Trump CFO’s Plea Deal Could Make Him a Prosecution Witness

August 18, 2022by Michael Sisak, Associated Press
Trump CFO’s Plea Deal Could Make Him a Prosecution Witness
Allen Weisselberg, right, stands behind then President-elect Donald Trump during a news conference in the lobby of Trump Tower in New York, Jan. 11, 2017. (AP Photo/Evan Vucci, File)

NEW YORK (AP) — The chief financial officer of Donald Trump’s company, Allen Weisselberg, is expected to plead guilty to tax violations Thursday in a deal that would require him to testify about illicit business practices at the Trump Organization, two people familiar with the matter told The Associated Press.

Weisselberg is charged with accepting more than $1.7 million in off-the-books compensation from the former president’s company over several years, including untaxed perks like rent, car payments and school tuition.

The plea deal would require Weisselberg to speak in court Thursday about the company’s role in the alleged compensation arrangement and possibly serve as a witness when the Trump Organization goes on trial in October on related criminal charges, the people said.

The two people were not authorized to speak publicly about the case and did so on condition of anonymity.

Weisselberg, 75, is likely to receive a sentence of five months in jail, to be served at New York City’s notorious Rikers Island complex, and he could be required to pay about $2 million in restitution, including taxes, penalties and interest, the people said. If that punishment holds, Weisselberg would be eligible for release after about 100 days.

Messages seeking comment were left with the Manhattan district attorney’s office and lawyers for Weisselberg and the Trump Organization.

Weisselberg 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, Alvin Bragg, allowed the grand jury to disband without charges. Both prosecutors are Democrats. Bragg has said the investigation is continuing.

The Trump Organization 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,” 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 Trump’s company misled lenders and tax authorities about asset values. Trump invoked his Fifth Amendment protection against self-incrimination more than 400 times.

A+
a-
  • Donald Trump
  • In The News

    Health

    Voting

    In The News

    March 28, 2024
    by Dan McCue
    Elections Task Force Prosecutes 2020 ‘Vigilantes,’ Seeks More Civic Dialogue

    PHOENIX, Ariz. – A 46-year-old Ohio man has been sentenced to 30 months in prison for sending death threats to... Read More

    PHOENIX, Ariz. – A 46-year-old Ohio man has been sentenced to 30 months in prison for sending death threats to an Arizona election official. The sentencing of Joshua Russell, of Bucyrus, Ohio, came after he pleaded guilty to one count of making a threatening interstate communication.... Read More

    March 28, 2024
    by Tom Ramstack
    Disney World Settles with Florida After Its Opposition to 'Don’t Say Gay' Law

    ORLANDO — The company that runs Walt Disney World reached a settlement Wednesday with appointees of Florida Gov. Ron DeSantis... Read More

    ORLANDO — The company that runs Walt Disney World reached a settlement Wednesday with appointees of Florida Gov. Ron DeSantis who were exerting controversial regulatory control over the huge tourism complex. The settlement resolves some of the disputes that arose after Disney officials publicly denounced the... Read More

    US Changes How It Categorizes People by Race and Ethnicity. It's the First Revision in 27 Years

    ORLANDO, Fla. (AP) — For the first time in 27 years, the U.S. government is changing how it categorizes people by race and... Read More

    ORLANDO, Fla. (AP) — For the first time in 27 years, the U.S. government is changing how it categorizes people by race and ethnicity, an effort that federal officials believe will more accurately count residents who identify as Hispanic and of Middle Eastern and North African heritage. The revisions... Read More

    March 28, 2024
    by Dan McCue
    Vice President Harris Rolls Out First Government-Wide Policy to Mitigate AI Risks

    WASHINGTON — Vice President Kamala Harris on Wednesday rolled out the Biden administration’s first government-wide policy intended to mitigate the... Read More

    WASHINGTON — Vice President Kamala Harris on Wednesday rolled out the Biden administration’s first government-wide policy intended to mitigate the risks associated with artificial intelligence while still enabling its use to advance the public interest. The new policy, which is being issued through the White House... Read More

    March 27, 2024
    by TWN Staff
    Rep. Cleaver New Co-Chair of House Renewable Energy and Energy Efficiency Caucus

    WASHINGTON — Rep. Emanuel Cleaver II, D-Mo., is the new Democratic co-chair of the House Renewable Energy and Energy Efficiency... Read More

    WASHINGTON — Rep. Emanuel Cleaver II, D-Mo., is the new Democratic co-chair of the House Renewable Energy and Energy Efficiency Caucus. He was invited to serve as co-chair by Sens. Jack Reed, D-R.I., and Mike Crapo, R-Idaho, the co-chairs of the Senate Renewable Energy and Energy... Read More

    March 27, 2024
    by Dan McCue
    One-Time Treatment Could Revitalize Immune Systems in the Elderly

    PALO ALTO, Calif. — A new study suggests that a one-time treatment that modulates the composition of a type of... Read More

    PALO ALTO, Calif. — A new study suggests that a one-time treatment that modulates the composition of a type of immune cell could potentially revitalize the immune systems of the elderly, helping their bodies better react to viral and bacterial threats. The research was carried out... Read More

    News From The Well
    scroll top