N.Y. Attorney General Outlines Pattern of Possible Fraud at Trump Business – The New York Times

Ms. James, who is running for re-election this year, argued in the court filing that while her office had compiled substantial evidence that Mr. Trump’s company had engaged in possible fraud, investigators needed to question Mr. Trump in order to determine who was responsible for “the numerous misstatements and omissions made by him or on his behalf” — and whether they were intentional.

Ms. James has been investigating Mr. Trump’s business practices since March 2019. In previous filings, she described the properties she was scrutinizing and said that her investigators were looking into whether Mr. 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 some of its properties and showing how those misrepresentations had benefited the company, allowing it to receive favorable loans, insurance coverage and tax benefits.

The accusations center on Mr. Trump’s statements of financial condition, the annual record of his assets and liabilities that he gave to lenders and insurers. Ms. James’s office said that he “was personally involved in reviewing and approving the statements of financial condition before their issuance.”

The Trump Investigations

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Numerous inquiries. Since former President Donald Trump left office, there have been many investigations and inquiries into his businesses and personal affairs. Here’s a list of those ongoing:

Numerous inquiries. Since former President Donald Trump left office, there have been many investigations and inquiries into his businesses and personal affairs. Here’s a list of those ongoing:

Investigation into criminal fraud. The Manhattan district attorney’s office and the New York attorney general’s office are investigating whether Mr. Trump or his family business, the Trump Organization, engaged in criminal fraud by intentionally submitting false property values to potential lenders.

Investigation into tax evasion. As part of their investigation, in July 2021, the Manhattan district attorney’s office charged the Trump Organization and its chief financial officer with orchestrating a 15-year scheme to evade taxes. A trial in that case is scheduled for summer 2022.

Investigation into election interference. The Atlanta district attorney is conducting a criminal investigation of election interference in Georgia by Mr. Trump and his allies.

Investigation into the Trump National Golf Club. Prosecutors in the district attorney’s office in Westchester County, N.Y., appear to be focused at least in part on whether the Trump Organization misled local officials about the property’s value to reduce its taxes.

Civil investigation into Trump Organization. The New York attorney general, Letitia James, is seeking to question Mr. Trump under oath in a civil fraud investigation of his business practices.

The filing argued that the statements made “frequent use of misleading asset valuations in order to obtain financial benefits.”

In 2015, for example, while seeking to refinance a loan on his 40 Wall Street tower in Lower Manhattan, Mr. Trump’s statement of financial condition estimated that the property was worth $735 million. Yet one lender concluded it was worth only $257 million.

Ms. James’s lawyers argue that Mr. Trump submitted at least two misleading statements to the Internal Revenue Service, saying that he substantially overstated the value of land at both his Seven Springs Estate in Westchester County and his Los Angeles Golf Club. The value of Seven Springs, Ms. James said, had been boosted by counting the value of seven nonexistent mansions, said to be worth $61 million.