Trump Organization Fined $1.6 Million For Tax Fraud Scheme
By Bill Galluccio
January 13, 2023
A New York judge issued a $1.6 million fine to the Trump Organization for illegally compensating some of its top executives with lavish perks in a 15-year tax avoidance scheme. Trump Corp. was fined $810,000, while Trump Payroll Corp. was fined $800,000.
The fine is the maximum allowed under the law and is double the amount the company's executives avoided in taxes.
The only executive criminally charged as part of the scheme was former Chief Financial Officer Allen Weisselberg. He reached a plea deal with prosecutors and was sentenced to five months in prison.
During the trial, Weisselberg detailed how top executives, including himself, received off-the-books benefits in addition to their pay. Those benefits included rent-free New York City apartments, luxury vehicles, and private school tuition.
Prosecutor Joshua Steinglass noted that the fine constitutes just "a fraction of the revenue" of the revenue of the Trump Organization but said it was essential to hold the company accountable.
"All of these corrupt practices were part of the Trump Organization executive compensation package, and it was certainly cheaper than paying higher salaries to those executives," he said.
The Trump Organization has 14 days to pay the fine.