In Donald Trump’s Civil Fraud Trial, Testimony Highlights Eric Trump’s Optimistic Property Valuations

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During the civil fraud trial of former U.S. President Donald Trump, attention shifted towards his son Eric Trump last Thursday, as court proceedings revealed his optimistic outlook on the valuation of a suburban golf course, contrary to his previous statements of having no recollection of the appraisal processes.

The legal proceedings originate from accusations by New York State Attorney General Letitia James that Donald Trump, along with his organization and key executives, including Eric Trump, artificially inflated the value of assets in financial disclosures provided to lenders, insurance companies, and other entities. The defendants have refuted the allegations, contending that the asset values were actually underrepresented.

Approximately a decade ago, Trump’s businesses procured appraisals for two properties situated in the suburbs of Westchester County, New York: Trump National Golf Club and Seven Springs estate. David McArdle, an appraiser associated with commercial real estate firm Cushman & Wakefield, testified on Thursday that these appraisals were considered as part of discussions surrounding conservation easements, a legal agreement that restricts development on a property in exchange for tax benefits.

McArdle was engaged in 2013 to ascertain the potential value of the golf course, assuming the development of 71 high-end townhomes. He noted substantial contributions from Eric Trump, an executive vice president at the Trump Organization, towards the valuation estimates. An email correspondence from the period saw McArdle noting Eric Trump’s optimistic valuation, where Eric assumed the townhomes would command a rate of $1,000 per square foot.

Eric Trump later forwarded McArdle property comparisons, yet insisted that none had comparable amenities to Trump National Golf Club in Briarcliff Manor, New York. Eventually, McArdle arrived at a valuation around $45 million, and discussions took place on how best to present this figure to their client.

Despite McArdle’s professional assessment, Eric Trump seemed to favor a “more optimistic valuation,” which McArdle contended would lack credibility. Subsequently, Eric Trump requested that McArdle delay the release of the appraisal report. Despite this, Donald Trump’s financial statements later listed the golf course with valuations exceeding $100 million, according to the lawsuit filed by Attorney General James.

McArdle was also hired in 2014 to assess the value of Seven Springs, a 213-acre estate. Eric Trump conveyed a high estimation of the property’s worth, comparing it to a Connecticut property where lots were sold for up to $3 million. Despite this, McArdle eventually advised that Seven Springs could be valued up to $50 million. Nevertheless, subsequent financial statements from Donald Trump listed Seven Springs with a valuation exceeding $160 million.

When queried about his interactions with McArdle during pre-trial testimonies, Eric Trump professed only a vague recollection of the appraiser and the evaluation processes for both properties. Lazaro Fields, the defense attorney, questioned McArdle to emphasize that differences in property valuations between owners and professional appraisers are not uncommon.

The ongoing trial also included testimony concerning a $160 million refinancing loan for a Trump-owned building on Wall Street in 2015. Jack Weisselberg, an executive at lender Ladder Capital, stated that Donald Trump’s declared net worth of approximately $5.8 billion, including over $300 million in liquid assets, was among the various factors considered during the loan underwriting process.

The state attorney general is seeking a financial penalty of $250 million and a prohibition on Donald Trump and other defendants from conducting business in New York. Earlier rulings by Judge Arthur Engoron have determined that Donald Trump and his organization engaged in fraudulent practices, but enforcement of those decisions has been temporarily halted by an appellate court. Both Judge Engoron and Attorney General James are members of the Democratic Party.

Contributions to this report were made by Michael R. Sisak of Big Big News.

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More about Donald Trump’s Civil Fraud Trial

• New York Attorney General Letitia James
• Civil Fraud Trial Overview
• The Trump Organization
• Cushman & Wakefield Appraisal Firm
• Conservation Easements Explained
• Eric Trump’s Role in Trump Organization
• 2024 Republican Presidential Front-runners
• Judge Arthur Engoron’s Pretrial Rulings
• The Legal Implications of Asset Inflation
• Appellate Court Decisions in New York