The Manhattan District Attorney Thursday announced that Allen Weisselberg, Chief Financial Officer of the Trump Organization, pleaded guilty to 15 charges of defrauding federal, New York State and New York City tax authorities. According to the District Attorney, Weisselberg evaded paying taxes on over $1.76 million in unreported income. Weisselberg received the unreported income in the form of rental payments for a Manhattan Apartment, multiple Mercedes Benz vehicles, private school tuition for his grandchildren, cash and additions to his Florida home.
Weisselberg implicated the Trump Organization when he admitted they engaged in the scheme to defraud together. Weisselberg claimed that Trump Organization employees, including himself, were compensated so that large portions of their salaries went unreported to tax authorities. Additionally, the Trump Organization failed to withhold income taxes from Weisselberg’s wages. This allowed them to evade paying payroll taxes on their employee compensation. Weisselberg also received numerous large bonuses that he reported as “non-employee compensation,” even though he was a Trump Organization employee. He was able to then make false business deductions and contributions to a tax-deferred pension plan.
The New York County Court gave Weisselberg five months in prison in exchange for his truthful testimony in an upcoming trial against the Trump Organization for the same claims. Wesselberg is also required to pay his unreported taxes, penalties and interest due to the local and state tax authorities; he owes a total of $1,994,321.