Trump Org. fined $1.6 million after conviction for 17 felonies

A New York judge penalized the Trump Organization $1.6 million – the maximum penalty – on Friday for conducting a decade-long tax fraud scheme, a landmark moment because it is the only criminal conviction that has come close to Donald Trump.

Last month, two Trump companies, The Trump Corp. and Trump Payroll Corp., were convicted of 17 offenses, including tax evasion and falsifying corporate records.

Under New York law, corporations can only be penalized up to $1.6 million, which the Trump Organization can afford.

Prosecutor Joshua Steinglass asked Judge Juan Merchan to levy the maximum sentence on the Trump Organization, although he admitted that it would have “little impact” on a multibillion-dollar corporation.

“We all know that these organizations cannot go to jail like Allen Weisselberg,” Steinglass said on Friday, referring to the Trump Organization’s long-time chief financial officer, who was sentenced to five months in prison earlier this week as part of a plea deal with prosecutors. “The only way to stop someone from doing something like this is to make it as expensive as possible.”

This Verdict Was Momentous

On Friday, Alvin Bragg, the New York District Attorney, said that the fines against the Trump Organization are big, but he also wants lawmakers to make fines for businesses that break the law even bigger.

“This verdict was momentous,” Bragg said outside the courthouse on Friday, “the first ever for a criminal conviction of former President Trump’s enterprises, and I would go so far as to say the first time for any former president in my lifetime.”

However, Bragg believes that the fine is insufficient.

“To be clear, we do not believe that is sufficient; we believe that our laws in this state must be changed to catch this type of decade-plus widespread, atrocious fraud,” Bragg said.

Trump Organization Has 14 Days To Pay The Fine.

The real estate business is not in danger of being shut down because there is no legal mechanism to dissolve the company. No one will be imprisoned as a result of the jury’s decision. A felony conviction, on the other hand, may harm the Trump Organization’s reputation and ability to do business and acquire financing or contracts.

Trump and his family were not charged in this case, but prosecutors cited the former president several times during the trial about his link to the untaxed benefits given to certain officials, including company-funded homes, car leases, and personal expenses. According to one prosecution, Trump “explicitly sanctioned” tax evasion.

One juror said that the jury saw a “culture of deception” at the Trump Organization, but when they talked about Trump’s knowledge of the alleged crimes, they called him “Bob Smith.”

Weisselberg pleaded guilty to 15 charges concerning the tax fraud scheme last year and promised to testify honestly against the corporation at trial.

Weisselbeg Plead Guilty to 15 Charges

He remained on paid leave at the Trump Organization, where he was paid somewhat more than $1 million per year, until his sentence on Tuesday. Weisselberg received a “substantial” severance package, according to one individual familiar with the agreement.

Merchan, who sentenced Weisselberg, stated at the time that if it hadn’t been for the plea agreement, he would have sentenced Weisselberg to a longer time in prison after hearing the evidence at trial.

Merchan called it “offensive” that a $6,000 payroll check was made out to Weisselberg’s wife, who had never worked for Trump, so she could get Social Security payments.

According to a Trump Organization spokesman, Weisselberg “is a victim,” as is the firm and the previous president.

“Even though New York has become the world’s crime and murder capital, these politically driven prosecutors will stop at nothing to get President Trump and continue the never-ending witch-hunt that began the day he announced his candidacy,” the spokesperson stated. “We did nothing illegal and intended to challenge this decision.”

District Attorney’s Office Is Still Looking Into The Company’s Operations.

Prosecutors are conducting a broad investigation, and in recent months their focus has shifted back to the company’s role in hush-money payments made to keep adult film star Stormy Daniels from going public with an affair with Trump just before the 2016 election, according to people familiar with the matter. Trump has denied having an affair.

According to the people, prosecutors are also looking into potential insurance fraud after fresh information emerged from the New York attorney general’s civil inquiry into the integrity of the Trump Organization’s financial accounts.

The most serious threat to the company right now could be New York Attorney General Letitia James’ $250 million civil lawsuit, which claims Trump, his three eldest children, Weisselberg, and others defrauded lenders, insurers, and tax authorities for more than a decade by inflating the value of multiple Trump Organization properties.

In addition to monetary damages, James, a Democrat, is trying to permanently prevent Trump and the children mentioned in the case from acting as directors of a New York-registered firm. She is also attempting to have the Trump Organization’s corporate certificate revoked, which, if successful, would effectively force the company to discontinue operations in New York state.

The judge presiding over the case appointed an impartial monitor to assess the Trump Organization’s financial accounts and business decisions. He recently turned down requests to end the lawsuit and said he was considering punishing Trump’s lawyers. The trial date has been scheduled for October.

Trump has denied any wrongdoing and claims the case is political.

SOURCE – (AP)