The Southern District of New York, led by District Attorney Cy Vance, has taken their investigation into a new turn by issuing subpoenas for documents related to loans Trump received for his Chicago skyscraper, a loan that totaled over $150 million but received loan forgiveness on $100 million of the total. At issue is not the reason for the loan forgiveness, but whether or not Trump claimed that as income, which is required by federal tax law. This new direction indicates that the investigation is continuing to expand into numerous areas along Trump’s shady business past.
SCOOP: The Manhattan DA's office subpoenaed documents from an investment company that loaned Trump Org millions for its Chicago skyscraper, a sign the probe into Trump's finances continues to expand, people familiar w/ the investigation tell @KaraScannell https://t.co/z8pwpeXPJz
— Pervaiz Shallwani (@Pervaizistan) March 8, 2021
It was revealed on Monday by CNN that the subpoenas were issued late last year, although the loan company is not at this time suspected of any wrongdoing. The subpoena indicates that there may be a discrepancy in the recently obtained Trump tax returns, where he should have reported the $100 million loan forgiveness as income. If previous tax returns are any indication, however, Trump claimed more massive losses than income most years, leaving him with minimal to no tax debt at all.
According to CNN:
‘Prosecutors issued the grand jury subpoena to Fortress Investment Management late last year, the people said, as part of their wide-ranging investigation into former President Donald Trump and his company.
‘Investigators’ interest in how Trump and his company treated the Chicago loan is an expansion of an inquiry that encompasses multiple aspects of the Trump business.’
Breaking Re Trump NY Criminal Investigation: The CFO is always a key person to flip. He can be a fall guy for the CEO or a cooperator, but not both. Will Weisselberg become the next Andy Fastow?
via @NYTimes https://t.co/TqJpBbVqFV
— Andrew Weissmann (@AWeissmann_) March 2, 2021
The reason for the forgiveness, which happened during the financial crisis that led banks to try and recoup losses at any price in order to keep money coming in, means that Trump directly profited from the crisis at the time. Just as he has used 9/11 as a campaign prop, inventing tales of his heroic actions to lend a hand, Trump didn’t seem to mind benefiting from other American tragedies, as well.
‘By 2012, Fortress subsequently forgave more $100 million of the loan, which, including interest and fees, was worth about $150 million, according to court filings. The forgiveness was done to secure a partial re-payment of about $45 million at a time when the real estate market was suffering from the financial crisis.
‘Prosecutors with Manhattan District Attorney Cy Vance’s office are looking into whether Trump and the Trump Organization recorded the loan forgiveness as income, as required by the Internal Revenue Service, and paid the appropriate taxes, the people say.’
Fulton County District Attorney Fani Willis, who's investigating whether Trump illegally interfered with Georgia's 2020 election, has hired an outside lawyer who's a national authority on racketeering. https://t.co/NF4HugArMR
— Kyle Griffin (@kylegriffin1) March 8, 2021
Indications that Trump’s income was not sufficiently reported are not new. Trump’s former personal attorney and “fixer” Michael Cohen told a court that Trump regularly cheats on his taxes, inflating the value of his properties on loan documents and devaluing them on tax documents in order to lower his tax bill. The Chicago tower loan has raised suspicions for some time, as well.
‘New York Attorney General Letitia James first raised questions about Trump’s handling of the Fortress loan last fall when her office disclosed in a court filing that it was investigating whether Trump and the Trump Organization recorded the forgiven amount as income and paid taxes or whether there was some explanation as to why that wouldn’t be required.’
Just as Vance did with his hire of Pomerantz, this is an ominous sign for Trump & a great sign for the rule of law & holding criminals/traitors like Trump accountable. Give these offices time but indictments will most probably be filed. Trump will be arrested & booked in 2021. https://t.co/6HfJRaLAmd
— Richard Signorelli (@richsignorelli) March 6, 2021