The US Department of Justice (DOJ) has initiated a significant criminal investigation into former President Donald Trump and his family real estate empire, the Trump Organisation, according to a new report.
The probe, revealed by The Independent, centres on a $100 million mortgage obtained on a flagship skyscraper at 40 Wall Street in Lower Manhattan. Investigators are examining whether the company and its executives, potentially including Trump himself, committed bank or insurance fraud by deliberately misstating the property's value to financial institutions.
The Core of the Allegations
The investigation is understood to be scrutinising the specifics of the loan application process for the 72-story property. Key questions include:
- Whether the value of the building was intentionally and significantly inflated to secure more favourable loan terms from lenders.
- If these alleged misrepresentations were then used to deceive insurance companies about the asset's true worth.
- Which executives within the Trump Organisation had knowledge of or directed these valuations.
This line of inquiry mirrors a separate, long-running civil investigation led by New York Attorney General Letitia James, who is utilising the state's powerful Martin Act to probe the company's financial practices.
A Pattern of Legal Challenges
This federal criminal investigation represents a serious escalation in the legal troubles facing the former president. While the civil case from the NY AG could result in hefty fines and restrictions on business operations, a federal criminal prosecution carries the potential for severe penalties, including imprisonment for any individuals found guilty.
The DOJ's entry into this arena suggests prosecutors believe there is evidence of criminal intent—a key element that must be proven beyond a reasonable doubt in a criminal case, as opposed to the lower burden of proof in a civil matter.
The Trump Organisation has consistently denied any wrongdoing, characterising all investigations as politically motivated "witch hunts." Nonetheless, the overlapping state and federal probes indicate a sustained and serious effort by law enforcement to examine the company's financial dealings.
