Donald Trump’s family business was sentenced to pay about $1.6 million in criminal fines following its tax-fraud conviction for using an off-the-books compensation scheme to pay some employees in perks, such as cars, rent-free apartments and cash.

A New York jury in December found two Trump Organization entities guilty of a total of 17 criminal counts, including tax fraud, conspiracy and falsifying business records. State Supreme Court Justice Juan Merchan, who presided over the trial, imposed the penalty at a hearing Friday.

At trial this fall, prosecutors from the Manhattan district attorney’s office argued that longtime company finance chief Allen Weisselberg, who pleaded guilty to participating in the scheme, committed tax crimes not only for his own benefit, but to save money for his employer. Mr. Weisselberg, 75 years old, testified as a prosecution witness as part of his plea deal, and his account was central to the district attorney’s case. He told jurors that he and other company employees evaded paying taxes on some income because they were compensated in benefits in lieu of salary increases.

Mr. Weisselberg was sentenced Tuesday to five months in jail followed by five years probation and is serving his sentence at New York City’s Rikers Island jail complex.... Read More: WSJ