Ex-Director of the Trump Organization admitted to tax fraud: he is ready to testify against the company

The former CFO of the Trump Organization pleaded guilty to being involved in a tax fraud scheme and agreed to testify against the company. Writes about it CNN.

Allen Weisselberg, the former CFO of the Trump Organization, pleaded guilty to a 15-year tax fraud scheme, and as part of the deal, he agreed to testify against the 45th President Donald Trump's real estate company.

In court, Weisselberg said "Yes, your honor" when asked if he would plead guilty.

Weisselberg pleaded guilty to 15 felony charges and admitted to not paying taxes on $1,7 million in income, including luxury benefits such as rent and utilities for a Manhattan apartment, renting a couple of Mercedes-Benz cars, and training in private school for his grandchildren.

He admitted to hiding these benefits from his accountant in order to understate his income and deliberately withheld income from his personal tax returns.

Weisselberg answered a number of the judge's specific questions about the scheme in a hushed and barely audible tone by repeatedly saying, "Yes, your honor."

As part of the deal, he will pay nearly $2 million in back taxes, interest and penalties and waive the right to appeal.

Judge Juan Mercan said Weisselberg would be sentenced after the trial of the Trump organization. He explained that the agreement was for a five-month sentence followed by a five-year probationary period.

On the subject: Investigation against Trump in New York: State Attorney General released details of the case

The judge warned Weisselberg in case he did not comply with all the terms of the plea agreement: "I can issue any legal sentence, which in your case includes imprisonment for a term of 5 to 15 years."

The statement puts him at odds with the Trump Organization, where he worked for 40 years, and his testimony could hurt the company if it goes to trial on related tax charges as scheduled in October.

Weisselberg has been fiercely loyal to the Trump family, working for them since 1973. However, even when testifying against the company, Weisselberg will not accuse any member of the 45th president's family. If the Trump Organization is found guilty, it may be ordered to pay taxes and fines, but no one will go to jail.

“Today, Allen Weisselberg admitted in court that he used his position in the Trump organization to defraud taxpayers and enrich himself,” Manhattan District Attorney Alvin Bragg said in a statement. “This plea agreement directly implicates the Trump organization in a wide range of criminal activities and requires Weisselberg to provide invaluable testimony in an upcoming lawsuit against the corporation. We look forward to proving our case in court against the Trump organization."

Weisselberg is likely to be in New York's infamous Rikers Island Prison. Given good behavior, a third of the sentence could be dropped, meaning Weisselberg could end up serving around 100 days behind bars. None of the charges against Weisselberg carry a mandatory prison sentence, but the maximum sentence for the most serious charges is 15 years.

Prosecutor Joshua Steinglass said during the hearing that if Weisselberg failed to meet all of his obligations, he would recommend a term in a public prison.

The Manhattan District Attorney's Office announced tax charges in the summer of 2021 as it pressured Weisselberg to cooperate against Trump in a wide-ranging investigation into whether the Trump Organization and its senior management provided misleading financial statements to obtain loans, insurance and tax credits. .

The guilty plea was made two months before Weisselberg was due to stand trial and a week after a New York State judge denied his motion to dismiss the indictment.

Trump Organization officials deny any wrongdoing. Trump called the investigation politically motivated. No other executive has been charged in the tax case, and Trump, Donald Trump Jr., Eric Trump, and Ivanka Trump have not been charged with any wrongdoing.

The Trump Organization was charged with 10 counts and Weisselberg with 15 felony counts.

Weisselberg acknowledged that the scheme was carried out with Jeffrey McConnie, a longtime controller of the Trump Organization.

McConnie received immunity for his grand jury testimony, people familiar with the matter said. The indictment named him as an accomplice who was not charged.

Weisselberg's admission of guilt came during a dramatic trial period for Trump, who recently testified in the New York Attorney General's civil investigation. He defended his right to the Fifth Amendment and refused to answer hundreds of questions about the financial records of the Trump Organization.

This happened two days after the FBI issued a warrant for search of Trump's private residence in Mar-a-Lago in Florida as part of a criminal investigation into the handling of presidential records, including secret documents.