Uber and Lyft played a key role in Trump lawyer Michael Cohen's financial downfall
- Uber and Lyft crushed President Donald Trump's longtime lawyer Michael Cohen's taxi business.
- The value of Cohen's 32 taxi medallions plummeted with Uber and Lyft's takeover of New York City's taxi market.
- Cohen faces huge legal expenses as he is tied up in an ongoing criminal investigation.
Uber and Lyft played a critical role in the pillaging of the finances of Michael Cohen, President Donald Trump's longtime lawyer, Bloomberg reported Friday.
Cohen, who declined comment to Bloomberg, and his wife, Laura, built up a substantial New York City taxi business on the back of the 32 taxi licenses - known as medallions - that they own. But the value of those medallions plummeted from more than $1 million each to roughly $163,000 within the past four years - a direct result of Uber and Lyft's takeover of the taxi market.
At the same time, the Cohens' income from their taxi fleet has diminished, while millions of dollars in loans they took out for the business went under water, Bloomberg reported. Now, their taxi companies have piled up unpaid taxes and fines, which triggered a suspension for roughly half of the medallions.
The taxi business he and his wife built is "deeply in debt and losing money daily," Bloomberg reported. The Cohens took out at least 16 loans based on the once-sky high value of the medallions. Sterling National Bank, the bank that lent the Cohens cash, said in a November filing that it had loans out to three taxi borrowers. All were at high risk of being defaulted on. On Tuesday, the bank, which declined comment to Bloomberg, agreed to new loans for Cohen and his companies.
Cohen still has the appearance of vast wealth, driving a Rolls Royce, sporting a $50,000 watch, and owning a good chunk of Manhattan real estate, Bloomberg reported. But the real estate is only bringing in modest income while his legal work is suspended pending the criminal investigation he is facing.
Cohen's finances come under scrutiny as he faces the criminal probe and exorbitant legal costs resulting from it.
Earlier this month, the FBI conducted the raids on Cohen's home, hotel room, and office as part of a criminal investigation into whether Cohen violated campaign finance laws or committed bank fraud, as has been previously reported.
Cohen is said to have been a cause for worry in the White House in recent weeks. People close to Trump have suggested Cohen is likely to "flip," or cooperate with the government by providing information about others in exchange for a lesser punishment. Cohen has not been charged with a crime.
Cohen, who for years has been a close friend and adviser to Trump, has expressed intense loyalty to the president. He once said he would "take a bullet" for Trump, and he has handled sensitive matters related to him, including paying the porn star Stormy Daniels $130,000 shortly before the 2016 election to ensure her silence about an alleged affair with Trump. Cohen utilized a home equity line of credit to facilitate the payment to Daniels, whose real name is Stephanie Clifford.