New York attorney general probing whether Trump inflated his assets

NEW YORK (Reuters) – New York state’s attorney general is investigating whether the Trump Organization and Donald Trump improperly inflated the value of the U.S. president’s assets on annual financial statements in order to secure loans and obtain economic and tax benefits, according to a court filing.

The disclosure was made in a filing on Monday with a New York state court in Manhattan, where the office of Attorney General Letitia James wants to compel the Trump Organization, Donald Trump’s son Eric, and several other defendants to comply with subpoenas it issued.

According to the filing, the subpoenas were issued as part of the attorney general’s “ongoing confidential civil investigation into potential fraud or illegality.”

Lawyers for the Trump Organization and Eric Trump did not immediately respond to a request for comment.

One particular focus is the Seven Springs Estate, a 212-acre (85.8 hectares) property in northern Westchester County, north of New York City.

James’ office said valuations of the property were used to claim an apparent $21.1 million tax deduction in the 2015 tax year, and in submissions to financial institutions as a component of Donald Trump’s net worth.

According to James’ office, the Trump Organization and others have already produced “significant amounts” of material responsive to the subpoenas, but the parties have reached an “impasse” on some issues.

It also said there has been no determination regarding whether any laws were broken.

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