The looming legal investigations into Trump Foundation & the Trump Org by @akarl_smith.
In addition to @TishJames & @NewYorkStateAG, the most important name in this story is Trump CFO & Trump Fdn Treasurer Allen Weisselberg.
The most important words, for now: criminal tax fraud.
In addition to @TishJames & @NewYorkStateAG, the most important name in this story is Trump CFO & Trump Fdn Treasurer Allen Weisselberg.
The most important words, for now: criminal tax fraud.
2/ Trump Org potentially faces significant criminal liability, @Mimirocah1 @glennkirschner2 @danielsgoldman & I agree.
They had to shut down the foundation.
Now @NewYorkStateAG (@TishJames) should explore a quo warranto dissolution of Trump Org for fraud.
shugerblog.com/2017/02/09/sta…
They had to shut down the foundation.
Now @NewYorkStateAG (@TishJames) should explore a quo warranto dissolution of Trump Org for fraud.
shugerblog.com/2017/02/09/sta…
3/ Like most states, NY has codified the English writ of quo warranto, which means "by what warrant?" "By what authority?"
In this case: By what authority are you abusing the privileges of state incorporation?
The state gave you that huge privilege, & the state can take it away.
In this case: By what authority are you abusing the privileges of state incorporation?
The state gave you that huge privilege, & the state can take it away.
4/ NY Bus Corp Law 1101 grants @NewYorkStateAG the authority “to bring an action for the dissolution of a corporation” if:
"the corporation has exceeded the authority conferred upon it by law...or carried on, conducted or transacted its business in a persistently fraudulent...
"the corporation has exceeded the authority conferred upon it by law...or carried on, conducted or transacted its business in a persistently fraudulent...
"...or illegal manner, or by the abuse of its powers contrary to the public policy of the state has become liable to be dissolved."
@NewYorkStateAG Underwood valiantly used the parallel quo warranto statute for non-profits to investigate the Trump Foundation.
It's now shut down.
@NewYorkStateAG Underwood valiantly used the parallel quo warranto statute for non-profits to investigate the Trump Foundation.
It's now shut down.
6/ @emptywheel has argued rightly that even if Mueller might not indict a sitting president, a sitting president's corporation can be indicted.
I'd add:
A) Even more likely is a civil investigation for dissolution (quo warranto)...
B) By a state AG.
I'd add:
A) Even more likely is a civil investigation for dissolution (quo warranto)...
B) By a state AG.
7/ @emptywheel also suggests Trump Org's survival would be on the table as part of a resignation deal.
That's a big deal.
I'd add: 1) Trump/Whitaker/Barr cannot obstruct state AGs and prosecutors.
2) Quo warranto is civil, not criminal. Lower burden of proof, no jury unanimity.
That's a big deal.
I'd add: 1) Trump/Whitaker/Barr cannot obstruct state AGs and prosecutors.
2) Quo warranto is civil, not criminal. Lower burden of proof, no jury unanimity.
8/ An increasingly possible scenario: Trump and his family face:
A) criminal charges for campaign finance, tax fraud, bribery, false statement/obstruction from Mueller SCO, SDNY, EDNY, EDVA.
B) criminal charges in the state of NY.
C) civil dissolution & forfeiture of Trump Org.
A) criminal charges for campaign finance, tax fraud, bribery, false statement/obstruction from Mueller SCO, SDNY, EDNY, EDVA.
B) criminal charges in the state of NY.
C) civil dissolution & forfeiture of Trump Org.
9/ @McDeereUSA once wrote that Trump's lawyers need to start preparing him for a resignation deal to avoid these consequences.
I replied that we on the side of the rule of law also need to steel ourselves for such a deal...
for all that Trump "steals" for himself.
I replied that we on the side of the rule of law also need to steel ourselves for such a deal...
for all that Trump "steals" for himself.
10/ I don't know what Mueller has, but I'd accept a resignation deal in return for fed and state criminal immunity for Trump and his family, w/ disqualification from public office for all of them.
But civil immunity for Trump Org, Kushner, etc?
That would bend justice too far.
But civil immunity for Trump Org, Kushner, etc?
That would bend justice too far.
