Michael R by Sisak | The Associated Press
NEW YORK – CFO of Donald Trump’s company, Alan Weiselberg, is expected to plead guilty Thursday to tax violations in a deal that would require him to testify about illegal business practices at the Trump Organization, the case told me by two people I know. The Associated Press.
Weiselberg has been accused of accepting more than $1.7 million in unaccounted-for compensation from the former president’s company over a number of years, which includes non-tax allowances such as rent, car payments and school fees.
The plea deal will require Weiselberg to speak in court Thursday about the company’s role in the alleged indemnification agreement and possibly serve as a witness if the Trump Organization faces related criminal charges in October, People said.
Both men were not authorized to speak publicly about the matter and did so on condition of anonymity.
Weiselberg, 75, is likely to face a five-month sentence for serving at New York City’s notorious Rikers Island complex and may have to pay nearly $2 million in compensation, including taxes, penalties and interest. Said. If this sentence were upheld, Weiselberg could be released after about 100 days.
Messages asking for comment were left with the Manhattan Attorney’s Office and attorneys for Weiselberg and the Trump Organization.
Weiselberg is the only person so far prosecuted in a long-running investigation into the company’s business practices by the Manhattan Attorney.
Weiselberg is considered one of Trump’s most loyal business partners and was arrested in July 2021. His attorneys have argued that the Democrat-led prosecutor’s office is punishing him for failing to provide information that would harm Trump.
The district attorney is also investigating whether Trump or his company lied about the value of their properties to obtain bank or government loans or reduce tax bills.
Then-district attorney Cyrus Vance Jr., who opened the investigation, last year directed his deputies to present evidence to a grand jury and bring Trump’s indictment, according to former prosecutor Mark Pomerantz, who previously led the investigation. did.
But after Vance resigned, his successor, Alvin Bragg, allowed the grand jury to dissolve without indictment. Both prosecutors are Democrats. Bragg said the investigation is ongoing.
The Trump Organization is not involved in Weiselberg’s expected guilty plea on Thursday and is due to go to court in October over the alleged compensation scheme.
Prosecutors allege that the company provided 15 years of untaxed benefits to senior employees, including Weiselberg. Weiselberg alone has been accused of defrauding the federal, state and city of more than $900,000 in unpaid taxes and unwanted tax refunds.
Under state law, the most serious charge against Weiselberg, aggravated theft, carries a maximum sentence of 15 years in prison. But the fee has no minimum requirements, and most first-time tax offenders never end up behind bars.
Tax fraud allegations against the Trump Organization are punishable by a fine of up to twice the unpaid tax or $250,000, whichever is greater.
Trump has not been charged with any criminal investigation. Republicans have dismissed the New York investigation as a “political witch hunt,” saying their company’s actions are standard real estate practice and in no way a crime.
Last week, in a parallel civil investigation into allegations by New York Attorney General Letitia James, Trump sat down to a statement that Trump’s company had misled lenders and tax officials about real estate values. Trump has invoked his Fifth Amendment protections against self-incrimination more than 400 times.