Manhattan DA expands probe on Seven Springs Property

The Manhattan Attorney’s Office has expanded its criminal investigation into President Donald Trump’s company to include a sprawling property in Westchester County, New York.

A Bedford, NY city attorney told CNBC that sometime “before Christmas” the city’s office issued a subpeona for records of the Trump Organization’s Seven Springs Estate as part of a criminal investigation.

Bedford’s attorney Joel Sachs said he believed the towns of New Castle and North Castle, in addition to Bedford, had records cited from Vance’s office for criminal investigation, as the 213-acre property spans all three towns.

The company’s multi-month evaluation of Seven Springs was the focus of a civil fraud investigation by the New York Attorney General.

AG Letitia James said she was looking to see if Trump’s company had dramatically increased the value of Seven Springs in financial statements, which was used to provide credit as well as economic and tax benefits. Trump bought the property in 1996 for only $ 7.5 million. In 2012, he valued the property at a whopping $ 291 million.

Vance’s office was previously known to be investigating hush money payments to women who claimed to have sex with Trump, as well as possible tax, banking, and insurance fraud. Trump has denied having sex with the women, porn star Stormy Daniels and Playboy model Karen McDougal.

Trump has asked the U.S. Supreme Court to block a subpoena for his accountants’ longstanding tax and financial filings issued by a Manhattan grand jury acting at Vance’s request. The Supreme Court has yet to decide whether it will hear Trump’s appeal against court rulings that Mazars USA must submit these documents.

On Friday, The Associated Press reported that investigators in Vance’s office interviewed Trump’s former private attorney Michael Cohen for hours on Thursday, asking him about the president’s business dealings, focusing on his relationship with Deutsche Bank, Trump’s largest lender.

Cohen told Congress in 2019 that the president’s financial statements were increased to the values ​​of his assets to get favorable terms on loans and insurance coverage, while the value of other assets was decreased to lower real estate taxes due on them.

New Castle Town supervisor Ivy Pool declined to comment when contacted by CNBC. North Castle officials did not immediately respond to a request for comment.

Vance spokesman Danny Frost declined to comment.

A Trump Organization spokeswoman did not immediately respond to a request for comment.

The Wall Street Journal first reported the expansion of Vance’s investigation to Seven Springs.

AG James’s office in a lawsuit related to their investigation found that “Valuations of Seven Springs was used to obtain an apparent tax deduction of $ 21.1 million for a property conservation donation for the 2015 tax year and for Filings with financial institutions to be requested as part of Mr. Trump’s fortune. “

James’ probe is also monitoring the rating of other Trump on 40 Wall Street in Manhattan, the Trump Internaional Hotel and Tower Chicago, and the Trump National Golf Club in Los Angeles.

Eric Trump, the son of the President and Executive Vice President of the Trump Organization, was forced to answer questions from James’ investigators for their investigation last fall after failing to convince a judge to postpone his testimony until the presidential election his father had lost to Joe Biden.

Eric Trump ran the Trump organization with his brother Donald Trump Jr. while their father served as president.

Donald Trump was indicted for the second time by the House of Representatives on Wednesday.

He is accused in this trial of inciting a crowd of supporters to get upset in the US Capitol, which disrupts the confirmation by a joint session of Congress of Biden’s election. Five people, including a Capitol policeman who was killed by the crowd, died as a result of the incident.

Biden is due to take up office next Wednesday.

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