Former US President Donald Trump returns from a break at the New York Supreme Court during his civil fraud trial on November 6, 2023 in New York City.
The financial watchdog overseeing the Trump Organization disclosed to a New York judge on Wednesday about $40 million in cash transfers that were not previously disclosed as required by the court-appointed monitor.
The transactions included $29 million sent to former President Donald Trump, which he used to pay taxes, Barbara Jones, the monitor, told Judge Arthur Engoron in a letter filed in Manhattan Supreme Court.
The other transfers were for insurance premiums and the $5.6 million Trump posted in June as security while he appealed a civil jury verdict in favor of writer E. Jean Carroll because of sexually abusing her in the 1990s and for defaming her when she went public. his allegation when he was in the White House.
Jones, who is a retired federal judge, was appointed in November 2022 to oversee Trump’s company financial statements as part of a $250 million business fraud lawsuit in New York against the Trump Organization, the former president, and his two grown sons.
Engoron is leading the ongoing civil trial against Trump, who is the clear frontrunner in the 2024 Republican presidential nomination contest.
Jones in his report Wednesday said that under a protocol he established in April, Trump, his company and other defendants must notify him if they make transfers from Trump’s trust that have an “aggregate value in excess of $5 million.”
A review of bank statements since January showed there were “three cash transfers exceeding $5 million each, totaling approximately $40 million,” he wrote.
“We have discussed with Defendants why these transactions were not previously disclosed,” Jones wrote to Engoron.
“And I have now made it clear (and the Defendants agree) that all transfers of assets from the (Trump) Trust in excess of $5 million must be reported,” Jones added, emphasizing the word “all ” in italics.
During the opening week of Trump’s fraud trial, Engoron ordered that for each of Trump’s financial entities involved in the case, the defendants “will provide the Monitor with advance notice” of “any expected transfer of assets or liabilities to any other entity.”
Trump’s attorney, Christopher Kise, told CNBC in an email Wednesday, “As always, the report confirms that the defendants continue to cooperate with the monitor and remain in compliance with the court order.”
“As before, the report does not mention suspicious activity or suspected or actual fraud, because none exists,” Kise said.
Kise’s statement referred to Jones’ last regular report to the judge, which he sent in August.
In a previous letter, Jones informed Engoron about what he described as issues of incompleteness and inconsistency in some disclosures by lenders and others at the Trump Organization.
He said at the time that Trump and the company defended its practices in areas of concern to him, but noted that they also agreed to change how they disclosed information to him given his claims.
In a new letter Wednesday, Jones wrote that since then, the defendants “have taken steps to disclose intercompany loans that were not disclosed from the initial disclosure, revised disclosure footnotes regarding contingent liabilities ,” and he was also awarded all recent annual and quarterly certifications proving accuracy. in the financial statements.
A spokeswoman for New York Attorney General Letitia James had no comment on Jones’ letter.