The felony tax fraud trial of the Trump Group went on maintain on Tuesday after the corporate’s controller, Jeffrey McConney, who had been testifying as a prosecution witness, examined constructive for COVID-19.
McConney had been coughing throughout his testimony earlier within the day and on Monday after he took the stand as the primary witness within the trial. He examined constructive after complaining of sickness throughout Tuesday’s lunch break.
Justice Juan Merchan, who oversees the case in Manhattan Supreme Courtroom, stated the trial might resume on Nov. 7 if the 67-year-old McConney felt higher. He stated court docket protocol known as for McConney to isolate for six days.
The sudden delay got here after McConney testified that the Trump Group paid nicely over $1-million in untaxed advantages for Allen Weisselberg, its long-time former chief monetary officer.
McConney’s testimony might bolster prosecutors’ argument that the previous president’s firm improperly paid Weisselberg off-the-books advantages to maintain him joyful by decreasing his tax invoice, and lower your expenses itself.
The Trump Group, which operates lodges, golf programs and different actual property all over the world, was charged in 2021 by the Manhattan district lawyer’s workplace with awarding govt perks over 15 years with out reporting the extra revenue to tax authorities, and falsely reporting bonuses as non-employee compensation.
If convicted, the corporate might face $1.6-million in fines. A conviction might additionally complicate its potential to do enterprise.
The case is one in all a number of authorized issues confronted by Donald Trump, because the Republican former president, 76, weighs one other White Home run in 2024 after shedding to Democrat Joe Biden in 2020.
Trump has not been charged, whereas two Trump Group models have pleaded not responsible.
Weisselberg pleaded responsible and agreed to testify for the prosecution, which considered him as a main beneficiary of the tax scheme.
The plea settlement requires Weisselberg to serve 5 months in jail. He stays on the Trump Group’s payroll, however stepped down as CFO after being charged.
McConney’s sickness was disclosed outdoors the jury’s presence by prosecutor Joshua Steinglass, who informed Merchan that the district lawyer’s workplace had organized for a COVID-19 check.
The choose later stated that McConney examined constructive.
McConney has labored for the Trump Group since 1987, and obtained immunity after testifying to a grand jury.
Earlier than being sidelined, McConney testified that Weisselberg’s $540,000 annual wage and $400,000 annual bonus didn’t change for a decade, however that he was awarded perks together with hire and personal faculty tuition funds.
McConney stated that earlier than turning into president, Trump would resolve how a lot Weisselberg could be paid annually.
“Previous to 2017, he was the boss,” McConney stated, referring to Trump.
McConney was proven a 2005 lease that Trump signed for a $6,500-a-month Manhattan condo for Weisselberg and his spouse.
“That’s President Trump’s signature,” McConney testified, taking a look at Trump’s trademark black Sharpie signature.
He stated one in all Trump’s firms paid about $1 million in hire, greater than $80,000 in utilities and $45,000 for parking, and greater than $195,000 for Mercedes-Benzes for Weisselberg and his spouse between 2005 and 2017.
McConney stated Trump personally signed greater than $315,000 in checks for personal faculty tuition for Weisselberg’s grandchildren, and Weisselberg obtained greater than $29,000 in money to disperse as Christmas presents.
The controller additionally stated different Trump entities, together with a golf membership and his Mar-a-Lago membership in Florida, paid bonuses to some Trump Group workers that may make them seem like unbiased contractors as a substitute of workers.
It was not till 2017 or 2018, by which period Trump’s sons Donald Jr and Eric had taken the helm, that the corporate modified its practices after a memo from its tax lawyer, McConney stated.
McConney stays on the Trump Group’s payroll, and prosecutors view him as a hostile witness.
