More trouble for Trump Org over accusations of insurance fraud: report

According to a report from Rolling Stone, a former employee of one of Donald Trump's golf courses claims the Trump Organization has been bilking their insurance company with inflated damage claims.

Based on claims by two insiders -- both of whom wished to remain anonymous -- the accusations stem from a flooding incident at the former president's Briarcliff golf course in 2011 where the Trump Org received $1.3 million to repair the damage that they spent a minimal amount to fix.

According to Rolling Stone's Hettena, "When a deluge flooded the Trump Organization's Westchester County golf course and a nearby town in 2011, the organization used a wildly inflated claim to score an insurance payout of nearly $1.3 million, pulling in far more than what it spent to repair the course," adding, "The previously unreported insurance claim at Trump National Golf Club in the Village of Briarcliff Manor far outstripped the cost to repair the damages, which were about $130,000 to $150,000, one of the sources says."

The former golf course employee stated, "The work was never completed. They basically band-aided it."

According to Hettena, the Trump Org had actually filed a larger claim but the insurer refused payment when they couldn't provide receipts.

The report goes on, "Questions around the claim could spell more legal trouble for a Trump Organization already eyeball-deep in lawsuits and investigations. The Westchester County District Attorney's office has opened a criminal investigation into financial dealings at Trump's Briarcliff club. The New York Times, which first reported the investigation, said it appears focused at least in part on whether the Trump Organization misled local officials about the value of the property to reduce its taxes," adding, "The organization's alleged insurance shenanigans at Briarcliff may help explain how the Trump Organization, year over year, took in more from insurance than it paid out in premiums. One of the sources said the company would routinely gather overinflated repair estimates, often from members of Trump's clubs, that could be used to justify insurance claims. In a conversation with top company officials, the source learned that the Trump Organization calculated that it got more than $2 back from insurers for every dollar it paid in — a return of more than 100 percent. Broadly, the source says, the company viewed insurance not as an expense, but rather as an ongoing source of profit."

Hettena goes on to explain the new accusations of fraud grew out of a lawsuit filed by the Village of Briarcliff Manor against the Trump Org, putting blame on them for the flood due to modifications at the club -- with the water damage also affecting neighbors.

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