Trump ordered to pay over $350M for business fraud

What fraudulent information?

 

What relevant statute?

 

Why did DB lend the money??

How was DB harmed?

Are you claiming that DB did not agree with the valuation of the properties?

 

Which banks refused to lend him money?

 

A person needs to borrow money and decides to use his house as collateral. Zillow shows the house at $400K. The person however knows from neighborhood comps and recent upgrades that house is worth $500K. The bank ‘s loan department does research confirming the $500K valuation and issues a contract to lend the money which is repaid with the agreed upon interest. A few years later the State of New York prosecutes the person for fraud claiming that he hoodwinked the bank by claiming a fraudulent valuation based on the Zillow estimate.

That is Justice in New York.

 

It wasn't theft though(certainly not in the traditional sense), it was speculative investments. By estimating the value that he did, Trump often bet on the projects continuing to increase in relative value(and by using said projections in the filing, that's how he got lower loans.). It would've worked out fine, if the projects increased in said value.

But it didn't. And so now the banks, etc feel cheated.(But they weren't, they effectively took the same gamble he did.). If they wanted to apply this consistently, they'd apply it to every speculative investor in the market(of course, they don't) because without speculative investment, banks would lose a lot of capital.

Which is why this really BIG number doesn't make sense. If they are upset that the value didn't match the loan(because it wasn't as high as Trump thought), then the value should match what it actually was. Instead, the state of NY acts like it lost out on funds, but it didn't.

Instead, the projects just didn't grow as successfully as speculated. What this will do for other NY investors, is they will now intentionally downplay investment gains. Since NY took this stance as 'robbing the marketplace', it is now legally preferred to under report than over report.

They may even decide that there's a certain financial number that once you reach it, you reach the ire of the NY State and this will cause sells of shares of a company, once it reaches that number(IE: Shaving it off, to keep the ledger under)

In any event, NY can expect to see less huge investment gains, since said gains aren't appreciated under NY law.

 

If you have studied the New York justice system and documented pervasive malfeasance, I have not seen your study.

 

DB did analyze and reduce the valuation. They agreed to the loan conditions. There is no fraud.

https://www.wsj.com/articles/donald...ct-arthur-engoron-trump-organization-dde7e87b

 

It's always comedy gold reading Trump loving rightists posts pretending to be legal experts after every trial their hero loses.

 

Actually they have made raids legal on any company they choose. And acceptable according to progressives.
All businesses now operate on the promise that "We were only after Trump. We will leave you alone."

 

What do you believe will happen to you — or anyone else — that goes into a bank and lies about their assets and commercial income?

 

The bank will verify the claims made by anyone applying for a loan just as DB did in the Trump loan and my Zillow post upthread.

 

They didn’t though — those valuations were taken using fraudulent numbers. They openly lied both about the income the properties were producing (which is the main factor in commercial loans) as well as their physical value.

 

DB did their own analysis and adjusted the valuations down and still granted the loan.

 

How can a bank verify that income a commercial building is generating is 100% factual.

Let’s say you own a 5 unit apartment building and you go to a bank for a cash out refi — two of those units are empty, and the other three rent at 800 each.

You report the building is valued at 600k based on units being fully occupied at 1k per month.

The bank accepts your numbers and gives you the loan but you still pay it back.

Is this fraud?

 

Current Income has nothing to do with valuation.

 

What?!

It has everything to do with valuations of commercial properties. I now understand how you view this is a not an issue of fraud then because you are looking at it like a personal residential loan.

I submit these types of reports to banks weekly — what they are earning as well as potential earnings have a huge play in valuation.

Go to Google (or your preferred search platform) and type in “how are commercial properties valued”

Here are my first two results



So I will go back to my prior example, how is lying about the income of the property not fraud?

 

Looks like you are going to have to add another line.
350 million dollar fraud verdict

 

Not a real analogy to this case. A real analogy is that when you walked into the bank, you told them the square footage of the house was double its true square footage, and that your house was worth 4 million.
And you told them all of that was true and they could rely on it.

 

When I got a HELOC a couple years ago, I never was asked to state the value of my home because the lender had an appraiser come and value it. If I had used my home as collateral for a business loan, I am pretty sure my business financial statements would be legal documents that I would attest are accurate under penalty of the law. It is one thing to say a house is worth 500k when its appraised at 400k, quite another to say the house is three times bigger than it really is and then sign attesting to the accuracy of the statement. Sorry but if this had been a minor delta in appraised values to stated values, this would not be a crime. As the judge documented in his decision, the pattern was clearly set across many different properties and statements. Trump is a fraud, why you think otherwise is beyond me.

 

The Trump family has been known for years to not pay their bills, to be nefarious on their business dealings, Hell, they bankrupted a CASINO. There is a very long history of Donald Trump, and his constant skirting of the rules and laws in NY. And everyone on the right acted like the day he decided to run for POTUS, everyone started lying about his financial dealings. It like Trumpers were born on the day he decided to run for president.

 

If you can't do the time (or the fine), don't do the crime.

 

The bank analyzed the properties for what the banks could sell the assets for.

 

It’s exactly the same. The person submitted his valuation and the bank reviewed it. And granted the loan. The bank could have disagreed.

 

It's not even close to the same. LOL