The CEO of former President Donald Trump’s family business pleaded guilty Thursday to tax evasion on free housing and other perks, and struck a deal with prosecutors that could make him a star in a trial against the company this fall. .
Allen Weiselberg, a senior adviser to the Trump Organization and the company’s former chief financial officer, pleaded guilty to all 15 counts he faced in the case.
In a low, somewhat husky voice, Weiselberg admitted to receiving more than $1.7 million in tax breaks, including his grandchildren’s school fees, free rent on a Manhattan apartment and luxury car rental, and apparently stayed with some of the plums. books.
Judge Juan Manuel Merchán agreed to sentence the 75-year-old to five months in New York’s Rikers Island prison complex, although he could be released after just over three months if he behaves well behind bars. The judge said Weiselberg will have to pay nearly $2 million in back taxes, fines and interest and complete five years of probation.
The plea deal also requires Weiselberg to truthfully testify as a witness for the prosecution when the Trump Organization goes on trial in October on related charges. The company is accused of withholding income taxes from Weiselberg and other executives for failing to accurately report their total compensation to the government. Trump himself is not to blame in this case.
Weiselberg will remain free on bail pending a formal sentence following the company’s trial. He didn’t say anything as he left the courthouse and didn’t respond when a reporter asked if he had any messages for Trump. If Weiselberg fails to comply with the terms of the order, prosecutors said they would seek “significant time in state prison”, with Merchan warning he could face a maximum sentence of 15 years on the main charge: larceny.
Weiselberg’s attorney, Nicholas Gravante Jr., said his client is pleading guilty “for closing this case and the years of legal and personal nightmares it has caused him and his family.”
Manhattan District Attorney Alvin Bragg said in a statement that Weiselberg’s statement “directly implicates the Trump Organization in criminal activities and requires Weiselberg to provide invaluable testimony against the corporation in an upcoming trial.”
“We look forward to proving our case against the Trump Organization in court,” he added.
Weiselberg’s testimony could weaken the company’s defense. If found guilty, the company could be fined twice the amount of unpaid taxes or possibly placed on probation and forced to change its business practices.
On Thursday, the company praised Weiselberg as an honorable and trustworthy employee, who said he “harassed and threatened law enforcement, in particular the Manhattan District Attorney, during the politically motivated pursuit of President Trump.”
In a statement, the company accused prosecutors of trying to pressure Weiselberg into defaming Trump and using family executive benefits, such as a company car, to sue him.
The company, which was not involved in Weiselberg’s guilty plea on Thursday, said it did nothing wrong, admits no guilt and looks forward to “having our day in court”.
Weiselberg, considered one of Trump’s most loyal business partners, is the only person facing criminal charges so far in the Manhattan District Attorney’s long investigation into the company.
Weiselberg began working for the Trump Organization in 1973, when it was run by Trump’s father Fred. After his hire in July 2021, the company changed his role from CFO to Senior Consultant. The CFO position remains vacant.
Weiselberg agreed to plead guilty days after a hearing in which Merchan denied his request to drop the charges. The judge rejected the defense’s argument that the district attorney’s office was punishing Weiselberg because he did not offer information that could harm Trump.
The prosecutor was also investigating whether Trump or his companies lied to banks or the government about their property values to obtain loans or reduce taxes.
Then-District Attorney Cyrus Vance Jr., who launched the investigation, ordered his deputies last year to present evidence to a grand jury and pursue charges against Trump, said former prosecutor Mark Pomeranz, who previously led the investigation. But after Vance resigned in January, his successor, Bragg, allowed the grand jury to dissolve without charge. Both prosecutors are Democrats. Bragg said the investigation is ongoing.
Prosecutors alleged that the company provided tax-free benefits to top executives, including Weiselberg, for 15 years. Weiselberg alone was accused of defrauding federal, state and local governments of more than $900,000 in unpaid taxes and unpaid tax refunds.
Trump, a Republican, criticized the New York investigation as a “political witch hunt” and said his company’s actions were standard practice in the real estate industry and by no means criminal.
Last week, Trump participated in a deposition with New York Attorney General Letitia James in a civil investigation into allegations that Trump’s company misled creditors and tax officials about the value of assets. Trump invoked his Fifth Amendment protection against self-incrimination more than 400 times.
James, whose investigation uncovered the evidence that led to Weiselberg’s indictment, said in a statement: “Let this guilty plea send a message loud and clear: we will crack down on anyone who steals from the public for personal gain, because no one is up for it. from that.” law.”
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
