Former U.S. President Donald Trump‘s namesake company saved hundreds of thousands of dollars by paying longtime executive Allen Weisselberg’s rent and other personal expenses instead of increasing his salary, Weisselberg testified on Tuesday at the company’s tax fraud trial.
Weisselberg, the Trump Organization’s former chief financial officer, spoke about the savings during testimony as the prosecution’s star witness. He said that Trump’s company paid for him to move from Long Island to a spot closer to the Fifth Avenue building – and the company paid up to $7,000 for his rent.
The Trump Organization has pleaded not guilty to charges in 2021 by the Manhattan district attorney that it hid executive perks from tax authorities for over 15 years, and falsely reported bonuses as non-employee compensation.
Weisselberg pleaded guilty in August to avoiding taxes on $1.76 million in income and helping engineer tax fraud. His plea agreement requires him to testify in exchange for a five-month jail sentence.
Trump, a Republican, has not been charged, and has called the prosecution politically motivated. Alvin Bragg, the Manhattan district attorney, is a Democrat.
Ex-CFO of the Trump Organization, Allen Weisselberg, claimed that the former president’s company paid his personal expenses to avoid hefty taxes on his $640k salary
![Trump's company has not pleaded guilty to the charges by the Manhattan district attorney - who claimed the company hid perks to avoid taxation. Pictured: Trump at his Mar-a-Lago estate in Palm Beach](https://i.dailymail.co.uk/1s/2022/11/16/02/64591801-11433019-image-a-40_1668567252242.jpg)
Trump’s company has not pleaded guilty to the charges by the Manhattan district attorney – who claimed the company hid perks to avoid taxation. Pictured: Trump at his Mar-a-Lago estate in Palm Beach
![Weisselberg testified that the company paid for him to move nearby the company's Fifth Avenue headquarters from Long Island](https://i.dailymail.co.uk/1s/2022/11/16/02/64591797-11433019-image-a-41_1668567299079.jpg)
Weisselberg testified that the company paid for him to move nearby the company’s Fifth Avenue headquarters from Long Island
During questioning by prosecutor Susan Hoffinger on Tuesday in a New York state court, Weisselberg testified that starting around 2005, the Trump Organization paid the $7,000 to $8,000 monthly rent on his Manhattan apartment, as well as his utilities, phone and parking garage bills.
Weisselberg, 75, testified the arrangement began after Trump suggested he live closer to the company’s Fifth Avenue headquarters, rather than commute from his home in suburban Long Island.
‘He said, ‘Allen I think it’s time you should consider moving into the city,” Weisselberg said, adding that Trump also said it would ‘help you, help the company.’
Weisselberg said rent and accompanying expenses grew to about $200,000 a year. He said if the Trump Organization gave him a raise to cover those expenses, it would have cost the company twice as much to account for his resulting taxes.
‘The Trump Corporation would have had to give me double the amount,’ Weisselberg said, referring to one of the two Trump Organization units charged in the case.
Weisselberg said he did not report the payments on his tax returns and purposefully withheld them from Mazars, an accounting firm that prepared his taxes, because it might have balked at signing his returns.
![During questioning by prosecutor Susan Hoffinger (above), Weisselberg testified that starting around 2005, the Trump Organization paid the $7,000 to $8,000 monthly rent on his Manhattan apartment](https://i.dailymail.co.uk/1s/2022/11/16/02/64591785-11433019-image-a-42_1668567336879.jpg)
During questioning by prosecutor Susan Hoffinger (above), Weisselberg testified that starting around 2005, the Trump Organization paid the $7,000 to $8,000 monthly rent on his Manhattan apartment
![The ex-CFO 'hopes' he will still receive his $500,000 bonus from the company in January](https://i.dailymail.co.uk/1s/2022/11/16/02/64591793-11433019-image-a-39_1668567245916.jpg)
The ex-CFO ‘hopes’ he will still receive his $500,000 bonus from the company in January
The company’s lawyers have argued that Weisselberg, who has worked for Trump for half a century, orchestrated the scheme to benefit himself. They have also sought to blame Mazars, which for many years prepared Trump Organization tax returns.
Weisselberg said he received a $640,000 salary and $500,000 bonus before being charged in 2021.
He said his salary has remained unchanged, including after going on paid leave last month, and that he got a bonus this year despite stepping down as CFO and executive vice president.
Hoffinger asked if he expected to receive another $500,000 bonus in January.
‘Hopefully, yes,’ Weisselberg said.
![Trump Organization controller Jeffrey McConney testified that he did not know whether executives' rent payments were taxable income](https://i.dailymail.co.uk/1s/2022/11/16/02/64591781-11433019-image-a-43_1668567576257.jpg)
Trump Organization controller Jeffrey McConney testified that he did not know whether executives’ rent payments were taxable income
The trial’s first witness, Trump Organization controller Jeffrey McConney, testified that he did not know whether executives’ rent payments were taxable income.
McConney had been granted immunity to testify before the grand jury that indicted Weisselberg and the company.
Weisselberg said McConney knew the payments should have been reported, citing his experience in accounting.
‘I believe he knew the law,’ Weisselberg said.
Weisselberg is expected to continue testifying when trial resumes on Thursday.
The case is one of several legal troubles facing the 76-year-old Trump. The former president recently announced his run for 2024 presidency on Tuesday
![Protesters stand in front of Trump Tower in New York, Tuesday, August 9, 2022](https://i.dailymail.co.uk/1s/2022/08/16/03/61417235-11114855-image-a-23_1660617327677.jpg)
Protesters stand in front of Trump Tower in New York, Tuesday, August 9, 2022
Prosecutors alleged that Weisselberg and the Trump Organization schemed to give off-the-books compensation to senior executives, including Weisselberg, for 15 years.
Weisselberg alone was accused of defrauding the federal government, state and city out of more than $900,000 in unpaid taxes and undeserved tax refunds.
Trump, who has decried the New York investigations as a ‘political witch hunt,’ has said his company’s actions were standard practice in the real estate business and in no way a crime.
In August, Trump sat for a deposition in New York Attorney General Letitia James’ parallel civil investigation into allegations Trump’s company misled lenders and tax authorities about asset values.
He invoked his Fifth Amendment protection against self-incrimination more than 400 times.