 "Allen Weisselberg")
A top executive at former President Donald Trump's family business pleaded guilty on Thursday to evading taxes in a deal that could potentially make him a star witness against the company at a fall trial.
Trump Organisation CFO Allen Weisselberg pleaded guilty to all 15 of the charges he faced in the case.
In a low, somewhat hoarse voice, he admitted taking in over $1.7 million worth of untaxed perks -- including school tuition for his grandchildren, free rent for a Manhattan apartment and lease payments for a luxury car -- and explicitly keeping some of the plums off the books.
Judge Juan Manuel Merchan agreed to sentence Weisselberg to five months' incarceration at New York City's Rikers Island jail complex, although he will be eligible for release much earlier if he behaves well behind bars. The judge said Weisselberg will have to pay nearly $2 million in taxes, penalties and interest.
The plea bargain also requires Weisselberg to testify truthfully as a prosecution witness when the Trump Organization goes on trial in October on related charges. The company is accused of helping Weisselberg and other executives avoid income taxes by failing to accurately report their full compensation to the government. Trump himself is not charged in the case.
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Weisselberg said nothing as he left court, offering no reply when a journalist asked him whether he had any message for Trump.
Weisselberg's lawyer Nicholas Gravante Jr. said his client pleaded guilty to put an end to this case and the years-long legal and personal nightmares it has caused for him and his family.
"We are glad to have this behind him, the lawyer added.
Manhattan District Attorney Alvin Bragg said in a statement that Weisselberg's plea directly implicates the Trump Organization in a wide range of criminal activity and requires Weisselberg to provide invaluable testimony in the upcoming trial against the corporation.
We look forward to proving our case in court against the Trump Organization, he added.
Testimony by Weisselberg could potentially weaken the Trump Organization's defense. If convicted, the company could face fines or potentially be placed on probation and be forced to change certain business practices.
Weisselberg, 75, is the only person to face criminal charges so far in the Manhattan district attorney's long-running investigation of the company's business practices.
Seen as one of Trump's most loyal business associates, Weisselberg was arrested in July 2021. His lawyers have argued the Democrat-led district attorney's office was punishing him because he wouldn't offer information that would damage Trump.
The district attorney has also been investigating whether Trump or his company lied to banks or the government about the value of its properties to obtain loans or reduce tax bills.
Then-District Attorney Cyrus Vance Jr., who started the investigation, last year directed his deputies to present evidence to a grand jury and seek an indictment of Trump, according to former prosecutor Mark Pomerantz, who previously led the probe.
But after Vance left office, his successor, Bragg, allowed the grand jury to disband without charges. Both prosecutors are Democrats. Bragg has said the investigation is continuing.
The Trump Organisation is not involved in Weisselberg's expected guilty plea Thursday and is scheduled to be tried in the alleged compensation scheme in October.
Prosecutors alleged that the company gave untaxed fringe benefits to senior executives, including Weisselberg, for 15 years. Weisselberg alone was accused of defrauding the federal government, state and city out of more than $900,000 in unpaid taxes and undeserved tax refunds.
Under state law, punishment for the most serious charge against Weisselberg, grand larceny, could carry a penalty as high as 15 years in prison. But the charge carries no mandatory minimum, and most first-time offenders in tax-related cases never end up behind bars.
The tax fraud charges against the Trump Organization are punishable by a fine of double the amount of unpaid taxes, or $250,000, whichever is larger.
Trump has not been charged in the criminal probe. The Republican has decried the New York investigations as a political witch hunt and has said his company's actions were standard practice in the real estate business and in no way a crime.
Last week, Trump sat for a deposition in New York Attorney General Letitia James' parallel civil investigation into allegations that Trump's company misled lenders and tax authorities about asset values. Trump invoked his Fifth Amendment protection against self-incrimination more than 400 times.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
