Key Revelations from Ivanka Trump's Testimony in the New York Fraud Trial
Ivanka Trump's highly anticipated testimony in the New York fraud trial concluded eight days of witness accounts The attorney general focused on Deutsche Bank loan negotiations, Ivanka's distancing from her apartments' valuation, discussions with Jared Kushner, and now it's the Trump team's turn
Ivanka Trump's appearance on Wednesday marked the much-awaited culmination of an unprecedented eight days of witness testimony. This included testimonies from Donald Trump and three of his adult children during the civil fraud trial initiated by the New York Attorney General's office.
Following Ivanka Trump's testimony, wherein she faced questions about her involvement in securing loans for the Trump Organization and her lease of a penthouse apartment from her father, the AG's office concluded its case.
Her appearance did not come close to being as controversial as her father's on Monday - there were no fireworks or angry outbursts.
Overall, the attorney general's office obtained testimony from 25 witnesses in their case against Trump, his two adult sons, and his business. This culminated in the Trumps themselves serving as the final four witnesses. While Donald Trump, Donald Trump Jr., and Eric Trump are all defendants in the attorney general's lawsuit seeking $250 million in damages and a ban on the former president's business activities in the state, Ivanka Trump is no longer included as a co-defendant in the case.
Here are key takeaways from Ivanka Trumps day in court:
AG focused on Deutsche Bank loan negotiations
Ivanka Trump underwent extensive questioning by Louis Solomon, an attorney from the attorney general's office, regarding the loan financing of the Doral Golf Resort & Spa in Florida by Deutsche Bank.
The loans hold significant importance in this case as they mandated Donald Trump to provide annual financial statements. The attorney general claims that these statements were falsified to overstate Trump's net worth and secure more favorable loan rates.
The Deutsche Bank loan's final agreement mandated that Donald Trump, as the guarantor, maintains a minimum net worth of $2.5 billion. Before, the bank had suggested a loan draft that required Trump to maintain a net worth of $3 billion. However, Ivanka Trump suggested lowering the net worth requirement to $2 billion, as demonstrated by an email presented in court by Solomon.
In 2011, Trump's financial statement confirmed a net worth of $4.2 billion. This allowed him to secure improved terms for the Doral property through a loan from Deutsche Bank. Personal guarantees on the loans were provided by Trump, leveraging his association with the private wealth management group and enabling the option for a high net worth individual to support the loan.
The Trump Org. was offered different terms through Deutsche Banks commercial real estate arm for the same property.
Ivanka Trump distances herself from her apartments valuation on Donald Trumps financial statement
According to the attorney general's civil complaint, Ivanka Trump claims she was unaware of the reason behind the significant discrepancy between the value stated on her father's financial statement for the penthouse apartment she leased from the Trump Park Avenue building and the lower purchase price of $8.5 million that she agreed upon. The financial statement valued the apartment at $20.8 million, which was over $12 million more than her actual purchase price.
Solomon inquired Ivanka Trump if her purchase option value was considered in her father's financial statement.
"I mentioned to you a year and a half ago that I was not involved in his financial statement, so I cannot confirm what it included or excluded," replied Ivanka Trump.
During her deposition last year, she acknowledged her awareness of companies having financial statements. However, she did not have a specific recollection of her father possessing personal statements of financial condition. When questioned about it, she explained that while her father had accountants who handled various financial matters, she was unsure about the details of what was prepared for him as an individual separate from the organization and properties she worked with. As a result, she was unable to provide information about how those statements were created or who was responsible for their preparation.
Discussions between Ivanka Trump and Jared Kushner
She provided a testimony that echoed her brothers' statements regarding the financial statements, both stating their lack of awareness regarding the work conducted on Donald Trump's statement of financial condition, despite submitting information that was utilized in the preparation of the statements.
Ivanka Trump and Jared Kushner served as senior advisers to President Donald Trump in his White House. Prior to their relocation to Washington, both of them had a background in real estate. Although Kushner was not employed by the Trump Organization, they engaged in professional discussions together.
When asked about the email, she mentioned that her spouse also had a background in real estate and would provide insights. Despite objections from Trump's lawyers invoking spousal privilege, Solomon interrogated her about an email conversation concerning potential funding terms from Capital One for the Old Post Office project, which was later renovated and launched as the Trump International Hotel in 2016.
Kushner believed that he could present the agreement to Natixis, an investment bank, as he expected them to offer more favorable terms to Trump Org.
Regarding the email, Ivanka Trump stated, "I have no recollection of this conversation. However, it is not unusual for me to seek my husband's input on matters I am handling."
The attorney generals office rests its caseâ¦
Ivanka Trump was the final witness of 25 in the attorney generals case against Trump and his businesses - 24 of which were in person.
In addition to the Trump family, the attorney general's office summoned former Trump Org. executive Allen Weisselberg and Jeff McConney – both co-defendants in the case – along with other officials from within and outside the Trump Org. who were involved in the projects relevant to the case.
Furthermore, the attorney general received testimony from Michael Cohen, former lawyer and "fixer" for Trump, who, in Trump's presence, stated that his former employer instructed him and Weisselberg to inflate his financial records (Weisselberg denied that such a meeting took place).
The attorney general has already obtained summary judgment from Judge Arthur Engoron prior to the commencement of the trial. The judge has determined that Trump and his co-defendants are responsible for fraud. Presently, the judge is deliberating on the extent of the damages that the Trumps must compensate for the profits they have purportedly obtained via deceitful business strategies, which involve exaggerating Trump's financial worth on official documents.
The attorney general is seeking to prove six additional claims, including falsifying business records, issuing false financial statements and insurance fraud.
â¦Â and now the Trump team gets its turn
Now, the team representing Trump has the opportunity to present their defense for the former president. Additionally, Trump's lawyers have indicated that they plan to file a motion for a mistrial, citing the conduct of the judges clerk. It is highly improbable that this motion will be successful, as Engoron has imposed a gag order in response to Trump's criticism of his clerk. However, this motion will establish the approach that Trump's lawyers will adopt in their attempt to discredit the attorney general's case, both within the courtroom and in the eyes of the public.
Trumps lawyers presented a glimpse into their defense during the cross-examination of Ivanka Trump on Wednesday. They focused on email exchanges that highlighted Deutsche Bank's satisfaction with having the Trump Org. as a client.
Their main contention is that the complaint filed by the attorney general lacks a clear victim since the banks were fully repaid. (The attorney general's office claims that the banks suffered deceit amounting to hundreds of millions of dollars due to the fraudulent loan rates received by Trump.)
During the negotiations process for funding, Ivanka Trump mentioned that her family had shared their vision for the renovation of the Doral golf resort in Florida with Deutsche Bank. She added that Deutsche Bank showed great enthusiasm by sending multiple teams to tour and experience the property prior to their purchase.
During his testimony on Monday, Donald Trump provided a glimpse into the defense strategy that he anticipates his team will present. He mentioned that as the trial progresses, the defense plans to call upon a number of prominent bankers who had previous dealings with him. These experienced bankers will be able to provide detailed explanations of their respective processes. However, Trump was promptly reprimanded by the judge for veering into a speech.
The Attorney General's office has filed a letter requesting a hearing on Thursday regarding a motion to prevent certain expert witnesses from testifying in relation to President Trump. The attorneys from the Attorney General's office argue that these witnesses' testimonies pertain to matters that have already been addressed by the judge, particularly relating to property valuation and associated accounting rules.
