Trump's company slams former CFO Weisselberg's 'greed' at trial - Reuters

NEW YORK, Oct 31 (Reuters) - Former President Donald Trump's existent property institution cheated taxation authorities for 15 years, a authoritative said connected Monday successful her opening connection successful the Trump Organization's transgression taxation fraud trial, portion defence lawyers said the company's longtime main fiscal serviceman was lone acting connected his ain behalf.

The institution paid definite executives - including CFO Allen Weisselberg - successful perks specified arsenic rent and car leases without reporting those benefits to taxation authorities, and falsely reported bonuses arsenic non-employee compensation, said Susan Hoffinger, a authoritative with the Manhattan territory attorney's office.

The lawsuit is among the mounting ineligible troubles facing the 76-year-old Trump arsenic helium considers different bid for the presidency aft losing successful 2020.

Weisselberg, who has worked for Trump for astir fractional a century, successful August pleaded blameworthy and agreed to attest arsenic a prosecution witnesser astatine proceedings arsenic portion of a plea agreement for him to person a condemnation of 5 months successful jail.

Lawyers for the 2 Trump Organization units argued Weisselberg cheated connected taxes to payment himself, not the company. Both the Trump Corporation and the Trump Payroll Corporation person pleaded not guilty. Trump has not been charged successful the case.

"Weisselberg did it for Weisselberg," Michael Van Der Veen, a lawyer for the Trump Payroll Corporation, said successful his opening statement. "Greed made him cheat connected his taxes, fell his deeds from his employer, and betray the spot built implicit astir 50 years."

Hoffinger said Weisselberg was "a premier beneficiary" of the scheme. But she said helium acted successful his authoritative capableness arsenic a Trump Organization executive, and that the institution besides benefited by keeping apical executives blessed and redeeming connected immoderate taxes.

"Everybody wins here," Hoffinger said. "Of course, everybody but the taxation authorities. The occupation with doing it this mode is that it's not legal."

Van Der Veen besides sought to displacement blasted to accounting steadfast Mazars, which handled the company's and Weisselberg's taxation returns.

Mazars did not instantly respond to requests for comment. In February, the steadfast dropped the Trump Organization arsenic a lawsuit and said fiscal statements it prepared for the institution from 2011 done 2020 should nary longer beryllium relied on.

'CLEAN UP'

If convicted, the Trump Organization - which operates hotels, play courses and different existent property astir the satellite - could look up to $1.6 cardinal successful fines. It could besides further complicate the existent property firm's quality to bash business.

The proceedings is expected to past implicit a month. A unanimous verdict is required for condemnation connected each number of taxation fraud, scheming to defraud, and falsifying concern records.

Weisselberg admitted successful his blameworthy plea to avoiding taxes connected $1.76 cardinal successful idiosyncratic income himself done the scheme. He volition beryllium required to wage astir $2 cardinal successful unpaid taxes, penalties and interest, Hoffinger said.

Hoffinger said Trump personally paid for the private-school tuition of Weisselberg's grandchildren, adding that the assemblage would spot checks signed by Trump himself arsenic evidence.

She said that erstwhile Trump was elected president successful precocious 2016, Weisselberg and the institution "had to cleanable up these fraudulent taxation practices" owed to concerns astir further scrutiny. The companies stopped paying for its employees' unreported idiosyncratic expenses, and Weisselberg began paying his grandchildren's tuition himself, Hoffinger said.

Susan Necheles, a lawyer for the Trump Corporation, said it was Weisselberg - not the institution - who wanted to cleanable things up.

"Donald Trump didn't cognize that Allen Weisselberg was cheating connected Allen Weisselberg's idiosyncratic taxation returns," Necheles said.

Weisselberg stepped down arsenic CFO erstwhile helium was indicted but remained connected the payroll arsenic a elder adviser. After his blameworthy plea, helium continued to beryllium paid but was enactment connected leave.

The time helium pleaded guilty, the Trump Organization called Weisselberg a "fine and honorable man" who had been harassed by instrumentality enforcement successful a "politically motivated quest" to get Trump.

But successful a pretrial proceeding this month, Necheles accused Weisselberg of lying.

Justice Juan Merchan, the justice overseeing the case, has rejected the statement that the Trump Organization was targeted for selective prosecution.

Two apical prosecutors connected the lawsuit resigned successful February, with 1 saying felony charges against Trump, a Republican, were warranted but that Manhattan District Attorney Alvin Bragg indicated doubts. Bragg, a Democrat, has said the probe is ongoing.

The lawsuit is abstracted from a $250 cardinal civilian suit filed by New York's lawyer wide against Trump, 3 of his big children and his institution successful September, accusing them of lying to banks and insurers by overvaluing his existent property assets and Trump's nett worth.

Trump besides faces a national transgression probe into the removal of government documents from the White House erstwhile helium near bureau past year.

Reporting by Karen Freifeld and Luc Cohen successful New York Editing by Noeleen Walder, Alistair Bell and Matthew Lewis

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