Manhattan DA Cyrus Vance is ramping up the Trump tax fraud investigation by stocking up on professional organized crime prosecutors like Mark Pomerantz, the man who helped bring down John Gotti, Jr.
As the Manhattan district attorney’s office steps up the criminal investigation of Donald J. Trump, it has reached outside its ranks to enlist a prominent former federal prosecutor to help scrutinize financial dealings at the former president’s company, according to several people with knowledge of the matter.
The former prosecutor, Mark F. Pomerantz, has deep experience investigating and defending white-collar and organized crime cases, bolstering the team under District Attorney Cyrus R. Vance Jr. that is examining Mr. Trump and his family business, the Trump Organization.
The investigation by Mr. Vance, a Democrat, is focused on possible tax and bank-related fraud, including whether the Trump Organization misled its lenders or local tax authorities about the value of his properties to obtain loans and tax benefits, the people with knowledge of the matter said, requesting anonymity because of the sensitive nature of the investigation. Mr. Trump has maintained he did nothing improper and has long railed against the inquiry, calling it a politically motivated “witch hunt.”
In recent months, Mr. Vance’s office has broadened the long-running investigation to include an array of financial transactions and Trump properties — including Trump Tower on Fifth Avenue in Manhattan, various Trump hotels and the Seven Springs estate in Westchester County — as prosecutors await a ruling from the United States Supreme Court that could give them access to Mr. Trump’s tax returns.
The prosecutors have also interviewed a number of witnesses and have issued more than a dozen new subpoenas, including to one of Mr. Trump’s top lenders, Ladder Capital, the people with knowledge of the matter said.
In addition, investigators subpoenaed a company hired by Mr. Trump’s other main lender, Deutsche Bank, to assess the value of certain Trump properties, one of the people with knowledge of the previously unreported subpoenas said.
Months earlier, Mr. Vance’s office had subpoenaed records from Deutsche Bank itself, The New York Times previously reported. More recently, Deutsche Bank employees provided testimony to Mr. Vance’s office about the bank’s relationship with the Trump Organization, a person briefed on the matter said.
Still, despite the burst of investigative activity, prosecutors have said the tax returns and other financial records are vital to their inquiry — and the Supreme Court has delayed a final decision for months.
And yes, the Roberts Court has been sitting on the Trump tax returns decision for months now, and is under no obligation to release it until as late as possible this summer or longer.
Lawsuits involving Donald Trump tore apart the Supreme Court while he was president, and the justices apparently remain riven by him.
For nearly four months, the court has refused to act on emergency filings related to a Manhattan grand jury's subpoena of Trump tax returns, effectively thwarting part of the investigation.
The Supreme Court's inaction marks an extraordinary departure from its usual practice of timely responses when the justices are asked to block a lower court decision on an emergency basis and has spurred questions about what is happening behind the scenes.
Chief Justice John Roberts, based on his past pattern, may be trying to appease dueling factions among the nine justices, to avoid an order that reinforces a look of partisan politics. Yet paradoxically, the unexplained delay smacks of politics and appears to ensnarl the justices even more in the controversies of Trump.
The Manhattan investigation, led by District Attorney Cyrus Vance, continues to draw extensive public attention. The grand jury is seeking Trump personal and business records back to 2011. Part of the probe involves hush-money payments Trump lawyer Michael Cohen made to cover up alleged affairs. (Trump has denied those allegations.)
For more than a year, Trump's attorneys have raised challenges to prevent enforcement of the subpoena. The controversy appeared to culminate at the Supreme Court last July, when the justices rejected Trump's claim that a sitting president is absolutely immune from criminal proceedings.
The 7-2 decision crafted by Roberts left some options for Trump on appeal, but lower court judges have since spurned Trump arguments, and his lawyers returned last fall to the high court for relief. Vance agreed to wait to enforce the long-pending subpoena until the justices acted on Trump's emergency request.
The Supreme Court's lack of response has given Trump at least a temporary reprieve.
And his lawyers could soon seek more. CNN has learned that Trump's legal team is preparing to submit a petition to the justices by early March, based on a standard deadline for appeals, asking them to hear the merits of Trump's claim in oral arguments.
In Trump's October filing, his lawyers continued to maintain that the grand jury subpoena was overly broad and issued in bad faith to harass him. They said it "makes sweeping demands and ... crosses the line -- even were it aimed at some other citizen instead of the President."
The process for a petition for certiorari, as it is called, could add months to the case. If the justices agreed to hear the dispute fully on the merits, resolution could be a year off.
A spokesman for Vance declined to comment. Lawyers for Trump also declined to comment for the record.
If the Roberts Court sits on this for another 15-16 months, which is entirely possible, who knows where Vance's case will be by then? We'll find out, but it's maddening that SCOTUS is sitting on this decision.
They're doing it on purpose.
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