DCR Politics & Law: New York attorney general files legal action against Trump Organization and revealing state investigation into the company’s financial dealings.☕☕☕

Ayyyeee… What’s Goodie Everyone. So I got some very hot tea and it involves the New York state attorney general, Donald Trump and a lawsuit.

New York attorney general Letitia James is investigating President Trump’s private business for allegedly misleading lenders by inflating the value of its assets, the attorney general’s office said Monday in a legal filing.

In the filing, the attorney general’s office said it is investigating Trump’s use of “Statements of Financial Condition” documents Trump sent to lenders, summarizing his assets and debts.

The filing asks a New York state judge to compel the Trump Organization to provide information it has been withholding from investigators including a subpoena seeking an interview with the president’s son Eric.

The attorney general’s office said it began investigating after Trump’s former lawyer and “fixer,” Michael Cohen, told Congress in February 2019 that Trump had used these statements to inflate his net worth to lenders.

Last year, it was reported that Trump had inflated the potential sale value of the Seven Springs property in a “Statement of Financial Condition” a type of document he sent to potential lenders to demonstrate his wealth.

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.

Alan Garten, the Trump Organization’s chief legal officer, said in a statement that “The Trump Organization has done nothing wrong.” Instead, he blamed the filing on politics.

According to the Washington Post; 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.

Many details of the investigation were redacted or left out of the filing. But it mentioned valuations of three Trump properties which includes, a Los Angeles golf course, an office building at 40 Wall St. and a country estate called “Seven Springs” in Westchester County, N.Y.

The filing states that Eric Trump had been scheduled to be interviewed in the investigation in late July, but he 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.”

The court filing also states 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.

In the filings, James’s office said it has “not reached a determination” as to whether Trump’s company violated any laws.

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