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New York AG says probe into Trump and his business found ‘significant evidence’ suggesting fraud

Former U.S. President Donald Trump leaves Trump Tower in Manhattan on October 18, 2021 in New York City.
James Devaney | GC Images | Getty Images

New York Attorney General Letitia James disclosed new details Tuesday night about her civil investigation into former President Donald Trump’s business, saying the probe has uncovered evidence suggesting the fraudulent valuing of multiple assets and misrepresentations of those values to financial institutions for economic benefit.

James, who launched her probe in 2019, also said in the court filing that the former president “had ultimate authority over a wide swath of conduct by the Trump Organization involving misstatements to counterparties, including financial institutions, and the Internal Revenue Service.”

She further referenced two of the former president’s adult children, Donald Trump Jr. and Ivanka Trump.

“Since 2017, Donald Trump, Jr. has had authority over numerous financial statements containing misleading asset valuations,” James wrote in the court filing.

Ivanka Trump, a former White House adviser, “was a primary contact for the Trump Organization’s largest lender, Deutsche Bank. In connection with this work, Ms. Trump caused misleading financial statements to be submitted to Deutsche Bank and the federal government,” James wrote.

“Thus far in our investigation, we have uncovered significant evidence that suggests Donald J. Trump and the Trump Organization falsely and fraudulently valued multiple assets and misrepresented those values to financial institutions for economic benefit,” James said in a statement Tuesday. “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.”

Her office added that it “has not yet reached a final decision regarding whether this evidence merits legal action.”

James is conducting a civil investigation into whether the Trump Organization committed fraud in reporting the value of certain properties to banks and tax authorities.

Tuesday’s filing is in response to legal efforts by the former president to quash a series of subpoenas against him, Donald Trump Jr., and Ivanka Trump. James is seeking an order to compel all three to appear for sworn testimony.

The filing says there have been problems with valuations in statements that have not been explained by the Trump Organization.

“In light of the pervasive and repeated nature of the misstatements and omissions, it appears that the valuations in the Statements were generally inflated as part of a pattern to suggest that Mr. Trump’s net worth was higher than it otherwise would have appeared,” James wrote.

NBC News has reached out to the Trump Organization for comment on the allegations against the company, Donald Trump Jr. and Ivanka Trump. Attorneys for Donald Trump Jr., Ivanka Trump and the former president did not immediately respond to overnight requests for comment.

The state attorney general is assisting a separate Manhattan district attorney criminal investigation into allegations of tax fraud schemes at Trump’s company.

Because of that, lawyers for Ivanka Trump, Donald Trump Jr. and their father have opposed the subpoenas from James’ office, arguing they are improper.

The state attorney general “is engaged in a criminal investigation that has an active grand jury. It cannot issue subpoenas for testimony under the guise of a civil investigation that will immediately become available” to its own criminal investigation, the Trumps’ attorneys argued in their motion to quash the subpoenas.

Ronald Fischetti, an attorney for Trump, said last month: “They have been investigating this for three years. We are not concerned about it, because he has done nothing wrong.”

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