November 1, 2023

“I don’t recall”: Donald Trump’s eldest son testifies in New York civil trial, claiming repeatedly: “I don’t recall”, distancing himself from documents at center of fraud trial.

Donald Trump Jr took the stand in the ongoing fraud trial against his father and the family business on Wednesday and tried to distance himself from the financial statements at the center of the case.

Trump’s eldest son, 45, is the first family member to testify in the civil trial brought by the New York attorney general, Letitia James. His younger brother Eric is expected to testify on Thursday, with Trump and his daughter Ivanka expected in court next week.

In court, Trump Jr was polite and courteous after his testimony was delayed as Trump’s lawyers quizzed earlier witnesses. When asked to slow down, the fast-talking Trump Jr said: “I apologize, your honor. I moved to Florida, but I kept the New York pace.”

Trump Jr was asked a series of questions about the roles he, his father and Trump’s former chief financial officer, Allen Weisselberg, had as trustees of the Donald J Trump Revocable Trust, which holds assets for the “exclusive benefit” of the former president. When asked whether his father was still a trustee of the trust, Trump Jr said: “I don’t recall.”

He said he did not recall much, including why there was a brief period in 2021 when he had resigned and then been restored to the trust. Trump Jr said there was “autonomy to do what I wanted” but that he consulted with Weisselberg and others. Pressed on his role in creating the financial statements at the heart of the case, Trump Jr said: “The accountants worked on it. That’s why we pay them.”

James has accused Trump, his eldest sons and other Trump executives of fraudulently inflating the former president’s wealth to secure better loans from banks. In one example, James said Trump claimed his Trump Tower triplex apartment was 30,000 sq ft, rather than its actual square footage of 10,996.

Judge Arthur Engoron has already ruled that the Trumps committed fraud. He is holding the trial to determine the penalty that should be meted out. James has asked for $250m and the cancellation of Trump’s business licenses in New York – a move that would end the Trumps’ ability to run businesses in the state.

Earlier in the day, one of the attorney general’s witnesses testified about the losses he believes banks suffered because of Trump’s alleged fraud. Michiel McCarty, the chair, and CEO of investment bank MM Dillon & Co said the inflation of Trump’s wealth allowed the Trump organization to secure better rates for loans. He calculated the banks lost more than $168m in interest payments as a result.

Trump’s lawyers asserted that the banks had not been misled: “They are not ill-gotten gains if the bank does not testify it would have done it differently,” Trump’s lawyer Christopher Kise said. “I decided these were ill-gotten,” Engoron replied.

Eric and Ivanka Trump are next in line to testify in the New York civil trial.

As for now, it is not looking very good for Donald Trump, the members of his family and The Trump Organization.

Trump, his businesses and his two adult sons are accused of inflating assets by as much as $1.9 billion to $3.6 billion per year between 2011 and 2021 to save hundreds of millions of dollars on loans and insurance.

The judge in the case, Justice Arthur Engoron, ruled on Sept. 26 that James had proven Trump, and his co-defendants fraudulently inflated his assets. That means the trial will largely concern how much they must pay in penalties.

While Trump is not facing any criminal penalties in this civil case, he could suffer substantial financial and business consequences.

James is seeking at least $250 million in penalties, a ban against Trump and his sons Donald Jr and Eric from running businesses in New York, and a five-year commercial real estate ban against Trump and the Trump Organization.

Engoron in his ruling, already ordered the cancellation of certificates that 10 of Trump’s business entities need to operate some of his marquee properties, including Trump Tower and his golf clubs in New York, and said he would appoint independent receivers to oversee their “dissolution.”

The full implications of that ruling on Trump’s opaque network of business holdings is not yet clear, but the trial could provide clarity over whether the assets at the center of the dispute will be liquidated.

One thing is undeniable: The “Trump Brand” is going down the drain and this is of enormous consequences not only for Donald Trump himself, but for every member of his family individually and their personal business ventures.

JMD

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