Michael Cohen Under Investigation For Possible Tax Fraud

Michael Cohen Image by Gettty Images

Michael Cohen, President Trump’s former personal attorney, is reportedly under investigation for possible tax fraud, the Wall Street Journal reported Tuesday.

Federal authorities are looking into whether Cohen’s income from his taxi-medallion business was underreported in tax returns, a person familiar with the investigation said. That income allegedly amounted to hundreds of thousands of dollars received in cash and other forms of payment over the last five years.

Prosecutors also are determining whether any banks loaned Cohen money, regardless if he provided the correct documentation, people familiar with the matter said. Federal investigators are looking closely at his relationship with Sterling National Bank, which provided financing for Mr. Cohen’s taxi-medallion business.

Convictions for federal tax and ban -fraud may carry significant prison sentences, which could put additional pressure on Cohen to cooperate with prosecutors during special counsel Robert Mueller’s ongoing probe into Russian interference in the last presidential election.

Alyssa Fisher is a news writer at the Forward. Email her at [email protected], or follow her on Twitter at @alyssalfisher