New Manhattan grand jury convened in Trump Org probe -source (updated)

Crown Equity Holdings

04/11/2021 19:29

(Adds details on chief operating officer, background on origin
of probe)
    By Karen Freifeld
    NEW YORK, Nov 4 (Reuters) - The Manhattan district attorney
has convened another grand jury  to weigh possible new charges
in a case involving the Trump Organization, a person familiar
with the matter told Reuters on Thursday.
    The second grand jury was expected to examine how former
President Donald Trump's company valued its assets, the
Washington Post reported, citing a person familiar with the
matter. 
    The legal woes could complicate the company's relationships
with banks, and could pose a challenge to Trump's political
future as he considers running for another term in 2024. Trump
has called the charges politically motivated.
    The criminal case stems from a probe by Manhattan District
Attorney Cyrus Vance in collaboration with New York State
Attorney General Letitia James.
    An indictment unsealed in July charged the Trump
Organization and its chief financial officer, Allen Weisselberg,
with tax fraud arising from a probe into Trump's business and
its practices. 
    That indictment said the company provided perks and benefits
such as rent-free apartments and leased cars to Weisselberg and
other officials without proper reporting on tax returns. 
    Both Weisselberg and the company pleaded not guilty. A
Republican, Trump himself has not been charged.
    The new grand jury was seated after the first grand jury's
term expired, said the person familiar with the matter, who
spoke on condition of anonymity. 
    A spokesman for the Manhattan District Attorney's office
declined to comment. 
    A lawyer for the Trump Organization did not immediately
respond to a request for comment. Mary Mulligan, a lawyer for
Weisselberg, declined to comment.
    Trump's company operates hotels, golf courses, and resorts
around the world. Before entering the White House in January
2017, Trump put it into a trust overseen by his adult sons
Donald Jr. and Eric, as well as Weisselberg. The current status
of the trust was not immediately clear.
    Besides Weisselberg, another Trump Organization executive 
who has come under a glare is chief operating officer Matthew
Calamari.
    Calamari's lawyer Nicholas Gravante has not yet been
informed whether his client will be charged or subpoenaed to
testify before the grand jury, another person familiar with the
probe told Reuters on Thursday.
    Calamari's son, Matthew Calamari Jr., testified before a
grand jury in September in connection with the case and has
immunity from possible prosecution, said the person, who spoke
on the condition of anonymity.      
    
    SEVEN SPRINGS
    James' probe was initially civil in nature, but in May her
office said it was also investigating the Trump Organization in
a criminal capacity and had joined forces with Vance.
    While it was not immediately clear what the second grand
jury was focusing on, James' civil probe has been examining how
the Trump organization assessed the value of Seven Springs, a
212-acre estate in New York City's northern suburbs, and in
particular a 2015 agreement not to develop a portion of the
property. 
    The attorney general's office said in a court filing for the
 probe that an appraiser hired by Trump before the agreement set
the property's value at $56.6 million and the easement's value
at $21.1 million - the amount Trump claimed as an income tax
deduction.
    James has said she is also investigating a Los Angeles golf
club owned by the Trump Organization, which gave the company a
tax deduction for a conservation easement in 2014, as well as
buildings the company owns on Wall Street and in Chicago.
    She said she opened that investigation after Trump's former
lawyer and fixer, Michael Cohen, said that Trump's financial
statements were manipulated to obtain better loans or reduce
real estate taxes.  
    Vance, a Democrat, will step down at the end of the year.
James, also a Democrat, has said she will run for governor of
New York in 2022.


 (Reporting by Karen Freifeld; 
Writing by Luc Cohen; 
Editing by Noeleen Walder, Alistair Bell and Aurora Ellis)
 ((paul.grant@thomsonreuters.com;))