Trump firm faces bankruptcy as New York prosecutors file lawsuit
The Trump organization is facing a financial and political blow from state prosecutors seeking criminal prosecution in a move labeled a “witch hunt” by the former president.
Former President Donald Trump is preparing to make an impact as state prosecutors prepare to file two financial and political charges against his family business this week, calling the move a “witch hunt.”
New York attorneys are seeking criminal prosecution in a case related to the Trump Organization’s tax proceedings that has benefited senior leaders with the use of apartments and luxury cars.
Mr. Trump should not be charged personally, but it is believed that the ensuing legal battle could bring his company to its knees financially.
The court case could irreversibly ruin his partnerships with banks, business allies and cast a shadow over the possible return of the beleaguered former president to the 2024 election race.
The charges have been called “absolutely outrageous and unprecedented” by lawyer Ro Fischetti who is preparing to defend the Trump Organization.
He held a video meeting with New York prosecutors last week with the ultimate goal of ending criminal proceedings before they got off to a proper start.
“It’s just to come back to Donald Trump. We are going to plead not guilty and bring a motion to dismiss,” he said. The Associated Press After the meeting.
Trump’s legal team has been working toward a Monday, June 28 deadline to respond to charges against the former president’s family business.
An investigation by Manhattan District Attorney Cyrus Vance was opened into the Trump Organization after former Trump attorney Michael Cohen allegedly paid secret money before Trump ran for president in 2016.
Mr Vance claimed that two women who said they had sex with Trump were paid in exchange for their discretion over the matter.
The spotlight was recently transferred to CFO Allen Weisselberg, who is a key player in the management of Trump’s private real estate company.
Her son’s use of a significantly reduced cost apartment, car rental and payments to a school linked to Mr Weisselberg’s grandchildren were raised as potential issues by prosecutors.
The purported benefits of being an employee of Trump could add up to hundreds of thousands of financial benefits, which could put the company at risk if the related tax returns were not handled properly.
Mr. Fischetti maintained that a successful benefits-based lawsuit would mark a notable break with tradition.
“We looked back 100 years and found none in which an employee was charged with benefits and certainly not a business,” he said.
If the crime is to be proven, the alleged financial benefits should flow to the Trump company unbeknownst to the company.
Mr Trump has called the ongoing investigation a “witch hunt” and an attempt by opponents to remove him from politics.
The former president was defeated by Joe Biden in last year’s election but remains a political force to be reckoned with and returned to campaign rallies on Saturday.
Mr. Trump is expected to get involved in the 2022 election and there are rumors he could run for the Oval Office again in 2024.
Prosecutor Cyrus Vance worked with New York State Attorney General Letitia James, who assigned two attorneys to work with Mr. Vance on the case.
She also conducted her own civilian investigation into possible measures by the Trump Corporation to inflate house prices in order to negotiate advantageous loans while lowering others for tax-cutting purposes.
Mr Trump has dismissed both inquiries, saying on Monday the charges were linked to a long-term Democratic plot against him.
“They will do anything to stop the MAGA (Make America Great Again) movement,” he said.
He said being politically charged was a “very dangerous” thing for the United States, reminding people “if they can do this to me, they can do it to anyone”.
The legal protections Trump enjoyed while in the White House no longer exists, exposing his family business to new litigation.