- The court-appointed watchdog in Trump’s fraud case said his company made “false” statements.
- According to The Daily Beast, having a record is an indication that he may have committed tax fraud.
- The letter says that Trump may have lied about having a $48 million loan.
A court-appointed special monitor overseeing Donald Trump’s business fraud case in New York is a bombshell hinting that the former president may have engaged in massive tax evasion, according to a memo in a letter written by former federal judge Barbara Jones. “The Daily Beast” published a new report.
The letter, first reported by The Messenger, was sent Friday to update Jones’ findings in Manhattan Supreme Court Justice Arthur Engoro’s review of the former president’s business dealings through the Trump Organization.
Jones wrote that the financial information provided to him by Trump’s team contained “incomplete” or “inconsistent” disclosures that contained numerous “errors.” However, he calls his investigation of Trump and his businesses “collaborative.”
But buried in the sixth note of the 12-page letter, the Daily Beast revealed a hint that Trump may have evaded $48 million in income taxes, while Jones wrote the huge amount Trump claims he owes for years. as a loan to one of his companies – never existed.
“When I inquired about this loan, I was informed that there is no loan agreement mentioning the loan, but it is believed to be a $48 million loan between Donald J. Trump and Chicago Unit Acquisition.” Jones wrote.
He added: “However, in recent discussions with the Trump Organization, it has determined that this credit never existed and will therefore be removed from any future forms submitted to the Office of Government Ethics (OGE) and also removed from subsequent versions of the MAML,” Jones said in the company’s statement. he wrote referring to the corporate financial reports he submitted.
Alan Garten, a lawyer for Jones and the Trump Organization, did not immediately respond to Business Insider’s requests for comment.
“Very shameless” plot
Garten told The Daily Beast that it was “internal debt” where Trump “gave money to an entity that he owns.”
“This is one of many inaccuracies in the monitor’s letter, and we will take it up with the court,” Garten said.
However, Trump listed his debt at more than $50 million in his financial disclosures in October, claiming he owed that amount to his company, Chicago Unit Acquisition LLC, according to the Daily Beast.
The discrepancies, if true, indicate that Trump’s disclosures to the federal government were intentionally misrepresented about the debt, amounting to tens of millions of dollars. “Assuming Judge Jones’ letter is accurate, this amounts to tax evasion,” tax lawyer Martin Lobel told The Daily Beast.
He added: “This explains why the Republicans are going to cut the budget of the IRS because they don’t want it to be able to audit these kinds of transactions.”
The $48 million at the heart of this matter has previously been investigated. said the then presidential candidate in 2016 The New York Times stated that he received an outstanding loan from several banks to which he owed money and instead of retiring it, he chose to keep the debt outstanding and pay himself the interest on it.
However, in 2019 Mother Jones Trump said he was forgiven by the hedge fund he owed after paying off about half of a significant portion of his debt.
So instead of paying up to 39% income tax on the forgiven debt, Trump “invented credit and then parked it.” Debt parking is the process of acquiring debt using a corporation to avoid paying income taxes. Maneuvering is legal as long as the borrower intends to repay the loan, but engaging indefinitely is illegal.
Adam Levitin, a law professor at Georgetown University who specializes in commercial real estate finance, told Mother Jones at the time that the plot was “pretty brazen,” adding, “If he didn’t actually get the loan, it’s just garden-variety fraud.”
Jordan Libowitz, director of communications for Citizens for Responsibility and Ethics in Washington, told The Daily Beast: “While the motives behind this fraudulent loan claim are still unknown, at the very least he has misled the government about his finances for years.” “It appears that Trump knowingly and willfully broke the law. The only question is how much law.”