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Trump Organization Headed To Trial On Tax Fraud Charges, CFO Expected To Plead Guilty

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Former President Donald Trump

Donald Trump’s real estate company and its former chief financial officer will face trial over tax fraud allegations, after a New York judge refused to dismiss the prosecution’s case.

Allen Weisselberg and the company had tried to argue the charges were politically motivated and should not be addressed under state jurisdiction, the Wall Street Journal reports. However, State Supreme Court Justice Juan Merchan allowed the charges, except for one count that prosecutors agreed was too old to be included in the case and should be dismissed.

The trial has been set for Oct. 24, and the former president himself has not been charged with any crimes. Weisselberg is expected to plead guilty to a charge with a reduced sentence after refusing to assist in a broader investigation into the company, CBS News reports

The Trump Organization and Weisselberg were charged last summer, when state prosecutors formally accused the firm of finding illicit ways to shirk state, local and federal taxes.

Weisselberg was charged with grand larceny after the state alleged he benefited from a corporate tax dodge scheme that saw him receiving covert funds to pay for things like tuition for his children and cars. In all, Weisselberg was accused of receiving some $1.76M in “indirect employee compensation."

The case is connected to Manhattan District Attorney Alvin Bragg’s investigation into allegations Trump and his firm lied about asset values to avoid taxes, insurers and to secure loans.

New York Attorney General Letitia James is running a separate civil investigation into The Trump Organization’s business practices. In April, Trump was held in contempt of court after a judge ruled he didn’t comply with a subpoena to turn over documents related to his family real estate business.

That contempt was purged in June after he handed over documents. His appraisal firm for years, Cushman & Wakefield, handed over 36,000 documents to James’ office earlier this month as part of the investigation after being briefly held in contempt and resisting the disclosures over privacy concerns.