ABSTRACT
On February 16, 2024, a New York court found former President Trump and others civilly liable, under a specific New York law, for up to $450 million, including interest, for providing misleading financial statements to banks and others. I explain the legal basis of the suit, which is very different from common law fraud suits. It was brought by the New York State Attorney General, not the purported victims. There are sharply divergent views on whether the suit should have been brought. I also discuss five other issues of interest to forensic accountants pertinent to the trial: the use of “estimated current value” in personal financial statements; differing views of materiality; the protective value of disclaimers for financial statement issuers and accountants performing compilations; the impact of deferred tax liabilities to net worth; and whether personal financial statements have value.
Data Availability: Data are available from public sources cited in the text.
JEL Classifications: M41; M42; M49.
