Trump Could Face Tax Fraud Probe Over 'Fraudulent Financial Statements', Manhattan DA's Office Says

President Donald Trump and his businesses could face a tax fraud probe after Manhattan prosecutors suggested they had grounds to launch an investigation in a court filing submitted Monday.

The filing is the latest development in the two-year legal battle between Manhattan district attorney Cyrus R. Vance Jr. and Trump that began over his tax returns and financial records. The investigation stalled after Trump’s lawyers challenged a subpoena the Manhattan DA office issued in August 2019.

The president’s team filed a complaint claiming the subpoena was “wildly overbroad” and politically motivated. They also allege that it was an act of “presidential harassment.” However, federal district judge Victor Marrero later dismissed the complaint.

The dispute reached the Supreme Court, which ruled against him in a 7-2 opinion July, The Hill reported.

“No citizen, not even the president, is categorically above the common duty to produce evidence when called upon in a criminal proceeding,” Chief Justice John G. Roberts Jr. wrote for the majority.

"We reaffirm that principle today and hold that the president is neither absolutely immune from state criminal subpoenas seeking his private papers nor entitled to a heightened standard of need," he added.

Trump has since filed an appeal to the U.S. Court of Appeals for the Second Circuit. His lawyers accused Marrero of “stacking the deck” against the president.

Vance, a Democrat, responded to the argument, saying that the subpoena did not directly accuse Trump or his businesses of any wrongdoing. However, the Manhattan DA’s office cited news reports and public testimony that allege Trump’s companies have engaged in a wide array of crimes, including tax and insurance fraud, and falsification of business records, according to a report by the New York Times.

"In particular, public reports have alleged that Trump Organization executives used fraudulent financial statements as part of long-standing practices of overstating assets sent to potential business partners and lenders and minimizing assets in tax returns," the DA’s office wrote.

Vance’s office began investigating the president after two women who claimed they had affairs with Trump received hush-money payments before the 2016 election.

In Monday’s filing, Mr. Vance urged the appeals court to reject Trump’s latest legal challenge and affirm the ruling of the district court. The president said he is expecting the dispute over the subpoena will end up in the Supreme Court. Oral arguments are scheduled for Friday.