According to reports first published, Carey R. Dunne and Mark F. Pomerantz, the Manhattan prosecutors leading an investigation into former President Donald Trump's business dealings for signs of fraud, resigned Wednesday after the incoming District Attorney told them he had doubts about the case.
Donald Trump spoke at a rally at the Canyon Moon Ranch festival grounds.
Without Bragg's commitment to pursue the case, Dunne and Pomerantz postponed plans to question witnesses before a grand jury, effectively stopping an investigation into whether the Trump Organization strategically misstated the value of some of its assets, the Times reported.
The grand jury was paused for a month after the resignations.
The Manhattan District Attorney's Office did not respond to the request for comment.
The Manhattan District Attorney subpoenaed eight years of Trump's tax returns from Mazars in what was thought to be an investigation into Stormy Daniels. By August 2020, the office of Vance signaled a possible broader inquiry into financial fraud. The Trump Organization and its former CFO Allen Weisselberg were indicted by a Manhattan grand jury for a 15-year tax evasion scheme that paid out company executives $1.7 million in untaxed money. Weisselberg could be sentenced to up to 15 years in prison if the company is found guilty. The investigation shifted from tax evasion to whether Trump inflated or deflated his assets. In February, Mazars cut ties with Trump, stating in a letter to the Trump Organization that financial statements prepared for the former president between 2011 and 2020 should no longer be relied upon.
The Manhattan District Attorney's Office has filed 15 felony charges against the Trump Organization and Weisselberg, but has yet to file any charges against the president.
The New York Attorney General accused the Trump Organization of using fraudulent or misleading valuations to obtain loans, insurance coverage and tax deductions. James suggested that Donald Trump Jr. and his sister-in-law could be compelled to testify in the investigation.
It was my experience that Mr. Trump inflated his total assets when it served his purposes, such as trying to be listed amongst the wealthiest people in Forbes, and deflated his assets to reduce his real estate taxes, according to Michael Cohen.
Trump has filed a lawsuit to stop James from investigating him, claiming that it violates his civil rights. In a February 20 statement, Trump claimed the Trump Organization was flush with high-value assets and had little debt, and blamed his break with Mazars to alleged abuse and harassment by prosecutors.
Prosecutors Leading N.Y. Trump Inquiry Resign, Clouding Case.
Significant Evidence: New York Attorney General Alleges Trump Organization Misstated Value of Assets for Economic Gain.
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