N.Y. STATE ACCUSES TRUMP BUSINESS OF ENGAGING IN FRAUD
Attorney general’s filing in response to effort to block probe
The New York state attorney general, Letitia James, accused Donald Trump’s family business late Tuesday of repeatedly misrepresenting the value of its assets to bolster its bottom line, saying in court papers that the company had engaged in “fraudulent or misleading” practices.
The filing came in response to Trump’s recent effort to block James from questioning him and two of his adult children under oath as part of a civil investigation of his business, the Trump Organization. James’ inquiry into Trump and the company is ongoing, and it is unclear whether her lawyers will ultimately file a lawsuit against them.
Still, the filing marked the first time that the attorney general’s office leveled such specific accusations against the former president’s company. Her broadside ratchets up the pressure on Trump as he seeks to shut down her investigation, which he has called a partisan witch hunt. James is a Democrat.
The filing outlined what James’ office termed misleading statements about the value of six Trump properties, as well as the “Trump brand.” The properties included golf clubs in Westchester County, N.Y., and Scotland, as well as flagship buildings such as Trump Tower and 40 Wall Street in Manhattan.
James’ filing argued that the company misstated the value of the properties to lenders, insurers and the Internal Revenue Service. Many of the statements, the filing argued, were “generally inflated as part of a pattern to suggest that Trump’s net worth was higher than it otherwise would have appeared.”
Lawyers for Trump and his company could not immediately be reached for comment.
Because James’ investigation is civil, she can sue Trump and his company but cannot file criminal charges. Her inquiry is running parallel to a criminal investigation led by the Manhattan district attorney, Alvin Bragg, which is examining some of the same conduct. Lawyers from James’ office are working on that separate investigation, which is continuing. Bragg, also a Democrat, inherited the inquiry from his predecessor after taking office Jan. 1.
In early December, James issued a subpoena for Trump as well as for Donald Trump Jr. and Ivanka Trump, seeking to question them as part of her civil inquiry. James already questioned another of Trump’s sons, Eric Trump, in October 2020.
After receiving the subpoenas, lawyers for Trump filed a federal lawsuit seeking to halt James’ civil investigation and to bar her office from participating in the district attorney’s criminal investigation.
This month, Trump’s lawyers filed court papers in New York state seeking to block James’ subpoenas, prompting her filing Tuesday.
James has investigated Trump’s business practices since 2019. In previous filings, she described the properties she was scrutinizing and said that her investigators were looking into whether Trump had inflated the value of various properties across the country in order to secure loans and obtain economic and tax benefits.
In Tuesday’s filing, she went further, giving specific examples in which she said the former president’s business had misrepresented the worth of its properties and showing how those misrepresentations had benefited the company, allowing it to receive favorable loans, insurance coverage and tax benefits.