A New York judge will sentence two Trump Organization entities on Friday for operating a ten-year tax fraud scheme. This is a symbolic event because it is the only criminal conviction that has come close to involving former President Donald Trump.
The Trump Corp. and Trump Payroll Corp., two Trump entities, were found guilty of 17 felonies, including tax fraud and fabricating financial records, last month.
The maximum fine that the businesses could face under New York law is about $1.6 million, a cost that the Trump Organization could easily afford.
Due to the lack of a legal procedure for dissolving a company, the real estate industry is not in danger of being destroyed. No one will be imprisoned as a result of the jury’s decision. The Trump Organization’s reputation and capacity to transact business, secure loans, or win contracts could be adversely affected by a felony conviction.
Although the former president and his family were not charged in this case, the prosecution frequently brought up Trump’s involvement with the untaxed benefits given to some executives, such as company-funded apartments, car leases, and personal expenses, during the trial. Trump “explicitly sanctioned” tax fraud, according to one prosecutor.
Allen Weisselberg, the longtime CFO of the Trump Organization, entered a plea agreement with prosecutors earlier this week, and as a result, was given a sentence of five months in prison. Weisselberg agreed to testify truthfully against the company at trial after entering a guilty plea to 15 felonies connected to the tax fraud scheme.
Up until Tuesday, when he was sentenced, he continued to be on paid leave from the Trump Organization, where he was paid slightly more than $1 million annually. One person with knowledge of the agreement described Weisselberg’s severance package as “generous.”
Judge Juan Merchan, who will determine how long the Trump entities are imprisoned, stated that if it weren’t for the plea agreement, he would have given Weisselberg a longer sentence after hearing the trial’s testimony.
Merchan stated that the payment Weisselberg made to his wife, who never worked for Trump, in order for her to qualify for Social Security, totaling $6,000, was what he found most “offensive.”