As for the banks being able to defend themselves.
Vrabalic further confirmed that each of the Trump family members she dealt with, including Donald Trump, Donald Trump, Jr., and Ivanka Trump, fully understood the recourse requirement to obtain a loan from the Private Wealth Management Division. TT 5574-5777; PX 1129.Vrablic expected Donald Trump to submit accurate financial information to the bank. TT 5579.
Kelly further emphasized that when Mazars was issuing the SFCs forDonald Trump, Mazars was performing a compilation, which is the lowest level of scrutiny offinancial statement preparation, and which relies on the representations and information provided by the client.
On January 10, 2017, Holl attended a meeting at the Trump Organization with Allen Weisselbergand other Trump Organization employees for the purpose of reviewing the Trump Organization’s financials as part of the insurance company’s due diligence. PX 588; TT 2496-2498, 2516. On the way home from the meeting, Holl drafted an email to his supervisors memorializing the information he obtained. PX 2985; TT 2498-2499. Holl’s contemporaneous email reads: the very few financials but did see the balance sheet for year ends 2015. They assured me that the one being put together is better. They have total assets of 6.6 BB. Cash of $192 mm. Total debtof $519 mm. No single debt larger than $160mm.” PX 2985. Holl testified that the $192 million in cash was a meaningful number for him, as it “was a measure of liquidity for thecompany.” TT 2500.Holl’s contemporaneous email alsoreads: “No material litigation or communication fromanyone.” PX 2985. Holl understood this to be a representation from the Trump Organizationthat there was no pending litigation or notices or communication that could lead to litigation andimplicate the D&O policy, which he viewed in a positive light. TT 2500-2502.Holl deemed these representations relevant when HCC ultimately decided to extend coverage.TT 2502.
Markarian recalled that when reviewing the Trump financials for her underwriting responsibilities, she was prohibited from retaining a copy of any financials, and she was only permitted to view them at Trump Tower with Allen Weisselberg or Jeffrey McConney, or both,
Markarian stated that because the Trump Organization is a private company, not a publiclytraded company, there is very little that underwriters can do to learn about its financial condition,other than to rely on the financial documents that the client provides to them.
Company after company testified that they needed to rely on Trump's FCC's