New York prosecutors investigate loan of Trump skyscraper in Chicago: report

Manhattan District Attorney’s investigation into the former President TrumpDonald Trump Trump promises ‘More money for RINOS’, instead encouraging donations to his PAC Federal judge judges ‘QAnon shaman’ too dangerous to be released from prison Pelosi says the Capitol riot was the one of the most difficult moments of his career PLUSThe company’s finances are said to have widened as prosecutors subpoenaed documents to an investment firm that loaned millions of dollars to the Trump organization for its Chicago skyscraper.

CNN, citing people familiar with the matter, reported that prosecutors issued a grand jury subpoena to Fortress Investment Management late last year as part of their investigation into Trump’s finances. Fortress Investment previously issued a $ 130 million loan to the Trump Organization for the construction of what would become Trump Tower Chicago, CNN noted.

According to court documents cited by the network, in 2012 Fortress canceled more than $ 100 million of the original loan, which at the time totaled around $ 150 million, including interest and fees.

The pardon was made “to secure a partial repayment of around $ 45 million at a time when the real estate market was suffering from the financial crisis,” CNN reported.

Prosecutors are reportedly now focusing on how the Trump organization handled the Fortress loan. They are investigating whether Trump and the organization documented the pardon as income – which is required by the Internal Revenue Service – and paid taxes on the money, CNN reported, citing people familiar with the matter.

The Trump organization did not respond to CNN’s request for comment. CNN noted, however, that Alan Garten, the legal director of the Trump organization, told the New York Times last October that the company and Trump correctly accounted for and paid all taxes owed on the debts forgiven.

The Times, which obtained portions of Trump’s tax return data last September, reported that his forgiven debts were recorded as canceled debts on his tax returns. According to the Times, Trump took advantage of a clause in the Great Recession bailout that “allowed income from canceled debts to be deferred for five years and then spread over the next five.”

The developments come as the office of Manhattan District Attorney Cyrus Vance Jr. (D) gained access to several years of Trump’s tax records after an effort by the former president to keep them out of the hands of prosecutors.