![]() James is basically saying, “I am talking about fair business practices in New York. Again, this is not just a matter of, “Oops, I made a mistake.” The attorney general alleges a widespread and longstanding pattern of misrepresentation of business values.īy handing this part of the investigation over to the IRS, the New York attorney general is signaling that she intends to stay in her lane, so to speak. An overstatement of what he gave away would mean that the former president took a bigger income tax deduction than the one he was entitled to. What is at issue for the IRS is whether Trump correctly claimed the proper deduction, or whether he overstated, in a fraudulent way, the value of what he gave to charity. The possible overvaluation relates to two different properties in Westchester, a county outside of New York City, and in Florida. The IRS will be looking for an answer to this question: “Did Trump overstate the valuation of any property he gave to charity?” The New York attorney general is concerned that he did. It would be about federal tax laws, in particular. Jose Perez/Bauer-Griffin/GC Images How would an IRS investigation differ from the New York one? This would be a severe blow to the family’s business interests.įormer president Donald Trump and four of his children are seen at Ivana Trump’s funeral in July 2022 in New York. It could preclude them from having any formal business ties in New York. James is calling for very dramatic relief, including permanently preventing Trump, along with three of his children – Donald Trump Jr., Eric Trump and Ivanka Trump – from serving as a director or officer of any corporation conducting business activities in New York. This is where it gets interesting, I believe. What does the lawsuit demand in way of relief? In other words, this could be just the beginning of a longer story. Just, at this point, the New York attorney general is focused on the civil law violations. So this being a civil lawsuit does not mean we won’t potentially see criminal charges further down the line. That said, James made clear that she has also referred certain matters to both the IRS and to the federal prosecutors in the Southern District of New York for criminal investigation. James is bringing a lawsuit regarding the Trump Organization’s compliance with New York’s civil laws, meaning business and lending laws and the like – hence it is a civil suit. What should we make of this being a civil, not criminal, action? ![]() Moreover, the lawsuit says this is not just a mistake, or an, ‘Oops I got it wrong.’ Rather, the attorney general alleges a systematic pattern of fraud. James is saying that the values are really wrong, and really wrong over a period of years, in multiple different filings. Trump said he had collateral worth a certain amount. And how does the bank measure whether someone is likely to repay? It’s knowing the recipient of a loan has enough collateral to satisfy the bank’s concerns. How does overstating the value of properties help Trump?īanks want to make loans to people who are likely to be able to repay them. Trump didn’t allegedly overestimate the cost of buildings, which is a technical term, but rather he is accused of inflating the value of certain businesses and properties. ![]() ![]() Trump Park Avenue – just how much is it worth? AP Photo/Frank Franklin II But, at its heart, the complaint says the Trump Organization made false financial or business statements in order to get loans or to keep those loans on favorable terms, in a way that was dishonest or fraudulent. The complaint is over 200 pages long and contains many specific claims. What are Trump and his children accused of in the lawsuit? Crawford, an expert on tax and property law at Pace University, to help navigate the various dimensions and the potentially broader, criminal implications of this lawsuit. This follows a three-year investigation into Trump’s New York-based real estate business. The civil lawsuit alleges that Trump, his company – the Trump Organization – and three of his children lied to lenders and insurers about billions of dollars’ worth of assets. 21, 2022, citing “staggering” amounts of falsified business information and fraud. New York Attorney General Letitia James hit former president Donald Trump with a US$250 million lawsuit on Sept.
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