Lawyers are trying to convince a judge to allow the Scottish government to investigate the Trump Organization under a 'McMafia' order, citing the New York criminal case
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Jacob Shamsian,Thomas Colson
Aug 5, 2021, 05:03 IST
Donald Trump plays a round of golf at Trump Turnberry Luxury Collection Resort during the US President's first official visit to the United Kingdom on July 15, 2018 in Turnberry, Scotland.
Leon Neal/Getty Images
Lawmakers in Scotland are exploring whether to investigate the Trump Organization's finances.
Lawyers cited NYC prosecutors' investigation of the company and its CFO as a reason to move forward.
A judge is weighing whether lawmakers can use a "McMafia" order to open an investigation.
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As prosecutors in Manhattan continue their investigation into the Trump Organization's finances, attorneys in Scotland are citing its progress to advocate for opening a parallel investigation into how the former US president's company financed golf courses in the country.
At a virtual court hearing in Scotland Thursday, the attorney Kay Springham asked a judge to allow the government to issue an "unexplained wealth order" (UWO), also known as a "McMafia order," The Scotsman reported. The order would force the Trump Organization to open up its books and explain how it financed the acquisition of its two Scottish resorts.
Springham said the charges against Weisselberg illustrated why the Scottish government should be concerned about whether the Trump Organization concealed the sources of its wealth.
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She suggested a UWO may extend to Weisselberg, as well as to former President Donald Trump.
"It's evident from the matters set out in the petition that there are real and substantial concerns about financial arrangements of the Trump Organization, of which Mr. Trump is the sole or principal owner," Springham said, according to The Scotsman.
She added: "Since the petition has been lodged, there have been further developments … the charges laid against the Trump Organization's chief financial officer [Allen] Weisselberg."
Representatives for the Trump Organization didn't immediately respond to Insider's request for comment.
In January, Patrick Harvie, the Green Party cofounder and a member of the Scottish Parliament, called for a UWO investigation into how the Trump Organization financed its all-cash purchase of the golf courses.
Harvie and Avaaz, a nonprofit group, are challenging Sturgeon's claim. Avaaz hired Springham to convince a judge that Sturgeon was wrong about her interpretation of the law and that Scotland's elected ministers could invoke its powers.
The UWO is a relatively new legal instrument - the UK introduced it in 2018 as a way to help investigate money laundering and other financial crimes.
Both of Trump's Scottish golf resorts have posted losses continuously since Trump has run them and owe millions of pounds to creditors. Harvie in February questioned how Trump was able to purchase both resorts between 2006 and 2014. Avaaz said Trump purchased both as part of a $400 million spending spree, which raised questions about how he had financed the deals.
In July, the Manhattan District Attorney's Office brought a 15-count indictment against Weisselberg and the Trump Organization, accusing the chief financial officer of dodging taxes on $1.7 million worth of income. Weisselberg and attorneys for the company pleaded not guilty to the charges.
If the high court rules the Scottish government misinterpreted the law, Scottish lawmakers will have a chance to decide whether to initiate a UWO investigation into the Trump Organization.
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