Judge rejects Trump suit to halt N.Y. probe
NEW YORK — A federal judge Friday dismissed a lawsuit the former president Donald Trump filed that sought to halt the New York attorney general’s civil investigation into his business practices.
The ruling, in federal court in Albany, was Trump’s second defeat related to the investigation in two days. On Thursday, an appellate court ordered Trump and two of his children to sit for questioning under oath from the office of the state attorney general, Letitia James.
Together, the rulings clear the way for James to complete her investigation in the coming weeks or months. While James, a Democrat seeking re-election, does not have the authority to seek criminal charges against Trump or his family’s real estate business, she can file a lawsuit if she concludes that they committed fraud.
Last month, one of her lawyers indicated that a suit could be coming soon, saying the office was preparing an “enforcement action” in the near future.
It is unclear if Trump plans to appeal either of the rulings. His lawyers did not immediately respond to requests for comment.
“The courts have made clear that Donald J. Trump’s baseless legal challenges cannot stop our lawful investigation into his and the Trump Organization’s financial dealings,” James said in a statement. “No one in this country can pick and choose how the law applies to them, and Donald Trump is no exception. As we have said all along, we will continue this investigation undeterred.”
Lawyers for Trump filed the federal lawsuit in December, arguing that James’ public criticism of Trump, and the subpoenas she had issued him and his company, violated several of his constitutional rights, including those to free speech and due process.
In the ruling Friday, federal Judge Brenda Sannes rejected financial benefits.
In a court filing this year, James revealed that Trump’s longtime accounting firm had cut ties with him and essentially retracted nearly a decade’s worth of the financial statements.
She also argued, in a separate filing, that the Trump Organization had engaged in “fraudulent or misleading” practices. But her lawyers said they needed to collect additional records and testimony, from Trump in particular, before they could decide whether to file a lawsuit.
Last month, a state judge in Manhattan, Arthur Engoron, held Trump in contempt of court for failing to fully comply with James’ subpoena seeking his personal records. The judge recently released the contempt order, after Trump paid a $110,000 fine and filed additional documents.
Engoron also ordered Trump — as well as two of his children, Donald Trump Jr. and Ivanka Trump — to be interviewed under oath by James’ office. In its ruling Thursday, a New York state appeals court upheld that order.