[Asia Economy Reporter Jeong Hyunjin] The Trump Group, a family business of former U.S. President Donald Trump, was found guilty in a tax fraud trial. Although former President Trump himself was neither indicted nor tried, this verdict, coming ahead of his 2024 presidential re-election bid, is expected to deal a blow to his campaign path.
On the 6th (local time), according to the Wall Street Journal (WSJ) and others, the jury at the New York State Supreme Court located in Manhattan, New York City, found the Trump Group's two business entities guilty on all 17 criminal charges, including tax fraud and corporate document tampering.
The Trump Group is accused of deceiving tax authorities by paying large bonuses to top executives, including former Chief Financial Officer (CFO) Allen Weisselberg, who is considered a close aide to former President Trump, covering expenses such as apartment rent, luxury car leases, and private school tuition for the family.
As a result of this verdict, the Trump Group will have to pay fines up to $1.6 million (approximately 2.1 billion KRW). Former CFO Weisselberg is expected to receive a prison sentence of less than five months in exchange for pleading guilty and cooperating with prosecutors. The court will finalize the specific fine amount and sentence at the trial on January 13 next year.
The amount of fines and sentences is considered not significant given the scale of the Trump Group. However, foreign media have assessed that the guilty verdict itself poses a political risk, especially since former President Trump has declared his intention to run again in the 2024 presidential election. Additionally, the Trump family is involved in civil lawsuits related to financial and tax fraud allegations and is also facing federal criminal investigations.
During this trial, prosecutors presented evidence suggesting that former President Trump may have been involved in the tax fraud. In the trial on this day, former CFO Weisselberg testified that former President Trump personally signed Christmas bonus checks given to him and directly paid hundreds of thousands of dollars in private school tuition for his grandchildren.
Former President Trump recently rebutted on social networking services (SNS), calling this trial a politically motivated "witch hunt," stating, "Our family has never gained any economic benefit from the actions of that executive (Weisselberg)."
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