Trump Organization Trial Update: Key Executive Reveals Role Of Family In Tax Fraud Scheme
Allen Weisselberg, the former chief financial officer of the Trump Organization, returned to the courtroom Thursday in the New York tax fraud trial involving the company.
Weisselberg told the Manhattan court that former President Donald Trump, and his sons Donald Trump Jr. and Eric Trump, were directly involved in a massive fraud scheme. Weisselberg and several top executives received fringe benefits, which in his case included a company-paid Manhattan apartment and school tuition payments for two of his grandchildren.
For several years, the company under-reported employees' salaries, while paying them in benefits that would count as compensation. The scheme helped the staff save thousands in income taxes and the company made savings on payroll taxes.
The tuition payments were made directly by Donald Trump.
"Don't forget, I'm going to pay you back for this," Weisselberg told the former president the first time he received a tuition check. He paid back the amount by taking a pay cut.
Defense attorney Alan Futerfas focused his questions on whether the payment schemes had a return for the Trump Organization.
"I didn't do an analysis but I knew there was a benefit to the company," Weisselberg said.
The practice continued until Trump entered the White House in January 2017.
"We were going through a company-wide cleanup process, making sure that since Mr. Trump was now president, everything was being done properly," Weisselberg said.
The trial had been previously delayed earlier this month after Jeff McConney, another key witness, tested positive for COVID-19.
Weisselberg, 75, had pleaded guilty to tax fraud in August. He said he benefited from a tax scheme that saw him earn $1.76 million in "indirect employee compensation" between 2005 and 2017.
Weisselberg is on paid leave and earns $640,000 annually.
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