Allen Weisselberg and Trump Org - the indictment- Update # 1 #2# 3 includes unsealed INDICTMENT WHOA
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Allen Weisselberg and Trump Org - the indictment- Update # 1 #2# 3 includes unsealed INDICTMENT WHOA
I will update when the indictments are unsealed. I wanted you to know what NY Laws are likely in play in the indictment ETA 2:05PM today to unseal -Weisselberg expected to make his initial appearance
A clean (un-highlighted) copy of the indictment via this CNN link - as noted at the conclusion of this (very long article)
Highlighted and annotated Weisselberg and Trump Organization Indictment and most people won’t understand this - the statute of limitations clock has now been stopped. Meaning that prosecutors lodging an indictment stops the clock -as for what to look for next? I’m going with:
Jeff McConney
Matthew Calamari and his son, Matthew Calamari Jr.
As widely reported the criminal charges appear to stem from a scheme to pay (additional) compensation (bonuses and other monetary perks) to Weisselberg and possibly others "off the books" by the Trump Organization. The “off the books” means Weisselberg and others likely failed to disclose that income - thereby depriving the State of New York from collecting taxes - hence tax evasion
Taxes - not mob times - but taxes - see May 2021 article - see May 27, 2021 follow up article - where I discussed the special grand jury and then I specifically pointed to excepts from both Weisselberg and McConney’s respective depositions with the New York Attorney General’s Office and further explained that people tweeting “Weisselberg would flip” - have zero idea what they were talking about - I walked you through Weisselberg’s Depo and pointed out how many times he bent over backwards to protect Trump Sr, Ivanka, Trump Jr and the other Trump kid - what’s his name? (I know it’s Eric I’m being sardonic because I can)
And look I’ve actually never bought into the Trump Mob narrative - largely because what has taken down mobsters? It is taxes, plain and simple taxes. And while the newly unsealed indictment doesn’t talk about conservation easements —I am still comfortable in saying tax fraud and insurance fraud will be what takes Trump down.
The Board did not discuss how to invest the Foundation's assets, but rather simply left the decision to Mr. McConney and Allen Weisselberg, executive vice president and chief financial officer of the
Organization and the treasurer of the Foundation. Although in recent years the average monthly value of the Foundation's assets was over $1 million, the Foundation kept its funds in a
Indicting Trump Org - Banks should accelerate loans…
Trump’s last financial disclosure (as president) January 15, 2021 filed with OGE the link below will take you to his Jan 2021 OGE Filing - it’s 79 pages - because after all these are public documents - you just need to know where and what to look for. And I’m not one to ever withhold original documents from my readers/followers. 👇🏻Enjoy👇🏻
Loans maturing 2021 thru 2024 - cumulatively speaking in the next 12 to 36 months the Trump Organization’s “Crown Jewels”
Investors Savings Bank —>Trump Park Avenue LLC (mortgage)—>$5M to $25M—> matured in 2021 (after the 2020 extension see footnotes)
Ladder Capital Finance LLC —>Trump Tower Commercial LLC —> mortgage is over $50M + scheduled to mature in 2022
Deutsche Bank—>Trump Doral —> 1st loan of $50M+ scheduled to mature 2023. 2nd loan of $5M to $25M also scheduled to mature in 2023
Over the weekend I will do a far deeper dive into his loans and the financial tsunami he’s about to face. Because in reviewing his decades long business models - you’ll note that there is a natural 8 to 9 years of up/down business. Meaning every 8 to 9 years Trump’s recklessness to over extend his company eventually catches up to him.
The notion that Trump is some great business man is nonsense. Who the hell bankrupts a casino?
Donald Trump - that’s who. In Trump’s business career, he and his namesake company Trump Org have repeatedly robbed small mom & pop shops of payments. He has also engaged in decades long tax evasion and tax fraud and his house of financial cards will come crashing down.
So according to Trump’s spokesperson Jason Miller (own’s history is dubious) the years long investigation between the Manhattan District Attorney’s (DA) Office. and the New York State Attornery General’s office is somehow a “witch hunt” and it’s about “maybe free parking” —For someone who pride’s himself as a strong —very very strong mam. Trump sure sounds like a whiny -weak little b__tch. And Trump sure plays the victim and/or victim card, a lot.
I am not at all sorry - I can’t help but think July 1, 2021 best day of 2021, so far. And I say this respectfully — I’d hedge my bets thinking Weisselberg will flip on Trump — in my view you should also be looking at McConney - he’s the Trump Org Comptroller - again back in May I walked you through the deposition excepts of both Weisselberg and McConney - I also pointed you to exact excerpts where McConney invoked a whole lot of Trump Org names. And explained how Weisselberg bent over backwards to protect Donald Trump during his NY AG deposition
The Trump Organization Statement…
“A pawn in a scorched earth attempt to harm the former President. “ - good lord Donald Trump is such whiny little b_tch — always the victim — always never at fault - put your big boy pants on and face the music of your company’s decades long tax evasion, wire fraud, bank fraud and playing fast and loose with the taxes. No one forced you to give Weisselberg the tens of thousands of dollars in perks.
New York Consolidated Laws, Tax Law -
TAX § 1801. Tax fraud act
When the indictments are unsealed - here’s what you need to look for;
Dollar Amount - for Example if NY prosecutors say Weisselberg failed to report >$1M - the New York Penal Code has a maximum sentencing of 25 years.
If NY prosecutors are alleging that Weisselberg failed to pay taxes on <$10K of “off books” personal income —the penalties can range from a simple misdemeanor to felony —but it’s predicated on the actual dollar amount
A person commits criminal tax fraud in the fifth degree when he or she commits a tax fraud act. Criminal tax fraud in the fifth degree is a class A misdemeanor.
A person commits criminal tax fraud in the fourth degree… with the intent to evade any tax due under this chapter, or to defraud the state or any subdivision thereof, the person pays the state and/or a political subdivision of the state (whether by means of underpayment or receipt of refund or both), in a period of not more than one year in excess of three thousand dollars less than the tax liability that is due. Criminal tax fraud in the fourth degree is a class E felony.
A person commits criminal tax fraud in the third degree when he or she commits a tax fraud act or acts and, with the intent to evade any tax due under this chapter, or to defraud the state or any political subdivision of the state, the person pays the state and/or a political subdivision of the state (whether by means of underpayment or receipt of refund or both), in a period of not more than one year in excess of ten thousand dollars less than the tax liability that is due. Criminal tax fraud in the third degree is a class D felony.
New York TAX § 1805. Criminal tax fraud in the second degree
A person commits criminal tax fraud in the second degree when he or she commits a tax fraud act or acts and, with the intent to evade any tax due under this chapter, or to defraud the state or any subdivision of the state, the person pays the state and/or a political subdivision of the state (whether by means of underpayment or receipt of refund or both), in a period of not more than one year in excess of fifty thousand dollars less than the tax liability that is due. Criminal tax fraud in the second degree is a class C felony.
New York TAX § 1806. Criminal tax fraud in the first degree
…person commits criminal tax fraud in the first degree when he or she commits a tax fraud act or acts and, with the intent to evade any tax due under this chapter, or to defraud the state or any subdivision of the state, the person pays the state and/or a political subdivision of the state (whether by means of underpayment or receipt of refund or both), in a period of not more than one year in excess of one million dollars less than the tax liability that is due.Criminal tax fraud in the first degree is a class B felony.
But I’m betting the house on this being in the indictment👇🏻
New York Tax Law - TAX § 1808. Personal income and earnings taxes; repeated failure to file
a) Any person who, with intent to evade payment of any tax imposed under article twenty-two of this chapter or any related income or earnings tax statute, fails to file a return for three consecutive taxable years shall be guilty of a class E felony, provided that such person had an unpaid tax liability with respect to each of the three consecutive taxable years.
b) In any prosecution for a violation of subdivision (a) of this section, it shall be a defense that the defendant had no unpaid tax liability for any of the three consecutive taxable years.
c) As used in this subdivision, the term “return” shall mean a return required under section six hundred fifty-one of this chapter, section 11-1751 of the administrative code of the city of New York or section 92-85 or 92-105 of the codes and ordinances of the city of Yonkers. It shall not include any information return referred to in subsection (i) of section six hundred fifty-one of this chapter, or subdivision (i) of section 11-1751 of such code, or subdivision (g) of section 92-105 of such codes and ordinances, or section six hundred fifty-eight of this chapter or section 11-1758 of such code or section 92-111 of such codes and ordinances, or any employer's return required by section six hundred seventy-four of this chapter or section 11-1774 of such code.
Once the indictments are unsealed - I’ll update accordingly but for now I’d read the various New York Criminal Statutes as it relates to taxes…
More details via Eric Trump Daily Mail Interview
Weisselberg's use of a company car up until 2018
a one-bedroom apartment in New York
As Eric Trump stated in his “exclusive interview” with the Trump friendly Daily Mail
“Any taxpayer should be infuriated by this political witch hunt especially as young girls are getting shot in the middle of Times Square and as people are fleeing New York state in record numbers…These people are cruel and these actions will expose them for who they truly are.“
Oh My God Eric - listen to your Company’s attorneys - shut your mouth and lay low but doing an exclusive interview with a publication that’s friendly to you and your family - how very predictable and pedestrian of you. Seriously listen to your attorneys and OMERTÀ- Zip it - Shut your Pie Hole… JFC you and your family are any reputable firm’s worst nightmare as a client. Bejesus.
Update # 2 - 1:55PM EST
Weisselberg Arraignment set for 2:15PM
The Manhattan District Attorney's Office; (Weisselberg) arraignment of "significant interest" is scheduled for 2:15 p.m. ET in Manhattan Criminal Court. And copies of "any documents that were filed by our office during the appearance" will be released at the conclusion of the proceedings.
There will be NO press conference- and here’s why:
"the case relates to an active, ongoing investigation." Weisselberg in handcuffs - blessed be
Holy shittlestix - yes Weisselberg in handcuffs being escorted by New York Law Enforcement on his way to his 2:15PM arraignment (how dare my job get in the way of today’s Perp Walk) - belated hat tip to Nancy - she’s one of my best readers/followers and her second pair of eyes helps
holy crap now is the time where you should read the New York Tax Law(s) - this is bad because that means he’s been indicted on 1st or 2nd degree tax evasion…
I see that New York Attorney General is in the House…
this is profoundly noteworthy because yes Vance needed James and James needed Vance to bring Tax charges…
First Degree accuses the Trump Corporation,dba the Trump Organization, Trump Payrol Corp dba theTrump Organization, and Alen Weiselberg of the crime of
SCHEME TO DEFRAUD IN THE FIRST DEGREE in violation of [New York] Penal Law §190.65(1)(3),
Whoa the prosecution alleges from 2005 to JUNE 30, 2021 the “and other Trump Organization Executives”- I’m going with Rona & Jeff
,…largest individual beneficiaries of the defendants’ scheme was Allen Weisselberg. During the operation of the scheme, the defendants amanged for Weisselberg to receive indirect employee compensation from the Trump Organization in the approximate amount of $1.76 million.
During the period of the scheme, Weisselberg thereby evaded approximately $556,385 in federal taxes, approximately $106,568 in state taxes, and approximately $238,159 in New York City taxes,
…and he falsely claimed and receivedapproximately $94,902 in federal tax refunds and approximately $38,222 in state tax refunds, to which he was not entitled.
Remember that the $1.76M in actual income- that I believe the taxable income rate for NY ranged from 6.79% to 8% - of the $1.76M but you also have to aggregate that $1.76M figure into the above mentioned tax evasion. This is important to understand what level of penalty Weisselberg could face so it’s not the full $1.76M - it’s merely the threshold to get him and Trump Org to First Degree
Riverside Apartment Lease, Utilities and parking space
Read paragraph 7 closely —prosecutors are alleging that the Trump Organization improperly referenced as “rental expenses” (the subtext there might be the Trump Org may have unlawfully used the rental expenses as a tax deduction) and did not properly account for Riverside Apartment, Utilities and parking space
“….Trump Corporation to issue checks to pay for Weisselberg’s utility bills for the Riverside Boulevard apartment, including payments for electricity, telephone services, intemet, and cable television service. During this periodoftime, the Trump Corporation also paid for Weisselberg’s monthly garage expenses.”,
These payments were not booked in the Trump Corporation’s general ledger as employee compensation, but were instead labeled and deducted as “rent expense” in the general ledger….The indirect compensation was not included on Weisselberg’s W-2 forms or otherwise reported to federal, state, or local tax authorities, and no income taxes were withheld by the corporate defendants in connection with the indirect compensation.
Page 8 of the indictment has a very interesting fact-nugget:
“…defendants not only concealed, failed to report, and failed topay income taxes in connection with Weisselberg’s New York City apartment, but they also concealed his status as a New York City resident and enabled Weisselberg to avoid the payment of New York City income taxes. Beginning in May 2005, when the Trump Corporation rented the Riverside Boulevard apartment for Weisselberg’s useas a permanent place of abode, Weisselberg spent most ofhis days.”
…falsely claimed to his tax preparer and to the tax authorities that he was not a New York City resident. Weisselberg and others caused the corporate defendants not to report his compensation to New York City tax authorities and not to withhold New York City income taxes from Weisselberg’s compensation.‘Weissclberg began to pay New York City income taxes…
THERE IT IS -Donald J Trump Revocable Trust
Trump paid the tuition for 2 of Weisselberg’s family members - initially the payment was drawn from a personal account of Donald J Trump and subsequently drawn from Trump’s Revocable Trust. I’ll bet you Trump will argue the tuition was a “gift” 1
…failing to withhold New York City income taxes from Weisselberg’s compensation, the defendants evaded the payment of approximately $210,923 in New York City resident income taxes from the tax year 2005 through 2013…
2012 through 2017, and as part of the scheme to defraud, Trump Corporation personnel, including Weisselberg, arranged for tuition expenses for Weissclberg’s family members to be paid by personal checks drawn on the account of and signed by Donald J. Trump, and later drawn on the accountof the Donald J. Trump Revocable Trust dated April 7, 2014.
…was not included by Weisselberg on his personal tax returns, he did not pay taxes on approximately $359,058 in compensation he received during the tax years 2012 through 2017
Mr & Mrs matching Mercedes Leases
Oh come on - you’re telling us that the Trump Organization paid for TWO of Weisselberg’s personal vehicle leases…
2005 through 2017, and as part of the scheme to defraud, the Trump Corporation paid the annual lease expenses on two Mercedes Benz automobiles that were the personal cars of Weisselberg and his wife.
…automobile lease payments was not reported by the corporate defendants to the tax authorities, was not subjected to income tax withholding by the corporate defendants, and was not included by Weisselberg on his personal tax returns, he did not pay taxes on approximately $196,245 in compensation he received during the tax years 2005 through 2017.
Cash in a brown paper bag?
I’m kidding but if you read paragraph 11 - prosecutors allege that the Trump Organization paid Weisselberg “in cash” for holiday bonuses - seems kind of on the low end, 2011 thru 2017 a total of $29,400.00 in cash given to Weisselberg - but the Trump Organization had a spreadsheet - I’m dead- at least they were kind of organized
… Weisselberg caused the Trump Corporation to issue corporate checks made payable to a Trump Organization employee who cashed the checks and received cash. The cash was given to Weisselberg for his personal use. The Trump Corporation booked this cash as “Holiday Entertainment”…
These requests included such items as new beds, flat-screen televisions, the installation of carpeting, and fumiture for Weisselberg’s home in Florida. When Weisselberg made such requests, the Trump Corporation issued checks to pay the expenses…
Wait so from 2005 to 2012 Weisselberg rented a shithole apartment - I mean what else would you call it for a monthly rent of $1,000? I mean Donald Trump sure seems like a cheapskate charlatan and Weisselberg was happy to drink off the teet-of-trump <— Yes I know I’m going to burn in hell for that comment
He occupied that apartment from 2005 through 2012, paying approximately $1,000 per month in rent. In 2018, Weisselberg’s family member was allowed to occupy a different Trump-owned apartment on East 61° Street in Manhattan, with no reported rent at all.
OH SHITTLESTIX- paragraph 14 - read it very carefully because at first glance I almost missed it - “two other employees”
…Weisselberg and his family member, two other employees received substantial amountsofcompensation in the form of lodging in New York City and the payment of automobile leases
HOLY GOD… YES so much YES:
the year end bonuses and secret raises were funneled through a bunch of Trump Org companies - HOLY GOD - YES
The salary and, in most instances, a portion of the executives end-of-year bonuses were paid to the executives by Trump Payroll Corp. and reported to federal, state, and local tax authorities as employee compensation on W-2 forms.
However, for Weisselberg and other executives, a substantial portion of their end-of-year bonuses was paid in the form of checks drawn on other Trump Organization entities
Wollman Rink Operations LLC
Trump Intemational GolfClub LLC
the Mar-a-Lago Club
Trump Productions LLC
VH Property Corp.
Trump Las Vegas Development LLC,
Tramp CPS LLC, and other ent
Weisselberg & contributions Keogh plan -This is bonkers …
Weisselberg was able to make annual contributions to aKeogh plan, which is a tax-deferred pensionplan that s available to self-employed individuals for retirement purposes. Weisselberg was not a self-employed individual….he purportedly received substantial non-employee compensation from the entities such as the Mar-a-Lago Club and Wollman Rink Operations LLC,
Weisselberg concealed appx $1,760,630.00
I am telling you to read this indictment closely - prosecutors have masterfully interwoven both Trump Organization, Donald Trump and Allen Weisselberg
Summary of the Charges:
Allen Weisselberg charged with 15 year tax scheme
15 Felony Counts - 1st Degree -scheme to defraud, Tax Evasion, Grand Larceny, Falsifying Business and Personal Tax Records.
But Count Fifteen is the most damning - Trump et al DESTROYED EVIDENCE
defendants the Trump Corporation, d/b/a the Trump Organization, and Allen Weisselberg in the County of New York and elsewhere, on or about September 2016, with the intent to defraud, altered, erased, obliterated, deleted, removed and destroyed a true entry in the business records of an enterprise, to wit, DonaldJ. Trump's Detail General Ledger, and defendants’ intent to defraud included an intent to commit another crime and to aid and conceal the commission thereof…
Highlighted and annotated Weisselberg and Trump Organization Indictment and most people won’t understand this - the statute of limitations clock has now been stopped. Meaning that prosecutors lodging an indictment stops the clock -as for what to look for next? I’m going with:
Jeff McConney
Matthew Calamari and his son, Matthew Calamari Jr.
because it was made based on facts in the public domain - specifically the NY AG’s deposition excerpts
And with these updates - you should be completely caught up and now have to documents and various statutes - because I’m needed back at my actual J-O-B since the red team edits didn’t take so now I’m under the 6PM clock- see ya later-ish
Also remember all the shit that was slung at me for saying - hmmm so Trump’s foundation “donated” $50K to Baron’s private school - yup super fun times June 2018
This is pretty amazing. What hits hardest, is the feeling that these 15 counts for Weisselberg are just the precursor. They would not reveal everything with this indictment but have more than a solid case. This seems like the beginning of dismantling the Trump properties & assets. For so long, Trump has improperly gamed the system. He won’t be able to get out of this. There aren’t any loans coming & whatever he owes as outstanding loan payments or even taxes, will bite him. He’s run out of options. He will stall with trying to slow down litigation as he always does but they seem like in this initial indictment, a solid case with plenty of receipts. My guess is Jr will be first family member indicted. Thank you Filey. Thank you for allowing all of us to marvel at your work and uncompromising adherence to facts. Feels like a great day.
Very well done - the magic number was achieved >$1M of unreported income --- side letters are bad, bad, bad - can I make that point any stronger - bad!
This is pretty amazing. What hits hardest, is the feeling that these 15 counts for Weisselberg are just the precursor. They would not reveal everything with this indictment but have more than a solid case. This seems like the beginning of dismantling the Trump properties & assets. For so long, Trump has improperly gamed the system. He won’t be able to get out of this. There aren’t any loans coming & whatever he owes as outstanding loan payments or even taxes, will bite him. He’s run out of options. He will stall with trying to slow down litigation as he always does but they seem like in this initial indictment, a solid case with plenty of receipts. My guess is Jr will be first family member indicted. Thank you Filey. Thank you for allowing all of us to marvel at your work and uncompromising adherence to facts. Feels like a great day.
Very well done - the magic number was achieved >$1M of unreported income --- side letters are bad, bad, bad - can I make that point any stronger - bad!