Trump Organization trial resumes as top executive testifies about tax avoidance schemes
The criminal tax fraud trial of the Trump Organization resumed Thursday after a 10-day break with testimony from a senior vice president at the company.
The criminal trial of the Trump Organization resumed Thursday after a 10-day break with testimony from a senior vice president who described steps he and other executives would take to save themselves — and the company — money that should have gone toward taxes.
Senior Vice President Jeffrey McConney, whose positive Covid test Nov. 1 put the trial on hold a day after it started, returned to the stand to testify that he and other top Trump executives received their bonuses as “independent contractors,” even though they were full-time employees.
The designation meant the executives could make tax deductions they otherwise wouldn’t have been able to, and it allowed the company to pay less for Medicare and other taxes, said McConney, who is also the company’s controller.
Prosecutors in Manhattan charged the company with being involved in a 15-year tax fraud scheme.
McConney also testified that Allen Weisselberg, when he was the chief financial officer, and Chief Operating Officer Matthew Calamari were beneficiaries of the scheme and had the company pay for their apartments off the books to reduce their tax burden. In addition, both of the executives' salaries were reduced by the amounts their apartments cost, McConney said.
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