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Trump Probe Finds 'Significant Evidence' of Fraud, New York AG Says

New York State Attorney General is seeking to question the former president and his two children.
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New York State Attorney General Letitia James said that her office's investigation Donald Trump's family business has found "significant evidence" that former president's company engaged in "fraudulent or misleading behavior."

The revelation comes as James is seeking to question Donald Trump and his two children, Donald Trump, Jr., and Ivanka Trump.

The attorney general's office issued subpoenas for the three in December.

James filed a motion to compel their testimony late Tuesday after the Trumps sought to quash the subpoenas. 

Trump has called the investigation "a partisan witch hunt."

 Delay Tactics and Litigation

Trump's other son, Eric Trump, testified under oath last year and since that time James' office said "it has collected significant additional evidence indicating that the Trump Organization used fraudulent or misleading asset valuations to obtain a host of economic benefits, including loans, insurance coverage, and tax deductions."

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The attorney general's office said in a statement that while it has not yet decided if it will pursue legal action, "the grounds for pursuing the investigation are self-evident."

“For more than two years, the Trump Organization has used delay tactics and litigation in an attempt to thwart a legitimate investigation into its financial dealings," James said in a statement. "The Trumps must comply with our lawful subpoenas for documents and testimony because no one in this country can pick and choose if and how the law applies to them." 

In the filing, James' office addresses what it calls misleading statements regarding at least six Trump properties, including 40 Wall Street, where the Trump Organization owns a “ground lease," where it holds a leasehold interest in the land and buildings on the land, but pays rent to the owner. 

'Defrauded New Yorkers'

An appraisal by the firm Cushman & Wakefield valued the building at $550 million, the filing said, while Trump’s financial statements valued the building at $735.4 million.

"The only one misleading the public is Letitia James," a spokesperson for the Trump Organization said in a statement "She defrauded New Yorkers by basing her entire candidacy on a promise to get Trump at all costs without having seen a shred of evidence and in violation of every conceivable ethical rule. Three years later she is now faced with the stark reality that she has no case. "

James is spearheading a civil investigation. Manhattan District Attorney Alvin Bragg is conducting a criminal probe of some of the same conduct.