Trump company, chief indicted in tax fraud case
The company that bears Donald Trump’s name along with its chief financial officer were indicted by the Manhattan district attorney’s office on charges of tax and benefits fraud, in a major blow to the former US president on Thursday.
The Trump Organization and its chief financial officer Allen Weisselberg were charged with plotting to defraud tax authorities since 2005 through the awarding of benefits to company executives off the books.
Both the company and Weisselberg have pleaded not guilty.
Weisselberg, 73, was also charged with concealing $1.76 million of income, including rent for a Manhattan apartment, lease payments for two Mercedes-Benz vehicles and tuition for family members, with Trump himself signing checks for the tuition.
“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,” said prosecutor Carey Dunne during the arraignment.
Weisselberg, who has worked for Trump for 48 years, was charged with grand larceny in the 15-count indictment.
Manhattan District Attorney Cyrus Vance Jr began the investigation nearly three years ago and has been working with New York attorney general Letitia James on the case. Both Democrats attended Thursday’s arraignment in the Manhattan Criminal Court.
“The political Witch Hunt by the Radical Left Democrats, with New York now taking over the assignment, continues,” said Trump in a statement. “It is dividing our Country like never before!”
In another statement by a Trump Organization spokesperson, it said Weisselberg is being used by the Manhattan District Attorney as a pawn in a scorched earth attempt to harm the former president.
Trump Organization lawyers said the case should be resolved by civil tax authorities.
The Trump Organization operates hotels, golf courses and resorts around the world. Before entering the White House in January 2017, Trump put the company into a trust run by his sons Donald Jr and Eric, as well as Weisselberg.
Ex-president not charged
Trump was not charged, but prosecutors noted that he signed some of the compensation checks at the center of the alleged scheme.
From 2005 through this year, the Trump Organization and Weisselberg deprived the state and city of taxes by conspiring to pay senior executives off the books through fringe benefits and other means.
Grand larceny, which was the most serious charge against Weisselberg, carries five to 15 years in prison. Tax fraud charges against the company are punishable by $250,000, or a fine double the amount of unpaid taxes, depending on whichever figure is larger.