An independent monitor added new allegations of financial misreporting to Donald Trump’s civil fraud trial as anticipation mounts for the judge’s decision on the fate of his family firm.
Former federal judge Barbara Jones submitted a report last week on how the Trump Organization represents its finances to lenders, the New York Times reported. The faults Jones claims she found include paperwork issues and questions surrounding a $48 million loan made between Trump and one of his companies.
The report could influence Judge Arthur Engoron, who is expected to hand down his ruling this week on the fraud claims against Trump and the Trump Organization. Jones was appointed as monitor after she was nominated by the New York Attorney General’s office and lawyers for Trump.
Jones said the issues she found “may reflect a lack of adequate internal controls.” The report also described typos, incorrect math and missing disclosures, along with a $48 million loan between Trump and one of his companies regarding his Chicago hotel Jones said she was told “never existed,” despite appearing on his presidential candidate disclosure forms.
Tax experts told The Daily Beast the loan discrepancy could be indicative of tax evasion.
Lawyers for the former president responded to Jones’ claims on Monday, saying they confirmed the loan did exist, but that nothing was owed on it. The legal team also questioned Jones’ credentials and claimed she was acting in bad faith to keep pulling in fees from the company.
The Trump Organization paid her $2.6 million for her monitoring services so far, according to Trump’s team.
A decision in Trump’s bench trial is pending, but Engoron could issue unprecedented penalties against the former president and his company. The judge previously ordered the “dissolution” of Trump’s companies in New York, without detailing what that meant.
Attorney General Letitia James, whose office brought the case, is seeking a $370 million penalty and a ban on Trump doing business in the state.
— Holden Walter-Warner
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