AG James issues subpoena to question Trump under oath in land deal

ALBANY — State Attorney General Letitia James has issued a subpoena that seeks to question former President Donald Trump on Jan. 7 in her continuing investigation of possible fraud by the Trump Organization, according to a person familiar with the case.

James' subpoena could require Trump to testify under oath, according to the person, who said if James finds wrongdoing by Trump, she could file a lawsuit against the former Republican president.

James has been investigating whether the Trump Organization headed by Trump improperly received a $21 million tax deduction based on a Westchester County property owned by the development company.

The Trump Organization called James’ action " a political witch-hunt" in a statement Thursday to The Washington Post.

"The only focus of the New York AG is to investigate Trump, all for her own political ambitions. … This political prosecution is illegal, unethical and is a travesty to our great state and legal system," the Trump Organization said.

The plans came to light on the same morning that James, a Democrat, ended her campaign for governor.

James’ effort regarding Trump comes as Manhattan District Attorney Cyrus Vance continues his criminal probe of the Trump Organization and whether it committed criminal fraud by using false values on property used as collateral for loans, according to The New York Times.

There was no immediate comment from James or the Trump Organization Thursday.

In May, James’ office confirmed it was conducting a criminal investigation into Trump’s business empire, expanding what had previously been a civil probe into a possible criminal investigation of manipulation of property values for tax and loan benefits.

James has been investigating whether the Trump Organization inflated values on the Westchester property to secure a lower interest rate on a loan, but then lowered the value of the property to reduce taxes paid on the property.

"We have informed the Trump Organization that our investigation into the organization is no longer purely civil in nature," James’ spokesman Fabien Levy said in May. "We are now actively investigating the Trump Organization in a criminal capacity."

James is working with Vance on his criminal investigation.

Vance, a Democrat, has been investigating Trump for two years on the potential improper valuation of property as well as potential bank and tax fraud.

In his case, Vance won a court order to obtain eight years’ worth of the former president’s tax returns that Trump had refused to make public before and he was elected President in 2016.

By Michael Gormley

michael.gormley@newsday.com@GormleyAlbany

Michael Gormley has worked for Newsday since 2013, covering state government, politics and issues. He has covered Albany since 2001.