Trump sons on trial in NY: Did they cover up company fraud?
| New York
When Donald Trump became president in 2017, he handed day-to-day management of his real estate empire to his eldest sons, Donald Jr. and Eric.
Now, as the Trumps fight to keep the family business intact, the brothers are set to testify in the New York civil fraud case that threatens the Trump Organization鈥檚 future.
Donald Trump Jr. is expected to testify Nov. 1 and Eric Trump on Nov. 2, kicking off a blockbuster stretch as the trial in New York Attorney General Letitia James鈥� lawsuit 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 exaggerate his wealth by billions of dollars on financial statements that were given to banks, insurers, and others to secure loans and make deals.
Donald Trump 鈥� the former president, family patriarch, and 2024 Republican front-runner 鈥� is slated to testify Nov. 6, followed by his eldest daughter, ex-Trump Organization executive, and White House adviser Ivanka Trump, on Nov. 8. State lawyers are expected to rest their case after that, giving Mr. Trump鈥檚 lawyers a 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鈥� lawsuit. Eric has oversight over the company鈥檚 operations while Donald Trump Jr. has been involved in running the company鈥檚 property development. He and longtime company finance chief Allen Weisselberg were also trustees of the revocable trust Mr. Trump set up to hold the company鈥檚 assets when he became president.
Before the trial, Judge Arthur Engoron ruled that Mr. Trump鈥檚 financial statements were fraudulent. He ordered that a court-appointed receiver seize control of some of his companies 鈥� potentially stripping him and his family of such marquee properties as Trump Tower 鈥� though an appeals court has halted enforcement for now.
Like their father, both brothers have denied wrongdoing.
Eric Trump has spent several days at the trial, often on the days his dad has been there. He鈥檚 commented sporadically, mostly on social media. On Oct. 5, he posted a video montage to Truth Social of Ms. James criticizing his father. With it, he wrote: 鈥渢his is the corruption my father and our family is fighting! The system is weaponized, broken and disgusting!鈥�
Donald Trump Jr. hasn鈥檛 been to court, but since testimony began Oct. 2, he鈥檚 repeatedly denounced the case and Mr. Engoron as a 鈥渒angaroo court.鈥� State law doesn鈥檛 allow for juries in this type of lawsuit, so Mr. Engoron will decide the case.
鈥淚t doesn鈥檛 matter what the rules are, it doesn鈥檛 matter what the Constitution says, it doesn鈥檛 matter what general practices and business would be,鈥� Donald Trump Jr. said Oct. 30 on Newsmax. 鈥淚t doesn鈥檛 matter. They have a narrative, they have an end goal, and they鈥檒l do whatever it takes to get there.鈥�
Building to Donald Trump Jr. and Eric Trump鈥檚 testimony, state lawyers have asked other witnesses about their role leading the Trump Organization and their involvement, over the years, in valuing their father鈥檚 properties and preparing his financial statements. Their names have also appeared on various emails and documents entered into evidence.
David McArdle, an appraiser at commercial real estate firm Cushman & Wakefield, testified that Eric Trump had substantial input on valuing planned-but-never-built townhomes at a Trump-owned golf course in the New York City suburbs. Mr. McArdle said Eric Trump arrived at a 鈥渕ore lofty value鈥� than him for the project but that going with the scion鈥檚 higher number wouldn鈥檛 have been credible.
Donald Trump Jr. and Eric Trump have already been heard from at the trial, albeit in snippets of prior testimony. During opening statements on Oct. 2, state lawyers showed about a minute each from sworn depositions the brothers gave 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 鈥� which state lawyers say were used at times and disregarded at others in preparing Donald Trump鈥檚 financial statements.
Mr. Trump Jr., who鈥檚 never been an accountant, said he couldn鈥檛 recall having to use the GAAP standards in his work. He got a laugh out of a state lawyer when he said he鈥檇 learned about them 鈥減robably in Accounting 101 at Wharton鈥� but didn鈥檛 remember much other than that they were 鈥済enerally accepted.鈥�
In his March 2023 deposition, Eric Trump testified, 鈥淚 don鈥檛 think I鈥檝e had any involvement in the Statement of Financial Condition, to the best of my knowledge.鈥� He appeared to minimize his role as a top company executive, testifying that he tried to remain 鈥渟iloed into the things I care and are passionate about鈥� while sharing management responsibilities with his brother.
鈥淚鈥檓 a construction, concrete, and on-the-ground operations guy,鈥� Eric Trump said, according to a deposition transcript posted on the case docket.
Questioned at another point about decision-making earlier in his career, Eric Trump said: 鈥淚 pour concrete. I operate properties. I don鈥檛 focus on appraisals between a law firm and Cushman. This is just not what I do in my day-to-day responsibilities.鈥�
Donald Trump attended the trial鈥檚 first three days in early October and showed up again for four days in the past two weeks, but his campaign schedule suggests it鈥檚 unlikely he鈥檒l return to see his sons testify.
In his past appearances, Mr. Trump groused to TV cameras outside court, calling the case a 鈥渟ham,鈥� a 鈥渟cam,鈥� and 鈥渁 continuation of the single greatest witch hunt of all time.鈥� He also angered the judge twice, incurring $15,000 in fines for violating a limited gag order with comments about a member of the court staff.
This story was reported by The Associated Press. AP writer Jennifer Peltz contributed to this report.
