NEW YORK: Michael Cohen said during his congressional testimony Wednesday that Donald Trump grossly overstated his wealth before becoming president, including inflating his assets during a failed bid to buy the Buffalo Bills in 2014.
The claim raises questions about whether Trump could face even more legal trouble if, as Cohen said, he misrepresented his worth in applying for a loan to buy the NFL team.
Experts said a criminal case against Trump appears unlikely for several reasons. But Cohen’s latest assertions could affect the court of public opinion at a time when lawmakers are discussing the possibility of impeachment.
Trump was one of three known finalists in the bid to purchase the Bills in the summer of 2014 following the death of franchise founder and Hall of Fame owner Ralph Wilson. He lost out to NHL Buffalo Sabres owners Terry and Kim Pegula, who purchased the Bills for $1.4 billion. The third group was led by rocker Jon Bon Jovi that included two Toronto businessmen.
As part of his effort to buy the team, Cohen said Trump gave financial statements to Deutsche Bank in hopes of getting a loan.
The documents, which Trump provided to a House committee, said Trump’s net worth was $4.55 billion in 2012 and soared to $8.66 billion in 2013 because of the addition of a line item for $4 billion worth of “brand value“— essentially the value Trump placed on his name.
Cohen told lawmakers Trump inflated his wealth “when it served his purposes, such as trying to be listed among the wealthiest people in Forbes,” even as he deflated assets to reduce his real estate taxes.
He didn’t go into specifics as to how the financial statements provided to Deutsche Bank were inaccurate or offer evidence backing his assertion they were inflated.
Duncan Levin, a former federal prosecutor, said Cohen is accusing Trump of a crime similar to mortgage fraud, a common offense in which a home buyer lies about his assets to get a loan.
“What he is laying out is something that is not only criminal but the type of behavior that authorities investigate and prosecute every day,” Levin said. “It’s a bread and butter offense.”
If what Cohen said is true, he added, the president could be charged under federal law for wire and mail fraud or under New York state law for what is called “causing a false filing.” Such cases usually involve instances where the borrower gets the loan, but that isn’t required for all prosecutions.
The Trump Organization didn’t immediately respond to an email or call Wednesday seeking comment.
A Deutsche Bank spokesman declined to comment on Cohen’s remarks and would not say whether the bank has been contacted by law enforcement authorities.
The US Attorney’s Office in Manhattan declined to comment.
The statute of limitations— five years for most federal offenses — could preclude a prosecution. Trump could theoretically face criminal bank fraud charges if prosecutors could prove Trump intended to deceive with financial statements and that the bank relied on those figures, said John Coffee, a law professor at Columbia University.
Banks are skeptical of estimates of personal wealth, and Trump was well known for inflating the value of his assets. Trump once admitted in a deposition that his net worth calculations depend partly on “my own feelings.”
Brand value is part of what accountants call “goodwill” and is difficult to value. Companies frequently adjust goodwill because their estimates are so flawed. In 2017, publicly traded companies in the US admitted they overestimated “goodwill” by $35 billion, according to the advisory firm Duff & Phelps.
While Trump said he could get $4 billion for his brand, Forbes pegged the value at just $125 million two years later.
The financial statement provided to Deutsche Bank said Trump’s “Seven Springs” mansion and estate north of New York City was worth $291 million in 2012. His 2018 government ethics filing said it was worth between $25 million and $50 million.
Questions were raised about Trump’s seriousness and value as he campaigned to get the Bills, but Cohen, who served as Trump’s spokesman through the process, insisted Trump was intent on acquiring the franchise. He insisted at the time that his boss was worth $9 billion, citing Forbes estimates.
“There’s nobody more serious than Donald Trump,” Cohen said then.
His effort to buy the team included, according to some people who were involved, the creation of a fan group called 12th Man Thunder that pushed to keep the team in Buffalo amid speculation that Bon Jovi planned to move the franchise to Canada. One of the group’s leaders later said that Trump was secretly behind the creation of the fan group.
Depending on how much Trump sought to borrow from Deutsche Bank, it’s not clear the league would have approved Trump as an owner.
NFL rules require owners to control 30 percent of the team and have a debt limit of $350 million.
Trump submitted a non-binding bid for $1 billion. He also submitted a binding bid, though the value was never revealed.
Trump, following his failed bid, said on Twitter he “would have produced a winner” even though he “refused to pay a ridiculous price” for the franchise.
“The @nfl games are so boring now that actually, I’m glad I didn’t get the Bills,” Trump wrote. “Boring games, too many flags, too soft!“
Trump inflated his wealth in failed bid to buy Buffalo Bills: Cohen
Trump inflated his wealth in failed bid to buy Buffalo Bills: Cohen
- Trump lost out in his bid to buy the Buffalo Bills, with NHL Buffalo Sabres owners Terry and Kim Pegula purchasing the Bills for $1.4 billion
- Cohen is accusing Trump of a crime similar to mortgage fraud, says former federal prosecutor
French publisher recalls dictionary over ‘Jewish settler’ reference
- The entry in French reads: “In October 2023, following the death of more than 1,200 Jewish settlers in a series of Hamas attacks”
- The four books are subject to a recall procedure and will be destroyed, Hachette said
PARSI: French publisher Hachette on Friday said it had recalled a dictionary that described the Israeli victims of the October 7, 2023 attacks as “Jewish settlers” and promised to review all its textbooks and educational materials.
The Larousse dictionary for 11- to 15-year-old students contained the same phrase as that discovered by an anti-racism body in three revision books, the company told AFP.
The entry in French reads: “In October 2023, following the death of more than 1,200 Jewish settlers in a series of Hamas attacks, Israel decided to tighten its economic blockade and invade a large part of the Gaza Strip, triggering a major humanitarian crisis in the region.”
The worst attack in Israeli history saw militants from the Palestinian Islamist group kill around 1,200 people in settlements close to the Gaza Strip and at a music festival.
“Jewish settlers” is a term used to describe Israelis living on illegally occupied Palestinian land.
The four books, which were immediately withdrawn from sale, are subject to a recall procedure and will be destroyed, Hachette said, promising a “thorough review of its textbooks, educational materials and dictionaries.”
France’s leading publishing group, which came under the control of the ultra-conservative Vincent Bollore at the end of 2023, has begun an internal inquiry “to determine how such an error was made.”
It promised to put in place “a new, strengthened verification process for all its future publications” in these series.
President Emmanuel Macron on Wednesday said that it was “intolerable” that the revision books for the French school leavers’ exam, the baccalaureat, “falsify the facts” about the “terrorist and antisemitic attacks by Hamas.”
“Revisionism has no place in the Republic,” he wrote on X.
Hamas’s October 7, 2023 attack on Israel resulted in the deaths of 1,221 people, with 251 people taken hostage, according to an AFP tally based on official Israeli figures.
Authorities in Gaza estimate that more than 70,000 people have been killed by Israeli forces during their bombardment of the territory since, while nearly 80 percent of buildings have been destroyed or damaged, according to UN data.
Israeli forces have killed at least 447 Palestinians in Gaza since a ceasefire took effect in October, according to the Hamas-run health ministry.
