JAKARTA - The company owned by former President Donald Trump and his chief financial officer Allen Weisselberg has pleaded not guilty to what New York prosecutors have called tax fraud, arising from an investigation into his business.
The charges against the Trump Organization and its chief financial officer are the first after a nearly three-year investigation by Manhattan District Attorney Cyrus Vance who joined New York Attorney General Letitia James in May.
The consequences of this can have an impact on the Trump Organization's relationship with banks and business partners, affecting the political future of Trump who plans to run for re-election in the upcoming 2024 United States (US) Presidential Election.
Although not yet indicted, Republican Trump has reiterated his claim that the investigation was a political "witch hunt," referring to Vance and James, who are Democrats.
In relation to the tax fraud allegations, prosecutors have accused the Trump Organization and Weisselberg of defrauding tax authorities since 2005 by giving off-booking benefits to company executives.
Weisselberg was charged with concealing $1.76 million in earnings, including rent for a Manhattan apartment, rent payments for two Mercedes-Benz vehicles and tuition for family members, with Trump signing a check for the tuition himself.
Prosecutors said this allowed Weisselberg, who has worked for Donald Trump for about 48 years, to evade about $900,000 in taxes and collect $133,000 in refunds he did not deserve.
"Frankly, this is a broad and bold illegal payment scheme," Assistant District Attorney Carey Dunne said of the defendants' indictment in Manhattan Criminal Court.
"This is not standard practice in the business community, nor is it the conduct of a delinquent or isolated employee."
The indictments filed include fraudulent schemes, tax fraud and falsification of business records. Weisselberg was also charged with grand theft, which carries a maximum prison sentence of 15 years. Meanwhile, the Trump Organization could face fines and other penalties if found guilty.
"If the allegations in the indictment are true, this is very rapid tax evasion. It's very hard to believe that this could have happened without the knowledge of the people above," said Daniel Hemel, professor of tax law at the University of Chicago.
Thursday's charges could increase pressure on Weisselberg to cooperate with prosecutors, which could be crucial to any future case against former President Donald Trump.
In a statement, Trump said, "The hunt for a political witch by the Radical Left Democrats, with New York now taking over, continues. It is dividing our country like never before!"
Meanwhile, Vance and James also attended Thursday's indictment. "This investigation will continue, and we will follow the facts and the law wherever they lead," James, who has conducted a related civil investigation, said in a statement.
"He will fight these charges in court," Weisselberg's attorneys Mary Mulligan and Bryan Skarlatos said in a joint statement before the charges were announced.
Separately, Alan Futerfas, a lawyer for the Trump Organization, told reporters he was very optimistic the allegations would not cost their business significantly.
"If the name of this company was something else, I don't think these charges would be brought," he said.
In a separate statement, the Trump Organization accused Vance of using Weisselberg as a pawn in a scorched earth attempt to attack Donald Trump.
"This is not justice, this is politics," the company said.
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