An ex-Trump Organization executive admitted on the stand Tuesday that former President Donald Trump’s Florida base Mar-a-Lago was valued as a private residence instead of a social club, according to reports.
The Mar-a-Lago valuation is a key part of Attorney General Letitia James’ $250 million lawsuit that claims Trump Organization leadership defrauded lenders and investors by inflating the worth of company holdings, notes Messenger reporter Adam Klasfeld.
The company's former controller and co-defendant Jeffrey McConney took the stand Tuesday to defend Trump Org.'s valuations, among them Mar-a-Lago, according to Law360 reporter Stewart Bishop.
"Our intention was always to reflect as best we could the value of these properties," McConney said, according to Bishop.
McConney reportedly testified he could not remember why the “ultra exclusive” Mar-a-Lago Club — which boasts a restaurant, beach club, spa and a “sumptuous” grand ballroom — was valued as a residence, reporters said.
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James contends this was an act of fraud meant to circumvent property restrictions that limited development and, therefore, the value of the land.
Trump attorney Jesus Suarez submitted evidence showing that Mar-a-Lago’s valuation dropped between 2014 and 2015 from about $405 million to $347 million, according to Klasfeld.
McConney also took the stand Monday to refute the testimony of an outside accountant who said the Trump Organization controller withheld financial documents.
McConney is the lone witness scheduled to testify before a Thanksgiving break, ABC News reports..
