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Crime Donald Trump The Trump Organization

Senior Trump Org. Employee Cooperating With Prosecutors In Tax Fraud Investigation: Report

By now, disgraced former president Donald Trump probably thought his legal problems couldn’t possibly get any worse. After all, he’s facing criminal investigations and possible indictment in multiple states (i.e. Georgia and New York) and may also be prosecuted on federal charges for his role in the January 6, 2021 Capitol insurrection. Oh, and there’s also the hoarding of classified documents at his Mar-a-Lago resort.

And now Bloomberg reports that a former senior executive for the Trump Organization is cooperating with prosecutors as they investigate the ex-president and his company for tax fraud.

One of Donald Trump’s most loyal deputies is expected to testify against the Trump Organization, in a trial that threatens to reveal the inner workings of the real estate empire that set the former president on his path to the White House.

Allen Weisselberg, who was the company’s accounting chief for decades, is almost certain to be called to the witness stand by New York prosecutors in the trial, which starts with jury selection Monday in Manhattan. The government claims the company routinely low-balled its tax exposure by paying senior executives with perks like company cars and rent-free apartments.

Barbara McQuade, a former federal prosecutor who teaches at the University of Michigan Law School, says the case against Weisselberg is groundbreaking:

“The world is about to see just how the Trump Organization ran its business. This is a significant case. The criminal charges are against Trump’s corporation, which is a small private company, but Donald Trump is the Trump Organization.”

Weisselberg was showered with perks and non-taxed benefits during his time with the Trump Organization. Those included “utilities and garage expenses, a Mercedes-Benz, tuition payments to a private school for his grandchildren, unreported cash and various personal expenses for his homes and his son’s apartment, including flat-screen televisions, new beds, carpeting and furniture.”

All of those extras were supposed to be taxed the same as income. But they weren’t, and that constitutes tax fraud.

Financial experts say a conviction in the tax case against Trump and Trump Org. would be significant.

Daniel Horwitz, a former prosecutor at the Manhattan DA’s office, notes:

“A conviction in a criminal case is serious. Is it definitive that a company convicted of a crime will be shunned by lenders and creditors? Not necessarily. Is it a good thing if the Trump Organization is convicted of cheating the government of millions of dollars in taxes over the years? No, it’s not good.”

 

By Andrew Bradford

Proud progressive journalist and political adviser living behind enemy lines in Red America.

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