BREAKING NEWS: New York state AG wants to question Eric Trump in probe on claims Trump Organization inflated his father’s property values in ‘tax and loan fraud’
- Eric Trump has refused to comply with a subpoena in a tax and loan fraud probe, New York State Attorney General Letitia James claims in court documents
- She reveals he and Trump Organization are focus of ‘ongoing confidential civil investigation into potential fraud or illegality’
- James said she began probe after Michael Cohen told Congress that the president’s financial statements inflated the value of some assets
- He said move was to save money on loans and insurance, while others assets were deflated to reduce real estate taxes
- Four properties are being probed, including 212-acre Seven Springs Estate in Westchester County,New York, used to claim apparent $21.1m tax deduction
- Other properties include 40 Wall Street in Manhattan, the Trump International Hotel and Tower in Chicago, and the Trump National Golf Club in Los Angeles
- Trump Organization claims probe is politically motivated and accuses James of ‘harassment of the company as we approach the election’
Published: 12:11 EDT, 24 August 2020 | Updated: 15:15 EDT, 24 August 2020
New York state’s attorney general is investigating whether the Trump Organization and Donald Trump improperly inflated the value of the U.S. president’s assets on annual financial statements in order to secure loans and obtain economic and tax benefits, according to a court filing.
The disclosure was made in a filing on Monday with a New York state court in Manhattan, where the office of Attorney General Letitia James wants to compel the Trump Organization, Donald Trump’s son Eric, and several other defendants to comply with subpoenas it issued.
According to the filing, the subpoenas were issued as part of the attorney general’s ‘ongoing confidential civil investigation into potential fraud or illegality.’
James said Eric Trump, an executive vice president at the Trump Organization, was ‘intimately involved’ in one or more transactions being reviewed, and refused to show up for a scheduled interview pursuant to a subpoena.
James said she began her probe after Donald Trump’s former personal lawyer Michael Cohen testified before the U.S. Congress that the president’s financial statements inflated the value of some assets to save money on loans and insurance, and deflated the value of other assets to reduce real estate taxes.
Four properties are being probed, including the 212-acre Seven Springs Estate in northern Westchester County, north of New York City, whose valuations were used to claim an apparent $21.1 million tax deduction for 2015.
Facing fraud claims: Eric Trump – seen with his father in the Oval Office – is the subject of a subpoena by the New York state attorney general as it investigates claims Trump Organization asset values were inflated in a fraud probe
Probe: One of the three properties the New York state attorney general, Letitia James, is focused on is the Trump International Hotel and Tower in Chicago
Also in the spotlight: The New York AG is investigating whether there was a tax fraud involving the Seven Springs Estate in Bedford, Westchester County, north of New York City. James’ office said valuations of the Seven Springs Estate were used to claim an apparent $21.1 million tax deduction in the 2015 tax yea
Other properties include 40 Wall Street in downtown Manhattan, the Trump International Hotel and Tower in Chicago, and the Trump National Golf Club in Los Angeles.
Lawyers for the Trump Organization and Eric Trump did not immediately respond to a request for comment.
James’ office said valuations of the Seven Springs Estate were used to claim an apparent $21.1 million tax deduction in the 2015 tax year, and in submissions to financial institutions as a component of Donald Trump’s net worth.
According to James’ office, the Trump Organization and others have already produced ‘significant amounts’ of material responsive to the subpoenas, but the parties have reached an ‘impasse’ on some issues.
It also said there has been no determination regarding whether any laws were broken.
In the court filings, the attorney general´s office wrote that ‘information regarding the valuation of Seven Springs is significant’ to the office´s investigation.
The Trump Organization said James’ investigation was politically motivated.
‘While we have tried to cooperate in good faith with the investigation at every turn, the NYAG’s continued harassment of the company as we approach the election (and filing of this motion on the first day of the Republican National Convention) once again confirms that this investigation is all about politics,’ according to an emailed statement from the organization. ‘We will respond to this motion as appropriate.’
Also in the investigation: 40 Wall Street is the Manhattan property being investigated in the probe into whether Trump inflated the value of his properties
How probe began: Letitia James said she opened the investigation after Michael Cohen – who is now serving his four-year jail sentence at home in Manhattan – testified to Congress that Trump had inflated or deflated asset values to gain tax and loan advantages
While the Trump Organization and others have already produced ‘significant amounts’ of subpoenaed materials, James’ office said the parties are at an impasse over some materials.
‘For months, the Trump Organization has made baseless claims in an effort to shield evidence from a lawful investigation into its financial dealings,’ James said in a statement.
‘They have stalled, withheld documents, and instructed witnesses, including Eric Trump, to refuse to answer questions under oath.’
James’ office issued subpoenas to the Trump Organization and to Seven Springs LLC in December 2019, seeking financial documents, the filing said. Since then, both have ‘engaged in extensive good-faith discussions concerning the Trump Organization´s compliance with the subpoenas.’
The attorney general´s office is also attempting to collect information about several other Trump-related properties, including the Trump National Golf Club near Los Angeles, the Trump International Hotel and Tower in Chicago and an office building on Wall Street in Manhattan where the Trump Organization ‘owns a `ground lease´ pertaining to the property.’
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