Senior Vice President and Controller, Jeffrey McConney, Testified at the company’s Criminal Tax Fraud Trial, that he filed False Tax Returns, on behalf of a Father-Son Executive duo, whose Manhattan Apartment Rents were Paid by the Trump Organization.
McConney, who was Granted Immunity to Testify as another Prosecution Witness, also testified that a few years before Trump became President, the company’s Accountant raised Concerns about the way it Paid-Out Holiday Bonuses, a topic that has consumed hours of Trial Testimony.
According to McConney, the Accountant warned that the Trump Organization’s dubious, and since-Discontinued Practice of splitting Bonus Payments between an Executive’s Salary and One-time Independent Contractor Payments, from Subsidiaries, could jeopardize the Law License of One such Executive, the companay Top Lawyer.
The Trump Organization, the entity through which Trump owns Hotels, Golf Courses, and other Assets, is accused of helping some Top Executives avoid Income Taxes on Compensation they got, in addition to their Salaries.
The company, which could be Fined more than $1 million if Convicted and Dissolved, has denied Wrongdoing. Its Lawyers allege that another Executive, longtime Finance Chief Allen Weisselberg, another Prosecution Witness, went Rogue, concocted the Scheme without Trump or the Trump Family’s Knowledge and Lied to the company about what he’d done.
Trump Organization Lawyer Susan Necheles kept the Jury’s attention on Weisselberg, as she questioned McConney on Cross-Examination Thursday afternoon, showing emails indicating that McConney needed to get Permission from Weisselberg to complete even simple Tasks, such as Approving a $100 Expenditure or Writing a few sentences to describe the Ice Rinks the company managed in Central Park. McConney said that Weisselberg, his Boss for years, had wide latitude over the company’s Operations and even quoted him as saying that Trump hired him to essentially Run the Company. He was Trump's Father's CFO. Weisselberg has pleaded Guilty to taking $1.7 million in Off-the-Books Compensation and agreed to Testify, possibly next week, in exchange for a Five-month Jail Sentence.
McConney, who said he prepares Taxes on the side, for a handful of Clients, told Jurors that he checked “No” on State Tax form questions asking if Chief Operating Officer Matthew Calamari Sr. maintained New York City Living Quarters, despite knowing that he had, allowing them both to Avoid paying City Wage Taxes. McConney said he did the same on Matthew Calamari Jr.’s Tax Forms, and did Not submit Amended Tax Reurns when he learned that he too was living in a company-paid Big Apple Apartment. “Did you intentionally try to help people evade their income taxes?” Prosecutor Joshua Steinglass asked. “Evade is a very strong word,” McConney responded. “I tried to help them any way I could, with some suggestions.”
The Trump Organization also paid for Weisselberg’s Manhattan Apartment, Mercedes-Benz Cars for him and his wife, Furnishings and Utilities. Trump personally paid his Grandchildren’s School Tuition.
McConney, in his Third day on the Witness Stand, testified that he deducted the Cost of some Executives’ Perks from their Salaries, reducing their Tax Liability further. Trump Signed-Off on the Salary Reductions. Prosecutors showed a 2012 Memo noting One such arrangement for Calamari Sr. bearing the Trump’s Initial, and the Handwritten notation, “OK.”
McConney testified that the company was warned years earlier by its own Accountant, Donald Bender, that its decades-old way of Doling out Holiday Bonuses, saving money on Taxes by paying Full-Time Employees as Freelance Workers, and possibly writing the Payoff as an Expense, could imperil then-general Counsel Jason Greenblatt’s ability to Practice Law. “It had something to do with, he could lose his legal license,” McConney testified. In 2015, after Bender spoke up, Greenblatt’s bonus was paid entirely as Salary.
McConney said that Weisselberg, his boss for years, had wide Latitude over the company’s Operations and even quoted him as saying that Trump hired him to essentially run the company. Weisselberg has pleaded Guilty to taking $1.7 million in off-the-books Compensation and agreed to Testify as a Prosecution Witness, possibly next week, in exchange for a five-month Jail Sentence.
McConney, who said he prepares Taxes on the side for a handful of Clients, told Jurors that he checked “No” on State Tax Form Questions asking if Chief Operating Officer Matthew Calamari Sr. maintained New York City living quarters, despite knowing that he had, allowing them both to avoid paying City Wage Taxes. McConney said he did the same on Matthew Calamari Jr.’s Tax Forms and did Not submit Amended Tax Returns when he learned that he too was Living in a Company-paid Big Apple Apartment. “Did you intentionally try to help people evade their income taxes?” Prosecutor Joshua Steinglass asked. “Evade is a very strong word,” McConney responded. “I tried to help them any way I could, with some suggestions.”
The Trump Organization also paid for Weisselberg’s Manhattan Apartment, Mercedes-Benz cars for him and his wife, Furnishings and Utilities. Trump personally paid his grandchildren’s School Tuition.
McConney, in his Third day on the Witness stand, Testified that he Deducted the Cost of some Executives’ Perks from their Salaries, Reducing their Tax LSability further. Trump signed-Off on the Salary Reductions. Prosecutors showed a 2012 memo noting one such Arrangement for Calamari Sr. bearing Trump's initial and the handwritten notation, “OK.”
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