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Trump Accused of Insurance Fraud in New York Lawsuit

 Thursday, September 22, 2022

 Business Insurance

New York Attorney General Letitia James sued former President Donald Trump, the Trump Organization and others, including the ex-president’s eldest children, for financial fraud on Wednesday, in a lawsuit that includes allegations that the organization made misrepresentations in its purchase of surety bonds and directors and officers liability insurance.

The suit follows a petition filed earlier this year containing some of the allegations.

The wide-ranging lawsuit alleges that the defendants falsely inflated Mr. Trump’s net worth by billions of dollars to induce banks to lend money to the Trump Organization on more favorable terms than would otherwise have been available to the company.

Among other things, the lawsuit charges that the Trump Organization and other defendants submitted false and misleading statements, along with other representations, to obtain financial benefit from the Trump Organization’s surety program, which involved surety bonds purchased from Zurich Insurance Group Ltd. placed by Aon PLC, and from its D&O insurers, which included Everest National Insurance Co.