New York, August 18: A top executive at former U.S. President Donald Trump’s family business pleaded guilty Thursday to evading taxes in a deal with prosecutors that could potentially make him a star witness against the company at a trial this fall.
Trump Organization 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 US$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 in 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 and complete five years of probation.
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 report their full compensation accurately to the government. Trump himself is not charged in the case.
Weisselberg said nothing as he left court, offering no reply when a journalist asked whether he had any message for Trump.
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.
The company praised Weisselberg on Thursday as a trusted, honorable veteran employee who has been “persecuted and threatened by law enforcement, particularly the Manhattan district attorney, in their never-ending, politically motivated quest to get President Trump.”
In a statement, the company accused prosecutors of trying to pressure Weisselberg to cast aspersions on Trump, and of stretching to make a criminal case out of familiar executive perks such as a company car.
The company said it has done nothing wrong, won’t plead guilty and looks forward “to having our day in court.”
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 Organization is not involved in Weisselberg’s 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.
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