Trump and his organization are facing charges of allegedly running a 15-year scheme that supported its executives to avoid taxes by paying them with lucrative amounts that were kept secret from authorities.
Manhattan District Attorney Cyrus Vance and New York State Attorney General Letitia James' offices obtained the grand jury indictments. Officials accuse the Republican businessman's organization of wrongdoing with Allen Weisselberg as an accomplice in a scheme to avoid paying taxes on certain compensations, said James.
Trump Organization's Illegal Scheme
Authorities said investigations into the matter would continue after the indictment and will follow the evidence and uphold the law wherever possible. On Thursday, officials escorted Weisselberg, who was handcuffed alongside his attorney and was escorted into a courtroom. The executive's passport was held as part of the terms of his release that he surrendered to investigators.
While authorities are not exactly restricting Weisselberg from traveling internationally, he has to ask the court's permission when he wants to do so. His next court appearance was scheduled for Sept. 20, 2021, at 9:30 a.m.
Court documents showed that Vance's office was responsible for investigating the company's criminal conduct, which includes falsifying business records, insurance fraud, and tax fraud. The Trump Organization had its headquarters in New York City, which is the jurisdiction of Vance's office, MSN reported.
In March, it was reported that Vance's office was investigating whether employees of the Trump Organization, including Weisselberg, were able to evade taxes in exchange for fringe benefits, which include apartments.
Carey Dunne, general counsel for the Manhattan district attorney, called the organization's actions an "illegal payments scheme." He said executives deliberately underreported their income and received secret benefits that were not shown in tax documents.
Hidden Financial Benefits
The indictment noted that Weisselberg's benefits were kept off the official records and stored in an internal spreadsheet. The indictment is the latest in a long-running legal battle against the Trump Organization by the district attorney's office.
While the indictment focused primarily on the tax scheme, it would allow prosecutors to conduct wider investigations in the future, which could focus on former President Donald Trump himself.
Investigators continued to pressure Weisselberg for months to get any information regarding the inquiry. Prosecutors had previously subpoenaed Weisselberg's personal tax returns and bank records. They also reviewed his financial endeavors and questioned his ex-daughter-in-law. Authorities conducted all of these to try and get the executive's cooperation regarding the case.
Authorities are continuing to pressure Weisselberg, where he could now face more than a decade in jail if he is convicted of the crimes, the New York Times reported.
The indictment alleged that Weisselberg was able to avoid $1.76 million in taxes from his income since 2005. Documents also claimed he kept his New York residency a secret to authorities to avoid city income taxes.
Prosecutors believe he was able to avoid more than $900,000 in federal, state, and city taxes using the illegal endeavors. The indictment also claimed Weisselberg received a total of $133,124 in state tax refunds which he was not supposed to receive, CNN reported.
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