Defense attorney and former prosecutor Bob Bianchi explains.
Federal investigators in New York are reportedly working to determine if Michael Cohen—President Trump’s former lawyer—committed bank fraud on over $20 million worth of loans, and possible campaign finance violations.
The New York Times on Sunday reported that the loans in question were for a taxi business that is owned by Cohen and his family.
Investigators are trying to determine if he misrepresented assets in order to obtain the loans from Sterling National Bank and the Melrose Credit Union, the report said, citing people familiar with the matter.
The Justice Department has been investigating Cohen for months, raiding his home, office and hotel room in search of documents related to former Playboy model Karen McDougal and a separate $130,000 payment the attorney facilitated before the election to Stormy Daniels, an adult-film actress who says she had sex with Trump in 2006.
The report said prosecutors are investigating whether or not Cohen violated campaign finance laws by securing these deals with women who claimed they had sex with Trump.
Cohen, long a loyal counselor to the president, has more recently signaled that he’d be open to cooperating with prosecutors.
Federal prosecutors are reportedly focused on Cohen’s investments in taxi medallions, the report said.
The Times reported that Cohen used 32 medallions as collateral for loans, and the medallions–at the time– brought in more than $1 million a year and are valued at over $1 million. Authorities are reportedly investigating if Cohen failed to report the income to the IRS.
The Times report said that it is not clear if Cohen spoke to prosecutors about a potential deal. Cohen did not respond to the paper for comment.
A spokesperson for Lanny Davis, a lawyer for Cohen, told NBC News: “Lanny cannot comment on advice of counsel since there is an ongoing investigation.”
The Associated Press contributed to this report
Edmund DeMarche is a news editor for FoxNews.com. Follow him on Twitter @EDeMarche.