Editor’s note: This article has been updated for clarity.
Yet another scandal plagues the Ivanka Trump brand. In a warrant issued by the New York State Department of State on Jan. 27, a licensee of Ivanka Trump Fine Jewelery allegedly owes $5,165.06 in unpaid taxes.
The company, which is officially listed as Madison Avenue Diamonds, LLC, has reportedly failed to pay taxes on jewelry sales made in August and November 2015, and February 2016, according to tax agency spokesperson James Gazzale.
According to the New York State Department of Taxation and Finance, of the top 250 businesses with delinquent tax accounts, the smallest amount totals more than $300,000, indicating that Madison Avenue Diamonds’ sum isn’t egregious.
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Regardless, Gazzale says the state is eager to settle all outstanding accounts.
“We are in constant communication with business owners to try to resolve debts as soon as possible,” he said to USA Today, under the premise that he could not discuss individual cases.
Under New York law, should the amount not be paid, it could accrue additional interest and penalties, and in a worst-case scenario, the state could collect via a levy or seizure and sale of property.
Abigail Klem, president of Ivanka Trump Brands, said in a statement: “This situation involves an independent licensee of Ivanka Trump Brands and has absolutely nothing to do with her company.”
This isn’t the first time Trump’s jewelry brand has come under fire. In a 60 Minutes interview after her father won the presidential election, the first daughter wore a $10,800 gold-and-diamond bracelet from her collection, which was promoted by her company in an email blast to fashion writers and bloggers the following day. The media and the public saw it as an opportunistic turn, and criticized Trump for trying to profit off her father’s presidency.
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In a statement to CBS News, the company blamed the email on a “well-intentioned employee,” and said that adjustments to policies and procedures needed to be made as the family members transitioned to the public sector.
A separate contract lawsuit filed in 2016 said that Ivanka Trump Fine Jewelry failed to pay over $3 million to KGK Jewelry for jewels it was selling. The Supreme Court of the State of New York ruled in favour of KGK.
This most recent revelation adds to ongoing problems that plague the first daughter’s brand. In early February, a spate of stores, including Nordstrom and Neiman Marcus, dropped Ivanka Trump clothing and accessories from their product offering citing slumping sales for their decision. And in June 2016, the brand was sued by Italian designer footwear company Aquazzura for copying the design of its “Wild Thing” sandal. The case is still pending.
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Ivanka Trump Fine Jewelry, which sells luxury rings, earrings, bracelets and necklaces for as much as $15,900, is carried in fine jewelry boutiques across the United States and the Middle East, as well as Puerto Rico. In Canada, the line is available at Hudson’s Bay stores.
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