On Monday's edition of CNN's "The Situation Room," chief legal analyst Jeffrey Toobin explained the significance of Trump Organization CFO Allen Weisselberg being removed from a number of roles at the firm following his indictment — and why it is unlikely to have much legal benefit for the organization.
"How do you read this decision to remove Weisselberg from these subsidiaries?" asked anchor Wolf Blitzer.
"It is an attempt to separate him because of the regulatory issues, but the problem is the company itself is indicted," said Toobin. "So they can try to pretend this is an Allen Weisselberg problem, but the problems for the Trump Organization go on."
Toobin also predicted that Weisselberg had only just begun to feel the pressure to flip and cooperate with prosecutors.
"The other issue is this is reminiscent of the former president's lawyer indicted," he said. "First, it was we love Michael Cohen. Then they stopped paying Michael Cohen's attorney fees. We'll see if they keep paying Weisselberg's attorney fees. The case against him — in fairness, we haven't heard his side of the story, but looks strong. He is going to be in a very difficult place, and this push away from the Trump Organization may be a push, unintentionally, towards him cooperating with the government."
"A source calls this removal 'prudent corporate governance,'" said Blitzer. "Is there potentially any legal benefit here to this kind of maneuver?"
"Well, it is prudent not to have a chief financial officer who is under indictment," said Toobin. "The regulatory bodies, whether liquor licenses or gambling licenses, they have certain requirements for the company that they agree to regulate. The problem is the Trump Organization itself is under indictment. So they're going to have regulatory problems no matter what. Yes, this is prudent, but it may be too little, too late."
Jeffrey Toobin says Trump Org's demotion of Weisselberg is "too little, too late" www.youtube.com