What to Expect as Ivanka Trump Takes the Stand in the Trump Organization Fraud Trial
Ivanka Trump, daughter of Donald Trump, is set to testify in the Trump Org fraud trial as the final witness for the NY attorney general's office Her testimony may shed light on her role in securing loans and her luxurious penthouse apartment
Ivanka Trump, the daughter of Donald Trump, will testify as the last witness for the New York attorney general's office in the former president's civil fraud trial. Although Ivanka is no longer a defendant in Attorney General Letitia James' case, she is expected to face questioning regarding her involvement in securing property financing during her tenure at the Trump Organization, as well as the appraisal of a leased apartment in her father's Manhattan building.
Her testimony follows her father's appearance on the witness stand on Monday, where the former president consistently annoyed Judge Arthur Engoron by aggressively criticizing both the attorney general and the judge with political assaults.
Former President Donald Trump waits to take the witness stand at New York Supreme Court on Monday.
Eduardo Munoz Alvarez/AP
Donald Trump's civil fraud trial yielded significant observations regarding Ivanka Trump's involvement. While her testimony lacked explosive moments, it was not devoid of drama. Initially attempting to avoid testifying through a motion to quash the subpoena, Engoron's ruling compelled her to take the stand. Despite Ivanka's reservations about appearing during a school week, her plea for a stay was denied by the appellate court.
Ivanka Trumps brothers, Eric Trump and Donald Trump Jr., who are co-defendants in the case, testified last week.
Heres what to watch for during her testimony:
Ivankas apartment and role securing loans
Ivanka Trump possesses a thorough understanding of the allegations encompassed in the civil fraud trial, in which the attorney general aims to procure $250 million in damages and impose restrictions on Trump's business activities within the state.
Prior to joining the White House in 2017 as a senior aide, Ivanka Trump held an executive position at the Trump Organization. In a lawsuit filed by the attorney general last September, it was mentioned that Ivanka Trump played a role in obtaining a loan for the acquisition of Trump's Doral golf course in Florida and Chicago properties in 2012. The attorney general claims that these loans were granted, at least in part, based on the alleged exaggeration of Trump's assets in his personal financial statements.
The complaint states that on each of the transactions with Deutsche Bank, Ms. Trump was fully aware that Mr. Trump had provided a personal guaranty. This guaranty obligated him to submit annual Statements of Financial Condition and certifications.
When asked on Monday, Trump was requested to confirm that he had indeed signed those loan agreements and comprehended the clauses which entailed maintaining a minimum net worth and submitting annual financial statements.
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Donald Trump spars with judge during testimony in civil fraud trial
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Ivanka Trump, along with her father Mr. Trump, actively participated in the bidding process for the Old Post Office in Washington, DC in 2011. This historical property was later transformed into a hotel by the Trumps, who eventually sold it last year. Ivanka's involvement included her contribution in formulating communications to the GSA related to the bid, as well as addressing any concerns raised by the GSA.
Engoron ruled that Trump and his co-defendants were responsible for fraud prior to the trial. The judge is currently evaluating the amount the Trumps will need to compensate for the alleged profits obtained through deceptive business practices. The attorney general is also aiming to validate further allegations, such as falsifying business records, distributing false financial statements, and committing insurance fraud.
During a deposition connected to this investigation last year, Ivanka Trump distanced herself from the financial statements. She acknowledged the existence of the companies' financial statements but claimed no "specific" recollection of her father possessing personal financial condition statements.
"Although he has accountants who handle various matters and prepare statements, I am unaware of the specific details regarding what was prepared for him as an individual distinct from the organization and the properties I was working on. Therefore, I cannot provide information about how they were prepared or who was responsible for it." The witness testified.
When asked if, as a graduate of the Wharton School of Business at the University of Pennsylvania, she was aware that financial statements disclose all assets and liabilities and accurately represent the financial condition of an entity, she responded, "I have never personally prepared one, so I don't have knowledge about it. Accounting is not my area of expertise."
Ivanka is no longer a co-defendant
While she will be asked questions about her role at the Trump Organization, she is no longer part of the case thanks to an appellate court ruling in June.
Ivanka Trump's involvement in a lawsuit was dismissed by a court order on the basis that she was not a party to the August 2021 agreement between James office and the Trump Organization, which aimed to extend the time limit for legal action. The order stated that Ivanka Trump no longer fell under the definition of Trump Organization at the time the agreement was made. The allegations against her did not pertain to any claims that arose after February 6, 2016, resulting in the dismissal of all claims against her as being untimely.
Trump and his lawyers have contended that the statute of limitations should lead to the dismissal of allegations against the ex-president. However, Engoron has rejected these claims. In an attempt to avoid testifying, Ivanka Trump sought to leverage the ruling from the appellate courts. Her lawyer, Bennet Moskowitz, asserted that she is no longer a resident of New York and has not been employed in the state since 2017, thus arguing that the court lacked jurisdiction over her.
Trump's attorneys claimed that the subpoena requesting Ivanka's testimony was a form of ongoing harassment of President Trump's children. Attorney Chris Kise added that the intention behind requesting her presence in the courtroom was to attract media attention and create yet another chaotic spectacle.
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Trump speaks to reporters after testimony in civil fraud trial
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Ivankas penthouse apartment
Another issue Ivanka Trump is likely to get questions about is a Penthouse apartment in Trump Park Avenue that she leased.
According to the complaint filed by the attorney general, the rental agreement provided the option to buy the unit for $8.5 million. However, Trump's financial statements in 2011 and 2012 valued the unit at $20.8 million and in 2013, it was valued at $25 million.
The complaint further alleged that in 2014, she was offered the option to purchase a larger penthouse unit in the building for $14.3 million. However, the unit's value in the 2014 financial statement was listed at $45 million.
"In the said year, Ms. Trump's lease agreement included an advantageous provision allowing her to acquire the unit at a significantly reduced price, while she paid a rental fee well below the prevailing market rate for similar units in the building," states the complaint.
Testifying as a former accountant at Mazars, Donald Bender clarified that his role did not involve conducting financial statement audits. However, he occasionally highlighted mistakes to the officials of the Trump Organization."
