A court-appointed monitor in Trump’s fraud case said his company filed information with “errors.”
A footnote also indicates that he may have committed tax fraud, according to The Daily Beast.
The letter says Trump may have lied about the existence of a $48 million loan.
Tucked in a footnote to a letter written by former federal judge Barbara Jones, the special monitor appointed by the court to oversee Donald Trump’s New York business fraud case is a bombshell that appears to indicate that the former president may have engaged in massive tax evasion, according to a new report released by The daily beast.
THE letterfirst reported by The messengerwas delivered Friday to update the Manhattan Supreme Court judge Arthur Engoron on Jones’ findings examining the former president’s business dealings through his company, the Trump Organization.
In it, Jones writes that financial information submitted to him by Trump’s team contained “incomplete” or “inconsistent” information containing multiple “errors.” However, she describes Trump and his companies as “cooperative” with her investigation.
But buried in the sixth footnote of the 12-page letter is what the Daily Beast reported as a clue that Trump may have evaded taxes on $48 million in income, with Jones writing that the massive sum – which Trump has claimed for years he owed as a debt to one of his companies – never existed.
“When I inquired about this loan, I was informed that there was no loan agreement that commemorates the loan, but that it was a loan that was allegedly made between Donald J. Trump, individually, and Chicago Unit Acquisition for $48 million,” Jones wrote.
She added: “However, in recent discussions with the Trump Organization, it indicated that it had determined that this loan never existed – and would therefore be removed from any future forms submitted to the Office of the President. “Ethics of Government (OGE) and that it would also be removed from subsequent versions of MAML,” Jones wrote, referring to the company’s filed financial statements.
Jones and the Trump Organization’s lawyer, Alan Garten, did not immediately respond to Business Insider’s requests for comment.
A “fairly brazen” plot
Garten told The Daily Beast that an “internal loan” in which Trump “lent money to the entity that he owns” does exist.
“This is one of several inaccuracies in the monitor’s letter, which we will address with the court,” Garten told the outlet.
However, according to the Daily Beast, as recently as October, Trump claimed in financial informations that he owes the sum to his company, Chicago Unit Acquisition LLC, indicating that his debt amounts to more than $50 million.
The discrepancies, if true, would indicate that information Trump filed with the federal government was intentionally submitted with inaccuracies related to a debt worth tens of millions of dollars. “It would appear, assuming Judge Jones’ letter is accurate, that this amounts to tax evasion,” tax attorney Martin Lobel told The Daily Beast.
He added: “This explains why Republicans have been so determined to cut the IRS budget, because they don’t want it to be able to audit transactions like this.”
The $48 million at the heart of this issue has already come under scrutiny. In 2016, the then-presidential candidate said The New York Times that he purchased an outstanding loan from several banks to whom he owed money and that instead of repaying it, he chose to keep the outstanding debt and pay himself interest on it.
However, in 2019, Mother Jones reported that a significant portion of Trump’s debt was forgiven by the hedge fund he owed money to after paying about half of it.
So instead of paying income taxes of up to 39% on the forgiven debt, the outlet reported, Trump “invented a loan – then parked it. “Debt parking is the process of purchasing debt using a corporation to avoid paying income taxes. The maneuver is legal as long as the borrower intends to repay the loan, but it is illegal to commit to it indefinitely.
Adam Levitin, a law professor at Georgetown University who specializes in commercial real estate financing, told Mother Jones at the time that the plot was “pretty brazen,” adding, “if he didn’t actually bought the loan, it’s just a garden fraud. “.
“While the reasons for this fake loan are still unknown, at least it misled the government for years about its finances,” Jordan Libowitz, communications director for Citizens for Responsibility and Ethics in Washington, told the Daily Beast. “It appears Trump knowingly and intentionally broke the law. The only question is how many laws.”
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