Michael Cohen’s Problems Just Got Worse, Feds Investigating Him For Tax Fraud
Michael Cohen is not having a good day. Rudy Giuliani has already compared him to Brutus to Trump’s Julius Caesar, “putting the last knife in his back” and federal prosecutors in New York are probing into whether he committed tax fraud. Wall Street Journal:
Federal authorities are assessing whether Mr. Cohen’s income from his taxi-medallion business was underreported in federal tax returns, one of the people said. That income included hundreds of thousands of dollars received in cash and other payments over the last five years, the person said.
Don’t forget Cohen’s business partner, who had already agreed to cooperate with authorities.
Mr. Freidman, known as the “Taxi King,” began in around 2012 and 2013 to manage Mr. Cohen’s 32 medallions in New York, paying Mr. Cohen a fixed monthly rate and keeping the profit—or suffering any loss—from each medallion, according to a person familiar with their business relationship.
The person said Mr. Freidman would sometimes pay Mr. Cohen a portion of that monthly rate—at times tens of thousands of dollars—in cash. Mr. Freidman also made other payments to Mr. Cohen in connection with the business, the person said. […]
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.
So Michael Cohen used to get paid with a briefcase full of cash, just like a gangster, and why is that not the least bit surprising?
At this point, what reason does he have not to flip on Trump?