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The New York Attorney General’s Office says it has identified several “misleading statements and omissions” in the Trump Org. accounts

In a trial late Tuesday, investigators stated that the office "intends to make a final decision on who is responsible for this misinformation and omissions," adding that "OAG requires the testimony and evidence sought herein to determine "which Trump Organization employees and affiliates - and which other entities and individuals - may have assisted the Trump organization and Mr. Trump in making, or may have relevant knowledge of, the misinformation and omissions in the case."

They write that "witnesses closest to the top of the Trump organization have asserted their rights in the Fifth Amendment against self-incrimination. Some others have declared erroneous memories or claimed to follow instructions from more senior executives."

"But Mr. Trump's actual knowledge of - and intention to make - the numerous misinformation and omissions made by him or on his behalf are essential components of resolving OAG's investigation in an appropriate and fair manner," the case states. "Similarly, Donald Trump, Jr. and Ivanka Trump acted as agents for Mr. Trump, acting on their own behalf and supervising others in connection with the transactions in question here; their testimony is also necessary for an appropriate solution to OAG's investigation."

CNN has contacted the Trump organization and representatives of Trumps for a comment.

Ivanka Trump was an important link with lender Deutsche Bank, while Donald Trump Jr. was involved in several properties, including 40 Wall Street, and confirmed the accuracy of the financial statements from 2017 onwards, the attorney general's office said.

In lengthy lawsuits, investigators said about a dozen current and former employees of the Trump Organization have testified, and that Trump personally approved the preparation of his tax returns.

"Given the pervasive and repetitive nature of the misinformation and omissions, it appears that the valuations in the statements were generally inflated as part of a pattern suggesting that Mr. Trump's net worth was higher than it would otherwise have seen. out, "he writes. wrote the investigators.

They added that when Eric Trump and Allen Weisselberg, the former CFO, testified in 2020, they both claimed their fifth amending right against self-incrimination in response to over 500 questions each.

Specifically, the New York Judiciary said it has reset several specific alleged misinformation, including:

  • The size of Trumps Trump Tower penthouse;
  • Incorrectly categorized assets outside the control of Trump or the Trump organization as "cash," thus overestimating his liquidity;
  • Incorrect the process by which Trump or his associates arrived at valuations, including deviations from generally accepted accounting principles in ways that the statements did not disclose;
  • Failed to use basic valuation techniques, such as discounting future income and expenses to their present value, or choosing as "comparable" only similar properties to impute valuations from public sales data;
  • Wrong the alleged involvement of "outside professionals" in reaching the assessments; and
  • Could not notify that certain valuation amounts were inflated with an undisclosed amount for brand value.

One allegation from James' office is that Trump has not complied with subpoenas for protocols. As an example, they claim that even though Trump did not use e-mail, they learned from witnesses that Trump kept hard copies of documents and used sticky notes to communicate with employees. They said a filing cabinet regarding Trump's records was never searched to comply with a subpoena.

"This file was never searched because the Trump organization, unlikely, determined that Mr. Trump was not involved in the preparation of his own accounts," they wrote.

James' office said the alleged misleading statements were shared with lenders, and insurers claimed that "virtually all the benefits from the misleading valuations accrued to Donald J Trump." The office also said it has evidence that Trump may have obtained more than $ 5 million in federal tax benefits from allegedly misleading valuations obtained from tax benefits taken at the New York family complex, known as Seven Springs, and the Trump National Golf Course in Los Angeles.

Since 2019, James' office has conducted a civilian investigation into the Trump organization and the accuracy of its accounts, which Trump has called a political witch hunt.

Trump is suing NY Attorney General to stop the investigation of his firm
The former president has sued James, claiming she violated his constitutional rights and asked a judge to issue a preliminary injunction blocking the investigation or removing her from it.
James' office sued Trump and his adult children for testimony in December, prompting Trump's lawyers to move earlier this month to cancel the lawsuits, claiming that the Attorney General, whose office is conducting a civil investigation and whose lawyers have joined a criminal investigation. of the Manhattan District Attorney's Office, tried to "circumvent the entire grand jury trial."

A clarification in the civil case, they wrote, "is in fact the same as a clarification from DANY, but without providing the constitutional protection that any witness provides through the grand jury trial."

Witnesses summoned to a grand jury in the state of New York are granted transaction immunity for their testimony and cannot be prosecuted unless they lie under oath. James, they argued, was trying to circumvent those rights by seeking testimony in a civil case that could then be used by criminal prosecutors. If they do not testify, a jury in a civil case can hold it against the defendant or draw a negative conclusion.

In Tuesday's filing, James' lawyers rejected the argument, arguing that Trumps could claim their fifth amendment protection against self-incrimination.

"Every witness is free to invoke their privilege in the Fifth Amendment against self-incrimination. A witness's exercise of this right in a civil inquiry (or any other civil or administrative procedure) is neither uncommon nor a denial of a constitutional right," he wrote. the lawyers. .

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