile addition to your nighttime routine. Use the code "legalaf" for up to 40% off at checkout when you order at shopbeam.com.
Trump Organization under scrutiny for continued financial fraud: The Trump Organization, under the leadership of Donald Trump, Eric Trump, and Don Junior, is under investigation for committing financial fraud by failing to comply with accounting principles and submitting fraudulent financial statements, potentially defrauding taxing authorities and lowering taxes through intercompany loans and inconsistent disclosures.
That the Trump Organization, under the leadership of Donald Trump, Eric Trump, and Don Junior, is under scrutiny for continuing to commit financial fraud despite previous consequences. The organization's representatives have failed to comply with generally accepted accounting principles and have submitted fraudulent statements of financial condition, leading the monitor to suspect continued fraudulent activity. The use of intercompany loans as phantom plugs to balance sheets and the failure to properly disclose these loans are forms of fraud, potentially defrauding taxing authorities and lowering taxes. The judge is expected to address these issues in an upcoming order. The organization's past actions, including the imprisonment of the CFO for tax fraud and the firing of the controller, have not deterred the alleged fraudulent behavior. The monitor's report also highlights numerous inconsistent disclosures totaling millions of dollars. Overall, the situation indicates a pattern of disregard for financial reporting regulations and a potential ongoing issue with financial integrity within the Trump Organization.
Monitor identifies financial reporting and disclosure issues at Trump Organization: The Trump Organization faces significant financial penalties for non-compliance with financial disclosure laws, lacks adequate internal controls, and may face ongoing scrutiny and penalties.
While the monitor overseeing the Trump Organization testified that there have been issues with the organization's financial reporting and disclosures, she has not yet concluded that fraudulent activity has occurred. The Trump Organization has been largely inactive for the past 14 months and may face a significant financial penalty for non-compliance with financial disclosure laws, potentially totaling over $500 million. If Donald Trump chooses to appeal, he will need to secure a bond worth several hundred million dollars, which could be a significant financial burden. The monitor also identified a lack of adequate internal controls and accounting procedures within the organization. These issues have not been fully addressed, and the organization may face ongoing scrutiny and potential penalties.
Michael J. Cohen's Financial Woes and Legal Issues: Ex-Trump lawyer Michael J. Cohen faces mounting debts, legal actions, and real estate difficulties, making it challenging for him to secure financing from banks.
Michael J. Cohen, the former lawyer and fixer for Donald Trump, finds himself in a precarious financial situation with mounting debts, legal issues, and real estate holdings that are difficult to liquidate. The combination of these pressures, including legal action from the New York Attorney General and a judge, as well as ongoing investigations, has created a "squeeze" for Cohen. The question remains whether Cohen will be able to secure financing from a bank amidst these challenges. Stay tuned for updates on this developing story. For more insights and analysis, tune in to Legal AF on the Midas Touch network every Wednesday and Saturday at 8 PM, Eastern Time, or listen to the audio podcast platforms of your choice. Follow us on Instagram @MidasTouch to stay informed on the latest news.
