The New York AG subpoena for Trump’s taxes, the case that went to the SCOTUS, is now back in front of a New York Federal District Court judge. It had previously been reported that the NY AG sought records to investigate Trump’s payment to Stormy Daniels through Michael Cohen and whether it represented an FEC violation or criminal tax evasion. The New York prosecutor – Manhattan prosecutor Cyrus Vance – sought eight years’ worth of taxes and income records. Trump’s attorneys argue that the subpoena is far too broad for an investigation of the Michael Cohen matter.

But now, according to the New York Times, prosecutors have dropped a bomb in the proceeding.

When the subpoena was initially issued, prosecutors knew only of Stormy Daniel’s story. Since that time, the New York Times published stories about Trump’s tax evasion practices and Michael Cohen testified to the Trump Organization’s business practices, including inflating and deflating property values. Thus the prosecutors now say they have a far bigger investigation, and a much more serious one, for bank fraud, insurance fraud, and tax evasion, these are allegations, of the type that puts one in jail – ask Paul Manafort:

The Manhattan district attorney’s office suggested on Monday that it has been investigating President Trump and his company for possible bank and insurance fraud, a significantly broader inquiry than the prosecutors have acknowledged in the past.

The office of the district attorney, Cyrus R. Vance Jr., made the disclosure in a new federal court filing arguing Mr. Trump should have to comply with its subpoena seeking eight years of his personal and corporate tax returns. Mr. Trump has asked a judge to declare the subpoena invalid.

The prosecutors did not directly identify the focus of their inquiry but said that “undisputed” news reports last year about Mr. Trump’s business practices make it clear that the office had a legal basis for the subpoena. The reports, including investigations into the president’s wealth and an article on the congressional testimony of his former lawyer and fixer, Michael D. Cohen, said that the president may have illegally inflated his net worth and the value of his properties to lenders and insurers. Lawyers for Mr. Trump have said he did nothing wrong.

It is highly unlikely – almost impossible – for voters to see Trump’s taxes through the NY AG case prior to the election. The taxes and other information would go through the grand jury which is held in secret. But this is a very serious escalation in Trump’s criminal exposure. He knows it, too.

Hold on. https://t.co/k4njLZGSy3

— David Corn (@DavidCornDC) August 3, 2020

Oh this is fun https://t.co/joByoTu7Nj

— Molly Jong-Fast🏡 (@MollyJongFast) August 3, 2020

That’s something.

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Peace, y’all
Jason
[email protected] and on Twitter @MiciakZoom