Trump Organization: Criminal tax fraud trial begins in New York

2 years ago 27
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Prosecutor and judge seen during jury selectionImage source, Reuters

Image caption,

A jury of four women and eight men was chosen on Friday

A criminal tax fraud trial accusing the Trump Organization of paying untaxed perks to its executives has begun in New York.

The real estate business run by the ex-president's family is synonymous with Donald Trump, but he or his family members are not personally on trial.

A former executive who worked for Mr Trump for decades and pleaded guilty in August is expected to testify.

It is one of three legal cases that Mr Trump and his company face in New York.

New York City prosecutors accuse the company of a 15-year scheme to pay executives off books and by offering them untaxed perks.

An indictment accuses it of conspiracy, scheming to defraud, criminal tax fraud and falsifying business records. If convicted, the company could face fines amounting to over $1m (£870,000) and may face difficultly in securing loans and financing.

Allen Weisselberg, a long-serving chief financial officer for the Trump Organization, pleaded guilty to financial crimes in August as part of the case and is co-operating with prosecutors in exchange for a more lenient sentence.

He is expected to testify next week in the Manhattan courtroom, and will face sentencing after he speaks. He could be sentenced to 5 to 15 years if he refused to co-operate at trial.

In a plea agreement, the 75-year-old admitted his involvement in the scheme and to receiving private school tuition for his grandchildren, BMW cars and a home in Manhattan in exchange for his work.

Jury selection concluded on Friday after four women and eight men were chosen, as well as six alternatives in case a juror is dismissed for any reason. Defence lawyers for the Trump Organization say it has been difficult to find neutral jurors, and have called on lawyers to "keep politics out" of the courtroom.

The Trump Organization, through two corporate entities - the Trump Corporation and Trump Payroll Corporation - has pleaded not guilty and denies any wrongdoing.

Financial statements and cheques signed by Mr Trump are expected to be introduced as evidence during trial.

Mr Trump has slammed the criminal case, which has taken three years to bring to trial - as a "witch hunt".

He is not expected to testify or attend the trial, but the judge overseeing the case last week warned that Mr Trump and his three eldest children could be called to testify.

Mr Trump and his children are also facing a civil case brought by the New York state attorney general, accusing them of overstating the value of real estate properties, such as golf courses and hotels, in order to get more favourable loans and better tax rates.

Mr Trump, a Republican, is also being sued in New York by a group of protesters who say they were violently attacked by Mr Trump's security team while protesting outside Trump Tower in 2015.

Jury selection in that case begins in the Bronx on Monday.

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