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Friday, March 29, 2024 | Back issues
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Trumps remain on the hook for fraud depositions

A New York appellate panel unanimously advanced subpoenas against Donald Trump and several of his children as part of a civil investigation into the family business.

MANHATTAN (CN) — Donald Trump, eldest daughter Ivanka and eldest son Don Jr. can’t get out of depositions in the New York attorney general’s probe of the former president and his family’s business dealings, an appellate panel ruled Thursday. 

To stymy the investigation of whether the Trump Organization lied about the value of its assets to secure loans and tax benefits, Trump's lawyers have argued that the family’s testimony would be unfairly prejudicial under state criminal procedure law since former President Trump is also under criminal investigation for his business practices. 

The argument centers on grand jury immunity, which in New York protects defendants in criminal matters from prosecution for any crime that is the subject of their grand jury testimony. It flopped in February at the New York County Supreme Court, which found that the existence of a criminal investigation doesn’t limit civil discovery on related facts. 

In the lower court, Judge Arthur Engoron’s 8-page order said it would be "a blatant dereliction of duty" if New York's top prosecutor were to ignore Donald Trump's business dealings.

A four-judge appellate division panel unanimously solidified that outcome. 

“Individuals have no constitutional or statutory right to be called to testify before a grand jury under circumstances that would give them immunity from prosecution for any matter about which they testify,” Thursday’s four-page order states. “Although subjects of a grand jury proceeding have a statutory right to appear and testify, this right is conditioned upon the witness waiving the right to immunity and giving up the privilege against self-incrimination.”

The judges also found that statements during James’ political campaign (she briefly ran for governor last year) and other public comments don’t support the claim that civil subpoenas are “solely for use in a criminal proceeding or in a manner that would otherwise improperly undermine appellants’ privilege against self-incrimination.”

And it’s also not necessarily true that James would grant immunity to the Trumps in to secure their grand jury testimony: “Thus, the subpoenas did not frustrate any right to testify with immunity.” 

The lower court was right to decline to hold a fact-finding hearing on the scope of James’ investigation, the appellate judges ruled — a conclusion hinted at during oral arguments on appeal. 

“That sounds like a collateral exploration that’s unprecedented,” Judge Rolando Acosta told Trump’s attorney Alan Futerfas.

Reached for comment on the ruling, Futerfas replied succintly via email: "We are considering the decision."

Trump may still appeal the ruling to the New York Court of Appeals. 

Last summer, spurred by evidence uncovered in James’ civil investigation, the Manhattan district attorney’s office charged Alan Weisselberg and the Trump Organization with tax fraud, alleging he collected more than $1.7 million in off-the-books compensation.

Weisselberg and the company have pleaded not guilty.

Despite the recent departures of top investigators leading the criminal probe, Manhattan District Attorney Alvin Bragg affirmed last month that the Trump Organization case remains ongoing.

Meanwhile James’ three-year investigation — which her office says predated the criminal one — seems to be in its final stages, taking home yet another win.  

“Once again, the courts have ruled that Donald Trump must comply with our lawful investigation into his financial dealings,” James wrote in a statement. “We will continue to follow the facts of this case and ensure that no one can evade the law.”

Follow @NinaPullano
Categories / Appeals, Business, Civil Rights

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