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Manhattan District Attorney Cyrus Vance Jr. appears to be looking outside the boroughs for evidence of potential tax, insurance, and bank fraud by the Trump Organization. In reports this week from CNN and the Wall Street Journal, sources familiar with Vance’s probe say that his office is investigating the finances of Trump’s Chicago skyscraper and his Seven Springs estate in Westchester county in New York.

On Monday, CNN reported that the Manhattan DA had subpoenaed documents from an investment company, Fortress Investment Management, which loaned the Trump Organization $130 million in 2005 to build its tower in Chicago. By 2012, the firm forgave $102 million of that debt. Now, Vance — as well as New York State attorney general Letitia James — is investigating whether or not Trump’s business reported that forgiven amount and paid taxes on it, as it is required to do by the Internal Revenue Service.

On Tuesday, the Wall Street Journal reported that Vance had sent additional subpoenas to lawyers and engineers involved in the Trump Organization’s Seven Springs complex, where the real-estate developer failed to create a luxury subdivision in the late 1990s. Trump bought the 213-acre property in 1995 for $7.5 million. But over the years, he has valued the property as high as $291 million in statements provided to financial institutions. According to local tax-assessment rolls, however, the market value of the property is shy of $20 million.

https://nymag.com/intelligencer/2021/03/manhattan-das-probe-...

Jaak
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