Donald Trump’s real estate company has been indicted in a 15-year scheme to defraud tax officials, adding to the challenges facing the former US president as he plans to re-elect office in 2024.
The Trump Organization — which operates hotels, golf courses, and other properties around the world — faces fines in Tuesday’s ruling, with the exact amount determined by the judge overseeing the case in New York State Court later.
The company sued, and Trump was not charged in the case.
The judge set a sentencing date of January 13.
While the fines are not expected to be for the Trump Organization’s largest companies, a jury verdict could disrupt its ability to do business by damaging creditors and partners.
Al Jazeera’s Mike Hanna, who is based in Washington, DC, said the decision “is consistent with what the agency does with banks, with other companies. This kind of decision will disrupt the agency’s operations”.
He added that although Mr Trump has not been charged in the case, the decision will “deeply affect the former president”, who has faced many challenges since leaving the White House.
“This is another sign of increasing legal pressure,” Hanna said.
The Trump Organization’s lawsuit focused on allegations that the company paid expenses such as free rent and car leases to senior executives, including former chief financial officer Allen Weisselberg, without reporting the expenses, and paid them bonuses as if they were independent contractors.
“The smorgasbord of benefits was designed to keep its executives happy and loyal,” prosecutor Joshua Steinglass told jurors in closing arguments Friday.
The Trump Organization is separately facing a fraud lawsuit brought by New York State Attorney General Letitia James.
Mr Trump is being investigated by the US Justice Department over his use of sensitive government documents after he leaves office in January 2021.
Separately, the panel is investigating Trump’s efforts to derail the 2020 election, which he lost to Democrat Joe Biden.
Weisselberg, 75, testified as a state witness as part of a plea deal with prosecutors that could see him serve up to five months in prison.
The Trump Organization said Weisselberg carried out the attack for personal gain. He is on paid leave from the company and testified that he received more than $1m in salary and bonuses this year.
“The question is not whether the company saved money,” Susan Necheles, the defense attorney, said in closing Thursday. “[Weisselberg’s] his goal was to benefit himself, not the company.”
Trump wrote on his Truth Social platform on November 19 that his family did not “get any financial benefit from the actions of the authorities”.
Republican Trump, who on November 15 announced his third presidential campaign, has called the investigation a “witch hunt”. Manhattan District Attorney Alvin Bragg and his former accuser, Cyrus Vance, are Democrats.
Weisselberg, who pleaded guilty in August to hiding $1.76m from tax authorities, testified that Mr Trump signed Christmas bonus checks and paid thousands of dollars in tuition fees to Weisselberg’s grandchildren.
He also said that Trump’s two sons – who worked for the company in 2017 after Trump became president – promoted him after learning about his tax evasion plan.
“The whole story that Donald Trump is blissfully ignorant is not true,” Steinglass said.
The Trump Organization also wanted to say that Donald Bender, an external auditor, would have caught and blown the whistle on Weisselberg’s fraud.
The company called Mr. Bender as its main witness, but his testimony appeared to be a bit off when he said he believed the information Weisselberg gave him was accurate and that he had no responsibility to investigate further.
