We found ‘significant evidence’ of Trump organization fraud

Reuters

Reuters

New York Attorney General Letitia James asked a court late Thursday night to compel Donald Trump, Donald Trump Jr. and Ivanka Trump to testify under oath when her office’s investigation into Trump’s company accounting practices had provided “significant evidence” of fraud.

James said in a tweet: “We have uncovered substantial evidence indicating that Trump Organization used fraudulent and misleading valuations of assets on multiple properties to obtain economic benefits, including loans, insurance coverage and tax deductions for years. “

“Donald J. Trump, Ivanka Trump and Donald Trump Jr. … claim that they may have ignored legally issued summonses for testimony because of what they claim is ‘an unprecedented and unconstitutional maneuver’ by the Attorney General’s Office (OAG)” it is stated in the proposal. “But summonses to current and former top officials – like the ones in question here – are routine in complex economic investigations and are abundantly justified here.”

The court documents note that AG’s office for over a year – and since Eric Trump testified in August 2020 – has found substantial evidence indicating that the Trump organization deliberately used incorrect property valuations “to obtain a number of financial benefits, including loans, insurance coverage, and tax deductions. ”

Eric Trump invoked the Fifth Amendment “repeatedly” to avoid witnessing the valuation of more Trump Organization properties, according to the memo.

Prosecutors note that although their office has not made a final decision on whether this evidence justifies any judicial action, their reasoning is “to conduct the investigation without blame.”

The case shows that the investigation into the Trump organization began in March 2019, when Trump’s former lawyer Michael Cohen testified before Congress. In his testimony, Cohen said Trump’s annual financial states inflated the values ​​of the former president’s assets to obtain favorable loans and insurance coverage – while also deflating the value of some of his other assets to lower property taxes.

“The OAG has methodically investigated these allegations; in fact, the Trump organization has already provided substantial documents and testimony in response to subpoenas issued by the OAG in connection with its civil investigation, without ever challenging the OAG’s good faith,” the proposal said.

For more than two years, the Trump organization was aware of the Attorney General’s investigation into these alleged offenses and insisted that its leaders cooperate, according to the archive. In fact, the proposal states, the organization pulled the heels and only recently began handing over many of the documents ordered through the December 2019 lawsuit.

The memo outlines numerous plans to allegedly inflate the value of Trump’s assets, including a memorable one in which Donald Trump valued his own apartment in the Trump Tower at $ 327 million, “based on the fact that the apartment has 30,000 square feet of space multiplied by a certain price per square foot. “

But in 2017, the apartment shrank for the first time to its actual size of just over 10.00 square meters, and its valuation shrank correspondingly to $ 116.8 million.

Asked about this, Trump Organization CFO Allen Weisselberg admitted that his amount to a profit of $ 200 million, “give or take.”

Read more on The Daily Beast.

Get Daily Beasts biggest scoops and scandals delivered straight to your inbox. Sign up now.

Stay informed and have unlimited access to Daily Beast’s unrivaled reporting. Sign up now.

Give a Comment