Ex-CFO at Trump Organization Testifies Against Firm He Helped Build - The New York Times

• Nov. 15, 2022Updated 10:03 p.m. ET

After decades of loyal work to Donald J. Trump, Allen H. Weisselberg connected Tuesday testified successful the transgression tax-fraud proceedings of the erstwhile president’s household business, kicking the proceedings into precocious cogwheel arsenic helium assumed an uncomfortable role: prima witnesser for the prosecution.

Mr. Weisselberg, the company’s longtime main fiscal officer, pleaded blameworthy this summertime to the aforesaid crimes for which the institution is present connected proceedings successful a Manhattan court. As portion of his deal, which is expected to spare him a lengthy situation sentence, Mr. Weisselberg agreed to springiness grounds against the company, adjacent arsenic helium remains connected its payroll and has refused to implicate Mr. Trump.

Mr. Weisselberg, who took the basal connected the aforesaid time that Mr. Trump announced his 3rd tally for president, provided important facts to bolster the Manhattan territory attorney’s case, which centers connected lucrative off-the-books perks that the institution paid to Mr. Weisselberg and different executives. The benefits — including flat rentals, leased cars and other currency astatine Christmastime — afforded them a comfy beingness successful an costly city.

In nether 2 hours of testimony, Mr. Weisselberg admitted that helium had received specified perks, and that helium knew helium owed taxes connected them that helium had not paid. And erstwhile the pb prosecutor, Susan Hoffinger, asked him wherefore helium did not simply inquire for a raise, helium responded that a rise would person required the Trump Organization to wage much wealth to him and to the taxation authorities. That roped the institution into a strategy that its lawyers person tried to pin wholly connected Mr. Weisselberg.

“In bid to get a rise to beryllium capable to wage for those expenses, the Trump Corporation would person had to springiness maine treble the magnitude of those expenses,” Mr. Weisselberg explained to the courtroom, referring to the Trump Organization entity that employed him.

When his grounds resumes connected Thursday, Mr. Weisselberg is expected to admit to conspiring with the Trump Organization to dole retired the off-the-books perks to himself and different elder executives. And helium whitethorn admit that the institution failed to withhold income taxes connected those perks.

Yet Mr. Weisselberg whitethorn not springiness prosecutors everything they want. To beryllium their case, they indispensable amusement that Mr. Weisselberg was acting “in behalf of” Mr. Trump’s company, not conscionable to payment himself, and it is unclear whether helium volition assistance them found that. He has besides refused to implicate Mr. Trump, who is not accused of taking portion successful the scheme, but is the absorption of a broader probe by Manhattan prosecutors into his concern practices.

If the institution is convicted, Mr. Weisselberg’s plea woody volition undoubtedly person played a cardinal role. In exchange, helium is apt to person a overmuch reduced punishment: a five-month jailhouse condemnation that, with bully behavior, whitethorn necessitate him to walk lone 100 days down bars.

The antithetic bargain — his ain lawyer called the woody “unique” — thrusts Mr. Weisselberg into an awkward mediate crushed betwixt the prosecutors helium chopped a woody with and the institution that inactive employs him.

While connected the stand, Mr. Weisselberg illustrated his continuing ties with the company, testifying that helium had continued acting arsenic a elder advisor to the Trump Organization arsenic precocious arsenic past month, and that his $640,000 wage had not been reduced since helium went connected paid leave. Asked whether his $500,000 bonus had been reduced, Mr. Weisselberg simply said: “I don’t cognize yet.”

An accountant who got his commencement with the Trump household astir a fractional period agone nether Fred Trump, the erstwhile president’s father, Mr. Weisselberg described to jurors however helium climbed done the ranks. Before Mr. Trump became president, Mr. Weisselberg was 1 of his trusted lieutenants, talking to him regular astir concern transactions, shot and their plans for the future. “It ran a gamut,” Mr. Weisselberg said.

Because helium did not motion a accepted practice statement with prosecutors — and volition attest lone astir the crimes to which helium pleaded blameworthy — Mr. Weisselberg was nether nary work to conscionable with them earlier his testimony. Ultimately, helium agreed to conscionable with some defence lawyers and prosecutors earlier the trial.

“Mr. Weisselberg is giving some sides the accidental to ascertain successful beforehand what truthful grounds they whitethorn elicit from him,” said his lawyer, Nicholas A. Gravante Jr.

Mr. Trump’s company, successful its ain connection astatine the clip of the blameworthy plea, called Mr. Weisselberg “a good and honorable antheral who, for the past 4 years, has been harassed, persecuted and threatened by instrumentality enforcement, peculiarly the Manhattan territory attorney, successful their never-ending, politically motivated quest to get President Trump.”

But successful opening arguments, the Trump Organization’s attorneys pointed the digit astatine Mr. Weisselberg. “It started with Allen Weisselberg and it ended with Allen Weisselberg,” Susan R. Necheles, 1 of the company’s lawyers, said successful her opening statement.

On cross-examination astatine trial, the Trump Organization’s lawyers mightiness suggest that Mr. Weisselberg agreed to attest lone nether duress, noting that helium could person faced years successful situation if not for the plea deal.

Under the arrangement, Mr. Weisselberg indispensable wage astir $2 cardinal successful taxes, penalties and involvement aft accepting the off-the-books perks, including leased Mercedes-Benzes, an flat connected the Upper West Side of Manhattan and backstage schoolhouse tuition for his grandchildren.

Still, the woody could person been sweeter. During plea negotiations this summer, the justice overseeing the case, Juan Merchan, indicated that if the Trump Organization agreed to plead blameworthy arsenic well, helium would enforce an adjacent shorter condemnation connected Mr. Weisselberg, The New York Times reported astatine the time.

The justice warned that Mr. Weisselberg’s lone accidental for avoiding jailhouse altogether was cooperating with the broader probe into Mr. Trump’s concern practices. That probe is focused successful portion connected whether Mr. Trump fraudulently inflated the worth of his hotels, play clubs and different assets to unafraid favorable presumption from lenders and security companies.

Even now, Mr. Weisselberg’s condemnation is not guaranteed. If Justice Merchan concludes that helium lied connected the witnesser stand, Mr. Weisselberg could look up to 15 years successful prison.

Mr. Weisselberg was the 3rd witnesser of the day, pursuing Jeffrey S. McConney, the company’s controller, who until Tuesday had been the lone witnesser from whom jurors had heard. Deborah Tarasoff, who worked successful the company’s accounting section and reported to Mr. McConney, besides testified, confessing that she was tense connected the stand.

Prosecutors successfully asked to person Mr. McConney classified arsenic a hostile witness, allowing them much state successful the mode they airs questions, and helium revealed the Trump Organization’s methods for dodging taxes arsenic it rewarded its executives. At 1 point, a prosecutor, Joshua Steinglass, each but mocked Mr. McConney for being an accountant who said helium was unaware that $100,000 worthy of rent oregon $60,000 worthy of backstage schoolhouse tuition should person been reported to the authorities arsenic compensation.

Ms. Tarasoff’s grounds was altogether different. Although she, too, admitted cognition of definite perks that Mr. Weisselberg received, she was little evasive than Mr. McConney and was treated acold much mildly by Mr. Steinglass. She besides helped a defence lawyer, Michael van der Veen overgarment a analyzable but sympathetic representation of Mr. Weisselberg.

At 1 point, Mr. van der Veen asked Ms. Tarasoff whether she would bash thing if Mr. Weisselberg told her to, adjacent if it was wrong.

She paused for a moment.

“I conjecture I would,” she said. “Because he’s the boss.”

Lola Fadulu contributed reporting.