Donald Trump Loses Appeal: Now He Must Testify in New York Attorney General's Investigation

Former President Donald Trump is to answer questions under oath during a New York Attorney General's civil investigation into his business practices. This was decided on Thursday, May 26, by the state appeals court, rejecting the defendant's argument that he should be released from testifying, since the answers given by him can be used in a parallel criminal investigation, writes 6 ABC.

A four-judge panel of the State Trial Court of Appeals upheld Judge Arthur Engoron's February 17 decision. It requires Trump and his two older children to testify under oath to Attorney General Letitia James.

The existence of a criminal investigation does not preclude civil disclosure of the facts involved, in which a party can exercise the privilege against self-incrimination. So wrote the Board of Appeal, referring to the Fifth Amendment to the US Constitution and other legal remedies for the protection of witnesses.

The Trumps' lawyers agreed in March that they would testify within 14 days of the appeals panel's decision. They can also appeal the decision to the state's highest court, the Court of Appeals, and thereby postpone the case and possible Trump testimony indefinitely.

Trump's lawyers were left with a message asking for comment.

James praised the decision, which came two weeks after the appeals panel heard oral arguments in the case. She tweeted that her investigation will continue unhindered because no one is above the law.

“Once again, the courts have ruled that Donald Trump must submit to a legitimate investigation into his financial dealings,” James said in a written statement. “We will continue to follow the facts of this case and ensure that no one can evade the law.”

On the subject: The court fined Trump $10 a day: he must pay until he satisfies the demand of the New York Attorney General

James said her investigation uncovered evidence that Trump's company used fraudulent valuations of assets such as golf courses and skyscrapers to obtain loans and tax breaks. Ivanka and Donald Trump Jr. were both leaders of the Trump Organization and are among their father's most trusted allies.

Republican Trump denies the allegations and calls the James investigation part of a politically motivated "witch hunt"

In appealing Engoron's subpoena decision, his lawyers argued that James (Democrat) was engaging in selective harassment. The Board of Appeal rejected this, stating that the investigation was conducted on a solid legal basis. In addition, the Trumps have provided no evidence that they were treated differently from other companies under similar scrutiny.

Trumps attorney Alan Futerfas told the appeals panel in oral argument on May 11 that James used civil subpoenas to circumvent New York law that requires immunity for people who testify before grand juries in criminal cases.

Judith Weil, speaking on behalf of James's office, countered that enough evidence was obtained in the civil investigation to support subpoenas to testify.

She also cited legal precedent allowing the Attorney General's Office to do so. And she said the Trumps can always invoke their Fifth Amendment right against self-incrimination, as Trump's son Eric did hundreds of times during his 2020 testimony.

Appellate Court Judge Rolando T. Acosta agreed with that position, anticipating the court's ruling on Thursday when he questioned Futerfas from the dock.

Anything Trump says in civil testimony in the James investigation could be used against him in a criminal investigation led by Manhattan District Attorney Alvin Bragg.

Last summer, inspired by evidence unearthed by James's office, prosecutors charged the Trump Organization and its longtime CFO, Allen Weisselberg, with tax fraud. And that he raised over $1,7 million in unofficial compensation. Weisselberg and company pleaded not guilty.

The decision of the appeals court on Thursday, May 26, was the latest in a string of court cases related to Trump and the Attorney General's investigation over the past few weeks.

Trump paid $110 in fines last week. On Monday, James's office said it had subpoenaed longtime Trump executive aide Rona Graff and planned to have her questioned under oath next week as part of the investigation.

Meanwhile, a federal judge in New York is expected to rule soon on a lawsuit Trump filed against James in December in an attempt to drop her investigation. Trump's lawyers want an injunction to drop the investigation. James's office is trying to dismiss the lawsuit.

Since James's investigation is civil, she could end up filing a lawsuit seeking financial sanctions against Trump or his company, as well as a ban on their participation in certain types of business.