A document submitted in the civil fraud case against former President Donald Trump by New York Attorney General Letitia James has unveiled a crucial piece of evidence. The document, submitted by Jeffrey McConney, the former corporate controller of the Trump Organization, contradicts Trump’s earlier testimony, indicating his direct involvement in altering financial statements to inflate his net worth.
McConney, a longstanding employee of the Trump Organization, testified on Tuesday that Trump would routinely review and approve financial statements before their finalization and distribution to lenders, insurers, and other entities. This testimony directly contradicts Trump’s claim in his recent deposition that he did not scrutinize the statements and relied on accountants and executives for their preparation.
The submitted document, a 2011 financial statement draft, contains handwritten notes and corrections made by Trump himself. Notably, these notes reveal Trump’s intent to increase the values of specific assets, including golf courses and his personal brand, by millions of dollars. Furthermore, the document shows that Trump crossed out a line indicating that the financial statement adhered to generally accepted accounting principles.
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Attorney Joe Gallina, closely following the case, labeled the document a “smoking gun” that could establish Trump’s awareness and involvement in the alleged fraud. During an interview with Mary Trump, the former president’s estranged niece, Gallina emphasized that this discovery could be a pivotal moment in the New York City fraud case.
Mary Trump expressed little surprise at the document’s contents, attributing it to her uncle’s “malignant narcissism” and “delusional grandiosity.” She asserted that Trump consistently lied about his wealth and success, showing no regard for the law or the truth.
The civil fraud case, initiated by Attorney General Letitia James in September after a two-year investigation into Trump’s business practices, accuses Trump, three of his children, his company, and two executives of defrauding lenders, insurers, and other entities through false and misleading financial statements spanning over a decade. The lawsuit seeks damages and penalties exceeding $250 million and aims to prohibit Trump and his family from leading any company in New York.
Trump, steadfastly denying any wrongdoing, dismissed the case as a “political witch hunt.” He accused James, a Democrat and potential gubernatorial candidate, of bias and labeled the presiding judge, Arthur Engoron, as “psycho.” Despite Trump’s attempts to delay and dismiss the case, Judge Engoron ruled that Trump and other defendants engaged in fraud, ordering them to face trial on charges of conspiracy, insurance fraud, and falsifying business records.
This civil fraud case adds to the array of legal challenges confronting Trump, including a criminal investigation by the Manhattan district attorney and a congressional inquiry into his role in the January 6 Capitol riot.
