Former Trump Organization CFO Pleads Guilty to Tax Fraud Scheme

By: Mary Katherine Browne

A former Trump Organization CFO has pleaded guilty to all charges against him for his role in a 15-year tax fraud scheme and will serve five months in jail in exchange for his testimony against his former employer in an upcoming criminal trial.

Allen H. Weisselberg admitted in a Manhattan courtroom August 18 that he engaged in a scheme to defraud federal, New York state, and New York City tax authorities to skirt taxes on $1.76 million in unreported income. 

In July 2021 Weisselberg was indicted on 15 charges, all stemming from perks the Trump Organization provided to employees. Those benefits included the use of apartments and company-leased automobiles and private school tuition for Weisselberg’s grandchildren.

While there’s nothing inherently wrong with a company paying for employee perks, those benefits are compensation provided by the employer to the employee that must be reported for income and employment tax purposes.

Weisselberg admitted that from 2005 to 2021, he conspired with other company executives to dodge taxes by not reporting or misreporting these perks in order to enrich himself and other employees.

After his arrest in 2021, Weisselberg’s title changed from CFO to senior adviser. No successor has been appointed to the CFO position.

Weisselberg’s guilty plea comes days after the court rejected his motion to dismiss the charges, which alleged that he was being punished for refusing to provide illicit information on former President Trump.

According to a plea agreement with prosecutors, Weisselberg will pay all remaining tax liabilities and serve five months in prison, followed by five years of probation. He has waived his right to an appeal. New York County Supreme Court Judge Juan Merchan said sentencing will take place after the Trump Organization’s trial. 

Merchan warned Weisselberg that if he failed to meet the conditions of his plea agreement, Merchan would be “at liberty to impose any lawful sentence, which in your case includes imprisonment from five to 15 years.”

As part of his plea deal, Weisselberg will provide testimony as a prosecution witness against his former employer but will not voluntarily be a part of other investigations. 

“This plea agreement directly implicates the Trump Organization in a wide range of criminal activity and requires Weisselberg to provide invaluable testimony in the upcoming trial against the corporation. Furthermore, thanks to the incredibly hard work and dedication of the team prosecuting this case, Weisselberg will spend time behind bars. We look forward to proving our case in court against the Trump Organization,” Manhattan District Attorney Alvin L. Bragg Jr. said in a release.

Neither Trump nor his children have been charged in this case.

“There is a zero tolerance for individuals who defraud our state and cheat our communities. For years, Mr. Weisselberg broke the law to line his own pockets and fund a lavish lifestyle. Today, that misconduct ends. Let this guilty plea send a loud and clear message: we will crack down on anyone who steals from the public for personal gain because no one is above the law,” New York Attorney General Letitia James said in a statement.

The Trump Organization trial is scheduled to begin in October.