Scotland Inches Closer To Investigating Trump

Scotland’s highest court has heard arguments on whether ministers should have investigated Donald Trump using special legal powers.

The case was brought before the Court of Session by Avaaz, a U.S. human rights group, which has argued it is the Scottish government’s “duty” to use an Unexplained Wealth Order (UWO) to investigate Trump’s purchase of Turnberry Golf Course.

When Trump bought the golf course in 2014 he used money “funneled in from elsewhere outside the U.K. from apparently unlimited funds,” Aidan O’Neill QC, representing Avaaz, told the Court of Session on Tuesday (26 October).

Even after purchasing Turnberry, it continued to be loss making, O’Neill told the court. Accounts show it made a consolidated loss of £2.3 million ($3.1 million) in 2019 and £10.7 million ($9.7 million) in 2018. “The notes on the accounts state the group is dependent on continuing financing being made by its ultimate owner to enable it to continue operating.”

There are, therefore, “reasonable questions” concerning the financing of Trump’s Scottish golf course that need to be answered, O’Neill told Lord Sandison QC who will ultimately decide whether or not the Scottish government acted unlawfully in not seeking a UWO against Trump.

UWOs were introduced in 2018 to allow U.K. authorities to question organizations and individuals with suspicious wealth that might be sourced from money laundering or criminal activity. Specifically, they were designed to shine a light on politically exposed persons, which, O’Neill argued, is exactly what Trump is.

A report, published by Avaaz in 2019, says Trump bought Turnberry Golf Course after “an unusual buying spree” where many of the transactions were made in “locations highly conducive to money laundering such as Panama and the former Soviet Union.”

In February, however, the Scottish parliament voted against using a UWO to investigate Trump, and Avaaz has since argued that such a decision was unlawful. In May, it filed a petition in Scotland’s Court of Session asking for a judicial review of the government’s decision.

“If Trump can’t explain the source of the money, then the Scottish government has the responsibility to take action, and if Trump can explain the source of the money, then that puts the issue to bed. And everybody benefits from the transparency,” Nick Flynn, legal director at Avaaz, told Forbes in May.

But ministers have a “discretion rather than an absolute obligation” to seek a UWO, Ruth Crawford QC, representing Scottish ministers, told the Court of Session on Wednesday (27 October).

UWOs, she said, can lead to a “presumption being that the property has been obtained through unlawful conduct and that the civil recovery order requirements have been met.” They, therefore, have “a taint of criminality.”

The hearing before Lord Sandison QC continues. Flynn says a decision could be expected before Christmas and that “Avaaz is grateful to the court for a thorough examination of the law on a matter of enormous public interest.”

However, those hoping to see a UWO bought against Trump might have a long wait. Sandison told the court that his decision would not mean that a UWO against Trump would have been granted.

If the ruling is in Avaaz’s favor, the Scottish government would be asked whether it had any reasonable grounds for suspicion about Trump’s lawful income. If they do, the government would then have to apply to the Court of Session for a UWO to investigate the Trump Organization.

Such investigations are lengthy, but will likely weigh on the Trump Organization, which is now the subject of multiple legal probes.

Last month, another of Trump’s golf courses, the Trump National Golf Club Westchester, came under the spotlight after Westchester County District Attorney, Mimi Rocah, requested financial documents. According to a New York Times report, the Trump Organization purposely undervalued the club to cut down on its property tax bill.

Trump himself is not being charged in either of the cases, but such investigations could impact both his wealth and, therefore, any future political ambitions.