A judge ruled that
The ruling Monday, which includes a $10,000-a-day fine until the former president produces the documents, came after a hearing in which Trump’s lawyer argued there were no records beyond what her client has given New York Attorney General Letitia James.
During the hearing, a lawyer for James told the court that New York is likely to bring an enforcement action against Trump’s company “in the near future.” The state had asked that Trump be held in contempt and incur the fine for missing a March 31 deadline to respond to subpoenas for records.
The contempt finding by New York state court judge Arthur Engoron adds pressure to Trump as James seeks to wrap up a probe into whether the Trump Organization used fraudulent asset valuations to get better terms on loans and insurance coverage, as well as millions of dollars in tax refunds for donated land. Trump and two of his adult children are fighting a separate battle with James over whether they should be forced to sit for sworn depositions.
James has said the investigation has already uncovered “significant” evidence that misleading valuations on some of Trump’s biggest properties have been used in financial statements relied upon by banks and insurers.
“For years, Donald Trump has tried to evade the law and stop our lawful investigation into him and his company’s financial dealings,” she said in a statement after the ruling. “Today’s ruling makes clear: No one is above the law.”
Trump’s lawyer,
“We respectfully disagree with the court’s decision today,” Habba said, adding that the only legitimate issue was that her affidavit outlining her search of Trump’s records wasn’t sufficient.
“This does not even come close to meeting the standard on a motion for contempt,” she said.
‘800-pound gorilla’
During the hearing, Engoron called the lack of an affidavit from Trump confirming he has no more records responsive to the subpoenas the “800-pound gorilla in the room.”
Habba said she would be willing to amend a response she filed with the court to affirm that she personally searched filing cabinets outside her client’s office at Trump Tower, reviewed records stored in closets and off-site and interviewed him about the records in person in Florida. She said all the records have been turned over.
“President Trump does not email, he does not text-message and he has no work computer at home or anywhere else,” Habba said.
“Why don’t we have an affidavit from him?” the judge pressed Habba. “You flew down to make sure he didn’t have anything else. Why don’t we have an affidavit from him?”
‘Honest person’
Habba said Trump would sign such an affidavit if she asked him to.
“How do you know that he will swear to that under oath?” the judge asked.
“My client is an honest person, much to the dismay of some of the people in this room,” Habba said.
The AG’s attorney didn’t give any details about what kind of enforcement action the state might bring or when it might be filed. He indicated that the investigation could continue even after the potential action is filed, given the nature of the transactions being probed.
The case is New York v. Trump Organization, 451685/2020; appeal over depositions is 2022-00814; Supreme Court of the State of New York Appellate Division First Department (Manhattan).
