Trump Organization CFO Allen Weisselberg Indicted on Tax Fraud Charges

The Indictment

On July 1, 2021, a Manhattan grand jury indicted Allen Weisselberg, the Trump Organization’s longtime chief financial officer, and the Trump Organization itself on charges of running a sweeping tax fraud scheme spanning 15 years. The indictment alleged that Weisselberg and other executives received substantial off-the-books compensation, including rent-free apartments, luxury cars, private school tuition, and other perks, none of which were properly reported as income.

The Scheme

According to prosecutors, the scheme was designed to allow top executives to receive compensation while evading taxes on that income. Weisselberg alone was alleged to have received more than $1.7 million in unreported compensation. The indictment described an internal accounting system in which the company maintained a separate set of records tracking these undisclosed benefits, with some entries literally kept in a ledger identified as “personal” expenses. Prosecutors said the practice was widespread within the organization and amounted to a deliberate effort to defraud tax authorities at the city, state, and federal levels.

Weisselberg’s Position

Weisselberg had worked for the Trump family for nearly five decades, first under Fred Trump Sr. and then for Donald Trump. He was widely regarded as the person who knew more about the Trump Organization’s finances than anyone other than Trump himself. Prosecutors had hoped to pressure Weisselberg into cooperating against Trump personally, but Weisselberg initially refused to flip on his employer. He ultimately pleaded guilty in August 2022 and agreed to testify at the Trump Organization’s trial, though his cooperation was limited in scope.

The Company’s Conviction

The Trump Organization itself went to trial in late 2022 and was convicted on all 17 counts of tax fraud. The company was fined $1.6 million, the maximum penalty allowed. While the fine was modest for a large real estate operation, the conviction marked the first time a former president’s company had been found guilty of criminal conduct. Trump was not personally charged in the case, though prosecutors made clear the investigation into his personal conduct was ongoing.