Trump sons on trial in NY: Did they cover up company fraud?
When Donald Trump became president in 2017, he handed over the day-to-day management of his real estate empire to his eldest sons, Donald Jr. and Eric.
As the Trumps fight to keep the family business intact, the brothers will testify in the civil fraud case in New York that threatens the future of the Trump Organization.
Donald Trump Jr. is expected to testify on November 1 and Eric Trump on November 2, marking a blockbuster start as New York Attorney General Letitia James’ trial enters its second month.
Ms. James, a Democrat, alleges that Donald Trump, his company and top executives, including Eric and Donald Trump Jr., conspired to overstate his wealth by billions of dollars based on financial statements given to banks, insurers and others to to ensure its safety. making loans and deals.
Donald Trump – the former president, family patriarch and 2024 Republican frontrunner – will testify on November 6, followed by his eldest daughter, former Trump Organization director and White House adviser Ivanka Trump, on November 8. Lawyers are then expected to rest their cases, giving Mr Trump’s lawyers the chance to call their own witnesses.
Donald Trump Jr. and Eric Trump are both executive vice presidents at the Trump Organization and defendants in Ms. James’ lawsuit. Eric oversees the company’s operations, while Donald Trump Jr. was involved in running the company’s real estate development. He and Allen Weisselberg, a former chief financial officer, were also trustees of the revocable trust that Mr. Trump set up to hold the company’s assets when he became president.
Before the trial, Judge Arthur Engoron ruled that Mr. Trump’s financial statements were fraudulent. He ordered that a court-appointed receiver take control of some of his companies — potentially depriving him and his family of major properties like Trump Tower — although an appeals court has halted enforcement for now.
Like their father, both brothers have denied wrongdoing.
Eric Trump spent several days at the trial, often on days when his father was there. He comments sporadically, especially on social media. On October 5, he posted a video montage on Truth Social in which Ms. James criticized his father. He wrote: “This is the corruption my father and our family are fighting against! The system is weaponized, broken and disgusting!”
Donald Trump Jr. has not been in court, but since testimony began on Oct. 2, he has repeatedly denounced the case, labeling Mr. Engoron a “kangaroo court.” State law does not allow juries in these types of trials, so Mr. Engoron will decide the case.
“It doesn’t matter what the rules are, it doesn’t matter what the Constitution says, it doesn’t matter what general practices and things would be,” Donald Trump Jr. said on Newsmax on October 30. “It does not matter. They have a story, they have an end goal and they will do whatever it takes to get there.”
Building on the testimony of Donald Trump Jr. and Eric Trump, state attorneys have asked other witnesses about their roles in running the Trump Organization and their involvement, over the years, in valuing their father’s properties and preparing his financial statements. Their names have also appeared on several emails and documents entered into evidence.
David McArdle, an appraiser with commercial real estate firm Cushman & Wakefield, testified that Eric Trump had substantial input into the valuation of planned but never built townhomes on a Trump golf course in suburban New York City. Mr McArdle said Eric Trump came to a “higher value” for the project than he did, but that going with the higher number would not have been credible.
Donald Trump Jr. has already been heard during the trial. and Eric Trump heard, albeit in fragments of previous testimony. During opening statements on Oct. 2, state attorneys each showed about a minute of the sworn statements the brothers made in the case.
In his July 2022 clip, Donald Trump Jr. testified about his scant knowledge of the accounting standards known as generally accepted accounting principles — which state attorneys say were sometimes used and ignored by others in preparing Donald’s financial statements Trump.
Mr. Trump Jr., who has never been an accountant, said he did not remember having to use GAAP standards in his work. A state attorney laughed at him when he said he had heard about them “probably in Accounting 101 at Wharton” but didn’t remember much other than that they were “widely accepted.”
In his March 2023 deposition, Eric Trump testified: “I don’t think I had any involvement in the Statement of Financial Condition, to my knowledge.” He appeared to downplay his role as the company’s top executive, testifying that he tried to “stay focused on the things that I care about and am passionate about” while sharing management responsibilities with his brother.
“I am a construction, concrete and ground operations guy,” Eric Trump said, according to a transcript of the deposition posted on the case docket.
When Eric Trump was questioned at another point about decision-making earlier in his career, he said, “I pour concrete. I operate real estate. I don’t focus on valuations between a law firm and Cushman. This is just not what I do in my daily responsibilities.”
Donald Trump attended the first three days of the trial in early October and appeared again for four days in the past two weeks, but his campaign schedule suggests he is unlikely to return to see his sons testify.
In his previous appearances, Trump grumbled to TV cameras outside the court, calling the case a “sham,” a “scam” and “a continuation of the greatest witch hunt of all time.” He also angered the judge twice, fining him $15,000 for violating a limited gag order with comments about a member of court staff.
This story was reported by The Associated Press. AP writer Jennifer Peltz contributed to this report.