N.Y. Prosecutors Subpoena Records on Trump’s Seven Springs Estate
(Bloomberg) -- New York City prosecutors, who are investigating President Donald Trump’s company for possible tax, bank and insurance fraud, have broadened their probe to include a sprawling property in Westchester County.
A lawyer for the town of Bedford said Friday the office of Manhattan District Attorney Cyrus Vance Jr. last month served the town with a subpoena focusing on an obscure development by Trump’s company called Seven Springs, located on 212 acres an hour’s drive outside New York City.
Bedford, about 40 miles (64 kilometers) north of Manhattan, was asked to turn over a broad range of documents related to Seven Springs, a lawyer for the town said. Trump bought the property for $7.5 million in 1995 and later said it was worth almost $300 million, according to the Wall Street Journal, which reported that the neighboring towns of New Castle and North Castle also received subpoenas.
Prosecutors “wanted a lot of documents regarding this development,” Joel Sachs, a lawyer for Bedford, said in a phone interview. He noted that his client has provided the records on the development, which spans all three towns.
The probe by Vance and a separate investigation by New York Attorney General Letitia James into Trump’s real-estate business are among the biggest potential threats to the president after he leaves office. The intensifying scrutiny comes as Trump faces long odds on a comeback for his struggling business empire following his second impeachment in the wake of the Jan. 6 Capitol riot.
The subpoenas from Vance cover tax assessments, email correspondence, planning-board materials and other documents about the property, which includes a mansion built in 1919 for former Federal Reserve chairman Eugene Meyer, according to the Journal.
The Trump Organization spent about two decades trying to develop Seven Springs, first failing to build a golf course that was opposed by local residents, and later trying to gain approval for a subdivision of luxury homes.
The New York Times reported that in 2014, Trump classified Seven Springs as an investment property, which allows for certain tax benefits, instead of a personal residence. The Trump Organization website says the estate is used as a retreat for the Trump family.
A spokesman for Vance declined to comment. Lawyers for North Castle and New Castle didn’t respond to phone calls seeking comment. A lawyer for the Trump Organization didn’t respond to an email seeking comment.
James is also investigating the Silver Springs development and whether Trump’s company falsely reported the value of his assets to get loans or tax benefits as claimed by Trump’s former personal lawyer and fixer, Michael Cohen.
Trump’s 40 Wall Street skyscraper and his Chicago hotel are among the properties that are part of that probe.
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