Trump’s former lawyer Michael Cohen under investigation for tax fraud, report says

The former attorney is already under investigation for his business dealings with the US president.

Donald Trump's former personal attorney Michael Cohen (AFP)

Donald Trump’s former lawyer Michael Cohen is now under investigation for alleged tax fraud, a report says.

According to a report by the Wall Street Journal, federal prosecutors in New York City are investigating whether Mr Cohen underreported income on his tax returns from his taxi medallion business. Mr Cohen is already under investigation for possible crimes related to his personal business dealings with the US president.

A representative at the office for Mr Cohen’s attorney, Lanny Davis, told The Independent that Mr Davis was “unable to respond” to the recent reports suggesting Mr Cohen is under investigation for alleged tax fraud “in light of the ongoing investigation”.

Sources familiar with the investigation told the Journal Mr Cohen was being investigated for possibly underreporting his income, including an alleged hundreds of thousands of dollars received in cash and other forms of payments over the last five years.

Federal prosecutors in New York have been investigating whether Mr Cohen’s personal business dealings with Mr Trump involved making payments to cover up Mr Trump's alleged extramarital affairs – and whether some of those payments were campaign finance violations.

Adult film actress Stormy Daniels, whose real name is Stephanie Clifford, has sued the US president and Mr Cohen – both rooted in her alleged affair with Mr Trump in 2006. Ms Daniels has said she was paid $130,000 (100,000 £) as a hush-money payment for the alleged affair. Mr Trump has denied having a sexual encounter with Ms Daniels. Mr Cohen has denied wrongdoing.

According to the Journal, prosecutors are also investigating Mr Cohen’s relationships with banks and whether he had made misrepresentations or false statements about his assets for loan applications. Prosecutors have reportedly subpoenaed Mr Cohen’s accountant Jeffrey A Getzel, the Journal reports.

The Attorney's Office for the Southern District of New York declined to comment on the reports about Mr Cohen.

Mr Cohen’s home, office and hotel was raided by the FBI back in April.