donald trump was expected to testify under oath Wednesday as part of the new york.
Attorney General's civil probe into the trump family business Good morning.
The Attorney General has said that she has uncovered significant evidence
that the trump organization used fraudulent property values in
representations that made to banks,
insurers and tax entities.
And they have uncovered evidence that the trumps were directly involved in this.
Attorney general.
Letitia James sent subpoenas to trump and two of his adult Children,
Ivanka trump and Donald trump Jr in december,
ordering them to testify in closed door depositions.
The trumps have denied wrongdoing.
The interview comes on the heels of federal agents searching his florida residents monday for a
separate investigation by the Justice Department.
Corinne Ramey covers white collar crime for the Wall Street Journal and explains what you need to know about
the new york.
Attorney General's civil investigation.
The Attorney General's office has said its probe began in March 2019 after former
trump lawyer Michael Cohen testified before Congress.
It was my experience that mr trump inflated his total assets
when it served his purposes,
such as trying to be listed amongst the wealthiest people in Forbes
and deflated his assets to reduce his real estate
taxes.
Attorney General James Office has since said that Donald trump,
made inaccurate statements in financial documents for multiple properties by
inflating his assets.
This could lead to more favorable terms from lenders or
insurers.
It could lead to bigger loans in 2015 and 2016 trump's
financial statements valued his triplex apartment in trump tower at $327
million based on the assertion that the triplex was 30,000 square feet in size.
The attorney general says the actual size of the apartment was 10,996 square
feet.
And that trump even signed documents confirming this in 2012,
according to the Attorney general.
Alan Weissberg.
The chief financial officer also admitted the value of the apartment was overstated by 200
million.
The attorney general also says trump falsely valued Seven Springs a 213
acre property in Westchester county new york that the former president bought for
$7.5 million.
In 1995.
The trump organization had considered developing the property but later scrapped the plans trump
instead placed 158 acres of the land in a conservation easement.
Conservation easements are donating the land development rights for a
property in exchange for tax benefits.
The conservation easement portion of the land was appraised at $21.1 million in
2016.
And a lawyer for the Attorney General's office said Seven Springs LLC,
which is part of the trump organization claimed a $21.1 million tax deduction for
the easement in tax year 2015.
It was higher than previous valuations.
This allowed him to get a larger tax benefit according to the attorney general.
A spokeswoman for the trump organization said Attorney General James allegations were
baseless and the trumps have claimed that the subpoenas could be used to improperly gather
evidence for a separate criminal investigation by the Manhattan District Attorney,
which has led to indictments charging the trump organization and its financial chief,
Alan Weissberg with tax crimes.
That investigation is continuing an and it has looked at
similar issues in terms of deflating and inflating assets.
Lawyers for the trump also argued that the Office of Attorney general James,
a democrat had unfairly targeted the former president and his Children for political
reasons.
They point to statements she made during her campaign when she has said she'll investigate the
trumps and sort of made this a campaign priority.
The trumps had attempted to avoid testifying by asking courts to quash the subpoenas,
but the courts ruled in favor of the attorney general and said that the subpoenas were valid.
So the trumps ran out of legal options and now they need to testify.
Lawyers for the new york.
Attorney general have indicated that they could file a civil lawsuit but it's unclear who the
defendants would be.
It could be the trump organization.
It could be trump himself or other company executives or employees.
It could be as kids.
Typically these lawsuits,
they take several years to go through the courts and they,
it could end in a settlement or trial and typically the penalties are financial