Whew! It’s not a good Friday for the Trump Organization as two of its companies were ordered to pay a $1.6 million fine at sentencing today.
As it was previously reported last month, a jury unanimously found them guilty of 17 counts related to tax fraud. So where the heck did things go wrong? Well, executives at the two companies, called the Trump Corporation and Trump Payroll Corporation were accused of illegally reducing payroll liability through a variety of schemes. The schemes included giving executives untaxed bonuses and high-end perks worth millions, CBS News notes.
As a result of their alleged crime, Judge Juan Merchan hit the Trump Organization companies with the maximum penalty allowed in the case — which is double the amount of the taxes avoided. Now, it was noted that former President Donald Trump was not charged in the case. However, Manhattan District Attorney Alvin Bragg has said Trump remains under investigation.
To note, under New York law, the most the companies can be fined is about $1.6 million. This big penalty is something the Trump Organization can easily afford.
Allen Weisselberg, who is the longtime chief financial officer of the Trump Organization, was sentenced to five months in jail on Tuesday for his role in the tax fraud scheme. He served as the key witness in the monthlong trial after accepting a plea deal last August.
In a statement Friday, Manhattan District Attorney Alvin Bragg said “While corporations can’t serve jail time, this consequential conviction and sentencing serves as a reminder to corporations and executives that you cannot defraud tax authorities and get away with it.”
More On Donald Trump’s Legal Cases
Aside from this, Donald Trump and three of his adult children are currently facing a separate civil lawsuit from New York Attorney General Letitia James (D).
The family has been accused of manipulating property values to secure investments… in addition to tax and loan benefits. The case will be heading to trial in October.