Trump Organization fined $1.6M in tax fraud case

The Trump Organization was ordered to pay $1.6 million in fines on Friday, following its conviction last month for criminal tax fraud, according to The New York Times.

It was the maximum penalty former President Trump’s sprawling business organization could face for what prosecutors have described as a long-running scheme to evade taxes by providing perks to company executives.

Trump himself was not charged in the tax fraud case, although the Manhattan district attorney’s office argued throughout the trial that the former president and his family were “explicitly sanctioning tax fraud.”

Allen Weisselberg, the longtime chief financial officer of the Trump Organization, was sentenced to five months in jail on Tuesday for his role in the tax fraud scheme. Weisselberg served as key witness in the monthlong trial after accepting a plea deal in August.

Lawyers for the Trump Organization reportedly argued for a lesser penalty on Friday, accusing Weisselberg of being the lone actor in the scheme, as they did throughout the trial. 

However, Judge Juan Merchan sided with the prosecutors, who argued for the full fine despite acknowledging that it “may have limited impact on a multibillion corporation,” according to the Times.

Manhattan District Attorney Alvin Bragg said in a statement that Friday’s sentencing represents a “significant chapter” in his ongoing investigation into Trump and his businesses.

“While corporations can’t serve jail time, this consequential conviction and sentencing serves as a reminder to corporations and executives that you cannot defraud tax authorities and get away with it,” Bragg added.

Trump and three of his adult children are currently facing a separate civil lawsuit from New York Attorney General Letitia James (D), who has accused the family of manipulating property values to secure investments, as well as tax and loan benefits. The case is set to head to trial in October.

Updated at 10:42 a.m.