Here’s the 'problem' with ex-Trump Org CFO’s $2 million severance agreement: analyst

11 October 2023

Following former Trump Organization Chief Financial Officer Allen Weisselberg's testimony during ex-President Donald Trump's New York civil fraud trial Tuesday, MSNBC legal analyst Lisa Rubin took to X (formerly Twitter) to share her knowledge of Weisselberg's severance agreement.

PBS reports New York Attorney General Letitia "James' lawsuit alleges that Weisselberg engineered Trump's financial statements to meet his demands that they show increases in his net worth and signed off on lofty valuations for assets despite appraisals to the contrary."

On Wednesday, Rubin wrote, "We learned yesterday that Allen Weisselberg's severance agreement will ultimately pay him $2 million by 12/31/24 if he fully complies. What I didn't appreciate is what he promised in return. To some extent, it's not atypical to require an employee to promise not to assist with others' claims. The problem here is context—and timing."

POLL: Should Trump be allowed to hold office again?

She continued, "Let's start with the fact that while Weisselberg left the company at the end of 2022 and the agreement contemplated his completing his work in good faith before that date, it wasn't executed by him until the literal eve of his Jan. 10, 2023 sentencing. And it wasn't signed by Alan Garten, the Trump Organization's chief legal officer, until Jan. 12, two days after Weisselberg entered Rikers."

Rubin added, "What's more, according to the payment schedule appended to the agreement, the Trump Org. did not start paying him until Mar. 31, 2023, well into his prison sentence and certainly *after* reports that the Manhattan DA was still investigating Weisselberg for insurance fraud. Now let's go back to *his* severance obligations. They include cooperating in an investigation or litigation against the company or Trumps by meeting with them in connection with 'discovery or pretrial issues' and providing "truthful testimony on behalf of Releasees. That means he was likely obligated to meet with them before his trial testimony."

She continued, "The severance agreement also entitles Weisselberg to be indemnified for any reasonable attorney's fees in any legal matter against him or the company--but there's some big catches. He can't hire a lawyer without the company's prior approval, and "to the extent there is no direct conflict of interest and at the election of the Company, [Weisselberg] shall be jointly represented by counsel for the Company. Put another way, if he wants his own fees paid, they get to decide who represents him and even force their own lawyers on him. But, of course, all of this pales in comparison to Weisselberg's commitment that except where forced by subpoena or other court-ordered process, he won't give information to anyone else with claims against the company and/or anyone he individually released (e.g., Trump)... or 'take any action to induce, encourage, instigate, aid, abet or otherwise cause" any person or entity "to bring or file a complaint, charge, lawsuit or other proceeding of any kind against the Company or any person or entity released by this Agreement."

Rubin concludes, "Read broadly, the agreement precludes Weisselberg from voluntarily cooperating with any law enforcement or prosecutorial agency in exchange for lenience as to other crimes for which he could be under investigation and/or ultimately charged. And yes, that might be the definition of unenforceable as a matter of public policy. But if you're Weisselberg, what incentive do you have to test that proposition when you have $2 million in severance, payable even if you die, riding on it? None. FIN."

PBS' full report is available at this link.

From Your Site Articles