New York prosecutors investigating former US President Donald Trump’s business practices are likely to issue one or more criminal indictments this week – but not against Trump himself, according to those involved in the case.
Ronald Fischetti, an attorney representing Trump, said Monday that he expects “no charges” to be brought against Trump in the early stages of the indictment, based on discussions with prosecutors. Others familiar with the matter said prosecutors are preparing criminal charges against Alan Weiselberg, longtime chief financial officer for the Trump Organization, and are also considering criminal charges against the company.
After a nearly three-year investigation into Trump’s estate transactions, initial charges by Manhattan District Attorney Cyrus Vance Jr. will focus primarily on whether Weiselberg and other company executives received corporate perks and benefits, such as Rent-free apartments and leased cars, which were not properly reported on their tax returns, according to several people familiar with the investigation. The exact charges that prosecutors are preparing are not known
The indictment will be the first in the investigation against top executives at Trump’s company, marking a significant shift from investigation to prosecutor.
Prosecutors are pressuring 73-year-old Weiselberg to cooperate with their investigation and testify, so far to no avail. An indictment would add to that pressure. Weiselberg is among Trump’s closest confidants, having worked for the company since 1973 when it was run by Trump’s father, Fred.
New York State Attorney General Letitia James has also joined the investigation. Spokesmen for both Manhattan and the state prosecutors’ offices declined to comment. A lawyer for Weiselberg also declined to comment.
Trump’s lawyer, Fischetti, said the case is “shameful” and has no merit.
“In my more than 50 years of practice, I’ve never before seen the District Attorney’s Office target a company over employee compensation or fringe benefits,” said Fischetti, a longtime white-collar criminal attorney.
“They say their investigation is ongoing, but it’s a very shallow indictment for all of them,” he said.
Trump issued a statement Monday night calling prosecutors “uncivilized, nasty and completely biased” and his company’s actions “not a crime in any way.”
“They are still ‘crime looking’ and will do anything to scare people into making up stories or lies that they want to, but have been completely unable to do,” Trump said.
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Extensive criminal investigations have investigated a range of potential wrongdoings, including manipulating the value of its properties to reduce its tax burden and secure more favorable loans from creditors, including Trump’s eponymous real estate company. Former Trump attorney and fixer Michael Cohen testified to Congress that such practices were regular at the company. He has spoken to prosecutors several times.
People familiar with the matter said more charges could surface against the company or its executives in the coming weeks.
Since last fall, prosecutors have focused increasingly on the use of company perks and benefits as compensation for corporate executives. Jennifer Weiselberg, the ex-wife of Ellen Weiselberg’s son Barry, has met with prosecutors a half-dozen times, as recently as 10 days ago. Her lawyer said she provided boxes of financial statements along with tax and bank records.
Barry Weiselberg also worked for the Trump Organization, helping to manage two ice-skating rinks and a carousel in New York’s Central Park, all operated by the company under contract with the City of New York. Those contracts have been terminated.
“Jennifer Weiselberg is continuing to provide prosecutors with a very wide range of documents and testimony, and was there during first-hand conversations about Fringe benefits and other things, and is relaying the conversation to prosecutors that she is in private. Her lawyer, Duncan Levine, told Reuters.
Court filings, public records and documents presented in the investigation show that Allen and Barry Weiselberg received corporate allowances and gifts potentially worth hundreds of thousands of dollars during their years with the Trump Organization. If they fail to properly account for that money on tax returns and other financial filings, it could put them in legal jeopardy.
Many of the benefits gained by the Weisselbergs revolve around real estate.
In 2005, Barry married and moved into a Trump-owned unit in a building overlooking Central Park. In a 2018 statement tied to their divorce, Barry said that he and his wife did not pay rent during the more than five years they lived there. The couple’s tax return, submitted by the district attorney and reviewed by Reuters, does not account for free rent as compensation or gifts.
Similar units were rented at the time for several thousand dollars a month, with real estate data showing the value of the free apartment at the couple’s residence at around $200,000.
After Barry’s divorce, he moved again to an apartment owned by Trump, where he also lived on rent, court records showed. Barry Weiselberg’s attorney could not immediately be contacted for comment.
During their marriage, Barry and Jennifer Weiselberg enjoyed other gifts and perks provided by their father, raising questions about whether some of those benefits may also have come from the Trump Organization.
When asked in his 2018 statement whether he considered that money a gift, Barry said he viewed the payment as “financial aid.” When asked whether former President Trump would eventually cover those costs or other expenses for the couple, Barry said, “I don’t know.”