Legal experts are urging a criminal investigation into the alleged eight-figure Chicago loan tied to Donald Trump’s Chicago skyscraper. The loan is at the center of a longstanding dispute, with its size, parties involved, and even existence being questioned.
In the latest twist of Trump’s civil fraud case, the court-appointed monitor, Barbara Jones, suggested the loan may have never existed, leading to speculation of potential tax evasion. The Daily Beast reported that Trump may have avoided taxes by making it seem like the loan was purchased rather than canceled.
“When I inquired about this loan, I was informed that there are no loan agreements officially documenting the transaction. Instead, it was perceived to be a loan between Donald J. Trump individually and Chicago Unit Acquisition for $48 million,” Jones stated.
Jones’ report also brought attention to various paperwork issues, such as incomplete disclosures, typos, and mathematical errors.
Does the Chicago loan exist?
Trump’s lawyer, Clifford Robert, disputes the monitor’s claim, pointing to an internal memo reflecting a $48 million “springing loan.” However, legal experts find Trump’s explanations add more uncertainty than clarity.
Jordan Libowitz from Citizens for Responsibility and Ethics in Washington (CREW) highlighted the evolving explanations, expressing concern that Trump knowingly filed untrue claims, potentially leading to civil and criminal penalties.
Former federal prosecutor Mitchell Epner compared Trump’s defense to Schrodinger’s cat, emphasizing the need for an explanation to avoid tax evasion suspicions. If the loan forgiveness occurred while Trump was a New York resident, he could face both federal and state income tax issues.
The controversy arises amid Trump’s civil fraud trial, where New York Attorney General Letitia James seeks a lifetime ban from the New York real estate industry and a $370 million payment in “ill-gotten gains.” The trial’s anticipated ruling by Manhattan Supreme Court Judge Arthur Engoron adds further intrigue to the unfolding saga.
Cover Photo: Wikipedia