Live updates: Eric Trump testifies in New York civil fraud trial | CNN Politics

Eric Trump continues testimony in civil fraud trial

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Donald Trump's sons take stand in civil fraud trial
2:22 • Source: CNN
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2:22

What we covered here

  • Donald Trump’s son Eric Trump was back on the stand Friday for roughly an hour in his second day of testimony in the New York civil fraud case against him, his family and their business.
  • The New York attorney general’s office pressed Eric Trump and his brother Donald Trump Jr. in tense exchanges this week about their knowledge of and involvement with the financial documents at the center of the $250 million lawsuit. The attorney general’s lawyers presented evidence intended to challenge claims that the brothers were not involved with the former president’s statements of financial condition.
  • Trump’s adult sons are accused in the lawsuit of knowingly participating in a scheme to inflate their father’s net worth to obtain financial benefits like better loan and insurance policy terms. The case is civil, not criminal, but threatens Donald Trump’s business in New York. The former president is scheduled to testify on Monday.

Our live coverage has ended. Read more about today’s developments in the posts below.

13 Posts

Eric Trump is off the stand; Donald Trump is next on Monday

Eric Trump’s two days in court have ended after roughly an hour on the stand Friday.

Speaking to the media outside of the courtroom, he touted the success of his family’s company and decried the trial as a “witch hunt” for “political purposes.”

Next up on the stand is his father, Donald Trump, who on Monday will testify in a historic moment where the former president will be publicly under oath to discuss his business practices (He has previously testified in depositions.)

“The only witness will be Donald J. Trump,” assistant attorney general Andrew Amer said when Judge Arthur Engoron asked who would be testifying when court reconvenes on Monday.

Eric Trump told reporters his father is “fired up” to be coming to New York and testifying.

Judge overseeing Donald Trump’s civil fraud trial expands gag order

The judge overseeing Donald Trump’s civil fraud trial has expanded the gag order in the trial to extend to Trump’s attorneys after they raised multiple questions about the judge’s communications with his law clerk. 

In a written order Friday, Judge Arthur Engoron prohibited Trump’s attorneys from making any further comments about confidential communications between the judge and his staff inside or outside of the courtroom.

The judge said violating the order would result in “serious sanctions.”

Ivanka Trump withdraws her appeal of judge's order requiring her testimony in civil fraud trial next week

Ivanka Trump withdrew her appeal of a judge’s order requiring her to testify at the civil fraud trial next week after an appellate court refused to pause her testimony. 

Thursday night an appeals court denied Trump’s request to postpone her testimony until her lawyers could make arguments before the panel that she shouldn’t be required to appear. 

Ivanka Trump argued a “hardship” to testify during the school week when she had young children. She also argued that since she is no longer a defendant in the lawsuit and does not live in New York state she shouldn’t be required to appeal. The trial judge previously rejected those arguments. 

In dropping her appeal, her attorney’s said since she is scheduled to testify on Wednesday, before she can make her legal arguments, the appeal is now “moot.” 

Eric Trump pressed about Mar-a-Lago tax status

Eric Trump, son of former President Donald Trump, right, waits to testify at New York State Supreme Court on Friday, November 3.

Assistant Attorney General Andrew Amer questioned Eric Trump about Mar-A-Lago and it’s tax assessment with the municipality in Florida in 2021 as a commercial property run as a social club — not a private residence like it was valued on Trump’s personal financial statements.

In a 2021 email thread shown in court, an adviser counseled Eric Trump and Allen Weisselberg that reassessing even part of the property that holds Trump’s private home at Mar-a-Lago would increase the taxable assessed value and raise the property taxes.

Eric Trump testified it was his understanding that Mar-A-Lago is private residence that can be sold to an individual.

“We have the absolute zoning right to do so,” he said.

The former president’s son also confirmed it is a social club, but earlier at trial, the attorney general’s office presented a 2005 document in which Donald Trump deeded away his right to use the property for any other purpose other than the social club.

Judge to issue written order on what can be said about his law clerk

Judge Arthur Engoron said he will issue a written order Friday afternoon on what can and can’t be said during the New York civil fraud trial about his staff after more discussion about the role of his law clerk during the hearing.

Donald Trump’s lawyers and Engoron ended Friday’s court hearing just as it started — arguing about objections over the judge’s law clerk. Engoron said he’ll consider Trump’s team objecting to his communications with his law clerk a standing objection and will continue to do so.

He also asked them to stop talking about it.

“Let’s not belabor this point. There’s no more need to make a record. There’s such a complete record. You’ve made speeches, you’ve made observations,” Engoron said. “What more record do you want?”

Kevin Wallace from the attorney general’s office called Kise’s complaints about the clerk a “side show,” suggesting Trump’s team was “trying to blow up the trial.”

Trump attorney Chris Kise responded by saying that it was important for Trump’s team to be able to raise objections to conduct in the courtroom contemporaneously so they can include it in the court record.

“Whether we will make a motion now or not, that’s something we will determine,” Kise said. “That’s something very different for an appellate record that needs to be complete for appellate purposes.”

Eric Trump says accounting firms and legal team provided "perfect" financial statements

Eric Trump, son of former President Donald Trump, second from left, waits to testify at New York State Supreme Court on Friday, November 3.

Assistant Attorney General Andrew Amer continued questioning Eric Trump Friday about his involvement in his father’s financial statements that he signed for.

When Amer showed annual compliance certificates that Eric Trump signed on behalf of his father in 2020 and 2021 for Deutsche Bank loans, the former president’s son said he stands by the financial statements submitted.

“I believe everything in the statements was accurate,” he said, adding that what Deutsche Bank did with the statements was “within their purview.”

Amer asked Trump’s son if he intended for the compliance certificate to be accurate when he submitted the forms to Deutsche Bank.

“I would not sign something that was not accurate,” he added. “I relied on our accounting office. I relied on one of the biggest accounting firms in the country and I relied on a great legal team, and when they gave me comfort that the statement was perfect, I was more than happy to execute it.”

Amer also asked Eric Trump about what happened after New York Attorney General Letitia James announced her investigation into the Trump Organization in 2019.

Eric Trump said there were “thousands of phone calls about the statements of financial condition,” after the attorney general announced her investigation.“There’s no question there were conversations about the statements of financial condition after this action started,” he said.

Trump lawyers and Judge Engoron spar over role of judge's clerk, again

Friday’s court session in Donald Trump’s New York civil fraud trial began with another extended debate about the role of Judge Arthur Engoron’s principal law clerk.

On Thursday, Engoron and Trump attorney Chris Kise had a tense argument about his clerk in response to criticism of her, prompting Engoron to threaten to extend his gag order barring public commentary on members of his court staff.

Kise picked up the debate Friday morning with a lengthy speech complaining about the clerk, raising an allegation from a right-wing website and claiming that the political bias could be cause for a mistrial.

Engoron defended his rulings and his clerk’s role in the trial, sitting alongside him, saying he believes he is deciding issues in the trial “right down the middle.”

Assistant Attorney General Andrew Amer said if Trump’s team has evidence of extrajudicial conduct that suggests the law clerk is biased then they should go ahead and make a motion. “Making speeches,” he said, was “wasting a lot of time.”

More context: Engoron’s clerk, who sits alongside him on the bench, has played a significant role in the commentary of the trial. After Donald Trump attacked the clerk on social media in the first week of the trial, Engoron imposed his gag order on commentary about his staff. Trump has since been fined twice for violating the gag order, including comments he made to reporters while outside the courtroom last week, which prompted Engoron to briefly put Trump on the stand.

Tense exchanges unfolded Thursday over Eric Trump's knowledge of his father's financial statements

In this courtroom sketch, Eric Trump testifies during the Trump Organization civil fraud trial in New York State Supreme Court on Thursday.

Assistant Attorney General Andrew Amer’s examination of Eric Trump grew tense Thursday as the son of the former president grew visibly agitated when pressed about his understanding of his father’s financial statements that were used to support real estate transactions. 

Amer used a series of emails dating as far back as 2010 and phone conversations to argue that Eric Trump was familiar with the statements, contradicting his testimony. 

For instance, there was a series of February 2012 emails regarding the purchase of a golf club in Charlotte, North Carolina, which referenced a club board member reviewing personal financial statements at the Trump Organization’s New York office to ensure the club board of the company’s ability to run the club. In the email, Eric Trump expressed his concern over the confidentiality of the financial information to the board member. 

Amer pushed Eric Trump to acknowledge that, based on the written exchange, he must have known by 2012 that his father had personal financial statements used to support real estate transactions. Eric Trump asserted that the records shown in court don’t prove that the board member reviewed the statements of financial condition at issue in the civil case. 

“I understand we had financials as a company,” Eric Trump said. “I was not personally aware of the statement of financial condition. I did not work on the of financial condition. I’ve been very, very clear on that.” 

Amer then pointed back to Jeff McConney’s supporting data spreadsheet valuing Seven Springs, suggesting Eric Trump must have known about his father’s financial statements by the time that spreadsheet was created later that year. (McConney is a co-defendant.)

Amer also showed the court an email dated August 20, 2013, that former controller Jeff McConney sent Eric Trump expressly asking for help to value Seven Springs on his father’s annual financial statement. McConney also attached the supporting data spreadsheet for the previous year’s statement detailing the Seven Springs valuation including the note about a conversation with Eric in 2012. 

Still, Eric Trump sought to distance himself from the statement, suggesting his input to McConney was related to plans for land development and not the values ascribed to the property on the spreadsheet. 

Eric Trump arrives at Manhattan courthouse

Former President Donald Trump's son and co-defendant, Eric Trump, walks to attend the Trump Organization civil fraud trial, in New York State Supreme Court in the Manhattan borough of New York on November 3.

Former President Donald Trump’s adult son, Eric Trump, has arrived at the courthouse in downtown Manhattan ahead of testimony in the New York attorney general’s ongoing civil fraud trial.

Eric Trump is expected to resume his testimony this morning after spending time on the stand Thursday afternoon.

Why there's no jury for Trump's New York civil fraud case

Former President Donald Trump has complained repeatedly that the civil trial in New York, where he’s accused of business fraud, does not have a jury – and the fate of the case is up to Judge Arthur Engoron.

Trump’s lawyers say the New York state law that state Attorney General Letitia James used to bring the complaint against him – a civil statute giving the state attorney general wide latitude to go after “persistent fraud” in business – did not allow him to request a jury trial.

But legal experts familiar with New York state law say that the question of whether Trump could have sought a jury trial is complicated. While Trump may not have been likely to succeed, experts said the question of a jury trial is something that Trump’s lawyers could have tried to litigate.

At the start of the trial, Engoron noted that no parties in the case requested a jury trial and that the law mandated a “bench trial” decided by a judge.

“You have probably noticed or already read that this case has no jury,” Engoron said. “Neither side asked for one and, in any event, the remedies sought are all equitable in nature, mandating that the trial be a bench trial, one that a judge alone decides.”

Trump’s lawyers have pushed back on the notion that they failed to request a jury trial, as some have suggested based on paperwork filed in the case.

“Under 63 (12), which is what this case is, you don’t have a right, an absolute right to a jury,” Trump lawyer Alina Habba said on Fox News previously.

A Trump spokesperson said that the attorney general “filed this case under a consumer protection statute that denies the right to a jury.”

“There was never an option to choose a jury trial,” the spokesperson said. “It is unfortunate that a jury won’t be able to hear how absurd the merits of this case are and conclude no wrongdoing ever happened.”

In other legal cases that the former president has faced, however, Trump and his attorneys have lamented that he is unable to receive a fair verdict from a jury in New York. After a New York jury found that Trump sexually abused E. Jean Carroll in 1996, attorney Joe Tacopina said that Trump is “firm in his belief” that he cannot get a fair trial in New York City “based on the jury pool.”

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Here's what is at stake in Donald Trump's civil fraud trial in New York

The New York civil fraud trial against former President Donald Trump, his eldest sons, their companies and Trump Organization executives is expected to continue Friday with more testimony from Eric Trump.

The civil trial over inflated assets in fraudulent financial statements started last month just after a shocking ruling by Judge Arthur Engoron at the end of September that found Trump and his co-defendants are liable for “persistent and repeated” fraud.

Trump inflated his net worth by as much as $3.6 billion in three separate years between 2011 and 2021, according to the attorney general’s office. Attorneys for Trump have refuted the claims, arguing that asset valuations are highly subjective and that they are still sorting through what the ruling means for the company’s future.

What’s at stake at trial: Trump and his companies could be forced to pay hefty sums in damages for the profits they’ve allegedly garnered through their fraudulent business practices. 

Engoron will consider just how much the Trumps and their businesses will have to pay. 

Since Engoron has already ruled on one of the claims — persistent and repeated fraud —he will now decide on the six other claims:

  • Falsifying business records
  • Conspiracy to falsify business records
  • Issuing false financial statements
  • Conspiracy to falsify false financial statements
  • Insurance fraud
  • Conspiracy to commit insurance fraud

Engoron set aside more than three months for the trial, which could continue through late December.

What to know about Thursday's testimony from Trump's adult sons in the New York fraud case

Donald Trump Jr. and Eric Trump on November 2.

The New York Attorney General’s office pressed Donald Trump’s two adult sons Thursday about their knowledge of and involvement with the former president’s financial statements in some of the most significant and tense days of the fraud trial.

The back-to-back appearances Thursday from Donald Trump Jr. and Eric Trump — who both helped run the Trump Organization while their father was in the White House — comes ahead of the former president’s own testimony on Monday.

Donald Trump Jr. and Eric Trump are co-defendants in the case, along with their father, the Trump Org., and several company executives.

Here are some key takeaways from the day in court:

Eric Trump confronted with emails showing his work on Trump’s finances: Assistant Attorney General Andrew Amer’s examination grew tense as he pressed Eric Trump about his understanding of his father’s financial statements that were used to support real estate transactions and confronted him with a series of emails dating back to 2010.

Eric Trump acknowledged he provided information to former Trump Organization controller Jeff McConney, who is also a co-defendant in the trial. But he tried to distinguish between specific statements of financial condition — his father’s personal financial statements at the heart of the civil case — and general financial records for the company.

The distinction is relevant because Donald Trump’s statements of finances are the documents that the attorney general pointed to as evidence that he inflated the values of his properties to boost his net worth — and obtain favorable loan terms.

An expert witness for the attorney general testified Wednesday the Trump Organization saved $168 million thanks to the loan rates obtained with the help of fraudulent information.

Donald Trump Jr. said he relied on accountants: Donald Trump Jr. repeatedly said he relied on his accountants and was not involved with the preparations of financial statements for his father, even though he signed them as a trustee of his father’s revocable trust.

He testified that he didn’t draft the financial statements, and when he certified them as a trustee, he relied on the Trump Organization accounting and legal teams that he said assured him they were accurate to sign.

The attorney general’s office and Trump’s lawyers got into a lengthy back-and-forth over attorney-client privilege after Faherty asked what steps the Trump Organization had taken once the attorney general’s investigation into the company began in 2019.

Some internal policies and methodologies “have been bolstered” since the investigation began, Trump Jr. said. One of those changes, he said, was hiring a chief financial officer who is a certified public accountant.

Read more about the Trumps’ fraud case here.

Analysis: Trump launches new attack on the legal system after his adult sons' testimony

Republican presidential candidate former President Donald Trump speaks Wednesday, Oct. 11, 2023, at Palm Beach County Convention Center in West Palm Beach, Florida.

It was a rough day in court for the Trump boys.

But even before Donald Jr. and Eric had wrapped up an unconvincing day of testimony in a New York civil fraud trial, their father erupted.

“So sad to see my sons being PERSECUTED in a political Witch Hunt by this out of control, publicity seeking, New York State Judge, on a case that should have NEVER been brought,” ex-President Donald Trump posted on his Truth Social. “Legal Scholars Scream Disgrace!”

The ex-president was wasting no time in firing up the classic divert, discredit and delay defense strategy that he’s deploying across his staggeringly broad legal exposure that includes four looming criminal trials weighing on his 2024 White House bid.

Trump’s latest blast against Judge Arthur Engoron, who has already found Trump, his two adult sons and their family empire – the Trump Organization – liable for fraud, also served as a preemptive blow ahead of the ex-president’s own expected testimony in the civil trial in the courtroom on Monday. The sometimes strange goings on at the court in New York are offering early insight into how the even more high-profile and criminal cases facing Trump could play out in an unprecedented election year when the campaign trail will run through the courts as well as key swing states.

Trump’s legal defense has become indistinguishable from his presidential campaign as he struggles to cope with accountability imposed by courtroom procedures but portrays himself as a victim of political hounding. Just as he tarnished the reputation of the US electoral system among millions of his supporters with false claims of election fraud, the ex-president is now seeking to trash the image of another pillar of American democracy: the courts. And characteristically, he is accusing President Joe Biden, his Justice Department and various prosecutors of being guilty of the very transgression that he himself perpetrated as he portrays the cases against him as “Election Interference.”

Trump put his two adult sons in charge of his real estate firm when he became president, but despite their positions of authority, both insisted they had very little to do with dealing with their father’s financial statements, which were used in securing loans on the firm’s behalf.

“That’s not the focus of my day. I focus on construction. I don’t focus on appraisals,” Eric Trump said at one point, after a long exchange in which Assistant New York Attorney General Andrew Amer tried to show his deep involvement in the affairs of a development at a Trump golf course in New York.

Read the full analysis of Trump’s fraud case here.

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