Donald Trump’s sprawling real estate company was convicted of tax evasion and other financial crimes on Tuesday in a surprise and high-profile crackdown on the former president’s businesses, which comes as he launches an already controversial bid for the presidency in 2024.
Jurors found the organization guilty on all 17 counts on the second day of deliberations. The ruling capped a trial in which the Manhattan district attorney’s office brought a lawsuit accusing the Trump Organization of running a years-long fraud scheme by the company’s top executives, in which some executives avoided paying income taxes on benefits such as Upscale. Apartments for relatives, luxury cars, and private school tuition.
The organization was found guilty of fraud, conspiracy, criminal tax evasion, and scheme to falsify business records.
Prosecutors did not indict Trump himself but accused him of knowing what was going on — and even approving key parts of the plan.
Prosecutors had earlier secured a guilty plea from Allen Wesselberg, the company’s longtime chief financial officer who prosecutors portrayed as the scheme’s architect. Wesselberg admitted to cooking the company’s books to avoid taxes.
Much of the trial hinged on Wesselberg’s testimony, although on the stand Wesselberg did not directly implicate Trump, instead taking much of the responsibility for the scheme himself. He gave the statement in exchange for a five-month prison sentence.
The Trump Organization could be fined up to $1.6 million — probably not enough to meaningfully affect the company.
Trump has maintained that he has done nothing wrong, and lawyers for the Trump Organization argued throughout the trial that Wesselberg and other executives operated alone, with no Trump or his family members involved. But prosecutors told jurors that Trump was “apparently condoning tax evasion,” showing them documents, including a lease Trump signed for one of Wesselberg’s properties.
The decision is a tough and high-profile condemnation of the Trump Organization, which is known for its long and visible reach to hotels and resorts. The company catapulted Trump to fame and fortune in the 1980s and 1990s, making him a television celebrity and leading to his eventual political career.
Tuesday’s news is sure to provide rich fodder for Trump’s critics, including those within his own party, whose voices have grown louder over the past several weeks.
Republicans loyal to the former president began openly speculating about his future as party leader after disappointing midterm election results, in which voters rejected several high-profile, Trump-backed candidates.
Shortly after, Trump announced his intention to run for president in 2024 and sparked two controversies in several weeks – first, by having dinner with rapper Kanye “Ye” West, who made anti-Semitic comments, and Nick Fuentes, accused by justice. The department is white supremacist and has recently claimed the election was rigged, saying the constitution should be ignored.
Trump has been particularly vocal about the case in recent weeks, often posting on his social media site that the case is a politically motivated “witch hunt” and targeting New York officials and New York Attorney General Letitia James.
James praised Tuesday’s ruling in a statement.
“We can have no tolerance for individuals or organizations that violate our laws to line their own pockets. I commend Manhattan District Attorney Alvin Bragg and his team for their successful prosecution of the Trump Organization, and I am proud to assist in this important case. This ruling makes clear It sends the message that no one, no organization is above our laws,” James said.
The ruling could also trigger a concurrent civil suit brought by James, who is suing Trump and several of his adult children for fraud, accusing them of lying to the bank and overvaluing the company’s assets. As a result of that case, a judge established a third-party monitor to oversee aspects of the Trump Organization’s business. It continues.
Trump is also the subject of a pair of Justice Department investigations into the violent Jan. 6, 2021, uprising at the Capitol and Trump’s handling of classified documents after he left office, as well as efforts to obstruct that investigation. Attorney General Merrick Garland recently tapped career Justice Department prosecutor Jack Smith as special counsel to take on those investigations.