Trump Organization, CFO expected to be charged with tax-related offenses
Sources tell FOX Business’ Charlie Gasparino Manhattan DA was looking to use CFO as a key witness on accounting irregularities.
For the past five years, Manhattan District Attorney Cy Vance has been investigating The Trump Organization, Donald Trump, his sons Eric and Don Jr., for alleged tax fraud. The inquiry produced 3 million pages of documents based on 100 subpoenas. As FOX Business first reported, Vance even created a task force of accountants and lawyers to make a possible indictment of the former president and his sons the office’s top priority.
The result of this effort will be disclosed Thursday in what appears to be a case that falls significantly short of prosecutors’ initial grandiose visions. FOX Business has learned that Vance’s office plans to charge the Trump Organization’s Chief Financial Officer Allen Weisselberg, and the organization itself with fraud over perks Weisselberg received that were not counted as income, and thus, allegedly criminally evaded taxes.
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Neither the former president nor his two sons, with whom he runs his real estate and country club empire, are expected to be charged, people with direct knowledge of the matter tell FOX Business.
The expected indictment of Weisselberg will come after months of pressure by Vance’s sprawling team of lawyers assigned to the case to have him flip on Trump and his family to become a key witness in a broader tax evasion, these people add. Weisselberg has so far refused. leading to the current set of charges. People close to him say he and his lawyers are confident that they will prevail in court.
Legal experts tell FOX Business tax-evasion cases over perks are rarely brought by criminal authorities because of the murky of the tax law when it comes to such fringe benefits. The Internal Revenue Service often allows certain carve-outs for not declaring perks as income, including educational expenses and medical benefits. The case against Weisselberg stems around private-school tuition for his children, his use of a company car and a company apartment, these people add.