- A letter from the court monitor in Donald Trump’s fraud trial shows he lied about a $48 million loan.
- On Monday, Trump’s lawyers responded, calling it a “demonstrable lie.”
- The team also provided a memo from the Trump Org’s legal department stating that the loan had been repaid.
Donald Trump is fighting back after a court watchdog memo suggested the former president may have committed tax fraud.
Former federal judge Barbara Jones wrote to a Manhattan Supreme Court judge as special supervisor in the Trump Organization fraud case. Arthur Engoron Trump’s team may have lied about the existence of the $48 million loan.
“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, then added: “However, in recent discussions with the Trump Organization, he has indicated that he has determined that this loan never existed.”
The Daily Beast For the first time on Sunday, Jones’ memo hinted that Trump was using a fraudulent $48 million loan as a vehicle to avoid paying income taxes.
“Assuming Judge Jones’ letter is accurate, this amounts to tax evasion,” tax lawyer Martin Lobel told The Daily Beast.
In a Monday filing, Trump’s attorneys rejected Jones’ findings, calling them “penetrable lies” and questioning the auditor’s ability to do his job, according to documents obtained by Business Insider. In a letter to the judge overseeing the case regarding Jones’ findings, Trump’s lawyer also complained about the $2.6 million Jones raised to oversee the organization.
“Monitor is now turning intangible accounting items into a narrative that continues to be his continued appointment and thereby receiving millions of dollars in exorbitant fees,” Trump’s lawyer, Clifford S. Robert, wrote.
“At no time in the Monitor’s six reports did it mention any financial reporting irregularities, suspicious activity, or suspected or actual fraud,” Trump adviser Christopher Kise told Business Insider. “The Jan. 26 report did not cite any accounting or other management standards, much less violations. Instead, in defiance of its mandate, it appears that the Monitor was asked to “discover” seven non-disclosure items, three non-compliances, 2.6 million dollars paid. five clerical errors.”
In a Friday report on its review financial information Provided to him by the Trump Organization, Jones writes documents that contain “incomplete” or “inappropriate” disclosures that contain numerous “errors.” According to the Daily Beast, back in October, Trump claimed that he owed this amount to his company in his financial disclosures and indicated that he owed more than $50 million.
However, Jones said the Trump Organization indicated to him that the credit “never existed” and “will be removed from future forms submitted to the Office of Government Ethics (OGE) and will also be removed from subsequent versions of the MAML.”
In Monday’s letter, Robert Trump said the Org “never said there was no credit.”
“Instead, they provided a copy of an internal memorandum stating that ‘no obligations or liabilities were outstanding’ on the loan at the time,” Robert wrote. “The deliberate mischaracterization of the monitor casts further doubt on its competence and veracity.”
The letter cited a memo from the Trump Orgs legal department dated December 4, 2023, which indicated that the $48 million loan was paid to 401 Mezz Venture LLC, not Trump personally. As the Daily Beast reported, the memo does not prove or disprove the existence of the loan.
The Trump team also hired a public accountant Jason Flemmons reviewing Jones’s report, which found no “suspected or actual fraud.”
Kise told BI that Jones’ report was a “joke.”
“Indeed, it is shocking that President Trump has been forced to pay millions for Monitor to prove what he has been saying all along, that there were no financial reporting violations, fraud, and simply no reason to allow this process of abuse to continue.” “, – Kise said.