In the civil trial for financial fraud that poses a significant threat to former US President Donald Trump's business empire, Donald Trump's adult sons are scheduled to testify this week. According to the court's timetable, the eldest son, 45-year-old Donald Trump Jr, is set to take the witness stand on Wednesday, while his younger brother, Eric Trump, 39, is scheduled for Thursday.
These two individuals, both executive vice presidents of the Trump Organization, are key figures within a vast network of companies that oversee residential and office skyscrapers, luxury hotels, and golf courses across the globe.
New York State Attorney General Letitia James has leveled accusations of fraudulent inflation of the group's assets' value by billions of dollars against the brothers, as well as their father. This alleged inflation was purportedly done to secure more favorable bank loans and insurance deals.
Following their testimony, Ivanka Trump, who left the Trump Organization in 2017 to serve as an advisor to her father in the White House, is expected to appear two days later. It's important to note that she is not a target of the lawsuits.
Having taken control of the family business during their father's tenure in the White House, Donald Trump Jr and Eric Trump have consistently supported their father, publicly demonstrating their loyalty through media appearances and social media engagement. Their testimony is expected to align with the defense strategy that has been maintained by the family's legal team since the trial's commencement approximately a month ago.
The defense's core argument centers around the contention that the group's assets, including properties like Trump Tower and the building at 40 Wall Street, possessed no objective value, and valuations were based on genuine, subjective assessments. The defense maintains that banks did not suffer financial losses when they extended loans to the Trump Organization.
In contrast, former President Trump has made unproven claims that the trial is "rigged" and conducted by a "corrupt" state attorney and a "rogue" judge, Arthur Engoron, who is allegedly in league with Democrats to prevent his return to the White House.
President Trump frequently attends court hearings, taking the opportunity to hold impromptu press conferences in crowded court hallways, portraying himself as a victim of judicial conspiracies. This conduct is consistent with his approach in the four other criminal cases in which he is currently facing charges, notably in connection with efforts to overturn the 2020 presidential election.
In some instances, judges have imposed gag orders to prevent him from attacking court personnel or witnesses. In New York, Judge Engoron has fined President Trump $5,000 and $10,000 for violating these orders and attacking his clerk, both of which have been paid in full.
The high-profile nature of the case is underscored by President Trump's attendance at the hearings, as it could potentially lead to him relinquishing control of a portion of his real estate holdings, facing a $250 million fine, and encountering a ban on managing companies in New York state, even if a conviction does not carry a jail term.
Even before the trial commenced on October 2, Judge Engoron had determined that the prosecution had provided "conclusive evidence that between 2014 and 2021, the defendants overstated assets" by amounts ranging from "$812 million (to) $2.2 billion," depending on the year. He ordered the liquidation of the companies due to "repeated fraud," a significant legal development, though his decision was suspended pending appeal.
The ongoing trial is expected to further explore potential violations of financial laws and determine the appropriate fine, if any, to be imposed.
