Recent revelation reported by Mediaite, former President Donald Trump is under scrutiny for utilizing $40 million in undisclosed payments to cover taxes and expenses linked to a sexual assault judgment. The disclosure, made by independent monitor Judge Barbara Jones overseeing Trump Organization finances at the request of New York Attorney General Letitia James, highlighted three cash transfers exceeding $5 million each, totaling approximately $40 million. These transfers included $29 million for tax payments and around $10 million for insurance premiums.
In a letter addressed to Judge Arthur Engoron, Judge Jones clarified that discussions with the Trump Organization led to an agreement that all transfers of assets exceeding $5 million must be reported. While the defense acknowledged their oversight and committed to promptly disclosing required information, Jones also raised concerns about a delayed disclosure of tax returns for six of Trump’s entities and requested details about an intercompany loan.
The payments in question reportedly covered various expenses, notably the $5.6 million Trump posted as security while appealing a civil jury verdict favoring writer E. Jean Carroll. Carroll accused Trump of sexually assaulting her in the 1990s and defaming her when she went public with the allegation. Despite the ongoing trial and Trump’s testimony, the defense maintains their overall compliance with the court’s orders.
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Former Judge Barbara Jones, acting as the independent monitor at the behest of the New York Attorney General, detailed in a letter to Judge Arthur Engoron that she identified three separate cash transfers exceeding $5 million, totaling approximately $40 million. These transfers included $29 million in tax payments and roughly $10 million for insurance premiums.
“We have discussed with defendants why these transactions were not previously disclosed, and I have now clarified (and defendants have agreed) that all transfers of assets out of the trust exceeding $5 million must be reported,” wrote Jones.
Jones also requested information regarding an intercompany loan and flagged the delayed disclosure of tax returns for six of Trump’s entities, with the defendants acknowledging the oversight.
This development adds another layer to the legal challenges faced by Trump, including ongoing investigations by the New York attorney general and Manhattan district attorney, various lawsuits, and the recent revelation of documents related to his efforts to overturn the 2020 election results.
