Allen Weisselberg, the longtime Chief Financial Officer of Donald Trump's company, pleaded guilty to tax violations on Thursday.
The guilty plea was part of a deal that would require him to testify about illicit business practices at the Trump Organization, which is set to begin in October, according to the Manhattan Manhattan District Attorney's office.
Weisselberg was charged with taking more than $1.7 million in off-the-books compensation from the Trump Organization over several years, including untaxed perks like rent, car payments and school tuition. All told, he admitted to all 15 felony counts in the indictment against him, including to running a years-long tax fraud scheme while working at the company, according to the Manhattan DA's office.
"Yes, your honor," Weisselberg said repeatedly in court in response to the judge's questions at Thursday's hearing.
Weisselberg pleaded guilty to one count of Grand Larceny in the Second Degree; three counts of Criminal Tax Fraud in the Third Degree; one count of Scheme to Defraud in the First Degree; one count of Conspiracy in the Fourth Degree; one count of Criminal Tax Fraud in the Fourth Degree; four counts of Offering a False Instrument for Filing in the First Degree; and four counts of Falsifying Business Records in the First Degree.
Under the terms of the plea deal, if Weisselberg testifies "truthfully" at the upcoming Trump Organization trial "by providing truthful testimony as to the facts underlying his allocution and plea," he will serve five months in prison at New York's Riker's Island and five years' probation, according to the Manhattan DA's office. He must also pay nearly $2 million in restitution ahead of his sentencing.
"Should Weisselberg fail to abide by the conditions of his plea, the People will recommend state prison time," the DA's office said in a release.
“Today Allen Weisselberg admitted in Court that he used his position at the Trump Organization to bilk taxpayers and enrich himself,” said Manhattan District Attorney Alvin Bragg. “Instead of paying his fair share like everyone else, Weisselberg had the Trump Organization provide him with a rent-free apartment, expensive cars, private school tuition for his grandchildren and new furniture – all without paying required taxes."
"This plea agreement directly implicates the Trump Organization in a wide range of criminal activity and requires Weisselberg to provide invaluable testimony in the upcoming trial against the corporation," Bragg continued. "Furthermore, thanks to the incredibly hard work and dedication of the team prosecuting this case, Weisselberg will spend time behind bars. We look forward to proving our case in court against the Trump Organization.”
Weisselberg’s lawyer Nicholas Gravante Jr. said his client pleaded guilty “to put an end to this case and the years-long legal and personal nightmares it has caused for him and his family.”
“We are glad to have this behind him,” the lawyer added.
Weisselberg is the only person to face criminal charges so far in the Manhattan district attorney’s long-running investigation of the company’s business practices.
Seen as one of Trump’s most loyal business associates, Weisselberg was arrested in July 2021. His lawyers have argued the Democrat-led district attorney’s office was punishing him because he wouldn’t offer information that would damage Trump.
The district attorney has also been investigating whether Trump or his company lied to banks or the government about the value of its properties to obtain loans or reduce tax bills.
Then-District Attorney Cyrus Vance Jr., who started the investigation, last year directed his deputies to present evidence to a grand jury and seek an indictment of Trump, according to former prosecutor Mark Pomerantz, who previously led the probe.
But after Vance left office, his successor, Bragg, allowed the grand jury to disband without charges. Both prosecutors are Democrats. Bragg has said the investigation is continuing.
The Trump Organization is not involved in Weisselberg’s expected guilty plea Thursday and is scheduled to be tried in the alleged compensation scheme in October.
Trump has not been charged in the criminal probe. The Republican has decried the New York investigations as a “political witch hunt” and has said his company’s actions were standard practice in the real estate business and in no way a crime..