Bank loans

Virtual bank lends Trump $100m after firm warned of ‘unreliable’ finances

A virtual bank run by a GOP donor has loaned former President Donald Trump’s company $100 million despite a warning from Trump’s accounting firm about its shaky financial past.

Trump took out a $100 million mortgage on his Manhattan skyscraper, Trump Tower, in February according to documents registered with the New York City Department of Finance. However, earlier that month, Trump’s former accounting firm Mazars dropped him as a client, warning future creditors that a decade’s worth of his financial records “should no longer be relied upon.” .

Funding came from Axos, a full-service online bank, launched in 2000 as Bank of Internet USA. It is known to offer one of the best high yield savings accounts available., according to Forbes.

“Trump Tower is one of the most iconic properties in the world and sits in arguably the most prestigious corner of all of New York City,” Eric Trump told Forbes. “We have incredibly low debt, have a tremendous amount of cash, and have an extremely profitable business. We’ve had no problems refinancing.”

A virtual bank run by a GOP donor has loaned former President Donald Trump’s business $100 million, despite being warned of its shaky financial past.
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Axos CEO Gregory Garrabrants has contributed $50,000 to Republican campaigns, including $9,600 in support of Trump, since 2012. according to Federal Election Commission records. He also contributed to other high-profile GOP candidates, including Ted Cruz and Mitt Romney, records show.

Last year, the Trump Organization was charged in New York with alleged fraud and tax crimes. New York Attorney General Letitia James’ civil investigation is investigating whether Trump used fraudulent or misleading financial statements to inflate the value of his assets so he could receive favorable loans.

“As the most recent filings demonstrate, evidence continues to mount showing that Donald J. Trump and the Trump Organization used fraudulent and misleading financial statements to obtain economic advantage,” James said.

In a letter to the Trump Organization, released by James, the company informed the company of its decision to sever all future business ties. Mazars said the Trump Organization and its lenders should no longer rely on 10 years of financial statements.

“Although we have not concluded that the various financial statements, taken together, contain material differences, based on the totality of the circumstances, we believe that our advice to no longer rely on these financial statements is appropriate. “Mazars said in his letter to Trump Organization attorney Alan Garten.

The Trump Organization once said Newsweek it has not identified any misstatements in its reported financial statements.

Newsweek reached out to Axos and the Trump Organization for comment.