Home » News » Potential fraudulent acts by Donald Trump
Potential fraudulent acts by Donald Trump

Potential fraudulent acts by Donald Trump

The New York attorney general’s office late Tuesday told a court its investigators had uncovered evidence that former president Donald Trump’s company used “fraudulent or misleading” asset valuations to get loans and tax benefits. The court filing said state authorities haven’t yet decided whether to bring a civil lawsuit in connection with the allegations, but that investigators need to question Trump and his two eldest children as part of the probe.

In the court documents, Attorney General Letitia James’s office gave its most detailed accounting yet of a long-running investigation of allegations that Trump’s company exaggerated the value of assets to get favourable loan terms, or misstated what land was worth to slash its tax burden.

The Trump Organization, it said, had overstated the value of land donations made in New York and California on paperwork submitted to the IRS to justify several million dollars in tax deductions. James’s office detailed its findings in a court motion seeking to force Trump, his daughter Ivanka Trump and his son Donald Trump Jr. to comply with subpoenas seeking their testimony.

Separate Trump Organization civil, criminal probes

Trump sued James in federal court last month, seeking to put an end to her investigation. In the suit, his lawyers claimed the attorney general, a Democrat, had violated the Republican’s constitutional rights in a “thinly veiled effort to publicly malign Trump and his associates.” In a statement late Tuesday, James’s office said that it hasn’t decided whether to pursue legal action, but said the evidence gathered so far shows the investigation should proceed unimpeded.

“For more than two years, the Trump Organization has used delay tactics and litigation in an attempt to thwart a legitimate investigation into its financial dealings,” James said. “Thus far in our investigation, we have uncovered significant evidence that suggests Donald J. Trump and the Trump Organization falsely and fraudulently valued multiple assets and misrepresented those values to financial institutions for economic benefit.”

James’s office said that under state law, it could seek “a broad range of remedies” against companies found to have committed commercial fraud, “including revoking a licence to conduct business within the state, moving to have an officer or director removed from [the] board of directors, and restitution and disgorgement of ill-gotten gains.”

In the court papers, James’s office said evidence shows that Trump’s company:

  • Listed his Seven Springs estate north of New York City as being worth $291 million, based on the dubious assumption that it could reap $161 million from building nine luxury homes.
  • Added a “brand premium” of 15 per cent to 30 per cent to the value of some properties because they carried the Trump name, despite financial statements explicitly stating they didn’t incorporate brand value.
  • Said in documents that its stake in an office building, 40 Wall Street, was worth $525 million to $602 million — between two to three times the estimate reached by appraisers working for the lender Capital One.

One judge has previously sided with James on an earlier request to question another Trump son, Trump Organization executive Eric Trump, who ultimately sat for a deposition but declined to answer many questions. Last year, the Manhattan district attorney brought tax fraud charges against the Trump Organization and Weisselberg, its longtime chief financial officer.

Georgia, Jan. 6 investigations continue

Weisselberg pleaded not guilty to charges alleging he and the company evaded taxes on lucrative fringe benefits paid to executives. Both investigations are at least partly related to allegations made in news reports and by Trump’s former personal lawyer, Michael Cohen, that Trump had a history of misrepresenting the value of assets. Capitol insurrection. Trump also faces potential legal consequences outside of New York, including over pressure applied on Georgia officials to negate Joe Biden’s electoral win in that state, as well as whether his actions, or inaction, obstructed Congress in its counting electoral votes on Jan. 6, 2021, the date of the Capitol Riot.

Related Posts

Leave a Reply

Your email address will not be published.

nine + 12 =