Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 1 of 34 IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA DONALD J. TRUMP; THE TRUMP ORGANIZATION, INC.; TRUMP ORGANIZATION LLC; THE TRUMP CORPORATION; DJT HOLDINGS LLC; THE DONALD J. TRUMP REVOCABLE TRUST; and TRUMP OLD POST OFFICE LLC, Plaintiffs, v. Case No. 1:19-cv-01136-APM MAZARS USA LLP, Defendant, COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM OF THE U.S. HOUSE OF REPRESENATIVES, Intervenor-Defendant. OPPOSITION OF INTERVENOR-DEFENDANT COMMITTEE ON OVERSIGHT AND REFORM OF THE U.S. HOUSE OF REPRESENTATIVES TO PLAINTIFFS’ MOTION FOR A PRELIMINARY INJUNCTION DOUGLAS N. LETTER General Counsel TODD B. TATELMAN Deputy General Counsel MEGAN BARBERO Associate General Counsel BROOKS M. HANNER Assistant General Counsel OFFICE OF GENERAL COUNSEL U.S. HOUSE OF REPRESENTATIVES 219 Cannon House Office Building Washington, D.C. 20515 (202) 225-9700 (telephone) douglas.letter@mail.house.gov May 1, 2019 Counsel for Intervenor-Defendant Committee on Oversight and Reform of the U.S. House of Representatives Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 2 of 34 TABLE OF CONTENTS INTRODUCTION .......................................................................................................................... 1 BACKGROUND ............................................................................................................................ 3 I. The Committee’s Investigations of Government Ethics and Financial Disclosures............. 3 II. The Committee Issues a Subpoena to Mazars ...................................................................... 8 III. Trump Files Suit to Prevent Mazars from Complying with the Subpoena ........................... 9 ARGUMENT .................................................................................................................................. 9 PLAINTIFFS ARE NOT ENTITLED TO A PRELIMINARY INJUNCTION ................................................... 9 I. Plaintiffs Cannot Demonstrate a Substantial Likelihood of Success on the Merits ........... 10 A. The Constitution Confers Broad Investigatory Powers on Congress ......................... 11 B. The Committee’s Power to Investigate ....................................................................... 12 C. The Committee Has a Valid Legislative Purpose ....................................................... 14 1. Supreme Court Precedent Does Not Require the Committee to Identify Any Particular Legislation Being Considered............................................................ 15 2. The Committee’s Subpoena Seeks Information in Furtherance of a Valid Legislative Purpose ............................................................................................. 17 3. The Committee Is Not Engaged in a Law-Enforcement Investigation ................... 21 4. Trump’s Assertion That the Committee Is Exposing for Exposure’s Sake Lacks Merit .................................................................................................................... 23 II. Plaintiffs Have Failed to Establish a Likelihood of Irreparable Injury ............................... 24 III. The Balance of Equities Tips Heavily in Favor of the Committee ..................................... 26 IV. The Public Interest Supports Enforcement of the Subpoena .............................................. 27 CONCLUSION ............................................................................................................................. 28 CERTIFICATE OF SERVICE i Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 3 of 34 TABLE OF AUTHORITIES Cases Abdullah v. Obama, 753 F.3d 193 (D.C. Cir. 2014) ...................................................................................10, 24 * Bean LLC v. John Doe Bank, 291 F. Supp. 3d 34 (D.D.C. 2018) ...........................................................11, 14, 16, 18, 21 * Barenblatt v. United States, 360 U.S. 109 (1959) .....................................................................11, 13, 15, 16, 20, 23, 26 Buckley v. Valeo, 424 U.S. 1 (1976) .............................................................................................................12 Chaplaincy of Full Gospel Churches v. England, 454 F.3d 290 (D.C. Cir. 2006) .........................................................................................25 CityFed Fin. Corp. v. Office of Thrift Supervision, 58 F.3d 738 (D.C. Cir. 1995) ...........................................................................................10 Committee on the Judiciary, U.S. House of Representatives v. Miers, 558 F. Supp. 2d 53 (D.D.C. 2008) ...................................................................................26 Davis v. Pension Benefit Guar. Corp., 571 F.3d 1288 (D.C. Cir. 2009) .......................................................................................10 * Eastland v. U.S. Servicemen’s Fund, 421 U.S. 491 (1975) .................................................................3, 11, 12, 14, 18, 21, 23, 27 Endicott Johnson Corp. v. Perkins, 317 U.S. 501 (1943) .........................................................................................................19 Exxon Corp. v. FTC, 589 F.2d 582 (D.C. Cir. 1978) ...................................................................................22, 27 Hutcheson v. United States, 369 U.S. 599 (1962) .........................................................................................................22 Linde Thomson Langworthy Kohn & Van Dyke, P.C. v. Resolution Trust Corp., 5 F.3d 1508 (D.C. Cir. 1993) ...........................................................................................27 * McGrain v. Daugherty, 273 U.S. 135 (1927) .....................................................................11, 12, 15, 16, 22, 24, 26 McPhaul v. United States, 364 U.S. 372 (1960) .......................................................................................14, 18, 19, 21 ii Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 4 of 34 McSurely v. McClellan, 521 F.2d 1024 (D.C. Cir. 1975) .....................................................................13, 19, 21, 27 Okla. Press Publ’g Co. v. Walling, 327 U.S. 186 (1946) .........................................................................................................19 Quinn v. United States, 349 U.S. 155 (1955) ...................................................................................................16, 21 * Senate Select Comm. v. Packwood, 845 F. Supp. 17 (D.D.C. 1994) ......................................................................17, 18, 20, 21 Sherley v. Sebelius, 644 F.3d 388 (D.C. Cir. 2011) .........................................................................................10 Townsend v. United States, 95 F.2d 352 (D.C. Cir. 1938) ..................................................................................... 13-14 Trump v. Hawaii, 138 S. Ct. 2392 (2018) .....................................................................................................23 United States v. R. Enterps., Inc., 498 U.S. 292 (1991) ...................................................................................................18, 21 Watkins v. United States, 354 U.S. 178 (1957) ........................................................................................... 1-2, 23, 24 Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7 (2008) .......................................................................................................10, 24 Wis. Gas Co. v. FERC, 758 F.2d 669 (D.C. Cir. 1985) (per curiam) ......................................................................25 Constitution * U.S. Const. art. I, § 5, cl. 2.............................................................................................................12 U.S. Const. art. I, § 7, cl. 2...............................................................................................................6 Legislative Sources Committees: H.R. 1—116th Congress (2019-2020), Congress.gov, https://tinyurl.com/HR1Committees ....................................................................................5 H.R. 1, 116th Cong., tit. VIII (2019) ...............................................................................................6 H.R. 391, 116th Cong. (2019)........................................................................................................17 H.R. 681, 116th Cong. (2019).................................................................................................. 16-17 iii Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 5 of 34 H.R. 706, 116th Cong. (2019)....................................................................................................6, 16 H.R. 745, 116th Cong. (2019)....................................................................................................6, 16 Rule X.3(i), Rules of the House of Representatives (116th Cong.) ...............................................13 Rule X.4(c)(2), Rules of the House of Representatives (116th Cong.) .........................................13 Rule XI.1(b)(1), Rules of the House of Representatives (116th Cong.) ........................................12 Rule XI.2(m)(1)(B), Rules of the House of Representatives (116th Cong.) .................................13 Rule 12(g), Rules of the House Comm. on Oversight and Reform (116th Cong.) ........................13 Michael Cohen, Former Attorney to President Donald Trump: Hearing Before the H. Comm. on Oversight & Reform, 116th Cong. (2019) ......................................................7, 8 Other Sources Chase Peterson-Withorn, What You (Don’t) Know About Trump: The Huge Holes in Disclosure Rules and How They Could Be Fixed, Forbes (Oct. 24, 2018, 12:07 PM), https://tinyurl.com/ForbesDisclosureRules ..........................................................................7 1 Congress Investigates: A Documented History 1792-1974 (Arthur M. Schlesinger, Jr. & Roger Burns eds., 1983) ......................................................1 2 James Wilson, The Works of James Wilson (James DeWitt Andrews ed., 1896) .....................................................................................1 Woodrow Wilson, Congressional Government (Dover ed. 2006) (1885) ......................................................................................................2 iv Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 6 of 34 Intervenor-defendant the Committee on Oversight and Reform of the U.S. House of Representatives (Committee) submits this response in opposition to the motion for a preliminary injunction (Apr. 22, 2019) (ECF No. 11) (Pls.’ Mem.) filed by Donald J. Trump (in his individual, not Presidential, capacity), The Trump Organization, Inc., Trump Organization LLC, The Trump Corporation, DJT Holdings LLC, The Donald J. Trump Revocable Trust, and Trump Old Post Office LLC (Trump or plaintiffs). Plaintiffs seek extraordinary relief that, if granted, would directly impede ongoing Congressional investigations of national importance and threaten the Constitutional system that separates and divides power between the branches of government. INTRODUCTION Trump’s request here for a preliminary injunction betrays a fundamental misunderstanding of the powers of the Legislative Branch under the Constitutional scheme established by the Framers. And Trump’s view of the powers of Congress is blatantly inconsistent with many decades of Supreme Court precedent. Congress’s power to conduct oversight and investigations is firmly rooted in the separation of powers that undergirds our Constitutional framework. As one of the Framers explained, they intended Congress to conduct investigations as the British House of Commons had—as “the grand inquest of the state . . . diligently inquir[ing] into grievances, arising from both men and things.” 2 James Wilson, The Works of James Wilson 29 (James DeWitt Andrews ed., 1896). Congress, therefore, is to “play its part in preserving the balance of powers through its possession and exercise of three vital powers: the power to authorize war; the power of the purse; and the power of investigation.” 1 Congress Investigates: A Documented History 17921974, at i (Arthur M. Schlesinger, Jr. & Roger Burns eds., 1983) (emphasis added). Contrary to Trump’s allegation that the Committee here is merely attempting to “expose for the sake of exposure,” Pls.’ Mem. at 10 (quoting Watkins v. United States, 354 U.S. 178, 200 1 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 7 of 34 (1957)), the Committee is actually investigating the numerous and serious constitutional, conflict of interest, and ethical questions raised by the personal financial holdings of Trump, even as he serves as President, as well as those of other high-ranking government officials. The Committee’s investigations have already revealed that many of these conflicts of interest have been obscured from the public by inaccurate and incomplete disclosures and, as a result, the Committee is determining what legislation is required to ensure full public confidence in the officials charged with executing the nation’s laws. The Committee is exercising its oversight and investigative powers in a manner wholly consistent with Congress’s traditional purposes: to consider and enact legislation, oversee the administration of programs, monitor how taxpayer money is being spent, and inform the public. In the words of one well-known Congressional scholar: Quite as important as legislation is vigilant oversight of administration. . . . It is the proper duty of a representative body to look diligently into every affair of government and to talk much about what it sees. . . . The informing function of Congress should be preferred to its legislative function. Woodrow Wilson, Congressional Government 195, 198 (Dover ed. 2006) (1885). Rather than afford the Committee’s legitimate investigations into these serious issues of national importance the respect and deference to which they are entitled, Trump and his companies have treated Congress as a mere nuisance and continually engaged in stonewalling intended to obstruct and undermine these inquiries in every possible way. This suit is Trump’s latest delay tactic and attempt to prevent the Committee from obtaining the critical information it requires to make an informed judgment about matters squarely within its legislative and oversight jurisdiction. By bringing suit against defendant Mazars USA LLP (Mazars), Trump aims to do indirectly what longstanding Supreme Court precedent unambiguously prevents him 2 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 8 of 34 from doing directly—namely, quash a valid Congressional subpoena. See Eastland v. U.S. Servicemen’s Fund, 421 U.S. 491, 505-06 (1975). Trump’s attacks on the Committee’s investigations amount to nothing more than political histrionics and hyperbole. Trump has provided no legally cognizable grounds sufficient to establish any likelihood of success on the merits, much less a substantial one. His disapproval of the Committee’s investigations and its efforts to obtain relevant information from Mazars, a third party, does not create a legal basis for this Court to grant the relief sought. Accordingly, the motion for a preliminary injunction should be denied. BACKGROUND I. The Committee’s Investigations of Government Ethics and Financial Disclosures Shortly after commencement of the 116th Congress, the Committee on Oversight and Reform—the principal investigative Committee of the House—began to investigate and conduct oversight regarding the following topics: Presidential financial disclosures and information required to be submitted to the Office of Government Ethics; 1 government ethics throughout the Executive Branch; potential conflicts of interest related to senior Executive Branch officials; possible constitutional violations flowing from the President’s continued interest in his financial 1 See Letter from the Honorable Elijah E. Cummings, Chairman, House Comm. on Oversight & Reform, to Emory A. Rounds III, Dir., Office of Gov’t Ethics (Jan. 22, 2019) (requesting documents relating to the President’s reporting of debts and payments relating to women alleging extramarital affairs) (attached as Exhibit A to Declaration of Greta G. Gao); Letter from the Honorable Elijah E. Cummings, Chairman, House Comm. on Oversight & Reform, to Pat Cipollone, Counsel to the President (Jan. 8, 2019) (same), https://tinyurl.com/Jan8CummingsCipolloneLetter; Letter from the Honorable Elijah E. Cummings, Chairman, House Comm. on Oversight & Reform, to George A. Sorial, Exec. Vice President and Chief Compliance Officer, Trump Org. (Jan. 8, 2019) (same), https://tinyurl.com/Jan8CummingsSorialLetter. 3 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 9 of 34 holdings, 2 including President Trump’s financial interest in the Trump International Hotel, Washington, D.C., under a federal lease administered by the General Services Administration (GSA); any financial disclosures used to obtain that lease; and GSA’s ongoing management of that lease. 3 Many of these investigations share at their core the principle that senior government officials, including the nation’s Chief Executive, should act in the country’s best interest, not their own personal financial interest. They stem, in part, from the President’s refusal to liquidate his business interests and place the assets in a truly independent trust to insulate himself from even the perception of a conflict of interest. As part of these investigations, the Committee requested documents from, among others, the White House, the Trump Organization, the Office of Government Ethics, and GSA, and requested interviews of officials such as former Deputy White House Counsel for Ethics and Compliance Stefan Passantino and President Trump’s personal attorney, Sheri Dillon. After the White House declined to produce requested documents—and the Office of Government Ethics provided new information raising questions about the accuracy of President Trump’s financial disclosures—the Committee renewed its request for documents from the 2 See Letter from the Honorable Elijah E. Cummings, Ranking Member, House Comm. on Oversight & Reform, to Sheri Dillon, Counsel to Donald Trump, and George A. Sorial, Exec. Vice President and Chief Compliance Officer, Trump Org. (Dec. 19, 2018), https://tinyurl.com/Dec19CummingsDillonLetter. 3 See, e.g., Letter from the Honorable Elijah E. Cummings, Ranking Member, House Comm. on Oversight & Reform, et al., to Timothy Horne, Acting Adm’r, Gen. Servs. Admin. (June 5, 2017), https://tinyurl.com/June5CummingsHorneLetter; Letter from the Honorable Elijah E. Cummings, Ranking Member, House Comm. on Oversight & Reform, et al., to Timothy Horne, Acting Adm’r, Gen. Servs. Admin. (July 6, 2017), https://tinyurl.com/July6CummingsHorneLetter; Letter from the Honorable Elijah E. Cummings, Chairman, House Comm. on Oversight & Reform, et al., to Timothy Horne, Acting Adm’r, Gen. Servs. Admin. (Apr. 12, 2019), https://tinyurl.com/Apr12CummingsHorneLetter. 4 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 10 of 34 White House, citing its “plenary authority to legislate and conduct oversight regarding compliance with ethics laws and regulations.” 4 As the Committee explained to the White House, the Committee’s legislative jurisdiction covers the Ethics in Government Act of 1978, “which requires federal officials to publicly disclose financial liabilities that could affect their decisionmaking on behalf of the American people.” 5 The Committee made clear that its investigations into “how existing laws are being implemented and whether changes to the laws are necessary . . . includ[ing] [to] laws relating to financial disclosures required of the President.” 6 At the same time the Committee has been investigating the accuracy and completeness of the President’s financial disclosures and other related issues, the House introduced H.R. 1, “a historic reform package to restore the promise of our nation’s democracy, end the culture of corruption in Washington, and reduce the role of money in politics to return the power back to the American people.” 7 As Chairman Cummings stated when H.R. 1 was introduced, “[o]ver the last two years, President Trump set the tone from the top in his Administration that behaving ethically and complying with the law is optional. . . . This bill includes a number of reforms that will strengthen accountability for executive branch officials—including the President.” 8 One of 4 Letter from the Honorable Elijah E. Cummings, Chairman, House Comm. on Oversight & Reform, to Pat Cipollone, Counsel to the President 7 (Feb. 15, 2019), https://tinyurl.com/Feb15CummingsCipolloneLetter. 5 Id. 6 Id. at 9. 7 Press Release, Speaker of the House Nancy Pelosi, Pelosi Remarks at Press Event on Introduction of H.R. 1, For the People Act (Jan. 4, 2019), https://tinyurl.com/HR1Remarks. The bill was referred to the Committee on Oversight and Reform (among others) on January 3, 2019, and discharged from the Committee on March 4. See Committees: H.R. 1—116th Congress (2019-2020), Congress.gov, https://tinyurl.com/HR1Committees. 8 Press Release, House Comm. on Oversight & Reform, Chairman Cummings Issues Statement on H.R. 1 (Jan. 4, 2019), https://tinyurl.com/CummingsHR1PressRelease. 5 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 11 of 34 those reforms would “[r]equire[] the President and the Vice President to file a new financial disclosure report within 30 days of taking office.” 9 Indeed, H.R. 1 includes numerous provisions for reforming the financial disclosures of government officials and candidates for office, including disclosures of potential or actual Presidential conflicts of interest. H.R. 1, 116th Cong., tit. VIII (2019). If enacted, H.R. 1 would require, among other things, that the President and Vice President “divest of all financial interests that pose a conflict of interest” by either converting those interests to cash or investments that satisfy ethics rules or placing those interests in a qualified blind trust or disclosing information about business interests. Id. § 8012. Although the House passed H.R. 1 on March 8, 2019, the legislative process remains ongoing. Following Senate consideration, the bill may either return to the House with amendments, or a conference committee may be established to resolve any differences between the two chambers, before being sent to the President for his signature or veto. See U.S. Const. art. I, § 7, cl. 2. In addition, several other bills have been introduced and referred to the Committee that address these and related issues. These include a bill to strengthen the Office of Government Ethics, see H.R. 745, 116th Cong. (2019), and a bill proposing to prohibit the President and Vice President from conducting business directly with the Federal Government, see H.R. 706, 116th Cong. (2019). The Committee also continues to examine whether additional measures are necessary to strengthen financial disclosure laws given what one former senior ethics official has described as the law’s inadequacies as applied to this Administration: “The financial disclosure 9 Id. 6 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 12 of 34 rules are the result of compromises and are antiquated . . . They were built for another day and time—not for the complicated financial entanglements of the Trump administration.” 10 On February 27, 2019, while H.R. 1 was under consideration in the House, the Committee convened a hearing as part of its investigations into President Trump’s compliance with financial disclosure requirements and potential conflicts of interest. 11 At the hearing, the President’s former attorney Michael Cohen testified that financial statements allegedly prepared by Mazars may have included false statements about President Trump’s assets and liabilities. 12 In particular, Cohen testified that it was his “experience that Mr. Trump inflated his total assets when it served his purposes . . . and deflated his assets to reduce his real estate taxes.” 13 To corroborate his claims, Cohen produced to the Committee portions of financial statements from 2011, 2012, and 2013, some of which were prepared by Mazars. 14 Given that the Committee had already obtained substantial evidence that President Trump had improperly omitted other liabilities from his federal financial disclosures—namely, hundreds of thousands of dollars in expenditures made by Cohen on Trump’s behalf during the 2016 10 Chase Peterson-Withorn, What You (Don’t) Know About Trump: The Huge Holes in Disclosure Rules and How They Could Be Fixed, Forbes (Oct. 24, 2018, 12:07 PM), https://tinyurl.com/ForbesDisclosureRules (quoting Ambassador Norm Eisen, former Special Counsel for Ethics and Government Reform at the White House). 11 See Michael Cohen, Former Attorney to President Donald Trump: Hearing Before the H. Comm. on Oversight & Reform, 116th Cong. (2019) (Cohen Testimony), https://tinyurl.com/CohenHearing. 12 See id. 13, 19. 13 See id. (noting that Cohen was providing three years of the President’s personal financial statements in which the President inflated his assets in requesting a loan to buy a professional football team and Forbes magazine). 14 WeiserMazars LLP, Donald J. Trump: Statement of Financial Condition (June 30, 2011); WeiserMazars LLP, Donald J. Trump: Statement of Financial Condition (June 30, 2012); Donald J. Trump: Summary of Net Worth as of March 31, 2013. These documents are collectively attached as Exhibit B to Declaration of Greta G. Gao. 7 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 13 of 34 presidential campaign 15—the allegation that Trump altered his assets and liabilities even before assuming office raised grave questions about his potential conflicts of interest after being elected, whether they are adequately captured by and reflected in his financial disclosures submitted during the campaign or while in office, and whether it would be effective and appropriate to reform financial disclosure or other laws in order to ensure transparency and prevent conflicts of interest. II. The Committee Issues a Subpoena to Mazars Following Cohen’s testimony and as part of the investigations described above, the Committee wrote to Mazars on March 20, 2019, seeking information on how certain financial statements and other financial disclosures were prepared for Trump and various of his business entities in this suit.16 As the letter explained, the Committee had reviewed the information provided by Cohen and identified several specific concerns about the President’s reporting of his assets and liabilities, including concerns about whether and to whom the President owes significant debts identified in the financial statements. 17 The letter also identified potential differences between the Mazars financial statements and the President’s financial disclosures. For example, the 2012 financial statement prepared by Mazars did not include assets or liabilities relating to the Trump International Hotel and Tower in Chicago and Trump International Hotel in Las Vegas, but then-candidate Trump’s 2015 financial disclosure form and subsequent disclosures listed more than $75 million in debt connected to the Chicago property and assets of 15 See Cohen Testimony 13-14. 16 Letter from the Honorable Elijah E. Cummings, Chairman, House Comm. on Oversight & Reform, to Victor Wahba, Chairman and Chief Exec. Officer, Mazars USA LLP (Mar. 20, 2019), https://tinyurl.com/Mar20CummingsLetter. 17 Id. at 3. 8 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 14 of 34 more than $50 million for the Las Vegas property during the same period (but no debts). 18 Accordingly, the Committee requested from Mazars documents and information relating to the firm’s preparation, review, and auditing of financial statements for Trump and his business entities. Mazars informed the Committee that it could not voluntarily provide the requested documents without a Congressional subpoena. 19 After discussions between the Committee and Mazars, the Committee issued a subpoena to Mazars on April 15, 2019, seeking financial statements, supporting documents, and related communications. 20 The same day, Trump’s counsel requested that Mazars provide notice of its intent to comply with the subpoena in time to allow a challenge to the subpoena in court. III. Trump Files Suit to Prevent Mazars from Complying with the Subpoena On April 22, 2019, five business days before the subpoena return date, counsel for Trump notified the Committee that he had filed this suit challenging the subpoena to Mazars. After being contacted by the Court, counsel for all parties reached agreement on an accelerated briefing schedule, which the Court entered, with a hearing set for May 14, 2019. ARGUMENT PLAINTIFFS ARE NOT ENTITLED TO A PRELIMINARY INJUNCTION Plaintiffs’ motion for a preliminary injunction should be denied because the Committee’s subpoena to Mazars seeks information squarely within the Committee’s legislative and oversight 18 Id. at 2. 19 Letter from Jerry D. Bernstein, BlankRome LLP, Outside Counsel to Mazars USA LLP, to the Honorable Elijah E. Cummings, Chairman, House Comm. on Oversight & Reform (Mar. 27, 2019), https://tinyurl.com/Mar27MazarsLetter. 20 Subpoena from House Comm. on Oversight & Reform to Mazars USA LLP (Apr. 15, 2019) (Pl. Ex. A to Application for TRO (Apr. 22, 2019) (ECF No. 9-1)). 9 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 15 of 34 jurisdiction, and compliance with the subpoena would not injure any of the interested parties. “A preliminary injunction is ‘an extraordinary remedy that may only be awarded upon a clear showing that the plaintiff is entitled to such relief.’” Sherley v. Sebelius, 644 F.3d 388, 392 (D.C. Cir. 2011) (quoting Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7, 22 (2008)). To demonstrate entitlement to a preliminary injunction, a litigant must show “(1) a substantial likelihood of success on the merits, (2) that it would suffer irreparable injury if the injunction is not granted, (3) that an injunction would not substantially injure other interested parties, and (4) that the public interest would be furthered by the injunction.” CityFed Fin. Corp. v. Office of Thrift Supervision, 58 F.3d 738, 746 (D.C. Cir. 1995). “When seeking a preliminary injunction, the movant has the burden to show that all four factors, taken together, weigh in favor of the injunction.” Abdullah v. Obama, 753 F.3d 193, 197 (D.C. Cir. 2014) (quotation marks omitted). 21 I. Plaintiffs Cannot Demonstrate a Substantial Likelihood of Success on the Merits The best argument for denial of plaintiff’s request for an injunction here is provided by a series of Supreme Court decisions, which themselves draw on historical practice stretching back to the earliest days of our Republic. We therefore cite liberally from these Supreme Court rulings, which demonstrate what we said at the outset: Trump’s suit reflects a seriously uninformed and mistaken view of the powers of Congress. An injunction in Trump’s favor here 21 The D.C. Circuit has traditionally evaluated the four injunction factors on a sliding scale, but several Circuit Judges have correctly read the Supreme Court’s decision in Winter v. Natural Resources Defense Council, Inc., 555 U.S. 7 (2008), “at least to suggest, if not to hold, ‘that a likelihood of success is an independent, free-standing requirement for a preliminary injunction.’” Sherley, 644 F.3d at 393 (quoting Davis v. Pension Benefit Guar. Corp., 571 F.3d 1288, 1296 (D.C. Cir. 2009) (Kavanaugh, J., concurring, joined by Henderson, J.)). In light of Winter, the sliding-scale approach is no longer valid, and likelihood of success is an indispensable prerequisite to injunctive relief. Regardless of the approach this Court applies, however, plaintiffs here cannot satisfy the factors necessary to obtain a preliminary injunction. 10 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 16 of 34 would constitute a radical departure from many decades of law established by the Supreme Court. A. The Constitution Confers Broad Investigatory Powers on Congress The Supreme Court has consistently recognized that Congress’s authority to obtain information necessary to conduct oversight and investigations is extremely broad. See, e.g., Eastland, 421 U.S. at 504 n.15 (“[T]he scope of [Congress’s] power of inquiry . . . is as penetrating and far-reaching as the potential power to enact and appropriate under the Constitution.” (quotation marks omitted)). The Supreme Court has stated that Congress’s “power to secure needed information by [compulsory process] has long been treated as an attribute of the power to legislate . . . [and] is an essential and appropriate auxiliary to the legislative function.” McGrain v. Daugherty, 273 U.S. 135, 161, 174 (1927); see also, e.g., Barenblatt v. United States, 360 U.S. 109, 111 (1959) (“The power of inquiry has been employed by Congress throughout our history, over the whole range of the national interests concerning which Congress might legislate or decide upon due investigation not to legislate[.]”); Bean LLC v. John Doe Bank, 291 F. Supp. 3d 34, 43 (D.D.C. 2018) (similar). As an essential aspect of Congress’s constitutionally based oversight and investigative authority, the Supreme Court has made clear that the “[i]ssuance of subpoenas . . . has long been held to be a legitimate use by Congress of its power to investigate.” Eastland, 421 U.S. at 504. The Court has further explained: A legislative body cannot legislate wisely or effectively in the absence of information respecting the conditions which the legislation is intended to affect or change; and where the legislative body does not itself possess the requisite information—which not infrequently is true—recourse must be had to others who do possess it. Experience has taught that mere requests for such information often are unavailing, and also that information which is volunteered is not always accurate or complete; so some means of compulsion are essential to obtain what is needed. All this was true before and 11 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 17 of 34 when the Constitution was framed and adopted. In that period the power of inquiry, with enforcing process, was regarded and employed as a necessary and appropriate attribute of the power to legislate—indeed, was treated as inhering in it. McGrain, 273 U.S. at 175; see also Buckley v. Valeo, 424 U.S. 1, 138 (1976) (same), superseded on other grounds by statute as recognized by McConnell v. FEC, 540 U.S. 93 (2003); Eastland, 421 U.S. at 504-05 (same). In upholding Congress’s broad power to investigate, the Supreme Court has pointed out that James Madison and others “who had taken an important part in framing the Constitution” were Members of the House of Representatives who, in recognition of Congress’s power to investigate, voted in favor of an inquiry into the Executive Branch. McGrain, 273 U.S. at 161. Pursuant to the Constitution’s Rulemaking Clause, U.S. Const. art. I, § 5, cl. 2, which provides that “[e]ach House [of Congress] may determine the Rules of its Proceedings,” the House of Representatives has delegated extensive oversight and investigative authority to its Committees. See Rule XI.1(b)(1), Rules of the House of Representatives (116th Cong.) (House Rules) 22 (“Each committee may conduct at any time such investigations and studies as it considers necessary or appropriate in the exercise of its responsibilities under rule X [providing for Committees’ jurisdiction].”). B. The Committee’s Power to Investigate The Committee on Oversight and Reform is the House’s primary investigative Committee. Unlike other standing Committees of the House, the Committee on Oversight and Reform is expressly authorized to investigate and conduct oversight into matters beyond the specific subjects within its legislative jurisdiction, including “the operation of Government 22 Available at https://tinyurl.com/HouseRules116thCong. 12 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 18 of 34 activities at all levels, including the Executive Office of the President.” House Rule X.3(i). Further, of critical importance here, House Rule X empowers the Committee to “at any time conduct investigations of any matter without regard to [the] clause conferring jurisdiction over the matter to another standing committee,” and it authorizes the Committee to conduct these investigations to make “findings and recommendations” to other House committees of jurisdiction. House Rule X.4(c)(2) (emphases added). In other words, the Committee’s investigative jurisdiction is conterminous with the jurisdiction of the entire House of Representatives and is intended to inform not only its own legislative function, but the legislative functions of all the other House Committees. To carry out its extensive legislative, investigative, and oversight responsibilities, the Committee is empowered to issue subpoenas for testimony and documents. See House Rule XI.2(m)(1)(B); Rule 12(g), Rules of the House Comm. on Oversight and Reform (116th Cong.) (Committee Rules). 23 The Supreme Court has instructed that the role of the courts in reviewing the Committee’s investigations is narrow and limited. Barenblatt, 360 U.S. at 132 (“So long as Congress acts in pursuance of its constitutional power, the Judiciary lacks authority to intervene on the basis of the motives which spurred the exercise of that power.”). Unlike in disputes regarding civil discovery, where “a rational legislative purpose is present for investigating a particular person, organization, or institution[,] [t]here is no requirement that every piece of information gathered in such an investigation be justified before the judiciary.” McSurely v. McClellan, 521 F.2d 1024, 1041 (D.C. Cir. 1975), vacated on other grounds by McSurely v. McClellan, 553 F.2d 1277, 1280 (D.C. Cir. 1976) (en banc) (per curiam); see also Townsend v. 23 Available at https://tinyurl.com/CORRules116thCong. 13 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 19 of 34 United States, 95 F.2d 352, 361 (D.C. Cir. 1938) (“A legislative inquiry anticipates all possible cases which may arise thereunder and the evidence admissible must be responsive to the scope of the inquiry, which generally is very broad.”). The Supreme Court, moreover, has recognized that a Congressional investigation may lead “up some ‘blind alleys’ and into nonproductive enterprises. To be a valid legislative inquiry there need be no predictable end result.” Eastland, 421 U.S. at 509. Given that the Committee’s inquiry here involves serious constitutional questions and legitimate concerns about government ethics, there can be no question about its public importance. Despite what Trump argues, the Supreme Court has established that it is not the function of this Court to adjudicate the motivations of the Committee or second-guess the Committee’s reasonable determinations regarding the need for this information. Id. at 508 (instructing that when “determining the legitimacy of a congressional act, [courts] do not look to the motives alleged to have prompted it”); see also, e.g., Bean LLC, 291 F. Supp. 3d at 44 (holding that courts “lack[] the authority to restrict the scope of the Committee’s investigation” and stating that they “may not [] engage in a line-by-line review of . . . Committee[] requests” (emphasis added)). C. The Committee Has a Valid Legislative Purpose Trump asserts that Mazars should be enjoined from compliance with the Committee’s subpoena because it “is not supported by a legitimate legislative purpose.” Pls.’ Mem. at 11. Quite the opposite is true. As the Supreme Court has made clear, this Court’s examination should be limited to whether the Committee’s inquiry is authorized under House Rules (which it is), and whether plaintiffs can demonstrate that the subpoena is “plainly incompetent or irrelevant to any lawful purpose,” McPhaul v. United States, 364 U.S. 372, 381 (1960), which they cannot. As explained above, the Committee’s subpoena to Mazars expressly relates to 14 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 20 of 34 numerous investigations consistent not only with the Committee’s legislative jurisdiction, but also its broad oversight and investigative mandate. See supra pp. 8-9. In an attempt to satisfy their burden, plaintiffs advance several arguments to support their claim that the Committee’s subpoena is invalid. Each is unavailing. 1. Supreme Court Precedent Does Not Require the Committee to Identify Any Particular Legislation Being Considered Plaintiffs contend that the subpoena is invalid because “Chairman Cummings has never identified a single piece of legislation he is considering.” Pls.’ Mem. at 11 (emphasis in original). The Committee, however, has no obligation—legal or otherwise—to identify a specific piece of legislation it is considering. The Supreme Court requires only that the subject matter of the legislative inquiry be “one on which legislation could be had.” McGrain, 273 U.S. at 177 (emphasis added). The Supreme Court has consistently confirmed that the legislative power of inquiry “has been employed by Congress throughout our history, over the whole range of the national interests concerning which Congress might legislate or decide upon due investigation not to legislate[.]” Barenblatt, 360 U.S. at 111 (emphasis added). For example, in McGrain v. Daugherty, the Court recognized that the original resolution authorizing the Senate’s investigation into the Teapot Dome Affair made no mention of a legislative purpose. 273 U.S. at 177 (“It is quite true that the resolution directing the investigation does not in terms avow that it is intended to be in aid of legislation[.]”). Nevertheless, the Court upheld the investigation, noting that “[p]lainly the subject was one on which legislation could be had and would be materially aided by the information which the investigation was calculated to elicit.” Id. Moreover, the Court in McGrain concluded that it was “bound to presume that the action of the 15 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 21 of 34 legislative body was with a legitimate object, if it is capable of being so construed, and we have no right to assume that the contrary was intended.” Id. at 178 (quotation marks omitted). Thus, the proper legal standard requires only that the subject matter of a legislative inquiry be “one on which legislation could be had.” Id. at 177 (emphasis added); Bean LLC, 291 F. Supp. 3d at 43 (D.D.C. 2018). Were the law that Congress could only investigate matters upon which legislation already exists or is actively being considered—as plaintiffs suggest— Congress would be in the untenable position of being required to draft legislation before conducting inquiries or investigations, and would “be seriously handicapped in its efforts to exercise its constitutional function.” Quinn v. United States, 349 U.S. 155, 160-61 (1955); see also McGrain, 273 U.S. at 178. Such a requirement would effectively constrain the legislative process and would deprive Congress of the ability to obtain the very information necessary to fully inform itself about whether legislation is necessary or not, see, e.g., Barenblatt, 360 U.S. at 111, and, when legislation is determined to be necessary, to “legislate wisely and effectively.” McGrain, 273 U.S. at 175. Although the Committee is not required to identify specific pending legislation to justify either the legitimate legislative purpose of its investigations or the subpoena at issue, here, multiple bills related to Executive Branch conflicts of interests and senior official financial disclosures have been introduced in the House and referred to the Committee for its consideration. In addition to the provisions of H.R. 1 discussed above, these bills include proposals to strengthen the investigative and enforcement authority of the Office of Government Ethics, see H.R. 745, 116th Cong. (2019); prohibit the President and Vice President and related entities from conducting business with the federal government, see H.R. 706, 116th Cong. (2019); extend anti-nepotism laws to the Executive Office of the President, see H.R. 681, 116th 16 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 22 of 34 Cong. (2019); and require public reporting of ethics waivers obtained by Executive Branch appointees, see H.R. 391, 116th Cong. (2019). Plaintiffs have offered no legitimate reason to suggest that the subpoena to Mazars was not designed and is not expected to elicit information that will inform and aid the Committee, as well as the full House, in its advancement of pending legislation. The information being sought will assist the Committee and the full House with considering the need for other legislation, including the potential for bills regarding whether and how to expand the scope, penalties, and periods covered by financial disclosure laws, and the adequacy of criminal laws governing the reporting of financial information to financial institutions. 2. The Committee’s Subpoena Seeks Information in Furtherance of a Valid Legislative Purpose Trump also asserts that the subpoena is unenforceable because it seeks information about the “conduct of a private citizen years before he was even a candidate for public office,” a purpose that “has nothing to do with government oversight.” Pls.’ Mem. at 11. Trump’s reasoning appears to be that the documents sought from Mazars are not pertinent to any legitimate Committee inquiry. This argument is far off target. Simply put, the Committee does not bear the burden of demonstrating the “pertinence” of the records it seeks. That is not how investigations work—whether by Congressional Committees or by any other organ of government. Any suggestion that this Court conduct a searching inquiry into the “pertinence” of the documents sought by the Committee’s subpoena finds no support in law. Even in the context of a subpoena enforcement action brought by a Congressional Committee against an unwilling subpoena recipient, no such requirement exists. Senate Select Comm. v. Packwood, 845 F. Supp. 17, 20-21 (D.D.C. 1994) (“In determining the proper scope of a legislative subpoena [in such an 17 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 23 of 34 enforcement action], this Court may only inquire as to whether the documents sought by the subpoena are ‘not plainly incompetent or irrelevant to any lawful purpose [of the Subcommittee] in the discharge of [its] duties.’” (quoting McPhaul, 364 U.S. at 381)). And when, in such a case, “an investigative subpoena is challenged on relevancy grounds, the Supreme Court has stated that the subpoena is to be enforced ‘unless the district court determines that there is no reasonable possibility that the category of materials the Government seeks will produce information relevant to the general subject of the . . . investigation.’” Id. (quoting United States v. R. Enterps., Inc., 498 U.S. 292, 301 (1991)). Moreover, “[t]here is no requirement that every piece of information gathered in [a Congressional] investigation be justified before the judiciary.” McSurely, 521 F.2d at 1041. “This is particularly true in light of the fact that, at this stage of the proceedings, the Committee is acting as the ‘legislative branch equivalent of a grand jury, in furtherance of an express constitutional grant of authority.’” Bean LLC, 291 F. Supp. 3d at 45 (quoting Packwood, 845 F. Supp. at 21). In fact, the Supreme Court has made clear that Congressional investigations may lead “up some ‘blind alleys’ and into nonproductive enterprises. To be a valid legislative inquiry there need be no predictable end result.” Eastland, 421 U.S. at 509. Indeed, as Judge Leon recognized just last year in a case presenting similar legal questions, “this Court will not—and indeed, may not—engage in a line-by-line review of the Committee’s requests.” Bean LLC, 291 F. Supp. 3d at 44. Even if “pertinency” were the relevant standard (which it is not), plaintiffs cannot clear the high bar of establishing that the records compelled by the subpoena to Mazars are not pertinent to the Committee’s investigations. The Supreme Court has made clear that 18 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 24 of 34 “pertinency” is not an onerous requirement. 24 In McPhaul v. United States, for example, the Court held that pertinency was “clearly shown” when it was “reasonable to suppose” that the requested records would reveal whether an entity under investigation was engaged in activities within the scope of the Committee’s investigation. 364 U.S. at 381. In those circumstances, even though the Committee could not know in advance whether the requested records would establish any connection, “the records called for by the subpoena were not ‘plainly incompetent or irrelevant to any lawful purpose [of the Subcommittee] in the discharge of [its] duties,’ but, on the contrary, were reasonably ‘relevant to the inquiry,’” and thus pertinency was established. McPhaul, 364 U.S. at 381-82 (quoting first Endicott Johnson Corp. v. Perkins, 317 U.S. 501, 509 (1943), then Okla. Press Publ’g Co. v. Walling, 327 U.S. 186, 209 (1946)). 25 Here, based on its review of the information provided by Cohen, the Committee is aware of several specific instances where President Trump’s reporting of assets and liabilities materially differs from what was subsequently reported in his required financial disclosure filings submitted as a candidate for office and as a federal official. Those discrepancies justify the Committee’s effort to obtain more detailed financial information from Mazars and satisfy the minimal showing for pertinency required by law. The Committee took a reasonable approach to deciding which records to request. To the extent there is any question about why the Committee seeks records from before Trump was a candidate for public office, that reason is simple: Financial statements cannot 24 This remains true even in the criminal context where the pertinency standard most properly applies. See, e.g., McPhaul, 364 U.S. at 380-81; McSurely, 521 F.2d at 1041. 25 Notably, the two cases quoted by the McPhaul Court, in describing the test for pertinency in a prosecution for criminal contempt, both involved administrative subpoenas, confirming that even in the context of a criminal prosecution, the standard applicable to Congressional subpoenas is no less broad and flexible than that governing the sweeping investigative subpoenas typically issued by administrative agencies. 19 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 25 of 34 properly be reviewed in a vacuum, but rather require a basis for comparison and the ability to track funds from year to year. Given the nature of the Committee’s legitimate inquiries, to fully understand the President’s financial disclosures from 2015 to present, the Committee needs information about the President’s relevant financial circumstances from previous years. In light of the overall complexities of the President’s vast financial holdings, and since the Committee is already aware of issues related to reporting about the Trump properties in Chicago and Las Vegas, the ability to conduct thorough and complete investigations requires the Committee to seek records going back to at least 2011. Congress’s investigative powers unquestionably include the ability to follow up on reasonable leads in areas within its legislative purview. Furthermore, it is reasonable for the Committee to presume that the information contained in the financial statements sought from Mazars will illuminate other areas of inquiry for the Committee and aid the Committee’s understanding, drafting, and consideration of legislation related to various matters within the House’s legislative power. Accordingly, there can be no doubt that, to the extent pertinency even cabins the Committee’s ability to seek information, the material sought by the subpoena to Mazars is pertinent to the Committee’s investigations. Finally, Congress is not required to defer to material witnesses when making determinations regarding the relevance of requested materials. This is simply not how investigations work—whether by Congress or any other investigative body. “[I]t goes without saying that the scope of the Committee’s authority was for the House, not a witness, to determine[.]” Barenblatt, 360 U.S. at 124. As courts have noted, “it is manifestly impracticable to leave to the subject of the investigation alone the determination of what information may or may not be probative of the matters being investigated.” Packwood, 845 F. Supp. at 21; see also 20 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 26 of 34 Bean LLC, 291 F. Supp. 3d at 44 (same). This is particularly true here, where the Committee’s investigations focus on understanding the details about the President’s numerous financial dealings and his ongoing relationship with his private business enterprises. Accordingly, as discussed above, the Court’s examination on likelihood of success should be limited to whether the Committee’s inquiry is authorized under House Rules, and whether plaintiffs have established that the Committee’s subpoena is “plainly incompetent or irrelevant to any lawful purpose,” McPhaul, 364 U.S. at 381, and that there is “no reasonable possibility that the category of materials the [Committee] seeks will produce information relevant to the general subject of the . . . investigation,” R. Enterps., 498 U.S. at 301; see also, e.g., McSurely, 521 F.2d at 1041; Packwood, 845 F. Supp. at 20-21; Bean LLC, 291 F. Supp. 3d at 44. Because plaintiffs have failed to meet this heavy burden, the motion for preliminary injunction should be denied. 3. The Committee Is Not Engaged in a Law-Enforcement Investigation Plaintiffs assert that “an investigation into the accuracy of a private citizen’s past financial statements is a quintessential law-enforcement task reserved to the executive and judicial branches.” Pls.’ Mem. at 11. The Committee’s power to investigate is in many respects broader than that of law enforcement; it “is as penetrating and far-reaching as the potential power to enact and appropriate.” Eastland, 421 U.S. at 504 n.15 (quotation marks omitted). Because Congress’s power to investigate, which is “deeply rooted in American and English institutions, is indeed co-extensive with the power to legislate,” Quinn, 349 U.S. at 160, there is no basis for Trump’s implicit assertion that the Committee lacks the power to investigate matters within its jurisdiction to obtain the financial records sought here. See generally R. Enterps., 498 U.S. at 299 (cautioning against “[r]equiring the Government to explain in too much detail the particular reasons underlying a subpoena”). 21 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 27 of 34 As explained above, the Committee is investigating to determine, among other things, if there are deficiencies in the general legislative framework governing ethics and financial disclosure requirements in the Executive Branch and, specifically, how those laws relate and apply to the President and Vice President. Those inquiries have the distinct purpose of assessing whether existing laws and regulations are adequate; if amendment, via legislation, is necessary; or if entirely new legislation is required. Although the Committee’s inquiries have already discovered discrepancies in President Trump’s financial disclosure forms, its interest is not in prosecuting any individual involved. While the Committee has, at times in the past, referred suspected criminal matters discovered in the course of its inquiries to the proper Executive Branch officials, the possibility that the Committee could find criminal activity here does not convert the Committee’s inquiry into a law-enforcement task, nor does it invalidate the legitimate legislative purpose for the Committee’s subpoena to Mazars. See Hutcheson v. United States, 369 U.S. 599, 618 (1962) (“[S]urely a congressional committee which is engaged in a legitimate legislative investigation need not grind to a halt whenever responses to its inquiries might potentially be harmful to a witness in some distinct proceeding, or when crime or wrongdoing is disclosed.” (citation omitted)). As Supreme Court and D.C. Circuit precedent makes clear, this Court is to presume not only “that the action of the legislative body was with a legitimate object, if it is capable of being so construed, and we have no right to assume that the contrary was intended,” McGrain, 273 U.S. at 178 (quotation marks omitted), but also “that the committees of Congress will exercise their powers responsibly and with due regard for the rights of affected parties,” Exxon Corp. v. FTC, 589 F.2d 582, 589 (D.C. Cir. 1978). 22 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 28 of 34 In the absence of any evidence to the contrary—and plaintiffs have provided none—these presumptions further underscore that the Committee’s investigations are valid and that the subpoena to Mazars should be enforced. 4. Trump’s Assertion That the Committee Is Exposing for Exposure’s Sake Lacks Merit Trump’s last attempt to undermine the subpoena here is an argument that it is merely “a transparent attempt to ‘expose’ the President’s finances ‘for the sake of exposure.’” Pls.’ Mem. at 11 (quoting Watkins, 354 U.S. at 200). Trump has provided nothing beyond political rhetoric and press statements to suggest that the Committee’s subpoena to Mazars is intended for any other purpose than legitimate legislative inquiry. But even if Trump had provided some basis to question the Committee’s motive, the Court should not look behind the Committee’s legitimate legislative purpose. Cf. Trump v. Hawaii, 138 S. Ct. 2392, 2418-20, 2423 (2018) (upholding President Trump’s “travel ban” and explaining that the issue “is not whether to denounce the [President’s] statements,” but rather to “review[] a Presidential directive, neutral on its face, addressing a matter within the core of executive responsibility”). Based on the voluminous evidence in the public sphere, there is no foundation to question the legitimacy of the Committee’s legislative purpose. Supreme Court case law establishes that Congress’s power to investigate is “broad” and “encompasses inquiries concerning the administration of existing laws as well as proposed or possibly needed statutes.” Watkins, 354 U.S. at 187; see also Barenblatt, 360 U.S. at 152 (“So long as Congress acts in pursuance of its constitutional power, the Judiciary lacks authority to intervene on the basis of the motives which spurred the exercise of that power.”). Indeed, the Supreme Court has consistently noted that the motivations underlying Congressional action are not to be second-guessed, even by the courts. Eastland, 421 U.S. at 23 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 29 of 34 509 (“The wisdom of congressional approach or methodology is not open to judicial veto.”); Watkins, 354 U.S. at 200 (“But a solution to our problem is not to be found in testing the motives of committee members for this purpose. Such is not our function.”); McGrain, 273 U.S. at 178 (“We are bound to presume not only that the action of the legislative body was with a legitimate object, if it is capable of being so construed, and we have no right to assume that the contrary was intended.” (quotation marks omitted)). Accordingly, plaintiffs’ motion for a preliminary injunction should be denied and this Court should issue an order that the subpoena to Mazars is valid and enforceable. II. Plaintiffs Have Failed to Establish a Likelihood of Irreparable Injury Plaintiffs’ interests in confidentiality over documents shared with Mazars does not outweigh Congress’s constitutionally based authority to employ compulsory process to obtain information within its legislative and oversight purview. Plaintiffs’ other argument for irreparable injury—that this Court must “urgently” intervene “because the due date for compliance with the subpoena is only days away,” Pls.’ Mem. at 12—has been obviated by the parties’ agreement to postpone the return date on the Committee’s subpoena until seven days after this Court rules on the motion for preliminary injunction. See Docket, Minute Order (Apr. 23, 2019). Plaintiffs’ failure to satisfy the stringent irreparable-injury requirement is a separate and independent ground requiring denial of their motion, even leaving aside their inability to satisfy the other three requirements for injunctive relief. As the Supreme Court has emphasized, regardless of a plaintiff’s showing with respect to the other factors, “[o]ur frequently reiterated standard requires plaintiffs seeking preliminary relief to demonstrate that irreparable injury is likely in the absence of an injunction.” Winter, 555 U.S. at 22 (emphasis omitted); see also Abdullah, 753 F.3d at 197 (“When seeking a preliminary injunction, the movant has the burden 24 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 30 of 34 to show that all four factors, taken together, weigh in favor of the injunction.” (quotation marks omitted)). The D.C. Circuit has consistently “set a high standard for irreparable injury.” Chaplaincy of Full Gospel Churches v. England, 454 F.3d 290, 297 (D.C. Cir. 2006). In particular, “the injury ‘must be both certain and great; it must be actual and not theoretical.’” Id. (quoting Wis. Gas Co. v. FERC, 758 F.2d 669, 674 (D.C. Cir. 1985) (per curiam)). This Circuit has also emphasized, the further requirement that the movant substantiate the claim that irreparable injury is “likely” to occur. Bare allegations of what is likely to occur are of no value since the court must decide whether the harm will in fact occur. The movant must provide proof that the harm has occurred in the past and is likely to occur again, or proof indicating that the harm is certain to occur in the near future. Wis. Gas, 758 F.2d at 674 (first and third emphases added). Plaintiffs fall short of meeting this demanding burden. Any contractually based interest in the confidentiality of documents in Mazars’s possession cannot and does not override the Committee’s constitutionally based interest in obtaining information within its legislative and oversight jurisdiction. To the extent that plaintiffs assert any irreparable harm from the disclosure of the subpoenaed financial documents at all, it is predicated on their inability to obtain meaningful judicial review of their constitutional claims regarding the subpoena’s validity. See Pls.’ Mem. at 11-12 (“Plaintiffs have raised important constitutional claims. Yet denying them interim relief may ‘entirely destroy [their] rights to secure meaningful review.’” (citation omitted)). Accordingly, plaintiffs’ failure to assert any irreparable harm is fatal to their quest for a preliminary injunction. 25 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 31 of 34 III. The Balance of Equities Tips Heavily in Favor of the Committee The balance of the equities overwhelmingly favors the Committee. Trump summarily asserts that he would be injured by Mazars’s compliance with the subpoena. But there is no basis for assuming such injury if Mazars produces financial records to the Committee in the same manner that countless entities—including accounting firms, banks, and other financial institutions—routinely produce financial records in response to civil discovery subpoenas, government administrative subpoenas or civil investigative demands, grand jury subpoenas, and the like. By contrast, the Committee’s interest in prompt compliance with its subpoena is of the highest order. As the Supreme Court has held, Congress’s “power of inquiry—with process to enforce it—is an essential and appropriate auxiliary to the legislative function.” McGrain, 273 U.S. at 174. “The power of inquiry” extends “over the whole range of the national interests concerning which Congress might legislate.” Barenblatt, 360 U.S. at 111. “A legislative body cannot legislate wisely or effectively in the absence of information respecting the conditions which the legislation is intended to affect or change; and where the legislative body does not itself possess the requisite information—which not infrequently is true—recourse must be had to others who do possess it.” McGrain, 273 U.S. at 175. Trump’s argument that the Committee has “no urgent need for the subpoenaed documents,” Pls.’ Mem. at 13, is not only wrong— because an undue delay would inflict the legally protectable harms of loss of information and institutional diminution of the Committee’s subpoena power, see Committee on the Judiciary, U.S. House of Representatives v. Miers, 558 F. Supp. 2d 53, 71 (D.D.C. 2008)—it is also an improper usurpation of the House’s constitutional power to investigate and conduct oversight. No outside entity, whether a subpoena recipient like Mazars or the subject of the records being sought, is permitted to micromanage the Committee’s investigations or dictate what is or is not 26 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 32 of 34 urgent. See Eastland, 421 U.S. at 509 (“The wisdom of congressional approach or methodology is not open to judicial veto.”). Here, the Committee is investigating matters of immense national importance, and the information contained in Mazars’s documents appears to be a key part of those investigations. The Committee’s interest in obtaining information relevant to its investigations would be harmed by any injunctive relief in this case. That the Committee’s overarching investigations are within its legislative power should be the end of the inquiry. Cf. McSurely, 521 F.2d at 1041 (“There is no requirement that every piece of information gathered in [a Congressional] investigation be justified before the judiciary.”). The balance of the equities thus favors denial of the motion for a preliminary injunction. IV. The Public Interest Supports Enforcement of the Subpoena For the same reasons, the public interest supports denial of relief. There is a “clear public interest in maximizing the effectiveness of the investigatory powers of Congress,” and “the investigatory power is one that the courts have long perceived as essential to the successful discharge of the legislative responsibilities of Congress.” Exxon Corp., 589 F.2d at 594. Plaintiffs’ contrary argument rests on the same flawed arguments refuted above and ignores the clear and compelling public interest in the speedy and efficient conduct of the Committee’s investigations. Even in the less-pressing context of administrative investigations, the D.C. Circuit has “recognized a strong public interest in having [such] investigations proceed expeditiously and without impediment.” Linde Thomson Langworthy Kohn & Van Dyke, P.C. v. Resolution Trust Corp., 5 F.3d 1508, 1514 (D.C. Cir. 1993) (quotation marks omitted). Likewise, the public interest in expeditious and unimpeded Congressional investigations is compelling. 27 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 33 of 34 CONCLUSION For the foregoing reasons, plaintiffs’ request for a preliminary injunction should be denied, the Court should issue an order holding the subpoena valid and enforceable, and the case should be dismissed with prejudice. Respectfully submitted, /s/ Douglas N. Letter DOUGLAS N. LETTER (D.C. Bar No. 253492) General Counsel TODD B. TATELMAN (VA Bar No. 66008) Deputy General Counsel MEGAN BARBERO (MA Bar No. 668854) Associate General Counsel BROOKS M. HANNER (D.C. Bar No. 1005346) Assistant General Counsel OFFICE OF GENERAL COUNSEL* U.S. HOUSE OF REPRESENTATIVES 219 Cannon House Office Building Washington, D.C. 20515 (202) 225-9700 (telephone) (202) 226-1360 (facsimile) douglas.letter@mail.house.gov Counsel for the Committee on Oversight and Reform of the U.S. House of Representatives May 1, 2019 * The Office of General Counsel wishes to acknowledge the assistance of law clerks Christine Coogle, Sarah Friedman, and Lily Hsu, students at The George Washington University Law School, in preparing this brief. 28 Case 1:19-cv-01136-APM Document 20 Filed 05/01/19 Page 34 of 34 CERTIFICATE OF SERVICE I certify that on May 1, 2019, I caused the foregoing document to be filed via this Court’s CM/ECF system, which I understand caused service on all registered parties. I further certify that I served a copy of the foregoing document by email on counsel for defendant Mazars USA LLP: Inbal P. Garrity BlankRome The Chrysler Building 405 Lexington Avenue New York, NY 10175 igarrity@blankrome.com /s/ Douglas N. Letter Douglas N. Letter Case Document 20-1 Filed 05/01/19 Page 1 of 2 IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA DONALD J. THE TRUMP ORGANIZATION, TRUMP ORGANIZATION THE TRUMP HOLDINGS THE DONALD J. TRUMP REVOCABLE and TRUMP OLD POST OFFICE LLC, Plaz'ntz'?fs, v. Case No. MAZARS USA LLP, Defendant, COMMITTEE ON OVERSIGHT AND REFORM OF THE U.S. HOUSE OF REPRESENTATIVES, Intervenor-Defendanr. DECLARATION OF GRETA G. GAO I, Greta G. Gao, pursuant to the provisions of 28 U.S.C. 1746 declare and say: 1. I am Counsel on the Committee for Oversight and Reform of the U.S. House of Representatives. I have served in this capacity since January 2019. 2. Attached as Exhibit A is a true and correct copy of a Letter from the Honorable Elijah E. Cummings, Chairman of the Committee on Oversight and Reform of the U.S. House of Representatives, to Emory A. Rounds Director of the Of?ce of Ethics, dated January 22, 2019. 3. Attached as Exhibit is a hue and correct copy of documents produced to the Committee by Michael Cohen, President Trump?s former attorney, on February 27, 2019: Case Document 20-1 Filed 05/01/19 Page 2 of 2 Donald J. Trump?s Statements of Financial Condition, dated June 30, 2011 and June 30, 2012, as prepared by WeiserMazars LLP (now Mazars USA LLP), and Donald J. Trump?s Summary of Net Worth as ofMarch 31, 2013. I declare under penalty of perjury that the foregoing is true and correct. Executed on May 1, 2019, in Washington, DC. Greta G. Gao Case Document 20-2 Filed 05/01/19 Page 1 of 7 Exhibit A 05/01/19 Page 2 Of 7 CHAIRMAN RANKING MINORITY MEMBEH Qtungtess at the Titlm?teh ?tates $901151: at ?tpresmtatihts? COMMITTEE ON OVERSIGHT AND REFORM 2157 RAYBLIFIN HOUSE OFFICE BUILDING WASHINGTON, DC 20515?6143 [202} 225 5051 2135?50712 January 22, 2019 The Honorable Emory A. Rounds Director Of?ce of Government Ethics 1201 New York Avenue NW Suite 500 Washington, DC. 20005 Dear Director Rounds: I am writing to request documents related to President Donald Trump?s reporting of debts and payments to his personal attorney, Michael Cohen, to silence women alleging extramarital affairs with the President before the election. As you know, the Ethics in Government Act requires all federal of?cials, including the President, to publicly disclose ?nancial liabilities that could impact their decision?making. On May 16, 2018, after reviewing President Trump?s May 2018 personal ?nancial disclosure forms, the Acting Director of the Of?ce of Government Ethics (OGE) at the time, David J. Apol, wrote to Deputy Attorney General Rod Rosenstein, stating: OGE has concluded that, based on the information provided as a note to part 8, the payment made by Mr. Cohen is required to be reported as a liability. OGE has determined that the information provided in that note meets the disclosure requirements for a reportable liability under the Ethics in Government Act.1 To assist our investigation of this matter, please provide the following documents by February 1, 2019: 1. All communications with any White House employee or any nongovernment representative for the ?ler related to the determination made by OGE regarding Note 3 to Part 8 of President Trump?s May 2018 OGE Form 278e, as referenced in the May 16, 2018, letter to the Department of Justice; and I Letter from David J. ApoI, Acting Director, Of?ce of Govemment Ethics, to Rod J. Rosenstein, Deputy Attorney General, Department of Justice (May 16, 2018) (online at Case Document 20-2 Filed 05/01/19 Page 3 of 7 The Honorable Emory A. Rounds Page 2 2. All OGE materials related to the reporting of liabilities or payments made to or by Michael Cohen on President Trump?s June 2017 OGE Form 278e and May 2018 OGE Form 2786. The Committee on Oversight and Reform is the principal oversight committee of the House of Representatives and has broad authority to investigate ?any matter? at ?any time? under House Rule X. In addition, House Rule X, clause 3(i) specifically charges the Committee with conducting oversight of ?the operation of Government activities at all levels, including the Executive Of?ce of the President.? An attachment to this letter provides additional instructions for responding to the Committee?s request. If you have any questions regarding this request, please contact my staff at (202) 225?5051. Thank you for your prompt attention to this request. Sincerely, Elijah . Cummings Chairman Enclosure cc: The Honorable Jim Jordan, Ranking Member La.) Case Document 20-2 Filed 05/01/19 Page 4 of 7 Responding to Oversight Committee Document Requests In complying with this request, produce all responsive documents that are in your possession, custody, or control. whether held by you or your past or present agents, employees, and representatives acting on your behalf. Produce all documents that you have a legal right to obtain, that you have a right to copy, or to which you have access, as well as documents that you have placed in the temporary possession, custody, or control of any third party. Requested documents, and all documents reasonably related to the requested documents. should not be destroyed, altered, removed, transferred, or otherwise made inaccessible to the Committee. In the event that any entity, organization, or individual denoted in this request is or has been known by any name other than that herein denoted, the request shall be read also to include that alternative identi?cation. The Committee?s preference is to receive documents in electronic form CD, memory stick, thumb drive, or secure ?le transfer) in lieu of paper productions. Documents produced in electronic format should be organized, identified, and indexed electronically. Electronic document productions should be prepared according to the following standards: a. The production should consist of single page Tagged Image File files accompanied by a Concordance-format load file, an Opticon reference file, and a file defining the fields and character of the load ?le. b. Document numbers in the load file should match document Bates numbers and TIF file names. 0. lfthe production is completed through a series of multiple partial productions, field names and file order in all load files should match. d. All electronic documents produced to the Committee should include the following fields ofmetadata Specific to each document, and no modifications should be made to the original metadata: BEGDOC, ENDDOC, TEXT, BEGATTACH, ENDATTACH, PAGECOUNT, CUSTODIAN, DATE, TIME, SENTDATE, SENTTIME, BEGINDATE, BEGINTIME, ENDDATE, ENDTIME, AUTHOR, FROM, CC, TO, BCC, SUBJECT, TITLE, FILENAME, FILEEXT, FILESIZE, DATECREATED, TIMECREATED, DATELASTMOD. TIMELASTMOD, 15. Case Document 20-2 Filed 05/01/19 Page 5 of 7 NATIVELINK, EXCEPTION, BEGATTACH. Documents produced to the Committee should include an index describing the contents ofthe production. To the extent more than one CD, hard drive, memory stick, thumb drive, zip ?le, box, or folder is produced, each should contain an index describing its contents. Documents produced in response to this request shall be produced together with copies of file labels, dividers, or identifying markers with which they were associated when the request was served. When you produce documents, you should identify the paragraph(s_) or request(s) in the Committee?s letter to which the documents respond. The fact that any other person or entity also possesses non-identical or identical copies of the same documents shall not be a basis to withhold any information. The pendency ofor potential for litigation shall not be a basis to withhold any information. In accordance with 5 552(d), the Freedom of Information Act (FOIA) and any statutory exemptions to FOIA shall not be a basis for withholding any information. Pursuant to 5 U.S.C. 552a(b)(9), the Privacy Act shall not be a basis for withholding information. If compliance with the request cannot be made in full by the specified return date, compliance shall be made to the extent possible by that date. An explanation of why full compliance is not possible shall be provided along with any partial production. In the event that a document is withheld on the basis of privilege, provide a privilege log containing the following information concerning any such document: every privilege asserted; the type of document; the general subject matter; the date, author, addressee, and any other recipient(s); the relationship of the author and addressee to each other; and the basis for the privilege(s) asserted. If any document responsive to this request was, but no longer is, in your possession, custody, or control, identify the document (by date, author, subject, and recipients). and explain the circumstances under which the document ceased to be in your possession, custody, or control. Ifa date or other descriptive detail set forth in this request referring to a document is inaccurate, but the actual date or other descriptive detail is known to you or is otherwise apparent from the context ofthe request, produce all documents that would be responsive as ifthe date or other descriptive detail were correct. Case Document 20-2 Filed 05/01/19 Page 6 of 7 This request is continuing in nature and applies to any newly-discovered information. Any record, document, compilation ofdata, or information not produced because it has not been located or discovered by the return date shall be produced immediately upon subsequent location or discovery. All documents shall be Bates-stamped sequentially and produced sequentially. Two sets of each production shall be delivered, one set to the Majority Staff and one set to the Minority Staff. When documents are produced to the Committee, production sets shall be delivered to the Majority Staff in Room 2157 ofthe Rayburn House Office Building and the Minority Staff at a room oftheir designation. Upon completion of the production, submit a written certification, signed by you or your counsel, stating that: a diligent search has been completed ofall documents in your possession. custody, or control that reasonably could contain reSponsive documents; and (2) all documents located during the search that are responsive have been produced to the Committee. Definitions The term ?document? means any written, recorded, or graphic matter ofany nature whatsoever, regardless of how recorded, and whether original or copy, including, but not limited to, the following: memoranda, reports, expense reports, books, manuals, instructions, financial reports, data, working papers, records, notes, letters, notices, confirmations, telegrams, receipts, appraisals, pamphlets, magazines, newspapers, prospectuses, communications, electronic mail (email), contracts, cables, notations of any type of conversation, telephone call, meeting or other inter-office or intra-ofi'ice communication, bulletins, printed matter, computer printouts, teletypes, invoices, transcripts. diaries, analyses, returns, summaries, minutes, bills, accounts, estimates, projections, comparisons, messages, correspondence, press releases, circulars, financial statements, reviews, opinions, offers, studies and investigations, questionnaires and surveys, and work sheets (and all drafts, preliminary versions, alterations, modifications, revisions, changes, and amendments ofany of the foregoing, as well as any attachments or appendices thereto), and graphic or oral records or representations of any kind (including without limitation, photographs, charts, graphs, microfiche, microfilm, videotape, recordings and motion pictures), and electronic, mechanical, and electric records or representations of any kind (including, without limitation, tapes, cassettes, disks, and recordings) and other written, printed, typed, or other graphic or recorded matter ofany kind or nature, however produced or reproduced, and whether preserved in writing, film, tape, disk, videotape, or otherwise. A document bearing any notation not a part ofthe original text is to be considered a separate document. A draft or non?identical cepy is a separate document within the meaning ofthis term. The term ?communication? means each manner or means ofdisclosure or exchange of information, regardless of means utilize-d, whether oral, electronic, by document or La) 11113119?1 119111 110 81111013 301111110 .10 31103.10d 1113 131113 311031011 11311111311 1113 311130111 ?11311131111p111_, 111.101 0111 ?10131110111 00111103110 01111101110 111113 .10 ?.10101311110011113 ?001(01d1110 11100111101108 113100113 ?001101111110 113110131A0.1d ?001101111110 11100131111011 ?001101111110 011111?111311 ?10011.10 ?00/101d1110 130111301 ?10111111011133 11110111101111 ?101013111100 111013110d013111 ?111101101 ?00111310p ?001101111110 01013.1. 013 ?101013111100 ?11113111131100 ?00101111110 113113130 ?001101111110 130111011011 ?1110813 111030.111 .10 131311 [(1113 311130111 ?0011011111101, 111.101 0111 11011013311311.111110111113111 K1113 111 100111113 113111 01 111011111011 31 .10 ?11111111 3130p ?01 3101101 ?3011313 ?301111110p1 ?31001101 ?301p0111110 ?3111311100 ?3011111131103 113111 311111111113 311130111 ?100111113 110/11? 111113 01 10011301 1111111 ??01 3111113101 .10 8111110101,, .10 ?01 p011310.1,. 111.101 0111 '303131113 1111101131 1113 131113 111113 (0) p013 310111111111 01101111 p1113 3301131313 113110310d .10 330u131111 3111311131/11p111 0111 (11) 501111 131113 01111311 01011111100 311131113111113111 0111 :110111311110?1111 811111101101 0111 0131/10111 01 311130111 ?31131113111113111 11101113 110113011b 13 111 p0311 11011111 ?21111110111? 111.101 0111 ?.10/1003113111111 d111310111110 1121113 31311 11111110 001111311 0111 110111111 111 .10 10111100 3031010110 11111110 113%01 1301111311 0111 11011111110110 301111110 1110111010103? .10 33011131111 ?113801 .101110 .10 ?30113011311113 ?3111113101011110111 ?30111111011 ?31110111111311013 ?3110131A1p ?301131111113 ?301.1131p13q113 ?31311.11 ?30111131111100 111111111311 p01111111 ?31101131011100 ?31101131003313 ?31111131011111311 ?3111111 ?3111111 111113 313 110111 313 11111110 113801 p01111311 0111 311130111 ?1111131111103? 111.101 0111 ?:01 1301111111 1011 11111 ?3111131110111? 11130111 01 11113130111 p0111131100 011 1113113 ju1pn10u1, 111.101 0111 ?310131108 .101110u p1113 011111111101 0111 30131110111 01111110313111 0111 '13310/1 001/1 p013 ?10111111111 113111111 30131110111 11311131113 011.1 '0d003 311 0p131110 011 01 130111131100 011 031111101110 11131111 113111 1101113111101111 111113 13011b01 3111110 011003 0111 1111111111 3111.111 01111011110111113113 .10 1110111101111111001011110 131113 1111330111 130111131100 011 1113113 p113 ?131113,, 3111101 0111 031111101110 .10 ?11011130111103 0313330111 ?0313330111 31/113 .10 31/31/11 ?0313330111 1111313111 ?0813330111 1301 ?(00111013 01100111 .10 1101313013) 11131110 8111131110111 0813330111 01110110010 ?303130101 ?1113111 ?011111133131 ?011011110101 Kq ?8111100111 13 111 1011101111 p1113 ?031111101110 A 10 A 3619cl 61/10/90 1U3UJHOOG 959:) '6 Case Document 20-3 Filed 05/01/19 Page 1 of 46 Exhibit Case Document 20-3 Filed 05/01/19 Page 2 of 46 WeiserMazars LLP DONALD J. TRUMP Statement of Financial Condition June 30. 2011 .. .. . . WeiserMazars Accoummc TAX ADVISORY WEISERMAZARS LLP IS AN INDEPENDENT MEMBER FIRM OF MAZARS GROUP. Case Document 20-3 Filed 05/01/19 Page WeiserMazars INDEPENDENT COMPILATION REPORT To Donald J. Trump: We have compiled the accompanying statement of ?nancial condition of Donald J. Trump as of June 30. 2011. We have not audited or reviewed the accompanying ?nancial statement and, not express an opinion or provide any assurance about whether the ?nancial statement is in accordance with accounting principles generally accepted in the United States of America. Donald J. Trump is responsible for the preparation and fair presentation of the ?nancial statement in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control irrelevant to the preparation and fair presentation of the ?nancial statement. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certi?ed Public Accountants. The objective of a compilation is to assist Donald J. Trump in presenting ?nancial information in the form of ?nancial statements without undertaking to obtain or provide any assurance that there are no material modi?cations that should be made to the ?nancial statement. We did become aware of departures from accounting principles generally accepted in the United States ofAmerica that are described in the following paragraphs. Accounting principles generally accepted in the United States of America require that in order to reflect amounts to be received in the future at estimated current values the rights must be non- forfeitable, ?xed and determinable and not require any future services. As discussed in Notes 3, 4, and 5, several of the values expressed have been based on future interests that, in some instances, are not for fixed or determinable amounts and, in some instances, are based on performance of future services. Accounting principles generally accepted in the United States of America require that, with respect to each closely held business entity, summarized information about assets, liabilities and results of operations for the most current year be disclosed in the ?nancial statements. In addition, the current estimated value of each closely held business should be recorded as a net investment (assets net of liabilities). Lastly, the ownership percentages of each closely held business should be disclosed. The accompanying statement of ?nancial condition does not include the required summarized disclosures and reports some closely held business entities in a manner that separately states gross assets and liabilities and states certain cash positions separately from their related Operating entity and does not disclose Mr. Trump's ownership percentage in certain closely held businesses. WEISERMAZARS LLP 3000 MARCUS AVENUE LAKE Success. New YORK 11042 . - ., TEL: 516.488.1200 FAX1515.433.1233 PraXIty: 1 arrsrura? GLOBAL 0F IHDETEIIDEPH LLP Is AN INDEPENDENT MEMBER FIRM or MAZARS GROUP. Case Document 20-3 Filed 05/01/19 Page azars Accounting principles generally accepted in the United States ofAmcrica require that the receipt of non-interest bearing deposits in exchange for rights .or privileges be recorded at the present value of the liability: As discussed in Note 3, the present value of the liability for non?interest bearing deposxt's received as a condition in club facilities has not been included in the accompanying statement of financial condition. Accounting principles generally accepted in the United States of America require that personal financial statements include a provision for current income taxes, as well as estimated income taxes on the differences between the estimated current values ofassets and the estimated current amounts of liabilities and their tax bases. The accompanying statement of financial condition does not include such provisions. Accounting principles generally accepted in the United States of America require that personal ?nancial statements report cash and marketable securities as separate amounts. The accompanying statement of [inaneral condition reports cash and marketable securities as a single amount. Accounting principles generally accepted in the United States of America require that personal ?nancial statements include all assets and liabilities ofthe individual whose financial statements are presented. The accompanying statement of financial condition does not include the followin?r for Trump international Hotel Tower Chicago and Trump International Hotel Tower La: Vegas: 1) real property and related assets, 2) mortgages and loans payable, and 3) guarantees which Donald J. Trump may have provided. The effects of the departures from accounting principles generally accepted in the United States of America as described above have not been determined. Because the signi?cance and pervasiveness of the matters discussed above make it dif?cult to assess their impact on the statement of financial Condition, users of this financial statement should recognize that they might reach different conclusions about the financial condition of Donald J. Trump if they had access to a revised statement of financial condition without the above referenced exceptions to accounting principles generally accepted in the United States of America. lit/Mam, CERTIFIED ACCOUNTANTS Lake Success, NY October 6, 2011 Case Document 20-3 Filed 05/01/19 Page 5 of 46 DONALD J. TRUMP STATEMENT OF FINANCIAL CONDITION JUNE 30, 2011 (See Independent Accountants" Compilation Repart) ASSETS Cash and marketable securities Escrow and reserve deposits and prepaid expenses Real and operating properties: Trump Tower - 725 Fifth Avenue, New York, New York NIKETOWN - East 57th Street, New York, New York 40 Wall Street - New York, New York Trump Park Avenue - New York, New York Club facilities and related real estate - New York, Florida, New Jersey, California, Washington DC and Scotland The Trump World Tower at United Nations Plaza - New York, New York 100 Central Park South - New York, New York Trump Plaza, commercial and retained residential portions - New York, New York Trump Palace, Trump Pare and Trump Pare East Condominiums, commercial portions - New York, New York Trump International Hotel and Tower New York, New York Properties under development - Westchester County, New York and Beverly Hills, California Partnerships and joint ventures - (net of related debt): 1290 Sixth Avenue, New York, New York and 555 California Street, San Francisco, California Miss Universe Pageants Real estate licensing developments Other assets Total assets 258300.00] 0! I 490000000 363,700,000 524,700,001.) 31 1,600.10, 1,314,600,009 2 I ,40'100? 31,300,000 38.200000 12,900,000 27,400,000 273 ,200,000 720,000,000 15,000,000 1 10,000,000 184 100 000 0.00 The accompanying notes are an integral part of this ?nancial statement. Case Document 20-3 Filed 05/01/19 Page 6 of 46 LIABILITIES AND NET WORTH Accounts payable, accrued expenses and retention payahlc 3,700,000 Loans payable on real and Operating properties: Loan related to Trump Tower 27,770,000 Secured lease bonds NIKETOWN 53,080,000 Loan related to 40 Wall Street 160,000,000 Loans related to club facilities and related real estate 24.170.000 Loan related to Trump Park Avenue 22,750,000 Loan related to the commercial and retained residential portions of Trump Plaza 8,470,000 Loan related to Trump International Hotel and Tower, New York 7,000,000 Loan related to properties under development in Westchester County, New York 7,690,000 Mortgages and loans payable secured by other assets 20,780,000 335,410,000 Commitments and contingencies Net worth Total liabilities and net worth 4 59 00 0 1. Case Document 20-3 Filed 05/01/19 Page 7 of 46 DONALD J. TRUMP NOTES TO STATEMENT OF FINANCIAL CONDITION (See Independent Accountants? Compilation Report) BASIS OF PRESENTATION: The accompanying statement of ?nancial condition consists of the assets and liabilities of Donald J. Trump. Assets are stated at their estimated current values and liabilities at their estimated current amounts using various valuation methods. Such valuation methods include, but are not limited to, the use of appraisals, capitalization of anticipated earnings, recent sales and offers, and estimates of current values as determined by Mr. Trump in conjunction with his associates and, in some instances, outside professionals. Considerable judgment is necessary to interpret market data and develop the related estimates of current value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that could be realized upon the disposition of the assets or payment of the related liabilities. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated current value amounts. Accounting principles generally accepted in the United States of America require personal ?nancial statements include a provision for current income taxes, as well as estimated income taxes on the differences between the estimated current values of assets and the estimated current amounts of liabilities and their tax bases. The accompanying statement of ?nancial condition does not include such provisions. Certain immaterial personal assets and liabilities, such as automobiles, personal and household effects and personal payables have not been re?ected in the accompanying ?nancial statement. Pursuant to GAAP, this ?nancial statement does not re?ect the value of Donald J. Trump?s worldwide reputation. When attached to a real property interest, product lines or gaming venture, Mr. Trump?s name conveys a high degree of quality and profitability. His persona rises to the level of an internationally recognized brand name. This prestige significantly enhances the value of the properties reflected in this financial statement, as well as that of his future projects. For example, the selling prices of condominium units at Trump Tower, The Trump World Tower at United Nations Plaza and Trump International Hotel and Tower New York have been recorded at among the highest known levels per square foot. The goodwill attached to the Trump name has significant financial value that has not been reflected in the preparation of this financial statement (See Note 5). Case Document 20-3 Filed 05/01/19 Page 8 of 46 CASH AND MARKETABLE SECURITIES: Cash and marketable securities represents amounts held by Donald J. Trump personally, and amounts in operating entities used for working capital, debt service and other business purposes. Included in this amount are common stock, mutual funds, a hedge fund, corporate notes and bonds, and a United States Treasury Security. REAL AND OPERATING PROPERTIES: Donald J. Trump and entities that he owns or controls, owns real and operating properties. Estimates of the current value of the properties and related debt are determined on various bases, as described below. Trump Tower Donald J. Trump is currently the owner of 100% ofthe equity interests in the entities that own and operate the commercial and retail elements of the 68 story mixed-use property known as Trump Tower. The property also contains residential condominiums that are owned by the residents. The commercial and retail portions of the property are located at 725 Fifth Avenue between East 56th and East 57[ Streets in New York City. It has been described as New York's most famous contemporary building and third most visited attraction with in excess of4.5 million visitors annually. Trump Tower stands as a symbol of quality and success and is unequaled in the quality of its retail, professional of?ce and private condominium Space. Designed by renowned architect Der Scutt, this 68 story bronze glass structure on Fifth Avenue boasts 178,000 square feet of commercial space and 114,000 square feet of retail space. Some of the major tenants are Gucci America Inc., Industrial and Commercial Bank of China, Capital Management and Star Branding (Tommy Hil?ger ventures). Until The Trump World Tower at United Nations Plaza was constructed, Trump Tower was the tallest residential building and concrete structure in Manhattan. The estimated current value of $490,000,000 is based on an evaluation by Mr. Trump in conjunction with his associates and outside professionals. The interest that Mr. Trump?s entities have in this property has been pledged as collateral with respect to a loan payable. As of June 30, 2011 the amount of this debt was $27,770,000. The note matures on February 1, 2013 and bears interest at the rate of7.36%. Funds in the amount of $500,000 have been escrowed pursuant to the terms of this loan. This asset is reflected in this ?nancial statement under the caption ?Escrow and Reserve Deposits and Prepaid Expenses." Case Document 20-3 Filed 05/01/19 Page 9 of 46 REAL AND OPERATING PROPERTIES (CONTINUED): NIKETOWN Donald J. Trump is currently the owner of 100% of the equity interests in the entities that are the lessees with respect to two long?term ground leasehold estates relating to the land and buildings located between Fifth and Madison Avenues and principally on 57?h Street in New York City. On December 8. 1994, the premises were leased to NIKE Retail Services. Inc. The NIKETOWN retail store is a single integrated building with ?ve ?oors containing approximately 65,000 square feet. NIKE Retail Services. Inc. characterizes its NIKETOWN stores as highaproliie stores designed to showcase NIKE products. The building has direct access to both the Trump Tower Atrium and the IBM Through?Block Arcade. The PTOPCFW is leased 10 NIKE Retail Services, Inc. for a term that will end on May 3 1 2017. The lessee will then have the option to extend the lease, for three five?year terms beyond that date. The interest that Mr. Trump?s entities have in this preperty secures bonds that, as of June 30, 2011, had an unpaid value of $53,080,000. These are 7.125% secured lease bonds that are designed to be self-amortizing through scheduled payments, the last of which will take place on June 1, 2017. The bond payments are designed to be satis?ed by the minimum rental payments under the terms of the NIKE lease. Funds in the amount of 51,740,000 have been escrowed pursuant to the terms of the bonds. This asset is reflected in this ?nancial statement under the caption ?Escrow and Reserve Deposits and Prepaid Expenses.? The current value of $263,700,000 re?ects the net proceeds which Mr. Trump in conjunction with his associates and outside professionals expect to be derived from rental activities pursuant to the lease described above, as well as the residual value of the property. Case Document 20-3 Filed 05/01/19 Page 10 of 46 3. REAL AND OPERATING PROPERTIES (CONTINUED): 40 Wall Street On November 30, I995 entities, which are wholly owned by Donald J. Trump, became the lessee under a long-term ground lease, which was subsequently amended in 2007, for the property at 40 Wall Street in New York City. This is a 72-story tower consisting of 1.3 million square feet. Mr. Trump has restored this property to its posmon as downtown Manhattan's premier of?ce building. The estimated current value of $524,700,000 is based upon a successful renegotiation 'of the ground lease and an evaluation made by Mr. Trump in conjunction with his associates and outside professionals of leases that have been signed or are currently the subject of negotiation, and a cap rate was applied to the resultant cash flow to be derived from the building?s operations. Some ofthe major tenants are CNA Insurance, Insurance, Walgreen?s/Duane Reade, Hilton Hotels and American Precious Metals Exchange. In the evaluation of this property provision was made for ground rent payments when forecasting the anticipated cash flow. The property is subject to a mortgage payable in the amount of $160,000,000 as of June 30, 2011. The interest rate on the note has been ?xed through an interest rate swap agreement at a rate of 5.71% until the initial maturity date, November 10, 2017. During this time, if certain cash flow provisions are met, the loan requires principal payments. This loan may be extended for five years beyond that initial maturity date. The mortgage is collateralized by the lessee entity?s interest in the property. Funds in the amount of $5,020,000 have been escrowed pursuant to the terms of this mortgage. This asset is reflected in this ?nancial statement under the caption ?Escrow and Reserve Deposits and Prepaid Expenses.? Trump Park Avenue Donald J. Trump owns all but a fractional interest of an entity that has converted the former Delmonico Hotel at 59?1 Street and Park Avenue in New York City into a property that consists of 134 residential condominium units that range from one to seven bedrooms. Duplex penthouse units are located on the 31? and 32"d floors. The property also contains 30,000 square feet of commercial space. Costas Kondylis, a prominent architect long associated with luxury architecture, was engaged to maintain the prewar aesthetic of the area by designing elegant apartment homes. Mr. Kondylis has previously designed such prominent properties as Trump International Hotel and Tower in New York City, The Trump World Tower at United Nations Plaza, and 610 Park Avenue that was a conversion of the former Mayfair Hotel. Trump Park Avenue is synonymous with an upscale international lifestyle characterized by graciousness and old world luxury skillfully blended with modernity at a truly unrivaled location. Case Document 20-3 Filed 05/01/19 Page 11 of 46 3. REAL AND OPERATING PROPERTIES (CONTINUED): Trump Park Avenue (Continued) As ofJune 30, 2011, 11 units have been delivered at prices that exceeded $1,850 per square foot. The estimated current value of $311,600,000 is based upon an evaluation made by Mr. Trump in conjunction with his associates and outside professionals of the amount that he will earn as a result ofthe sale of the remaining condominium units, as well as the residual value of the commercial space. Funds in the amount of $800,000 have been escrowed pursuant to the terms of the loans. Tins asset is re?ected in this ?nancial statement under the caption ?Escrow and Reserve Deposits and Prepaid Expenses." The unsold condominium units have been pledged as collateral with respect to a loan payable. As of June 30, 2011 the amount of this debt was $22,750,000. The note, which is collateralized by the unsold condominium units, bears interest at the rate of 5.5% and matures on August 1, 2015. - Club Facilities and Related Real Estate Entities wholly owned by Mr. Trump have acquired certain properties for the purpose of developing them into club facilities. Several of these clubs will also contain residential units that they will sell. The estimated current value of $1,314,600,000 is based on an assessment-of the cash flow that is expected to be derived from club operations, the sale of residential units after subtracting the estimated costs to be incurred, or recent sales of properties in a similar location. That assessment was prepared by Mr. Trump working in conjunction with his associates and outside professionals. The Mar-A-Lajto Club in Palm Beach. Florida Mr. Trump acquired this property in 1985 and transferred ownership to a wholly owned limited liability company in 1995. It is now an exclusive private club which consists of 117 rooms. Formerly known as the Marjorie Merriweather Post Estate, it features a 20,000 square foot Louis XIV style ballroom, world class dining, tennis courts, spa, cabanas and guest cottages. Prior to June 1, 2010, one condition of membership was the contribution of a non-interest bearing deposit that does not require repayment until thirty years after receipt, and then only upon the member?s resignation. The fact that Mr. Trump will have the use of these funds for that period without cost and that the source of repayment will most likely be a replacement membership has led him to value this liability at zero. Through June 30, 2011 these deposits amounted to $38,040,000. Case Document 20-3 Filed 05/01/19 Page 12 of 46 3. REAL AND OPERATING PROPERTIES (CONTINUED): 333nm National Golf Club in Briarcliff Manor. New York Mr. Trump, through a wholly owned entit ac uired Briar Briarcliff Manor, New York for $8,500,000. yTruniip National play on July 1, 2002. Construction of a 42,000 square foot clubhouse was completed during April 2005. Three hundred and fifty memberships are being offered. Prior to June 1, 2010, one condition of membership was the contribution of a non?interest bearing deposit that does not require repayment until thirty years after receipt, and then only upon the member's resignation. The fact that Mr. Trump will have the use of these funds for that period without cost and that the source of repayment will most likely be a replacement membership has led him to value this liability at zero. Through June 30, 2011 these deposits amounted to $35,890,000. The real property was subject to a mortgage payable of $8,600,000 that was repaid July 2010. In addition to the golf club, this property, when fully developed, will contain 47 luxury condominium units, consisting of 16 townhouses that are fully developed and sold and 31 units to be developed as a mid-rise building. Selling prices ranged from $1,500,000 to 82,450,000 with regard to the townhouse units and will range from $500 to $835 per square foot with regard to units in the mid-rise building. Trump International Golf Club in Palm Beach County. Florida Mr. Trump, through wholly owned entities, acquired a long?term leasehold interest in land that he developed into a ?rst-class golf course along with a 45,000 square foot super~luxury clubhouse that is currently in operation. Sufficient land is under lease and the entity has developed an additional nine~hole course that is used in conjunction with the original eighteen holes, thus creating a twenty seven-hole world-class golf facility. Based on this expanded facility, the club is able to offer five hundred and fi?y memberships. Prior to June 1, 2010, one condition of membership was the contribution of a non?interest bearing deposit that does not require repayment until thirty years after receipt, and then only upon the member?s resignation. The fact that Mr. Trump will have the use of these funds for that period without cost and that the source of repayment will most likely be a replacement membership has led him to value this liability at zero. Through June 30, 2011 these deposits amounted to $41,990,000. The real property was subject to a mortgage payable of $6,300,000 that, was repaid July 2010. Funds in the amount of $215,000 have been escrowed with the county with regard to this property. This asset is reflected in this financial statement under the caption ?Escrow and Reserve Deposits and Prepaid Expenses.? Case Document 20-3 Filed 05/01/19 Page 13 of 46 REAL AND OPERATING PROPERTIES (CONTINUED): Trump National GolfClub in Los Angeles, California Mr. Trump, through a wholly owned entity, acquired a property that he has develo ed into a world-class golfcourse and club on the bluffs of the southern most point ofFihe Palos Verdes Peninsula in California. The course, originally designed by Pete Dye has been totally redesigned by Mr. Trump and features panoramic views of the Pacific Ocean and Catalina Island from every hole. The course offers a world-class driving range and water features on a number ofholes. The clubhouse boasts line dining in two Zagat rated restaurants. a players? lounge, and a bar and banquet facility which can host special events for up to 350 people. The real property was subject to a mortgage payable of $14,700,000 that was repaid March 201 1. in addition to the Club, Trump National GolfClub is presently zoned for 75 home sites with unparalleled ocean and golf course views. At June 30, 2011, there were 55 home sites that will sell for prices that range from $3,000,000 to $12,000,000. Trump National Golf Club in Bedminster, New Jersey Mr. Trump, through a wholly owned entity, acquired a property consisting of 580 acres that has been developed into a world-class 36 hole golf course and club in Bedminster, New Jersey. The Club was designed by Tom Fazio and opened in the summer of 2004. The Club can currently accommodate 700 members. There are 6 cottages available for rental by members. In addition to the golf course, members have the use of an Olympic sized swimming pool, tennis courts, banquet facilities, casual dining facilities and a facility with ten single bedroom suites in addition to a state?of-the-art conference room and fitness facility. Prior to June 1, 2010, one condition of membership was the contribution of a non-interest bearing deposit that does not require repayment until thirty years after receipt, and then only upon the member?s resignation. The fact that Mr. Trump will have the use of these funds for that period without cost and that the source of repayment will most likely be a replacement membership has led him to value this liability at zero. Through June 30, 2011 these deposits amounted to $40,000,000. The real property was subject to a mortgage payable of$8,200,000 that was repaid July 2010. 10 Case Document 20-3 Filed 05/01/19 Page 14 of 46 3, REAL AND OPERATING mommies (CONTINUED): mop National Goli?Club in Colts Neck, New 16pm Colts Neck. The club originally designed by Jerry Pate and re?ned by Tom Fazio combines a world class 'golf course, with an aquatic facility, tennis complex and a 75,000 Square fOOl The Club can accommodate 375 members; Prior to 7 June 1, 2010. one condition Of membership Was the contribution of a non-interest bearing deposit that does not require repayment until certain terms are met and then only upon the member?s resignation. The fact that Mr. Trump will havethe use of I these funds for that period without-cost and that the source of repayment will most likely be a replacement membership-hasled him to value this liability at zero. Through June 30, 2011 these deposits amounted to.313,430,000. Mr. Trump. through wholly Owned entities. acquired Trump National Golf Club, The real-property owned by theiclub is subject to a mortgage loan at June 30, 2011, in . the amount of $14,770,000. The loan bears an interest of 6% and matures on. September 9, 2028. - - - Trump National Golf Club in Washington DC. Mr. Trump, through wholly owned entities, acquired Trump National Golf Club, Washington, D.C, This. club, just a short distance from the nation?s capital, is comprised of two 18-holecourses built by Tom Fazio and Arthur Hills, respectively, and is located on over 600 acres withvast frontage on the beautiful historic Pctomac River. Construction has been completed to expand the 50,000 square foot clubhouse with enlarged dining space. Additionally, the ?tness, tennis and swimming facilities will be completely renovated and redesigned, creating amenities which will complement the state of the art facilities. Currently under construction is' an underground cart facility. Prior to June 1, 2010, one condition of membership was the contribution of a non-interest bearing depositthat does not require repayment until certain terms are met, and then only upon the member?s resignation. The fact that Mr; - Trump will have the use of these funds for that period without cost and that the source. of repayment will most likely be a replacement membership has led himto value this liability at zero. Through June 30, 201 _1 these deposits amounted to $16,980,000. The real property owned by the club is subject to a purchase money promissory note . that has a balance at June 30, 2011 of $9,400,000 and bears interest at the rate of The-note will mature on May 1, 2029. . -. - 11 Case Document 20-3 Filed 05/01/19 Page 15 of 46 REAL AND OPERATING PROPERTIES (CONTINUED): Trump International Golf Club in Scotland Mr. Tmmp, through wholly owned entities, has acquired 500 hectares of land on the north-east coast of Aberdecnshire. The development received outline planning permission in December 2008 for a world class, Martin Hawtree designed championship links golf course suitable for hosting major events, a second future award winning 18-holc course, a luxury clubhouse, a state of the art driving range and golf academy, a tennis centre, an equestrian centre, a luxury five-star 450 room hotel with associated conference and banquet facilities, a full-service spa, a residential village consisting of950 holiday homes and 500 single family residences and 36 golf villas. In June 2010, Mr. Trump received detailed approval of the master plan and championship golf course design, which allows Mr. Trump to start construction. Construction of the championship golf course started July 1, 2010 and will be completed by the end of 2011. Trump International Golf Club in Scotland has already started to take tee time reservations in advance ofthe July 1, 2012 opening of the championship golf course. Mr. Trump recently received approval for the construction of an internal road system and is currently preparing to submit detailed. applications for the clubhouse. Trump International Golf Club in Scotland is currently completing various infrastructure improvements, such as the construction of a golf course maintenance facility. Trump International Golf Club in Scotland is also improving other buildings onsite, such as Menie Park Lodge and MacLeod House. Trump National Golf Club in Hudson Valley, New York In 2009, entities wholly owned by Mr. Trump acquired the 300 acre Trump National Golf Club, Hudson Valley in Hopewell Junction, New York. The 18 hole championship course, is framed by breathtaking views of the Stormville Mountains and is complimented by a traditional Adirondack?style clubhouse. Improvements to the amenities include new 5,000 square foot men?s and women?s locker rooms for the members at the club. Also, plans have begun for an Olympic sized swimming complex and six Har-Tru tennis courts. Prior to June 1, 2010, one condition of membership was the contribution of a non-interest bearing deposit that does not require rapayment until certain terms are met, and then only upon the member?s resignation. The fact that Mr. Trump will have the use of these funds for that period without cost and that the source of repayment will most likely be a replacement membership has led him to value this liability at zero. Through June 30, 2011 these deposits amounted to $1,260,000. 12 Case Document 20-3 Filed 05/01/19 Page 16 of 46 3, REAL AND OPERATING PROPERTIES (CONTINUED): Mme National GolfClub Philadelphia In 2009 entities wholly owned by Mr. Trump acquired the 365 acre Trump National Golf Club- Philadelphia. With magni?cent views of the Philadelphia skyline, Trump National Golf Club - Philadelphia, located in Pine Hill. New Jersey was designed by Tom Fazio. The course has an 80 000 square foot Kentucky Blue grass two-tiered practice area. The 43,000 square foot clubhouse offers a sophisticated yet elegant feel for members and guests. Construction will begin this fall on the aquatic center. Plans are currently underway for tennis courts and a bistro. Prior to June 1, 2010, one condition of membership was the contribution of a non-interest bearing deposit that does not require repayment until certain terms are met, and then only upon the member?s resignation. The fact that Mr. Trump will have the use of these funds for that period without cost and that the source of repayment will most likely be a replacement membership has led him to value this liability at zero. Through June 30. 2011 these deposits amounted to $860,000. The Trump World Tower at United Nations Plaza Entities wholly owned by Donald J. Trump developed and constructed a super luxury residential condominium development at 845 United Nations Plaza in New York City. The 90-story tower has a gross area of 877,000 square feet and is- 860 feet in height. The building is situated at the northwest comer of the United Nations Plaza with exposures to the United Nations Park, the East River, Midtown and Downtown Manhattan. There are 370 super luxury condominium units with ceiling heights varying from 10 to 16 feet at the uppermost ?oors. As of June 30, 2011, 369 units have been sold. In addition to the condominium units, a bar and a restaurant are on the ground floor level. There is a valet parking facility for 75 cars below grade. There is also a roof top antenna structure. Mr. Trump will retain and rent out these commercial spaces. The estimated current value of $21 ,400, 000 re?ects the net proceeds which Mr Trump in conjunction with his associates and outside professionals expect that he will derive from the sale of the ?nal unit based on current pricing, as well as the residual value of the commercial space which will be retained by Mr. Trump. 13 3. Case Document 20-3 Filed 05/01/19 Page 17 of 46 REAL AND OPERATING PROPERTIES (CONTINUED): 100 Central Park South Entities wholly owned by Mr. Trump have devel0ped 100 Central Park-South in New York. City. The property, which is known as Trump Pare East Condominium, of an Sl-unit luxury apartment house located at the corner of Central Park South and The Avenue of the Americas. The property also contains a commercral condominium unit that is currently leased to three retail tenants. Through June 30, 2011, units With a value of $53,060,000 have been sold. The current value of $31,300,000 re?ects the net proceeds which Mr. Trumpdn conjunction with his associates and outside professionals expect that he derive from residential unit sales during periods subsequent to June 30, 2011 based on current pricing. Trump Plaza - Commercial and Retained Residential Portions Entities wholly owned by Donald J. Trump develOped Trump Plaza in 1983whieh was sold pursuant to a cooperative offering plan. The property is located on Third Aivenu'e between East Gist and East 62nd Streets in New York City. The assets reflected in this statement represent certain residual interests that entities wholly owned by Mr. Trump still mm. These consist of two residential units, a long-term leasehold interest in two residential townhouses, each consisting of four residential units, a parking garage and commercial Space. The estimated current value of $28,200,000 is based upon an assessment made by Mr. Trump in conjunction with his associates and outside professionals expected to be derived from rental activities pursuant to the leases, as well as the residual value of the properties. The interest that Mr. Trump?s entities have in the two residential townhouses, the parking garage and the commercial space has been pledged as collateral with respect to a loan payable. As of June 30, 2011, the amount of this debt was $8,470,000. The note matures on August 1 l, 2014 and bears interest at the rate of Funds in the amount of$105,000 have been escrowed pursuant to the terms of this loan. This asset is reflected in this ?nancial statement under the caption ?Escrow and Reserve Deposrts and Prepaid Expenses." 14 Case Document 20-3 Filed 05/01/19 Page 18 of 46 RE lL AND OPERATING PROPERTIES (CONTINUED): Trump Palace, Trump Pare a: portions Id Trump Pare East Condominiums Commercial Trump have developed the aforementioned properties owned by une 30, 2011 were: Entities wholly that remained unsold as of and the only area Palace Condominium ng garage at Trump Pare Condominium 31 storage units at Trum elements at Trump Pare East Condominium 36 storage units and a parki the commercial condominiu of312,900,000 was based on an assessment made by Mr. th his associates Of the value of the various properties The estimated current valu Trump in conjunction wi described above. Trump International Hotel and Tower - New York, New York Donald J. Trump has redeveloped the former Paramount Building at One Central Park West In New York City from an of?ce tower into a luxury residential and hotel condominium development. Although all units in. the property have been sold, entities wholly owned by Mr. Trump continue to receive certain fees relating to on-going property operations The estimated current value of $27,400,000 was based upon on an assessment mad Mr. Trump In with his associates and outside professionals of?thy 12:31:? regolnuliensation which he and entities which he owns will derive as a result . condominium 2153;31:pr as well as the value ascribed to the retained commercial an easement w'rh property. These are the garage facility, the restaurant (1 respect to the roo?Op area, all of which are now owned by wholly owned by Mr. Trump. The interest that Mr Trum . . entIty has In this w1th PYOPCIT has 57 FOha Pan Pal/able. As of June 30, 2011y the aetiird P1?dged 2'18 Cellateral . . an Interest rate of6. 18% and which matures on ifztgi: debt was Funds in the am ount of3200,000 have been escrowed pursuant to the terms of th' I IS oan. This asset is refl ected In this ?nancia DepOSIts and Prepaid Expenses?. 1 Statement under the caption ?Escrow and Reserve 15 Case Document 20-3 Filed 05/01/19 Page 19 of 46 3, REAL AND OPERATING PROPERTIES (CONTINUED): Properties Under Development In Westchester Count . Hills,Calil'ornla - . Yr ew York and acted?. Westchestgr County, New'Yorg An entity wholly'owned by Mr. Trump acquired a property known as The Mansion at seven Springs in Bedford, New York which consists of over 200 acres of land a mansion and other buildings. This property is zoned for 9 luxurious homes. It has been valued at $261,000,000 based on' an assessment made by Mr. Trump in conjunction with his associates and outside professionals ofthe projected net cash ?ow which he - would-derive as those units are constructed and sold, and the estimated fair value of the existing mansion and other'buildings. This property is the subject of a mortgage payable that had a balance due at June 30, - 2011 of $7,690,000 with an interest rate of 5.25%. This mortgage will mature on July - 1,2014.. .. Funds in the amount of $60,000 have been escrowed pursuant to the terms of this loan. This asset is re?ected in this ?nancial statement under the caption ?Escrow and Reserve Deposits and Prepaid Expenses? Beverly Hills. California Mr. Trump, through. wholly owned entities, owns a home located in Beverly Hills, California. This property is located at the intersection of Canon, Rodeo, and Sunset in snares of Beverly Hills kno'Wn as the fillets?. The home is directly across the street - from the worldfamous Beverly Hills Hotel on What many cell the most desirable lot in . the city due to its unmatched location. - The estimated current value of $12,200,000 is .based?lon Mr. Trump?s investment in the property. - .16. 4. Case Document 20-3 Filed 05/01/19 Page 20 of 46 AND JOINT VENTURES: tes of the current value of Mr. Trump's interests in partnerships and joint E53328 reflect his interest therein and are determined on various bases, as described ve below. ?90 5m" in New York. New York and 555 California Street in San Francisco, California - Although condominium sales were complete and rental activity was robust at the 76- acre Trump Place development, located along the Hudson River between 59th and 72nd Streets in Manhattan, Mr. Trump?s Hong Kong based partners made a decision to sell the rental buildings, undeveloped land, and the commercial space and reinvest the proceeds in two commercial properties. However, Mr. Trump considers the sale of the aforementioned properties to be well beneath the fair value of the properties, and is currently pursuing all remedies available to him to receive the full value ofhis share of the properties from his partners. The estimated current value, net of debt, of $720,900,000 is based on an evaluation made by Mr. Trump in conjunction with his associates and outside professionals of leases that have been signed or are currently the subject of negotiation, and a cap rate was applied to the resultant cash ?ow to be derived from the building?s operations. Miss Universe Pageants In 1996, Donald J. Trump and CBS acquired all of the assets that together are the ?Miss Universe Pageants.? In 2002 NBC became a 50% joint venture participant in those activities, replacing CBS. The company produces the Miss Universe Pageant, the Miss USA Pageant, as well as the Miss Teen USA Pageant. The pageants have been redefined to present the combination of style and intelligence that de?ne the woman of the new millennium. The alliance with NBC has enabled the Miss Universe Organization to bring together women from around the world in the spirit of first-class competition. The resultant prime-time network television specials are broadcast live to a worldwide audience. As a result of this notoriety, site fees for Miss Universe events far exceed those paid to similar organizations. The estimated current value of $15,000,000 was based on an assessment made by Mr. Trump in conjunction with his associates and outside professionals. 17 Case Document 20-3 Filed 05/01/19 Page 21 of 46 I I meet doesnot re?ect the value Of Donald J. the extent it has become associated with ~rti~s either operative or under tleveltipnient. His recognized persona has evolved pm?! :item that it has become an intemnttonally recognized brand nanie. The signi?cantly enhances the value of the properties with which he ts geneiated. 'l?hc goodwill attached to the Trump name has proven ltnanctal value in that potential users at?i'eal propertyaround the world have demonstrated Willingness to pay a sienitieaut premium for ownership or use of a Trump related As a result, edict developers or quality properties have approached Mr. Trump wath proposals for joint ventures involving ways in which his organization?s skill and. reputation will bring enhanced value to them. etc I. this ?nancial state '1 As stand I: . . Trump's reputation. except-lo Mr. Trump has fanned numerous associations with others for thepurposc of developing ropenies and is currently negotiating with others. The estimated current value of $110,000,000 was based on an assessment made by Mr. Trump in conjunction with his associates and outside professionals of the cash ?ow that is expected to be derived by him from these associations as their potential is realized. .In preparing that assessment, Mr. Trump and considered only situations which have ?evolved to the. point where signed arrangements with the other parties exist and fees and other compensation which he will earn are reasonably quanti?able. . . Temts of the agreements vary and might involve de?ned compensation per unit or contingent fees based on parameters such as selling prices or gross pro?t levels, upfront guaranteed fees, and a percentage ?of gross revenues. The process-utilized by management to select the people and properties with which the Trump name will be associated is extremely selective; each must enhance Mr. Trump?s reputation. Mr. Trump has pledged $19,760,000 of the fees derived on certain of these-agreements to his former partner in The Trump Word Tower at United Nations Plaza. This debt is re?ected as a liability under the caption ?Mortgages and loans payable secured by other assets". . - OTHER ASSETS I Trump Tower Mr. Trump owns a triplex apartment on the top three floors of Trump Tower (see Note 3). 18 Case Document 20-3 Filed 05/01/19 Page 22 of 46 OTHER ASSETS (CONTINUED): Other Properties in Palm Beach, Florida \Ar Trump owns two homes that are located in Palm Beach, Florida, adjacent to Mar-a- l. . Lago Club. respect to mterests 111 ?1051.. properties have been pledged as collateral Wit ML Tru had a balance at June 30, 201 1 of $3 10,000 and bears an Interest two loans. One loan . ove the rate known as the Six?month London Interbank ate of 1.75% per annum ab Cffering Rate as it is ?xed at certain points in time and at June 30, 201 was 2.1875%. This loan will mature on January 1. 2019. The other loan had a balance at June 30, 2011 of $710,000 and bears an interest rate of 1.50% per annum above the rate known as the six-month London Interbank Offering Rate as it is ?xed at certain pomts in time and at June 30, 2011 was 1.9375%. This loan will mature on February 1, 2019. Corporate Aireral?ts Entities owned by Donald J. Trump own a Boeing 757 jet and a Sikorsky helicopter. Other Mr. Trump and entities that he owns, control several other active businesses as well as other assets. The assets related to these interests include: an 1,100 acre vineyard in Charlottesville, Virginia along with a carriage museum, of?ce building and several other buildings licenses to operate and manage the Wollman Rink which was reconstructed by Mr. Trump in 1986 and the landmark Carousel in Central Park an international talent/model agency - a management company that supervises the operation of condominium properties, as . well as Mr. Trump?s own properties receivables representing amounts earned to date and contract rights with regard to future performances on television loans to family members Funds in the amount of $460,000 have been escrowed pursuant to the terms of Mr. Trump?s contractual commitments at the Wollman Rink. This asset is re?ected in this financial statement under the caption ?Escrow and Reserve Deposits and Prepaid Expenses." 19 Case Document 20-3 Filed 05/01/19 Page 23.0f 46 AND CONTINGENCIES: also has personal responsibilities with respect to various contracts, contracts, loan agrcentents, purchase s] -abt commitments. These include recourse obligations concerning partners to to e. ness, guarantees. relating to the completion and environmental acceptance of certain pro; sets. I Mr. Trump and his affiliates are parties to'various lawsuits and legal actions. the present tirne,'the outcome of those proceedings cannot be estimated. Mr. "1:1?th believes that these legal actions will not have a material effect on his ?nanelal pOSltlon, authorities are currently auditing Mr. Trump and certain of his af?liates. At the present time, the outcome of these examinations cannot be determined. Mr. Trump periodically maintains funds on deposit in banking institutions in eXcess of FDIC insured amounts. He is at riskier any amounts exceeding the FDIC limitatiOn. Various taxing s. SUBSEQUENT EVENTS: Mr. Trump has evaluated subsequent events through October 6, 2011, the date the ?nancrel statement was available for issuance. '20? Case Document 20-3 Filed 05/01/19 Page 24 of 46 - DONALD . TRUMP Statement of Financial Condition - June 30,2012 Case Document 20-3 Filed 05/01/19 Page 25 of 46 Weischazars MAZARS must-snows communes To Donald J. Tmmp: We have compiled the .accommnying statement of?nancisl condition of Donald 1. as of June 30, 2012., We have not audited or reviewed the accompanying. ?nancial statement and, accordingly, do not express an opinion or provide any assurance about whether the ?nancial statement is in. accordance with amounting principles generally accepted in the United States of America Donald J. Trump is responsible for the preparatiOn and no presentation of the ?nancial statement in accordance with accounting principles generally accepted in the United States of Armies and for designing, implementing, and. maintaining internal control relevant to the prepam?on and fair presentation of the ?nancial statement. Our monsib?iw is to conduct. the. compi-Iation'in accordance with Statements on Standards for Accounting and Review Services lasted by the American Institute of Certi?ed Public Accommots The objective of a compilation is to assist Donald I. ?Bump in ?nancial information in. the form of ?nancial statements without undertaking to obtain or. provide any assurance that there are no material modi?cations that should lac-made to the ?nancial statement. We did become avers ofdepartums from accounting principles generally accepted-in the United States of America that are described in the following paragraphs. Accounting principles generally accepted in the United States of America require tbst'i'n order to re?ect amounts to be received inthe ?mue atestimeted enrreutvalues therights-mustbenon- forfeitable, ?xed and detexminable and not require any metre set-woes As dismemd in Notes 4,and5, several ofthe instances, are not for ?xed or determinable amounts and, in instances, are on' performance of future services. - Accdunting. principles generally accepth in. the United States of America require that, with respect to each closely held business summarized informsiior?tsbout assets, liabilities and results of operations for the most. etc-rent. year be disclosed in? the ?nancial statements In. addition, the current estimated valueof each closely held business should be recorded as a? net investment "(assets net of liabilities). The accompanying statement of ?nancial condition does not include the required summarized disclosures and reports- some closely held business entities in a manner that separately states gross assets and liabilities and states certain cash positions soperately Etom their related operating entity. - WrisnMAths LLP- - 6o Pets Dew: Wren Sum got - New Yeas-1119; . -. TIL: 516.488.:coo - Fax: 5164883238 - memes menace.? Pra i 3, 2: AN momma-rm Min-u mm or mm snoop. Case Document 20-3 Filed 05/01/19 Page 26 of 46 --MAZAARS - . WeiserMazars Accounting principles generally accepted in the United States ofAmet-ica require that the receipt cinch?interest bearing deposits 1n exchange for rights or privileges be recorded at the present value of the liability As discussed in Note 3 the present value of the liability for nondnterest bearing deposits recei?ved as a condition of membership in club facilities has not been included or the mcmpan?ng statement of ?nancial condition Accounting principles generally accepted in the United States of America require that personal ?nancial statements include a provision for current? mactne taxes, as well as estimated mcome taxes onthed1??erences betwccutheestimatcd currentvalues ofassets andtheestirnated current amounts of liabilities and their tax bases The accompanying statetnent of ?nancial condition does not include such. provisions. Accounting principles generally accepted in the United States of America require that personal ?nancial statements report cos]: and marketable securities as separate amounts; The accompanying statement of ?nancial condition reports cash and marketable sectmh'es as a single . amount. Accounting generally accepted in the United States at America require that personal ?nancial stateroom include all assets and liabilities of the individual whose financial statements are presented The accompanying staternent of ?ncheial condition does not include the following? for International Hotel Tower Chicago and Trump International Hotel Town Las Vegas: 1) real property and related assets 2) mortgage: and loans payable, and 3) gmntees which Dcnaldl Trump may have prostided. . The e??cets- ofthe departures from accounting principles generally accepted or the United States of Medea as described above have not been: detenmned Because the signi?cance and pcrvasiveness cf the matters dimmed above make it dif?cult to . assess their impact on the statement of ?nancial condition, users of this ?nancial statement should recognize that they might reach di??crent conclusions. about the ?nancial condition of Donald Tunnp ifthey had access to a revised statement of ?rmcial condition without the above referenced exceptions to accounting principles generally accepted 1n the United States of WW 4/ CERTIFIED PUB I ACCOUNTANTS Lake Success, NY I October 12, 2012 Case Document 20-3 Filed 05/01/19 Page 27 of 46. DONALDJ. TRUMP STATEMENT or FINANCIAL easement JUNE 30, 2012 (See Independent Accountants? Compilation Report) . ASSETS Cash and marketable securities - - 8- . 169,700,000 and reserve deposits and prepaid expenses - 10380300 Real and operating properties: - Trump Tower 725 Fifth Avenue, New York, New York 501,100,000 East 57th Street, New York, New York 279,500,000 . 40 Wall-Street - New York,?New- York 527,200,000 Trump Park Avenue New York, New York 3 12.4 00,000 01110 facilities and related real estate - New Yerk, Florida, - New Jersey, California, Washington DC, North Carolina and Sectiand 1,570,300,000 The Trutnp World Tower at United Nations Plaza New York. New . 18,200,000 100 Central Park South? New York, New York 32,700,000 Plaza, commercial and retained residential por?'ons - New York, New York 30,100,000 Trump Palace, Tannp Pare and Tunnp Pare East Condominimns, commercial portiens' New York, New York 13,000,000 1 Trump. International Hotel and Towe: New York, New Yerk 27,600,000 Mansien at Seven Springs Redford, New York 131,000,000 . Partnerships and joint ventures (net of related debt): . 1290 Avenue of the Americas, New York, New York and 555 California Street, San Francisco, California 823,300,000 - Miss Universe Pageants 15,000,000 Real estate licensing deveIOpments 85,000,000 Total 839%? 34.912.300.000 The accompanying notes are an integral part of this ?nancial statement, Case Document 20-3 Filed 05/01/19 Page 28 of 46 - LIABILITIES AND NET wonm Ame payable and accmed expenses . 4,400,000 I Loans payable on real and operating properties: . - LoanrelatcdtoTrump Tower . 26 390 I100 Secured tease bonds- NIKETOWN 46396000 Loanreletedto40 Wall Street - t60:000"000 Loans related to club facilities and related-real estate ?eminen- Loan related to Tonnp Park Avenue 22,190,000 Loan related to the commercial and retained residential portiom of Trump Plaza - I 8,300,000 Loan related to Imp International Hotei and Tower, New York I 7,000,000 Loan relateci to Mansion at Seven Springs I 7,520,000 Mortgages and loanepa'yable secured by other assets I 24m: 9,1100 - 451,760, Commitments and contingencies I .000 Netwerth - . 475363.000 netwbra . LEW Case Document 20-3 Filed 05/01/19 Page 29 of 46 DONALD J. TRUMP News To STATEMENT 01? FINANCIAL CONDITION (See Independent Accountants? Compilation Report) 1.. BASIS OF PRESENTATION: The accompanying statement of ?nancial condition coneiets of the assets and liabilitier of Donald J. Trump. Assets are stated at their estimated cmrent-values and liabilities at their estimated current amounts using various valua?on'methods. - Such valuation methods include, but are not limited .to. the. use of appraisals, capitalization of anticipated earnings, recent sales and omen. and estimates of eta-tent voltage as determined by Mr. Turnip in cor?unction with his associates and, in some instances. outside professionals. Considerable judgment is Weary to interpret market data and develop the related estimates of current value. Accordingly. the estimetes- presented herein are-riot neceaecrily indicative-of the emanate that could be realized upontbe disposition of the assets (tr-payment ofthe related liabilities. The "nee of different market assumptions aadl'or estimation methodologies may have. a material - effect on the estimated current Value amounts. . -. . Accounting principles generally accepted in the United States of America . require personal ?nancial statements include-aprovisi'on for current income taxes, as well as estimated. income taxes on ?the differences between the estimated current values ofassete and-the estimated current of liabilities and theirtax bases. The accenrpanying statement of ?nancial-condition does not include such provisions. - Certain-Material personal assets and liabilities, such as automobiles, potential and household edema and place .payablee have not been re?ected in the moropanying Pursuant to .GAAP, "this ?nancial statement does not re?ect the value of Denald J. Trump?s world-wide reputation. When attached to a real property poorest, product lines or. gemhg venom, Mr. Trump?s name conveys a high degree of quality and. pro?tability. His persona rises to the-level ofa'n internationally recognized brand name. ?this prestige signi?cantly enhances the value. of. the proper-ties re?ected in this ?nancial statement, as well as that of his ?xture projects. For "example, the selling prices of condominium ?nite at Trump Tower,- The Trump World. Tower at United Nations Plaza and lemmational. Hotel and. Tower New York have been recorded at muons the 'highest?knowh levels per square foot. The. goodwill attached to the Trump name has signi?cant ?nancial value that has not been re?ected in "the. preparation of this ?nancial Statement (See Note 5). Case Document 20-3 Filed 05/01/19 Page 30 of 46 3. CASH AND MARKETABLE SECURITIES: cab and marketable securities represents amounts held by Donald J. ?Imp personally, and amounts in wholly-owned operating entities used for working capital, debt sendce and othor? business pwposes. Included in this 31110th common stock, mutual funds, "a hedge fund, corporate mics and bonds; and United States Treasury Seem-ides. REAL AND OPERATING PROPERTIES: Donald J. 'Tmmp and entities that he owns or controls, owns real and operating properties. Estimates of the current value of me properties and related debt are determined on various bases, ?as described below. Trump Tower Donald Trump is ctmently the owner of 100% of the equity interests in the entities that own and operate the commercial and retail elements of the 68 story mixed-nose property known as Trump Tower. The ?property also contains residential "condominiums that are owned by the moments. The commercial and retail "one of Streetsin New York City. It has been described as New Yorkie; most fmnous contemporary Wilding and third most; visited attraotion. with in excess 014.6 million ?visitors annually. Trump Tower stands as a symbol of quality and success and is unequaled. in-tbe quality of its mail, professional o?ice and private condominium space. Designed by renamed architect Der Scutt. this 68 story mixed use struotmo on. Fifth Avenue includes commercial and retail space housing such-tenants as Gucci America Inca, Industrial and Commercial Bank of China, Capital Management and Star Branding (Tommy Hil?ger ventures). Until The Trump world Tower at United-Nations '1?th was constructed, Trtunp Towel: was the tallest residential building and concrete mm in Manhattan. The estimated current value is basodon an evaluation byMr. Turn}: in conjunction with his associates and outside professionals. applying a can rate to. the cash ?owto be derived from the building operations. The interest that Mr. Trump?s entities have in this property has been pledged as collateral with respect to aloan payable. As of June 30, 2012 the amount of this debt was $26,890,000. The note matures on February l, 2013 and. bears interest at the rate of 7.36%. On August .30, 2012, the property was re?nanced for $100,000,000, - allowing Mr Trump to take a distribution of The new loan which bears interest at 4.2% mm on September 9, 2022. Funds in the amount. of $2,790,000 have been oscrowed pursuant? to the toms of the loan in placeas of June 30., 2012. This asset is re?ected in this ?nancial statement Under the caption ?Escrow and Reserve Deposits and Prepaid Bxpensos.? Case Document 20-3 Filed 05/01/19 Page 31 of 46 REAL AND OPERATING PROPERTIES (CONTINUED): Donald Trump is currently the owner of 100% of the equity interestsin nominee that are the lessees with respect to two long-term grand leasehold estates relating to the land and buildings located between Fifth and Madison Avenues and principally on 5'7m Street In New York City On December 8,1994,the premises were leased to NIKE - Retail Services, Inc The NRETOWN retail store is a single integrated building with ?ve ?oors containing approximately 65 000 square feet NIKE Retail Services, Inc characterizes its stores as high-pro?le stores designed to shame NIKE products The building has direct access to both the Tower Atrium and the IBM Ihmughditlook Amado I Therperty ts leasedtoMKERotall Services, Inc. fosatennthat will tendon May 31 2017. The lessee will then have the option to extend the lease, for three ?vmyoar tonne bayond that date. . I_?Il1e prepertysecmbonds?mhasof Julie 30, had an unpaid value of $46, 390 ,000. These are 7125% secured lease bonds that are designed to be selfemcr?zing through scheduled payments the last of which will take place on Jime- l, 2017 The bond payments are designed to be satis?ed bythe minimum rental paynients undercuts terms ofthoNIKElease. Funds lathe amount of$210,000 have hecneocrawed tennsofthobonds Thisasset is re?ected In this ?nancial statement under the caption ?Escrow and Reserve Deposits and Prepaid Exponsea)? ?the current value of $279?, 500 000 re?ects the net proceeds which Mr Tr?utnp in ecttjunction with his associates and outside professionals estpoet to be derived from rental activities pursuant to the lease described above, as well as the residual value of l'themeerty Case Document 20-3 Filed 05/01/19 Page 32 of 46 3. REAL AND (CONTINUED): 40 Wall Street I I On November 30,1995 entities, which are wholly owned by Donald J. Trump, became the lessee reader a long?term ground lease, which was subsequently amended in. 2007, for the property at 40 Wall Street to New York City millionsqwefeet Mr this property to its position as downtown Manhattan?s premier omee building. The estimated sin-rent value of $327,200, 000 is based upon a successful renegotiation of the ground lease and an evaluation mode by Mr; in conjunction with his associates and outside professionals of leases that have been signed or are currently the subject of negotiation, and a cop rate was applied to the resultant cash ?ow to be derived from the building? '3 operations.- Some of the major. tenants are CNA Insmanoe, - Instn'anoc, Walgreen? s/Duane Reade, Hilton Hotels and American Precious Metals Exchange In the ovaluotion of this preperty provision was made for gtottnd- rent payments when forecasting the anticipated cash flow The property is subject to a mortgage payable inthe amount of $160,000,000 as of erc 30, 2012 The interestrote agreement at a. rate ofS. 71%until the initial. maturity dots, November 10, 2017. During this time, if certain cash. ?ow provisions are met, the loan requires principal payments This loan may be extended for ?ve years beyond that initial maturity date The mortgage 15 collateralized by the lessee entity interest in the property . mortgage. This asset is re?ected in this ?nancial statement under the caption ?Escrow and Reserve Deposits and Prepaid Expenses." Tmutp Park Avenue Donald owns all but a Emotional interest of an entity that has converted the former Delmottico Hotel at 59?" Sheet and Park Avenue in New York City into a property that consists of 134 residential condominium units that range hum one to seven bedrooms. Duplex penthouse units are locot'ed on the and 32"" floors The property also contains 30, 00p square feet of space Castes a prominent architect long associated with luxury architectm'e, was - engaged to maintain the prewar aesthetic of the area by designing elegant homes Mr Kondylis has previously designed such. prominent properties as Trump International Hotel and to New York City, The Trim-1p world Tower at United Nations Plaza, and 610 Park Avenue that was a conversion of the former Mayfair Hotel Trump Park Avenue is synonymous with an upscale international lifestyle characterized by graciousness and old world luxury skillfully blended with modernity at a truly unrivaled location Case Document 20-3 Filed 05/01/19 Page 33 of 46 I REAL AND Grahame PROPERTIES (CONTINUED): Trump Park Avenue (Continued) The estimated eta-rent value of $312,400 000 is based upon an evaluation made by Mr Trump in cordunction with his associates and outside professionals of the arnotmt thathe'will earn as a result ofthe sale ofthe remaining eondminium units, as well as the residual value of the commercial space. Funds the amount of $950, 000 have been escrowed pursuant to the tones of the loans This asset' rs re?ected In this ?nancial statement under the caption ?Escrow and . Reserve Deposits and Prepaid Expenses." 'I?heunsold with respeotto aloan . payable. As of June 30. 2012 the mount of this debt was $22, 190, 000 The note, which re collateralized by the unsold condominimn units, bears interest at the rate of- 5 5% andmatures on Angustl, 2015 Club Facilities and Related Real Estate - Entities wholly owned by Mr. Trump have acquired eertaiu properties for the purpose of developing them into club facilih?es. Several of these clubs will also contain . residential units that they will sell The estimated current value of $1,570,300 000 is head on an assessment of the cash ?ow that is respected to be derived from club operations, cash. expenditures to improve certain facilities, the sale of residential units to beincunederrecentsales ofpropertiesina similar location That assessmott was prepared by Mr. Trump working tn conjunction with his associates and outside prof-assistants Mr, acquired this property in 1985 and transferred ownership to a?wholly owned . limited liability company in 1995. It isrnow' an exclusive private club which consists of 117 rooms. Formerly known as the Marjorie Mer?weather Post Estate, it feanrres a 20, 000 square feet Louis XIV style ballroom, world class dining, tennis comets, spa, cahanas-andguesteOttages Case Document 20-3 Filed 05/01/19 Page 34 of 46 3. REAL AND OPERATING PROPERTIES (CONTINUED): Mr. Trump, through a wholly owned entity, acquired Bnar Hall Country Club, Briareliff Matter, New York for 500 ,000?. Trump Na?OnaI 'Gelf Club opened for play On July 1, 2002. Construction of a 42, 000 square. foot clubhouse was completed during April 2005 Three hundred and ?fty memberships are being offered. Prior to June 1,2010, one condition of membership was the contribution Of a non-interest bearing deposit that does not require repayment until thirty years after receipt. and then - only upon the member?s resignation, The fact that Mr Trump will have the use of these ?nals for that period without cost and that the source of repayment will most likely be a replacement membership has led him to value this liability at zero. Through June 30-, 2012. these deposits amounted to $33, 800 ,000 In addition to the golf club, this property, when fully developed, will contain 47 luxury eondominium units, consisting of 16 townhouses that are fully developed and sold and 3 units to be developed as 'a mid-rise building Selling prices ranged ?om $1,500, 000 to 450, 000 with regard to the toumhouse units and will range from $500 to $8.35 per square foot with regard to units in the mid-rise building . Mr through wholly owned entities, acquired a long-term leasehold interest' at I lead that he developed into a ?rst-class golf course along with a 45, .000 square foot super-luxury clubhouse that is eunently' tn operation. Su??teient land is under lease and the entity has developed an additional nine-hole cause that is used in conjunction with the original eighteen holes, thus creating a twanty seven-shale World-class golf facility Based onthisexpanded facilrly,theetnbis melnberships Prior. tn June 1,2010, one condition oftnenlbership was the contribution efanonninmst-bearing wipe. and then only upon. the member?s resignation. 'Ihefael. that Mr. Trump will repayment will most likely be a replacement membership has led him to Value this liability at zero Through June 30, 2012 these deposits amounted to $41 ,960, 000- - Funds in the ametmt of $210, 000 have been acetowed with the enemy with regard to this property This asset is re?ected in this ?nancial statement under the caption ?Escrow and Reserve Drapesits and Prepaid Earpunseat"I Case Document 20-3 Filed 05/01/19 Page 35 of 46 3.. REAL AND OPERATING PROPERTIES (CONTINUED): Mr Twine, through a wholly owned entity, acquired a property that he has devebped into a worlduclass golf comes and club on the bluffs of the southern most point of. the Pales Verdes Peninsula in Califot-nia. The course, Originally designed by Pete Dye, has been totally redesigned by Mr. Trump and feamres panoramic views of the Paci?c Ocean and Catalina Island from every hole. The ootrrse offers a werId-class driving range andwater fbattnes enanuntber efholes. TheclubhOuseboasts ?ne dining intwe Zagat rated restaurants, a players lounge, and a. bar and banquet miltty which can host special events for up to 350 people. In addition to the cue, Tnunp National GolfClub IS presently zoned for 75 home sites with unparalleled ocean and golf course views At June ',30 2012, there were 52 home sites available for sale. Tr'um lubin- or Mr through a wholly owned entity, acquired tat-property consisting of 580 acres that has been developed. into a world-class 36' hole golf cornea and club in. Bedminster, New Jersey. The Club was'designed by Tom Fazio and opened in the-suntmer 'of 2004i The Club can currently aceemntodate 700 members There are 6 cottages available [or rental by members. In addition to the golf course, members have the use ofaa. Olympic sized swimming pool, tennis courts banquet facilities, casual dining facilities and a facility with ten single bedroom suites in addition to a state-of~theeart oont'erenee room and ?tness facility Construction of the men? 55 000;. 000' locker room which houses Flatwaretmderwaytoreaeteate the woman sleeker room and to begin construction on a new meeting/gdll: room Prior to June I 2",010 one condition of membership was the contributien. of- a nemieterest 'bearingdepositthatdoes notr?equn'erepaymeat until thirtyyears a?erreoeipt, audthen' -enlyuponthe member?s resignation. ThiefactthatMr Trump will havetheuseef these funds for that period without cost and that the some of repayment will most likely be a replacement membership has led- l'um to value this liability at zero. Through June 30, 2012 these deposits amounted to $48,280,000. to Case Document 20-3 Filed 05/01/19 Page 36 of 46 3. REAL AND OPERATING PROPERTIES (CONTINUED): Tm Natidnal lefCluh in Colts Nag New Jersey. - Mr. Tmnip, through wholly owned entities, acquired a property now known as Trump National Golf Club, Colts Neck. The club originally designed by Jerry Pete and re?ned . by Tom Fazio II combines a world class golf cornse, With an aquatic facility,temus complex and a 75 ,000 sqti'are foot clubhouse. The Club can accommodate 375 members.- Prior to June 1, 2010, one condition of membership was the contribution of a nonvinterest bearing deposit that does not require mpaynient and] certain tom's are met and then only upon the member?s resignation. The factthat Mt Trump will have 'theuse forthat most likelybe a replacementrnenibershiphas ledhim to valuethis liabilityat zero. Through June 30, 2012 these deposits amomited to $13,545 000 The real propetty owned by the club 18 subject to a mortgage loan at June 30, 2012, in the amount of $14,270, 000. The loan bears an interest of 6% and statues on September 9, 2028. . . atio' uh in Mr. Turnip, through wholly owned entities, acquired a property now known as National Golf Club, Washington, This oluhrjusta short distance-flour the nation's capital, is comprised of two l'S?hole. courses built by Tom Basic and Arthur Hills, respectively, and is located on over 600 acres with vast frontage on the beatni?il historic Potomac River Construction has been completed to expand the 50 000 square font clubhouse with enlarged dining space. Additionally, the underground cart facility .andthe ?tness, tennis and. been renovated andredesigned, - erecting amenities which will complementthe state ofthe art facilities. Prior to June .1, 2010, Ono condition of membership was the contribution of a non-interest bearing depositthatdooc notreqnire andthenonlyupon the Mmetnber?sreeignation. The faotthatMr Trumpwill hayetheuseofthese ?uids for thatperiod without cost and that the source of repayment will most; likely be a replacement membership has led him to value this liability at zero Through June 30, - 2012 thwe deposits amounted to $17, 040, 000 The real property owned by the club is subject to a purchase money promissory note that has a balance atl'tine 30, 2012 of$9,090, 000 and beers interestatthomte ofS. 5% The notewill menu: on Ma?y 1,2029. 11 Case Document 20-3 Filed 05/01/19 Page 37 of 46 . 3.. REAL AND consume PROPERTIES (commune): [at so" In in Mr. Tl'lIInp. through wholly owned entitles, acquired 500 hectares of land on. the north? east coast of Aberdeenshire. The development received outline planning permission in December 2008 for a world class, Martin Haws-es designed championship-links golf sour-so suitable for hosting major events, a second ?lture award winning I'S-hole course, a luxury clubhouse, a state of the art driving range and golf'aoademy, a tennis centre, on . equestrian- centre, a luxury ?ve-star 450 mom hotel with associated conference and banquot facilities, a full-services spa, a residential village consisting of. 950 holiday homes and 500 single family residences and 36 golf villas In June 2010, Mr. received detailed approval of the master plan and championship golf course design and noose-notion commenced shortly- therea?er. The ?rst golf course was contpleted shad of sohedule and opened for bosiness in July 2012. Gelf tee time reservations-are fully booked for the 2012 season and thousands of reservations have been placed for the upcoming 2013 season. The new has been the subject of media attoruion mdhasalreadybeen'rankediu several ?TopTen? lists DisclosionswithboththePGA European Tour and the Royal Ancient concerning hosting various major professional golf tournaments are ongoing; All onsite in?astruoture. required to operate a golf course (including utilities and roads) are complete The GolfHouse (clubhouse), which includes apro shop andrestammisalso openandfully Operational. Renovationsto - the Maoleod House and the Merrie Park. Lodge are scheduled to be completed by the end of 2012 which will include 19 luxury suite accommodations and an additional In 2009, entities wholly owned by smoked a 300' acre propertynow- known as National Golf Club, Hudson Valley in Hopewell Junetioo, New York The 18 hole championship course, is ?amed by brea?ttaking views of the Stormville . Momtains and is complemented by a traditional Adirondack-style olubbdose . Irnprovemeots to the amenities include new 5,000 square foot men and women? s- leeker rooms for the members at the club Also. construction of an Olympic sized strumming complex ts substantially complete. Prior to Jone 1, 2010, one condition of membership was the contribution of a non-interest bearing dephdt that does not'reqrdre repayment until certain terms are met. and then only upon the member?s resignation. ThefactthatMr Trump willhavetheusoofthese?mds forthatperlodwithout cost and that the some of repayment will most likely be a replacement membership has led him to value this liability or zero. Through June 30, 2012 these deposits amounted to $1,230 000.. 12. Case Document 20-3' Filed 05/01/19 Page 38 of 46 3.. REAL AND OPERATING PROPERTIES (CONTINUED): '_'Natl lfClu cl hia Itr"'2009, entities wholly owned Trump acquired a 365 acre property now known as Tnu?np National Golf Club -- Philadelphia; With magni?cent views of the Philadelphia skyline, Trump National Golf Club - Philadelphia, located in Pine Hill, New Jersey was designed by Tom Fania. The course has an 80,000 square foot Blue grass two-tiered practice area. The 43,000 square foot clubhome o??ers a sophisticated yet elegant feel for members and gumtsr Construction will begin this fall on the aquatic center. Plans are currently underway for a bistro. Prior to ere 2010., 'one condition of membership was the contribution of'a non-interest bearing deposit that. does not require repayment until certain torms are met, and than only upon the member?s- resigration. 'IThe?fact that Mn Tnanp will have the use of these funds for that period. withom cost and that the solace of repayment will most likely be a replacement membership has. led him to. value this liability at zero. Through June 30. 2012 these deposits amounted to $900,000June 11:, 20-12, entities wholly owned by Donald J. Tnanp acqaired the Doral Golf Resort-8:31:11 in Miami,Florida. Home to a- PGA event every year since itaopening. over 50 years ago. as newly earned; Trump National. Dora! is located on over mom, . of prime Miami real estate and includes ten ledges totaling. 693 guestrooms; the pristine golf courses including the war-Id renown Blue Munster; over 90.000 Sql-?. of meeting-space including the 24,000 rum-?. Legends Ballroom; a Sprawling 48,000 spa with 33 Want rooms; the Jim Molnar: Golf School; six signattue; restaormrta; multiple retail boutiques, and a. private memberc' club. The hotel and spa-portion of'the property have plans mr'a Spectacular mild-million ?motivation and full},r operational throughout the renovation, which is expected ta conclude in the Fall 20-13.. The property is subject'to a loan payable in the amount of $125,000,000 arr-of June 30,. 2012. The ?rst handle in the amount of $106, .000 is due .on June 10, 2017. The second tranche in the amount of $19,000,000 is due on June 10-, 2014, but may be attended until June 10, 2017, Imcler certain conditions. The interest rate on both tranchm may be determined by the bot-rewar- at either libo'r plus 2.25% or prince minus 50%, - 13 Case Document 20-3 Filed 05/01/19 Page 39 of 46 3. REAL AND OPERATING PROPERTIES (ammonia): Tnunp National go if Club in gag, North gm ina National -Golf Club Charlotte is one of the newest additions to ?the award- winning Golf portfolio. This beauti?rl preperty located 30 minutes from Charlotte, floats Lake Nonnan in the picturesque of Mooresville. The Greg. Norman designed golf oomae hoamore than Mo??rirds of the holes directly along - or over the water. which to golfers of all levels. The unique country?village designed property coupled with a state of the art Clubhouse. world- class tennis facilities, large swimming complain. times: facility, game rooms and other amenities make National Golf- Club Charlotte the perfect private club for the entire family to enjoy. The World Tower atvnited Nations Plaza Entities wholly owned by Donald J. Trump developed and constructed a super luxury residential condominimn. at 845 United Nations Plaza in New York City. The Sill-story thwer has a gross area of 877,000 square feet and is ?860 feet in height. The building is. situated at the ?northwest corner of" the United Nations Plaza with exposures to the United Nations Park, the East River, Motown. and Downtown Manhattan. There. are .370 Super lumry condominium units with ceiling heights varying. from 10 to 16 feet at the upperrnost ?oors. As of June 30, 2012, 369 units have been sold. In addition. to the condeminium units, a bar and a restaurant are on the ground ?oor level. There is a valet parking facility for 75 cars below grade There is. also a roof top antenna structure. Mr. Trump will retain and rent out these commercial spaces. - The estimated value of $18,200,000 reflects the net proceeds Which Mr Trump in. conjtmotion With his associates and outside professionals expect that he will derive from the sale-ofmc ?nal rat-tit based on mtrrent pricing, as well as there?dual value of thecommercial spacewhichwill beretained by Mr. roe Central'Park?Sooth Entities wholly owned by Mr. Trump have developed [00 Central Park South in New York City. The property. which is known as Trump Pare East Condominium. consists of at; Slieunit homey apmunent house located at the corner of Cancel Park- South and The Avenue ot?the Americas. The property also contains a commercial condominium itnit that is currently leasedsto' three retail tenants. Through June 30, 2012,- trnita with a Value 03510605000 have been ?sold, . . The current value of $32,700,000 re?ects the net . proceeds which Mr. Trump in - with his associates and outside professionals expect that he will derive from. residential unit sales during periods subsequentto Jone 3.0, 2012 based on current pricing. 14. Case Document 20-3 Filed 05/01/19 Page 40 of 46 3. REAL AND OPERATING PROPERTIES (communm: Trump Plaza - Comm croialand Retained Residential Portions Entities wholly owned by- Donald J. Twp-developed Tm'mp Plaza in 1983 which was sold pursuant to a cooperative offering plan.- ?The property is located on mm Avemte between East olstand'East 62nd Streets: in New York City. The assets re?ected in this statement represent certain residual interests that entities wholly owned by Mr. Trump still own These consist of two residential units, 'a long-term leasehold interest in two .tesidential townhouses, each consisting of four residential. units, a parking garage and commercial space. The estimated murent value of $30,100,000 is based open an attainment made by Mr. Tirump in conjunction with his associates and outside professiooal's expected to be derived from rental activities-pursuant to the leases, as well as the residual value of the properties. . The interest that Mr. Trump?s entities have in the two residct?al townhouses, the parking garage and the commercial space has been pledged as collateral with reopect to a loan payable. As of June 30, 2012', the amount of this debt was $8,300,000. The note matures on August ll, 2014 and beers interest at the rate of Funds in the amount of $1 1 0,000 have been mowed pursumt to the terms of this loan. This asset is re?ected in this financial statementunder the caption ?Escrow and Reserve Depositsand Prepaid Expenses.? - Trump 'Ptilac?e, Trump Pace and Trump Pare East Condominiums - Commercial Portions Entities. wholly owned" "by Mr have developed the aforementioned properties. and the only areas that remained unsold as. of here 30, 2012 were: 31 storage units at Palace Condominium - 38 storage units and-a parking gen-age at Trump Pare .Condomin'itnn - the commercial condominiumelements at Trump Pare East Condominium The estimated current value of $13,000,000 was based on an assessment made by Mr. in conjunction with his associates of the value of the various properties described abo?Vc. .15 Case Document 20-3 Filed 05/01/19 Page 41 of 46 3. REAL AND OPERATING PROPERTIES (costumes): Trump International Hotel and Tower - New York. New York . Donald Trump has redeveloped the former Paramomt Building at One Control Pad: - West in New York City from an of?ce tower into a honey residential and hots] condominium deselopment Although all units in the property have been-sold, entities wholly owned by Mr. Trump will continue to receive certain fees relating to ongoing property operations The estimated current Value of $27,600,000 was based upon on an'assessment made by . Mr. Trump in conjunction. with his assoctates and outside professionals of the remaining compensation which he and entities which he costs will derive as a resultof commercial condominium elements of the. propetty. These are the garage the restaurant and an easement with respect to the rooftop area, all of which are now owned by entities wholly owned by Mr. Trump. - 'l The interest that Mr Trump 5 entity has to. this property has been pledged as collateral with respect to a loan payable. As of June 30, 2012 the amonnt ofthis debt was 571300.000 201.6 Funds inthe amount of $210 000 have heen mowed pursuant to the toms of this loan. This asset as reflected at this ?nancial statementunderthe caption ?Escrow and Renew: Deposits and Prepaid Expenses?. Mansion at Sarah springs An entity wholly owned by Mr. Trump acquired a property known as The Mansion at Seven Springs in Redford, New York which consists of over 200 acres of land, a mansion and other buildings This property is zoned for 9 luxurious homes. Ithas hm valued at $291,000,000 based on massessmeot madeby Mr Tiump tn conjunction with his associates of the projected net cash ?ow which he derive as those units are oOnstructed-and sold, andthe estimated fairvalueofthc existingmansionand other buildings. - This property is the subject of a mortgage payable that had a balsam doe at June '30, 2012 of?, 520 000 with an interest rate of 5.25%. This mortgage will manna on July '1 2014 I Funds to the amount of $80, 000 have been escrowed pursuant to the terms of this loan This asset is re?ected in this ?nancial statement under the caption ?Escrow and Reserve Deposits and Prepaid Expenses.? 16 4? Case Document 20-3 Filed 05/01/19 Page 42 of 46 PARTNERSHIPS AND JOINT immunisa- Estimates of the clarinet value of Mr Tnimp's interests in partnerships and joint ventures re?ect his interest therein and are determined on various bases, as described below 1290 Avenue oftlie Americas in New York, New York and 555 California Street in San Francisco, California - In May 2007 Donald Trump and Vomado Realty Trust became partners in two properties; 1290 Avenue of the Amaica?s located in New York City and 555 California Street (formally known as Bank of America Center) located in San Fransisco, .. I California. 1290 Avenue of the Americas consists of an of?ce tower. and retail space containing . approximately 2, .000 000 leasable square feet housing such tenants as Microsoft,- AKA . Equitable, Cushman a: Wake?eld, and Columbia University 555 California Street consists of one retail and two of?ce buildings comprising I: approximately 1 H700 000 leasable square feet along with a subterranean garage Bank - ofAmerica, GoIdnian Sachs, UBS Financial Sertdees, Citigroup, am! Wells Fargo are a 'Wofthe tenants Mr. Tniriip owns 30% of these properties The estimated current value, not of debt, of $823,300, 000 is based on an evaluation made by Mr Temp in conjunction with his associates and outside professiomls. This - valuation was arrived at by applying a rate cap to the net operating income and. temp into consideration any debt and retinn of capital. Miss Universe Pageant! In 1996, DonaldJ. Trump and CBS aoqmreclaliofthe assets that togetherarethe ?Miss Universe Pagean In 2002 NBC became a 50% joint venture participant in those - activities, replacing- CBS. The company produces the Miss Universe Pageant, the Miss USA Pageant, as well as the Miss Teen USA. Pageant. The pageants have been . rede?ned to present the combination of style and intelligence that de?ne the woman of thenewmillenniinn. The alliance with NBC has enabled: the Miss Universe Organization to bring together women from around the world in the Spirit of ?rst-class competition The residtant - prime-time network television specials are broadcast live to a worldwide audience As 7a result of this notoriety, site fees for Miss Universe events far exceed those paid to similar organizations The estimated current value of $15,000,000 was based on an assessment made by Mr. Trump in conjunction with his associates and outside prefessionals Case Document 20-3 Filed 05/01/19 Page 43 of 46 a REAL ESTATE LICENSING nmopm: As stated in Note this ?nancial statement does not re?ect. the value of Donald J. Trump's worldwide reputation except to the extent it has become associated with properties either operative or under development. His recognized persona has evolved to the extent that it has: become an intact-nationally recognized name. The resultant prestige signi?cantly enhances the value of the properties with which he is associated. The goodwill attached to the name has proven ?nanciallvalue in that potential users of real property around the world have demonstrated willingness to pay a signi?cant premium or use of'a Trump related residence. An 3 result, other developers of quality properties have approached Mr. with proposals for joint ventures involving ways in which his organization?s development skill and . . . Mr. has flamed numerous associations with others for thepuzpose of developing properties and is currently negotiating-Mt}: others. The estimated current value of $85,000,000 Was based on an comment made by Mr. Trump in conjunction with his associates and outside. professionals of the cash flow that is expected to be deritted by him ?-om these ecsoeiations. as their pctentia] is realized. In preparing that assessment, Mr. and his? management considered onlyeituntlons which have evolved to the point where signed arrangements. with the other parties exist and fees and other . compensation which. he will earn "are reasonably quanti?able. Tenns oi the agreements very and might involve de?ned compensation-per unit or contingent fees based on parameters suchas selling-prices: or gross pro?t levels, up?ont guaranteed fees, ?a percentage of gross revenues and various management agreements. (ex. hotel, condo, food. and beverage, etc). ?the process utilized-by management to select the people and properties. with which the name will be associated is extremely selective; each must enhance Mr. 'l?rump?s?reputation. - - Mr. Trump has pledged $19,760,000 of?the fees derived on certain of these agreements to his fennel? [tamer in The Trump World Towerat United'Netions Plan. This debt is re?ected in this ?nancial statemont as a liability under the caption ?Mortgages and loans payable secured by other assets?. 6. amnessms: . Trump Tower Mr. Tmmp'owns a triplex apartment on the-top three ?oors of Turnip ToWer (see Note '18_ Case Document 20-3 Filed 05/01/19 Page 44 of 46 6. omen ASSETS (CONTINUED): Palm Beach; Florida Mi- owns two. homes that are located in Palm Beach, Florida, adjacent to Marve- Lag'o Club. . I Mr. Trump?s interests in these properties in Florida have been pledged?as collateral with respect to two loans. One loan bad a balance at June '30, 2012 of $270,000 and bears an interest rate of 1.25% per annum above the-rate known- as the six-month LOndon InterbankO??er-ing Rate as it is ?xed at certain points in' time-and at June 30, 201:2 Was 2.4375%. This loan will mature _'on January 1, 2019. ??le other loan had a balance at here 30, 2012 of $620,000'and bears an interest rate of 150% per annum above the rate known as the six?month London Interbank Offering Rate as it is ?xed at certain'points in time and at June 3-0, 2012 was 23.12594, This loan will mom on. February 2019. Beverly Hills, California Mr. through wholly owned-entities, owns a home located in Beverly Hills, Califomia. This property is'located at the intersection of Canon, Rodeo; and Sunset in an area of Beverly Hills known as the The home indirectly across the street from the world famous Beverly Hills. Hotel on what many cell the most desirable lot in . the city due to its matched'location. . Corporate Aircraft: Entities owned by Donald mm}: own a Boeing 757 jet and?t?m Sikorsky helicopters. Trump at new Point Trump Golf Links at Ferry Point will. be an. .18. hole public golf comse located in the Bronx, NY, with beautiful views of the Manhattan skyline. The Jack Nicklaus Signature Design is Currently slated to open in 2014, thr- includes. plans for a $10 million. clubhouse,? a state of the art driving range and practice facility with lights for nighttime use. Mr? is workmg very closely with Mayor Bloomberg?s of?ce for this-to become the greatest public golf "course "and facility in New York City; 19 6.. 1.. 9. Case Document 20-3 Filed 05/01/19 Page 45 of 46 OTHER ASSETS (CONTINUED): Other Mr. and entities that he owns, control several other active businesses as well as other assets. The assets related to these interests include: a 2,000 acre vineyard in Charlottesville, Virginia along with a. carriage museum, of?ce building and several other buildings licenses to operate and manage the Wollman Rink which was reconstructed by. Mr. 1986 and the landmark Carousel inCentral Park an international talentlmodcl agency a management company that supervises the operation of condominitnn properties,as well as Mr. own properties -receivables representing amounts earned to date and connect rights with regard to ?xture performances on television . loans to family members Funds inthe amount ofS640000 have been escrotved pmsuantto the terms ofhtr Tr'urnp? ?s contractual commitments at the Wollrnan Rink, Carousel in Central Park and Trump Golf Links at Ferry Point. This asset is re?ected in this ?nancial statement under the caption ?Escrow and Reserve Deposits and Prepaid Expertise" I ?l ACCOUNTS PAYABLE AND ACCRUEB EXPENSES: Accounts payable and accrued expenses represents incidental amounts owed by Donald J. personally, and amounts owed by wholly-owned operating entities COMMITMENTS AND CONTINGENCIES: Mr. also. has personal responsibilities with respect to various employment contracts, contracts, loan agreements, purchase oommihnents and other commitments. These include recomge obligations concerning partnership indebtedness, guarantees relating to the completion and, environmental acceptance-of. certain. projects Mr. Trump and his af?liates are parties to various lawsuits and legal actions. At the time. the outcome of those proceedings cannot be estimated. Mt. Trump believes that these legal actions will not have a material sheet on his ?nancial position. I Various taxing authorities are currently auditing Mr. Tnnup and certain of his a?iliates. Attire present time, the outcome of these examinations cannot be determined. Mr. periodically maintains ?tnds on deposit in banking htstitutions' or excess of FDIC insured amounts. He is at risk for an},r amounts exceeding the FDIC limitation. SUBSEQUENT EVENTS: Mr has evaluated subsequent events through October 12 2012, the date the ?nancial statement was available for 20 . MM-.. . .- Case 1:19ecv-01136-APM Document 20-3 Filed 05/01/19 Donald J. Trumn Summarv of Net Worth As 31.. 291.; Cosl1& Marketable Securities as re?ected herein 13 after - the acquisition of numerous assets 0 multiple aircraft land, golf courses, etc). the paying off of signi?cant mortgages for cash and before the colleotion of signi?cant receivables. Eserow and reserve deposits 011d prepaid expenses Reel 0110111111111 Properties owned 100% by Donald Trump I throuah various entities controlled by . Commercial Properties (New York City) Residential Properties (New York City) .- Ciub facilities &_related real estate - Property under Developmeot Real Properties oWned less than 100% by Donald! Trump -1290 Avenue of the Americas; New York City Bank of America Building San Francisco, California Total Value Net of Debt Real-Estate Licensing Deals M155 Universe, Miss USA'and Miss Teen USA Pageants 0111011153015 '(net of debt) Brand__Value - Total Assets . LIABIL mes payable . Loansand mortgages payable-000.001 and Operating Properties owned 100% by'Donald J. Trump Commercial 'PrOperties (New York City) Residential Properties (New York City) 0100 facilities Property under deveIOpr?ent Total Liabilities NET WORTH 346,100,000 10,730,000 1,331,350,000 351,550,000 - 1,570,300,000 291,000,000 323,300,000 - 74,140,000 15,000,000 302,610,000 . 4,000,000,000 - 4,400,000 Page 46 of 46 ?9,106,130,000 321,690,000 - 22,190,000 148,360,000 7020 000 - 504,160,000 8,601,970,000