August 20, 2020

Trump Lost Again on Taxes in Federal Court

A judge tossed Trump’s bid to block his accountant from giving his financial records to Manhattan’s DA.

Donald Trump holds a press conference on Wednesday, August 19, 202Chris Kleponis/Pool/CNP via ZUMA Wir

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A federal judge on Thursday threw out a lawsuit by Donald Trump that argued the president should not have to comply with a subpoena by Manhattan District Attorney Cyrus Vance for his financial records, including tax returns.

The Supreme Court last month rejected Trump’s argument that prosecutors could not order his accounting firm Mazars to hand over his records. Trump’s lawyers argued that he enjoys absolute immunity from criminal scrutiny, as well as congressional oversight, while in office. In an appeals court ruling last fall, Trump’s lawyers said that even if he shot someone on Fifth Avenue, he would be immune from not only prosecution but investigation by federal or local authorities.

The Supreme Court’s decision allowed Trump to contest Vance’s subpoena on other grounds. On Thursday US District Judge Victor Marrero ruled that Trump’s new arguments—that Vance’s subpoena is “overbroad and issued in bad faith”—is “at its core” the same claim judges have already rejected.

“It amounts to absolute immunity through a back door, an entry point through which not only a President but also potentially other persons and entities, public and private, could effectively gain cover from judicial process,” Marrero wrote.

Marrero said Trump’s litigation strategy, if successful, would have dire national consequences. It “could impact the constitutional order and justice system all the more adversely precisely because the expedient emanates from the President than it would when an ordinary citizen pursues similar practices,” the judge wrote.

Vance’s office disclosed last month that it is investigating Trump and his company for “bank and insurance fraud.” Vance has also subpoenaed Trump’s longtime lender, Deutsche Bank, for financial records Trump and his company provided when he sought loans, the New York Times reported. Deutsche Bank complied.

Thursday’s ruling is another stinging legal defeat for Trump, but it doesn’t mean Americans will get to see Trump taxes anytime soon. Trump’s lawyers filed an emergency notice of appeal shortly after Thursday’s ruling and requested an order blocking Mazars from complying with a subpoena pending the appeal. That action may delay resolution of the case until after November’s election. And even if Vance does eventually get Trump’s taxes, grand jury rules prevent their public release.

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WHO DOESN’T LOVE A POSITIVE STORY—OR TWO?

“Great journalism really does make a difference in this world: it can even save kids.”

That’s what a civil rights lawyer wrote to Julia Lurie, the day after her major investigation into a psychiatric hospital chain that uses foster children as “cash cows” published, letting her know he was using her findings that same day in a hearing to keep a child out of one of the facilities we investigated.

That’s awesome. As is the fact that Julia, who spent a full year reporting this challenging story, promptly heard from a Senate committee that will use her work in their own investigation of Universal Health Services. There’s no doubt her revelations will continue to have a big impact in the months and years to come.

Like another story about Mother Jones’ real-world impact.

This one, a multiyear investigation, published in 2021, exposed conditions in sugar work camps in the Dominican Republic owned by Central Romana—the conglomerate behind brands like C&H and Domino, whose product ends up in our Hershey bars and other sweets. A year ago, the Biden administration banned sugar imports from Central Romana. And just recently, we learned of a previously undisclosed investigation from the Department of Homeland Security, looking into working conditions at Central Romana. How big of a deal is this?

“This could be the first time a corporation would be held criminally liable for forced labor in their own supply chains,” according to a retired special agent we talked to.

Wow.

And it is only because Mother Jones is funded primarily by donations from readers that we can mount ambitious, yearlong—or more—investigations like these two stories that are making waves.

About that: It’s unfathomably hard in the news business right now, and we came up about $28,000 short during our recent fall fundraising campaign. We simply have to make that up soon to avoid falling further behind than can be made up for, or needing to somehow trim $1 million from our budget, like happened last year.

If you can, please support the reporting you get from Mother Jones—that exists to make a difference, not a profit—with a donation of any amount today. We need more donations than normal to come in from this specific blurb to help close our funding gap before it gets any bigger.

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