Allen Weisselberg, one of Donald Trump's top executives, accepted a plea deal and pleaded guilty Thursday to 15 felonies regarding a scheme to avoid paying taxes on lavish perks as Chief Financial Officer of the Trump Organization.
"In one of the most difficult decisions of his life, Mr. Weisselberg decided to enter a plea of guilty today to put an end to this case and the years-long legal and personal nightmares it has caused for him and his family," his attorney Nicholas Gravante Jr. said in a statement.
Weisselberg has refused to implicate the former U.S. president but that could change with the plea deal.
As part of the agreement with the district attorney's office in Manhattan, Weisselberg is required to testify at trial and admit his role in conspiring to knowingly carry out a multitude of tax violations.
Weisselberg's testimony could adversely impact the Trump Organization's court case which faces similar charges as it prepares for trial in October.
When asked by Judge Juan Merchan whether he and the Trump Organization committed criminal conduct underlying each of the 15 tax scheme counts, Weisselberg responded again and again, "Yes, your honor."
Weisselberg avoided paying taxes on $1.76 million in income in the last 15 years and was facing up to 15 years in prison. But under the terms of the plea deal, if he testifies truthfully, he will receive a five-month sentence and must pay nearly $2 million in taxes, penalties and interest.
"Rather than risk the possibility of 15 years in prison, he has agreed to serve 100 days," said attorney Mary Mulligan. "We are glad to have this behind him."
Weisselberg's admissions do not implicate Trump, and the agreement does not require him to cooperate with the district attorney's criminal investigation of the former president. His deal comes amid several other investigations targeting Trump's efforts to overturn the 2020 presidential election.
Trump is also the subject of a civil investigation by the New York State attorney general focusing on whether he fraudulently inflated the value of his hotels, golf clubs and other assets to obtain loans.
This is on top of last week's FBI raid on Trump's Mar-a-Lago resort in Palm Beach, Florida, where agents retrieved boxes of sensitive documents Trump may have illegally taken from the White House.
At the same time, Weisselberg's willingness to accept jail time rather than flip on this former boss demonstrates his loyalty to Trump, whom he has served for nearly 50 years.
But prosecutors may still gain the upper hand with Weisselberg's cooperation because they can point to his admissions that he conspired with the Trump Organization and brand him a convicted felon.
"Instead of paying his fair share like everyone else, Weisselberg had the Trump Organization provide him with a rent-free apartment, expensive cars, private school tuition for his grandchildren and new furniture — all without paying required taxes." said Manhattan district attorney Alvin Bragg, who emphasized that the plea deal "directly implicates the Trump Organization in a wide range of criminal activity."
"We look forward to proving our case in court against the Trump Organization," he said.
