13 January 2023 , 18:18
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Donald Trump’s company has been fined $1.6 million (£1.3 million) as punishment for a scheme in which the former president’s top executives dodged personal income taxes on lavish job perks.
The punishment was the only penalty a judge could impose on The Trump Organization for its conviction last month for 17 tax crimes including conspiracy and falsifying business records.
The amount imposed by Judge Juan Manuel Merchan today was the maximum allowed by law, an amount equal to double the taxes a small group of executives avoided on benefits, including rent-free apartments in Trump buildings, luxury cars and private school tuition.
Trump was not on trial and denied any knowledge of his executives evading taxes illegally.
He had previously said the case against his company was part of a politically motivated "witch hunt" waged against him by vindictive Democrats.
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The company's lawyers have vowed to appeal the verdict.
Trump was not on trial and denied any knowledge of his executives evading taxes illegally (AFP via Getty Images)The criminal case involved financial practices and payment arrangements that the company halted when he was elected president in 2016. A jury convicted the company of tax fraud on December 6.
While the fine isn’t big enough to impact the company’s operations or future, the conviction is another black mark on Trump’s reputation as a successful businessman as he mounts a campaign to regain the White House.
The company could potentially face trouble outside of court due to the reputational damage, such as difficulty finding new deals and business partners.
Neither the former president nor his children, who helped run and promote the company, were in the New York courtroom for the sentencing hearing.
Prosecutor Joshua Steinglass said the fine constitutes "a fraction of the revenue" of The Trump Organization and that the scheme was "far-reaching and brazen".
Allen Weisselberg (L), former US President Donald Trump's company chief financial officer, leaves the court after testifying in New York (SARAH YENESEL/EPA-EFE/REX/Shutterstock)He said: "All of these corrupt practices were part of The Trump Organization executive compensation package, and it was certainly cheaper than paying higher salaries to those executives."
The company asked for 30 days to pay the fine but the judge ordered it to be paid within 14 days instead.
Besides the company, only one executive was charged in the case: former Trump Organization Chief Financial Officer Allen Weisselberg.
The former CFO pleaded guilty last summer to evading taxes on $1.7 million (£1.4 million) in compensation. On Tuesday, he was sentenced to five months in jail.
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Weisselberg and attorney Alan Futerfas (right) (SARAH YENESEL/EPA-EFE/REX/Shutterstock)As the Trump Organization's trial concluded, Manhattan District Attorney Alvin Bragg, said the sentencing "closes this important chapter of our ongoing investigation into the former president and his businesses. We now move on to the next chapter".
Trump faces several other legal challenges as he looks to retake the White House in 2024.
A special grand jury in Atlanta has investigated whether Trump and his allies committed any crimes while trying to overturn his 2020 election loss in Georgia.
Last month, the House Jan. 6 committee voted to make a criminal referral to the Justice Department for Trump's role in sparking the violent insurrection at the US Capitol.
The FBI is also investigating Trump's storage of classified documents.