New York State Attorney General Letitia James Was Investigating Trump, Trump’s Family, And The Trump Organization Over Alleged Manipulation Of Asset Valuations To Secure Better Loan Rates And Tax Benefits. According to the Washington Post, “James, the New York attorney general, is investigating whether to bring a civil lawsuit against Trump, his family or the Trump Organization for allegedly manipulating the value of assets to secure better loan rates and tax benefits.” [Washington Post, 4/29/22]
March 2019: New York State Attorney General’s Office Began Investigation Of Trump Organization For Civil Fraud. According to the Wall Street Journal, “A New York state judge ordered the Trump Organization to turn over documents subpoenaed by the state attorney general’s office, indicating that a 2½-year civil-fraud investigation into the former president’s business affairs is still active. […] In the civil-fraud investigation, the attorney general’s office filed court papers asking the judge to force the Trump Organization and others to comply with civil subpoenas. The office said that since March 2019 it had been investigating whether the Trump Organization and former President Donald Trump improperly inflated the value of his assets in financial filings. The probe has examined financial dealings at Trump properties such as Seven Springs, an estate north of New York City, and 40 Wall St., a Manhattan office building, the office said.” [Wall Street Journal, 9/24/21]
Lawyer For Attorney General James’ Office Said In A Hearing That There Was A “Substantial Amount Of Evidence Amassed” Through The Probe That Could Support Enforcement Action Against Trump Or The Trump Organization. According to the Washington Post, “At a court hearing in that matter, a lawyer for James’ office said evidence found in the probe could support legal action against the former president, his company or both. The lawyer, Andrew Amer, said at a hearing in Trump’s lawsuit against James that ‘there’s clearly been a substantial amount of evidence amassed that could support the filing of an enforcement proceeding,’ although a final determination on filing such an action has not been made.” [Washington Post, 6/29/22]
New York Attorney General’s Office Said Trump “Was Personally Involved In Reviewing And Approving The Statements Of Financial Condition Before Their Issuance.” According to the New York Times, “Mr. Trump’s lawyers are likely to point to disclaimers in these statements that the data had not been audited or authenticated. But Ms. James’s office said that he ‘was personally involved in reviewing and approving the statements of financial condition before their issuance.’” [New York Times, 1/18/22]
New York Attorney General’s Office Said Donald Trump Jr. Signed Off On His Father’s Statements Of Financial Condition. According to Rolling Stone, “According to James’ office, Ivanka was also personally aware of the situation at one of the properties in question, Trump Park Avenue. The memorandum said the former president’s daughter “occupied an apartment at Trump Park Avenue for which she obtained apparently extraordinarily favorable terms,” including “a monthly rental rate that was a mere fraction per square foot of what other penthouse tenants paid in the building.” Ivanka’s apartment deal also allegedly included “an option to purchase the unit” for less than half its stated value. The memorandum also said that Don Jr. signed off on some of his father’s annual “Statements of Financial Condition.” On some of these certifications, Don Jr. claimed he was signing off as his father’s “attorney in fact” [Rolling Stone, 1/18/22]
New York Attorney General’s Office Said In A Court Filing It Had Evidence Trump Organization “Used ‘Fraudulent Or Misleading’ Valuations Of Its Golf Clubs, Skyscrapers And Other Property To Get Loans And Tax Benefits.” According to the Associated Press, “The New York attorney general says her investigators have uncovered evidence that former President Donald Trump’s company used ‘fraudulent or misleading’ valuations of its golf clubs, skyscrapers and other property to get loans and tax benefits. In a court filing late Tuesday, lawyers for Attorney General Letitia James told a judge they have not decided whether to bring a lawsuit in connection with the allegations, but that investigators should be allowed to question Trump and his two eldest children under oath as part of the civil probe.” [Associated Press, 1/19/22]
The New York Attorney General’s Office Said The Trump Organization “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.” According to the Associated Press, “The Trump Organization, James’ office said, 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.” [Associated Press, 1/19/22]
The New York Attorney General’s Office Said The Trump Organization Reported Trump’s Manhattan Penthouse Was Three Times Larger Than It Was, Raising Trump’s Wealth By $200 Million On Wealth Estimates. According to the Associated Press, “When giving estimates of Trump’s wealth, the company misreported the size of his Manhattan penthouse, saying it was nearly three times its actual size — a difference in value of about $200 million, James’ office said, citing deposition testimony from Trump’s longtime financial chief Allen Weisselberg, who was charged last year with tax fraud in a parallel criminal investigation.” [Associated Press, 1/19/22]
Allen Weisselberg, Trump Organization CFO, Said The Apartment Was Overvalued By $200 Million. According to the New York Times, “The additional square footage allowed the company to claim a $327 million value for the apartment in statements of financial condition. Ms. James said that Allen H. Weisselberg, the Trump Organization’s longtime chief financial officer, had said during questioning by Ms. James’s investigators that the apartment was overvalued by ‘give or take’ $200 million.” [New York Times, 1/18/22]
Weisselberg Told A Trump Insurer That The Property Was Professionally Appraised, When The Appraisal Had Been Done By Trump Organization Staff. According to the New York Times, “Mr. Weisselberg, the filing contends, also falsely told one of Mr. Trump’s insurance companies that the property valuations were based on assessments by professional appraisers, when that was not the case. In reality, ‘the valuations were prepared by Trump Organization staff,’ the filing said.” [New York Times, 1/18/22]
The New York Attorney General’s Office Said Trump Organization Listed Seven Springs Estate As Worth $291 Million Based On “Dubious” Assumption That It Could Make $161 Million From Building Nine Luxury Homes. According to the Associated Press, “In the court papers, James’ 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 a dubious assumption that it could reap $161 million from building nine luxury homes.” [Associated Press, 1/19/22]
The New York Attorney General’s Office Said The Trump Organization Added 15% To 30% In “Brand Premium” To Some Properties Despite Financial Statements Saying The Properties Did Not Incorporate Brand Value. According to the Associated Press, “In the court papers, James’ office said evidence shows that Trump’s company: […] Added a ‘brand premium’ of 15% to 30% to the value of some properties because they carried the Trump name, despite financial statements explicitly stating they did not incorporate brand value.” [Associated Press, 1/19/22]
The New York Attorney General’s Office Said The Trump Organization Inflated The Value Of A Suburban New York Golf Club By Millions By Counting Membership Fees That Were Not Sold Or Never Paid. According to the Associated Press, “In the court papers, James’ office said evidence shows that Trump’s company: […] Inflated the value of a suburban New York golf club by millions of dollars by counting fees for memberships that were not sold or were never paid.” [Associated Press, 1/19/22]
The New York Attorney General’s Office Said The Trump Organization Overvalued A Park Avenue Condo Tower Based On Profits From Unsold Units, Even Though The Units Were Likely To Sell For Less Due To Rent Stabilization Laws. According to the Associated Press, “In the court papers, James’ office said evidence shows that Trump’s company: […] Valued a Park Avenue condominium tower at $350 million, based on proceeds it could reap from unsold units, even though many of those apartments were likely to sell for less because they were covered by rent stabilization laws.” [Associated Press, 1/19/22]
Appraisers Assessed 40 Wall Street As Worth $220 Million In 2012 And Three Years Later The Worth Jumped To $540 Million Based On “Incorrect Facts And Aggressive Assumptions.” According to the New York Times, “In one case in 2012, the appraisers assessed that the value of 40 Wall Street was $220 million, but just three years later determined the value to be $540 million. ‘The appraisal appears to have used demonstrably incorrect facts and aggressive assumptions,’ the filing said.” [New York Times, 1/18/22]
Trump Submitted A Cushman & Wakefield Valuation Of $25 Million For The Trump National Golf Course Driving Range, Which Was “Substantially Overstated,” To The IRS. According to the New York Times, “The Attorney General office’s also said that a Cushman & Wakefield appraisal of the driving range at Trump National Golf Course in Los Angeles, which the firm valued at $25 million, was ‘substantially overstated.’ Mr. Trump submitted that valuation to the I.R.S. to receive a tax benefit, the office said.” [New York Times, 1/18/22]
The New York Attorney General’s Office Said The Trump Organization Valued An Ivanka Trump Apartment At $25 Million Despite Her Holding An Option To Purchase At $8.5 Million. According to the Associated Press, “In the court papers, James’ office said evidence shows that Trump’s company: […] Valued an apartment being rented to Ivanka Trump at as high as $25 million, even though she had an option to buy it for $8.5 million.” [Associated Press, 1/19/22]
The New York Attorney General’s Office Said The Trump Organization Said Its Stake In 40 Wall Street Was Worth $525 To $600 Million, Two To Three Times What Capital One Appraisers Estimated. According to the Associated Press, “In the court papers, James’ office said evidence shows that Trump’s company: […] Said in documents that its stake in an office building, 40 Wall Street, was worth $525 million to $602 million — two to three times the estimate made by appraisers working for the lender Capital One.” [Associated Press, 1/19/22]
New York Attorney General’s Office Said The Trump Organization Misled Over The Valuation Of Trump Aberdeen On The Assumption It Could Build 2,500 Luxury Homes When It Was Only Approved For Under 1,500. According to the New York Times, “A year earlier, Mr. Trump valued his Aberdeenshire golf club in Scotland at $435 million. But according to Ms. James’s filing, that estimate was inflated, thanks in large part to the Trump Organization’s erroneous assumption that it could build 2,500 luxury homes on the property when, in fact, it had approval to build fewer than 1,500 ‘holiday apartments,’ residences and golf villas.” [New York Times, 1/18/22]
New York Attorney General Sought Handwritten Notes From Trump That Could Detail Statements Of Financial Condition. According to the Washington Post, “Investigators involved in the probe have said that although Trump may not have used email or text messages in conducting his business, they are seeking Post-it notes and other handwritten missives that could shed light on internal deliberations at the Trump Organization — specifically related to Trump’s statements of financial condition that he routinely provided to banks and other parties.” [Washington Post, 4/25/22]
Trump Legal Team Said No Records Existed To Satisfy The Request For Documents. According to the Washington Post, “Trump’s legal team has said there are no records in his possession that match what the attorney general’s team has asked for. On Monday, a lawyer for Trump said she will appeal the decision to hold him in contempt.” [Washington Post, 4/25/22]
April 2022: New York Supreme Court Judge Held Trump In Contempt For Failing To Comply With Order To Turn Over Records To The Attorney General’s Investigation. According to the Washington Post, “James is moving aggressively, and her probe has produced some consequences for Trump. In April, New York Supreme Court Justice Arthur Engoron held Trump in contempt of court for failing to comply with an order to turn over records to James’s office by March 31. He’s since given the former president until May 20 to show how his team has searched for the documents, but Trump has accrued daily fines totalling $110,000, which the judge says he must pay. Engoron has also ordered Trump and two of his children to sit for depositions, though they are appealing that order.” [Washington Post, 4/29/22]
Judge Gave Trump Until May 20, 2022, To Show How His Team Has Searched For The Documents. According to the Washington Post, “James is moving aggressively, and her probe has produced some consequences for Trump. In April, New York Supreme Court Justice Arthur Engoron held Trump in contempt of court for failing to comply with an order to turn over records to James’s office by March 31. He’s since given the former president until May 20 to show how his team has searched for the documents, but Trump has accrued daily fines totalling $110,000, which the judge says he must pay. Engoron has also ordered Trump and two of his children to sit for depositions, though they are appealing that order.” [Washington Post, 4/29/22]
May 11, 2022: Judge Agreed To Lift Contempt Finding If Trump Paid Fine And Submitted Affidavits For The Search. According to the Washington Post, “The attorney general asked Engoron to find Trump in contempt of court after he failed to produce any documents to satisfy a March 31 deadline to meet the terms of her subpoena. Engoron fined Trump $10,000 per day for not complying but stopped the fine from accruing in early May, when it appeared a resolution to the dispute was near. Engoron originally agreed May 11 to lift Trump’s contempt order if he paid the fines and met certain other conditions, including the submission of affidavits describing his search efforts and his company’s document retention policies.” [Washington Post, 6/29/22]
June 29, 2022: Judge Lifted Contempt Of Court Finding. According to the Washington Post, “Donald Trump is no longer in contempt of court, a New York judge ruled Wednesday. Judge Arthur Engoron, who declared the former president in contempt on April 25 for being slow to respond to a civil subpoena issued by New York’s attorney general, said he has now met conditions required to lift the sanction following a protracted legal battle.” [Washington Post, 6/29/22]
Trump Continued Appeal Of Original Contempt Of Court Finding. According to the Washington Post, “Trump last month paid $110,000 in fines he racked up as a result of the contempt finding. The money, paid directly to Attorney General Letitia James’ office, will continue to be held in an escrow account while Trump appeals the original contempt finding, Engoron said Wednesday.” [Washington Post, 6/29/22]
2021: Trump Sued New York Attorney General Letitia James To Stop Civil Investigation. According to Reuters, “Former U.S. President Donald Trump on Friday lost a bid to stop New York state Attorney General Letitia James' probe of his business practices, allowing the three-year investigation to move forward. Trump, a Republican, last year sued James in federal court in upstate Albany, arguing the civil investigation into whether the Trump Organization misled banks and tax authorities about the valuations of its assets should be halted because he felt James, a Democrat, was using the case to further her political career.” [Reuters, 5/27/22]
May 2022: Trump’s Suit That James Targeted Trump Over Politics Was Dismissed. According to the Washington Post, “A federal judge last month dismissed a lawsuit Trump brought against James, rejecting his claim that she targeted him out of political animus and allowing her civil investigation into his business practices to continue.” [Washington Post, 6/29/22]
Trump Attacked Investigation As “Racist” And A Politically Motivated “Witch Hunt.” According to the Washington Post, “Trump, a Republican, has denied the allegations. He has called James’ investigation “racist” and a politically motivated “witch hunt.” James is Black. Trump’s lawyers have accused her of selective prosecution.” [Washington Post, 6/29/22]
Judge Compelled Eric Trump, Who Sat For A Deposition, But Declined To Answer Questions. According to the Associated Press, “One judge 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 some questions.” [Associated Press, 1/19/22]
New York Attorney General James Sought To Depose Donald Trump, Donald Trump Jr. And Ivanka Trump. According to the New York Times, “In early December, Ms. James issued a subpoena for Mr. Trump as well as for Donald Trump Jr. and Ivanka Trump, seeking to question them as part of her civil inquiry. Ms. James already questioned another of Mr. Trump’s sons, Eric Trump, in October 2020. He invoked his Fifth Amendment right against incriminating himself in response to more than 500 questions, the new court filing said.” [New York Times, 1/18/22]
Judge Ordered Trump And Children To Sit For Depositions; Trump Appealed The Order. According to the Washington Post, “James is moving aggressively, and her probe has produced some consequences for Trump. In April, New York Supreme Court Justice Arthur Engoron held Trump in contempt of court for failing to comply with an order to turn over records to James’s office by March 31. He’s since given the former president until May 20 to show how his team has searched for the documents, but Trump has accrued daily fines totalling $110,000, which the judge says he must pay. Engoron has also ordered Trump and two of his children to sit for depositions, though they are appealing that order.” [Washington Post, 4/29/22]
New York Court Of Appeals Rejected Trump Appeal And Cleared Way For Deposition. According to the Associated Press, “New York’s highest court on Tuesday rejected former President Donald Trump’s last-ditch effort to avoid testifying in the state attorney general’s civil investigation into his business practices, clearing the way for his deposition next month. The state’s Court of Appeals said there was no “substantial constitutional question” that would warrant its intervention in the matter following an intermediate appellate court’s ruling last month enforcing a subpoena for Trump’s testimony. The court also dismissed a motion by Trump’s lawyers to stay the subpoenas, saying that doing so would be “academic,” since it wasn’t taking up the former president’s appeal in the first place.” [Associated Press, 6/14/22]
Trump, Donald Trump Jr. And Ivanka Were Scheduled To Begin Depositions On July 15, 2022. According to the Associated Press, “New York’s highest court on Tuesday rejected former President Donald Trump’s last-ditch effort to avoid testifying in the state attorney general’s civil investigation into his business practices, clearing the way for his deposition next month. The state’s Court of Appeals said there was no “substantial constitutional question” that would warrant its intervention in the matter following an intermediate appellate court’s ruling last month enforcing a subpoena for Trump’s testimony. The court also dismissed a motion by Trump’s lawyers to stay the subpoenas, saying that doing so would be “academic,” since it wasn’t taking up the former president’s appeal in the first place. Trump and his two eldest children, Ivanka and Donald Trump Jr., agreed last week to answer questions under oath starting July 15 unless the Court of Appeals decided to step in.” [Associated Press, 6/14/22]