If the #TrumpOrg had used the advised 4.5% cap, then #Trump's share would have = $461M, ~$512M less than the final #TrumpOrganization reported amt.
That’s financial #fraud.
The next year, the #TrumpOrganization, used the same low cap rate, #NYAG Haren asked Birney who told him to use such a low cap rate.
#Birney: "Allen #Weisselberg”
(in the bathroom.)
Birney, who still currently works at the #Trump Org, under expert questioning by the NYAG, revealed one way they’d inflate Trump's net worth.
Capitalization rates or “cap rates” are the most popular way to measure a #commercial #RealEstate investment’s #profitability & return potential.
A #CapRate is usually determined using the net income the property is expected to generate. You calculate it by dividing the net operating income by the property asset value. The resulting cap rate is expressed as %.
#CushmanWakefield suggested to #Birney that the cap rate for midtown should be mid-4s. The #TrumpOrg ended up using a cap rate of 2.67%.
Back to the questioning of #TrumpOrg Asst VP Patrick #Birney by #NYAG:
NYAG atty Haren examined comms between the #TrumpOrganization & #CalebMelby, a reporter worked at #Forbes & but now works at #Bloomberg. He worked on Trump’s #NetWorth estimates for @business.
Birney contacted real estate firm #CushmanWakefield for info on #CapRates.
#legal #law #civil #conspiracy #fraud #LetitiaJames #TrumpTrial #Day9
Another interesting detail:
While #NYAG questioned #Birney about the spreadsheets & notations, Birney testified that Allen #Weisselberg directed him to use a specific rate to boost the value of #TrumpTower.
NYAG: “Where did that conversation occur?
Birney: “In the restroom of Trump Tower.”
(which calls to mind…)
After #Birney described the bizarre valuation processes, it was noted that the “presidential premiums” weren’t in the final statements of financial conditions as such.
The fudged valuations on the other properties occurred immediately after the #Forbes article exposed that #Trump had falsely reported the square footage & subsequently the valuation of Trump’s apartment.
Basically, they were trying to find a way boost his #NetWorth.
Bloomberg email, May 30, 2018:
“Thanks again for the call. My editor is wondering when we’ll get comment. He hopes soon.“
#Birney was then shown his corresponding email from May 2018:
“I need both the Midtown & Downtown sales for an urgent matter.”
He testified that he believed he was referring to the Bloomberg inquiry.
These details are intended to show the amount of effort spent trying to make #Trump appear richer, because of #vanity. bc w/ #banks, #insurers, etc they’d deflate numbers.
Before the trial, Justice #Engoron's #dissolution order contained a passage about the application of the "Trump Brand Premium" on his golf clubs.
(pic)
#Weisselberg was shown fact-checking emails from #Forbes about #Trump's #NetWorth during his testimony.
Today, #Birney was shown emails from #Bloomberg reporters #FactChecking Trump's net worth.
The clipping & note were entered into evidence (pic).
On the clipping, there's adding machine notation showing calculation of price per acre.
The handwritten notations are "probably"
#Weisselberg's, #Birney says.
BWY producer's estate sold for $105M.
Next, #Birney was shown an email that Weisselberg sent to him on Sept. 10, 2019, subj "For the SOFC," (stmnt of financial condition)
#Trump #TrumpOrganization #law #fraud #conspiracy #ego #greed
#Birney was questioned by #NYAG counsel Eric Haren.
Haren shows Birney a newspaper clipping about a Palm Beach #RealEstate property w/note from #Weisselberg.
The article is about an estate owned by a Broadway producer (Terry Allen Kramer) that’s listed for $135M.
Weisselberg’s note says,
"Let's see what it ends up selling for."
It’s #Day9 of the #TrumpTrial parties went immediately to sidebar at the start.
#TrumpOrganization Asst VP #PatrickBirney returned to the stand. #Birney testified yesterday that he largely relied on #Weisselberg & controller Jeff #McConney to assemble #Trump's annual #financial stmnts.
#NYAG #Wallace highlighted Birney's statements during his opening as evidence of an alleged #conspiracy w/in the #TrumpOrg to #inflate Trump's #NetWorth.
"He likes to see it go up," Birney said.
Nonilex