New York prosecutors on Thursday unveiled the first charges in their grand jury investigation into the Trump Organization, charging the former president’s company and its …
New York prosecutors on Thursday unveiled the first charges in their grand jury investigation into the Trump Organization, charging the former president’s company and its chief financial officer (CFO), Allen Weisselberg, with tax-related crimes. Prosecutors allege a 15-year scheme in which the Trump Organization compensated Weisselberg in a manner that allowed the company and the executive to evade taxes. The defendants deny any wrongdoing and argue that the charges are politically motivated. The allegations stem from a years-long investigation by the Manhattan district attorney’s office that has involved prosecutors obtaining former President Trump ’s tax returns. Thursday’s indictment doesn’t charge the former president with any crimes, but prosecutors say their investigation is ongoing. Here are five things to know about the indictment. Prosecutors say Weisselberg avoided taxes on about $1.7 million of income According to the indictment, Weisselberg received indirect compensation from the Trump Organization over a number of years of about $1.76 million. The company avoided reporting the income to tax authorities and withholding taxes from it, and Weisselberg hid the income from his tax preparer and didn’t report it on his tax returns, prosecutors claim. “During the period of the scheme, Weisselberg thereby evaded approximately $556,385 in federal taxes, approximately $106,568 in state taxes, and approximately $238,159 in New York City taxes, and he falsely claimed and received approximately $94,902 in federal tax refunds and approximately $38,222 in state tax refunds, to which he was not entitled,” the indictment said. Much of the untaxed compensation, more than $1.1 million from 2005 through 2017, came from the Trump Organization paying rent and related expenses for a Manhattan apartment where Weisselberg resided. While the apartment was Weisselberg’s main residence starting in 2005, the CFO falsely claimed to tax authorities that he wasn’t a New York City resident for a number of years and started paying city income taxes only after he sold a home on Long Island in 2013, according to court papers.
