By Ellen Cans
Former President Donald Trump remains at the center of attention, as New York prosecutors will extend their probe to Trump’s signature Manhattan properties and the financing he obtained on the deals.
As reported by the Wall Street Journal, Manhattan prosecutors will investigate loans extended to Mr. Trump and his company for the flagship 58-story Trump Tower building on Fifth Avenue; 40 Wall St., the 71-story skyscraper in the Financial District; Trump International Hotel and Tower at Columbus Circle; and Trump Plaza, the residential building on the East Side of Manhattan. Prosecutors are also examining Trump’s property at Seven Springs, a 213-acre Westchester, N.Y., estate, in addition to the Manhattan assets.
The loans being scrutinized are all from subsidiaries of Ladder Capital Corp., a New York City-based real-estate investment trust, sources told the WSJ. In all, Ladder Capital has extended over $280 million in credit to Mr. Trump for the four Manhattan buildings since 2012, as per property records. It is not exactly known what prosecutors will use the loan info for, however legal experts are guessing that prosecutors may be searching for discrepancies between loan documents versus other financial documents submitted by Mr. Trump elsewhere, including on tax returns or insurance documents. If inconsistencies exist, the Manhattan district attorney’s office would be in luck, as it is against NY law to submit false info on a loan application.
Mr. Trump’s Manhattan properties became the subject of scrutiny, as Manhattan District Attorney Cyrus Vance Jr., a Democrat, has been stuck in a legal limbo trying to obtain Trump’s tax returns and other financial information. In July, the U.S. Supreme Court ordered Mr. Trump to release the records, but Mr. Trump appealed, and the high court has yet to respond as to whether it will take the case.
Also, New York Attorney General Letitia James’ office has said that it will be conducting its own civil-fraud investigation for Trump properties including 40 Wall St. and the Seven Springs estate.
Mr. Trump has said that the DA’s investigation is nothing more than a partisan “witch hunt”. Similarly, his lawyers have called it a “fishing expedition”. The Trump Organization has also said the AG’s investigation is just a political move.
Ladder typically makes loans, later selling the debt to other investors as commercial mortgage-backed securities. As per the WSJ, Jack Weisselberg, an employee at Ladder, is the son of Trump Organization CFO Allen Weisselberg. Neither he nor his son have been accused of any wrongdoing.
Lawyers for Mr. Trump and the Trump Organization declined to comment, as did the Manhattan DA’s office.