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New York attorney general investigating if Trump inflated value of assets

New York State Atty. Gen. Letitia James
New York State Atty. Gen. Letitia James, shown last year, asked a court Monday to enforce subpoenas in an investigation into whether President Trump and his businesses inflated assets on financial statements.
(Richard Drew / Associated Press)

New York’s Democratic attorney general asked a court Monday to enforce subpoenas in an investigation into whether President Trump and his businesses inflated assets on financial statements.

Atty. Gen. Letitia James filed a petition in state trial court in New York City naming the Trump Organization, an umbrella group for the Republican president’s holdings, as a respondent along with other business entities. The filing also named Eric Trump and Seven Springs, a New York estate owned by the Trump family.

The attorney general said Eric Trump, president of Seven Springs and vice president of the organization, should be compelled to testify.

The investigation centers on whether the Trump Organization and the president improperly inflated the value of assets to secure loans and obtain economic and tax benefits. Investigators are looking into whether the Trump Organization and its agents improperly inflated the value of Seven Springs, north of the city.

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In the court filings, the attorney general’s office wrote that “information regarding the valuation of Seven Springs is significant” to the office’s investigation.

Emails seeking comment were sent to lawyers for the Trump Organization and Eric Trump.

The investigation was launched in March 2019 after Trump’s longtime personal lawyer Michael Cohen told Congress that Trump had inflated the value of his assets to obtain more favorable terms for loans and insurance coverage.

President Trump’s latest bid to block a subpoena for his tax records from the Manhattan district attorney was dismissed by a federal judge.

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Since then, the attorney general’s office has issued “a number of subpoenas and has taken testimony seeking information material to these matters,” the court filing said. Investigators have not yet determined whether the law was broken.

“For months, the Trump Organization has made baseless claims in an effort to shield evidence from a lawful investigation into its financial dealings,” James said in a prepared statement. “They have stalled, withheld documents and instructed witnesses, including Eric Trump, to refuse to answer questions under oath.”

James’ office issued subpoenas to the Trump Organization and to Seven Springs LLC in December 2019, seeking financial documents, the filing said. Since then, both have “engaged in extensive good-faith discussions concerning the Trump Organization’s compliance with the subpoenas.”

The attorney general’s office is also attempting to collect information about several other Trump-related properties, including the Trump National Golf Club near Los Angeles, the Trump International Hotel and Tower in Chicago and an office building on Wall Street in Manhattan where the Trump Organization “owns a ‘ground lease’ pertaining to the property.”

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