Michael Cohen puts up Park Avenue apartment as collateral against debts

The move is a sign of the mounting legal pressures facing Trump's embattled lawyer

New York /
May.May 09, 2018 11:15 AM

Michael Cohen and Trump Park Avenue at 502 Park Avenue (Credit: Getty Images and CityRealty)

Michael Cohen, the longtime attorney to President Trump who now finds himself facing mounting legal issues as federal prosecutors pick through his businesses, has put up his Park Avenue apartment as collateral for loans previously secured by his struggling New York taxi business.

Through his taxi company, Cohen and his wife had loans worth as much as $12.8 million to Sterling National Bank that had been extended in 2014. But now that the value of those medallions have nosedived, as much as 80 percent since Uber and Lyft entered the New York market, and a mortgage document filed last month shows the apartment being offered as additional collateral, according to Bloomberg. The filings show the family apartment, a consolidation of three units on the 10th floor of Trump Park Avenue at 502 Park Avenue, is valued at $9 million.

“With all due respect, you don’t remotely understand my loan,” Cohen responded in a text message to the news outlet.

The move spells out further pressures on the embattled lawyer, who paid $130,000 to adult film actress Stormy Daniels in 2016 after she threatened to go public with claims of an affair with Trump. In a news report Tuesday, Cohen is said to have received $500,000 through the same shell company he used to pay Daniels by a company tied to a Russian oligarch, Viktor Vekselberg. The payment to the company, Essential Consultants LLC, was one of several received including payments by AT&T, which is seeking to close on a merger with Time Warner, according to The New York Times.

It follows a raid by FBI agents on an apartment last month at the Loews Regency in Manhattan where Cohen was staying. Federal agents were seeking records relating to his business activities and investigating possible bank fraud. Cohen sought a temporary restraining against the federal investigators to limit the scope of records and correspondences they can review, in part by asserting attorney-client privilege. But a U.S. District Attorney rebuffed his request, adding “It is neither apparent (i) that Cohen, in his capacity as an attorney, has many, or any, attorney-client relationships other than with President Donald Trump.” [Bloomberg]David Jeans


Related Articles

arrow_forward_ios
John Catsimatidis and 670 Pacific Street (Getty, StreetEasy)
Catsimatidis notches win for landlords in 421a suit; tenants vow to appeal
Catsimatidis notches win for landlords in 421a suit; tenants vow to appeal
Robert Herjavec and One57 (Getty, Beyond My Ken/Wikimedia)
Robert Herjavec buys One57 condo at $13M discount
Robert Herjavec buys One57 condo at $13M discount
Realtors no longer heart “love letters” to sellers
Realtors no longer ♡ “love letters” to sellers
Realtors no longer ♡ “love letters” to sellers
1 Swan Landing
5 Gatsby-esque homes fit for the Roaring 2020s
5 Gatsby-esque homes fit for the Roaring 2020s
The tenants who won the affordable housing lottery at 15 Hudson Yards say the units are in an “entirely separate part of the building and with a different address.” (Hudson Yards, District Court of New York)
Lawsuit claims 15 Hudson Yards discriminates with “poor doors”
Lawsuit claims 15 Hudson Yards discriminates with “poor doors”
Home sales rise in June, snapping four-month downward streak
Home sales rise in June, snapping four-month downward streak
Home sales rise in June, snapping four-month downward streak
Housing investors took advantage of a hot market, collectively purchasing the group’s most homes in a quarter since 2000. (iStock)
Housing investors went on spending spree in second quarter
Housing investors went on spending spree in second quarter
From left: DigitalBridge CEO Marc Ganzi, Donald Trump,  and Tom Barrack (Getty, Ganzi by Sonya Revell)
De-Colonized: How Tom Barrack’s firm broke with its founder
De-Colonized: How Tom Barrack’s firm broke with its founder
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...