Report: Manhattan DA subpoenas documents related to loans used to build Trump tower in Chicago

The CNN report came out Monday.

SHARE Report: Manhattan DA subpoenas documents related to loans used to build Trump tower in Chicago

Aerial view of Trump tower in Chicago.

Lee Hogan/For Sun-Times Media

Manhattan district attorney Cy Vance Jr. has subpoenaed documents from an investor that provided a loan Donald Trump’s company used to build the Chicago skyscraper that bears his name, according to a CNN report published Monday.

Late last year, Vance issued a grand jury subpoena to collect information from Fortress Investment Group related to the $130 million it provided the Trump Organization to build the Trump International Hotel and Tower, according to CNN, which attributed the report to sources.

The skyscraper along the Chicago River, built on the former footprint of the Chicago Sun-Times building, was completed in 2009.

By 2012, Fortress forgave more than $100 million of the loan to secure a partial repayment of about $45 million amid a financial crisis in the real estate market, according to CNN. 

Prosecutors in Vance’s office are looking into whether Trump and his company reported the loan forgiveness as income and paid taxes on it, as required by law.

The subpoena is part of a continuing financial fraud investigation into the ex-president that’s probing whether lenders or insurance brokers were misled about property valuations.

Alan Garten, the general counsel for the Trump Organization, declined to comment, according to CNN.

Garten previously told The New York Times that the company and Trump paid all taxes on forgiven debts.

The issue was first raised by New York Attorney General Letitia James last fall when her office disclosed in a court filing that it was investigating whether Trump and the Trump Organization recorded the forgiven amount as income and paid taxes or whether there was some explanation as to why that wouldn’t be required, according to CNN.

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