The Trump Organization and CFO Allen Weisselberg were charged with 15 counts for alleged fraud and tax evasion.
What We Know:
- Lawyers for the Trump Organization and its top executives pleaded not guilty to a 15-count indictment alleging the company secretly redirected money to executives to avoid taxes on $1.7 million of income. Beginning in 2005, the money was untaxed indirect employee compensation. Prosecutors claim the Trump Organization failed to report the payments for tax purposes.
- CFO Weisselberg and two corporate entities were declared co-defendants in the indictment. Some charges include tax fraud, false statements, false filings, false tax instruments, and falsifying business records. Prosecutors term the fund funneling an “orchestrated scheme” to benefit top executives, giving them undocumented perks and raises that bypass taxing.
“It was orchestrated by the most senior executives, who were financially benefiting themselves and the company, by getting secret pay raises at the expense of state and federal taxpayers,” an assistant district attorney told the judge.
- Off-the-books payments by corporations are legal as long as they are not in the form of a paycheck. The Manhattan District Attorney’s Office, however, faults the Trump Organization and Allen Weisselberg for allegedly failing to account for checks given out, checks which Weisselberg signed.
- Allen Weisselberg and the Trump Organization pleaded not guilty and refute the indictments. The Trump Organization considers the indictment a political attack. Defense lawyers Alan S. Futerfas, Bettina Schein, and Susan R. Necheles consider the case one to be resolved by civil tax authorities.
“In our view, this case was brought because the companies’ name is Trump. This case signals that it is now open season for local prosecutors to target federal political opponents and adversaries.”
- Former President Donald Trump has not been personally charged with any crimes. Thursday morning, Weisselberg surrendered to authorities and turned himself in. If convicted, he faces more than 10 years in prison.
Weisselberg was released on his own recognizance after giving up his passport. He is expected in court on September 20.
