Former President Donald Trump’s company, the Trump Organization, and its longtime chief financial officer, Allen Weisselberg, have been charged by New York authorities over a 15-year-long “sweeping and audacious” tax fraud scheme which saw Weisselberg collect more than $1.7 million in “off-the-books” income and benefits. It is the first criminal case against Trump’s company.
A few months ago, it was reported that the Manhattan district attorney’s office had already convened a grand jury deciding whether or not to indict the company and its CFO over the relevant charges, and on Thursday, the grand jury had officially decided to hand down the indictment. Weisselberg was charged with 15 felony counts for evading tax and officially surrendered to the district attorney’s office on Thursday, just before the grand jury made its announcement.
The indictment accuses the Trump Organization and Weisselberg of engaging in a 15-year scheme to help top executives (including Weisselberg himself) evade payroll and income taxes by compensating them with off-the-books benefits, including apartment rent, car payments, school tuition, utility payments, and home furnishings.
Weisselberg, who pleaded not guilty, could face up to 15 years in prison if he is found guilty of the most serious charge, grand larceny. He was accused specifically of defrauding the federal, state, and city governments in unpaid taxes and tax refunds. He surrendered his passport to the New York Supreme Court on Thursday and was released without bail to await further hearings.
Trump himself, who was mentioned in the indictment but not charged, decried the indictment as a “political Witch Hunt by the Radial Left Democrats.” He is, however, still being investigated by both the Manhattan district attorney and New York attorney general. The grand jury that handed down Thursday’s indictment will continue to meet frequently until at least later this year.
It is rare for prosecutors to bring charges solely related to tax evasion related to fringe benefits provided by a company, and so it is very much a possibility that more charges will be handed down in the near future.
Lawyers for both Weisselberg and the Trump Organization described the indictment as being politically motivated and totally inappropriate, while defending the company’s actions as being standard practice and not a crime. The company’s lawyers accused the prosecutors’ offices for using Weisselberg “as a pawn in a scorched-earth attempt to harm the former president,” and that neither the district attorney’s office nor the IRS have ever brought charges before a company over benefits given to employees.
Manhattan District Attorney Cy Vance had fought for years to obtain Trump’s tax records, culminating in two successful attempts at the Supreme Court to obtain them. Those tax returns are part of the evidence in this case and continue to be investigated. Vance is not seeking reelection this November, so this indictment is likely to be the most lasting part of his legacy. His successor is likely to continue the investigation.
The 73-year-old Weisselberg could prove useful to prosecutors if he ultimately decides to strike a plea deal. It could provide the prosecutors with damaging information about Trump. Trump has depended on his loyalty since they started working closely together in the 1970s, and has even once said that he was “100 percent” certain that Weisselberg had not betrayed him.
The charges come just as Trump is discussing a possible run for president in 2024. He has recently held numerous rallies and made public appearances, and if Trump is ultimately indicted, it could seriously hamper his efforts to make a comeback run in 2024.
In addition, the indictment could pose serious problems for the Trump Organization. Companies are often reluctant to do business with companies being indicted, and it could have major collateral consequences against the company. The company continues to owe Deutsche Bank nearly $330 million in debt, and if the company is convicted, the bank could demand immediate repayment of its loans,
Vance has said he would decide, before he leaves office on Dec. 31 this year, whether or not to charge Trump. It will be interesting to see how this plays out over the course of the year.