NY attorney general rejected settlement offer from Trump Organization

The AG has accused Trump of overvaluing his assets to get loans and tax breaks.

September 15, 2022, 4:54 PM

The New York attorney general's office rejected an offer this month to resolve a civil investigation into former President Donald Trump and his family real estate business, sources familiar with the matter tell ABC News.

For more than three years, New York Attorney General Letitia James has been investigating whether Trump fraudulently adjusted the value of his assets to secure loans or tax breaks.

James had already said in court filings she has found evidence of possible fraud. The rejection of the Trump Organization's settlement offer is a possible sign she intends to file a civil lawsuit which, if successful, could result in financial penalties or restrictions on the company's ability to operate in New York.

A spokesperson for the AG's declined to comment. The Trump Organization did not respond to a request for comment by ABC News.

PHOTO: The public entrance to Trump Tower stands on Fifth Avenue in Midtown Manhattan, New York, Sept. 22, 2017.
The public entrance to Trump Tower stands on Fifth Avenue in Midtown Manhattan, New York, Sept. 22, 2017.
Robert Alexander/Getty Images, FILE

News of the rejected settlement offer was first reported by The New York Times.

Trump, who has denied wrongdoing, has called the investigation a politically motivated witch hunt. He repeatedly invoked his Fifth Amendment right against self-incrimination during a deposition last month in James' office.

In a January court filing, James accused Trump of misstating objective facts, overstating his liquidity, and failing to use fundamental techniques of asset valuation. The filing mentioned financial statements associated with seven different Trump properties, including 40 Wall Street, the apartment in Trump Tower on Fifth Avenue, and golf clubs in Scotland and in Westchester County, New York.

Last month, in a separate case, longtime Trump Organization CFO Allen Weisselberg pleaded guilty to charges of running a yearslong scheme to avoid paying taxes on nearly $2 million in income, including fringe benefits like rent, luxury cars and private school tuition for his grandchildren.

He also agreed to testify against the Trump Organization when the company goes on trial in connection with the alleged compensation scheme beginning in October. The plea agreement contains no requirement for him to cooperate in the related criminal case against Trump himself.

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