Records strongly suggested, The Times reported, that US$747,622 of those fees had been paid to Ivanka Trump, the president's daughter, through a company she owned at a time when she was also a Trump Organisation executive.
If true, that wouldn't necessarily pose a problem for Ivanka Trump herself, as long as she paid income tax on the consulting payments, which she reported publicly.
It could, however, raise questions about whether the Trump Organisation's related tax deductions were allowable. The Internal Revenue Service has, in the past, pursued civil penalties over large consulting fee write-offs it found were made to dodge tax liability.
The Times wrote that there was no indication Ivanka Trump is a target of either the state's or the city's investigation.
"This is harassment pure and simple," she said on Twitter late Thursday. "This 'inquiry' by NYC democrats is 100% motivated by politics, publicity and rage. They know very well that there's nothing here and that there was no tax benefit whatsoever. These politicians are simply ruthless."
The Trump Organisation's lawyer, Alan Garten, and its media relations office didn't immediately return messages Thursday.James and Manhattan District Attorney Cyrus Vance Jr., both Democrats, are both conducting wide-ranging inquiries into Trump's business affairs.
Both investigations are at least partly related to allegations, made in news reports and by President Trump's former lawyer, Michael Cohen, that Trump had a history of inflating the value of some assets to impress banks and business partners, but lowering that value when seeking tax benefits.
Vance has been involved in a long court battle seeking access to Trump's tax filings as part of the investigation.
