Trump Organization Fined $1.6 Million for Tax Fraud

Donald Trump's family business has been fined the maximum $1.6 million for carrying out a 15-year scheme to defraud tax authorities.

New York Judge Juan Manuel Merchan handed down the fine after The Trump Organization was found guilty of 17 counts of tax fraud and other financial crimes following a trial in December.

Neither the former president nor his family were charged in connection to the investigation into his real estate business, and weren't present during the court proceedings on Friday.

Instead, it was two Trump Organization entities—the Trump Corporation and the Trump Payroll Corp—which were guilty of having avoided paying taxes by compensating executives through "off-the-books" benefits such as apartments and luxury cars.

As it was a company that was convicted of the offenses, the maximum penalty it could receive was a $1.6 million fine.

While the relatively small fine won't overtly affect The Trump Organization, a multimillion dollar company with a portfolio of golf courses, hotels, and properties across the world, it may damage the former president's reputation as a savvy businessman in a year in which he is expected to start ramping up his 2024 presidential campaign.

The fine was handed down three days after Allen Weisselberg, the Trump Organization's longtime chief financial officer, was sentenced to five months in jail for his part in the scheme to provide executives with bonuses and perks that saved the company money.

Allen Weisselberg also pleaded guilty to evading taxes on more than $1.7 million of untaxed benefits, including school tuition for his grandchildren and rent for a Manhattan apartment.

Despite testifying in The Trump Organization trial, Weisselberg didn't implicate the former president and Trump denied ever having knowledge of his executives' offending.

While taking the stand during the trial in November, Weisselberg said: It was my own personal greed that led to this."

In a statement after his company was found guilty of the 17 counts, Trump said: "This case was about Allen Weisselberg committing tax fraud on his personal tax returns, etc., with he and every witness repeatedly testifying that President Trump and the Trump Family knew nothing about his actions, which he admits were done solely for his own benefit, and with no benefit to the two companies."

Trump also repeated his frequent criticism that the investigation into his family business was a "witch hunt."

Elsewhere, New York Attorney General Letitia James' office is looking into claims Trump and his family business inflated or undervalued the worth of a number of assets to obtain financial benefits.

In September, James announced she is suing Trump and three of his children—Donald Jr, Ivanka, and Eric—and two senior executives at the Trump Organization for $250 million, claiming the former president falsely inflated his net worth by billions of dollars to "unjustly enrich himself and cheat the system."

The Trump Organization has been contacted for comment.