Trump Organization Considered 'Presidential Premium' To Boost Value

A company executive testified that the "premium" would’ve padded the former president's net worth by nearly $145 million.

NEW YORK (AP) — Donald Trump’s top corporate deputies considered adding a “presidential premium” to his Trump Tower penthouse, Mar-a-Lago resort and other assets during his White House years, a gambit that would’ve padded his net worth by nearly $145 million, an executive at the former president’s company testified Friday.

Trump Organization Assistant Vice President Patrick Birney told Trump’s New York civil fraud trial that 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 trial next week.

Birney said Trump executives considered tacking 25% onto the Trump Tower apartment’s listed value as a “premium for presidential personal residence” in 2017, his first year in office. They weighed doing the same for Trump’s winter and summer homes at Mar-a-Lago and his Bedminster, New Jersey, golf club, Birney said.

A 25% “presidential summer residence” premium would’ve added $18.9 million to the Bedminster golf club’s price tag on Trump’s 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’t spend much time. At one point, they considered adding a 35% “Ex-President” premium to certain assets.

Birney was testifying at the end of the second week of a non-jury trial in New York Attorney General Letitia James’ fraud lawsuit and 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.

In a pretrial decision last month, a judge ruled that Trump and his company committed years of fraud by exaggerating the value of Trump’s assets and net worth on his financial statements. Those documents were given to banks, insurers and others to make deals and secure financing.

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.

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.

Birney, the only witness to testify Friday, indicated Trump executives started pondering a potential “presidential premium” as they sought ways to recoup a loss in value incurred from correcting the size of Trump’s 10,996 square foot Manhattan penthouse, which had been wrongly valued for years at nearly three times that square footage.

That fix was made in Trump’s 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 “clean up,” scrubbing some pay practices and financial arrangements in the wake of Trump’s election.

“Was applying a presidential premium to a series of assets something you would have done on your own?” state lawyer Eric Haren asked.

“No,” Birney said.

“Who directed you?” the lawyer asked.

“I don’t really remember, but probably Allen Weisselberg,” Birney responded.

He said one of the discussions he had with Weisselberg about valuing Trump’s properties happened in a Trump Tower bathroom.

Weisselberg testified Tuesday that, in some years, he instructed McConney to add a 30% premium to the values listed for Trump’s golf courses on his financial statements. McConney testified last week that, years before Trump became president, he increased the value of Trump’s penthouse one year by $20 million partly because of his celebrity.

At the same time, Trump’s financial statements included a clause professing that they did not include any premiums based on his “worldwide reputation.”

As for the “presidential premiums” exercise, Birney said he understood they were removed from consideration in October 2017 and weren’t included in any of Trump’s financial statements.

Popular in the Community


What's Hot