Trump accused of making false statements about $50M Chicago tower loan

Former President Donald Trump is on trial in New York, and in Chicago, he’s accused of lying about a $50 million loan in federal financial disclosure reports.

A watchdog group is going after Trump, claiming he made  “material false statements” regarding a loan tied to his Chicago skyscraper, at 401 North Wabash Avenue.

Citizens for Responsibility and Ethics in Washington has called upon the Justice Department and the FBI to investigate the loan, connected to the development of the Trump International Hotel and Tower along the Chicago River, the Chicago Sun-Times reported. 

The organization’s president Noah Bookbinder suggested the loan may be “nonexistent.” Trump had consistently listed the loan as a liability of Chicago Unit Acquisition LLC in personal financial disclosures from 2015 to 2023, overlapping with his tenure as president. 

“There is now credible evidence, however, that Mr. Trump’s statements regarding the Chicago loan were not true,” Bookbinder wrote in his letter to federal authorities.

The absence of a public record for such a significant loan raises red flags. Bookbinder speculated that Trump’s alleged false reporting could be linked to a “tax-avoidance scheme.” 

A January report from a court-appointed monitor overseeing Trump’s financial statements hints that the loan might not exist. The court-appointed monitor stemmed from a New York civil fraud case in which Trump was found to have overstated his wealth.

The federal disclosure system plays a crucial role in assessing the financial integrity of candidates and presidents, enabling the identification of potential conflicts of interest and national security risks, Bookbinder said.

Despite CREW’s call for investigation, Trump’s camp has remained silent on the matter, the outlet reported. 

Trump is the first former U.S. President to be tried on criminal charges; opening statements in his trial for allegedly bribing an adult film actress is expected to start next week.

The Trump Organization is engaged in several legal battles connected to its 92-story Chicago tower. Last year, Illinois Attorney General Kwame Raoul amended a 2018 lawsuit accusing the building’s owners of operating a cooling water system without the required permits, and of underreporting water discharge levels into the river. In addition, the attorney general’s office alleges that the building owners have been discharging water into the river without a National Pollutant Discharge Elimination System permit, which is mandated by federal law. 

Two environmental groups, Sierra Club and Friends of the Chicago River, sued Trump’s company last year, claiming that the tower is in violation of the federal Clean Water Act. It was the second lawsuit that the groups filed against Trump in five years. 

Last month, the Trump Organization sued the building’s insurer, Allianz Global Risks US Insurance, claiming that an environmental protection policy leaves it on the hook for the pollution.

—Quinn Donoghue 

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