Million-dollar fine imposed on Trump organizations for long-standing tax fraud scheme

Six years of Trump's tax returns released 3:57

(CNN) --

Two Trump organizations were fined $1.6 million, the maximum possible penalty, by a New York judge on Friday for running a decade-old tax fraud scheme, a symbolic moment because it's the only sentence for a criminal case that has approached the former president of the United States, Donald Trump.

The two Trump entities, The Trump Corp. and Trump Payroll Corp., were convicted last month of 17 felony charges, including tax fraud and falsifying business records.

The real estate business is not at risk of being dismantled because there is no legal mechanism to dissolve the company.

No individual will go to jail based on the verdict of the jury.

However, a felony conviction could affect the Trump Organization's reputation and ability to do business or obtain loans or contracts.

Trump and his family were not charged in this case, but prosecutors repeatedly mentioned the former president during the trial about his connection to untaxed benefits granted to certain executives, including company-financed apartments, car leases and personal expenses.

A prosecutor said Trump "explicitly sanctioned" tax fraud.

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Nicholas Gravante, attorney for former Trump Organization executive Allen Weisselberg, leaves Manhattan Criminal Court after his clients' sentencing hearing on January 10, 2023 in New York City.

(Credit: Michael M. Santiago/Getty Images)

Earlier this week, Allen Weisselberg, longtime chief financial officer of the Trump Organization, was sentenced to five months in prison as part of a deal he reached with prosecutors.

Weisselberg pleaded guilty to 15 felony charges related to the tax fraud scheme and agreed to testify truthfully against the company at trial.