Donald Trump’s company found guilty of tax fraud in scheme hatched by top executives
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NEW YORK (AP) — Donald Trump’s company was convicted of tax fraud on Tuesday in a case brought by the Manhattan District Attorney, a significant repudiation of financial practices at the former president’s business.
The guilty verdict came on the second day of deliberations following a trial in which the Trump Organization was accused of being complicit in a scheme by top executives to avoid paying personal income taxes on job perks such as rent-free apartments and luxury cars.
The conviction is a validation for New York prosecutors, who have spent three years investigating the former president and his businesses, though the penalties aren’t expected to be severe enough to jeopardize the future of Trump’s company.
As punishment, the Trump Organization could be fined up to $1.6 million — a relatively small amount for a company of its size, though the conviction might make some of its future deals more complicated.
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AP file
Federal authorities said Weisselberg, the Trump Organization's longtime chief financial officer, failed to pay taxes on more than $1.7 million worth of compensation.
Among those perks: The Trump Organization paid the rent on his Manhattan apartment, covered private school tuition for his grandchildren, leased Mercedes-Benz cars for him and his wife, gave him cash to hand out as holiday tips and paid for flat-screen TVs, carpeting, and furniture for his winter home in Florida. Weisselberg's son also didn't have to pay rent, or paid a below-market rent, while living in Trump-owned apartments.
AP fileFederal authorities said Weisselberg, the Trump Organization's longtime chief financial officer, failed to pay taxes on more than $1.7 million worth of compensation.
Among those perks: The Trump Organization paid the rent on his Manhattan apartment, covered private school tuition for his grandchildren, leased Mercedes-Benz cars for him and his wife, gave him cash to hand out as holiday tips and paid for flat-screen TVs, carpeting, and furniture for his winter home in Florida. Weisselberg's son also didn't have to pay rent, or paid a below-market rent, while living in Trump-owned apartments.
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Weisselberg is still employed by the Trump Organization, but his title was changed to senior adviser after the July 2021 indictment.
AP fileWeisselberg is still employed by the Trump Organization, but his title was changed to senior adviser after the July 2021 indictment.
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In the words of Weisselberg's lawyer, it was time to put an end to the yearslong "legal and personal nightmares it has caused for him and his family." The Trump Organization seemed to have no hard feelings, calling Weisselberg a "fine and honorable man" who has been "harassed, persecuted and threatened by law enforcement."
AP fileIn the words of Weisselberg's lawyer, it was time to put an end to the yearslong "legal and personal nightmares it has caused for him and his family." The Trump Organization seemed to have no hard feelings, calling Weisselberg a "fine and honorable man" who has been "harassed, persecuted and threatened by law enforcement."
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A judge has agreed to sentence Weisselberg to five months at New York's infamous Rikers Island jail complex. With good behavior, he'll be eligible for release after little more than three months. He'll also have to pay nearly $2 million and spend five years on probation. Crucially, though, he must testify truthfully when the Trump Organization goes on trial in October. Weisselberg won't be formally sentenced until after the trial. Until then, he remains free on bail.
AP fileA judge has agreed to sentence Weisselberg to five months at New York's infamous Rikers Island jail complex. With good behavior, he'll be eligible for release after little more than three months. He'll also have to pay nearly $2 million and spend five years on probation. Crucially, though, he must testify truthfully when the Trump Organization goes on trial in October. Weisselberg won't be formally sentenced until after the trial. Until then, he remains free on bail.
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In its statement, the company said it had done nothing wrong and would "look forward to having our day in court." Both Weisselberg and the Trump Organization initially pleaded not guilty to the charges, maintaining that the perks were standard for companies and the investigation was politically motivated. Weisselberg's agreement to testify, though, could substantially harm the company's defense. That could increase pressure for it to resolve the case without a trial.
AP fileIn its statement, the company said it had done nothing wrong and would "look forward to having our day in court." Both Weisselberg and the Trump Organization initially pleaded not guilty to the charges, maintaining that the perks were standard for companies and the investigation was politically motivated. Weisselberg's agreement to testify, though, could substantially harm the company's defense. That could increase pressure for it to resolve the case without a trial.
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It's a business entity through which Trump manages his many entrepreneurial affairs, including his investments in office towers, hotels and golf courses, his many marketing deals and his television pursuits. It runs golf clubs and hotels, collects checks from companies renting offices, and charges licensing fees to buildings and others for bearing the Trump name.
AP fileIt's a business entity through which Trump manages his many entrepreneurial affairs, including his investments in office towers, hotels and golf courses, his many marketing deals and his television pursuits. It runs golf clubs and hotels, collects checks from companies renting offices, and charges licensing fees to buildings and others for bearing the Trump name.
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It isn't clear. The Republican isn't charged in the case. Prosecutors haven't alleged any personal misconduct by Trump. If his company is convicted of a crime, though, it could lead to steep fines or complicate future business deals. A trial starting in October, right before the midterm elections, could also produce new revelations about the company's business practices — although Trump's supporters might not care. He's said the entire case is being cooked up by Democrats to damage him politically.
AP fileIt isn't clear. The Republican isn't charged in the case. Prosecutors haven't alleged any personal misconduct by Trump. If his company is convicted of a crime, though, it could lead to steep fines or complicate future business deals. A trial starting in October, right before the midterm elections, could also produce new revelations about the company's business practices — although Trump's supporters might not care. He's said the entire case is being cooked up by Democrats to damage him politically.
