Trump Organization Convicted on 17 Counts of Criminal Tax Fraud

Overview

A New York jury convicted Donald Trump's family business on all 17 criminal counts it faced. The Trump Organization became the first major company controlled by a U.S. president to be criminally convicted.

The conviction was for systematic tax fraud: paying senior executives with off-the-books benefits, concealing those benefits from tax authorities, and maintaining that concealment for 15 years.

The Compensation Scheme

CFO Allen Weisselberg received $1.76 million in compensation that was never reported to tax authorities. The payments took forms that were untraceable through normal channels: rent-free apartments in Manhattan, private school tuition for his grandchildren paid directly to the schools, luxury automobiles leased in the company's name.

He did not pay taxes on this income. The company falsified records to conceal it.

Weisselberg's Cooperation

Weisselberg cooperated against the company but not against Trump. He confirmed the scheme existed and testified to its mechanics. He did not testify that Trump had personally directed or authorized the concealment.

Prosecutors had wanted Weisselberg to testify against Trump. He declined. He served 100 days in Rikers Island and was released. He later pleaded guilty to additional perjury charges after testimony at Trump's New York civil fraud trial.

The Fine

$1.6 million is the maximum New York law allowed for the crimes charged. It is less than Weisselberg personally received in the scheme. It is a small fraction of what corporations typically pay in criminal fines for comparable conduct.

The conviction had no operational effect on the Trump Organization. Trump ran for president again, won, and returned to the White House.