Trump Jr. testifies in $250 million fraud case against family business – The Washington Post

Trump Jr. is one of the defendants in the trial, which began Oct. 2, and is also expected to be called to testify by his attorneys. His testimony is expected to continue Thursday, when his brother Eric, also a defendant, is scheduled to testify.

Their father is scheduled to testify Monday, followed by their sister Ivanka next Wednesday.

The first section of the younger Trump’s testimony on Wednesday focused on establishing his background, including his education and work with the Trump Organization.

While questioned by an attorney with James’s office, Trump Jr. maintained that he had no significant knowledge of the accounting standards known as the Generally Accepted Accounting Principles (GAAP). Evidence at the trial has shown that financial statements prepared by the Trump Organization and distributed to business partners between 2011 and 2021 did not comply with those rules.

“I have no understanding (of GAAP) … that’s what we have CPAs for,” Trump Jr. said, using the common acronym for “certified public accountant.”

Transformed Trump family will take center stage in New York courtroom

The elder Trump last week was briefly called to the witness stand by New York Supreme Court Judge Arthur Engoron in an impromptu hearing over whether Trump violated a gag order by making a public comment about a member of the judge’s staff. Engoron determined that Trump had directed his remark at the staff member, and Trump was fined $10,000.

Trump, his company, the three adult children expected to testify and two of his longtime executives were sued last year by James, who alleged that they committed fraud for 10 years beginning in 2011, inflating Trump’s net worth by as much as $2.2 billion a year. In doing so, the Trump Organization got better interest rates in their loan deals and lower insurance premiums in their dealings with underwriters, according to James’s office.

Trump, Donald Trump Jr. and Eric Trump, who is running the company, remain defendants in the case while Ivanka Trump was dismissed as a defendant in an appellate decision in June.

The defense maintains that no fraud was committed. They have argued that real estate valuations are subjective and that the lenders did not rely on Trump’s annual statements of net worth to make their loan decisions.

Before the trial, Engoron ruled that the defendants and the company broadly committed fraud. The trial, which will be decided by the judge and not a jury, is examining whether the defendants committed specific illegal acts in the course of committing fraud.

The case has the potential to essentially stifle Trump’s ability to conduct business in New York by restricting the ability of officers to do their jobs, by preventing the company from obtaining new loans and from acquiring new properties. The trial involves a civil case, not a criminal one, so no one involved faces any time behind bars as a result.

Trump has appeared at the civil trial several times, even though he isn’t required to do so. He has grimaced during testimony, delivered campaign-style remarks to reporters outside the courtroom and complained repeatedly on social media about what he sees as improper meddling in his private business affairs by James, a Democrat.

He has also criticized Engoron, calling him a “political hack” and protesting that his adult offspring have to appear in court.

“Leave my children alone, Engoron,” Trump posted on social media early Wednesday. “You are a disgrace to the legal profession!”

Trump Jr. and the judge shared a laugh Wednesday over the witness’s assertion that he knows zilch about accounting rules. His only knowledge of GAAP, he said, is that it covers common accounting rules. He learned that in his introduction to accounting course at the Wharton School years ago, he said.

Trump Jr. arrived in the courtroom with a confident stride Wednesday afternoon. While his testimony got underway, he shied away from the more bombastic personality he has displayed on social media and television interviews. Leaving the room for the afternoon break, he paused to hover over the courtroom sketch artist’s work, looking at her drawing of him.

Berman reported from Washington.