Indictments Hint at what is Coming for Trump
While yesterday's indictments against Trump CFO Allen Weisselberg and the Trump Organization seem fairly cut-and-dried, the biggest reveal was the looming possibility of charges that are yet to come.
Trump Organization CFO Allen Weisselberg was formally indicted yesterday with conspiracy to defraud, criminal tax fraud, falsifying records, and grand larceny, in a 24-page indictment that included 15 total charges. Prosecutors allege that he used his position to get out of paying taxes on $1.7 million in income.
Thursday’s unsealed indictment from Manhattan District Attorney Cyrus Vance also charged the Trump Organization and an entity called Trump Payroll Corporation with 10 counts connected to an alleged “off the books” scheme stretching back to 2005.
According to the indictment, "The scheme was intended to allow certain employees to substantially understate their compensation from the Trump Organization so that they could and did pay federal, state and local taxes in amounts that were significantly less than the amounts that should have been paid." Prosecutors allege that the Trump Organization went so far as to keep two sets of books that included a private ledger for Weisselberg's apartment and cars as part of his $940,000-a-year compensation, and another that didn't account for any of those perks so that Weisselberg could pay less in taxed income.
Included in extensive benefits that Weisselberg allegedly received from Donald Trump’s company in exchange for compensation is a luxurious Upper West Side apartment, two Mercedes-Benz cars, and paid private school tuition for two of his grandchildren.
The Manhattan District Attorney explained a detailed scheme by Weisselberg and the Trump Organization to avoid paying more than $900,000 in federal, state, and city taxes that started in 2005. According to Thursday’s indictment, Weisselberg went so far as to conceal that he was a resident of New York City, which allowed him to avoid city taxes — he also allegedly received a total of $133,124 in state tax refunds "to which he was not entitled."
Lawyers and representatives for the Trump Organization countered the criminal charges levied against the company as prosecutorial overreach. Ron Fischetti, a lead attorney for the Trump Organization, stated: "After years of investigation and the collection of millions of documents and devoting the resources of dozens of prosecutors and outside consultants, this is all they have? Fischetti continued, “In my 50 years of practice, I have never seen this office bring a case like this and, quite frankly, I am astonished.”
The Trump Organization also characterized the prosecution as a political act and said Allen Weisselberg was being used as a "pawn in a scorched-earth attempt to harm the former president."
Despite the extreme efforts made by Trump attorneys to counter public perception, the former president’s company and his chief financial officer are undoubtedly in serious legal jeopardy. It is rare for prosecutors to bring charges only related to allegations of enrichment stemming solely from fringe benefits provided by a company. Ultimately, the extensive detail of facts and presumable evidence collected by Vance’s office makes these allegations against Weisselberg and the Trump Organization fairly open and shut, with no real defense for the charges if they are proven true.
Not only are the second set of company books considered to be an extreme red flag, but the issue of proving Weisselberg’s intent to conspire and defraud will be simple. Considering that Weisselberg is the acting CFO — he has no legal excuse for not knowing that these perks were really taxable income.
Another interesting detail found in yesterday’s indictment is that Count 2 includes the mention of an “Unindicted Co-Conspirator #1” and their involvement in this case from March 31, 2005, to June 30, 2021. The mention of this individual means their actions are relevant to proving the underlying charges, but the fact that the co-conspirator has not been named or charged is telling.
Including this information here in the indictment could mean that this individual has been working with prosecutors in exchange for leniency, or it could also mean that the Manhattan DA could be holding back on charging this individual for now, which gives Vance’s office more leverage.
Investigative journalist Scott Stedman speculated that this unindicted co-conspirator #1 is Jeffrey S. McConney, Trump Organization Senior Vice president and Controller at the Trump family empire. McConney was brought in to testify before the grand jury in recent weeks leading up to the indictment—in the same expansive probe that the Manhattan District Attorney’s Office is using to indict former President Trump and others potentially.
Michael Cohen, Trump’s longtime fixer and former personal lawyer, told The Daily Beast, “Think of The Trump Organization as a small, one-teller bank.” Cohen continued, “Donald [Trump] would be the president. Allen [Weisselberg] would be the branch manager. Jeff [McConney] would be the teller. Every single transaction was booked through McConney.”
Ultimately, when the company would make a big payment, McConney, who has worked at the company for nearly 35 years, would order someone to cut the check and would have a final copy of that payment, complete with Trump’s signature. If something is incriminating within Trump Organization documents and tax paperwork that prosecutors are trying to use against Weisselberg or the twice-impeached former president, McConney is one of the few people who would have direct knowledge of what happened.
While it is likely that McConney is probably cooperating with Vance and is the un-named co-conspirator based on his position within the company and his involvement in the case up to this point, none of McConney’s participation, other than his Grand Jury appearance, has been formally confirmed, yet.
Another interesting aspect of yesterday’s charges is the mention of the Trump company president entering into a lease with Weisselberg and the insinuation that this was an overt act in furtherance of the conspiracy to defraud. Page 14 of the indictment makes a point to say the organization co-conspired "through its president." In 2005, the president of the Trump Organization was Donald. J. Trump.
Following yesterday’s unsealing of the indictment, Trump criticized the charges in a statement, claiming the investigation was led by two Democrats: Manhattan District Attorney Cyrus Vance and New York Attorney General Letitia James. "The political Witch Hunt by the Radical Left Democrats — with New York now taking over the assignment — continues.” Trump elaborated, “It is dividing our Country like never before!"
Perhaps even more telling: while the public was awaiting the release of the charges and Weisselberg’s appearance for his arrangement on Thursday, Donald Trump, through his senior advisor Jason Miller, launched his new social media platform called, “Gettr.”
The site, which could easily be seen as another ploy right out of the Trump Playbook to distract the public from his legal woes, advertises that it is “aimed at people who take issue with how major social media apps like Twitter moderate content on their platforms.”
Weisselberg pleaded not guilty to all charges after entering the New York Supreme Court in handcuffs — he was released on his own recognizance by Justice Juan Merchan, who also ordered him to turn over his passport. The Trump Organization also entered a “not guilty” plea to all charges.
Several state and federal probes into Trump, his family, and his company have been ongoing in several jurisdictions. At the same time, the issue of whether Trump and the Trump Organization misled lenders, insurers, and tax authorities about the value of certain properties is still under investigation. Another legal hurdle for Trump: hush-money payments to silence participants with whom he engaged in extra-marital affairs being claimed as tax deductions in an attempt to defraud the federal government.
With a myriad of charges still hanging over Trump’s head at the criminal and civil level, perhaps the most telling statement yesterday was made by Attorney General Letitia James, who was only an ancillary figure in yesterday’s bombshell indictment. “Today is an important marker in the ongoing criminal investigation of the Trump Corporation…This investigation will continue, and we will follow the facts and the law wherever they may lead,” said AG James, clearly teasing that there is likely more to come.
Amee Vanderpool writes the SHERO Newsletter and is an attorney, published author, contributor to newspapers and magazines, and analyst for BBC Radio. She can be reached at avanderpool@gmail.com or follow her on Twitter at @girlsreallyrule.
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His followers already drank the koolaide...all they have to do is swallow‼️
I have my doubts of Trump or is family ever being fully held accountable, but if they aren’t, their cult will follow them off a cliff and drag our country with them.