NEW YORK – Donald Trump’s chief finance officer will plead guilty Thursday to tax violations. The deal would also require him to testify regarding illegal business practices at Trump’s former company, according to two sources familiar with the matter.
Allen Weisselberg was charged with receiving more than $1.7million in compensation off the books from Trump Organization over several year, which includes untaxed perks such as rent and car payments, school tuition, and other perks.
The plea agreement would have the Weisselberg testify in court on Thursday regarding the company’s role and potentially serve as witness in case against the Trump Organization in October.
The two individuals were not allowed to talk publicly about this case, but they did so under the condition of anonymity.
Weisselberg will likely receive five months imprisonment. This sentence will be served at New York City’s Rikers Island Complex. He could also be subject to $2 million of restitution including penalties, taxes and interest. Weisselberg could be released after 100days if that sentence is imposed.
Messages for comment were sent to the Manhattan District Attorney’s Office and Weisselberg lawyers and the Trump Organization.
Weisselberg has been the only one to be charged in criminal proceedings so far by the Manhattan District Attorney’s ongoing investigation into the company’s business practices.
Long considered one of Trump’s most loyal business associates and friends, Weisselberg arrested July 2021. According to his lawyers, the Democrat-led District Attorney’s Office was accusing Weisselberg of being punished because he refused to give information that could harm Trump.
The district attorney is also investigating whether Trump’s company or bank lied about its property value to get loans or lower tax bills.
Executive District Attorney Cyrus Vance Jr. initiated the investigation and directed his deputy to present evidence before a grand jury to seek an indictment against Trump. Former prosecutor Mark Pomerantz was the former leader of the probe.
But after Vance resigned, Alvin Bragg became his successor and allowed the grand juries to dissolve without any charges. Both of the prosecutors were Democrats. Bragg stated that the investigation was ongoing.
The Trump Organization was not part of Weisselberg’s likely guilty plea on Thursday. They are scheduled to face trial in October for the alleged compensation scheme.
Prosecutors claimed that Weisselberg and other senior executives received untaxed fringe benefit for 15years. 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.
The most severe charge against Weisselberg is grand larceny. According to state law, a sentence of up to 15 year in prison could be imposed. The charge does not carry a mandatory minimum and many tax-related first offenders never get to the 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 was not charged in this criminal investigation. Trump has dismissed the New York investigation as “political witch hunting” and said that his company’s actions in real estate were a standard practice, not a crime.
Trump took part in a deposition last week as part of a parallel civil investigation by New York Attorney General Letitia Jams into claims that Trump’s firm misled tax authorities and lenders about the asset values. Trump used his Fifth Amendment protection from self-incrimination for more than 400 instances.
