Washington (CNN) — The New York authorities investigating the Trump Organization have expanded their inquiries to include tax cancellations involving millions of dollars in consulting fees, according to people familiar with the investigation.
Investigators with the Manhattan district attorney’s office, which is conducting an extensive criminal investigation, and the New York attorney general’s office, which has an ongoing civil investigation, have subpoenaed the Trump Organization in search of related records. with consulting fees.
The subpoenas were in response to a New York Times investigation into President Donald Trump’s tax returns that first revealed that he took $ 26 million in cancellations that came from the fees he paid to consultants, including an apparent US fee. $ 747,000 that, according to the newspaper, coincided with a payment revealed by Trump’s daughter, Ivanka Trump.
The New York Times reported for the first time that the subpoenas had been sent. There is no suggestion that Ivanka Trump has incorrectly accounted for the payment. Representatives for the Manhattan district attorney, the New York attorney general and the Trump Organization declined to comment.
Ivanka Trump’s Tax Response
Ivanka Trump reacted to the newspaper’s story Thursday night with a tweet: “This is outright harassment. This ‘investigation’ of the New York Democrats is 100% motivated by politics, publicity and anger. They know very well that there is nothing here and that there was no tax benefit. These politicians are simply ruthless.
Alan Garten, general counsel for the Trump Organization, told the newspaper: “Everything was done in strict compliance with applicable law and under the advice of lawyers and tax experts.” He added: “All applicable taxes were paid and neither party received any undue benefits.”
The New York investigations are the most serious Trump will face when he leaves office and becomes a private citizen.
The district attorney has been in a year-long battle over a subpoena for the president’s tax returns. The Supreme Court is expected to rule on the matter soon. That investigation is wide-ranging, and prosecutors have suggested in court documents that it could include anything from insurance fraud, tax fraud, or fraud schemes, the equivalent of a federal bank fraud charge.
The New York attorney general’s investigation focuses on whether the Trump Organization or Trump himself improperly inflated the value of certain assets in violation of tax laws or by seeking loans and the forgiveness of a $ 100 million loan. They have identified at least four Trump properties that are under scrutiny.
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