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Thursday, October 1, 2026

Compensation Fraud Trial Against Trump Organization Advances - SHRM

An alleged scheme by the Trump Organization to fail to report and pay taxes on compensation provided to employees has resulted in nine counts of tax fraud, grand larceny and falsifying business records. We've gathered articles on the news from SHRM Online and other media outlets.

Jury Selection

On Oct. 24, jury selection began in the trial of the Trump Organization, which is accused of evading taxes by compensating employees through off-the-books benefits like luxury cars, apartments and private school tuition.

Two Trump Entities Allegedly Involved

The Trump Organization comprises more than 500 corporate entities. Last year, the district attorney's office accused two of those entities—The Trump Corporation and Trump Payroll Corp.—of awarding the off-the-books benefits to a few top executives who failed to pay taxes on the perks.

Trump Not Implicated

Former President Donald Trump is not a defendant and is not expected to be implicated in any wrongdoing. The Trump business has pleaded not guilty and said the prosecution is politically motivated.

CFO Pleaded Guilty

The Trump Organization and Allen Weisselberg, its longtime chief financial officer, were indicted last year following a yearslong investigation into the company's financial practices by the Manhattan district attorney's office. Weisselberg pleaded guilty to 15 felony charges in August.

Trump has criticized the investigation into his company and the charges against his longtime employee as part of a "witch hunt."

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