June 13, 2024

Marilyn Mosby’s federal mortgage fraud trial leads to questions about Nick Mosby’s future

Not much new ground was covered on day six of former Baltimore City State’s Attorney Marilyn Mosby’s federal mortgage fraud trial, but discussions continued about Baltimore City Council President Nick Mosby’s previous testimony and his financial history.

Prosecutors claim Marilyn Mosby failed to disclose a $45,000 tax lien on her Baltimore home when she bought the two properties in Florida, and claim she lied when she told lenders she would not use the homes as rental properties.

Nick Mosby, Marilyn Mosby’s ex-husband, was called to the witness stand by the defense on Jan. 25. During direct questioning, Nick Mosby said the couple’s tax debt was his fault and said he took responsibility for keeping it a secret from Marilyn. He also admitted, under oath, that he lied to the press during a news conference where he was asked about a $45,000 tax lien on his home in Baltimore that he shared with Marilyn and their two daughters.

“I said it would be done in the coming days and you know, I’ve been able to settle that,” Nick Mosby said at the time, per FOX45 News archives.

On the stand and under oath, Nick Mosby said he lied to the public about the tax lien.

“I lied because I didn’t want my wife to find out,” Nick Mosby said on the stand Monday.

But it was what was discussed outside the jury’s earshot that raised serious questions about the couple’s financial management. According to Assistant U.S. Attorney Aaron Zelinsky, the government had a forensic analyst comb through the Mosby’s finances. Nick Mosby “repeatedly committed perjury” on his taxes, according to Zelinsky, due to various charitable donations he wrote off, despite being in significant debt.

In 2014, prosecutors said Nick Mosby claimed to have donated $21,000 to charity; the same year, prosecutors said Nick Mosby was $18,640 behind in mortgage payments and had his car repossessed for missed payments.

In 2015, Zelinsky said Nick Mosby claimed $15,000 in charitable donations; the same year, he was $9,600 behind in mortgage payments and tens of thousands of dollars behind in taxes. Between 2014 and 2018, Zelinsky said Nick Mosby had his wages garnished for unpaid student loan debt.

ALSO READ | Federal prosecutors at Marilyn Mosby trial: Nick Mosby ‘repeatedly’ lied on taxes

Nick Mosby was appointed as a state delegate in 2017, and he also launched a side business called Monumental Squared, LLC, as a source of income while the General Assembly was not in session. Nick Mosby also launched a campaign for mayor, though he dropped out before the primary election.

During the mayoral campaign, Nick Mosby testified to falling behind on bills. While on the stand, Zelinsky questioned Nick Mosby about business expenses and the Council President admitted to funneling over $1,000 through his business account for clothing expenses, rattling off stores like J. Crew, Brooks Brothers, Under Armor, Ugg Boots, and Michael Kors.

To date, Nick or Marilyn Mosby have not been charged with tax fraud. However, given the allegations from prosecutors, Political Analyst John Dedie said Nick Mosby will likely have a difficult time overcoming the headlines with voters as he seeks re-election.

“It makes his credibility even worse if it’s possible to think it was good in the first place,” Dedie said. “The problem is voters are going to say, ‘I don’t want to vote for someone under federal indictment or under federal investigation.’ They went through the Marilyn drama and now this is coming back again, and they are going to say – ‘I can’t take this anymore’.”

The candidate filing deadline is Feb. 9; online records indicate Nick Mosby has not yet filed. A spokesperson for Council President Mosby told FOX45 News via email that it was the office’s understanding that Nick Mosby intends to file for re-election in the coming days.

ALSO READ | House Judiciary Committee Chairman Jim Jordan subpoenas HHS

The latest campaign finance reports, posted from mid-January, indicate an uphill battle for Nick Mosby; he has $183,274.50 on hand, according to the filings. Councilman Zeke Cohen is the biggest challenger to Nick Mosby currently, and according to filings, Cohen has $532,233.80 in his campaign coffers. Shannon Sneed, who is utilizing the city’s public financing system as well, is also seeking to unseat Nick Mosby as the leader of the Baltimore City Council; Sneed has $169,000 on hand.

“You need $200 million to erase stuff like that. I think voters are going to look at it and say, do we want to continue the Mosby drama? I think it’s going to come down to that for voters,” Dedie said. “February 9 is less than two weeks away. I think he’s gotta thinking about running and leaving in a situation where he ends up looking worse.”

During testimony Tuesday, the jury heard briefly from an investigator with the public defender’s office about issues Marilyn Mosby raised with the property management company she hired to manage the Kissimmee property. The jury also heard testimony from Shannon Yost, operations manager at My Easy Mortgage, a brokerage in Florida who worked with Marilyn Mosby on both home purchases.

Judge Lydia Griggsby also declined to allow Marilyn Mosby’s previous attorneys to testify in the current trial. Prosecutors subpoenaed several attorneys from Reed Smith, the firm that used to represent Marilyn Mosby before withdrawing in early 2023. Judge Griggsby cited her “discomfort” with the idea of allowing attorneys who previously represented Marilyn Mosby on these issues to testify, noting the reason from prosecutors was to “impeach” Nick Mosby based on his previous inconsistent statements on the stand.

Judge Griggsby agreed to give the defense time to decide whether Marilyn Mosby will testify, though she said the decision must be made by Wednesday morning. If she does testify, prosecutors will be allowed to ask her about the November perjury conviction – a case that was brought under the same indictment as the current mortgage fraud charges – and other issues.

Court is expected to resume Wednesday at 9:30 a.m. She faces up to 30 years in federal prison for each charge if convicted on the mortgage fraud charges.

Follow Political Reporter Mikenzie Frost on X and Facebook. Send tips to mbfrost@sbgtv.com.

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