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Michael Cohen is Now Reportedly Under Investigation for Tax Fraud

As Michael Cohen continues to deal with a variety of legal troubles, a new report indicates he’ll have to add alleged tax fraud to the list.

The Wall Street Journal reports that New York City federal prosecutors are investigating the possibility Donald Trump‘s former personal attorney underreported his taxi-medallion business income in his tax returns. This news comes as federal prosecutors are still investigating Cohen over his questionable dealings, alleged bank fraud, and possible violations of campaign finance law when he paid off Stormy Daniels in 2016.

A source close to the investigation suggests Cohen might’ve tried to conceal hundreds of thousands of dollars he received through various payments in the last five years. Authorities also want to know how Cohen got the financing for his business, since it’s possible he overstated the value of his collateral assets and obtained bank loans without proper documentation.

From WSJ:

Convictions for federal tax- and bank-fraud may carry potentially significant prison sentences, which could put additional pressure on Mr. Cohen to cooperate with prosecutors if he is charged with those crimes, according to former federal prosecutors.

As part of the inquiry into Mr. Cohen’s relationships with banks, federal authorities have been investigating whether Mr. Cohen made misrepresentations or false statements on loan applications, people familiar with the matter said.

Lanny Davis, Cohen’s legal representative, declined to comment “out of respect for the ongoing investigation” into his client.

[Photo via Getty Images]

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