During consecutive testimonies on Thursday, the two adult sons of former President Trump distanced themselves from the financial statements of the Trump Organization, a crucial aspect of the New York attorney general’s case against their family business.
According to The Hill, both Donald Trump Jr. and Eric Trump disavowed any direct involvement in the creation of their father’s financial statements. They claimed that they relied on accountants and other experts to ensure the accuracy of the numbers.
These financial statements, which outline the value of the Trump Organization’s assets and were used for securing loans and deals with banks and insurers, are central to the attorney general’s lawsuit. The lawsuit alleges that the Trump Organization manipulated the value of its assets to benefit from lower taxes and improved insurance coverage.
Donald Trump Jr., the eldest son, admitted to signing off on his father’s financial statements as an executive vice president of the Trump Organization and a trustee of the trust holding Trump’s assets during his presidency. However, he emphasized that he trusted the expertise of accountants and executives, such as former Chief Financial Officer Allen Weisselberg.
“As a trustee, I have an obligation to listen to those who are experts in these matters,” explained Donald Trump Jr.
Eric Trump, the former president’s second son, similarly denied any involvement in the financial statements. Nevertheless, during the trial, state lawyer Andrew Amer presented a 2013 email suggesting Eric Trump’s knowledge of his father’s annual financial statement.
When questioned about this email, Eric Trump acknowledged, “It appears that way.”
The legal team representing Trump has sought to shift the responsibility for the discrepancies in the financial statements from the former president and his family to the accountants who prepared them. An ex-Trump accountant, Donald Bender, faced cross-examination during the trial, with Trump’s lawyers attempting to portray him as negligent.
Amid an argument about the nature of questions directed at Bender, Judge Arthur Engoron stressed that the accountant was not the one on trial. Trump’s attorney, Chris Kise, disagreed, highlighting Bender’s professional obligations as a certified public accountant.
Before the trial began, Judge Engoron found Trump, the Trump Organization, and Trump’s sons liable for fraud, affirming that the New York attorney general’s office had substantiated the core of their case. This decision led to the revocation of some of Trump’s business licenses and put some of his prominent properties at risk. However, an appeals court temporarily halted the business license cancellations pending further review.
The trial will determine the amount of penalties that the defendants must pay and may establish individual liability for the fraud. An expert witness hired by the New York attorney general’s office testified that the Trump Organization’s inflated financial statements might have cost banks over $168 million in interest.
New York Attorney General Letitia James has requested $250 million in penalties and a prohibition on Trump and his children serving as officers or directors of New York companies.
Trump is expected to testify in the ongoing fraud trial next week.