The daily business briefing: October 6, 2020

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1. Cuomo approves shutting schools but not businesses in NYC hot spots
2. Eric Trump deposed in fraud investigation
3. IRS investigates NRA leader's personal taxes
4. Stock futures drop slightly after Monday's big gains
5. McAfee indicted on tax evasion charges

published 6 October 2020

1. Cuomo approves shutting schools but not businesses in NYC hot spots

New York Governor Andrew Cuomo (D) on Monday agreed to New York City Mayor Bill de Blasio's request to close schools in nine Brooklyn and Queens neighborhoods that have become coronavirus hot spots, but the governor rejected de Blasio's plan to close non-essential businesses in the neighborhoods. Public and private schools will close starting Tuesday. "I am not going to recommend or allow any New York City family to send their child to a school that I wouldn't send my child," Cuomo said. The governor and mayor have clashed over how to fight the spread of the coronavirus. Cuomo said they spoke by phone on Monday and discussed ways to define the hot spots that would work better than using zip codes, which the city government has used to determine which businesses it wants to shut down.

Eric Trump, one of President Trump's sons, was questioned Monday about the family's businesses as part of an investigation into whether the Trump Organization inflated the value of some assets to qualify for tax benefits. Eric Trump serves as a top executive of the business. His lawyers had tried to get his deposition postponed until after the November election, but a Manhattan judge rejected their request for a delay and ordered Eric Trump to testify by Oct. 7. Eric Trump tweeted on Sept. 23 that the New York Attorney General Letitia James' investigation is "an anti-Trump fishing expedition that she promised during her campaign."

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The Internal Revenue Service is conducting a fraud investigation targeting the personal taxes of National Rifle Association CEO Wayne LaPierre, The Wall Street Journal reported Monday, citing people familiar with the matter. LaPierre was paid $11.2 million from 2014 to 2018, including $2.2 million in the last year of that period, according to the nonprofit gun-rights lobbying group's public filings. In August, New York Attorney General Letitia James filed a civil suit charging LaPierre with taking millions in undisclosed compensation, including free yacht trips, safaris, private jet flights, and other perks, from the NRA and some of its vendors. James said the NRA's failure to disclose the benefits allowed LaPierre to file false federal tax returns. A lawyer for LaPierre and the NRA said they were not aware of the IRS inquiry. LaPierre has called the suit by James, a Democrat, politically motivated.

U.S. stock index futures edged down early Tuesday following Monday's surge. Futures for the Dow Jones Industrial Average were flat, while those of the S&P 500 and the tech-heavy Nasdaq were down by 0.2 percent and 0.4 percent, respectively. The Dow gained 1.6 percent on Monday. The S&P 500 rose by 1.8 percent, and the Nasdaq jumped by 2.3 percent in the market's best day in weeks. The gains came ahead of President Trump's release from the hospital after three days of coronavirus treatment, as concerns about his health eased. Investors also were watching for signs of progress as House Speaker Nancy Pelosi (D-Calif.) continued talks with Treasury Steven Mnuchin on another coronavirus stimulus package. Pelosi's office said they planned to talk again on Tuesday.

Antivirus software entrepreneur John McAfee has been arrested in Spain following his indictment in the United States on tax evasion charges. The former Libertarian presidential candidate is accused of failing to file his taxes for four years despite millions in earnings from consulting work, speaking appearances, promoting cryptocurrencies, and selling the rights to his life story, according to the indictment filed in a U.S. District Court in Tennessee. He allegedly had the income paid into accounts registered under other names. If convicted, he could face five years in prison for each count of tax evasion. The Securities and Exchange Commission on Monday also filed a complaint accusing McAfee of falsely claiming to be an investor when he recommended cryptocurrency offerings without disclosing that he was being paid to promote them.

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Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.