Trump Organization CFO indicted on tax fraud charges

The Trump Organization and its chief financial officer, Allen Weisselberg both pleaded not guilty to tax-related criminal charges as part of a sweeping indictment probe on Thursday.

It is the first criminal case that the New York authorities' two-year investigation into the former president and his business dealings has yielded.

Weisselberg was charged in the 15-count indictment with avoiding taxes on $1.7 million (€1.44 million) of income, including on housing expenses, tuition and auto lease payments.

An affiliate of the company was charged with scheming to defraud.

The indictments did not implicate former President Donald Trump in any crimes.

Weisselberg, 73, wore handcuffs as he was led to the courtroom. He was seen entering a Manhattan court building housing the district attorney's office with his lawyer early Thursday morning, according to The New York Times.

'A sweeping and audacious' tax fraud scheme

According to the indictment filed Wednesday and unveiled Thursday, from 2005 through this year, Weisselberg and the Trump

The organization cheated the state and city out of taxes by conspiring to pay senior executives "off the books."

"This was a 15-year long tax fraud scheme involving off-the-books payments," prosecutor Carey Dunne said at the arraignment in Manhattan Criminal Court.

"It was orchestrated by the most senior executives who were financially benefiting themselves and the company, by getting secret pay raises at the expense of state and federal taxpayers," he said.

The prosecution called it "a sweeping and audacious'' tax fraud scheme.

Trump Organization responds

The Trump Organization is an unlisted family holding company that owns golf clubs, hotels and luxury properties.

Alan Futerfas, a lawyer for the Trump Organization, told reporters after the formal reading in court that the company was "very optimistic" the indictment would not significantly hurt its business.

"If the name of this company was something else, I don't think these charges would have been brought," he said.

What is the case about?

The case is will investigate whether Weisselberg and other officials received any benefits such as rent-free apartments and leased cars without reporting them properly on their tax returns. 

This would be the first criminal case to arise from the two-year probe led by Manhattan District Attorney Cyrus Vance Jr. in collaboration with New York state Attorney General Letitia James.

Court filings, public records and subpoenaed documents have shown that Weisselberg and his son Barry have received perks and gifts potentially worth hundreds of thousands of dollars, including many benefits related to real estate.

Trump, who was traveling to the US-Mexican border in Texas, did not respond to questions raised by reporters. He criticized President Joe Biden's immigration policy during the visit.

On Monday, Trump called prosecutors biased in a statement, and said his company's actions were "in no way a crime."

kmm, wd/sms (AP, Reuters)