David A. Fahrenthold, Jonathan O'Connell, Josh Dawsey and Shayna Jacobs report that New York state Attorney General Letitia James is considering a lawsuit or convening a grand jury to hold the Trump Organization accountable for wildly different property valuations.
Because Donald Trump was a resident of New York, James is able to investigate the valuation of Trump National Los Angeles, a.k.a. the-better-than-Pebble Beach-because-it’s-on-an-ocean course Trump purchased. And the shaky cliffs of the old Ocean Trails just keep on causing headaches, this time with regard to homesites overlooking the Palos Verdes course.
In 2012, Trump’s “Statement of Financial Condition”— a document that is typically used to demonstrate value to potential lenders — said the course had “52 home sites available for sale,” indicating a potential source of future cash flow.
At the time, however, the club had only received approvals for 36 home sites and six of them had already been sold, according to public records.
In May — after Reuters published an article on the club’s fluctuating valuations — investigators from James’s office contacted the city of Rancho Palos Verdes. They asked for hundreds of thousands of pages of documents, covering the history of the club’s efforts to get home lots approved, according to an email exchange released by the city’s lawyers.
They also wanted reports on the geology under the course — the factor that had limited Trump’s ability to develop it. “We will take any reports you were able to find issued from the year 2000 and forward,” a staffer for James wrote, according to an email that the city’s attorneys provided The Washington Post.
But don’t forget, better than Pebble Beach, which is on a bay, not the Pacific.