Another Ivanka Trump-related business could have a scandal on its hands. A court document filed at the U.S. District Court for the Southern District of New York this summer and obtained by GQ, who published a report on Friday, December 22, claims that the now-defunct jewelry company Ivanka Trump Fine Jewelry was allegedly involved in a scheme to cover a $100 million debt owed by an oil trading family to the Commercial Bank to Dubai.

The Emirate family, the Al-Saris, allegedly borrowed the money from the bank, failed to pay it back, and hid how much money they had by purchasing diamonds from the company to which Ivanka had licensed her name, as well as from another seller named Jacob Arabo, and buying Las Vegas real estate. (Buying diamonds and then cashing them in is one way someone might hide wealth and escape paying back debt.)

Ivanka and Arabo themselves aren't accused of being behind the alleged scheme, however. The court documents don't mention Trump explicitly, but they request permission to subpoena Madison Avenue Diamonds, the name of the company before its owner Moshe Lax partnered with Ivanka. (The two cut ties some time in late 2016.) The subpoena request was granted by a judge in August, but Lax told GQ that the bank hasn't served a subpoena as of now. He also denied any involvement in a money laundering scheme. "They might have bought a piece of fashion jewelry at our former boutique," he said. "We will fully comply in verifying and providing info the court might ask from us."

GQ notes that neither a White House spokesperson nor Trump Organization counsel returned a request for comment at publish time.

These allegations come as the Trump family experiences escalating tensions with Middle Eastern countries, with Donald Trump advocating a blockade on Qatar by Saudi Arabia and the United Arab Emirates soon before the documents were filed. With the Emirati government having partial ownership over the bank, this scandal has the potential to increase these tensions further.

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