Last Tuesday, former President Donald Trump’s real estate umbrella was found guilty of tax fraud after two days of deliberation from a New York jury. Trump Corp and Trump Payroll Corp, which are two subsidiaries of the Trump Organization, were found guilty of all 17 counts of tax fraud and fabricating financial documents.
The business was found guilty of enriching its senior executives, which included the organization’s former CFO Allen Weisselberg (who famously took a plea deal back in August where he pleaded guilty to 15 felonies, some of which included tax evasion, in exchange for a shortened prison sentence and reduced fines totaling $2 million) with untaxed bonuses via 1099 checks over a period of 15 years. The company’s legal team argued that the scheme was Weisselberg’s alone, but the jury was not persuaded.
As of now, the Trump Organization is expected to face a fine of up to $1.6 million, which is a drop in the bucket for the real estate empire. However, the conviction will make future loan financing for the company very difficult. The company is expected to appeal the verdict.
The conviction adds to a litany of legal troubles for Trump. He and his family members and organization are also defendants in a civil lawsuit brought by New York Attorney General Letitia James, who is hoping to prevent them from engaging in real estate transactions in New York.