The Daily Telegraph

Trump’s ex-lawyer in $20m fraud inquiry

Former key White House aide embroiled in financial claims as Trump hits out at inquiry into Russia links

- By Rob Crilly, in New York

Michael Cohen, once a key aide to Donald Trump, is being investigat­ed over $20 million (£15.7m) of loans obtained by taxi firms linked to him and his family, according to claims that will send shockwaves through the White House. Mr Cohen is known to have built significan­t investment­s in taxi medallions – the licences to operate New York cabs. The New York Times, citing business records and informed sources, said the inquiry is into loans from two financial bodies.

MICHAEL COHEN, Donald Trump’s former lawyer and fixer, is being investigat­ed over $20 million (£15.7m) of loans obtained by taxi companies owned by him and his family, according to The New York Times.

His close relationsh­ip with the president and the Trump Organisati­on have made Mr Cohen a pivotal figure in the slew of investigat­ions into alleged collusion between the Trump campaign and Russia. Federal prosecutor­s in New York are reportedly investigat­ing him for possible bank and tax fraud, as well as a $130,000 payment to adult film star Stormy Daniels.

Mr Cohen has not been charged with any crime. He and his lawyers declined to comment when contacted by The New York Times. Details of the size of the investigat­ion come at a time when Mr Trump has revealed his fury at federal prosecutor­s picking their way through his team.

Earlier, the president said the investigat­ion into his 2016 campaign’s links with Russia makes “Joseph Mccarthy look like a baby” as he lashed out at reports that the White House’s most senior legal adviser has been drawn into the inquiry. Sending an unusually long string of tweets, the president appeared to be rattled by revelation­s in The New York Times that Don Mcgahn, White House counsel, spent more than 30 hours talking to agents in voluntary interviews.

Mr Mcgahn is reported to have described the president’s anger at the investigat­ion and the ways in which he asked his legal team to respond. That anger was on full display yesterday, when Mr Trump compared Robert Mueller’s investigat­ion with the Fifties hunt for communists led by Senator Joseph Mccarthy, an episode that is remembered today as a dark period in America’s history.

“Study the late Joseph Mccarthy, because we are now in a period with Mueller and his gang that make Joseph Mccarthy look like a baby! Rigged Witch Hunt,” wrote Mr Trump.

Last week, Mr Trump’s critics accused him of Mccarthyis­m as he stripped the security clearance of John Brennan, the former CIA director.

The exchanges have become part of a regular routine: newspapers publish new details of Mr Mueller’s probe; the president fires off early morning Twitter broadsides; then his cheerleade­rs take to Sunday morning TV shows to fling back accusation­s of a witch hunt. Rudy Giuliani, Mr Trump’s personal lawyer, appeared on NBC’S Meet the Press soon after Mr Trump’s tweets, but the debate threatened to descend into farce as he tried to suggest that there was no such thing as objective truth.

Mr Giuliani pushed back against demands that Mr Trump himself testify before the Mueller inquiry saying he could be sucked into a he-said, she-said squabble. “When you tell me that, you know, he should testify because he’s going to tell the truth and he shouldn’t worry, well that’s so silly because it’s somebody’s version of the truth. Not the truth,” he said.

William Burck, a lawyer for Mr Mcgahn, said: “President Trump, through counsel, declined to assert any privilege over Mr Mcgahn’s testimony, so Mr Mcgahn answered the Special Counsel team’s questions fulsomely and honestly, as any person interviewe­d by federal investigat­ors must.”

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