NEW YORK (AP) \u2014\u00a0Donald Trump\u2019s\u00a0top corporate deputies considered adding a \u201cpresidential premium\u201d to his Trump Tower penthouse, Mar-a-Lago resort and other assets during his White House years, a gambit that would\u2019ve padded his net worth by nearly $145 million, an executive at the former president\u2019s company testified Friday.<\/p>\n\n\n\n
Trump Organization Assistant Vice President Patrick Birney told Trump\u2019s\u00a0New York civil fraud trial\u00a0that they ended up scrapping the idea, but state lawyers contend that merely going through the exercise underscores how Trump and his underlings were intent on finding ways to beef up his bottom line. Trump is expected to return to court for the\u00a0trial next week.<\/p>\n\n\n\n
Birney said Trump executives considered tacking 25% onto the Trump Tower apartment\u2019s listed value as a \u201cpremium for presidential personal residence\u201d in 2017, his first year in office. They weighed doing the same for Trump\u2019s winter and summer homes at Mar-a-Lago and his Bedminster, New Jersey, golf club, Birney said.<\/p>\n\n\n\n
A 25% \u201cpresidential summer residence\u201d premium would\u2019ve added $18.9 million to the Bedminster golf club\u2019s price tag on Trump\u2019s annual financial statements, Birney said, increasing its listed value to about $145 million. Trump executives gamed out adding 15% premiums for other properties where Trump didn\u2019t spend much time. At one point, they considered adding a 35% \u201cEx-President\u201d premium to certain assets.<\/p>\n\n\n\n
Birney was testifying at the end of the second week of a non-jury trial in New York Attorney General Letitia James\u2019\u00a0fraud lawsuit\u00a0and will return on Monday. He is the third Trump Organization executive to take the witness stand, following longtime Chief Financial Officer Allen Weisselberg and Senior Vice President and Controller Jeffrey McConney. Both of them are defendants in the case and have since retired.<\/p>\n\n\n\n
In a pretrial decision last month, a judge ruled that Trump and his company committed years of fraud by exaggerating the value of Trump\u2019s assets and net worth on his financial statements. Those documents were given to banks, insurers and others to make deals and secure financing.<\/p>\n\n\n\n
As punishment, Judge Arthur Engoron ordered that a court-appointed receiver take control of some Trump companies, putting the future of Trump Tower and other properties in doubt, but an appeals court paused that from taking effect, for now.<\/p>\n\n\n\n
The trial concerns related allegations of conspiracy, insurance fraud and falsifying business records. James, a Democrat, is seeking $250 million in penalties and wants Trump and other defendants banned from doing business in New York.<\/p>\n\n\n\n
Birney, the only witness to testify Friday, indicated Trump executives started pondering a potential \u201cpresidential premium\u201d as they sought ways to recoup a loss in value incurred from correcting the size of Trump\u2019s 10,996 square foot Manhattan penthouse, which had been wrongly valued for years at nearly three times that square footage.<\/p>\n\n\n\n
That fix was made in Trump\u2019s 2017 financial statement, after Forbes magazine published an article revealing the true size of the Trump Tower apartment. At the same time, the Trump Organization was going through what McConney previously dubbed a financial \u201cclean up,\u201d scrubbing some pay practices and financial arrangements in the wake of Trump\u2019s election.<\/p>\n\n\n\n
\u201cWas applying a presidential premium to a series of assets something you would have done on your own?\u201d state lawyer Eric Haren asked.<\/p>\n\n\n\n
\u201cNo,\u201d Birney said.<\/p>\n\n\n\n
\u201cWho directed you?\u201d the lawyer asked.<\/p>\n\n\n\n
\u201cI don\u2019t really remember, but probably Allen Weisselberg,\u201d Birney responded.<\/p>\n\n\n\n
He said one of the discussions he had with Weisselberg about valuing Trump\u2019s properties happened in a Trump Tower bathroom.<\/p>\n\n\n\n
Weisselberg testified Tuesday that, in some years, he instructed McConney to add a 30% premium to the values listed for Trump\u2019s golf courses on his financial statements. McConney testified last week that, years before Trump became president, he increased the value of Trump\u2019s penthouse one year by $20 million partly because of his celebrity.<\/p>\n\n\n\n
At the same time, Trump\u2019s financial statements included a clause professing that they did not include any premiums based on his \u201cworldwide reputation.\u201d<\/p>\n\n\n\n
As for the \u201cpresidential premiums\u201d exercise, Birney said he understood they were removed from consideration in October 2017 and weren\u2019t included in any of Trump\u2019s financial statements.<\/p>\n","protected":false},"excerpt":{"rendered":"
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