According to people familiar with the situation, the Manhattan district attorney’s office is expected to charge the Trump Organization and its chief financial officer with tax-related crimes on Thursday.
This will mark the first criminal charges against the former president’s company since prosecutors began investigating it three years ago.
The accusations against the Trump Organization and Allen Weisselberg, the company’s longstanding top financial officer, represent a setback for former President Donald Trump, who has fought several criminal and civil investigations both during and after his presidency.
According to his lawyer, Mr Trump is unlikely to face charges. According to sources familiar with the situation, Mr Weisselberg has rebuffed prosecutors’ attempts to enlist his help.
According to the sources, the accused are scheduled to appear in court on Thursday afternoon.
According to the sources, the Trump Organization and Mr. Weisselberg will be charged with allegedly avoiding taxes on fringe perks.
The Manhattan district attorney’s office and the New York state attorney general’s office have been looking into whether Mr. Weisselberg and other Trump Organization workers improperly evaded paying taxes on benefits including vehicles, residences, and private-school tuition for months.
Prosecutors might pursue more criminal charges charging a conspiracy if they could demonstrate the Trump Organization and its officials regularly evaded paying taxes, attorneys suggested.
Mr. Weisselberg and his attorneys have remained silent about the enquiry and potential charges.
Mr. Trump has denied wrongdoing and said that the investigations, which are being undertaken by Democratic-controlled offices, are politically motivated.
He stated in a statement earlier this week that the case consists of “things that are common procedure across the United States corporate sector, and in no way a crime.”
Attorneys for Mr. Trump and his firm attempted to persuade prosecutors not to prosecute the Trump Organization in recent virtual sessions, claiming that prosecuting a corporation for fringe benefits or employee remuneration was unprecedented.
Former prosecutors say it’s uncommon to charge a person or corporation for failing to pay taxes on employee perks on its own, but it happens occasionally in larger cases.
The tax enquiry is part of a larger criminal investigation into whether the Trump Organization and its officials inflated and undervalued their assets for financial benefit on loan, tax, and insurance papers.
The criminal investigation, headed by the Manhattan district attorney’s office, and the civil investigation, led by the New York attorney general, have looked at financial dealings involving Mr. Trump’s Seven Springs home in Westchester, N.Y., and the Trump International Hotel and Tower in Chicago.
Both departments’ investigations are expected to continue, and further charges may be filed.
A lawsuit against the Trump Organization or its officials might arise from the attorney general’s civil enquiry. Additional indictments might result from the criminal probe in the future.