Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Thursday, September 24, 2020

Probate Litigation And The President: Mary Trump Sues President Donald Trump and Estate of Late Brother Over Alleged Fraud

MaryDonald Trump's niece, Mary L. Trump has filed a lawsuit against the President, his sister Maryanne Trump Barry, and the executor of the estate of their late brother Robert Trump. Mary has alleged that: “For Donald J. Trump, his sister Maryanne, and their late brother Robert, fraud was not just the family business—it was a way of life.”

Mary has also alleged that when her father Fred Trump Jr. died, she inherited valuable minority interests in the family business and that Donald, Maryanne, and Robert committed to watch over those interests as fiduciaries. 

Mary has alleged that “they designed and carried out a complex scheme to siphon funds away from her interests, conceal their grift, and deceive her about the true value of what she had inherited.”

Mary specifically has alleged three fraudulent schemes that were committed against her:

  • The Grift:  “Defendants fraudulently siphoned value from Mary’s interests to entities Defendants owned and controlled, while disguising those transfers as legitimate business transactions.
  • The Devaluing: Defendants fraudulently depressed the value of Mary’s interests, and the net income they generated, in part through fraudulent appraisals and financial statements.
  • The Squeeze-Out: Following Fred Sr.’s death, Defendants forced Mary to the negotiating table by threatening to bankrupt Mary’s interests and by canceling the healthcare policy that was keeping Fred III’s infant son alive, and once at the table Defendants presented Mary with a stack of fraudulent valuations and financial statements, and a written agreement that itself memorialized their fraud, and obtained her signature.

Mary also asserted eight causes of action in her complaint:

1.  Fraudulent misrepresentation;

2.   Fraudulent concealment;

3.   Fraudulent inducement;

4.   Negligent misrepresentation;

5.   Civil conspiracy to commit fraudulent misrepresentation and concealment;

6.   Civil conspiracy to commit fraudulent inducement;

7.   Breach of fiduciary duty; and

8.   Aiding and abetting a breach of fiduciary duty.

See Probate Litigation And The President: Mary Trump Sues President Donald Trump and Estate of Late Brother Over Alleged Fraud, Probate Stars, September 24, 2020. 

https://lawprofessors.typepad.com/trusts_estates_prof/2020/09/probate-litigation-and-the-president-mary-trump-sues-president-donald-trump-and-estate-of-late-broth.html

Current Events, Estate Administration, Estate Planning - Generally | Permalink

Comments

Post a comment