NEWS
In the last few days, stories show the case as one concerning fringe benefits, a rarely prosecuted type of case. While this is a case regarding undeclared income and tax evasion, it has a broader scope than many imagined.
In addition to the plot to defraud in the first degree, the indictment accuses the commission of numerous crimes. This includes grand larceny in the second degree, the second most serious white-collar crime in New York, and record fabrication accusations.
The alleged scam is a 15-year tax evasion operation involving multiple Trump Organization executives and staff. However, there has only been one prosecution thus far. According to District Attorney Cyrus Vance, defendant Weisselberg dodged New York State and City taxes and evaded federal taxes, significantly increasing the prospective tax loss amount.
While state authorities cannot prosecute the federal offense of avoiding federal taxes directly under state law, they can charge the intended extent of the scheme to break state law using the federal loss amount, as done here. This suggests a more severe lawsuit and a bigger headache for Trump and his organization.
Vance, the Manhattan district attorney, and Letitia James, the New York State Attorney General, have been looking into bank and tax crimes. These crimes involve asset inflating and deflating, and hush-money payments to adult film star Stormy Daniels.
One question that remained unanswered on Thursday was whether or not the other aspects of the ongoing investigations will ever be charged. While there are many unknowns, one thing is for sure. As Trump’s vehement reaction to the news shows, Thursday’s indictment is terrible news for the former president. Perhaps, there’s worse news to come.
