Trump directly implicated himself in the Trump Organization tax investigation with an offer to pay school fees, report says

• Trump has been connected to the Trump Org. tax investigation for the first time, per The Daily Beast.

• A witness reportedly told investigators that Trump once offered to personally guarantee perks in lieu of taxable salary.

• Trump has not been charged by the Manhattan DA so far.

• See more stories on Insider's business page.

A cooperating witness told Manhattan prosecutors last month that former President Donald Trump offered to personally pay for perks in place of a taxable income, The Daily Beast reported, citing sources who heard the conversation. The development directly implicates Trump in the criminal tax scheme that his company and its longtime CFO, Allen Weisselberg, were indicted for.

The Manhattan district attorney's office is currently investigating whether Trump Organization executives illegally took benefits without paying taxes on them, and whether the company broke tax, insurance, and bank fraud laws by misrepresenting property values.

Weisselberg was accused of participating in a scheme of corporate gifts in lieu of higher salaries, thereby avoiding paying a chunk of taxes for both the company and its employees, according to the indictment.

Two unnamed sources told The Daily Beast that they heard an interview between investigators and the witness, Jennifer Weisselberg, who is Allen Weisselberg's former daughter-in-law, in which she said that Trump personally guaranteed one of those perks. The outlet did not say how the sources were connected to the investigation.

The agreement was made in January 2012 during a meeting at Trump Tower that included Trump, Jennifer Weisselberg, her then-husband Barry, and Allen Weisselberg, The Daily Beast reported. Barry Weisselberg is also a Trump Organization employee.

Jennifer Weisselberg is said to have told prosecutors that Trump said he would pay for her and Barry's children's education instead of giving Barry a raise, the report said.

According to The Daily Beast, Jennifer Weisselberg told prosecutors that at one point in the 2012 meeting, Trump turned to her and said: "Don't worry, I've got it covered."

Investigators also asked Weisselberg, who is in the middle of divorce proceedings, if Trump was personally involved in the alleged scheme, and Weisselberg said he was, sources told The Daily Beast.

The Manhattan DA's office charged the Trump Organization and Allen Weisselberg earlier this month with 15 felony counts including scheme to defraud, conspiracy, grand larceny, tax fraud, and falsifying business records.

The Manhattan DA's investigation into the Trump Organization's tax affairs has so far not named the former president himself as a suspect in its indictment. Allen Weisselberg and the Trump Organization both pleaded not guilty in the case, which Trump has also denounced as a "witch hunt."

But there are more filings to come that could potentially involve him, as Insider's Sonam Sheth has reported.

Alan Futerfas, the Trump Organization's lawyer, did not provide a comment to The Daily Beast. Liz Harrington, Trump's spokesperson, did not immediately reply to Insider's request for comment.

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