(CNN) –– Alan Weiselberg, former director Finance He pleaded guilty Thursday to the Trump Organization’s 15-year tax fraud scheme, a person familiar with the matter said. However, Weiselberg will not sign a cooperation agreement to assist New York prosecutors in a criminal investigation into the real estate company’s finances, the source said.
Weiselberg, a longtime employee and staunch loyalist of former President Donald Trump’s company, is in advanced negotiations to plead guilty to the indictment, the person said. The judge adjourned the case till Thursday morning.
Under the terms of the yet-to-be-finalized deal, Weiselberg will receive a five-month prison sentence but serve about 100 days in jail, the person said. Weiselberg faced up to 15 years in prison.
Now, Weiselberg won’t accept a co-op, the person said. He said he would testify at trial if the case moves forward and the Trump Organization doesn’t reach a plea deal. The judge adjourned the hearing to October 24.
The Manhattan district attorney’s office announced the charges last year and sought to win Weiselberg’s cooperation against the former president in a broader criminal investigation into the accuracy of the Trump Organization’s financial statements. Despite the pressure, Weiselberg did not “switch sides” or cooperate against Trump or his children. No charges were filed in that investigation.
A spokesman for the prosecutor’s office could not immediately be reached for comment.
Allegations against the Trump Organization
The Trump Organization faces 10 counts and Weiselberg faces 15 felony counts in connection with a 2005 “off the books” scheme to pay Weiselberg and other Trump Organization executives.
Prosecutors say Weiselberg failed to pay taxes on $1.7 million in income, including luxury perks such as a Manhattan apartment, a pair of Mercedes-Benz cars and private school tuition for two family members.
The decision comes after Judge Juan Merson denied motions by Weiselberg and the Trump Organization to dismiss the tax charges at a hearing last week.
Weiselberg’s guilty plea comes amid Trump’s dramatic legal season. Exactly, last week the former president asserted his Fifth Amendment right During a statement in the framework of the New York Attorney General’s investigation. As a result, Trump refused to answer hundreds of questions about the Trump Organization’s financial statements.
That, in turn, came two days after the FBI executed a search warrant at Trump’s private Florida home, Mar-a-Lago. It is part of a criminal investigation into the handling of presidential records, including classified documents.
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