Trumps face N.Y. probe into valuation of assets to get loans

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New York’s attorney general is investigating whether President Donald Trump’s company inflated the value of his assets to secure favorable terms for loans and insurance coverage tax benefits, according to filings in a lawsuit brought by the state on Monday to enforce subpoenas in the matter.

The state opened the probe after Trump’s former lawyer and fixer Michael Cohen testified to Congress about his work for the Trump Organization and handed over financial records from 2011 to 2013, New York Attorney General Letitia James’s office said in a filing Monday in state court in Manhattan. The investigation is also looking into whether Trump devalued other assets to avoid taxes, according to the filing.

James “has issued a number of subpoenas and has taken testimony seeking information material to these matters,” the filing says. She “has not concluded its investigation and has not reached a determination regarding whether the facts identified to date establish violations of any applicable laws.”

“For months, the Trump Organization has acknowledged the OAG’s authority to investigate the matters alleged, and has professed cooperation, but has refused to produce documents on invalid grounds,” James said in a press release Monday. “In recent weeks, Eric Trump has refused to appear entirely to give testimony pursuant to a subpoena, despite his being an important character in certain transactions.”

Bloomberg News
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