Tag Archives: organizations

Jury in Trump Organization’s criminal tax fraud trial to begin deliberations

NEW YORK (Reuters) – Jurors in the Trump Organization’s tax fraud trial are set to start deliberating on Monday, following four weeks of testimony and arguments about executive pay practices at Donald Trump’s real estate company that prosecutors say amounted to a years-long criminal scheme.

The former U.S. president’s company was charged in 2021 with paying personal expenses for some executives without reporting the income, and compensating them as if they were independent contractors. Its longtime chief financial officer, Allen Weisselberg, pleaded guilty and testified for the prosecution.

Trump, who last month announced a third run for the presidency in 2024, was not charged in the case. But prosecutor Joshua Steinglass said in his closing argument on Friday that Trump was aware of the scheme, part of an effort to counter the defense’s argument that Weisselberg, 75, sought only to benefit himself and hid his wrongdoing from the Trump family.

“He is not on trial here, but that does not mean that you should believe the defense’s narrative that Allen Weisselberg…went rogue,” Steinglass told the jury.

Trump, a Republican, has called the charges politically motivated. Alvin Bragg, the current Manhattan district attorney, is a Democrat, as is the DA who brought the charges last year, Cyrus Vance.

The Trump Organization has pleaded not guilty. The company faces up to $1.6 million in fines if convicted.

Its lawyers have argued that an outside accountant from Mazars USA who prepared tax returns for the company, Donald Bender, should have caught Weisselberg’s fraud and blown the whistle.

Bender “turned a blind eye to Allen Weisselberg’s wrongdoing,” defense lawyer Susan Necheles said in her closing argument on Thursday. “President Trump relied on Mazars, he relied on Donald Bender to be the watchdog.

Bender, who has been given immunity from prosecution, was the main witness called by the defense. He testified that he trusted that Weisselberg gave him accurate financial information to include in the company’s tax returns and was under no obligation to investigate further.

Mazars cut ties with the Trump Organization earlier this year.

The case is one of several legal troubles facing the 76-year-old Trump. He also faces Department of Justice probes into his efforts to overturn the results of the 2020 presidential election and his removal of government documents from the White House after leaving office, as well as a state probe in Georgia over a push to reverse his election loss in that state.

(Reporting by Luc Cohen in New York; Editing by Noeleen Walder and Alistair Bell)

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Prosecution rests in Trump Organization’s tax fraud case

NEW YORK (AP) — Prosecutors in the Trump Organization’s criminal tax fraud trial rested their case Monday earlier than expected, pinning hopes for convicting Donald Trump’s company largely on the word of two top executives who cut deals before testifying they schemed to avoid taxes on company-paid perks.

Allen Weisselberg, the company’s longtime finance chief, and Jeffrey McConney, a senior vice president and controller, testified for the bulk of the prosecution’s eight-day case, bringing the drama of their own admitted wrongdoing to a trial heavy on numbers, spreadsheets, tax returns and payroll records.

Weisselberg, who pleaded guilty in August to dodging taxes on $1.7 million in extras, was required to testify as a prosecution witness as part of a plea deal in exchange for a promised sentence of five months in jail. McConney was granted immunity to testify.

The Trump Organization’s lawyers are expected to start calling witnesses Monday afternoon, likely beginning with an accountant who handled years of tax returns and other financial matters for Trump, the Trump Organization and hundreds of Trump entities.

Prosecutors had considered calling the accountant, Mazars USA LLP partner Donald Bender, but decided not to. The defense indicated it would call him instead.

Prosecutors called just three other witnesses: the Trump Organization’s accounts payable supervisor, a forensic accountant for the Manhattan district attorney’s office, and a state tax auditor, on the witness stand Monday, who investigated Weisselberg’s taxes.

Weisselberg, now a senior adviser at the company, testified last week that he conspired with McConney, his subordinate, to hide more than a decade’s worth of extras from his taxable income, but that neither Trump nor the family were involved.

McConney testified that Weisselberg and another executive, Michael Calamari Sr., leaned on him over the years to fudge payroll records to hide extras such as Manhattan apartments and Mercedes-Benz cars from their taxable income, in part by reducing their salaries by the cost of those perks and issuing falsified W-2 forms.

Manhattan prosecutors allege that the Trump Organization helped top executives avoid paying taxes on company-paid perks and that it is liable for Weisselberg’s wrongdoing because he was a “high managerial agent” acting on its behalf.

The tax fraud case is the only trial to arise from the Manhattan district attorney’s three-year investigation of Trump and his business practices. If convicted, the company could be fined more than $1 million and face difficulty making deals.

Trump blamed Bender and Mazars for the company’s troubles, writing on his Truth Social platform last week: “The highly paid accounting firm should have routinely picked these things up – we relied on them. VERY UNFAIR!”

Mazars cut ties with Trump in February and said annual financial statements it prepared for him “should no longer be relied upon” after New York Attorney General Letitia James said they regularly misstated the value of assets.

James filed a lawsuit in September accusing Trump and his company of padding his net worth by billions of dollars and habitually misleading banks and others about the value of assets such as golf courses, hotels and his Mar-a-Lago estate.

Trump’s financial statements are not a part of the criminal case.

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Follow Michael Sisak on Twitter at twitter.com/mikesisak and send confidential tips by visiting https://www.ap.org/tips/.



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Prosecutors rest case in Trump Organization’s criminal tax fraud trial

By Luc Cohen

NEW YORK (Reuters) – The prosecution rested its case on Monday in the criminal trial of former U.S. President Donald Trump’s real estate company on charges including tax fraud after calling five witnesses over three weeks, setting the stage for the Trump Organization to begin to mount its defense.

Jurors in New York state court in Manhattan last week heard from the prosecution’s star witness Allen Weisselberg, the company’s former chief financial officer, who testified that the Trump Organization paid his personal expenses including rent and car leases for more than a decade, allowing him to avoid paying taxes on $1.76 million in income.

The Trump Organization, which operates hotels, golf courses and other real estate around the world, could face up to $1.6 million in fines for the three tax fraud counts and six other counts it faces, if convicted. It has pleaded not guilty.

Trump has not been charged in the case. Trump, a Republican who last week launched another bid for the presidency in 2024, has called the charges politically motivated. Alvin Bragg, the current Manhattan district attorney, is a Democrat, as is the DA who brought the charges last year, Cyrus Vance.

The company has sought to shift the blame onto Weisselberg as well as Donald Bender, an outside accountant with the Mazars firm who prepared tax returns for the company and Weisselberg. Lawyers for the company have said they plan to call Bender as a witness. Mazars in February dropped the company as a client and said it could no longer stand behind a decade of Trump’s financial statements.

The district attorney’s office charged the Trump Organization and Weisselberg, who pleaded guilty to charges including grand larceny and tax fraud in an August deal with prosecutors calling for a jail sentence of five months if he testified truthfully in the trial.

Weisselberg during three days of testimony said he worked with the Trump Organization’s controller to misreport his and others’ income on company tax forms, which let the company save on salary payments as well as payroll taxes. The testimony gave a boost to the prosecutors, who in order to win a conviction must show that executives acted in their official capacity when committing crimes.

Under cross-examination by the defense, Weisselberg said his intention in carrying out the arrangement was to benefit himself, calling the company’s savings a “byproduct.” He choked up as he said he was embarrassed about having betrayed the Trump family’s trust.

Weisselberg, who has worked for the company for nearly half a century, is on paid leave from the Trump Organization.

The prosecution began presenting its case on Oct. 31. Its final witness on Monday was Mukaila Rabiu, an auditor with the New York State Department of Taxation and Finance.

The case is separate from a $250 million civil lawsuit filed by New York’s attorney general against Trump, three of his adult children and his company in September, accusing them of overstating asset values and his net worth to get favorable bank loans and insurance coverage.

U.S. Attorney General Merrick Garland on Friday named a special counsel to oversee the Justice Department’s investigations related to Trump including his handling of sensitive government documents after leaving office and efforts to overturn the 2020 election.

(Reporting by Luc Cohen in New York; Editing by Will Dunham and Noeleen Walder)

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Las Vegas Raiders hire Sandra Douglass Morgan, 1st Black woman to serve as NFL organization’s team president

The Raiders have hired Las Vegas attorney Sandra Douglass Morgan as their new team president, becoming the first-ever Black woman to hold a team president title for an NFL franchise.

Morgan’s a Las Vegas native who comes to the Raiders after previously serving as chairwoman and executive director of the Nevada Gaming Control Board. She has also served as the director of external affairs for AT&T Services, Inc. in southern Nevada and as a litigation attorney for an international gaming and hospitality company.

“I am thrilled that Sandra has agreed to join the Raiders family,” Raiders owner Mark Davis said in a statement. “Her experience, integrity and passion for this community will be invaluable to our organization. From the moment I met Sandra, I knew she was a force to be reckoned with. We are extremely lucky to have her at the helm.”

Morgan, who was the first person of color to chair the Nevada Gaming Control Board, is the third woman and third African-American to become president of an NFL team.

She is also the latest Raiders hire to break barriers. Former Raiders coach Tom Flores was the first Hispanic head coach to win a Super Bowl title and former coach Art Shell was the first Black head coach of the NFL’s Super Bowl era.

Morgan, who spent eight years with the city of North Las Vegas, was also the first Black city attorney in the state of Nevada when she served in that role from 2013 to 2016.

“I definitely never want to be the last,” Morgan said, “and I want to get to a point where there is no more firsts.”

Morgan emphasized leadership and full transparency during her introductory press conference at Allegiant Stadium.

“We have so much more to do, and I’m excited to be at the helm of that growth and look forward to ushering in the new chapter for the Raiders,” said Morgan. “The fact is I have accepted this role because I believe in the promise of the Raiders, I believe in the future of the Raiders, and I believe in this organization’s tenets of community, integrity, and most of all, commitment to excellence.”

She takes over a team that has endured tumultuous times in its front office, with two presidents and several longtime executives leaving the organization in less than a year.

After Marc Badain resigned as president last summer, Dan Ventrelle took over in July 2021 on an interim basis and was promoted to the full-time role in January.

But Ventrelle was gone less than a year after joining the organization. In a statement to the Las Vegas Review-Journal, Ventrelle said he was fired in retaliation for bringing concerns from multiple employees to the NFL about a “hostile work environment.”

“It’s no secret that this organization has faced some recent challenges, but I want to be clear, I am not here to sweep anything under the rug or avoid problems or concerns that need to be addressed,” said Morgan. “It is not lost on me that this is a critical and defining moment in the NFL. It’s important to me and it is my intention to make a meaningful contribution well beyond the Raiders family.”

Star defensive end Maxx Crosby, who attended Morgan’s introduction, said Raiders players are excited to start a new chapter.

“It’s incredible,” Crosby said. “First off, just breaking barriers and Mark has done an incredible job and it started with his father. You know, just being transparent and giving everyone an equal opportunity. She’s honestly the best for the job and it’s going to be awesome, we’re excited for the future.”

Coach Josh McDaniels and general manager Dave Ziegler welcomed Morgan in a prepared statement.

“We congratulate Sandra Douglass Morgan on her historic hiring as team president and are excited to welcome her into the Raiders family. Sandra brings impressive leadership experience to the organization and we are thrilled to work with her as we continue to build a championship-caliber culture and team,” the statement said.

Morgan’s husband, Don, played with the Minnesota Vikings and the Arizona Cardinals between 1999 and 2002

The Associated Press contributed to this report

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GitHub Says Hackers Breached Dozens of Organizations Using Stolen OAuth Access Tokens

Cloud-based repository hosting service GitHub on Friday revealed that it discovered evidence of an unnamed adversary capitalizing on stolen OAuth user tokens to unauthorizedly download private data from several organizations.

“An attacker abused stolen OAuth user tokens issued to two third-party OAuth integrators, Heroku and Travis-CI, to download data from dozens of organizations, including NPM,” GitHub’s Mike Hanley disclosed in a report.

OAuth access tokens are often used by apps and services to authorize access to specific parts of a user’s data and communicate with each other without having to share the actual credentials. It’s one of the most common methods used to pass authorization from a single sign-on (SSO) service to another application.

As of April 15, 2022, the list of affected OAuth applications is as follows –

  • Heroku Dashboard (ID: 145909)
  • Heroku Dashboard (ID: 628778)
  • Heroku Dashboard – Preview (ID: 313468)
  • Heroku Dashboard – Classic (ID: 363831), and
  • Travis CI (ID: 9216)

The OAuth tokens are not said to have been obtained via a breach of GitHub or its systems, the company said, as it doesn’t store the tokens in their original, usable formats.

Additionally, GitHub warned that the threat actor may be analyzing the downloaded private repository contents from victim entities using these third-party OAuth apps to glean additional secrets that could then be leveraged to pivot to other parts of their infrastructure.

The Microsoft-owned platform noted it found early evidence of the attack campaign on April 12 when it encountered unauthorized access to its NPM production environment using a compromised AWS API key.

This AWS API key is believed to have been obtained by downloading a set of unspecified private NPM repositories using the stolen OAuth token from one of the two affected OAuth applications. GitHub said it has since revoked the access tokens associated with the affected apps.

“At this point, we assess that the attacker did not modify any packages or gain access to any user account data or credentials,” the company said, adding it’s still investigating to ascertain if the attacker viewed or downloaded private packages.

GitHub also said it’s currently working to identify and notify all of the known-affected victim users and organizations that may be impacted as a result of this incident over the next 72 hours.

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