Hi Reader,
Last month, former President Donald Trump’s attorney David Warrington sent ProPublica a cease-and-desist letter demanding that our article about multiple Trump witnesses receiving financial benefits not be published. The letter warned that if ProPublica and its reporters “continue their reckless campaign of defamation, President Trump will evaluate all legal remedies.”
As a ProPublica reader, you know that our journalism is anything but reckless (and we did publish the story). Our reporters are meticulous and unrelenting in their mission to hold power to account. We are nonpartisan and hold leaders of both parties responsible for their actions. We know that allegations of using the electoral system for personal gain apply to both parties. This story on Rep. James Clyburn, for example, scrutinized one of the most powerful Democratic politicians in the country.
Lately, we’ve reported a series of stories uncovering abuses of power in Trump’s businesses and his campaign over the past year:
The Trump campaign’s history of deploying bullying tactics
Trump has famously belittled and sought to dominate political rivals like Florida Gov. Ron DeSantis and former allies like Bill Barr, who was his attorney general. ProPublica found that the bullying isn’t just aimed at Trump’s well-known, public opponents. Our article last month revealed that Trump’s campaign is using similar bullying tactics against its own former workers. These fights have been waged out of the public eye against women with few resources to stand up against the campaign’s battery of lawyers, paid from a seemingly bottomless trove of campaign money.
At least four women of color involved in the 2016 operation accused the campaign of workplace harassment, discrimination or violations of nondisclosure agreements. They have been subjected to scorched-earth tactics. For years, the Trump campaign has persisted, despite losing consistently, in at least some cases after it was clear that its efforts had damaged the women.
The Trump campaign did not respond to a detailed list of our questions. Spokesperson Steven Cheung in an emailed statement said one of the cases filed by a former campaign worker was “an absurd and fake story.”
An IRS audit could cost Trump more than $100 million
Trump used a dubious accounting maneuver to claim improper tax breaks from his troubled Chicago tower, according to an IRS inquiry uncovered by ProPublica and The New York Times. The tax agency concluded in its long-running investigation that Trump effectively claimed the same massive write-off twice on the building. The core of the IRS’ position is that Trump violated a law meant to prevent double-dipping on tax-reducing losses. Losing a yearslong audit battle over the claim could mean a tax bill of more than $100 million.
Beyond the two episodes under audit, reporting in recent years has found that, across his business career, Trump has often used what experts described as highly aggressive — and at times, legally suspect — accounting maneuvers to avoid paying taxes. To the six tax experts consulted for our article, Trump’s Chicago accounting maneuvers appeared to be questionable and unlikely to withstand scrutiny.
An IRS spokesperson said federal law prohibited the agency from discussing private taxpayer information. And in response to questions for our article, Trump’s son Eric, executive vice president of the Trump Organization, said: “This matter was settled years ago, only to be brought back to life once my father ran for office. We are confident in our position, which is supported by opinion letters from various tax experts, including the former general counsel of the IRS.”
New York State Supreme Court justice ruled that Trump committed fraud
In late September 2023, New York State Supreme Court Justice Arthur Engoron ruled that Trump committed fraud by inflating the value of his assets — between $812 million and $2.2 billion over seven years — and canceled certificates for Trump entities controlling some of the former president’s New York properties. Engoron’s decision said Trump also submitted statements of financial condition that described the triplex apartment where he has lived in Trump Tower as nearly three times the size of its square footage.
This ruling followed ProPublica’s reporting in 2019 that revealed a series of stark inconsistencies between what the Trump Organization had reported to property tax authorities about his landmark skyscraper at 40 Wall St. and what the company told lenders, and similar discrepancies in the amount of commercial space the Trump Organization claimed was occupied in Trump Tower.
In response to the Engoron ruling, an attorney for Trump, Christopher Kise, said in a statement that the decision was “outrageous” and “completely disconnected from the facts and governing law.” He said that the judge disregarded the views of those involved in the loan transactions, who he said testified that there was no fraud and that the transactions were highly profitable. He said the decision “seeks to nationalize one of the most successful corporate empires in the United States.” Trump’s legal team has appealed the ruling.
ProPublica is known for fearlessly reporting on our country’s most powerful people. Trump is no exception, and we will continue to report on his actions, those of his company and those of his campaign. We’re able to do this because we’re a nonprofit, funded by individuals. Right now, we have more than 50,000 members standing beside us, giving us the resources and freedom that we need to dig around where we’re not welcome. Help us keep going. Join us today with your donation of any amount.
Thanks so much,
Jill Shepherd
Proud ProPublican