A Manhattan grand jury has filed indictments against former President Donald Trump’s company, The Trump Organization, and its longtime CFO, Allen Weisselberg. Weisselberg will turn himself in tomorrow. The Trump Organization will also be arraigned in court tomorrow and will be represented by legal counsel.
Ronald Fischetti, Trump’s lawyer said earlier: “We asked, ‘Is there anything else? They said, ‘No. It’s crazy that that’s all they had. They just said, ‘When this indictment comes down, he (Trump) won’t be charged. Our investigation is ongoing.”
“It’s like the Shakespeare play Much Ado About Nothing,” Fischetti added. “This is so small that I can’t believe I’m going to have to try a case like this.”
Under New York state law, a corporation convicted of the financial charges being mulled in the Trump Organization case would face at most a $10,000 per count penalty and an order to pay restitution. New York state prosecutors do not have the power, unlike those in some other states, to ask a judge to dissolve a company.
Such an outcome may not seem particularly dire, but legal and business experts said the Trump Organization is likely to face serious “collateral consequences” that could ruin the company.
That’s because other businesses, banks and municipalities are leery — or precluded by internal rules, laws or regulations — from engaging with entities accused of such offenses. Banks, in particular, are hesitant to lend money to those facing such accusations, legal and business experts said, because there is a strong chance they will never recover their money.
“The Trump Organization, if indicted, could find itself without a place to put its assets and without a source of capital,” said Daniel Horwitz, a defense attorney who is a former Manhattan prosecutor.
“If you are a bank, are you going to lend money to a company accused of a financial crime? If you are another company, would you do business with another that has been indicted? The answer is frequently no.”
Horwitz and other legal experts said a conviction would trigger a further series of challenges for the Trump Organization because businesses, banks and governments face stricter rules in that scenario.
For example, a range of financing strategies popular with private companies are off-limits by the Securities and Exchange Commission to “bad actors,” including those convicted of financial crimes, according to Will Thomas, an assistant professor of business and law at the University of Michigan.
NEW: A Manhattan grand jury has filed indictments against President Trump's company and its longtime CFO, Allen Weisselberg.— David Fahrenthold (@Fahrenthold) June 30, 2021
Weisselberg will turn himself in tomorrow. Trump Org will also be arraigned in court, represented by a lawyer.https://t.co/CRl0kkHvqv
The indictments will be unsealed tomorrow, and we can finally see the evidence that the Manhattan DA believes he has against Trump Org. https://t.co/zokmf5AHhI— David Fahrenthold (@Fahrenthold) June 30, 2021
THANK YOU TEXAS! 🇺🇸🦅 pic.twitter.com/YJZ2lRlqMg— Dan Scavino🇺🇸🦅 (@DanScavino) June 30, 2021