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Trump Organization's CFO surrenders ahead of expected tax-related criminal charges

By Arghyadeep on Jul 01, 2021 | 05:31 AM IST

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The Trump Organization’s longtime CFO, Allen Weisselberg, surrendered to authorities on Thursday as he and the company expected to face the first alleged criminal investigation on tax-related crimes later in the day.

Weisselberg helped former President Donald Trump to run the real estate empire during his presidency, has been seen entering Manhattan’s criminal court, Reuters reported.

It is still unknown what exact charges will be brought by the district attorney, Cyrus Vance.

The Manhattan district attorney’s office and New York state attorney general’s office investigated if Weisselberg and other Trump Organization’s employees evaded tax payment on fringe benefits received from the company like apartments, cars, and private-school tuition.

“Weisselberg intends to plead not guilty, and he will fight these charges in court,” his attorney, Mary Mulligan, said in a statement.

An arraignment against the Trump Organization could undermine the company’s relationships with the financial institutions and banks along with business partners. It can also complicate Trump’s political future as he expects to run again for president in 2024.

In a statement, the Trump Organization said Weisselberg, who has worked for the Trump family business for 48 years, is being used by Vance “as a pawn in a scorched earth attempt to harm the former president.”

“This is not justice; this is politics,” the company said, Reuters reported.

It is expected Trump himself will not be charged this week. However, prosecutors have said their probe into his company is continuing, his lawyer Ronald Fischetti has told Reuters.

The former president from the Republican party has denied any wrongdoing and called the probe a “witch hunt” by politically motivated prosecutors. Vance and James are both Democrats.

Former prosecutors said it is rare to charge an individual or company for tax evasion on employee benefits; however, it is estimated that this investigation is part of a broader criminal probe into whether the firm and its executives overvalued or undervalued its assets on loan, tax and insurance documents for financial gain.

The Trump Organization could face fines and other penalties if convicted.

Picture Credit: The Real Deal

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