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U.S. Steps into New York Subpoena Fight in Trump’s Defense

Justice Department Seeks to Defend Trump in NY Subpoena Fight

(Bloomberg) -- The U.S. Justice Department entered a fight between Donald Trump and Manhattan District Attorney Cyrus Vance Jr., suggesting it may defend the president’s effort to block a subpoena to his accountant for tax records and other private documents.

In a singular twist to the unprecedented case, the top federal prosecutor in Manhattan late Tuesday asked for a temporary halt to the enforcement of the state subpoena while his office considers whether to participate in the case.

The Justice Department has become increasingly protective of the president since Attorney General William Barr took office. Trump’s suit raises “significant constitutional issues that potentially implicate the interests of the United States,” according to the court filing by U.S. Attorney Geoffrey Berman in Manhattan.

A key issue is whether a sitting president can be subject to a state’s criminal process, including grand jury subpoenas, under the Constitution, the U.S. said. A federal judge in Manhattan has scheduled a hearing for Wednesday to weigh Trump’s request to block the subpoena.

The Justice Department’s request creates a legal spectacle rarely if ever before seen: the top state prosecutor in New York City potentially squaring off in court against the top federal prosecutor in the region, in a battle that will decide whether the president loses control of his tax returns.

If the judge issues a short-term restraining order to the subpoena, the U.S. said it will tell the court by Oct. 1 whether it intends to participate in arguments for a longer ban.

Falsified Records?

Emails to Vance’s office and Trump’s lawyers weren’t immediately returned.

New York state prosecutors are probing whether the Trump Organization falsified business records related to hush-money payments made to Stormy Daniels and Karen McDougal.

Last month, a New York grand jury convened by Vance issued a subpoena to Mazars USA, Trump’s accountants, for years of tax records. The Trump Organization said it turned over 3,376 pages of business records to the prosecutor.

Trump’s lawyers argued in court papers that he “cannot be subject to criminal investigation, for any conduct of any kind, while he is serving as president,” adding that the case could infringe on his Constitutional powers and that Vance is unfairly targeting him for political reasons.

But the District Attorney’s office said in a filing this week that the president hasn’t shown he’s immune from investigation for things he did before he was elected, criticizing Trump’s “purely speculative -- and, frankly, outrageous -- claim that the DA seeks to expose the president’s personal financial information.” Trump is seeking to invent a new presidential “tax-return privilege” that’s unsupported by the law, according to Vance.

The lawsuit is part of Trump’s broader legal effort to shut down inquiries into his finances at a time when Democrats initiated an impeachment inquiry and are preparing to take him on in the 2020 election.

The case is Trump v. Vance, 19-cv-8694, U.S. District Court, Southern District of New York (Manhattan).

--With assistance from Bob Van Voris.

To contact the reporter on this story: Joe Schneider in Los Angeles at jschneider5@bloomberg.net

To contact the editor responsible for this story: David Glovin at dglovin@bloomberg.net

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