Trump Organization Found Guilty of Tax Fraud. And NY Prosecutors Aren't Done Yet.

Written by Hudson Crozier

What happened: The Trump Organization was found guilty of tax fraud, conspiracy, scheme to defraud, and falsifying business records. The company could be fined up to $1.6 million, and its tarnished reputation will damage its business prospects. The defense said it will appeal the decision.

What did the company do? Former executive Allen Weisselberg pleaded guilty in August to giving expensive privileges to staff and family members—including luxury cars and apartments—with money that wasn’t reported to the IRS. The jury concluded that he acted on behalf of the company and that it wrongfully benefitted from his crimes.

Was Trump responsible? Former President Donald Trump and his family weren’t defendants in the case, and Weisselberg testified that the family wasn’t involved in his scheme. Trump personally approved some of the payments, but there isn’t evidence that he knew of Weisselberg’s wrongdoing. However, Weisselberg admitted that Donald Trump Jr. and his brother Eric found out he cheated on his taxes in 2017 and still gave him a raise without penalizing him.

New York isn’t done with Trump yet: Manhattan’s district attorney is pursuing a criminal probe into Trump’s alleged role in a “hush money” payment to a porn star. New York Attorney General Letitia James, who has centered her career on convicting Trump, is also suing Trump and his organization for alleged bank fraud. She won a settlement against Trump in 2019, forcing him to pay $2 million for misusing charity funds for political purposes.