NEW YORK: With former President Donald Trump’s tax returns finally in hand, a team of New York prosecutors led by a newly hired former mob-buster is sending out fresh subpoenas and meeting face-to-face with key witnesses, scrutinizing Trump’s business practices in granular detail.
Amid the swirl of activity, the Manhattan district attorney’s office is scheduled Friday to meet again with Trump’s longtime former personal lawyer Michael Cohen, according to a person familiar with the investigation.
It would be the eighth time he has spoken with investigators working for District Attorney Cyrus R. Vance Jr., dating to Cohen’s time in federal prison for tax evasion and campaign finance violations.
The person familiar with the inquiry wasn’t authorized to speak publicly about the interview and spoke to The Associated Press on the condition of anonymity.
In a recent interview with Cohen, investigators asked questions about Trump’s Seven Springs estate as part of an inquiry into whether the value of the 213-acre Westchester County property was improperly inflated to reduce his taxes.
Investigators asked Cohen about individuals involved in the appraisal of the estate and benefits derived from its valuation, including a $21 million income tax deduction.
Cohen was released to home confinement last year amid coronavirus fears, and his recent meetings have been conducted via video conference.
Vance’s office declined to comment, as did Cohen’s lawyer, Lanny Davis. A message seeking comment was sent to the Trump Organization.
Vance announced last week that he would leave office at the end of the year and not seek reelection, but in a memo to staff, he stressed that the investigation wouldn’t stop.
“The work continues,” Vance wrote, echoing his short statement after the US Supreme Court ruled last month that he could have Trump’s tax records.
Vance recently hired former mafia prosecutor Mark Pomerantz — who, as a federal prosecutor, oversaw the prosecution of Gambino crime boss John Gotti — as a special assistant district attorney to assist in the wide-ranging probe of Trump’s finances.
The inquiry, according to court filings, includes an examination of whether Trump or his businesses lied about the value of assets to gain favorable loan terms and tax benefits. The district attorney also is scrutinizing hush-money payments paid to women on Trump’s behalf.
After a lengthy legal battle, his office is now in possession of eight years of Trump’s tax records, including final and draft versions of tax returns, source documents containing raw financial data and other financial records held by his accounting firm.
Vance’s focus on Seven Springs involves an environmental conservation arrangement Trump made in return for a tax deduction at the end of 2015, following failed attempts to turn the property into a golf course and luxury homes.
Trump granted an easement to a conservation land trust to preserve 158 acres (60 hectares) and received a $21 million income tax deduction, equal to the value of the conserved land, according to records. The amount was based on a professional appraisal that valued the full Seven Springs property at $56.5 million as of Dec. 1, 2015.
That was a much higher amount than the evaluation by local government assessors, who said the entire estate was worth $20 million. Trump bought the property, including a palatial Georgian-style mansion that once belonged to the family of newspaper publisher Katharine Graham, for $7.5 million in 1995.
In a sign of prosecutors’ deepening interest in Seven Springs, Vance’s office has sent new subpoenas in recent weeks to local governments in the towns the property spans — Bedford, North Castle and New Castle — following up on an initial round of subpoenas issued in mid-December.
Vance’s office has also subpoenaed material from people who worked on projects to develop the property for Trump, including an engineer who said his duties involved presenting plans to the local planning board.
The engineer, Ralph Mastromonaco, said Wednesday that he received Vance’s subpoena in mid-February and promptly handed over the requested documents, including records of his work on the property and correspondence with the Trump Organization.
Mastromonaco was subpoenaed for similar material in December 2019 by New York Attorney General Letitia James, who also is investigating whether Trump and his company improperly inflated the value of his assets on annual financial statements in order to secure loans and obtain tax benefits.
“I really know absolutely nothing about this whole mess,” Mastromonaco said Wednesday.
Vance’s investigators have also peppered Cohen with questions about the role that Allen Weisselberg played as chief financial officer of Trump Organization.
Weisselberg’s attorney, Mary Mulligan, declined to comment Wednesday.
But it emerged in recent days that his former daughter-in-law, Jen Weisselberg, is cooperating with both Vance’s and James’ inquiries, according to her attorney.
“She will continue to cooperate fully with the various law enforcement agencies that are investigating her ex-husband’s family and the very powerful interests they represent,” her lawyer, Duncan Levin, said in a statement to AP. “Jennifer refuses to be silenced any longer by those who are conspiring to prevent her from sharing what she has learned over the past 25 years.”
Trump probe heats up as prosecutors get hold of ex-president’s tax returns
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Trump probe heats up as prosecutors get hold of ex-president’s tax returns
- Veteran mob-buster leads team of prosecutors in scrutinizing Trump's business practices
EU leaders to reassess US ties despite Trump U-turn on Greenland
- Diplomats stressed that, although Thursday’s emergency EU talks in Brussels would now lose some of their urgency, the longer-term issue of how to handle the relationship with the US remained
BRUSSELS: EU leaders will rethink their ties with the US at an emergency summit on Thursday after Donald Trump’s threat of tariffs and even military action to acquire Greenland badly shook confidence in the transatlantic relationship, diplomats said.
Trump abruptly stepped back on Wednesday from his threat of tariffs on eight European nations, ruled out using force to take Greenland, a semi-autonomous territory of NATO ally Denmark, and suggested a deal was in sight to end the dispute.
German Chancellor Friedrich Merz, welcoming Trump’s U-turn on Greenland, urged Europeans not to be too quick to write off the transatlantic partnership.
But EU governments remain wary of another change of mind by a mercurial president who is increasingly seen as a bully that Europe will have to stand up to, and they are focused on coming up with a longer-term plan on how to deal with the United States under this administration and possibly its successors too.
“Trump crossed the Rubicon. He might do it again. There is no going back to what it was. And leaders will discuss it,” one EU diplomat said, adding that the bloc needed to move away from its heavy reliance on the US in many areas.
“We need to try to keep him (Trump) close while working on becoming more independent from the US It is a process, probably a long one,” the diplomat said.
EU RELIANCE ON US
After decades of relying on the United States for defense within the NATO alliance, the EU lacks the needed intelligence, transport, missile defense and production capabilities to defend itself against a possible Russian attack. This gives the US substantial leverage.
The US is also Europe’s biggest trading partner, making the EU vulnerable to Trump’s policies of imposing tariffs to reduce Washington’s trade deficit in goods, and, as in the case of Greenland, to achieve other goals.
“We need to discuss where the red lines are, how we deal with this bully across the Atlantic, where our strengths are,” a second EU diplomat said.
“Trump says no tariffs today, but does that mean also no tariffs tomorrow, or will he again quickly change his mind? We need to discuss what to do then,” the second diplomat said.
The EU had been considering a package of retaliatory tariffs on 93 billion euros ($108.74 billion) on US imports or anti-coercive measures if Trump had gone ahead with his own tariffs, while knowing such a step would harm Europe’s economy as well as the United States.
WHAT’S THE GREENLAND DEAL?
Several diplomats noted there were still few details of the new plan for Greenland, agreed between Trump and NATO Secretary General Mark Rutte late on Wednesday on the sidelines of the World Economic Forum in Davos, Switzerland.
“Nothing much changed. We still need to see details of the Greenland deal. We are a bit fed up with all the bullying. And we need to act on a few things: more resiliency, unity, get our things together on internal market, competitiveness. And no more accepting tariff bullying,” a third diplomat said.
Rutte told Reuters in an interview in Davos on Thursday that under the framework deal he reached with Trump the Western allies would have to step up their presence in the Arctic.
He also said talks would continue between Denmark, Greenland and the US on specific issues.
Diplomats stressed that, although Thursday’s emergency EU talks in Brussels would now lose some of their urgency, the longer-term issue of how to handle the relationship with the US remained.
“The approach of a united front in solidarity with Denmark and Greenland while focusing on de-escalation and finding an off-ramp has worked,” a fourth EU diplomat said.
“At the same time it would be good to reflect on the state of the relationship and how we want to shape this going forward, given the experiences of the past week (and year),” he said.
