People vs. Donald Trump

1. Manhattan DA's Office Investigates Trump's Financial Statements

We were investigating a former president, and perhaps even a megalomaniac who posed a real danger to the country and to the ideals that mattered to me.

Complex investigation unfolds. The Manhattan District Attorney's Office, led by Cyrus Vance Jr., launched a wide-ranging investigation into Donald Trump's financial practices. The probe focused on potential fraud in Trump's Statements of Financial Condition (SOFCs), which were used to secure loans and business advantages.

High stakes and challenges. The investigation faced numerous obstacles, including:

• Trump's efforts to block subpoenas for his tax returns and financial records
• The need to navigate complex financial transactions and valuations
• The political sensitivity of investigating a former president

Team expansion. To bolster the investigation, the DA's office brought in experienced prosecutor Mark Pomerantz as a special assistant district attorney, adding expertise in white-collar crime and high-profile cases.

2. Michael Cohen Provides Key Testimony on Trump's Asset Valuation Practices

Cohen told us that Trump would dictate his bottom-line net worth and dispatch Cohen and Weisselberg to come up with asset values that would support the net worth figure that Trump wanted to show.

Insider information. Michael Cohen, Trump's former personal lawyer, provided crucial testimony about the inner workings of the Trump Organization's financial practices. His cooperation offered investigators insights into how Trump allegedly manipulated asset valuations to suit his needs.

Corroboration needed. While Cohen's testimony was valuable, prosecutors recognized the need to corroborate his claims due to his past convictions and potential credibility issues. This led to:

• Extensive document analysis
• Interviews with other witnesses
• Examination of Trump's public statements about his wealth

Pattern of inflation. Cohen's testimony, combined with other evidence, suggested a systematic pattern of inflating asset values for financial gain and deflating them for tax purposes.

3. Prosecutors Uncover Systematic Overvaluation of Trump's Assets

Trump's valuations of his golf courses were literally "off the chart."

Extensive analysis reveals discrepancies. The investigation team, along with forensic accountants, conducted a detailed examination of Trump's financial statements, uncovering numerous instances of alleged overvaluation:

• Mar-a-Lago: Valued at over $400 million despite restrictions on its use
• Trump Tower triplex: Claimed to be 30,000 square feet when actually 10,996 square feet
• Golf courses: Valued significantly higher than market comparables

Intentional pattern. Prosecutors believed the overvaluations were too consistent and significant to be accidental, pointing to a deliberate scheme to mislead banks and other financial institutions.

Legal theory development. The team worked to build a case around these inflated valuations, considering charges such as falsifying business records and fraud.

4. Weisselberg's Tax Evasion Scheme Leads to Indictment

We knew that we had Weisselberg in our clutches.

Executive compensation scheme uncovered. Investigators discovered that Trump Organization CFO Allen Weisselberg had received substantial off-the-books compensation, including:

• Rent-free apartment
• Luxury car leases
• Private school tuition for family members

Charges filed. This discovery led to the indictment of Weisselberg and the Trump Organization for tax fraud and related offenses in July 2021.

Potential for cooperation. Prosecutors hoped that the charges against Weisselberg might lead him to cooperate in the broader investigation against Trump, but he ultimately did not flip.

5. New DA Alvin Bragg Takes Over and Reassesses the Case

Alvin made the wrong decision for a different reason. He erred not because he misperceived the strength of the case, but because he failed to recognize that the case had to be brought to vindicate the rule of law.

Leadership transition. In January 2022, Alvin Bragg succeeded Cyrus Vance as Manhattan District Attorney, bringing a fresh perspective to the Trump investigation.

Case reevaluation. Bragg and his team conducted a thorough review of the evidence and legal theories developed by the previous administration. This process involved:

• Multiple presentations from the existing investigative team
• Debates over the strength of the evidence and potential charges
• Consideration of the broader implications of prosecuting a former president

Differing perspectives emerge. Tensions arose between the new administration and the existing investigative team over the merits of the case and the appropriate course of action.

6. Debate Over Prosecuting a Former President Intensifies

Should a prosecutor bring cases where an acquittal is not only possible, but likely? Are there circumstances in which a prosecutor should charge someone with a crime even if the case may be "unwinnable"?

Unprecedented situation. The potential prosecution of a former president raised complex legal and ethical questions:

• Balancing the rule of law with potential political ramifications
• Considering the impact on public trust in the justice system
• Weighing the risks of prosecution against the consequences of inaction

Divergent views. Prosecutors and legal experts were divided on the appropriate approach:

• Some argued for aggressive prosecution to uphold the principle that no one is above the law
• Others cautioned against bringing charges unless conviction was virtually certain

Public interest considerations. The debate extended beyond legal circles, with intense public and media scrutiny of the investigation and its potential outcomes.

7. Investigation Concludes Without Charges Against Trump

Alvin had told Carey that he still had not reached a final final decision. But he had decided that he would not authorize a prosecution on the facts we had developed.

No indictment. After months of deliberation, DA Bragg decided not to pursue criminal charges against Donald Trump based on the existing evidence.

Reasons for decision. While not explicitly stated, factors likely influencing the decision included:

• Concerns about the strength of the case and likelihood of conviction
• Potential political and social ramifications of prosecuting a former president
• Desire for additional evidence or corroboration

Investigation suspended. The decision effectively put the investigation on hold indefinitely, with the possibility of reopening it if new evidence emerged.

8. Pomerantz Resigns, Questioning the Decision Not to Prosecute

I believe that your decision not to prosecute Donald Trump now, and on the existing record, is misguided and completely contrary to the public interest.

Principled departure. Mark Pomerantz resigned from the DA's office in February 2022, citing his disagreement with the decision not to prosecute Trump.

Public statement. Pomerantz's resignation letter, which became public, outlined his reasons for believing prosecution was warranted:

• Sufficient evidence of Trump's guilt
• Importance of upholding the rule of law
• Risk of eroding public confidence in the justice system by not prosecuting

Broader implications. The resignation and subsequent public discourse highlighted:

• The challenges of high-profile, politically sensitive investigations
• Differing views on prosecutorial discretion and the threshold for bringing charges
• Ongoing debate about accountability for powerful individuals in the American legal system

Last updated: November 6, 2024