Even a Month After Leaving Office, 'Trump' Dominates US News... Tax Evasion Investigation Accelerates

New York Prosecutors Obtain Trump's Tax Records for the First Time
NYT "Trump Did Not Pay Income Tax for 11 Years"

Former U.S. President Donald Trump [Photo by AP Yonhap News]

[Asia Economy Reporter Kim Suhwan] Media attention on former U.S. President Donald Trump, who has been out of office for over a month, remains intense. Although the Senate officially ended the impeachment phase by rejecting Trump's impeachment on the 13th, investigations into various criminal charges against him, including tax evasion and financial fraud, are still ongoing. Since he became a private citizen after leaving office, the 'shield' that could have checked the investigations has disappeared.

In response, former President Trump has labeled the investigations against him as "political retaliation," rallying his supporters to weaken the momentum of the investigations through public opinion campaigns. Nevertheless, experts widely agree that the likelihood of his indictment is high. Former federal prosecutor Talil Fahadian stated, "The ongoing investigations against former President Trump are not a matter of politics," adding, "Once clear evidence is secured, it is only a matter of time before Trump is indicted."

Trump Under Investigation for Tax Evasion After Asset Valuation Manipulation, Investigation Tightens

The Manhattan District Attorney's Office, conducting a tax evasion investigation against former President Trump, obtained Trump's tax records on the 22nd, accelerating the investigation. The records obtained reportedly include detailed information on how Trump assessed the value of his assets during the tax payment process. Prosecutors expect that analyzing these documents will reveal whether Trump arbitrarily manipulated asset values to evade tax payments.

Previously, Michael Cohen, Trump's personal lawyer, testified before Congress that Trump and his company artificially adjusted asset values to secure larger loans or reduce taxes. The Manhattan DA's acquisition of Trump's tax records comes a year and a half after the investigation began in August 2019. A prosecutor stated, "We are examining allegations of tax evasion, insurance fraud, and submission of false documents to financial institutions involving Trump and his company." CNN evaluated that "the acquisition of tax records allows prosecutors to intensify the investigation."

Trump had previously pledged to disclose his tax payment records during the election process but did not release them even upon leaving office. This broke the tradition where all presidents had disclosed their tax records.

There is growing interest in whether the tax records obtained by prosecutors will be made public. New York State generally treats investigation-related records as confidential, but if prosecutors include the tax records in the indictment when charging Trump, the public will be able to view them.

NYT: "Trump Paid No Federal Income Tax for 11 Years"

Last year, the New York Times (NYT) obtained and reported on 20 years of Trump's federal tax payment records ahead of the presidential election. According to the NYT, Trump did not pay any federal income tax for 11 years. Additionally, expenses such as home maintenance, golf costs, and private plane purchases were all treated as corporate expenses, resulting in tax exemptions.

The most notable tax evasion allegation involves Trump receiving a $73 million (approximately 82 billion KRW) tax refund on earnings from the TV program "The Apprentice." At the time, Trump claimed massive losses due to business failures and requested a tax refund. However, suspicions arose that his financial losses were manipulated to inflate the refund amount. The NYT reported that if the IRS audit, ongoing for 10 years, concludes, Trump could be required to pay over $100 million (approximately 110 billion KRW).

Additionally, there are allegations that Trump and his company received improper gains totaling $26 million (approximately 3 billion KRW) by charging a 20% "consulting fee" when securing business contracts.

The current investigation began with allegations that Trump paid large hush money to two individuals?a former porn actress and an adult magazine model?who claimed to have had extramarital affairs with him before the 2016 election. The investigation, initially focused on campaign finance violations, has since expanded to include allegations of tax evasion and insurance fraud.

Moreover, the Manhattan DA has summoned employees of Deutsche Bank and insurance broker Aon, who have long conducted business with Trump, applying comprehensive pressure on the former president. Deutsche Bank reportedly lent Trump a total of $300 million (approximately 340 billion KRW).

Prosecutors are also investigating employees of Ladder Capital, which loaned Trump $100 million (approximately 110 billion KRW), and plan to investigate allegations that Trump's company paid $750,000 in consulting fees to his eldest daughter Ivanka Trump.

Meanwhile, Trump strongly opposes the investigation, calling it a "political witch hunt." In a statement released on the 22nd immediately after the Supreme Court's decision to submit Trump's tax records, he claimed, "No clear evidence has been revealed regarding the tax evasion allegations against me. This investigation started with political motives."

Prosecutor Cyrus Vance Leading Trump Investigation... Expert in Corruption Crimes

Manhattan District Attorney Cyrus Vance [Photo by Reuters]

As the investigation into the former president progresses, attention is also focused on Cyrus Vance, the Manhattan District Attorney leading the probe. Elected in 2009 with an overwhelming 91% of the vote, he has handled major corruption cases in the Manhattan area for over a decade. One of the prominent cases he led was the indictment of Paul Manafort, Trump's presidential campaign chairman, on 16 charges including financial fraud in 2019.

Additionally, he successfully prosecuted serial rapist Vincent Hayward, who received a 428-year sentence, charged 26 individuals distributing child sexual abuse material, and indicted the Salander-O'Reilly art gallery on $120 million fraud charges, demonstrating a diverse investigative background.

His term is scheduled to end later this year, and he recently announced he will not seek re-election. Current speculation suggests he will complete the investigation and indict Trump before leaving office. Former New Jersey Attorney General Anne Milgram said, "It appears that Vance will complete the investigation before his term ends," adding, "With about 10 months left until his departure, that is sufficient time to conclude the investigation."

This content was produced with the assistance of AI translation services.