NYC Trump investigation expands to include Chicago buildings – Daily News


By Kara Scannell | CNN

Manhattan prosecutors have cited documents from an investment company that has loaned the Trump organization millions of dollars for its Chicago skyscraper as a sign that the investigation into the former president’s finances is expanding, according to people familiar with the investigation .

Prosecutors issued the grand jury subpoena to Fortress Investment Management late last year, people said as part of their far-reaching investigation into former President Donald Trump and his company.

Investigators’ interest in how Trump and his company treated the Chicago loan is an extension of an investigation that covers several aspects of the Trump business.

Prosecutors are investigating whether the company has misled lenders or insurance brokers in valuing certain properties. They are also investigating fees paid to consultants and a maintenance easement on a New York family estate called Seven Springs.

Your interest in Fortress relates to a $ 130 million loan that the company made to the Trump Organization for the construction of a luxury hotel and condominium tower in Chicago.

Through 2012, Fortress then made an additional $ 100 million on the loan, which court records found was worth approximately $ 150 million, including interest and fees. The forgiveness was made to ensure a partial repayment of approximately $ 45 million at a time when the real estate market was suffering from the financial crisis.

Manhattan Prosecutors Cy Vance are investigating whether Trump and the Trump Organization recorded loan waiver income and taxes as required by the Internal Revenue Service, people say.

Fortress was not accused of any wrongdoing. Representatives from Fortress and the Manhattan Attorney’s Office declined to comment.

The Trump organization did not respond to a request for comment.

Alan Garten, the General Counsel of the Trump Organization, declined to comment. Previously, he told the New York Times in October that the company and Trump adequately accounted and paid all taxes on canceled debts.

New York attorney general Letitia James first asked questions about Trump’s handling of the Fortress loan last fall when her office announced in a court case that it was investigating whether Trump and the Trump organization were investigating whether or not Trump and the Trump organization were using the waived amount as income and as a Booked taxes paid or if there was any explanation why this is not required.

The attorney general’s office announced at the time that information about the transactions was “relevant” to the civil investigation.

The New York Times, which collected Trump’s taxes, said the canceled debts appeared on Trump’s tax returns as canceled debts. The Times wrote that Trump took advantage of a law passed after the 2008 financial crisis that allowed companies to distribute revenue from canceled debt over several years.

The prosecutor’s interest in Trump’s handling of the Fortress loan comes from the fact that prosecutors have started searching Trump’s tax returns and other documents received from Mazars, Trump’s longtime accountant.

In addition to the tax returns, the investigators received annual financial statements and working papers that can shed light on the decision-making process behind the treatment of the canceled debts. It could also uncover internal debates and discussions that could help prosecutors determine the intent behind the conclusions they reached.

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