By Luc Cohen and Karen Freifeld
(Reuters) – A New York state judge heard arguments on Monday on whether former President Donald Trump should be held in contempt of court for not producing documents subpoenaed in a probe of his business practices.
Trump lost a bid to quash a subpoena from the New York attorney general, then failed to produce all the documents by a court-ordered March 3 deadline, later extended to March 31 at his lawyers’ request.
Trump and two of his adult children, Ivanka Trump and Donald Trump Jr., also were subpoenaed and ordered to provide testimony to the attorney general. An appeal is pending for the testimony, but the former president agreed to comply with the subpoena’s document demands.
New York state Attorney General Letitia James is investigating whether the Trump Organization, the former president’s New York City-based family company, misstated the values of its real estate properties to obtain favorable loans and tax deductions.
James has said her probe had found “significant evidence” suggesting that for more than a decade the company’s financial statements “relied on misleading asset valuations and other misrepresentations to secure economic benefits.”
In a hearing on Monday before Justice Arthur Engoron in New York state court in Manhattan, Kevin Wallace of the attorney general’s office acknowledged that while his office was able to obtain some documents by agreement, there were “significant gaps” in the Trump Organization’s compliance.
“It’s been (like) pulling teeth to get documents,” in some instances, Wallace said.
James asked that Trump be fined $10,000 a day, and perhaps more, until he complies.
The attorney general has questioned how the Trump Organization valued the Trump brand, as well as properties including golf clubs in New York and Scotland and Trump’s own penthouse apartment in midtown Manhattan’s Trump Tower.
Trump, a Republican, denies wrongdoing and has called the investigation politically motivated. James is a Democrat.
(Reporting by Luc Cohen and Karen Freifeld)
