Podcast Summary
Judge Jones raises red flags over Trump Organization's financial reporting and tax evasion schemes: Retired judge Barbara Jones discovered inconsistent, improper, and erroneous reporting during her tenure as an independent financial monitor for the Trump Organization. The most concerning finding was an unlawful debt parking scheme, where Trump attempted to conceal debt forgiveness and avoid paying taxes on it.
Retired federal judge Barbara Jones's letter to Justice Arthur Engoron in the New York attorney general civil fraud case revealed serious concerns about the Trump Organization's financial reporting and potential tax evasion schemes. During her tenure as an independent financial monitor, she found instances of inconsistent, improper, and erroneous reporting. However, her role did not allow her to adjudicate these issues or go beyond flagging them. The most alarming finding was a footnote detailing an unlawful debt parking scheme. Donald Trump attempted to conceal debt forgiveness by filing lawsuits against his lenders, getting the debt forgiven, and then creating a new entity to hold the debt, thus avoiding paying taxes on the forgiven debt as income. This scheme highlights the importance of transparency and the potential consequences of financial misreporting.
Trump Organization's phantom debt of $48 million: The Trump Organization reported a $48 million loan that didn't exist, potentially subjecting them to fraud investigations.
The Trump Organization may have reported the existence of a $48 million loan between Donald Trump individually and an entity called Chicago Unit Acquisition, but later determined that the loan never actually existed. This revelation came to light in a report by retired federal judge Barbara Jones, who was appointed as an independent financial monitor to review the Trump Organization's finances. The loan, which was referred to as a "springing loan" or "bad boy loan," was discussed several times in previous filings, but no loan agreements were ever produced. The Trump Organization later indicated that the loan was a phantom debt, meaning it didn't actually exist, and it was removed from subsequent financial disclosures. While the removal of the debt may be allowed under certain circumstances, if it's determined that the debt was intentionally misrepresented, it could be subject to civil and criminal fraud investigations. This situation highlights the importance of transparency in financial reporting and the potential consequences of misrepresenting financial information.
Lending to High-Risk Borrowers: Trump's Example: Donald Trump, as a lender and borrower, raises concerns due to potential conflicts of interest with his lending entity Chicago Unit Acquisitions, and the importance of transparency and ethical practices in financial dealings is emphasized.
Lenders may apply more stringent loan terms for borrowers with a history of defaulting on loans. However, an intriguing example involves Chicago Unit Acquisitions, a lending entity owned by Donald J. Trump, who took out a $48 million loan from himself, characterizing himself as a high-risk borrower. This raises concerns due to potential conflicts of interest. Meanwhile, shifting gears, it's essential to support heart health, and Superbeats heart chews are an effective solution. With over 30,005 positive reviews, these chews, when paired with a healthy lifestyle, are clinically proven to promote normal blood pressure more effectively than a healthy lifestyle alone. They're delicious, convenient, and trusted by doctors, pharmacists, and cardiologists. Get a free 30-day supply and a full-size bag of turmeric chews by visiting Midasbeats.com. Lastly, public records show that Donald Trump owned 100% of Chicago Unit Acquisitions, as disclosed in his 2020 government ethics report. This information underscores the importance of transparency and ethical practices in financial dealings.
Trump Organization's Contradictory Statement on $50 Million Loan: Despite Trump's financial statements indicating a $50 million loan from the Trump Organization to Chicago Unit Acquisitions LLC in 2012, the Trump Organization now denies the existence of the loan, raising concerns about financial disclosure accuracy.
Donald Trump, through his entity DJT Holdings LLC, has a 100% ownership of Chicago Unit Acquisitions LLC. This entity reportedly had a loan of over $50 million from the Trump Organization in 2012, but the Trump Organization now claims the loan never existed. The loan is mentioned in Trump's financial statements, and the footnote indicates that it was a loan between Trump individually and Chicago Unit Acquisitions. The LLC was registered at Trump Tower, with Allen Weisselberg, a Trump Organization executive, signing the business forms. The inconsistency between the reported loan and the Trump Organization's current statement raises questions about the accuracy of financial disclosures.
Trump's Mysterious Loan in Chicago: Despite owing over $1B in debts, the specifics of a $50M loan Trump took in Chicago remain unclear, with potential involvement in a tax avoidance scheme adding to the controversy
During the construction of the Trump Skyscraper in Chicago, Donald Trump was unable to repay a significant portion of the loans he had taken out, leading him to sue his lenders and reach a settlement agreement where a large amount of the debt was forgiven. The controversy lies in the fact that the forgiven debt could be considered income and subject to taxation, but Trump has never fully explained the details of this loan or the settlement. This loan, worth over $50,000,000, is particularly mysterious due to the potential involvement of a tax avoidance scheme called debt parking. The ongoing scrutiny of Trump's debts, totaling over $1,000,000,000, has brought this loan into question, and the lack of transparency surrounding it adds to the intrigue.
Trump's Debt Forgiveness Scheme: Trump may have attempted to disguise debt forgiveness as a loan to evade taxes, potentially leading to further investigation
During the settlement of a debt owed by Donald Trump to Deutsche Bank and Fortress, it appears that instead of acquiring and parking the debt in an LLC as claimed, the debt was actually forgiven. Trump then attempted to characterize this forgiven debt as a springing loan to potentially avoid paying taxes and claim additional deductions. However, since the loan did not exist, this scheme may have been an attempt to double and triple dip, which is not allowed under tax laws. The implications of these actions, as determined by Judge Barbara Jones, could be significant and may involve further investigation.
Judge raises suspicions about Trump real estate deal, urges investigation: Judge Jones suspects potential fraudulent activity in a Trump real estate deal and urges NY AG to investigate. The deal's questionable nature adds to Trump University's legal issues, highlighting the importance of business transparency.
Judge Jones in the Trump University case has raised suspicions about a real estate deal involving Chicago Unit Acquisitions LLC and has urged the New York Attorney General to investigate potential fraudulent activity. Judge Jones noted that it's not her place to conclude whether fraud occurred but emphasized the importance of reporting suspicious activities. The deal between Trump and Trump over the acquisition of this LLC seems questionable, with concerns that the loan may not have even existed. The judge's letter serves as a roadmap for the investigation and highlights the shadiness surrounding this transaction. This development adds to the ongoing legal issues for Trump University and underscores the importance of transparency in business dealings. Stay informed by subscribing to the Midas Touch newsletter for the latest updates.
