New York probe finds 'significant evidence' of Trump Org. fraud
Trump's lawyer says the probe is 'merely the latest in a long line of unfounded attacks against my client'
New York's top justice official said her investigation into Donald Trump's family business uncovered "significant evidence" of fraudulent or misleading practices, intensifying pressure on the former president as he tries to shut down the probe.
In a court filing late Tuesday, state Attorney General Letitia James wrote that the ongoing civil inquiry found that the Trump Organization fraudulently overvalued multiple assets to secure loans and then undervalued them to minimize taxes.
She asked a judge to compel Trump and his two eldest children - Donald Trump Jr. and Ivanka Trump - to answer questions in the years-long probe that has become a threat to any plans he may have for a second presidential run in 2024.
The filing marked the most detailed allegations that James, a Democrat, made against Trump's company since she launched the investigation in March 2019.
She said the Trump Organization "misrepresented" the valuation of assets to financial institutions including the Inland Revenue Service, banks, and insurers for "economic benefit."
The alleged fraudulent valuations included claiming Trump's penthouse in Manhattan's Trump Tower was three times bigger than it was, overestimating its value by $200 million.
Another said the company "disguised" what appeared to be a more than 80 percent drop in value of a luxury home development in the New York City suburbs.
The filing was made in response to Trump's efforts to block her from questioning him and his two eldest children under oath.
The family claimed the investigation is politically motivated and urged the court to quash subpoenas against the three.
"The Trumps must comply with our lawful subpoenas for documents and testimony because no one in this country can pick and choose if and how the law applies to them," James wrote.
Trump's lawyer, Alina Habba, told AFP via email that James's filing was "merely the latest in a long line of unfounded attacks against my client."
Trump's son Eric, executive vice president of the Trump Organization, was interviewed by James's office on the issue in October 2020.
If James finds evidence of financial misconduct, she can sue the Trump Organization for damages but cannot file criminal charges.