NY Attorney General Looks to Open Probe Into Whether Cohen Violated Tax Law: Source - NBC Bay Area
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President Donald Trump

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NY Attorney General Looks to Open Probe Into Whether Cohen Violated Tax Law: Source

Cohen owes at least $1.4 million to the IRS after pleading guilty Tuesday to evading federal taxes

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    Michael Cohen Pleads Guilty

    Michael Cohen, a former personal attorney for President Donald Trump, plead guilty to tax fraud charges as well as campaign finance charges stemming from hush money related to Stormy Daniels and Karen McDougal. (Published Tuesday, Aug. 21, 2018)

    New York's attorney general is looking to open a criminal investigation into whether Michael Cohen violated state tax law.

    A person familiar with the matter told The Associated Press on Thursday that Attorney General Barbara Underwood recently requested a criminal referral from the state tax department to investigate and potentially file charges against Cohen, the former personal attorney for Donald Trump.

    The person spoke on the condition of anonymity because the person was not authorized to speak publicly.

    A lawyer for Cohen declined to comment on the development, which was first reported by The New York Times.

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    Two members of President Donald Trump's inner circle are now facing federal prison time, a blow to the current administration. Moreover, former Trump lawyer Michael Cohen would not take a presidential pardon if it was offered, according to his attorney.

    (Published Wednesday, Aug. 22, 2018)

    Cohen owes at least $1.4 million to the IRS after pleading guilty Tuesday to evading federal taxes. It's unclear if he also misstated his income on state returns.

    The attorney general must get a referral to opening a criminal probe. Such requests are almost always granted.

    Cohen personally called tax officials in New York on the same day he received a subpoena from state investigators looking into the Trump Foundation.

    A state official confirmed the call from the former personal attorney and "fixer" for President Donald Trump, but would not divulge the details of the exchange, which came Wednesday just hours after Cohen received the subpoena. The official was not authorized to discuss the case publicly and spoke on condition of anonymity.

    The Associated Press first reported the existence of the subpoena on Wednesday. It was issued as part of the state's ongoing investigation into Trump and the Trump Foundation to determine whether the Republican commander in chief or his charity broke state law or misstated their tax liabilities.

    Cohen pleaded guilty in Manhattan federal court Tuesday to campaign-finance violations and other charges, saying he and Trump arranged the payment of hush money to porn star Stormy Daniels and a former Playboy model to influence the election.

    Trump: Cohen Lied About Hush Payment Involvement

    [NATL] Trump: Cohen Lied About Hush Payment Involvement

    President Donald Trump is accusing his former attorney of lying, saying Thursday on "Fox and Friends" he did not direct Michael Cohen to make hush money payments to women claiming to have had affairs with him. The president says Cohen lied to prosecutors to reduce his sentence on bank fraud and campaign finance violation charges.

    (Published Thursday, Aug. 23, 2018)

    The subpoena was issued after Cohen's attorney, Lanny Davis, said on television that his client has information that would be of interest to investigators in Washington, as well as New York state.

    If evidence of alleged crimes is found, the matter could be referred to state Attorney General Barbara Underwood, a Democrat, who could pursue criminal charges and seek the release of Trump's tax returns. The state investigation is seen as a potential backstop to the federal probe by special counsel Robert Mueller, since state charges typically cannot be cleared by a presidential pardon.

    A loophole in state law, however, could make it harder for state officials to pursue anyone pardoned by Trump. The state's double jeopardy law, which protects people from repeat prosecutions for the same allegations, contains several exceptions allowing prosecutions to go ahead — but does not specifically list an exception allowing state prosecutors to move ahead with charges when a person has been pardoned for similar federal crimes.

    Underwood and Democratic Gov. Andrew Cuomo have called on lawmakers to close the loophole. The Legislature is not scheduled to be back in Albany until January.

    Cuomo told reporters on Thursday that he believes "it would be an impeachable offense" if Trump used his pardon power to prevent someone like Cohen from implicating him in a crime. He said state law must be clarified to ensure that "even if the president pardons someone, they can still be prosecuted in the state of New York."

    A spokeswoman did not immediately respond to questions about whether Cuomo would call a special session.

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    (Published Tuesday, Nov. 20, 2018)

    The state's investigation follows Underwood's lawsuit alleging Trump illegally tapped his Trump Foundation to settle legal disputes, help his campaign for president and pay for personal and business expenses, which included spending $10,000 on a portrait of himself.

    The attorney general's office is seeking $2.8 million in restitution and other unspecified penalties in its civil suit. It said that it had referred its findings to the IRS and the Federal Election Commission for possible further action.

    Besides his work for Trump, Cohen spent years amassing yellow cab medallions, the hard-to-get licenses adorned to the hoods of taxis in New York and Chicago that were once worth a fortune, but whose values have plummeted in recent years due to competition from ride-hailing services like Uber and Lyft.

    Many medallion owners who used them as collateral to borrow money are now in deep financial trouble, unable to pay back creditors.

    Once such taxi magnate, Evgeny Freidman, nicknamed the "Taxi King" by New York's tabloid newspapers, managed Cohen's medallions for years even after he was charged by state prosecutors last summer with pocketing more than $5 million in taxes.

    Freidman, who told a real estate publication last year the two men were so close that Cohen helped him name his eldest son, pleaded guilty in May to a single count of tax fraud. As part of the deal, Freidman agreed to cooperate in federal and state investigations, according to a person familiar with the matter.

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    [NATL] Ivanka Trump Used Personal Email for White House Work: Report

    Emails uncovered by a liberal watchdog group found that first daughter Ivanka Trump, a presidential adviser, used a personal email account to send hundreds of emails to White House aides, cabinet members and assistants during her transition into government.

    (Published Tuesday, Nov. 20, 2018)