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| Photo Credit: AP. |
New York Attorney General’s office has rejected a real estate settlement offer proposed by lawyers of former President Donald Trump as they sought to bring an end to civil investigation into the Trump’s family real estate business, making it most likely Mr. Trump may be sued for fraud, The New York Times quoted three people familiar with the matter.
Attorney
General Letitia James, according to The New York Times is also considering
suing at least one of Mr. Trump’s adult children, according to the anonymous
sources. Ivanka, Eric and Donald Trump Jr.
James has
been investigating the business mogul over allegations he may have fraudulently
obtained tax deductions and other business favors.
Did the Trump Organization misstate value of assets?
The attorney
general launched a civil investigation into allegations that Trump’s company,
the Trump Organization, misstated the value of prized assets like golf courses
and skyscrapers, misleading lenders and tax authorities, The Associated Press
reports.
In May,
James’ office said it was concluding its probe, adding investigators had
amassed “substantial evidence” that could support legal action such as a
lawsuit, against Trump, and his company or both, according to The Associated
Press.
Donald Jr.
and Ivanka, Trump’s two adult children earlier testified in a disposition in
New York, two people familiar with the matter told The Associated Press.
The people
familiar with matter told The New York Times that the chances of a lawsuit grew
after Ms. James’s office rejected at least one settlement offer from Mr.
Trump’s lawyers.
Next month
the Trump Organization will go on trial for criminal tax charges in Manhattan,
and could expose the company’s financial under dealings, according to The New
York Times.
Weisselberg pleaded guilty to financial fraud charges
Trump’s top
executive last month agreed to testify against the company in plea bargain
after pleading guilty for tax evasion on a free apartment, according to The
Associated Press.
Allen
Weisselberg, 75, a former longtime chief financial officer and a senior Trump
Organization adviser pleaded guilty to all 15 of the charges brought against
him in the case, The Associated Press reported.
Weisselberg
admitted taking in over $1.7 million worth of untaxed extras – including school
tuition for his grandchildren, a free rent for a Manhattan apartment and lease
payments for a luxury car as well as keeping some of the records off the books,
according to The Associated Press.
Mr. Trump
moved to Florida after leaving the White House, but his company remains headquartered
at Trump Tower in Midtown Manhattan. The company also owns or manages an array
of properties in New York: a hotel overlooking Central Park, three golf clubs
and several commercial real estate and residential towers.
The investigation into the Trump Organization began after Trump’s former personal lawyer Michael D. Cohen testified to Congress that Mr. Trump and his employees had manipulated his net worth to suit his interests, The New York Times reported.