Sons of Donald Trump, Don Jr. and Eric, to Testify in Fraud Case Jeopardizing Family Business

In 2017, when Donald Trump assumed the office of the President of the United States, he entrusted the day-to-day operations of his extensive real estate holdings to his elder sons, Donald Trump Jr. and Eric Trump.

The two brothers now find themselves preparing to give testimonies in a civil fraud lawsuit filed in New York, which could imperil the future of the Trump Organization.

The lawsuit, led by New York Attorney General Letitia James, a member of the Democratic Party, alleges that the Trump Organization, under the involvement of Donald Trump and senior executives including Eric and Donald Trump Jr., manipulated financial statements. The alleged manipulation inflated Donald Trump’s net worth by billions of dollars, which was then used to secure loans and conduct various business transactions with banks and insurers.

Scheduled for this week, Donald Trump Jr. is set to testify on Wednesday, while Eric Trump will take the stand on Thursday. This is considered a significant moment as the case enters its second month of trial.

Adding to the lineup of high-profile testimonies, Donald Trump, the former President and current 2024 Republican candidate, is scheduled to testify the following Monday. He will be succeeded by Ivanka Trump, his eldest daughter and a former Trump Organization executive and White House adviser, on November 8. After these testimonies, it is expected that state prosecutors will conclude their case, allowing defense attorneys to present their witnesses.

Both Donald Trump Jr. and Eric Trump serve as executive vice presidents at the Trump Organization and are also defendants in the lawsuit by Attorney General James. Eric Trump is responsible for the company’s operations, whereas Donald Trump Jr. focuses on property development. Alongside Allen Weisselberg, the organization’s chief financial officer, Donald Trump Jr. also served as a trustee for the revocable trust that was established to hold the company’s assets when Donald Trump took presidential office.

Prior to the commencement of the trial, Judge Arthur Engoron declared that the financial statements produced by Trump were fraudulent. He ordered the appointment of a court receiver to take control over certain Trump assets, including potentially the iconic Trump Tower. However, this action has been temporarily suspended by an appeals court.

Both brothers have publicly denied any misconduct. Eric Trump has made several appearances during the trial and has expressed his views sporadically, mostly via social media platforms. Donald Trump Jr., although not attending the trial in person, has publicly criticized the proceedings, labeling the court as a “kangaroo court” on Newsmax.

In the lead-up to the testimony of the Trump brothers, state lawyers have inquired other witnesses about their leadership roles within the Trump Organization and their historical involvement in the valuation of assets and preparation of financial statements. Both have been mentioned in various emails and documents introduced as evidence in the trial.

David McArdle, an appraiser with commercial real estate firm Cushman & Wakefield, testified that Eric Trump had significant input into the valuation of a planned but never executed townhome project on a Trump-owned golf course. According to McArdle, Eric Trump’s valuation was substantially higher and not deemed credible.

Past depositions from the brothers were presented during the opening statements of the trial. Donald Trump Jr. acknowledged his limited understanding of Generally Accepted Accounting Principles (GAAP), which prosecutors claim were inconsistently followed in the Trump Organization’s financial statements. Eric Trump, in his deposition, seemed to downplay his role within the company, focusing on his operational responsibilities rather than financial decision-making.

Donald Trump has attended several days of the trial but it seems unlikely that he will return to hear his sons testify due to campaign commitments. During his past appearances, he has vociferously criticized the lawsuit, terming it a “sham,” a “scam,” and “a continuation of the single greatest witch hunt of all time.” He also incurred monetary fines totaling $15,000 for violating a gag order with his remarks about a court staff member.

Contributions to this report were made by Jennifer Peltz of Big Big News.

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Frequently Asked Questions (FAQs) about Trump Organization civil fraud lawsuit

More about Trump Organization civil fraud lawsuit

• New York Attorney General Letitia James
• Trump Organization Official Website
• Overview of Civil Fraud Lawsuits
• U.S. Generally Accepted Accounting Principles (GAAP)
• Donald Trump’s Political Career
• Previous Financial Lawsuits Against Trump Organization
• Timeline of the Trump Organization Lawsuit
• Ivanka Trump’s White House Role
• Donald Trump Jr.’s Public Statements
• Eric Trump’s Business Activities