President Trump’s Seven Springs estate in Mount Kisco, New York, seen here Sept. 30, 2020.
Johnny Milano | The Washington Post | Getty Images
The Manhattan District Attorney’s office has expanded its criminal probe of President Donald Trump’s company to include a sprawling property in Westchester County, New York.
A lawyer for the town of Bedford, N.Y., told CNBC that DA Cyrus Vance Jr.’s office issued a subpeona to the town for records related to the Trump Organization’s Seven Springs Estate site sometime “before Christmas” as part of a criminal investigation.
The company’s valuation of Seven Springs for a number of months has been the focus of a civil fraud investigation by the New York Attorney General’s office.
AG Letitia James has said she is probing whether Trump’s company fradulently inflated the value of Seven Springs on annual financial statements used to obtain loans, as well as to get economic and tax benefits.
Vance’s office already was known to be investigating hush money payments made to women who said they had sex with Trump, as well as possible tax fraud, and bank and insurance fraud.
Bedford’s lawyer, Joel Sachs, said he believed that in addition to Bedford, the towns of New Castle and North Castle also had records subpoeaned by Vance’s office for the criminal probe, because the proprerty spans all three towns.
CNBC has reached out for comment to officials for New Castle and North Castle.
Vance spokesman Danny Frost declined to comment Friday when contacted by CNBC.
A Trump Organization spokeswoman did not immediately respond to a request for comment.
Trump’s former personal lawyer Michael Cohen testified to Congress in 2019 that the president’s annual financial statement inflated to the values of his assets to obtain favorable terms for loans and insurance coverage, while deflating the value of other assets in order to reduce real estate taxes due on them.
AG James’ office in a court filing related to her probe noted that, “Valuations of Seven Springs were used to claim an apparent $21.1 million tax deduction for donating a conservation easement on the property in tax year 2015, and in submissions to financial institutions as a component of Mr. Trump’s net worth.”
The Wall Street Journal first reported the expansion of Vance’s investigation to include Seven Springs.
Trump was impeached for the second time Wednesday by the House of Representatives. He is accused in that proceeding of inciting a mob of supporters who rioted at the U.S Capitol, distrupting the confirmation by a joint session of Congress of the election of Joe Biden as the next president.
Biden is due to be sworn into office next Wednesday.
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