Prosecutors in Manhattan are charging the corporation of deceiving tax authorities by giving “off the books” bonuses to company leaders, and jury selection is set to begin on Monday in the tax fraud trial of the former U.S. President Donald Trump’s real estate company, Reuters reports.
As Trump explores a candidacy for the president in 2024, he faces an increasing number of legal challenges, including criminal prosecution in a New York state court. In July 2021, the Trump Organization and Allen Weisselberg, its then-chief financial officer, were both prosecuted by the Manhattan district attorney’s office.
In an arrangement with the prosecution that calls for him to testify at this trial, Weisselberg pled guilty to 15 crimes in August, including grand theft and tax fraud. He also admitted hiding $1.76 million in income.
The three counts of tax fraud and the additional six counts against The Trump Organization, which manages hotels, golf courses, and other real estates throughout the globe, may result in fines of up to $1.6 million.
Trump was not charged but the former president is also dealing with a federal criminal investigation into the removal of official papers from the White House after he left office last year.
Monday is the scheduled start date for the jury selection procedure, and Justice Juan Merchan will preside. Prospective jurors may be questioned about their personal opinions on Trump, a Republican businessman-turned-politician who first rose to celebrity decades ago in the most populated U.S. city, and whether they can determine the case impartially by attorneys from both sides. The Democratic Party is quite strong in the city.
The business was charged with committing tax fraud over a 15-year period beginning in 2005, according to the prosecution. They claim that by permitting certain employees to understate their taxable wages, the business was able to escape payroll taxes.
The case has been referred to as a “selective prosecution” by the Trump Organization’s legal team because of the prosecution’s bias towards Trump because of his political beliefs, but the judge presiding over it has dismissed that claim. Both the Manhattan District Attorney Alvin Bragg and Cyrus Vance, who launched the probe, are Democrats.
The investigation’s two main prosecutors retired in February, one of whom believed that criminal charges against Trump should be filed while Bragg expressed skepticism. Weisselberg, who spent 50 years working for the corporation, claims that his charges were brought against him because he refused to turn against his former employer. In an August ruling to allow the lawsuit to proceed, Merchan rejected that defense.
Against the Trump Organization, Trump, and three of his adult children, New York state attorney general Letitia James filed a civil fraud lawsuit in September, alleging that they overstated asset values and his net worth in order to obtain favorable bank loans and insurance coverage. The criminal case is distinct from the civil lawsuit.
Trump has criticized the Democratic James lawsuit and the accusations made by Bragg as being politically motivated.
Weisselberg must spend five months in jail, according to the plea bargain.
By neglecting to report the benefits as income, Weisselberg allegedly avoided paying $900,000 in taxes and received $133,000 in overpayments. Prosecutors also claimed that two other workers for the Trump Organization were paid in the form of hotel stays and automobile leases.
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