Trump鈥檚 NY fraud trial resumes, as Donald Trump Jr. takes the stand
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| New York
Foiled in their long-shot bid for an early verdict, Donald Trump鈥檚 lawyers will start calling witnesses of their own Nov. 13 in the New York civil fraud trial聽that threatens the former president鈥檚 real estate empire.
First up: Donald Trump Jr., who鈥檒l be returning to the witness stand two weeks after state lawyers quizzed him during a major stretch of the trial that also featured testimony from his father and siblings Eric and Ivanka Trump.聽
Mr. Trump鈥檚 oldest son, a Trump Organization executive vice president, originally testified聽on Nov. 1 and 2. He said he never worked on the annual financial statements at the heart of New York Attorney General Letitia James鈥 lawsuit. He said he relied on the company鈥檚 longtime finance chief and outside accounts to verify their accuracy.
Ms. James alleges Donald Trump, his company, and executives, including Eric and Donald Jr., exaggerated his wealth聽by billions of dollars on financial statements given to banks, insurers, and others. The documents were used to secure loans and make deals. She is seeking more than $300 million in what she says were ill-gotten gains and a ban on defendants doing business in New York.
Before the trial, Judge Arthur Engoron ruled that the defendants committed fraud by inflating his net worth聽and the value of assets on his financial statements. He imposed a punishment that could strip Mr. Trump of marquee properties like Trump Tower, though an appeals court is allowing him to remain in control for now.
The Trumps have denied wrongdoing. Their lawyers contend that the state failed to meet 鈥渁ny legal standard鈥 to prove allegations of conspiracy, insurance fraud, and falsifying business records.聽The state rested its case Nov. 8 after six weeks of testimony from more than two dozen witnesses. Among them: company insiders, accountants, bank officials, and Mr. Trump鈥檚 fixer-turned-foe Michael Cohen.
The trial is proceeding after Mr. Engoron rebuffed the defense鈥檚 request last week to end it early through what鈥檚 known as a directed verdict. Mr. Engoron did not rule on the request, but indicated the trial would move ahead as scheduled.
Mr. Trump鈥檚 lawyer Christopher Kise, seeking a verdict clearing Mr. Trump and other defendants, argued Nov. 9 that the state鈥檚 case involved only 鈥渟uccessful and profitable loan transactions鈥 and that 鈥渢here is no victim. There is no complainant. There is no injury.鈥
After testifying in early November, Donald Trump Jr. echoed his father鈥檚 claims that the case was 鈥減urely a political persecution鈥 brought by Ms. James, a Democrat, to blunt Mr. Trump鈥檚 chances as the front-runner for the 2024 Republican presidential nomination.
鈥淚 think it鈥檚 a truly scary precedent for New York 鈥 for me, for example, before even having a day in court, I鈥檓 apparently guilty of fraud for relying on my accountants to do, wait for it: accounting,鈥 Mr. Trump Jr. told reporters on Nov. 2.
On Nov. 13, Mr. Trump Jr. will be questioned first by the defense lawyers representing him, his father, and other defendants. A state lawyer is also expected to question him on cross-examination. Mr. Trump Jr. is expected to testify Nov. 13 and 14, followed by a tax lawyer who also testified as a state witness.
The defense also plans to call several expert witnesses as part of their case in an attempt to refute testimony from state witnesses that Mr. Trump鈥檚 financial statements afforded him better loan terms, insurance premiums, and were a factor in dealmaking.
When he became president in 2017, Mr. Trump handed day-to-day management of his company to Eric and Donald Trump Jr. and named Mr. Trump Jr. as a trustee of a trust he established to hold his assets while in office.
In Mr. Trump Jr.鈥檚 prior testimony, when asked if he ever worked on his father鈥檚 鈥渟tatement of financial condition,鈥 the scion said: 鈥淣ot that I recall.鈥 Mr. Trump Jr. said he signed off on statements as a trustee, but left the work to outside accountants and the company鈥檚 then-finance chief and co-trustee, Allen Weisselberg.
鈥淚 had an obligation to listen to the people with intimate knowledge of those things,鈥 Mr. Trump Jr. testified. 鈥淚f they put something forward, I wasn鈥檛 working on the document, but if they tell me that it鈥檚 accurate, based on their accounting assessment of all of the materials. ... These people had an incredible intimate knowledge, and I relied on it.鈥
This story was reported by The Associated Press.