Possible fraudulent acts by Donald Trump, his company revealed in court filings – Archyde

New York’s attorney general’s office told a court late Tuesday that its investigators had uncovered evidence that former President Donald Trump’s company used “fraudulent or misleading” asset valuations to obtain loans and tax benefits.

The court filing says state authorities have not yet decided whether to pursue a civil action in connection with the allegations, but that investigators need to question Trump and his two eldest children as part of the investigation.

In the court documents, Attorney General Letitia James’ office presented its most detailed assessment yet of a long-running investigation into allegations that Trump’s company exaggerated the value of assets to obtain favorable credit terms or misreported the value of land to increase its tax burden reduce.

The Trump Organization overstated the value of land donations in New York and California on documentation submitted to the IRS to justify multimillion-dollar tax deductions.

The company misrepresented the size of Trump’s Manhattan penthouse, saying it was almost three times the actual size — a difference in value of about $200 million, James’s office said, citing testimony from Trump’s longtime chief financial officer, Allen Weisselberg, who was charged last year with tax evasion in a parallel investigation.

Attorney General of New York Letitia James speaks at a news conference in her New York office on May 21, 2021. James is seeking testimony from former President Donald Trump, as well as testimony from his daughter and eldest son, in an ongoing investigation into his business practices. (Richard Drew/The Associated Press)

James’ office detailed its findings in a court motion aimed at compelling Trump, his daughter Ivanka Trump and son Donald Trump Jr. to comply with subpoenas asking for their testimony.

Investigators, according to the court filing, had developed “significant additional evidence suggesting that the Trump Organization used fraudulent or misleading asset valuations to obtain a variety of economic benefits, including loans, insurance coverage and tax deductions.”

Messages asking for comment were left with lawyers for the Trumps.

Separate civil and criminal investigations by the Trump Organization

Trump’s legal team has tried to block the subpoenas, calling them an “unprecedented and unconstitutional maneuver.” They say James is improperly attempting to obtain testimony that could be used in the parallel criminal investigation being overseen by Manhattan District Attorney Alvin Bragg.

Trump sued James in federal court last month to end their investigation. In the lawsuit, his attorneys allege that the attorney general, a Democrat, violated the Republican’s constitutional rights in a “thinly veiled attempt to publicly slander Trump and his associates.”

In a statement late Tuesday, James’ office said it had not yet decided whether to take legal action, but that the evidence collected so far shows the investigation should proceed unhindered.

“For more than two years, the Trump Organization has used delaying tactics and litigation to thwart a legitimate investigation into its financial operations,” James said. “To date in our investigation, we have uncovered significant evidence suggesting that Donald J. Trump and the Trump Organization mispriced and fraudulently multiple assets and misrepresented those values ​​to financial institutions for economic gain.”

The Seven Springs, a Trump property, will be shown on February 23, 2021 in Mount Kisco, NY. State authorities in New York are investigating whether Trump manipulated the value of the property to gain greater tax benefits. (John Minchillo/The Associated Press)

Although James’ civil investigation is separate from the criminal investigation, her office was involved in both and dispatched several attorneys to work alongside prosecutors from the Manhattan Attorney’s Office.

James’ office said that under state law it could pursue “a wide range of remedies” against companies found to have engaged in commercial fraud, “including revocation of a license to conduct business within the state, relocation to remove an officer or director [the] of the Board of Directors and the return and surrender of unlawfully acquired winnings.”

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

  • Listed his Seven Springs estate north of New York City at $291 million based on the dubious assumption that it could fetch $161 million by building nine luxury homes.
  • Adding a “brand premium” of 15 to 30 percent to the value of some properties because they bore the Trump name, even though the financial reports specifically stated that they contained no brand equity.
  • Added millions of dollars to the value of a suburban New York golf club by counting membership fees that were unsold or never paid.
  • Appraised a Park Avenue apartment tower at $350 million based on the proceeds it was able to generate from unsold units, although many of these apartments would likely sell for less because they fell under rent stabilization laws.
  • Valued an apartment rented to Ivanka Trump for up to $25 million, although she had an option to buy it for $8.5 million.
  • Documents say his interest in an office building, 40 Wall Street, was valued at between $525 million and $602 million — between two and three times the estimate reached by appraisers at lender Capital One.

A judge previously sided with James to question another Trump son, Trump Organization executive Eric Trump, who ultimately lobbied for testimony but declined to answer many questions.

Last year, the Manhattan District Attorney filed tax fraud charges against the Trump Organization and Weisselberg, its longtime chief financial officer.

Georgia, January 6th The investigation continues

Weisselberg pleaded not guilty to charges that he and the company evaded taxes on lucrative perks paid to executives.

Both investigations are related, at least in part, to allegations in news reports and by Trump’s former personal attorney, Michael Cohen, that Trump has a history of misrepresenting the value of assets.

The revelations about the attorney general’s investigation came on the same day that Trump’s ally Rudy Giuliani and other members of the legal team who tried to overturn the results of the 2020 presidential election were subpoenaed by a House committee investigating the U.S. Capitol riot .

Trump also threatens possible legal consequences outside of New York. including undue pressure on Georgian officials to negate Joe Biden’s electoral victory in that state, and whether his actions or inaction impeded Congress in counting the votes on January 6, 2021, the date of the Capitol Riot.

Reference-www.nach-welt.com

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