Insights from the high-stakes testimony of Eric Trump and Donald Trump Jr in the New York fraud case
Intense testimony reveals Eric Trump's involvement in Trump's finances, as Donald Trump Jr relies on accountants Judge admonishes Trump lawyer over clerk Trump to take the stand on Monday
The New York Attorney General's office questioned Donald Trump's two adult sons, Donald Trump Jr. and Eric Trump, on Thursday regarding their knowledge and involvement with the former president's financial statements. These were crucial and highly tense moments during the ongoing fraud trial. Both Trump Jr. and Eric Trump had played active roles in managing the Trump Organization during their father's tenure in the White House. This questioning took place just before the former president himself is scheduled to testify on Monday.
Donald Trump Jr., Eric Trump, their father (Donald Trump), the Trump Org., and a few company executives are co-defendants in the case. The attorneys representing the attorney generals presented evidence on Thursday to dispute the assertion that the brothers had no involvement in the former president's misrepresented financial statements. The judge previously ruled that these statements fraudulently exaggerated Donald Trump's net worth in order to secure favorable loan conditions.
Here are the key takeaways from the day in court:
Eric Trump confronted with emails showing his work on Trumps finances
Assistant Attorney General Andrew Amers' questioning intensified as he interrogated Eric Trump regarding his comprehension of his father's financial declarations utilized for backing real estate deals. Amers further confronted him by presenting a sequence of emails dating back to 2010.
Eric Trump admitted to sharing information with Jeff McConney, the former controller of Trump Org, who is also a co-defendant in the trial. However, Eric attempted to differentiate between distinct declarations regarding financial condition, specifically referring to his father's personal financial statements at the core of the civil case, and the overall financial records of the company.
"I clearly understand that I sent notes to Jeff McConney. I worked with him almost every day," Eric Trump said.
Former President Donald Trump and Judge Tanya Chutkan
Getty Images, AP
Judge Chutkan cautions Trump's attorneys against disclosing juror information to his campaign. She emphasizes the distinction between sending documents for financial purposes and those for a personal statement of financial condition, noting that the latter was inconsequential to her.
The reason for the distinction is important as it pertains to Donald Trump's financial statements, which the attorney general presented as evidence to show that he exaggerated the values of his properties in order to increase his net worth and secure advantageous loan terms. During Wednesday's testimony, an expert witness for the attorney general stated that the Trump Organization benefited from $168 million in savings due to the favorable loan rates obtained through the use of deceitful information.
Eric Trump says he doesnt focus on appraisals
During the trial, the assistant attorney general emphasized the importance of Eric Trump admitting, unlike his previous deposition, that he was aware that the information he had provided about assets such as Seven Springs and the Doral Golf Resort were intended for his father's financial statements.
In court on Thursday, Amer presented emails that suggested Eric Trump was aware of a $45 million valuation offered for the Briarcliff Manor development in 2015 by David McArdle, an appraiser from Cushman & Wakefield. This valuation was $58 million less than what was stated on his father's financial statements from 2013 to 2018, as stated in the attorney general's complaint.
Amer confronted Eric Trump, pushing him to acknowledge that he had provided incorrect testimony during his deposition earlier this year. Amer pointed to the existence of emails and phone calls regarding the appraisal process for Briarcliff Manor.
Eric Trump reiterated his testimony about having limited involvement after a lengthy exchange, stating that he prioritizes construction over appraisals in his daily activities.
Earlier in the trial, McConney testified that Eric Trump directed him to make certain decisions that led to the inflated valuations of several Trump properties.
Donald Trump Jr. says he relied on accountants
During his testimony on Wednesday, Donald Trump Jr. emphasized that he depended on his accountants and played no role in the preparation of financial statements for his father. However, it is worth mentioning that he did sign these statements as a trustee of his father's revocable trust.
Starting in 2017, when Donald Trump assumed the presidency, Trump Jr. took on the responsibilities of a trustee. This included signing certifications for annual financial submittals necessary for Trump Organization loans at Deutsche Bank. These loans were associated with the Old Post Office, Trump International Hotel and Tower in Chicago, and Doral Golf Resort & Spa in Florida.
On Tuesday, August 9, 2022, in New York, USA, Donald Trump's Trump Tower was the center of attention as he faced escalating legal and political scrutiny. This came after FBI agents conducted a search in his Florida residence as part of an investigation into whether he had taken classified White House documents upon leaving office. The outcome of this inquiry has cast a shadow over his potential run for the presidency in 2024.
Jeenah Moon/Bloomberg/Getty Images
Trump Org. controller said he was ordered to hide benefits on tax forms
He stated under oath that he did not personally prepare the financial statements, and instead trusted the accounting and legal teams of the Trump Organization, who he believed had ensured the accuracy of the statements, when he affixed his signature as a trustee.
Once the attorney general's investigation into the company commenced in 2019, there was a protracted exchange regarding attorney-client privilege between the attorney general's office and Trump's legal representatives.
Judge admonishes Trump lawyer over clerk
Some internal policies and methodologies have undergone strengthening since the investigation commenced, revealed Trump Jr. A notable modification entails the recruitment of a chief financial officer with a certification as a public accountant.
The most tense moment of the day did not involve the Trump sons or the lawyers, but rather the judge and Trump attorney Chris Kise. Engoron reprimanded Kise for making a casual remark criticizing the judge's clerk during a discussion about the significance of Eric Trump's exercise of his Fifth Amendment rights in a previous investigatory interview related to the case.
Engoron cautioned Kise against commenting on his clerk, reminding him of the existing gag order prohibiting public remarks about his staff, and implied the possibility of extending this order to lawyers as well. Engoron suggested that the persistent criticism directed towards his female law clerk might be tinged with "a hint of misogyny."
In response, Kise asserted that the objections he raised were pertinent to the case, and justified his right to express concerns regarding the trial process.
"I am not a misogynist. I am happily married and have a 17-year-old daughter. I firmly deny that accusation," stated Kise.
Due to the clerk's involvement in the case and sitting beside the judge, Trump launched an attack on her through social media. This resulted in Engoron implementing a gag order. Trump has already been fined twice for disregarding this order.
Engoron vigorously defended the role of his clerk, emphasizing the confidentiality of the notes she passes him during testimony. He firmly stated, while pounding on the bench, that they are "confidential communications from my law clerk."
Regarding his clerk, the judge asserted that she is a civil servant diligently carrying out his instructions.
Trump takes the stand on Monday
With Eric Trump's return on Friday, attention is already shifting towards Monday when Donald Trump is scheduled to testify. As he persists in criticizing the trial, the judge, and Attorney General Letitia James.
Trump will be appearing in the trial once again, which is not a new occurrence. In the previous month, Engoron summoned him to give his testimony regarding a remark he had made in the hallway, seemingly directed towards Engoron's clerk. Engoron had imposed a gag order on discussing his staff, which Trump had violated.
This testimony may provide a glimpse into how Trump could potentially respond in the upcoming four criminal trials scheduled for 2024 in New York, Washington, Florida, and Georgia. It is worth noting that these trials coincide with Trump's preparation to challenge President Joe Biden for the presidency.
Trump has attended various stages of the civil trial to observe, although he was absent during his son's testimony. However, this did not prevent him from expressing his views on social media while they were on the witness stand.
"It is truly disheartening to witness my sons facing persecution in a politically motivated witch hunt by this overly ambitious New York State Judge, who is desperate for attention. This case should have never been initiated, and legal experts are voicing their outrage!" Trump shared on Truth Social.
Trump's daughter, Ivanka, filed an appeal on Thursday to prevent Engoron's previous order for her to testify in the trial until the New York appellate court reviews the appeal. In the filing, her attorney stated that compelling her to testify next week would pose an "undue hardship," particularly due to the fact that it falls in the middle of a school week and she resides in Florida with three young children.
At the end of Ivanka Trumps filing, her attorney asks the appeals court to stay the ruling requiring her testimony as well as a "stay of the trial."
