New York Prosecutors Put a Spotlight on Trump’s Flagship Properties

Mish

Trump survived impeachment albeit with heavy criticism from some Republicans. The spotlight is now on Trump's financial deals.

Spotlight on Trump's Flagship Properties

New York prosecutors are Investigating Loans Trump Took on Four Buildings, including his flagship Trump Tower. 

Manhattan prosecutors are examining loans Mr. Trump took out on his flagship Fifth Avenue building, Trump Tower; 40 Wall St., an art deco skyscraper in New York City’s Financial District; Trump International Hotel and Tower, a hotel and condominium building at Columbus Circle; and Trump Plaza, an apartment building on Manhattan’s East Side. 

All of the loans under scrutiny were made to Mr. Trump by subsidiaries of Ladder Capital Corp. a New York City-based real-estate investment trust, the people said. Since 2012, Ladder Capital has lent Mr. Trump more than $280 million for the four Manhattan buildings, according to property records.

Lawyers for Mr. Trump and the Trump Organization declined to comment. Mr. Trump has called the probe a partisan “witch hunt” led by Manhattan District Attorney Cyrus Vance Jr. , a Democrat.

While the focus of prosecutors’ interest in Mr. Trump’s properties and loans isn’t known, they could be looking for discrepancies between loan documents and financial information submitted elsewhere by Mr. Trump, such as that on tax returns or submitted to an insurance company, legal experts said. Writing false information on a loan application with the intention of getting financial benefits one isn’t entitled to can be a crime under New York law, according to legal experts.

Seven Springs Estate Subpoena

In addition to scrutiny on Trump Towers, Manhattan Prosecutors Subpoena Records About Trump’s Seven Springs Estate.

Manhattan prosecutors have subpoenaed records relating to President Trump’s sprawling Seven Springs estate north of New York City, according to people familiar with the matter, expanding the known scope of the only publicly disclosed criminal investigation into the president and his business.

Some of the information requested by Manhattan prosecutors relates to the president’s valuation of Seven Springs, which he bought for $7.5 million in 1995 and in 2012 said was worth almost $300 million as he tried to develop it into a luxury residential community. Inflating assets to help secure loans or other financial benefits can be a state criminal offense, legal experts said.

An appraisal prepared by real-estate services firm Cushman & Wakefield and sent to Mr. Trump in 2016 valued the property at $56.5 million based on what the appraisers cited as its development potential. 

The Trump Organization spent about two decades unsuccessfully attempting to develop Seven Springs. The company first attempted to build a golf course on the property, but dropped its plans after opposition from local residents. It then spent years working to gain approvals for a subdivision of luxury homes.

Manhattan prosecutors are also examining whether Mr. Trump improperly classified the property on tax documents, according to a person familiar with the matter. The New York Times reported that in 2014, Mr. Trump classified Seven Springs as an investment property, which allows for certain tax benefits, instead of a personal residence. The Trump Organization website says the estate is used as a retreat for the Trump family.

Prosecutors from Mr. Vance’s office have previously sought information from the president’s longtime lender, Deutsche Bank AG , and his insurance broker, Aon PLC. A spokeswoman for Aon confirmed the firm had received a subpoena. Prosecutors have also subpoenaed Deutsche Bank and interviewed firm employees, according to a person familiar with the matter.

Just a Start of Trump's Legal Problems

This was expected in many corners including mine. 

And it is just a start of what is to come. 

As noted on February 11, A Criminal Investigation of Trump's Attempt to Influence the 2020 Election Has Begun.

It's hard to run a campaign from the courthouse. 

It's even harder to run one from prison.

Mish

Comments (67)
No. 1-21
TexasTim65
TexasTim65

He may be convicted of some of these charges.

But he will never do prison time.

For one thing he'll appeal endlessly until he's dead, he wins or they give up. After a while you are wasting tax payers money unless there is certainty of regaining what was spent plus any fines they'd levy (and he's probably got so much wealth tied into so many different companies like all rich people that he'd just declare bankruptcy again and lose next to nothing).

As for jail, as a former president with secret service detail for life it would be impossible to put in behind bars (because of what he knows about state security and the target he would be) unless it would be like Rudolph Hess in his own private prison (ie house arrest in Mar Largo).

Sechel
Sechel

Trump is dead. He just won't lie down

Doug78
Doug78

Stupid is as stupid does.

goldguy
goldguy

get over your hate for trump, all you are doing is hurting yourself.

Doug78
Doug78

This is not a scoop and is about an expected thing as expected things go. It's a good example of what Matt Taibbi calls Ponzi journalism.

Onni4me
Onni4me

"Writing false information on a loan application with the intention of getting financial benefits one isn’t entitled to can be a crime under New York law, according to legal experts." There were cited two cases of "can-bes". It can be a crime and when the prosecutor is a Democrat (sic!) than it certainly can be.

I am really disappointed following this charade from faraway. And even more disappointed in you Mish. Now you are stating that Trump should be thrown in jail. Similarly, seen what the Clintons did and some previous presidents, that would not be a singular case, would it?

I will stop following your site when so strong bias shows. I'm neither supporter or hater of Mr. Trump but enough of this BS is just that. Enough.

Sechel
Sechel

One has to understand Trump never really organized his business as a corporation. It' a mall family controlled business with just a few trusted lieutenants entrusted with knowing and executing closely guarded secrets. In many ways it resembles an organized crime enterprise. In fact Trump's early mentor was Roy Cohn and he's brought in unsavory characters like Keith Schiller into the fold. If this were a public company with a real board with checks and balances all this would have come out years ago.

Irondoor
Irondoor

I am always amused when a piece of real property becomes a “sprawling” estate. Guess it depends on where it is and who owns it. And maybe the level of jealousy and bitterness of the writer.

numike
numike

‘No man is rich enough to buy back his own past.’ –Oscar Wilde

Greenmountain
Greenmountain

Trump has skirted the law his entire life - not sure why he has never been taken on before, but his antics have caused real pain and losses for individuals. Regardless of how you feel about him, it is a time for someone to pull back the curtain. Agree he is not likely to go to prison, but it will cost him money. He may not be able to afford as many houses. And maybe his kids will have to get real jobs.

Greenacr
Greenacr

Mish - You seem to advocate a get Trump at all costs. Yet for those on the other side of the political aisle you are hands off. Perhaps the death penalty should be used in DJT case?

KidHorn
KidHorn

If the DOJ starts prosecuting based on exaggerated values on loan applications, then millions of Americans will be tried. Particularly since it's common practice for the lender to determine the value of collateral. Try getting a home loan without an appraisal.

Doug78
Doug78

It's domestic Lawfare. Ruin someone through successive lawsuits not designed to win but to cause them to use up his resources. Unscrupulous companies use it extensively to prevent potential competitors from emerging for example. If you want to make him more popular then by all means go ahead. Get Michael Avenatti to do it. Democrat leadership is comfortable with him and is one of their own.

Realist
Realist

Another fine example of cultism in America today. Mish suggests that Trump will be (note he did not say should be) prosecuted for the alleged crimes he committed, which will likely hurt his political comeback chances. And the cult members come out of the woodwork to bash Mish and defend Trump, demonstrating once again how much kool-aid they have consumed. Their responses are always the same:

Trump did not commit any crimes.

If he did commit crimes, they are very minor crimes.

What Trump did was okay because lots of other people do the same things all the time.

Democrats do much worse than this all the time.

Its all a Witch hunt by (Democrats, or deep state, or banksters, or ...)

And my personal favourite: I am not going to follow Mish anymore because he hates my cult messiah.

rhcaldwell
rhcaldwell

I’m curious to see how quickly those who’ve been benefitting from all the same illegal tricks and evasions as Trump likely has will move to shut down any and all further investigation into his business dealings. Money will change hands through legions of super PACs, prosecutorial arms will be twisted, committee chairs will be leaned on. Maybe Trump dies suddenly from a “heart attack”, gone like Epstein — poof! “Move along folks, nothing to see here...”

Don’t misunderstand me; I’d be happy to watch Trump be tried and convicted on every count. I just think there’s too much risk for too many wealthy people for them to allow these investigations to go forward. The smart money buys cutouts on both sides of the aisle. And keeps its activities quiet. Trump is just the dumb one who thought he could actually go into politics himself. Trump’s big mouth will do him in. But no one will want to go down with him.

Pass the popcorn...

Eddie_T
Eddie_T

I suspect the statute of limitations has run out on Trump’s biggest crimes, which are related to laundering money for Russian oligarchs in the 90’s....

I’m sure he’s cut corners and has done things that might be illegal, but I doubt he’ll do any time....and he’s used to legal fights....he’s been using the courts successfully to advance his cause for his entire career.

I’m not surprised that Trump supporters are still showing up here, but what’s with all the foreign trolls? The election is over Vlad....give it a rest.

FromBrussels
FromBrussels

WOW, banks in the US of A are fckn GREAT , aren t they ? By simply 'stating' your 1 mln property is worth 50 million you can take out a mortgage on the 50 mln ? Aren t american lenders supposed to check the value of the collateral then ? How lenient ! ....or is this all political(democrats) conniving again ?

Louis Winthorpe III
Louis Winthorpe III

Looks like the Trump fan cancel culture brigade is out in force.

This is Trump's GOP: toe the line or else. Just another form of political intimidation.

Mish
Mish

Editor

In case anyone missed my replies, this is a real hoot. Three days ago I was accused of being a "Typical Trump Supporter" for blasting Hillary.

Six000mileyear
Six000mileyear

The problem with investigating Trump is the potential of exposing Democrats who used the same business and tax strategies. The leadership of both parties really belong to the same party: Kleptocrats.


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