The Democrat Party lawfare against Donald Trump hit a major roadblock.
Now it’s damage control time.
And this star witness just destroyed the Democrat’s case against Trump.
A Deutsche Bank AG executive gave testimony that it is not unusual for loan clients to overstate their net worth, and that banks rely on their own calculations.
The fraud lawsuit brought by New York Attorney General Letitia James claims that the Trump Organization overvalued its properties in order to get better bank loans.
The state of New York is looking for $250 million in penalties and a ruling that would in future prevent the Trump Organization from conducting business in the state.
“Is the bank capable of reaching its own judgment based on the evaluation it makes of the guarantor’s financial condition?” Trump attorney Jesus Suarez asked David Williams, a managing director at Deutsche Bank.
“Certainly, yes,” he responded.
“As part of our due diligence, we subject a client’s asset value to adjustments,” Williams said. “It’s part of our underwriting process. We apply it to every client regardless of what’s reported.”
“Is a difference of opinion in asset values between the client and the bank a disqualifying factor to extend credit?” Suarez asked Williams.
“No,” he replied.
“It’s just a difference of opinion. … I think we expect clients to provide information to be accurate.” But Williams added that such financial statements are made “largely relying on the use of estimates.”
Williams said that it’s “atypical, but not entirely unusual” for the bank to cut a client’s stated asset value by fifty percent but still approve the requested loan.
Former President Donald Trump highlighted the fact that the banks repaid at the agreed on interest and that no loss was suffered.
This is the first time in New York in which a borrower has been sued for fraud with no victim.
Before testifying in early November, Trump told reporters that his company’s financial statements were “very conservative,” adding, “So therefore there’s no fraud.”
After testifying, Trump said, “There’s no case here. There are no victims. The banks aren’t a victim. The insurance companies aren’t a victim. Everybody got paid.”
“The attorney general of this state is a disgrace. Letitia James is a disgrace to our country and to the state of New York,” Trump added.
“She should focus on all of the violent crimes and the murder going on in New York, not on somebody who paid back the banks in full without a default and in many cases paid them back early,” he said.