The Trump Organization allegedly contemplated implementing a “presidential premium” on Donald Trump‘s properties during his term, aiming to bolster the former president’s net worth by about $145 million.
What Happened: Patrick Birney, the assistant vice president of the Trump Organization, in a testimony in a New York fraud trial on Friday, revealed that the idea was eventually discarded but state attorneys argue that the plan underlines Trump’s intent to amplify his profits, the Associated Press reported.
Birney testified that Trump’s executives contemplated adding a 25% “premium for presidential personal residence” in 2017 to the value of Trump’s properties, including his Trump Tower apartment and his residences at Mar-a-Lago and his Bedminster, New Jersey, golf club.
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A 25% “presidential summer residence” premium would have increased the Bedminster golf club’s listed value to roughly $145 million. The executives also considered adding 15% premiums for other properties where Trump spent less time, and even a 35% “Ex-President” premium to certain assets.
Why It Matters: The fraud lawsuit, initiated by New York Attorney General Letitia James, involves allegations of conspiracy, insurance fraud and falsified business records. James is seeking $250 million in penalties and aims to ban Trump and other defendants from conducting business in New York.
Birney also indicated that the “presidential premium” idea arose as the organization sought to recover a loss in value resulting from a reduction in the size of Trump’s Manhattan penthouse. The correction was made in Trump’s 2017 financial statement following an article by Forbes revealing the true size of the apartment.
Birney, who was the only witness to testify on Friday, will return to the witness stand on Monday. The trial is expected to continue next week with Trump’s return to court.
This illustration was generated using artificial intelligence via MidJourney.
