(CNN) –– Allen Weisselberg, the former chief financial officer of the Trump Organization, is expected to plead guilty Thursday to a 15-year tax fraud scheme, a person familiar with the matter said. However, the source said Weisselberg will not sign a cooperation agreement to help New York prosecutors in their criminal investigation into the real estate company’s finances.
Weisselberg, a longtime employee and fiercely loyal to former President Donald Trump’s company, is in advanced talks to plead guilty to the indictment, the person said. The judge in the case set a hearing for Thursday morning.
Under the terms of the deal, which is still being finalized, Weisselberg would receive a five-month prison sentence but would serve about 100 days behind bars, the person said. Weisselberg faced up to 15 years in prison.
Now, Weisselberg will not accept a cooperative figure, the person said. Although he added that he would testify at trial if the case moves forward and the Trump Organization does not reach a plea agreement. The judge set the trial for October 24.
The Manhattan District Attorney’s Office announced the charges last year and sought to win Weisselberg’s cooperation against the former president in a broader criminal investigation into the accuracy of the Trump Organization’s financial statements. Despite the pressure, Weisselberg did not agree to “change sides” or cooperate against Trump or his children. No charges have been filed in that investigation.
A spokesman for the prosecutor’s office could not immediately be reached for comment.
The accusations against the Trump Organization
The Trump Organization faces 10 counts and Weisselberg faces 15 felony counts in connection with an alleged scheme dating back to 2005 “to compensate Weisselberg and other Trump Organization executives in a manner that was ‘outside the manuals.'”
Prosecutors say Weisselberg 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 Merchan denied motions by Weisselberg and the Trump Organization to dismiss the tax charges at a hearing last week.
Weisselberg’s guilty plea would come amid Trump’s dramatic legal period. Precisely, last week the former president invoked his right to the Fifth Amendment during a statement in the framework of the investigation by the New York attorney general. Thus, Trump refused to answer hundreds of questions about the financial statements of the Trump Organization.
In turn, that came two days after the FBI executed a search warrant at Trump’s private Florida residence, Mar-a-Lago. This is part of a criminal investigation into the handling of presidential records, including classified documents.