U.S.

Michael Cohen Could Lose $9 Million NYC Apartment After Offering Up Family Home for Loan Collateral

President Donald Trump’s personal attorney reportedly offered up his $9 million New York apartment as collateral for millions of dollars of debt due to the decline of his taxi medallion business.

Michael Cohen, who is currently the subject of a federal investigation, put up his New York Park Avenue apartment against a debt as high as $12.8 million last month, Bloomberg reported Tuesday afternoon citing public filings. According to the report, Cohen and his wife owed as much as $12.8 million to Sterling National Bank in Montebello, New York.

Prior to working for Trump as a lawyer and “fixer,” Cohen made a fortune in real estate and the previously lucrative New York taxi business. However, the value of the medallions, of which Cohen owns dozens, has dropped precipitously in recent years as ride-sharing services like Uber and Lyft have taken a massive chunk of the taxi market.

“With all due respect, you don’t remotely understand my loan,” said Cohen in response to Bloomberg’s request for comment.

The report was able to confirm Cohen’s $12.8 million debt in March as the bank had only two other clients in the taxi business. Those two had reportedly already restructured debt by the end of last year or weren't making payments, and thus were ruled out, according to the report. But the bank’s recent liens placed against Cohen’s assets matched the $12.8 million in debt.

GettyImages-951547260 Michael Cohen, longtime personal lawyer and confidante for President Donald Trump, leaves the United States District Court Southern District of New York, in New York, on April 26. Cohen reportedly offered up his $9 million New York apartment as collateral for millions of dollars of debt due to the decline of his taxi medallion business. Getty Images/Spencer Platt

The potential financial woes facing Cohen come as he has been subjected to a federal probe into his businesses as well as the $130,000 payment he made to adult film actress Stormy Daniels (whose real name is Stephanie Clifford), to silence her story about an alleged sexual encounter with Trump in 2006.

The timing of the payment to Daniels—less than two weeks before the 2016 election—has come under heavy scrutiny over whether it represented a contribution to Trump’s campaign intended to impact the outcome of the election. Both Trump and another of his personal attorneys, Rudy Giuliani, confirmed the president had paid Cohen back and that no campaign funds were used to pay off Daniels.

Cohen’s office, hotel and residence were raided last month by federal investigators, who obtained records, documents and other files pertaining to Cohen’s law practice and businesses.

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