tv At This Hour With Kate Bolduan CNN September 21, 2022 8:00am-9:00am PDT
arbiters. poppy, despite the pressure from gop officials, there's no sign that card companies will back down at this point. >> it's a really significant change, and we'll watch it closely. matt egan, thank you for highlighting it for us. thanks for joining us today. we'll see you back here tomorrow morning. i'm poppy harlow. >> i'm jim scuitto, president biden will speak in minutes. our coverage continues with kate bolduan right now. hello, everyone. at this hour, we are moments away from a major speech from president biden, speaking before the united nations general assembly any minute in and out. we see the president entering the u.n. this morning, the who you says the they need to do more to support ukraine and firmly rebuke russia for its unprovoked war.
biden's speech comes at a very interesting time. it's just hours after vladimir putin announced he's calling up 300,000 reservists, more troops to fight in ukraine's war. noteworthy as his remarks come after a string of humiliating losses on the battlefield. this is putin also raised in his remarks the possibility once again of using nuclear weapons. kaitlan collins is live for us here in new york. what is president biden expected to lay out in his remarks? >> well, this speech was always going to be focused on ukraine, but just a few hours ago, it adds a new twist. he was obviously going to offer the commitment, the full commitment of the united states for ukraine, talk about not just what the united states should be doing, but other nations calling for action as well, which is
what you've seen from dozens of nations ever since the invasion happened. we are told president biden will be directly responding to that speech from president putin this morning, calling up for the mobilization of some 300,000 russian forces he clearly so desperately needs, the white house believes, on the ground in ukraine. they have suffered so many setbacks, so many issues ever since the invasion started. the white house is not surprised. they were expecting president putin to give this speech. it's not like a dramatic rewriting of what president biden was going to say, but you will see him directly respond to this. it is viewed as a sign of weakness in the white house's estimation of president putin's war, and just a sign of the struggles that he has faced. you saw putin railing again western leaders and money to ukraine.
there will be a good question of if he chooses to respond to the nuclear rhetoric. he didn't say it out front, but he was pretty clear about the unveiled threat, so that is some the white house has tried to tamp done, that they don't believe russia has taken actions behind the scenes on that. we'll see when he speaks. >> i'm going to go to the announcement from putin and the most significant russian escalation since the war in ukraine began. a mobilization of 300,000 more soldiers, as his forces suffer major setbacks. the russian leader did lay out a new veiled nuclear threat toward the west. ben wedeman is live in kyiv for us this hour. >> reporter: ukrainian officials have been somewhat dismissive of this announcement, but we heard
from president zelenskyy, who said it was no surprise given the high level of desertions in the russian ranks. we heard the foreign minister say that this is a good time to redouble western aid to ukraine certainly this has been a consistent theme for quite some time, that in order to counter the russian invasion, it needs more weapons and more sophisticated weapons. president zelenskyy in particular in recent weeks has been stressing the need for air defense systems, given that the russians seem to be targeting civilian infrastructure. in fact, here in kharkiv t. there was a russian missile strike seems to be targeting the railroad system. finally we heard from the mayor of kyiv, who said reacting to president putin's speech, that putin has launched the process
that will bury him. kate? >> ben, thank you so much for being there. kaitlan collins is back with us. also chief national security correspondent and anchor jim ch scuitto and retired general mark hertling. general, let me start with you. the white house says that this is an admission of failure by putin. let me play what john kirby said just this morning. >> it's definitely a sign he's struggling. we know that, he has terrible morale, unity cohesion on the battlefield, command and control has still not been so solved, and he 'forcing wounded back into the fight. he's on his back foot. >> general, do you agree? >> absolutely, katy.
it's prescient in terms of what may happen in the future. this is a physics problem. russia cannot generate an additional force of 300,000 soldiers to come on the battlefield from a reserve force, especially since those individuals don't want to do it. we are seeing massive purchases of one-way tickets out of russia to territories of different aged men. putin just provided a new rule to all of this, saying 18 to 65-year-old men cannot leave the country. so what we are seeing is a forced conscription of individuals who have lost their will to fight and their capability to fight. remember, russian soldiers aren't trained very well. when you're talking about lapses in times of service, you'll get an arm that's just more cannon fodder, i think the russian people know this. john kirby hits it right on the
head. this is an indication of how badly putin is losing. >> how long does it take to mobilize 300,000 new troops? >> we tried this during desert storm with a much less number of people, like 5,000 soldiers in a brigade. it took months to train them um to fight. so far we have not seen russia leaning toward training them. they just throw them in the fight. you know, kate, i got to tell you, in my view it will take months, if not years, to get that many people mobilized and have them, you know, report to their so-called duty stations. jim you can talk to me about
what you're hearing from your sourceses. how worried do you think president zelenskyy should be after this announcement, what did is it mean for nato allies? >> i asked the prime minister of estonia, kaja kallas, if she and her dun takes this nuclear threat seriously. she said, in no uncertain terms, she calls the threat, and it was real before today. now, the difference will be, and sinuses what barbara starr has been reporting and you've been hearing the same, the u.s. and nato versus not yesterday observed preparation of using nuclear weapons. that, of course, would be a more alarming step, but keep in mind this. putin lifted the veil on the nuclear threat with these comments. he said in so many words, this is not a bluff. if there's one lesson from
vladimir putin and his words and threads, that is, listen to what he says, because oftentimes he follows through. kaitlan, tell me more about what you're -- i think we see president biden walking into the u.n. general assembly. let's see if he's heading up to speak right now. let's listen in. president biden. >> mr. president, secretary-general, my fellow leaders, in the last year our world has experienced great upheaval. a growing crisis of food insecurity, record heat, floods and droughts, covid-19, inflation, and a brutal needless war, a war chosen but one man, to be very blunt. let us speak plainly. a permanent member of the united states security council invaded its neighbor, attempted to erase
the sovereign state from the map. russia has shame leslie violated the core tenets of the united nations charter. no more important than the clear prohibition against countries taking the territory of their neighbor by force. again, just today president putin has made overt nuclear threats against europe and a reckless disregard for the responsibilities. a non-proliferation regime. now russia is calling, calling up more soldiers to join the fight, and the kremlin is organizing a sham referendum to try to annex parts of ukraine, an extremely significant violation of the u.n. charter. we should see these outrageous acts for what they are. putin claims he had to act,
because russia was threatened, but no one threatened russia, and no one other than russia sought conflict. in fact, we warned it was coming, and many of you tried to avert it. just before he invaded, putin asserted, and i quote, ukraine was created by russia and never had, quote, real statehood. now we see attacks on schools, railway stations, hospitals, on centers of ukrainian history and culture. in the past, even more horrifying evidence of russia ace -- atrocities. mass graves uncovered, bodies
according to those -- showing signs of torture. this war is about extinguishing ukraine's right to exist as a state, plain and simple. ukraine's right to exist as a people. wherever you are, wherever you live, whatever you believe, that should not -- that should make your blood run cold. that is why 141 nation in the general assembly came together, and unequivocally condemned russia's war against ukraine. the united states has marshaled massive lives of community assistance and direct economic support for ukraine. more than $25 billion to date. our allies and partners around the world have stepped up as well, and today more than 40
countries represented in here contributed billions of their own money and equipment to help ukraine defend itself. the united states is also working closely with our allies and partners to impose costs on russia, to deter attacks against the ukrainian territory, to hold them accountability for what -- war crimes. if nations can pursue imperial ambitions without consequences, we put everything at risk this association stands for. this past year the world was tested as well, and we did not hesitate. we chose liberty. we chose sovereignty. we chose principles to which every party to the united nations charter is beholding.
we stood with ukraine. like you, the united states wants this war to end on just terms, on terms we all signed up for. that you cannot seize a nation's territory by force. the only country standing in the way of that is russia so we, we pledge to defend as members of the united states, must be clear, firm and unwavering in our resolve. ukraine has the same rights that belong to every sovereign nation. we will stand in solidarity with ukraine, stand against russia's aggression, period. now, it's not secret in the contest between democracy and autocracy, the united states,
and i as president, champion a vision for our world that's grounded in the values of democracy. the united states is determined to defend and strengthen democracy at home and around the world. i believe democracy remains humanity's greatest instrument to address the challenges of our time. working with the g7 and likes-minded dunce, a for i citizens and also for the rest of the world as well. as we meet today, the u.n. charters's very basis of a stable and just rule-based order is under attack by those who wish to tear it down. the united nations charter was not only signed by democracying of the world, dozens of nations with vastly different histories and ideologies.
united in their commitment to work for peace. as president truman said, the u.n. charter is proof that nations, like men, did state their differences can face them, and then can find common ground on which to stand, end of quote. that common ground was so straightforward, so base that today 193 of you, 193 member states have willingly embraced its principles. standing up for those principles for the u.n. charter is the job of every responsible member state. i reject the use of violence and war to conquer nations or expand borders through bloodshed, to stand against global politics of fear and coercion, to defend the smaller rights -- rights of
smaller nations. to embrace basic principles -- freedom of navigation, respect for international law, and arms control. no matter what else we disagree on, that is the common ground on which we must stand. if you're still committed to a strong foundation for the good of every nation around the world, then the united states wants to work with you. i also believe the time has come for this institution to become more inclusive, so we can better respond to the needs of today's world. members of the u.n. security council, including the united states, should consistently uphow old the charter and refrain from the use of a veto, except in rare extraordinary situations to ensure the council remains credible and effective. that is also why the united states supports increasing the number of both permanent and
non-permanent representatives of the council. this includes permanent seats for those nations we have long supported, for countries in africa, latin american anded caribbean. the united states is committed to this vital work. in every region, we per sued new constructive ways to advance shared interests. from elevating the quad in the independenceo pacific, to signing the los angeles declaration of migration and protection at the summit of the americas, to joining a historic meeting of nine aregard leaders to work toward a more peaceful, integrated lead ers. the united states is opening an era of rye elent his diplomacy, tackling climate crisis, as a previous speaker spoke to,
strengthening global health security. feeding the world. we made that priority, and one year later, we're keeping that promise. from the day i came to office, we have led with a bold climate agenda. we rejoined the paris agreement, helped deliver critical agreement on cop 26. helped get two thirds of the world's gdp on track to limit warm to go 1.5 degrees celsius. now i have signed a historic piece of legislation that includes the biggest most important climate commitment we have ever made in the history of our country. $369 billion toward climate change. that includes tens of billions of new investments doubling down a zero-emission vehicle,
increasing energy efficiency. our department of energy estimates this new law will reduce u.s. emissions by one gig giga-ton by 2030. our investments will also produce the costs of developing clean energy technology worldwide, not just in the united states. this is a global game changer, and none too soon. we don't have much time. we already know we're already living in a climate crisis. no one seems to doubt it after this past year. much of pakistan is still under water. it needs help. meanwhile, the horn of africa faces unprecedented drought. families are facing impossible choices, choosing which child for feed, and wonder whether they'll survive. this is the human cost of
climate change and it's growing, not lessening. so as i announced last year, to meet our global responsibility, my administration is working with our congress to delivered more than $11 billion a year to international climate finance, to hem countries implement climate goals and ensure a just energy transition. the key part of that will be our plan to help half a billion people, especially vulnerable countries, adapt to the impact of climate change and build resilience. this need is enormous. let this be the moment we find within ourselves the will to turn back the tide of climate devastation and a resilient,
sustainable, clean energy economy to preserve our planet. on global health delivered vaxes to countries around the world, with more available to help countries' needs. we're working closely with the g-20 and other countries with the united states to help lead the change to establish a groupbreaking new fund for pandemic prevention preparedness and response at the world bank. at the same time, we continue to advance the ball on enduring global health challenges. later today, i'll host on replenishment council to fight aids, tuberculosis and malaria, with bipartisan support in our congress, i have pledged to contribute up to $6 billion to that effort. so, i look forward to welcoming
a historic round of pledges at the difference resulting in one of the largest global health fund-raisers ever held in history. we're else taking the food crisis head on, with as many as 193 million people around the world experiencing acute food insecurity. a jump of 40 million in a year. today, i'm announcing at $2.9 billion in u.s. support for life-saving humanitarian and feud security assistance for this year alone. russia, in the meantime is pumping out lies, trying to pin the blame for the crisis, the food crisis, on the sanctions imposed by many in the world for the aggression against ukraine. so let me be perfectly clear about something. our sanctions explicitly allow ed russia the ability to export
food and fertilizer. no limitation. it's russia's war that is worsening food insecurity, and only russia can end it. i'm grateful for the work here at the u.n., including your leadership, mr. secretary-general, establishing a mechanism to export grain from black sea ports in ukraine that russia had blocked for months. we need to make sure it's extended. we believe strongly in the need to feed the world. that's why the united states is the world's largest supporter of the world food program, 40% of its budget, a leading supports of the unicef efforts to feed children around the world, to take on a larger challenge of few insecurity in the united states introduced, a call to action, a road map, eliminated
global food insecurity -- to eliminate global food insecurity. more than 100 nation member states have supported. in june, the g-7 announced more than $4.5 billion to strengthen food secure around the world throughuaid's feed the future initiative. united states is scaling up inother investigative ways to get drought and heat resistant seeds to farmers, while distributiiing fertilizerses, a calling on countries to ban hoarding while others starve. if parents cannot feed their children, nothing, nothing else matters, if parents cannot feed their children.
as we look to the future, we're working with our partners to update and create rules of the road 230 new challenges we face in the 21st century. we launched the trade technology council, to ensure that key technologies are developed and governed in the way that benefits everyone with his our partner countries and through the u.n., we're exporting and strengthening norms of responsible state behavior in cyberspace, working to hold accountable those that use suer attacks to threatened international peace and security. with partners in the americas, africa, europe, the middle east, indep indo-pacific, we're working to establish a new ecosystem. that's why the united states is
championing the global minimum tax, and we will work to see it implemented so major corporations pay their fair share everywhere. it's also been the idea behind the framework which the united states larged with 13 other economies. we're working with our partner in asean, in the pacific island, to support a vision for a critical ic critical indo-pacific region. attorney general with partners, we're working to secure resilient supply chains and protect everyone from coercion or domination, and ensure that no country can use energy as a weapon. and as russia's war riles the global economy, we're calling on major creditors, you to transparently negotiate debt
forgiveness for lower-income countries, to forestall broader economic and political crisis around the world. instead of infrastructure projects generating huge and ladies and gentlemen debt without delivers on the promised advantages, let's meet the needs around the world with transparent investments, high standard projects that protect the rites of workers and the environment, key to the needs of the communities they serve, not to the contributor. that's why the united states, together with fellow g-7 partners, launched a partnership for global infrastructure investment. we intend to collectively mobilize $600 billion in investment through this partnership by 2027. dozens of projects are already underway, and industrial-scale vaccine manufacturing in se senegal, first of independence
kind, small mod ullr nuclear power plant in romania. the united states will work with ever nation to solve global problems like climate change. climate diplomacy is not a favor to the united states or any other nation, and walking away hurts the entire world. let me be direct about the competition between the united states and china. as we manage shifting geopolitical trends, united states will conduct itself as a reasonable leader. we do not seek conflict. we do not seek a cold war. we do not ask any nation to choose between the united states or any other partner, but the united states will be unabashed in promoting our vision of a free, hopeful security prosperous world, and what we have to offer.
investments that are designed not to foster dependency, but to alleviate burdens, and help nations become self-sufficient. partnerships, not to create political obligation, but we know our own success, each of our successes increase when other nations succeed as well. when individuals have a chance to develop their talents, everyone benefits. critical of that is living up to the highest goals of this institution, increasing peace and security for everyone ever everywhere. the united states will notice wave you are in our unrelenting determine ace to counter and thwart the continuing terrorist threats to our world. it will lead with our depaiplom. we seem to building across the taiwan straits, remain committed
to the one china policy, and we support an african union-led peace process to end the fighting in ethiopia, restore security for all its people. in venezuela, where years of political pressure have driven more than 6 million people from that country. we're pledged to dialogue and return to free and fair election. we continue to stand with our neighbor in haiti, as it faces politically fueled gang violence and an enormous human crisis. we call on the world to do the same. we have more to do. we'll continue to back the mediated truce in yemen, which has delivered precious months of peace to people who have suffered years of war. well will continue to advocate for lasting negotiating peace between the jewish and democratic state of israel and
the palestinian people. united states is commit to do israel's security, full stop, and a negotiated two-state solution remains, in our view, the best was to ensure prosperity and give the palestinians a state to which they are entitled. both sides to fully respect the equal rights of their citizens, both people enjoying equal measure of freedom and security. let me also urge every nation to strengthen the nonproliferation through diplomacy. no matter what else is happening in the world were the united states is ready to pursue critical arms control measures. a nuclear war cannot be won. it must never be fought. with the five permanent members
of the security council just reaffirmed that commitment in january, but today we are seeing disturbing trends. at the 10th ntp review conference. again, as i said, they're making irresponsible threats to use nuclear weapons. china is unconducting an unprecedented nuclear buildup without any transparency. despite our efforts to begin seriously sustained diplomacy, the democratic people's republic continuing to -- white the united states is prepared for a mutual return to the joint comprehensive plan of action if iran steps up to its obligation, the united states is clear -- we will not allow iran to acquire a nuclear weapon. i continue to believe diplomacy
is the best way to achieve this outcome. we cannot let the world now slide backwards, nor can we turn a blind eye to the erosion of human rights. perhaps singular among this body's achievement stands the declare ace of human rights, which is the standard by which our forebears challenged up to -- they made clear in 1948, that human rights is the basis that we all seek to achieve, yet today in 2022, the fundamental freedoms are at risk fourth quarter -- detailed reports detailing by the u.s. high commissioner, to the horrible abuses against pro-democracy
activists and ethnic minorities by the military regime in burma, to the increased oppression of women and girls by the taliban in afghanistan. today, we stand with the brave citizens and brave women of iran, who right now are demonstrating to secure their basic rights. but here's what i know. the future will be won by those countries that unleash the full potential of their populations, where women and girls can exercise equal rights, including basic reproductive rights, and contribute to building a stronger economy and more resilient economies. religious and ethnic minorities can live their lives without harassment and contribute to the
societies. where citizens can criticize their leaders without fear of precisal. the united states will always promote human rights, and the values enshrined in the u.n. charter, and our own country and around the world. let me end with this -- this institution, guided by the u.n. charter and the universal declaration of human rights is, at its core, an act of dauntless hope. let me say that again. it's an act of dauntless hope. think about the vision of those first delegates, they took an unseemingly impossible task while the world was smoldering. think how divided the people of the world mvp felt with the fresh grief of millions dead, the genocidal horrors of the
holocaust exposed. they had every right to believe ohm the worst of humanity. instead, they reached for what was best in all of us. they strove to build something better. among peace, human rights for every member of the u.n. family, cooperation for the advancement of all humankind, my fellow leaders, the challenges we face today are great indeed, but our capacity is greater. our commitment must be greater still, so let's stand together to, again, declare the unmistakable resolve that nations of the world are united still, and we stand for the values of the u.n. charter, and we still believe by working together we can bend of arc of history toward a freer future for our children. we are not passive witnesses to
history. we are the authors of history. we can do this. we have to do it, for ourselves and for our future, for humankind. thank you for your tolerance for listening to me. i appreciate it very much. god bless you all. the general assembly, i wish to say the president of the united states of america -- biting and direction, a war chosen by one man, president biden with a sharp rebuke there of vladimir putin in his address before world leaders. back with me now, kaitlan collins, gym sc jim scuitto, an general hertling. in no uncertainly terms, he came at putin right out of the gate. >> reporter: this is a speech we're told he did not have to do
much rewriting, we are told. h how. they adjusted a few lines this morning, emphasized something, but they expected that. they said they were prepared for that, so president biden right out of the gate there, offering that strong rebuke, saying that russia has shame leslie violated the charter of the united states with this invasion of ukraine. he says the war crimes we have seen committed in ukraine should make one's blood run cold, with just how disturbing they have been. and basically a strong condemnation of russia's actions, talking about how they're violating the essence of the united states there. he talked about putin, noting he wanted that troop buildup. they said the thinly veiled threat was reckless. he calls for a reform in the
security council. russia has veto power there. >> kaitlan, we have some ecbraing news just in. new york attorneys letitia james has filed a civil lawsuit against former president donald trump, his children and his family business. let's listen in. >> mr. trump and the trump organization repeatedly and persistently manipulated the value of assets to induce banks to lend money to the trump oarization on more favorable terms than would otherwise have been available to the company. to pay lower taxes. to satisfy continues loan agreements, and to induce insurance companies to provide insurance coverage for higher elements and at lower premiums. his conduct was all in violation
of executive law section 63-12, which gives the attorney general broad special powers to go after persistent and repeated fraud and illegality. as part of demonstrating illegality under that section of law, we show that they violated several state criminal laws, including falsifying business records, issuing false financial statements, insurance fraud, and engaging in a conspiracy to commit each of these state law violations. we believe the conduct alleged in this action also violates federal criminal law, including issuing false statements to financial institutions, and bank fraud. we are referring those criminal violations that we have uncovered to the united states
attorney general for the southern district of new york and the internal revenue service. as a result of these violations, we are asking the court to, among other things, permanently bar mr. trump, donald trump, jr. ivanka trump, eric trump, serving as an officer in any corporation or similar entity registered or licensed in new york. to bar mr. trump and the trump organization from entering into any new york state commercial real estate acquisition or from applying for loans from any financial institution in new york for five years. to pay for the financial benefits obtained as a result of the persistent fraudulent practices at an estimated $250
mil million. towards the end of my remarks, i will go into the other relief we are seeking. at the center of this -- of the years-long financial scheme were the statements of financial condition that were prepared annually by and for mr. trump specifically from 2011 through 2021, the statements were compiled by the trump organization executives and issued as a compilation report by mr. trump's accounting firm. the statements are explicit that the preparation was the responsibility of mr. trump. starting in 2016, the trustees of his trust, donald trump junior and allen weisselberg for the sole benefit of mr. donald trump. each statement was personally certified as accurate by mr. trump, or by one of these
trustees as part of the loan process, with the intent that the information in the statement would be relied upon by banks and insurers. mr. trump and mr. weisselberg would meet to review and approve the final statements every year. mr. trumped made known through mr. weisselberg, he wanted his net worth reflected on the statements to increase, a desire mr. weisselberg and others carried out year after year in their fraudulent preparations of the statements. when asked about these meetings under oath, as part of our deposition, both men, mr. trump and mr. weisselberg, invoked their fifth amendment privilege against self-incrimination, and refused to answer. when asked under oath if he, mr.
tr trump, continuing to review the statements after becoming president from the united states in 2019, again invoked his fifth amendment privilege, and refused to answer. over the course of our investigation, we found that mr. trump, his children, the trump organization created and used more than 200 false and misleading asset valuations on a statement of financial condition over that ten-year period. they issued statements that were in clear violation of general accounting principles in the united states, despeed representing the statements were prepared in accordance with these principles. some of the common tactics they used include representing that mr. trump had cash on hand that
he did not have. ignoring critical restrictions that would significantly imbalance property values, changing the methodology used to value properties from year to year without reason or notice. and using vastly different methods to value different properties even in the same year and including tangible items such as brand premiums, the trump premium, which calculateling an asset's value, despite the spite the fact they ignored the advice of outside professionals, and they also ignored it is advice of appraisalsings claiming that those certain individuals provided certain figures. they received a series of bank-awarded proposals for 40 wall street that calculated the value of the property at $200
million as of august 2010. and $220 million as of november 2012. yet, in his 2011 statement, mr. trump listed 40 wall street with a value of $524 million, which increased to $530 million over the next two years. more than twice the value calculated by the professionals. even more egregious, that valuation was attributed to information from the appraiser who valued the building at just over $200 million. another deceptive strategy they employed was to use objective false numbers to calculate property values. take mr. trump's triplex, you
know, the triplex apartment in trump to youish on fifth avenue. mr. trump represented that his apartments spanned more than 30,000 square feet, which was the basis for valuing the apartment. in reality, the apartment had an area of less than 11,000 square feet, misthat mr. trump was well aware of. based on that inflated square footage, the value of the apartment in 2015, in 2016, was $327 million. to this date, no apartment in new york city has ever sold to close to that amount. tripling the size of the apartment for purposes of the valuation was intentional and deliberate fraud, not an honest mistake. mr. trump was intimately familiar with layout of both the building and the apartment
having personally overseen the construction of both. despite his sworn testimony before invoking his fifth amendment privilege, mr. weisselberg conceded that using the false square footage improperly inflated the value of the apartment almost threefold mr. weisselberg admitted this amounted to an overstatement of get other take $misrepresenting it was only one of the ways he intentional po misvalued his asset, for the purposes of increases his net worth, and inducing banking to offer more favorable terms. mr. trump also routinely ignored legal restrictions on development rights. on properties that would significantly decrease property values. for example,
this building contains commercial and residential space. the residential condo units owned by mr. trump and the trump organization represented the lion's share of the reported value for this property. mr. trump and his children intentionally ignored legal restrictions on some of the units that would have drastically changed the valuation, specifically 12 of those units were actually rent stabilized apartments. a professional appraiser valued those 12 units at around $750,000, noting that the rent stabilized units cannot be marketed as individual units for sale because the current tenants cannot be forced to leave. despite this professional valuation, and mr. trump knowing full well the legal restrictions
the 12 rent stabilized units were valued, he valued them collectively on his statements at $49 million. that is about 65 times the appraised valuation. mr. trump also blatantly ignored legal restrictions at mar-a-lago. mar-a-lago was valued on the false premise that it sat on unrestricted property and could be developed for residential use. however, mr. trump knew that mar-a-lago was subject to a host of onerous restrictions and limitations. mr. trump himself signed deeds sharply restricting changes to the property and donating his residential development rights in an effort to get a tax deduction and later to lower his property taxes on the property. the deeds also require mr. trump to donate over 23% of mar-a-lago's value to the historic trust for historic
preservation if he ever sold it. despite these significant restrictions, mr. trump valued the property based on the false premise that it was an up restricted residential 18-acre plot of land that could be sold and used as a private home. in fact, the valuations represent that these restrictions don't even exist. the club generated annual revenues of less than $25 million and should have been valued at more than -- valued at about $75 million. however, mar-a-lago was valued as high as $739 million. mr. trump used inappropriate schemes to inflate the value of his other golf clubs. he valued the clubs based on
their fixed assets. in other words, the money spent to acquire and to maintain them, despite being informed by valuation professionals that this practice was inappropriate for a club operating as an ongoing business. he again added a brand premium when determining the value of the club, but claimed in his statements that he did not. and he inflated the value of unsold memberships often by hundreds of thousands of dollars per membership, even in situations where the memberships were given away for free, at mr. trump's direction. inflating his reported net worth was just the first part of the scheme. he then used these false statements of financial condition for his own personal gain. mr. trump and the trump organization have obtained hundreds of millions of dollars
in real estate loans and insurance coverage using these statements. mr. trump was able to secure much more favorable loan terms by personally guaranteeing the loans based on his reported net worth as reflected on his statements of financial condition. these statements were key, integral to mr. trump and the trump organization's ability to secure loans for a number of properties, including the old post office in washington, d.c. mr. trump's statements were first submitted to the federal government to demonstrate his financial status, his net worth. he then engaged with deutsche bank to obtain a loan to redevelop the property. mr. trump was able to obtain much more favorable loan terms by personally guaranteeing the loans. so in 2014 he secured a loan from deutsche bank for $170 million. and as you know, in may of '22,
mr. trump and the trump organization, they sold the post office, the old post office property for $375 million. r resulting in a $100 million net profit, which was the result of a loan he was able to obtain through the use of false and misleading statements of financial condition. separately, mr. trump and the trump organization saved an estimated $150 million by receiving favorable interest rates that were only provided based on the false and misleading statements of financial condition. we also believe that he illegally saved millions of dollars in federal tax benefits, conservation easement donations and the trump national golf club in los angeles. we are referring it to the irs and to the southern district of new york. the examples i laid out just
barely scratch the surface of the misconduct that we have uncovered. the complaint, which all of you should have a copy, is more than 280 pages long. it includes examples from 23 assets that were grossly and fraudulently inflated and those inflated values were used on mr. trump's statements almost every year. all told, we uncovered more than 200 examples of false and misleading asset valuations that were used on his statements. the pattern of fraud and deception that was used by mr. trump and the trump organization for their own financial benefit is astounding. inflating the values of assets by whatever means necessary to increase mr. trump's purported net worth. and then that net worth was used to further enhance his financial standing, intentionally
misrepresenting his financials to obtain incredible economic benefit. it was a scheme that by its very nature became more profitable over time. and it is all in stark violation of the law. as i mentioned earlier, the relief that we are seeking specifically, we are asking the court again to permanently bar mr. trump, donald trump, eric trump, ivankaa trump from serving as an officer for any business entity registered in new york state. we are barring mr. trump an his organization from entering into any commercial real estate acquisition for five years. we are barring mr. trump and the trump organization for applying for any loans from any financial institution registered with the department of new york for five years. we are ordering him to -- an estimated baseline at the
minimum of $250 million and to appoint an independent monitor at the trump organization to oversee compliance, financial reporting, valuations and disclosures to lenders, insurers and tax authorities for no less than five years. we are requiring the trump organization to prepare on an annual basis for the next five years a gaap, generally accepted accounting principles statement to be delivered to the prior recipients of his financial condition. to replace the current trustees of the donald j. trump revokable trust with new independent trustees and require similar independent governance if a new trust is create and to permanently bar allen weisselberg and jeffrey mcconnie of serving in the financial
control of any new york corporation. lastly, to cancel any certificate filed under and by virtue of the provisions of section 130 of the general business law for the corporate entities named as defendants and any other entity controlled by or beneficially owned by trump which participated in or benefitted from the ongoing financial scheme. in other words, permanently prohibit any of these companies from doing business in the state of new york. i want to be clear. white collar financial crime is not a victimless crime. when the well connected break the law to take in more money than they are entitled to, it reduces resources to working people, to regular people, to small businesses and taxpayers. everyday people cannot lie to a
bank about how much money they have in order to get a favorable loan to buy a home or to send their kid to college. and if they did, the government would throw the book at them. why should this be any different? it is a tale of two justice systems, one for everyday working people and one for the elite, the rich and the powerful. mr. trump and his allies may say that these penalties are too harsh or that this is part of a witch hunt. i will remind everyone that this investigation only started after michael cohen, the former lawyer, his former lawyer testified before congress and shed light on this misconduct. and the remedies are consistent with what we have sought for other businesses that committed the same misconduct. with what we have sought for businesses tha
Uploaded by TV Archive on