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NYC prosecutors' probe into Trump finances expands to include millions loaned for Chicago skyscraper

Source: CNN

The Manhattan district attorney's office subpoenaed documents from an investment company that loaned the Trump Organization millions of dollars for its Chicago skyscraper in a sign that the investigation into the former president's finances continues to expand, according to people familiar with the investigation.

Prosecutors issued the grand jury subpoena to Fortress Investment Management late last year, the people said, as part of their wide-ranging investigation into former President Donald Trump and his company.

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Their interest in Fortress relates to a $130 million loan the company made to the Trump Organization for the construction of a luxury hotel and condo tower in Chicago.

By 2012, Fortress subsequently forgave more $100 million of the loan, which, including interest and fees, was worth about $150 million, according to court filings. The forgiveness was done to secure a partial re-payment of about $45 million at a time when the real estate market was suffering from the financial crisis.

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Read more: https://www.cnn.com/2021/03/08/politics/trump-chicago-subpoena/index.html

The prosecutors are investigating whether Trump and Trump Org reported the loan forgiveness as income, as the IRS requires, and paid taxes on it.