The former president was not personally charged in the case, but his name came up repeatedly during the trial as someone who knew about and acted on the 15-year fraud scheme. “A case of greed and betrayal”
The Trump Organization was found guilty of tax fraud, when it was determined that two subsidiary companies were guilty of several charges of criminal tax fraud and falsifying business records, related to a 15-year plan to defraud the tax authorities by not reporting and not paying taxes on compensation to senior executives.
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A Manhattan jury found Trump Corp. and Trump Pay Corp. guilty of all 17 counts, including falsifying business records. The organization may face a fine of up to 1.6 million dollars at the most, in the sentence that will be handed down in mid-January.
It is important to note that former President Donald Trump was not personally charged in this case, but his name was mentioned repeatedly during the trial by prosecutors, for his connection to benefits granted to certain executives, including company-financed apartments, vehicles and other personal expenses. “He knew exactly what was happening with his senior managers,” it was claimed during the trial.
The case was based on the testimony of Alan Weiselberg, the former CFO of the Trump Organization, who last August pleaded guilty to conspiring with the company to avoid paying taxes on corporate benefits.
During the trial, he pleaded guilty to 15 felonies, and testified that he hid $1.76 million in fringe benefits by withholding pre-tax wages and issuing false W-2s. As part of his plea deal, he may receive 5 months in prison if the judge finds that he is telling the truth.
As mentioned, Trump himself was not personally accused – but the jury heard during the trial how the former president agreed to pay tuition fees at Weiselberg’s grandson’s private school, and signed a lease for an apartment in Manhattan to shorten the executive’s travels. Trump also personally signed Christmas bonus checks for his employees, and wrote a pay cut memo for other top executives, when prosecutors say he was aware of the fraud scheme all along.
The company itself is not in danger of liquidation because there is no mechanism in New York state law that requires a company to be liquidated, but a felony conviction could naturally affect the company’s ability to do business or receive loans or contracts.
The Trump Organization said it intends to appeal the decision. The former president has yet to comment, but on Tuesday he referred to the trial as a “witch hunt.”
Manhattan District Attorney Alvin Bragg said: “This was a case of greed and betrayal. The Trump Corporation and the Trump Payroll Corporation got away with a scheme that gave top executives lavish benefits and compensation while deliberately hiding them from the tax authorities to avoid paying taxes. Today’s verdict Holds the Trump Organization and its longstanding criminal program accountable.”
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