WASHINGTON–Federal prosecutors have zeroed in on $20 million in loans obtained by President Trump's former personal lawyer, Michael Cohen, from financial institutions that include a credit union at which the former CEO was allegedly involved in a long-lasting fraud.
The loans are related to taxi businesses owned by Cohen and his family and were taken out from Melrose Credit Union and Sterling National Bank.
Investigators are probing whether Cohen committed bank and tax fraud, as well as possible campaign law violations linked to a $130,000 payment to adult film star Stormy Daniels, reported the New York Times. Cohen has not been charged with any crime.
The investigation is trying to determine whether Cohen misrepresented the value of his assets to obtain the loans, according to the Times and U.S. News & World Report. Investigators want to know how Cohen handled the income and whether he failed to report it to the IRS.
The probe is in its last phase and prosecutors are considering filing charges by the end of August.
According to several media outlets, Melrose Credit Union and Sterling National Bank were named in search warrants for raids that searched Cohen's office, home and a hotel room.
The investigation is only the latest problem for Queens, N.Y.-based Melrose Credit Union, where NCUA is alleging its former CEO, Alan Kaufman, over a period of decades provided personal approval of more than $185 million in questionable loans, obtained free luxury trips and other travel for himself and wife from the New York Jets and other vendors, was given a free residence, OK’d a bogus naming rights deal, and even secured free limousine rides for himself and his extended family.
As CUToday.info reported here in detail, NCUA has filed administrative charges against Kaufman, and seeking at least $3.5 million in restitution.
Kaufman was removed for cause by the board in July of 2016, and removed from the board in Oct. 25 of that same year. The credit union, which primarily made taxi medallion loans, was placed into conservatorship in February of 2017 due to loan losses and being rated a CAMEL 4.