Allen Weisselberg
Dear Commons Community,
The New York Times is reporting this morning that the Manhattan district attorney’s office has informed Donald J. Trump’s lawyers that it is considering criminal charges against his family business, the Trump Organization, in connection with fringe benefits the company awarded a top executive, according to several people with knowledge of the matter.
The prosecutors had been building a case for months against the executive, Allen H. Weisselberg, as part of an effort to pressure him to cooperate with a broader inquiry into Mr. Trump’s business dealings. But it was not previously known that the Trump Organization also might face charges.
If the case moves ahead, the district attorney, Cyrus R. Vance Jr., could announce charges as soon as next week, the people said. Mr. Vance’s prosecutors have been conducting the investigation along with lawyers from the office of the New York State attorney general, Letitia James.
Any indictment would be the first to emerge from the long-running investigation and would raise the startling prospect of a former president having to defend the company he founded, and has run for decades, against accusations of criminal behavior.
Prosecutors recently have focused much of their investigation into the perks Mr. Trump and the company doled out to Mr. Weisselberg and other executives, including tens of thousands of dollars in private school tuition for one of Mr. Weisselberg’s grandchildren, as well as rents on apartments and car leases.
They are looking into whether those benefits were properly recorded in the company’s ledgers and whether taxes were paid on them, The New York Times has reported.
Mr. Trump’s lawyers met on Thursday with senior prosecutors in the district attorney’s office in hopes of persuading them to abandon any plan to charge the company, according to several people familiar with the meeting. Such meetings are routine in white-collar criminal investigations, and it is unclear whether the prosecutors have made a final decision on whether to charge the Trump Organization, which has long denied wrongdoing.
“In my more than 50 years of practice, never before have I seen a district attorney’s office target a company over employee compensation or fringe benefits,” said Ronald P. Fischetti, a personal lawyer for Mr. Trump. “It’s ridiculous and outrageous.”
Several lawyers who specialize in tax rules have told The New York Times that it would be highly unusual to indict a company just for failing to pay taxes on fringe benefits. None of them could cite any recent example, noting that many companies provide their employees with benefits like company cars.
It is my sense that the charge of failing to pay taxes on fringe benefits is rather minor and may just be the first salvo in a number of other charges that might be coming. It also appears that the Trump Organization’s CFO, Allen Weisselberg, is not cooperating with the Manhattan district attorney.
Tony
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