Trump Organization Criminal Trial Begins In New York

The criminal trial for the Trump Organization began Monday in New York, as the former president’s family business faces accusations that it defrauded the city, state and federal tax authorities for 15 years by providing off-the-books financial perks to its executives.

Opening arguments started in the high-profile case, with acting New York Supreme Court Justice Juan Merchan presiding over the trial. Prosecutors with the Manhattan district attorney’s office told jurors that two of Donald Trump’s companies — the Trump Corp. and Trump Payroll Corp. — participated in a scheme to illegally compensate executives with lavish perks as a way to help them evade payroll taxes.

“This case is about greed and cheating — cheating on taxes,” said Susan Hoffinger, the head of the district attorney’s investigations division.

Although it is his company that’s currently on trial, Trump himself is not charged with any wrongdoing — though prosecutors have not yet decided whether he could face criminal charges in the future. Trump was not present in the courtroom, nor were his three oldest children who have all held key positions at the company.

Prosecutor Susan Hoffinger leaves the courtroom for a lunch recess during a trial at the New York Supreme Court Monday in New York City. (Photo: Michael M. Santiago via Getty Images)

Manhattan District Attorney Alvin Bragg began investigating Trump and his company’s financial practices over three years ago, after going to the U.S. Supreme Court twice to gain access to his tax records. The Trump Organization is the holding company for the former president’s real estate buildings, golf courses and other assets. 

Last year, the company and its former chief financial officer, Allen Weisselberg, were indicted in what prosecutors called a “sweeping and audacious” tax fraud scheme, in which Weisselberg was said to have collected over $1.7 million in untaxed income through off-the-books perks.

Weisselberg, 75, pleaded guilty to 15 felony charges in August and pinned the blame for the scheme on himself and other top executives, such as senior vice president and comptroller Jeffrey McConney, who is expected to testify Monday. As part of his plea deal that requires him to serve up to five months in Rikers Island jail, Weisselberg agreed to testify against the company, making him the prosecutors’ star witness in the trial.

The former CFO, who has been at the company for nearly five decades, has intimate knowledge of the Trump Organization’s financial matters. But Weisselberg refused to testify against Trump himself, and so is unlikely to implicate the former president or any of the Trump family members when he takes the stand next week. The witness was warned that he could face 15 years in prison should he be untruthful in his testimony.

In opening arguments, Hoffinger brought up Weisselberg’s perks that he personally received while serving as the company’s CFO, pointing out that the extra income was “tax free.” She said evidence will show that Weisselberg evaded more than $900,000 in taxes because of those perks, some of which included rent for an apartment in the Upper West Side, payments for Mercedes-Benz leases, and school tuition for his grandchildren.

Trump Organization Attorneys Alan Futerfas (left) and Michael van der Veen speak as they arrive for trial at the New York Supreme Court on Monday. (Photo: Michael M. Santiago via Getty Images)

“We all know that corporations aren’t people — they can’t think or act on their own,” Hoffinger said before explaining that companies act through their employees, particularly the executives with the authority to direct the company’s overall conduct. The law requires that prosecutors prove Weisselberg’s actions were taken “in behalf of” the company.

The prosecutor reportedly mentioned Trump’s name almost a dozen times in her opening statement, tying the former president to the scheme by arguing that he personally paid for Weisselberg’s grandchildren’s tuition. She also said that Trump’s companies “finally had to clean up” their fraudulent tax practices when its owner was elected president in 2016.

For the Trump company to beat these charges, it will likely have to prove that Weisselberg is lying in his testimony. Defense attorney Susan Necheles argued to jurors that Weisselberg’s actions were his personal choices and not taken on behalf of the company. Noting that she will from now on refer to Trump as “President Trump,” Necheles said the former president was unaware his CFO was cheating on his taxes.

“This case is about Mr. Weisselberg’s and those other employees’ personal tax returns,” Necheles told jurors, later adding that they “must not consider this case to be a referendum on President Trump or his policies.”

The jury also heard from Michael van der Veen, who is representing the Trump Payroll Corp. and served on the second Trump impeachment defense team. Van der Veen attempted to explain the law by saying prosecutors must prove Weisselberg’s actions were taken on behalf of the company, but Justice Merchan repeatedly told him it is the judge’s job to explain the law.

“Greed made him cheat on his taxes,” van der Veen said. “Weisselberg did it for Weisselberg.”

This article originally appeared on HuffPost and has been updated.