‘s two eldest sons testified on Thursday in the $250m fraud trial of their family firm, asserting that they relied on accountants and others to ensure the accuracy of their financial records.
The New York attorney general’s lawyers questioned the brothers about their knowledge of the financial statements, which prosecutors claim demonstrate that the Trumps played a key role in a scheme to inflate their perceived wealth for financial gain.
“For accounting purposes, I trusted the accountants,” said , the former president’s eldest son, while testifying in court.
“I had no involvement with the financial statements,” stated , Donald Jr’s younger brother.
Prosecutor Colleen Faherty presented several documents to Donald Jr, including an email from a Forbes fact-checker that was sent to the Trump Organization and eventually forwarded to him.
Donald Trump has been embroiled in decades-long disputes with Forbes regarding the publication’s evaluation of his wealth. Last month, he demanded an apology after being dropped from Forbes’ list of the 400 wealthiest people in the US.
In the email, Forbes highlighted that the Trump Organization had claimed Trump’s triplex apartment in Trump Tower spanned approximately 33,000 sq ft, while documents indicated it was actually under 11,000 sq ft.
“There’s an insane amount of material related to the Forbes inquiry,” Donald Jr wrote in response to the inquiry, addressing other Trump Organization executives.
Faherty then presented a letter sent by the Trump Organization to their accounting firm, Mazars USA, who was responsible for compiling the organization’s 2016 statement of financial condition.
In the letter, the Trump Organization affirmed its commitment to “fair presentation” according to generally accepted accounting principles (GAAP). Donald Jr reiterated that they relied on Mazars to provide the information and that the accounting firm was extensively involved in preparing the statement.
Donald Jr and Eric are the first family members to testify in the case brought by New York Attorney General Letitia James. Donald Trump is scheduled to testify on Monday, followed by his daughter Ivanka later in the week.
James’s investigation revealed that the Trumps manipulated their financial records for many years, inflating Trump’s wealth to secure more favorable loan terms.
James is seeking the repayment of $250m in alleged illicit gains by the Trump Organization. The court has moved to terminate the Trumps’ business licenses, which would prevent them from operating in the state. However, the Trumps have appealed this decision, resulting in a temporary hold.
Judge Arthur Engoron has already ruled that the Trump Organization engaged in fraudulent activities. The trial will determine the penalties to be imposed.
In a statement published on X, James declared: “Donald Trump lied about his net worth on his financial statements to obtain loans on much more favorable terms than he deserved. It’s that simple.”
Yesterday, the court heard testimony from a state witness who claimed that banks had granted the Trump Organization lower loan rates based on the inflated financial statements provided by Trump and his deputies. Michiel McCarty, chair and CEO of investment bank MM Dillon & Co, disclosed that the banks collectively suffered $168m in lost interest charges as a consequence.
James argued that it was evident that Donald Jr was aware of the situation. She remarked, “He claims to have little understanding of the accounting and legal mechanics of the family business, but we know he has been involved in running the Trump Organization for a long time.”
