| | | | |  | | By Erin Durkin and Anna Gronewold | A Manhattan jury will start deliberating this morning on whether to convict former President Donald Trump's company of criminal tax fraud. If it's not a hard call, a verdict could come as soon as today. At issue: Is the Trump Organization criminally liable for a years-long tax fraud scheme where some of its executives collected off-the-books perks that were not taxed? There's no dispute that the tax fraud occurred. Former Chief Financial Officer Allen Weisselberg pleaded guilty, testimony at the trial extensively corroborated that benefits like apartments and cars were provided without being reported, and Trump lawyers have acknowledged as much. The verdict will hinge on whether the jury decides the scheme was carried out at least in part to benefit the company. On Friday, prosecutors alleged that Donald Trump himself knew about a key aspect of the scheme. "Donald Trump is explicitly sanctioning tax fraud," Assistant District Attorney Joshua Steinglass said in closing arguments. He said Trump signed a document in which an executive, Matthew Calamari, asked for his salary to be reduced by the amount of the perks he was getting. The defense objected to the comment, and the judge sustained the objection, but the jury can't unhear it. "This whole narrative that Donald Trump was blissfully ignorant is just not real," Steinglass said. The Manhattan DA argues that the Trump Organization saved money on payroll taxes and was able to pay executives less because of the untaxed compensation. They say the arrangement was not limited to Weisselberg, but also extended to Calamari and general counsel Jason Greenblatt. In their own closing arguments , defense lawyers pinned the blame entirely on Weisselberg. "We are here today because of one reason and one reason only: The greed of Allen Weisselberg," said defense attorney Susan Necheles. In technical terms, a conviction depends on finding Weisselberg and his co-conspirators were acting "in behalf of" the company – which confusingly doesn't mean the same thing as "on behalf of," and has been defined to mean he was acting with some intent to benefit the firm. The defense says he was just out for himself, citing his own testimony that he acted for his personal gain. As another defense lawyer put it over and over: "Weisselberg did it for Weisselberg." Jurors will decide who's right, with the company facing $1.6 million in fines if convicted. IT'S MONDAY. Got tips, suggestions or thoughts? Let us know ... By email: EDurkin@politico.com and agronewold@politico.com , or on Twitter: @erinmdurkin and @annagronewold WHERE'S KATHY? Making a downtown revitalization announcement in Rochester. WHERE'S ERIC? Making a health-related announcement, observing a safety pilot at a public school, meeting the local Brooklyn champions of the USA National Dodgeball team, speaking at a NYC & Company fundraising gala, and speaking at a Brooklyn Bar Association dinner.
| | | | POLITICO APP USERS: UPGRADE YOUR APP BY DECEMBER 19! We recently upgraded the POLITICO app with a fresh look and improved features for easier access to POLITICO's scoops and groundbreaking reporting. Starting December 19, users will no longer have access to the previous version of the app. Update your app today to stay on top of essential political news, insights, and analysis from the best journalists in the business. UPDATE iOS APP – UPDATE ANDROID APP . | | | | | |  | WHAT CITY HALL IS READING | | Dem City Council member planning to join GOP , by POLITICO's Sally Goldenberg and Joe Anuta: A member of the City Council who has ties to Hakeem Jeffries — the soon-to-be House Democratic leader — is prepared to switch his party affiliation to Republican, three people with knowledge of the matter told POLITICO. Ari Kagan, who represents a swing district in Southern Brooklyn, is planning to announce the change Monday afternoon outside City Hall. … Switching parties means that Kagan would have the chance to face a fellow incumbent in a general election rather than a primary — a meaningful distinction as the southern portion of the borough has increasingly voted Republican in recent years. Lawmakers push for $2.2B for avert MTA's fiscal cliff, improve service , by POLITICO's Danielle Muoio Dunn: Democratic Gov. Kathy Hochul eked out a general election win thanks in part to an 11th-hour boost from the progressive Working Families Party. Now the bill is coming due, and a coalition of 14 Democratic state senators is asking her to set aside $2.2 billion to prop up the faltering Metropolitan Transportation Authority. "The governor is starting her first full term, and progressives helped her get there," state Sen. Jessica Ramos, one of 12 WFP members who signed the letter, said in an interview. "I'm hoping that the budget this year strays from the austerity that we saw in the past city budget." " Mayor Adams' war on rats hits home: His Brooklyn rowhouse is ticketed for rodent infestation ," by New York Daily News' Ellen Moynihan and Michael Gartland: "Mayor Adams' war on rats has hit close to home. Adams, who's made no secret of his hatred for rodents and is actively seeking a rat czar to eradicate New York City's growing problem, has an unpaid summons since May for a rat infestation at the Bedford Stuyvesant, Brooklyn, rowhouse he owns. The summons, which carries a maximum penalty of $600, is still outstanding, according to a Daily News review of public records." Major questions linger days after Adams announces new mental health policy , by POLITICO's Sally Goldenberg: Days after Mayor Eric Adams ordered city workers to transport more mentally ill people to hospitals against their will, one major question remains: What criteria will cops and health workers use to justify the removals? The mayor and his deputies say their employees will be trained to identify individuals whose psychiatric conditions leave them unable to meet their own "basic needs." But they have yet to detail just how they'd assess those needs — or provide insight into the pending training of police officers, Emergency Medical Technicians and Department of Health and Mental Hygiene staffers tasked with this job. — " How Hospitals Respond When Mentally Ill People Come in From the Streets ," by The New York Times' Joseph Goldstein " Jumaane Williams' NYC home entering final stages of foreclosure ," by New York Post's Jon Levine: "Bank of America is demanding a Brooklyn judge force Public Advocate Jumaane Williams to pay up on the more than $600,000 he owes on a Brooklyn rental property, or put the property on the auction block, according to the latest filings in a years-long foreclosure battle." ADAMS ABROAD, PART 2 — Mayor Eric Adams took in soccer matches, toured the World Cup facilities and met the emir of Qatar during his trip to Doha Friday and Saturday — part of a trip abroad that also included an antisemitism conference in Greece. The mayor said his biggest takeaway ahead of New York and New Jersey's turn to be among the hosts for the 2026 event was having adequate transit and a way to manage spectators. "We must also just make it easy, have a lot of volunteers to help in moving people through the transit system to get to the Giants Stadium. Having express bus routes, movement of people is crucial," Adams said during a call from Qatar. "One takeaway: having real fan fest locations where fans can let off some steam after the game in a well-organized way. They did an excellent job." The mayor said he sampled the local nightlife and took in two matches, including the United States' loss to the Netherlands. "This city has really grown a lot, with many fabulous restaurants and locations where you can go and enjoy even after the game," he said. "And I took full advantage of that as well." — Joe Anuta
| | WHAT ALBANY'S READING | | Tish James' top New York aide resigns following harassment probe , by POLITICO's Anna Gronewold: New York Attorney General Tish James' top aide stepped down Friday after an investigation into claims of sexual harassment. James' office confirmed her chief of staff Ibrahim Khan resigned after an outside probe into accusations against him. "The Office of Attorney General has protocols in place to thoroughly investigate any allegation of misconduct," a spokeswoman for the office said in a statement. "The office takes these matters with the utmost seriousness and this situation is no different. An independent, impartial investigation was conducted, and the employee has since resigned." — "The attorney general's office says that when allegations first surfaced against Khan, they opted to hire an outside law firm on Oct. 4 to conduct an investigation. That firm, Littler Mendelson, substantiated at least one of those claims. By law, outside contracts of more than $50,000 must go to the New York State Comptroller's office for approval. Jennifer Freeman, a spokesperson for State Comptroller Tom DiNapoli, said on Friday night that 'There is no contract before us for approval.'" from NY1's Zack Fink — In 2017, the New York Post reported that a former worker in the city public advocate's office accused Khan of drugging and sexually assaulting her during a 2014 holiday party. According to the Post, the alleged assault was reported to the NYPD and Manhattan DA's Office in 2017, but no charges were brought. — Former governor Andrew Cuomo's spokesman — no fan of Tish or her work — has thoughts. " New York Health Commissioner Mary Bassett to resign ," by Spectrum's Nick Reisman: "New York state Health Commissioner Mary Bassett will resign on Jan. 1, marking a departure of the highest-profile member of Gov. Kathy Hochul's cabinet before she starts her new four-year term. In a statement, Bassett said she plans to return to the Harvard Chan School of Public Health. 'This was a very difficult decision. I have tremendous admiration for the work our staff has done during a very difficult year responding to COVID, mpox, polio and the day-to-day challenges of protecting New Yorkers' health,' she said." " To Implement a New Law, Prisons Likely Broke Another ," by New York Focus' Chris Gelardi: "The scrutiny relates to the Humane Alternatives to Long-Term (HALT) Solitary Confinement Act, which went into effect across the state at the end of March. The law places strict limits on how prisons and jails can use solitary confinement. ... But, as New York Focus has reported, the prison department has adopted temporary internal policies that violate several foundational aspects of the law, holding thousands of people in unlawful conditions as a result. … On Friday, the NYCLU sent a letter to the prison department calling out its 'ongoing failure, in violation of state law,' to address public comments. The letter demanded that the agency come up with a timeline to address the scrutiny by December 9." " School leaders envision high school without mandatory Regents exams ," by Times Union's Kathleen Moore: "A 144-year-old rite of passage for New York high school students may be coming to an end, and superintendents can hardly wait. Many school leaders statewide are envisioning a brighter future without mandatory Regents exams, now that the state Board of Regents has said it is willing to consider changing high school graduation requirements. A committee is expected to make a recommendation next year, potentially upending a New York tradition for college-bound students that began in 1878." #UpstateAmerica: Chambers of commerce can apparently have mascots and the Bethlehem Chamber wants you to suggest names for its new polar bear.
| | | | JOIN WEDNESDAY FOR A POLITICO DISCUSSION ON THE NEW TRAVEL EXPERIENCE : Americans are now traveling in record numbers — but the travel experience has changed drastically in recent years, not always for the better. What lessons can we learn from the pandemic and different responses around the globe? And in the face of a possible recession, what will help the travel industry remain vibrant and deliver jobs? Join POLITICO on Dec. 7 for "The Travel Experience Redefined" to discuss these questions and more. Breakfast and coffee will be provided. REGISTER HERE . | | | | | | | FROM THE DELEGATION | | " Many NY Democrats started with enrollment advantages. They melted away ," by Times Union's Joshua Solomon and Alexandra Harris: "Democrats lost in seven of the 10 congressional districts where they held an enrollment advantage by 100,000 or fewer voters, helping Republicans to 'flip' seats and win a razor-thin margin in the U.S. House of Representatives. … In three of those 10 races, more Republicans turned out to the polls than Democrats did." " New York City, once neglected by Washington, stands to benefit from Schumer and Jeffries as Congressional leaders ," by New York Daily News' Tim Balk: "Beginning in the 1970s, Sen. Daniel Patrick Moynihan would push out annual reports describing an imbalance in the amount of money New York State paid into and received from federal coffers. The late Moynihan, a Democrat, grumbled that New York was rendered a donor state, paying more than it got back. The reports, carried on recently by state Comptroller Thomas DiNapoli, told the same story year after year. But then, in this year's report, the math flipped: New York received more money than it paid in the 2020 fiscal year, according to DiNapoli's numbers."
| | AROUND NEW YORK | | — NYPD Commissioner Keechant Sewell said in a speech that she has faced belittling sexism . — State Police arrested 213 people on impaired driving charges over the Thanksgiving weekend. — "Druggings, Deaths and Robberies Put New York's Gay Community on Edge " — Schumer says the feds should be ready to support New York health systems amid an RSV surge. — A large fire in Hamilton Heights injured nine people and displaced dozens of families. — A stretch of Fifth Avenue will be closed to cars for the first of three Sundays around the holiday season. — The state is chopping down more than 250 trees to make way for the expansion of the Long Island Expressway in eastern Queens. — A bill proposed in the state Legislature would repeal a law making it illegal for people with HIV to have sex. — A judge criticized the Manhattan DA for dropping charges against a woman accused of killing her allegedly abusive husband. — The NYPD announced a slew of changes in police leadership.
| | SOCIAL DATA BY DANIEL LIPPMAN | | HAPPY BIRTHDAY: Axios' Roy Schwartz … NYT's Mike Grynbaum … Calvin Trillin … Pascal Levensohn … Joanna Stern … NBC's Billy Koch … Moira Mack Muntz … Alex Simon … Alex Traub … Mindy Greenstein … Adam Cassella … (was Sunday): CNN's Suzanne Malveaux … CNBC's Whitney Ksiazek … Jennifer Taub … Jackie Kucinich … Sam Adelsberg … Ara Cohen … … (was Saturday): NBC's Ali Zelenko … The White House's Jesse Lee … Mandi Critchfield of the Senate Finance Committee … CBS' Miles Doran … Elizabeth Edelman … David K. Shipler ... Jeffrey Dinowitz ... Joshua M. Karlip ... Stephen T. Levin ... (was Friday): Nancy Haberman … Burton Citak ... Aaron Rakeffet-Rothkoff ... Louise Mintz Sunshine (h/ts Jewish Insider) MAKING MOVES — Jennifer Fermino is joining the New York Public Library as VP for communications and marketing. She was previously at Moonshot Strategies and was both a reporter and communications consultant in City Hall. … Matt Sollars is joining Anat Gerstein, Inc. as an associate vice president. He was previously director of public relations at the city Campaign Finance Board. MEDIAWATCH — Josh Greenman is joining urban policy journal Vital City as managing editor. He has been editorial page editor at the New York Daily News. SPOTTED on Saturday at the annual Paramount brunch at the Hay-Adams Hotel kicking off Kennedy Center Honors festivities: Sens. Joe Manchin (D-W.Va.), Amy Klobuchar (D-Minn.), Patrick Leahy (D-Vt.), Ben Cardin (D-Md.), Jacky Rosen (D-Nev.) and Roy Blunt (R-Mo.), Reps. Pete Aguilar (D-Calif.), Joyce Beaty (D-Ohio), Lou Correa (D-Calif.), Darrell Issa (R-Calif.) and Linda Sanchez (D-Calif.), Bob Bakish, DeDe Lea, Jack Sussman, Neeraj Khemlani, Mark Lima, Norah O'Donnell, Margaret Brennan, Robert Costa, Abby Blunt, Tammy Haddad, Carol Melton, Becca Glover, Kevin Latek and Dan Meyers, Bob Barnett and Rita Braver, Major Garrett and Shawna Thomas.
| | Real Estate | | " Police shut down suspected brothel in Koeppel-owned Midtown East building ," by Crain's New York Business Natalie Sachmechi: "Following an undercover sting operation, the New York Police Department has raided and shut down a massage parlor allegedly operating as a brothel in the ground-floor commercial space of a Midtown East building owned by landlord William Koeppel, Crain's has learned. According to a complaint filed last week by the city against the building and its owner, between July 14 and July 26, undercover police officers were offered sexual favors in exchange for money three times at the massage parlor, Beauty Plus, located at 346 E. 52nd St." | | | | Follow us on Twitter | | | | Subscribe to the POLITICO Playbook family Playbook | Playbook PM | California Playbook | Florida Playbook | Illinois Playbook | Massachusetts Playbook | New Jersey Playbook | New York Playbook | Ottawa Playbook | Brussels Playbook | London Playbook View all our political and policy newsletters | | Follow us | | | | |
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