Weisselberg spills on Trump Organization

From: POLITICO New York Playbook - Wednesday Nov 16,2022 12:35 pm

Nov 16, 2022

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The same day Donald Trump announced another run for president , one of his top lieutenants took the stand to implicate his business empire in a years-long tax fraud scheme.

Allen Weisselberg, the former CFO of the Trump Organization, was called as the star witness in the Manhattan district attorney’s case against the company. He confirmed key elements of prosecutors’ allegations: The company gave him free perks like an apartment and cars, he knew taxes were owed on the compensation, but neither he nor the firm reported it to the proper authorities and in fact deliberately concealed the expenses from accountants.

While Trump has famously turned on many in his orbit who have crossed him, the Trump Organization seems to see some value in keeping Weisselberg a company man. He testified that he remains on the organization’s payroll to the tune of $640,000 a year, despite agreeing to testify against his employer. Until last month, he continued to work as a senior adviser to the company, and is now on a paid leave of absence. He even celebrated his birthday party at Trump Tower just hours after finalizing his plea deal in August, complete with a cake.

The trial is just one of a host of legal troubles for the former, and would-be future, president. Here in New York, Trump and his children face a lawsuit from Attorney General Tish James, which led to the appointment this week of a monitor to oversee the Trump Organization. He did notch one win this week when a judge dismissed a lawsuit against him by his niece Mary Trump over a disputed inheritance.

The legal trouble will hang over Trump’s head as he mounts his latest presidential campaign. For his core supporters, it may not matter — there isn’t much evidence to contradict his claim that he wouldn’t lose their votes even if he shot someone in the middle of Fifth Avenue. But with many in the GOP already disgruntled with Trump over the disappointing midterm results, a criminal conviction for his company could be another deterrent to getting back on the Trump bandwagon.

Trump Organization's former Chief Financial Officer Allen Weisselberg, center, arrives to court, walks outside, surrounded by photographers and cameras.

Trump Organization's former Chief Financial Officer Allen Weisselberg, center, arrives to court, Tuesday, Nov. 15, 2022, in New York. | Julia Nikhinson/AP Photo

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What City Hall's reading

“ New York City Reaches Deal to Build Soccer Stadium in Queens ,” by The New York Times’ Dana Rubinstein and Ken Belson: “New York City officials have reached an agreement to build the city’s first professional soccer stadium, the centerpiece of a giant mixed-use development that would transform a long-underutilized waterfront section of Queens. The 25,000-seat stadium for the New York City Football Club is slated to rise on city land by 2027 in the Willets Point neighborhood of Queens, across the street from the right field foul pole of Citi Field, the home of the New York Mets, Mayor Eric Adams and the soccer team’s officials confirmed on Tuesday. The stadium would be the first significant major-league sports venue to be built in the city since 2012, and is set to be the focal point of a 23-acre project that includes a 250-room hotel and 2,500 units of housing.”

“ NYC budget balloons to $104 billion under Mayor Adams’ revised fiscal plan ,” by New York Daily News’ Michael Gartland and Chris Sommerfeldt: “New York City’s 2023 budget has grown to $104 billion — an increase of $3 billion when compared to the $101 billion spending plan Mayor Adams and the City Council agreed upon earlier this year. The city’s revised fiscal plan, which was outlined Tuesday in budget modification documents, remains balanced with the latest growth coming from federal funding that’s streamed in since July when the city’s original budget for 2023 was adopted. On Tuesday, officials from Adams’ administration touted $2.5 billion in savings it culled from finding efficiencies within the city’s vast bureaucracy and vowed to formally request $1 billion in reimbursements from the federal government for the migrant crisis the city has been facing. But they also acknowledged that three city agencies did not meet their savings goals: the NYPD, FDNY and the Department of Sanitation.”

“ Taxi Fares Are Going Up 23% in New York City ,” by Bloomberg’s Skylar Woodhouse: “New York City cab riders will see a 23% increase in metered fares, the first hike since 2012, following a Tuesday vote from the city’s Taxi and Limousine Commission. Passengers will also face an increase in rush hour and overnight surcharges, and airport flat rates, according to a document released by the TLC. The increases will also affect per-mile and per-minute rates for Uber Technologies Inc. and Lyft Inc. and are expected to go into effect before year-end, the TLC said. ‘Raising taxi fare rates and minimum pay for high-volume drivers is the right thing to do for our city,’ TLC Commissioner David Do said in a statement.”

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WHAT ALBANY'S READING

New York made $11B in improper unemployment payments during Covid-19 pandemic, audit finds , by POLITICO’s Shannon Young: New York’s outdated unemployment insurance system likely contributed to at least $11 billion in improper payments during the Covid-19 pandemic, an audit from state Comptroller Thomas DiNapoli found. The report Tuesday examined claims made through the state Department of Labor’s unemployment insurance system from January 2020 to March 2022 — a period in which applications skyrocketed due to pandemic-related job losses. It found that the state’s failure to replace the outdated system as long advised, coupled with “ad hoc workarounds,” led to “weakened oversight and ultimately contributed to an estimated billions of dollars in improper payments.” The flood of unemployment claims was unprecedented, leading to fraud and abuse and an overwhelmed agency, DiNapoli said.

“ Federal appeals court reinstates key provisions of New York concealed carry law ,” by Spectrum’s Nick Reisman: “A three-judge panel on Tuesday moved to reinstate the enforcement of multiple provisions of New York's concealed carry law amid an ongoing legal challenge that has turned into a seesaw battle over injunctions. The development at the U.S. Court of Appeals for the Second Circuit means the enforcement of the law which took effect in September placing new requirements on obtaining a concealed carry license in the state as well as limitations on where guns can be taken in public will go back into effect during the legal challenge. U.S. District Court Judge Glenn Suddaby on Nov. 7 placed a temporary injunction on several aspects of the measure's enforcement. The ruling by the higher appeals court, however, places an emergency interim stay on Suddaby's injunction."

“ Buffalo police regularly use racial slur for Black people, officials testify ,” by Buffalo News’ Charlie Specht and Matthew Spina: “Buffalo Police regularly use racial slurs when referring to Black members of the public. The city’s officers receive little to no training on racial bias and profiling. And when a citizen comes forward to make a complaint of racial discrimination, officers and supervisors don’t always forward the complaint to internal affairs investigators. Those are the takeaways from the sworn testimony of five retired members of the Buffalo Police Department who were deposed earlier this year as part of a federal lawsuit claiming discriminatory policing against people of color on the East Side.”

“ NY opioid panel, governing millions of settlement dollars, criticized for conflict of interest ,” by WNYC’s Caroline Lewis: “The advisory board is recommending spending on programs to reduce the harms of opioid use as well as investments in services such as treatment, housing and prevention. The report suggests prioritizing programs that integrate services for mental health and addiction, since the two frequently go hand in hand. But some of the recommendations are controversial, according to harm reduction groups serving drug users across the state. They are pushing back on a proposal to set aside $8 million for New York MATTERS, an electronic treatment referral network that was founded by a member of the Opioid Settlement Fund Advisory Board.”

#UpstateAmerica: A Burnt Hills man does not think he should be investigated for being in possession of court files he found on a dark road one night. “I was being a good Samaritan. It’s coming back to bite me in the a--.”

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CAMPAIGN MODE

Williams, a Republican, declared winner of open House seat in Central New York , by POLITICO’s Marie J. French: Republican Brandon Williams, a political newcomer from Texas who beat out an establishment-backed candidate in the primary, has won a competitive House race in the Syracuse area. Williams leads Democrat Francis Conole by about 3,000 votes, 50.8 percent to 49.2 percent, in the 22nd Congressional District. The Associated Press called the race for Williams late Monday. Williams had declared victory a week ago on election night, but Conole called for all votes to be counted. Conole’s campaign did not respond to a request for comment Tuesday. Absentees are still being tallied, as well as emergency and provisional ballots.

“ Stefanik elected to GOP conference chair again ,” by North Country Public Radio’s David Sommerstein: “House Republicans elected North Country Congresswoman Elise Stefanik to serve her second term as GOP Conference Chair Tuesday. Stefanik will return to the role as Republicans appear likely to take control of the chamber. In a closed-door secret ballot, Stefanik defeated freshman Congressman Byron Donalds of Florida 144-74, according to The Hill in Washington. Stefanik would take the fourth-highest ranking spot in her caucus if Republicans win control of the House of Representatives, after majority whip, majority leader, and with Rep. Kevin McCarthy voted to Speaker-elect.”

“ How Sean Maloney lost — and Mike Lawler won — in the Hudson Valley ,” by Times Union’s Lana Bellamy and Phillip Pantuso: “U.S. Rep. Sean Patrick Maloney woke up on the morning of Election Day and went for a run in Cold Spring, his home in the district he’s represented for a decade. Afterward, he voted with his husband, then stopped at his campaign’s Yorktown field office, where he made a few last-minute get-out-the-vote calls and gave a rally speech to volunteers working down to the wire to get their candidate elected to a sixth term in Congress. Across the Hudson River, in Nyack, more volunteers were working with the Rockland County Democrats to prepare an election night watch party. But Maloney would not be there. Instead, he boarded a flight around 3:30 p.m. bound for Washington, D.C., and the headquarters of the Democratic Congressional Campaign Committee, the fundraising arm of House Democrats, which Maloney has chaired the past two years.”

“ Don’t blame the maps: analysis suggests different districts wouldn’t have helped Dems much ,” by City & State’s Jeff Coltin and Rebecca Lewis: “There’s more than enough blame to go around, after New York Democrats’ uniquely weak performance in the Congressional midterm elections. Among those taking heat: state Sen. Michael Gianaris, who oversaw the process that got Congressional maps favorable to Democrats thrown out, and replaced with less friendly ones drawn by a special master. But a preliminary analysis of the results shows that the special master’s district maps probably did not play as much of a role in Democrats’ losses as some have assumed. The party may have held just one more seat if state legislators and the governor had settled for a less partisan map.”

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AROUND NEW YORK

— Protesters called for an increase in the minimum wage from $15 to $20.

— A judge in Central New York denied a last-minute challenge to a new state law and ruled that more than 1,200 affidavit ballots could be counted.

— New York will get $116 million from Walmart’s opioid settlement.

— The state is auctioning off hundreds of decommissioned Covid response items like HVAC systems, ambulances and generators.

— All of Greene County will finally get broadband .

— New York City cut the hours of a busway in Jamaica.

— The state is receiving $21 million from the federal government to help resettle Ukrainian refugees.

— Ariana Grande’s brother was violently mugged in Manhattan.

— 9/11 advocates asked the CDC not to renew a contract with a company providing health services for first responders because of poor performance.

— Food safety inspectors found mold at the Starbucks Reserve Roastery in Chelsea despite the company’s denials.

SOCIAL DATA BY DANIEL LIPPMAN

HAPPY BIRTHDAY: Elizabeth Drew … CNN’s Fredreka Schouten … David Peikin of Bloomberg Industry Group … Caroline Emch … (was Tuesday): Fred Messner of Keller Postman

MAKING MOVES — Matthew Windrum is now a vice president at Kasirer. He was previously director of government relations at Western Governors University. … Bryan Lesswing is moving back to the Hochul administration as a senior comms adviser after working on the campaign. … Theodore Johnson has joined New America as a senior adviser to executive leadership. He’ll also head up the organization’s US@250 Initiative. Johnson was previously the senior director of the Fellows Program at the Brennan Center for Justice at the NYU School of Law.

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Real Estate

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“ Julius’ Bar landmarking push get unanimous support at hearing ,” by NY1’s Patrick Adcroft: “Julius’ Bar, the oldest gay bar in the five boroughs, took another step toward becoming a New York City landmark on Tuesday as nearly a dozen people testified in favor of historic designation for the site. Experts, LGBTQ activists and the bar’s owner threw their support behind the push to landmark the 19th century building during a New York City Landmarks Preservation Commission hearing Tuesday morning. The bar on West 10th Street in Greenwich Village served as the site of a pivotal protest in the LGBTQ rights movement three years before the 1969 Stonewall Uprising.”

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