CNS News–A longstanding controversy surrounding a purported eight-figure loan related to Donald Trump’s Chicago skyscraper has resurfaced, prompting legal experts to suggest that it merits a criminal investigation. The loan, which has been a subject of scrutiny for nearly a decade, remains shrouded in mystery, with discrepancies in its size, parties involved, and even its existence.
For years, financial journalists have been puzzled by a loan between Donald Trump and an entity known as Chicago Unit Acquisition LLC, which is linked to his 92-story Chicago tower. Trump regularly disclosed this loan on sworn documents submitted to the federal government’s Office of Government Ethics (OGE) during his presidency, indicating that he owed over $50 million to his own limited liability company.
The latest development in this ongoing saga came from a court-appointed monitor overseeing Trump’s business empire, former federal judge Barbara Jones. Jones contended that the loan “never existed” and that there were “no loan agreements that memorialize” it. The revelation that the loan may not have existed has raised concerns and potential legal implications.
Legal experts and advocacy groups have pointed to the possibility that Donald Trump may have been dishonest in his sworn statements, which could lead to allegations of “tax evasion.” This suspicion stems from the fact that Fortress, a financial firm backing Trump’s Chicago Hotel and Tower, allegedly canceled roughly half of a $100 million loan to him in 2012, which would have constituted reportable, taxable income.
NEWS: Discrepancies in a $48 Million Loan Involving Trump and His Chicago Tower Should be Criminally Investigated: Legal Experts – by @KlasfeldReports @TheMessenger https://t.co/Dz7XPpY8GA
— Darren Samuelsohn (@dsamuelsohn) January 30, 2024
The Daily Beast suggested that Trump may have avoided paying taxes by making it appear as if the loan had been purchased rather than canceled. This raises questions about whether the loan forgiveness occurred while Trump was still a New York resident, which could have both federal and New York state income tax implications. Trump’s legal team, led by attorney Clifford Robert, has vehemently denied the monitor’s assertion that the loan “never existed.”
They pointed to an internal Trump Organization memorandum that supposedly reflects a $48 million “springing loan” between Chicago Unit Acquisition LLC and 401 Mezz Venture LLC. However, this memo cites a lower loan amount than what Trump reported on official records, and it does not suggest that Trump was personally involved.
Legal experts find Trump’s explanation lacking in clarity and raising more questions than answers. Jordan Libowitz, a spokesperson for Citizens for Responsibility and Ethics in Washington (CREW), highlighted the evolving explanations for the loans, from Trump claiming to have loaned the money to the Chicago LLC to later suggesting that the LLC owed him that amount.
Former federal prosecutor Mitchell Epner compared Trump’s position to the famous Schrödinger’s cat paradox, where it seems to be both true and false simultaneously. Epner emphasized that if the loan is considered canceled, Trump might owe significant taxes, and if it is not canceled, there should be documents showing that he still owes on it.
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He suggested that there needs to be a thorough investigation to determine whether tax evasion occurred. Renato Mariotti, a former federal prosecutor, raised concerns about the lack of documentation for a loan of this magnitude. He suggested that the absence of clear records could warrant an investigation into potential fraud, with a focus on intent.