The Manhattan district attorney’s office suggested on Monday that it has been investigating President Trump and his company for possible bank and insurance fraud, according to The New York Times.
The documents sought by Manhattan District Attorney Cyrus Vance indicate a “significantly broader inquiry than the prosecutors have acknowledged in the past,” the newspaper noted.
The new federal court filing argues that Trump’s accountants should have to comply with its subpoena seeking eight years of his personal and corporate tax returns. Trump has asked a judge to declare the subpoena invalid.
“The prosecutors did not directly identify the focus of their inquiry but said that “undisputed” news reports last year about Mr. Trump’s business practices make it clear that the office had a legal basis for the subpoena,” the Times reports.
“The reports, including investigations into the president’s wealth and an article on the congressional testimony of his former lawyer and fixer, Michael D. Cohen, said that the president may have illegally inflated his net worth and the value of his properties to lenders and insurer,” said the Times. “Lawyers for Mr. Trump have said he did nothing wrong.”
The filing comes less than a month after the Supreme Court cleared the way for Mr. Vance’s prosecutors to seek Trump’s financial records.
“Vance’s office subpoenaed Mr. Trump’s accounting firm, Mazars USA, in August 2019 for the tax returns as part of its investigation, which until now was believed to be focused on hush-money payments made to two women who said they had affairs with Mr. Trump, including the adult film actress Stormy Daniels,” the Times reports.
Cohen arranged the payments to Daniels and the other woman, Karen McDougal. Vance’s office has been looking into whether any New York State laws were broken when those hush payments were made.
Here's his memorandum of law in support. https://t.co/forlwEa2AW
— Andrew Feinberg (@AndrewFeinberg) August 3, 2020