A Manhattan jury convicted two Trump Organization companies of felony tax fraud and corporate document fabrication in connection with a 15-year plot to mislead tax authorities by neglecting to disclose and pay taxes on the income of senior executives.
The plan aimed to get around paying income taxes and trick the tax authorities. A key part of the scheme was for high-ranking executives to avoid paying their fair share of taxes on the money they earned.
A New York City jury found the Trump Organization guilty of tax fraud on Tuesday. This ruling was a huge blow to Donald Trump’s hopes of getting back into office as president of the United States.
A federal jury has concluded that the Trump Organization and the Trump Foundation conspired to defraud the government of tax revenue and to provide false information to the Internal Revenue Service. An investigation that began in 2016 has led to these allegations.
Tax evasion, collaboration, or document falsification may result in a $1.6 million penalty for the company. The court concluded that Trump should face no charges after hearing arguments on both sides.
Trump and his associates have never before been formally accused of criminal wrongdoing, prosecuted for any alleged violations, or proven guilty of any of the charges against them. A criminal inquiry has never led to a conviction, making this event historic.
The fact that Trump acknowledged operating losses of roughly $1 billion between 2009 and 2010 and losses every year for a decade beginning in 2009 and continuing in 2018 casts severe doubt on his boasts of financial power made on reality TV and during the campaign.
In addition, Trump’s firm lost almost $1 billion in 2009 and 2010 due to operational difficulties, and it lost money every year over the decade, as shown by the trial.
Manhattan District Attorney Alvin Bragg said in a statement made public on Tuesday that the Trump Organization and Trump Payroll Corporation “got away with a scheme that gave high-level executives lavish perks and compensation while hiding the benefits from the tax authorities to avoid paying taxes” for 13 years. In dispute is a plan that gave high-level executives expensive benefits and paid them while keeping it a secret from tax officials. Bragg says the scheme “gave high-level executives large salaries and benefits while hiding those benefits from the tax authorities.” This ruling means that Trump’s businesses will have to explain their decades-long engagement in illegal activity in a court of law.
After looking into the business dealings of the Trump Organization in detail, the Manhattan district attorney’s office decided to arrest the company and its former CFO, Allen Weisselberg. The Manhattan district attorney’s office came to this conclusion after a very in-depth investigation of the Trump Organization.
In exchange for a shorter sentence when he pleaded guilty and testified in August, Weisselberg didn’t pay taxes on about $2 million worth of company benefits. His benefits package covered the rent on his Manhattan apartment, the car payments for him and his wife, and the college costs for his grandchildren. In exchange for a shorter prison term, Weisselberg did this. He received a sentence reduction in return for his testimony. Trump claimed that he and other Trump Organization executives were free from paying taxes on their bonuses because they were “independent contractors.”
The prosecution opened its case against Trump and his two main companies, Trump Corporation, and Trump Payroll Corporation, on October 31.
Weisselberg, then 75, was the prosecution’s star witness until he pleaded guilty to 15 felony counts in August. He was sentenced to five months in prison and forced to pay almost $2 million in taxes, interest, and penalties after entering a guilty plea.
Following the announcement of the verdict, Donald Trump issued a statement in which he expressed “disappointment” and referred to the probe as a “witch hunt in Manhattan.” Trump kicked off his third run for the presidency on November 15.