Trump Organization hit with $1.6M fine following tax fraud conviction

Trump Organization hit with $1.6M fine following tax fraud conviction
President Donald J. Trump disembarks Air Force Two Monday, Oct. 28, 2019, at O’Hare International Airport in Chicago. (Official White House Photo by Shealah Craighead)
Trump Tower Chicago is hemorrhaging money after ‘becoming synonymous with corruption, racism and misogyny’: report

Former President Donald Trump's company is now facing a $1.6 million fine as a result of the scheme involving his top executives' tactics to avoid paying personal income taxes while enjoying extravagant business perks.

According to HuffPost, the fine was the only penalty that a judge could impose on the Trump Organization following its conviction in December.

The organization was found guilty of 17 tax crimes which included “conspiracy and falsifying business records,” the news outlet reported.

READ MORE: Judge scolds Trump Organization lawyers for name-dropping former president in tax fraud trial

Not only is the penalty the only one that could be imposed but it is also the largest amount the organization could be charged with.

Per the news outlet, the amount for the ruling Judge Juan Manuel Merchan was legally allowed to hand down is “an amount equal to double the taxes a small group of executives avoided on benefits including rent-free apartments in Trump buildings, luxury cars and private school tuition.”

The disclosure of the fine amount comes amid a flurry of legal battles Trump is currently fighting. However, in this case, the company is only being held accountable. In fact, Trump has personally denied all allegations of any wrongdoing and none of his children are facing repercussions for the tax scheme.

In the wake of the sentencing, a number of legal experts have weighed in with their reactions.

READ MORE: 'Juries hate rich tax cheats': Legal experts say Trump Org did 'exactly what corporations are not supposed to do'

According to prosecutor Joshua Steinglass, the fine imposed constitutes “‘a fraction of the revenue’ of the Trump Organization and that the scheme was ‘far-reaching and brazen.’”

“All of these corrupt practices were part of the Trump Organization executive compensation package, and it was certainly cheaper than paying higher salaries to those executives,” he said.

READ MORE: Donald Trump’s 'Schedule F' scheme would 'radically reshape' the federal government in 2025: report

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