Trump Organization found guilty in NYC tax fraud investigation

Yahoo Finance columnist Rick Newman discusses the news that the Trump Organization was found guilty of tax fraud in a New York City courtroom on Tuesday, and also highlights the Senate runoff between incumbent Raphael Warnock and Herschel Walker.

Video Transcript

SEANA SMITH: We also want to get to some breaking news. The Trump Organization has been found guilty in tax fraud scheme, have been accused of providing off the book of benefits to some executives. Rick Newman joining us on set for that. And Rick, I guess, what can you us about this and just your reaction to this?

RICK NEWMAN: Well, this has been going on for a while. Now this is important because this is not a case attempting to prosecute Donald Trump himself. And in fact, the Manhattan District Attorney Alvin Bragg caught a lot of flak for-- I mean, he hasn't officially withdrawn his inquiry into Trump personally, but he's apparently not pursuing it. So they were going after the company, instead. And a jury today found the company guilty on, I believe, all of 17 counts of tax fraud and other things related to tax fraud.

So the company is going to pay a fine. Nobody's going to go to jail for this. But in terms of the significance for Donald Trump himself, I mean, I think-- I mean, it seems very clear. The Trump fever is breaking, and things are beginning to go against Donald Trump, one after another. So he's facing bigger litigation than this. He is facing personal litigation, potentially, or prosecution, I guess I should say. One is that potential election fraud case in Georgia.

The other is whatever the Justice Department is pursuing with regard to all those classified documents found at Mar a Lago, and he was not supposed to have those. Looked like they were going to become criminal prosecutions, and just in the way some of the findings, the judge's findings and things are going in those cases, not working in Trump's favor. So he is facing an increasing amount of legal risk.

And for everybody who said Teflon Don, he always gets off the hook, well, he just failed to get off the hook on this one, or at least, his company did. So a lot of people are going to be wondering, is this the start of something bigger?

DAVE BRIGGS: Yeah, and a couple of days ago, calling to essentially trash the Constitution when it comes to elections and throw out the previous election. But he could take another hit in Georgia. And you mentioned Georgia there because Herschel Walker is his guy. His candidate's had a tough time, in particular, in the Senate. What's the latest there in the Georgia runoff?

RICK NEWMAN: So we think we'll know the results of this tonight. People have been doing early voting for several days. Polls close, I think, at 7 o'clock tonight. It's just the two candidates. So whoever gets more than 50% is going to win the polls.

Now, we've learned not to trust the polls, but the polls suggested Raphael Warnock, the incumbent Democrat, has an edge. And this gets to turnout, who actually votes in a runoff election. It's different from who votes in a regular election. So if this goes as expected, Warnock will probably win by a couple of percentage points.

And there, again, would be another Trump endorsed candidate who, sure, he can sail through the primary election when Republicans say, yeah, that's our guy. But he can't get elected in a general election. I mean, that has clearly been-- that's been the problem with the Trump imprimatur, is these fairly extremist candidates just cannot get elected in a general election. So Trump's endorsement record is pretty poor in 2022. So momentum is clearly going against Trump. And I mean, he is running for president in 2024. It's looking like a very limp performance so far.

SEANA SMITH: It is, and Rick, going back, if we do see the Democrats take one more seat so they will have the majority of 51 to 49, comparing that to 50/50 with the vice president as a tiebreaker, how significant is that scenario?

RICK NEWMAN: It is significant. So people might think, well, if you can vote for legislation 51 to 50, what's the difference, 51 to 49? There is a difference. Now, we're not talking about getting much Democratic legislation passed during the next two years because Republicans will control the House, and they will be able to block it.

But when you have 51 to 49, the big thing to watch for is appointment of federal judges, and that anybody President Trump might-- excuse me, President Biden might want to appoint to his cabinet or to senior political jobs, and it just is easier to do 51 to 49. So the Democrats can afford to lose one vote. So think Joe Manchin, the West Virginia Democrat who was often the lone spoiler, saying-- being the one guy who wouldn't approve. Well, they can afford to lose Joe Manchin's vote. It would be for things like appointees.

Now, there's Kyrsten Sinema, who also kind of lined up with Manchin on some things. So they will not have-- they can't afford to lose two votes. But they can lose one vote and still get some things passed. And then there are a few other sort of insider things that work to the Democrats' favor if you have a legitimate 51/49 majority. For example, you control all the committees instead of what they've been doing with 50/50, is power sharing.

So that has to do with subpoenas, the people they can call up to testify, for example, in the hearings they can schedule. So when it's 50/50, to schedule a hearing, Republicans have to-- they need some Republicans to agree on those committees. And if they have 51/49, they do not have to have Republicans in agreement. And that's important for things such as January 6 investigation.

So the House Committee on that is going to end its work because Republicans are gonna shut it down. But in the Senate, if they choose, they can continue that work if they have 51 to 49 because Republicans don't get a say. If it's 50/50, Republicans do get a say, and they can block it.

SEANA SMITH: Safe to say, a lot is on the line in Georgia today. Rick Newman, as always, thanks so much--

RICK NEWMAN: Thanks, guys.

SEANA SMITH: --for hopping on here.