Dive Brief:

• Former Trump Organization CFO Allen Weisselberg is in negotiations with the Manhattan District Attorney’s Office for a deal that would require him to plead guilty to perjury charges relating to the ongoing civil fraud case against ex-President Donald Trump, according to The New York Times.
• The deal being negotiated will likely not require Weisselberg to testify against his former employer in District Attorney Alvin Bragg’s upcoming case against former President Donald Trump, which alleges Trump committed electoral and financial crimes in connection with a hush-money payment related to the 2016 election, the paper reported, citing people familiar with the matter. Further details of what an alleged deal would include for the former CFO were not disclosed.
• However, Weisselberg would need to admit that he lied under oath during an interview with the New York Attorney General’s office related to NY AG Letitia James’ civil fraud case against the Trump Organization. The case alleges the former president and key officials — including Weisselberg — fraudulently inflated Trump’s net worth to obtain bank loans on more favorable terms than would have otherwise been available.

Dive Insight:

Both the NY AG and District Attorney’s office sought testimony from Weisselberg regarding the inner workings of the Trump Organization as they investigated claims of financial and electoral fraud.

As part of a previous plea agreement with the Manhattan DA, Weisselberg was required to give his truthful testimony during the trial of two Trump Organization entities that were convicted of tax fraud.

Weisselberg pled guilty to engaging in a scheme to evade income taxes by hiding compensation; as well as giving his testimony, he was sentenced to a five-month prison term in Rikers Island — where he was released early for good behavior — and was required to pay $2 million in back taxes, penalties and interest to the state. The long-time Trump employee also inked a severance agreement of $2 million to be paid out in installments — an agreement that also included language barring Weisselberg from disparaging the organization.

During the NY AG’s civil fraud trial, Weisselberg was called to the stand to give testimony surrounding disputed valuations for several key properties under scrutiny, most notably the former president’s penthouse in Trump Tower. Attorneys for the NY AG’s office flagged omitted data during his trial testimony following a report by Forbes which found Weisselberg lied about the triplex during his time on the stand.

Weisselberg admitted the 30,000 square footage figure used by the Trump Organization to help value the penthouse was incorrect, but attempted to distance his own involvement in using that fraudulent figure despite multiple documents and emails sourced by Forbes speaking to the contrary. The ex-CFO was removed from the stand following the October Forbes report.

Lawyers both for the NY AG’s office and for former president Trump have played tug-of-war regarding Weisselberg’s level of involvement surrounding the statements of financial condition under dispute in the civil fraud case. Weisselberg is a named defendant in the case alongside Trump, his two eldest sons and former Trump Organization controller Jeff McConney. The NY AG is seeking a “lifetime injunction” that would prevent the ex-CFO, ex-controller and the former president from participating in the state’s real estate industry.

Presiding judge Arthur Engoron is expected to shortly release his ruling on the civil fraud case, where the NY AG is also asking for five-year bans from the real estate space for both Eric Trump and Donald Trump Jr, as well as a $370 million fine for the Trump Organization.

The District Attorney’s Office and Weisselberg’s attorney Seth Rosenberg did not immediately respond to requests for comment. The NY AG’s office does not have any information regarding the matter, a spokesperson said via email.