Trump Organization charges explained: Who’s indicted and why that matters for the former president

Trump impeachment

Former President Donald Trump’s business is under investigation.


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The Trump Organization is facing legal trouble this week, after the district attorney’s office in Manhattan charged the organization and its CFO, Allen Weisselberg, with crimes related to an alleged 15-year tax fraud scheme that began in 2005.

Though former President Donald Trump wasn’t named in Thursday’s indictment for criminal tax fraud, Trump himself is intricately linked to the Trump Organization, a group of hundreds of businesses including hotels, golf courses, residential towers and estates owned by Trump in some capacity. The ongoing investigation centers on the financial dealings of Trump’s keystone business operation.

The charges (PDF) allege that Trump’s business helped at least one executive in particular avoid paying taxes by hiding compensation and employment perks, including cars and rent for luxury housing, from state and federal tax offices.

Here’s what we know about the charges, what they mean for Trump’s business ventures, and what could happen next.

What are the criminal charges against the Trump Organization and Weisselberg?

According to the charges brought by the Manhattan District Attorney’s Office on Thursday, the Trump Organization and Weisselberg helped executives evade taxes by hiding compensation paid to employees. The charges (PDF) include the following:

  • From at least 2005 to around June 30, 2021, the Trump Organization and Weisselberg allegedly devised a scheme to compensate Weisselberg and other executives in a manner that was “off the books.”
  • Weisselberg allegedly concealed that he was a resident of New York City and avoided paying approximately $556,385 in federal taxes, $106,586 in state taxes and $238,159 in city taxes.
  • From 2005 to June 2021, the Trump Organization allegedly paid rent, utility bills and garage expenses for the apartment Weisselberg lived in. The compensation was unreported.
  • The Trump business allegedly paid private school tuition, which Weisselberg didn’t report, for several members of his family.
  • The Trump business allegedly made annual lease payments on two Mercedes-Benz cars that were used by Weisselberg and weren’t reported.
  • The Trump Organization allegedly used a records-keeping scheme that underreported compensation to Weisselberg and other executives. As a result of the underreporting, Weisselberg hid $1,760,630 in compensation from tax authorities.

How’s Trump involved?

Trump isn’t a direct target of the indictment, but analysts cited by CNBC note the activity around Weisselberg, a staunch ally of Trump’s for decades, could open up a broader investigation into the Trump Organization. Prosecutors continue to examine the organization’s financial records, as well as Trump’s tax returns and documents, looking for evidence of other financial crimes. It’s unclear if Trump or members of his family will be charged.

Trump’s business and real estate ventures, which include dozens of office buildings, apartments, hotels and golf courses, are the foundation of his personal wealth and fame. The Trump Organization is widely considered to have been the catalyst for Trump becoming a household name, getting the starring role on The Apprentice, and eventually winning the presidency. Legal trouble could affect Trump’s campaign if he were to run for a second term in 2024.

tax

The Trump Organization is accused of tax fraud.


CNET

What do we know about the central figure in this case?

Weisselberg has been associated with the Trump family for nearly 50 years, The New York Times reported. The longtime CFO first worked for the former president’s father, Fred Trump, before taking on his current role. According to The Times, Weisselberg established the organization’s accounting department and has helped with Trump’s personal tax returns. 

Legal experts speculate that the charges against the CFO could be an attempt by the district attorney’s office to pressure Weisselberg into providing evidence against Trump and the organization, The Associated Press reported.

What have Trump and the Trump Organization said about the charges?

Both Weisselberg and the Trump Organization pleaded not guilty to all charges.

In a statement Thursday, the Trump Organization said Weisselberg is being used in the investigation as “a pawn in a scorched earth attempt to harm the former President” and said, “This is not justice; this is politics.” 

Trump, in a separate statement on, said, “The political Witch Hunt by the Radical Left Democrats, with New York now taking over the assignment, continues. It is dividing our Country like never before!”

Who’s leading this investigation?

Manhattan District Attorney Cyrus Vance Jr. is heading up the investigation of the Trump Organization. Vance, an elected official, is stepping down at the end of the year, and the next district attorney is expected to pick up the investigation.

The New York Attorney General’s office, led by Attorney General Letitia James, is assisting in the criminal investigation.

What happens next?

Though Trump and members of the organization other than Weisselberg weren’t charged Thursday, the investigation isn’t finished and more charges are possible.

In a statement Thursday, New York Attorney General Letitia James said the investigation is ongoing “and we will follow the facts and the law wherever they may lead.”

The investigation into Trump and his organization has been running for two years. A grand jury hearing evidence in the investigation was convened in May and will continue to meet up to three times a week until late this year, The Washington Post reported. A judge can extend the grand jury’s time period.

In the next phase of the investigation, prosecutors are expected to continue looking into Trump Organization activities for potential financial crimes, The New York Times reported.

source: cnet.com