Fraud Inquiry Increases Pressure on Donald Trump and His Company

Fraud Inquiry Increases Pressure on Donald Trump and His Company 2

Donald Trump’s Company – and Donald Trump personally – has been delivered yet another blow after a New York judge has ordered the production of documents relating to the potential misstatement of assets in order to secure loans and tax benefits.

The same judge, Arthur Engoron of the State Supreme Court in Manhattan, had earlier order The Trump Organization to produce records relating to a large Westchester Country property that TTO’s lawyers had attempted to shield.

Justice Engoron had ordered that both documents and communications with tax firm Morgan, Lewis & Bockius be turned over to the New York Attorney General.

The Trump Organization has previously argued that the documents are protected by attorney-client privilege, but in December, Justice Engoron ruled that “some but all” of the documents requested by the attorney general’s office were privileged.

As the NY Times reported – “The ruling was a fresh reminder that Mr. Trump — who left office about a week ago under the cloud of impeachment and is headed for a Senate trial on a charge of “incitement of insurrection” after his supporters stormed the Capitol in a violent rampage — faces significant legal jeopardy as a private citizen.”

The major threat Trump faces is a criminal investigtaion and civil inquiry into possible fraud in his business dealings prior to his controversial election to the most powerful role in the world.

The investigation, which began in March 2019 and followed the claims by former Trump lawyer Michael Cohen that his client had inflated asset values to secure bank loans and understated them to reduce his tax liability.

An analysis of Mr. Trump’s financial records by The New York Times found that he had avoided federal income tax on almost all of the forgiven debt.

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