3. Trump faced insurance-related fraud charges
Posted On: Dec. 27, 2022 6:48 AM CST
The long-running battle between Trump Organization Inc. and state prosecutors in New York developed an insurance dimension this year when officials alleged former president Donald Trump’s company used fraud to obtain favorable insurance terms.
In January, New York Attorney General Letitia James filed a petition in state court alleging that Mr. Trump’s company misrepresented the source of valuations on financial statements to obtain surety coverage.
The story about the petition was the third most read risk management-related story on Business Insurance’s website in 2022.
A month earlier, it had been revealed that prosecutors had interviewed employees of Aon PLC, the real estate company’s then broker, in connection with their investigation into Mr. Trump.
More details about the alleged fraud were revealed in September when Ms. James finally sued the former president, the Trump Organization and Mr. Trump’s eldest children for financial fraud.
Among other things, the lawsuit charged 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, and from its directors and officers insurers, which included Everest National Insurance Co.
Later, a judge set aside motions from the Trumps to dismiss the lawsuit and set an October 2023 trial date.