According to Reuters, the indictment against the Trump Organization and CFO Allen Weisselberg of the group is the first in a nearly three-year investigation by the Manhattan Cyrus Vance District Police, which New York Attorney General Letitia James joined in May.
The investigation could undermine the Trump Organization's ties with banks and business partners, and complicate the political future of former President Donald Trump.
Donald Trump himself has not been charged and reiterated that the investigation is a political "witch hunt". Vance and James are members of the Democratic Party.
Prosecutors have accused Trump Organization and Weisselberg of defrauding tax authorities by giving "off-the- books" benefits to the company's executives since 2005.
Weisselberg, 73, has been charged with concealing $1.76 million in income, including rental in Manhattan, two Mercedes-Benz and tuition for family members, in which Trump personally signed a check for the tuition fee.
Prosecutors said this allowed Weisselberg, who worked for Trump for about 48 years, to evade about $900,000 in taxes and receive $133,000 in tax refunds that he did not deserve.
"To put it bluntly, this is a large-scale and bold illegal payment plan. This is not a standard practice in the business community, said Carey Dunne District Attorney General at the defendants trial at the Manhattan Criminal Court.
The indictment includes 15 charges of accusing the defendants of plotting fraud, tax fraud and distorting business records.
Weisselberg was also charged with theft, with a maximum sentence of 15 years in prison. The Trump Organization could face fines and other sanctions if convicted.
If the allegations in the indictment are correct, it is tax evasion, said Daniel Hemel, a tax law professor at the University of Chicago. It's hard to believe this could happen."
The allegations on July 1 could increase the pressure on Weisselberg to cooperate with prosecutors.
In a separate statement, the Trump Organization accused Vance of using Weisselberg as a good kid in an attempt to harm the former president. "This is not justice; this is politics," the group said in a statement.
The Trump Organization operates hotels, golf courses and resorts around the world. Before entering the White House in January 2017, Trump had put a trust fund in charge of the corporation under the supervision of his sons Donald Jr and Eric, as well as Weisselberg.
It is not yet clear what role former President Trump will play in the group.
