The $250 million civil trial for fraud of the Trump Organization that began this week with much acclaim in a Manhattan courtroom will bring Trump’s Hudson Valley holdings to public prominence.
The Trump Organization has yet to decide whether it will continue to operate the three major holdings: Trump National Golf Club Hudson Valley, in Hopewell Junction, and the historic Seven Springs Estate in Bedford North Castle and New Castle.
The three facilities were included in a case brought by the state Attorney General Letitia J. James. She alleged that Trump Organization had exaggerated its holdings on its financial statements that are used by lenders to determine whether or not they approve loans.
In late September, Supreme Court Justice Arthur Engoron ruled that Trump had committed fraud by exaggerating the valuations of Trump Tower, Mar-a-Lago, Seven Springs and his golf courses in the Hudson Valley.
More Check out the golf courses that Donald Trump owns
The trial is not expected to end until December. It will cover six claims including the amount of penalties that Trump Organization must pay to New York State. James wants $250 million in damages and to ban Trump from doing business in New York.
This could have an impact on Trump’s golf course in Briarcliff or Hopewell Junction. This could determine the fate Seven Springs, a sprawling estate of more than 200 acres on which Trump proposed to build a world-class luxury housing and golf course. Trump’s golf course proposal was rejected, so he scaled it back to a smaller luxury housing development.
The final approval for seven lots in Bedford was never granted. This led to Trump’s 2016 decision to place much of the land in a conservation easement.
Former President Donald Trump (right), jokes with Patrick Reed (left), at the first tee of the Pro-Am at LIV Golf. Geoff Burke – USA TODAY Sports
Trump, who is the Republican nominee for President in 2024 and faces four indictments for state and federal crimes, appeared before the court the first two days. He has performed his trademark political theater outside the courtroom by attacking the judge and legal process.
Trump said Monday that “this is a judge who should be barred from the bar.” “This judge should not be in office.” Some people believe that this judge could be criminally charged for his actions. “He’s interfering in an election and it’s disgraceful.”
Steve Vescio, the mayor of Briarcliff Manor said that he is concerned about the possibility that Trump will lose control over the course he bought in 1996 for $7.5 Million from the struggling Briarhall Golf and Country Club. The new Trump National course was opened in 2002 after an investment of $45 million.
Vescio’s father, William, who clashed against the Trump Organization as village mayor between 2004 and 2015, is concerned that another entity may not maintain a course to the same standard as the Trump Organization.
Vescio stated that there was a lengthy approval process and Trump had reactivated an area which had been neglected. They have taken care of the land and worked well with village. “They’ve been good neighbors.”
Engoron discovered that between 2013 and 2020, Trump’s reports on financial conditions included a 15% or 30% premium based on Trump brand on seven golf course, including Trump National Hudson Valley, in Hopewell Junction.
In 2014, Trump valued the golf course portion of Trump National at Briarcliff Manor at $16.5million when it considered donating a conservation easement. In his financial report for the same year, Trump’s club value had more than tripled from $16.5 million to $73,000,000.
Trump’s legal team argued that the appraisers used an “fixed assets” method to value the higher price, which included the money Trump spent on the acquisition and maintenance of the property. Engoron, however, found that such a valuation is “false and misrepresentative.”
He wrote: “The price at which you buy property is not always the price you can sell it for.”
The lawsuit alleges also that Trump inflates the value of Trump National Hudson Valley, because the financial statement does not disclose the fact that Trump has a leased property and fails to account for the rent paid by the company to the landlord.
David McKay Wilson is a writer who writes about tax and government issues. Follow him on twitter @davidmckay415 and email him at [email protected]
