New York A.G. Letitia James Files Legal Action Against Trump Organization

The New York AG is investigating Trump’s private business, the Trump Organization, for misleading lenders by inflating the value of its assets.

In the legal filing, the AG’s office said it is investigating Trump’s use of “Statements of Financial Condition” that summarizes his assets and debts. The filing is asking the a state judge to compel the Trump Organization to produce information it has been withholding, including a subpoena to Eric Trump.

The filing said that Eric Trump had been scheduled to be interviewed in the investigation in late July, but abruptly canceled that interview. The filing says that Eric Trump is now refusing to be interviewed, with Eric Trump’s lawyers saying, “We cannot allow the requested interview to go forward … pursuant to those rights afforded to every individual under the Constitution.”

Three Trump properties were mentioned regarding their valuations: a Los Angeles golf course, an office property at 40 Wall St., and a country estate called “Seven Springs” in Westchester County, N.Y.

In 2011, Trump’s statement claimed that the property had been “zoned for nine luxurious homes,” and that the value of those home lots raised the value of the overall property to $261 million — far more than the $20 million assessed by local authorities. Local officials said Trump had received preliminary conceptual approval for those homes, but never completed the process or obtained final zoning permission. The homes were never built.

The court filing also mentions a question about a loan on Trump’s Chicago hotel, which one of Trump’s lenders forgave in 2010. The filing does not say why that forgiven loan is of interest to investigators.

Washington Post