A lot of people miss this one detail...he’s potentially audited yearly by both the IRS and the NY state tax apparatus. Either of them could make a massive case from any point over the past fifty years of his returns....they’ve never done so.
Now, what I do believe will come out of the current episode...they are going to look at loans mentioned in the papers and ask how he got such great interest rates, and want him to testify on values given for collateral property. If they had any case...it would involve the loans and the value he says of his hotel properties.
“If they had any case...it would involve the loans and the value he says of his hotel”
They have no case if this is what they are counting on. Borrowers are free to value their collateral using any number of different ways and the lenders responsibility is to confirm valuation using their own appraiser.