Trump Organization Criminal Tax Fraud: Felony Convictions for 15-Year Off-the-Books Compensation Scheme
Tier 1Resolved2005-01-01 to 2023-01-13
Factual Summary
On December 6, 2022, a Manhattan jury found The Trump Corporation and The Trump Payroll Corp. guilty on all 17 felony counts for their role in a 15-year scheme to defraud federal, New York State, and New York City tax authorities. The scheme ran from approximately 2005 to 2018 and involved structuring executive compensation to avoid tax reporting.
The Trump Organization's longtime Chief Financial Officer, Allen Weisselberg, personally received $1.76 million in unreported income, including a rent-free luxury Manhattan apartment, multiple Mercedes-Benz vehicles for himself and his wife, private school tuition for his grandchildren, and unreported cash. The companies falsified business records to conceal these payments. Other employees received similar unreported benefits.
Weisselberg pleaded guilty to all 15 felony counts on August 18, 2022, including grand larceny in the second degree, scheme to defraud in the first degree, criminal tax fraud, and falsifying business records. He was sentenced on January 10, 2023 to five months in jail, five years probation, and ordered to pay over $2 million in back taxes, interest, and penalties. He served approximately 100 days before early release.
The Trump companies were sentenced on January 13, 2023 to the maximum fines permitted under law: $810,000 for The Trump Corporation and $800,000 for The Trump Payroll Corp., totaling $1.61 million. Donald Trump was not personally charged in this case.
In a related matter, Weisselberg later pleaded guilty to perjury charges in March 2024 for lying under oath during the separate New York civil fraud trial and was sentenced to a second five-month jail term.
Primary Sources
1. Manhattan DA Press Release, "D.A. Bragg: Allen Weisselberg Sentenced to 5 Months in Jail," January 10, 2023: https://manhattanda.org/d-a-bragg-allen-weisselberg-sentenced-to-5-months-in-jail/
2. Manhattan DA Press Release, "D.A. Bragg: Trump Corporation, Trump Payroll Corp. Sentenced to Pay Maximum Fines Under Law," January 13, 2023: https://manhattanda.org/d-a-bragg-trump-corporation-trump-payroll-corp-sentenced-to-pay-maximum-fines-under-law-following-felony-trial-conviction/
3. NY Attorney General Statement on Guilty Verdict, December 6, 2022: https://ag.ny.gov/press-release/2022/statement-attorney-general-james-guilty-verdict-trump-organization
4. Indictment, People v. The Trump Corporation et al., Index No. 04544-2021 (N.Y. Sup. Ct. 2021), available via NYSCEF
Corroborating Sources
1. CNN: "Trump Organization found guilty on all counts of criminal tax fraud," December 6, 2022
2. NPR: "Allen Weisselberg sentenced to 5 months for his role in Trump Organization tax fraud," January 10, 2023
3. NPR: "Allen Weisselberg pleads guilty to tax fraud," August 18, 2022
Counterarguments and Context
The Trump Organization's defense centered on the claim that Weisselberg operated the scheme for his own personal enrichment without the knowledge of Trump or other senior leadership. Defense attorneys argued that Weisselberg "betrayed" the company and that the fraud benefited him personally rather than the business. Trump publicly and repeatedly characterized the prosecution as a "witch hunt" driven by political animus from the Democratic-aligned Manhattan DA's office. The jury rejected the corporate defense arguments and convicted both entities on all counts, though no individual Trump family members were charged.
Author's Note
This entry covers the criminal tax fraud prosecution only. The separate New York civil fraud case brought by the Attorney General is documented under FRAUD-001.