12/11/22

By Aditi Jha

The Trump Organization has been found guilty on all of the multiple charges of criminal tax fraud and falsifying business records. It will be sentenced in January and could face up to 1.61 million dollars in fines. The former president is also facing a $250 million lawsuit by Letitia James, the New York attorney general that argues he and his children have been in a decade-long scheme. Manhattan District Attorney Alvin Bragg said that the tax fraud was "about greed and cheating" and that the "Trump Corporation and the Trump Payroll Corporation got away with a scheme that awarded high-level executives with lavish perks and compensation while intentionally concealing the benefits from the taxing authorities to avoid paying taxes. Today's verdict holds these Trump companies accountable for their long-running criminal scheme." Former federal prosecutor Elie Honig said that it is a "victory" for Bragg. "Their theory, now, that part of the income for employees, including Allen Weisselberg, was paid through fringe benefits in order to avoid tax liability - that theory has been vindicated." In recent months former President Trump has been investigated by recently appointed special counsel, Jack Smith. The investigation centers around the 2020 presidential election, and has almost double the amount of staff that Robert Mueller had for the Russia probe. Smith has recently requested that a federal judge hold Trump in contempt for not agreeing to a subpoena requiring him to turn over classified documents. He issued several subpoenas, some to election officials in Wisconsin, Michigan and Arizona who communicated with Trump around the election. Prosecutors have been added to the DOJ's January 6th investigation, which has been focusing on whether the former president was involved or knew about the insurrection that happened on that day. Honig told CNN that "Mueller was starting virtually from scratch, whereas Jack Smith is seemingly integrating on the fly into an active, fast-moving investigation." CNN reports that the amount of evidence that Smith's investigations have already uncovered is much more than what Mueller started with. However on Friday, a federal judge declined to hold Trump in contempt of court in the Justice Department's Mar-a-Lago investigation into the potential mishandling of national security records. There may be charges within months. Honig says that "It could well be that Jack Smith moves more quickly than Merrick Garland would and forces a decision to Merrick Garland's desk more quickly than it might have otherwise." Smith will also lead a financial probe that will, among other things, look into financial crimes and the potential misuse of political contributions.

That's the news for today! Stay safe!

Trump's classic delay and divert legal strategy is running out of road

Weisselberg walked a fine line in his testimony, telling the jury he never wanted to hurt the company, he was driven by greed and mainly wanted to pay less in taxes. But, he also said, he knew at the time the company would benefit to some degree from his schemes.

In his testimony Weisselberg said, “It was a benefit to the company but primarily it was due to my greed.” He told the jury that the company saved money by paying less taxes on his off-the-books compensation and acknowledged when asked by prosecutor Susan Hoffinger if, while his primary goal was to avoid taxes, it also created a benefit to the company.

“To some degree, yes,” Weisselberg testified.

Weisselberg said he and McConney knew at the time that the company would pay less payroll taxes through the scheme although he said they never discussed it explicitly.

The Trump attorneys argued, repeatedly, to the jury that “Weisselberg did it for Weisselberg” to emphasize that he was motivated solely by his personal greed.

On cross examination, Weisselberg agreed that the decision to not pay taxes was his and made solely to benefit himself.

“That was my intent,” Weisselberg said when questioned by the Trump attorneys, “to benefit myself.”

The lawyers for the Trump entities called just one fact witness, the real estate companies’ long-time accountant Donald Bender from Mazars USA, which dropped Trump as a client earlier this year.

Trump attorneys said Bender was either aware of the off-the-books compensation or should have caught the tax fraud and they accused him of lying on the stand.

When questioned by prosecutors Bender testified that he trusted and relied on Weisselberg, who testified that he hid the illegal scheme.

Steinglass, the prosecutor, told the jury the Trump companies were guilty, and the illegal scheme was concocted “so the employees can get more net pay while costing the Trump Corporation less. It’s a win-win – unless you’re the tax authorities.”