Falsehoods Unchallenged Only Fester and Grow
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Um... there are many business and investment folks who intentionally follow that strategy. It's called increasing value.fierceredpanda wrote: ↑Tue Jul 06, 2021 6:08 am ...it's mortgaging your firm's reputation and existence tomorrow in exchange for a bit of cash today.
Somewhere upthread I asked about how white collar criminal defense lawyers get paid. I was asking in re Weisselberg. Do they charge a huge retainer and bill against it, requiring the retainer to be replenished to a specific amount? Your expertise is appreciated.fierceredpanda wrote: ↑Tue Jul 06, 2021 6:08 am My takeaway was that the accounting industry learned absolutely nothing from the demise of Arthur Andersen. Doing illegal shit for one client isn't a legitimate business strategy - it's mortgaging your firm's reputation and existence tomorrow in exchange for a bit of cash today.
Moar at the link, plus video from Ali Velshi interview with Jennifer Weisselberg. I don't recall hearing before that she hasn't seen her children since February 2020.We have now had a few days to try to absorb the Manhattan district attorney’s criminal indictment against the Trump Organization and Chief Financial Officer Allen Weisselberg. Here are some topline takeaways from what could be the beginning of the end for the Trump Organization.
These are serious criminal charges for both Weisselberg and the Trump Organization. The indictment alleges a 15-year-long criminal scheme involving deeply entrenched, systematic fraud to provide off-the-books compensation for the purposes of evading federal, state and New York City taxes. From 2005 through June 30, 2021 (the day before the indictment was unsealed), Weisselberg is alleged to have received more than $1.7 million in compensation that was hidden on a second set of corporate books. This allegedly enabled him to evade taxes — or, in a very real sense, steal from tax-paying citizens — $550,000 in federal taxes, $106,000 in New York state taxes and $240,000 in New York City taxes. Indeed, one of the 15 charges indicted against Weisselberg is grand larceny for stealing these tax dollars.
Weisselberg has pleaded not guilty.
Well, I've left private practice (nope, don't miss it) and I never really handled any white-collar stuff, so I'm not the guy to speak as an expert on this. Generally for criminal cases, you want all your money up front whenever possible, as either a flat-fee (my preference) or a retainer to be billed against at your hourly rate (which I disliked because of the dishonest games it causes attorneys to play with their clients vis a vis how many hours you actually need to do thus-and-such). If they couldn't pay it at the beginning of the case, they're generally not going to want to cough it up later. For a guy like Weisselberg - who is accused of dodging taxes on north of a million bucks, let's not forget - that shouldn't be a problem unless he's a complete moron.filly wrote: ↑Tue Jul 06, 2021 11:02 amSomewhere upthread I asked about how white collar criminal defense lawyers get paid. I was asking in re Weisselberg. Do they charge a huge retainer and bill against it, requiring the retainer to be replenished to a specific amount? Your expertise is appreciated.fierceredpanda wrote: ↑Tue Jul 06, 2021 6:08 am My takeaway was that the accounting industry learned absolutely nothing from the demise of Arthur Andersen. Doing illegal shit for one client isn't a legitimate business strategy - it's mortgaging your firm's reputation and existence tomorrow in exchange for a bit of cash today.
What shocks me is that the New York State Board of Accountancy apparently did nothing to discipline these partners and their firm. Here in California, these acts would have resulted in license revocations and quite possibly pulling the partnership/corporate license to practice accounting. I read with much interest the decisions by the CBA as they mete out discipline and revocation for the bad actors. One fraudulent tax return is grounds for revocation. One misstep with the SEC is the same.
No argument from me. Accountants are notoriously paranoid when it comes to their business model. We see our clients generally once a year, whether for attest services or income taxes. You never know what will happen between engagements. It's not that big a deal if you lose a $750 tax return, but when you lose a five or six figure per year client, ya gotta cut costs one way or another.fierceredpanda wrote: ↑Tue Jul 06, 2021 6:08 am My takeaway was that the accounting industry learned absolutely nothing from the demise of Arthur Andersen. Doing illegal shit for one client isn't a legitimate business strategy - it's mortgaging your firm's reputation and existence tomorrow in exchange for a bit of cash today.
)Former Nixon WH counsel
@JohnWDean
tells us he would pay money to depose Trump… but cautions don’t hold your breath.
The Trump Organization has removed longtime finance chief Allen Weisselberg as an officer at some of its subsidiaries, after prosecutors accused him and the company of a 15-year tax-fraud scheme, according to public filings and people familiar with the matter.
The removal of Mr. Weisselberg as an officer from multiple Trump Organization entities comes amid discussions of potential changes in the chief financial officer’s duties, responsibilities and possibly title at former President Donald Trump’s company, people familiar with the matter said. Mr. Weisselberg, who has worked for the Trump family since 1973, is expected to remain at the company, the people said.
One company that is facing charges in the same criminal case, Trump Payroll Corp., previously listed Mr. Weisselberg as treasurer, director, vice president and secretary on Florida Department of State business records. Now Mr. Trump’s eldest son, Donald Trump Jr. , is listed as executive vice president, director, secretary, treasurer and vice president on records filed late last week. His son Eric Trump is now listed as president, director and chairman on those records.
Trump Payroll is run by Trump Organization employees and processes payroll for company staff, according to an indictment in New York state court. In 2015 and 2016, Mr. Trump was listed as the only officer of Trump Payroll, according to Florida records. Mr. Trump wasn’t charged in the case.
I'm curious about the motivation behind these changes. For the Scottish golf course, I can understand that UK law may make it illegal for a corporation to have an indicted officer, but that's not the case for US law. Is there any sort of protection the various LLCs would lose if Weisselberg remains an officer? Judging from the way the various Trump organizations are actually run, I imagine it will be fairly easy to pierce their corporate veils once things start to unwind. I don't see the upside of removing Weisselberg as an officer, and I do see a significant downside in making it clear to him that his time in the Trump orbit has come to an end.Kendra wrote: ↑Mon Jul 12, 2021 6:50 pm https://www.wsj.com/articles/trump-orga ... 1626120671
The Trump Organization has removed longtime finance chief Allen Weisselberg as an officer at some of its subsidiaries, after prosecutors accused him and the company of a 15-year tax-fraud scheme, according to public filings and people familiar with the matter.
The removal of Mr. Weisselberg as an officer from multiple Trump Organization entities comes amid discussions of potential changes in the chief financial officer’s duties, responsibilities and possibly title at former President Donald Trump’s company, people familiar with the matter said. Mr. Weisselberg, who has worked for the Trump family since 1973, is expected to remain at the company, the people said.
One company that is facing charges in the same criminal case, Trump Payroll Corp., previously listed Mr. Weisselberg as treasurer, director, vice president and secretary on Florida Department of State business records. Now Mr. Trump’s eldest son, Donald Trump Jr. , is listed as executive vice president, director, secretary, treasurer and vice president on records filed late last week. His son Eric Trump is now listed as president, director and chairman on those records.
Trump Payroll is run by Trump Organization employees and processes payroll for company staff, according to an indictment in New York state court. In 2015 and 2016, Mr. Trump was listed as the only officer of Trump Payroll, according to Florida records. Mr. Trump wasn’t charged in the case.
Yes, he did surrender his passport and his inability to be physically present in Scotland might have contributed to the decision to remove him from the Scottish entity(ies).
There are very likely loan covenants that stipulate the banks can call a loan if an officer is indicted. Of course, there are absolutely provisions that the loans can be called if the company itself is indicted.somerset wrote: ↑Mon Jul 12, 2021 11:52 pmYes, he did surrender his passport and his inability to be physically present in Scotland might have contributed to the decision to remove him from the Scottish entity(ies).
But my question is about the US entities. I don't see any good reason to do this. In other forums some folks have suggested that liquor licenses or loan requirements may preclude an indicted officer, but with the company itself indicted along with Weisselberg I don't see how removing him would make any difference.
Maybe one of our IAACorpLs could shed some light on this
I doubt that much of the money the TO owes is to legitimate banks. Wasn't it in 2012 or thereabouts when Donald Jr. told the Golf Channel that their newfound liquidity was from Russia? If the loans are called in it would hasten the collapse of the organization and, possibly, Trump himself, which seems like it would end the damage Trump is doing to the US. What if that is not in the interests of whomever is in control of those that made the loans? Between the covenants of sketchy loans not being as strong as legitimate loans, the open question of what route allows lenders to recoup the most money they can, and the possibility of political motivations for not calling the loans I honestly don't expect anything to happen - at least not quickly. Especially if the lenders are asking WWPD? (What Would Putin Do?)Gregg wrote: ↑Tue Jul 13, 2021 1:09 pm There are very likely loan covenants that stipulate the banks can call a loan if an officer is indicted. Of course, there are absolutely provisions that the loans can be called if the company itself is indicted.
I dunno if the banks pushed him or if someone is scared shitless and "the better part of valor" is run and hide and hope no one shoots you.
The entire Trump Organization has always been a paycheck to paycheck operation except for the period when his TV show was pumping cash in. I'm not sure who should be more scared right now, Trump or the banks he owes money to. In the legitimate banks he owes there are probably daily discussions about whether to call in loans or wait to see if he makes the payment next month. I'm certain that once they demand payment they won't get another dime out of him until a court garnishes it. Balance that against being the second bank to call in a loan, because when the line forms, it could end up being whoever filed first gets paid first.
Hunter S. Thompson.Mr. Gneiss wrote: ↑Tue Jul 13, 2021 2:26 pm So what does HST stand for? Hubble Space Telescope....Hawaii Standard Time?
Mr. Gneiss wrote: ↑Tue Jul 13, 2021 2:26 pm So what does HST stand for? Hubble Space Telescope....Hawaii Standard Time?
