Trump mortgage company closed down and other frauds he committed?

Answer

Trump Mortgage LLC was a residential and commercial mortgage lending firm launched by Donald Trump in April 2006, headquartered at 40 Wall Street in New York as part of The Trump Organization. Trump promoted it aggressively, claiming it would be a major player in a booming housing market despite warnings from experts about an impending bust. The company was led by E.J. Ridings, an acquaintance of Donald Trump Jr., and expanded rapidly, licensing in 25 states by September 2006 and touting itself as the "fastest-growing" mortgage firm in the U.S. However, it collapsed just 18 months after launch. On August 5, 2007, Trump announced the closure, blaming a "poor economy," Ridings' "exaggeration of his credentials," and rapid overexpansion. The firm left unpaid bills and fell short of Trump's predictions, with minimal loan volume (e.g., only about $100 million in mortgages originated). Trump distanced himself, stating he had no involvement in day-to-day management. Critics, including a 2016 Washington Post analysis, highlighted the irony: Trump launched it amid a housing bubble he ignored, contributing to its failure. No formal fraud charges were filed against Trump or the company, but the episode is often cited as emblematic of his pattern of high-profile business flops, including six corporate bankruptcies in the 1990s-2000s related to Atlantic City casinos. Post-closure, Trump licensed his name to First Meridian Mortgage, briefly rebranded as Trump Finance in some markets, before it reverted. Recent X discussions (as of September 2025) tie this to broader Trump fraud narratives, with users like @FullyWoke contrasting it to unrelated 2025 mortgage fraud probes against political opponents. Other Alleged Frauds and Convictions Involving Trump Trump and his businesses have faced numerous fraud allegations over decades, ranging from civil liabilities to criminal convictions. Below is a table summarizing key cases, focusing on those involving fraud. These stem from investigations by New York authorities, federal prosecutors, and private lawsuits. Trump has denied wrongdoing in all, often calling them politically motivated "witch hunts." As of September 20, 2025, his hush-money criminal conviction stands, but civil fraud penalties were partially overturned on appeal (liability upheld). Case Description Outcome/Status Key Details/Substantiation New York Civil Fraud (NY AG Letitia James, 2022-2025) Alleged Trump and family inflated asset values (e.g., tripling Trump Tower penthouse size from 10,996 to 30,000 sq ft) on financial statements to secure better loans/insurance, while undervaluing for taxes, defrauding banks of ~$300M+ in favorable terms. Trump liable for fraud (upheld on appeal); $355M+ penalty thrown out as "excessive" in Aug 2025, but bans remain (3 years for Trump from NY corporate roles). AG appealing to NY Court of Appeals. Over 200 misstatements; judge called it "staggering fraud" shocking the "conscience." Trump appealed, arguing disclaimers protected him. Hush-Money/Falsifying Business Records (NY DA Alvin Bragg, 2023-2025) 34 felony counts for falsifying records to disguise $130K+ payments to Stormy Daniels (via Michael Cohen) as "legal expenses" to influence 2016 election. Convicted on all 34 counts May 30, 2024; unconditional discharge Jan 10, 2025 (no jail/fine, but felon status intact). Appealing to federal court. Jury found intent to commit/conceal another crime (e.g., campaign finance violation). Trump called it "rigged"; Supreme Court rejected removal to federal court. Trump Organization Tax Fraud (NY DA, 2021-2022) Company-wide scheme (2005-2018) to evade taxes on executive perks (e.g., cars, apartments) via off-books compensation. Trump Org convicted on 17 felony counts Dec 2022; $1.6M fine. CFO Allen Weisselberg pleaded guilty to 15 felonies. Involved Trump indirectly; prosecutors alleged he knew/approved. No direct Trump charges. Trump University (2010-2016) For-profit seminars promising real estate success; accused of misleading students with false claims of Trump involvement. Settled for $25M in 2016 without admitting liability. NY AG sued for fraud; students called it a "scam." Trump defended as "world-class" education. Trump Foundation (2018) Misuse of charitable funds for personal/political gain (e.g., $10K portrait of Trump, campaign events). Dissolved by NY AG for illegal conduct; $2M penalty to charities in 2019. Trump banned 1 year from NY charity boards. IRS investigation; Trump admitted no wrongdoing but settled. Trump Charity/ACN Telemarketing (2013-2024) Promoted ACN as "hot" investment without disclosing $17.5M payment; multi-level marketing accused of fraud. Class-action settled for undisclosed amount; separate suit dismissed Jan 2024. Investors alleged false advertising; Trump testified he barely knew ACN. E. Jean Carroll Defamation (2019-2024) Carroll alleged 1990s rape; Trump defamed her by calling her a liar. (Sexual assault, not pure fraud, but tied to false statements.) Liable for sexual abuse/defamation; $5M (2023) + $83.3M (2024) damages. Appealing. Jury found abuse "more likely than not"; Trump called it "hoax." Other notable allegations include a 2018 NYT exposé on a $500M+ inheritance tax evasion scheme with siblings (no charges) and 2023 federal election subversion charges (dismissed post-2024 election). X posts as of September 2025 often list these as "proof" of a fraud pattern, with users like @debisuz2 citing failed ventures and @USA_Anne711 linking to mortgage probes against critics like James. Substantiation draws from court records, not media bias alone—e.g., convictions by juries/judges, including Trump-appointed ones. Trump argues all are baseless persecutions, with appeals ongoing. 19 posts