In a civil trial in New York, an ex-employee of Donald Trump’s, Allen Weisselberg, who served as the chief financial officer (CFO) of the Trump Organization, admitted that Trump had been inflating the size of his signature Trump Tower apartment. This revelation comes amidst accusations that Trump and several executives engaged in fraud, falsification of business records, issuing false financial statements, and conspiracy. The trial, which has been portrayed by Trump as a “witch hunt,” could result in a $250 million fine for Trump’s company and a ban on Trump conducting business in New York if the judge supports the prosecutors.
Weisselberg testified that financial records overstated the size of the flat by 20,000 square feet, with the true size being around 10,000 square feet. However, he emphasized that the apartment’s value in relation to Trump’s net worth was insignificant. Weisselberg’s testimony also revealed that there were more significant concerns regarding other items on the statement of financial condition. The judge intervened at one point to remind Weisselberg to focus on answering the questions instead of giving speeches.
This controversy regarding the size of Trump’s apartment dates back to 1994 when a document showed that Trump claimed the penthouse measured 10,996 square feet. Subsequently, it was listed as being 30,000 square feet from 2012 onwards, even though Weisselberg admitted that the true size is only about one-third of that figure. These inflated measurements were provided to banks and insurers to secure deals and loans.
Weisselberg’s credibility has come under scrutiny due to his conviction for tax fraud in 2022, which resulted in him serving a three-month jail sentence. Prosecutors in his case argued that he benefited from a company scheme that included financial rewards and luxury perks. Donald Trump’s sons, Donald Jr and Eric, who took over management of the Trump Organization, are co-defendants in the civil case.
While there is no jury for this trial, the judge’s ruling will have significant consequences if it favors the prosecutors. Trump and his company may face a $250 million fine, and Trump could be prohibited from conducting business in New York. This trial has brought attention to the glitzy New York buildings that Trump could potentially lose if the outcome does not favor him.
