Federal prosecutors in New York are circling Donald Trump’s inaugural committee as part of a wide-ranging investigation into possible money laundering, illegal contributions and cash-for-access schemes. Now, WNYC and ProPublica have identified evidence of potential tax law violations by the committee.
A spokesman confirmed that the nonprofit 58th Presidential Inaugural Committee paid the Trump International Hotel a rate of $175,000 per day for event space — in spite of internal objections at the time that the rate was far too high. If the committee is deemed by auditors or prosecutors to have paid an above-market rate, that could violate tax laws prohibiting self-dealing, according to experts.
Tax law prohibits nonprofits from paying inflated prices to entities that are owned by people who also control or influence the nonprofit’s activities.
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