Fraud

Report: Cohen May Be Indicted for Financial Fraud

JM Ashby
Written by JM Ashby

It's been months since prosecutors raided the home and offices of Trump's longtime henchman Michael Cohen and now we finally know what he's likely to be charged for.

The New York Times reports that investigators have identified over $20 million in potential bank and tax fraud.

The bank loans under scrutiny, the total of which has not been previously reported, came from two financial institutions in the New York region that have catered to the taxi industry, Sterling National Bank and the Melrose Credit Union, according to business records and people with knowledge of the matter, including a banker who reviewed the transactions.

Federal investigators in New York are seeking to determine whether Mr. Cohen misrepresented the value of his assets to obtain the loans, which exceed $20 million.

They are also examining how he handled the income from his taxi medallions and whether he failed to report it to the Internal Revenue Service.

In hindsight, the focus on Cohen's taxi medallions seems obvious.

Cohen reportedly obtained loans using his medallions as collateral. And that wouldn't necessarily be suspicious on its own, but Cohen valued his medallions at $1 million each and claimed they generated $1 million in income each year which is virtually impossible unless they were transporting something other than people.

The Times also reports that investigators are examining whether Cohen violated campaign finance laws by paying hush money to Trump's accusers, but it appears they're much closer to charging Cohen for financial fraud than campaign finance violations.

Federal prosecutors are expected to indict Cohen by the end of this month but, if they don't meet that self-imposed deadline, the charges may be delayed until after the midterm election.

  • muselet

    Good.

    –alopecia

  • Ken Kohl

    I’m confused… If Cohen was “loaned” $20 million-ish, why did he have to hit HELOC to pay Stormy Daniels?

  • katanahamon

    Maybe I missed it, but Cohen is facing a second trial in September also. This guy is guilty as guilty can be, but I’m afraid the judge in his first trial, jurors deliberating as we debate, has skewed the trial and we may see a hung jury or acquittal. Situation is this is the third day of deliberations, they broke for the weekend without being sequestered, and sent a note to the judge including a question to “redefine reasonable doubt.”

    • simpfan

      You’re thinking of Manafort.

      • Wildson

        Its hard to keep track of all those swamp creatures being trapped…

      • katanahamon

        Ugh…you’re right! So many criminals…so much confusion!! I’ve edited to correct..how funny…

    • I can’t even fathom why they would think Manafort isn’t guilty. I mean, how could a prosecutor possibly eff up that case?!?! There was an absolute ton of evidence.

      • katanahamon

        Yeah..not the prosecutor’s fault..the judge is a partisan Repub..check out his yelling at the prosecution, then getting it wrong and having to apologize..we can’t even count on an impartial judge anymore…

      • Username1016

        I’m thinking they’re taking extra time because they have to decide separately on each of 18 counts. Not because they’re arguing about acquitting him entirely.

        • More news today seems to indicate that is correct. They appear to be deadlocked on a single count.

          • Username1016

            Cross fingers, but I do think it’s way more likely they’ve convicted on most counts and are arguing over one, than if they’ve acquitted on most counts and are arguing over one. But, wow, take NOTHING for granted after November 2016 😛