Donald Trump Jr. testified in the fraud trial on Wednesday, denying responsibility for the financial statements that led to a $250 million fraud lawsuit against his family and business. He claimed that he relied on accounting firm Mazars USA to prepare the company’s financial statements and had no significant knowledge of the accounting standards known as the Generally Accepted Accounting Principles (GAAP). However, legal analysts argue that Trump Jr. has some legal responsibility to ensure the accuracy of these statements.
CNN legal analyst Norm Eisen stated that there is evidence showing that the Trump Organization’s financial statements did not comply with GAAP. He believes that New York State set up Trump Jr. and predicts that his testimony will not bode well for him or the Trump family’s standing in the case. Trump Jr. will continue his testimony on Thursday, followed by his brother Eric Trump.
Fellow CNN legal analyst Elie Honig pointed out that Trump Jr. did not argue that the inflated valuations at the heart of the lawsuit were accurate. Instead, he distanced himself from these valuations, claiming he was not part of the process. Honig also highlighted the inherent risk in Trump Jr. taking the stand, as his testimony could potentially lead to criminal charges.
Former federal prosecutor Kristy Greenberg criticized the Trumps’ tendency to pass the blame onto others, such as the CFO or the accountant. However, she emphasized that Trump Jr. ultimately signed the financial statements and claimed they were accurate, making it difficult for him to distance himself from them.
Judge Arthur Engoron, who is presiding over the trial, had already found the Trump family and company liable for persistent fraud. The trial will determine the scope of the sanctions. Conservative attorney George Conway believes that Trump Jr.’s testimony will not help their case and that the judge may question its credibility. Conway also highlighted the financial restrictions already imposed on the Trump Organization.
Trump himself is expected to testify next week, and Ivanka Trump has been ordered to testify as well, although she has appealed the ruling. Legal analyst Eisen believes that she is unlikely to be successful in her appeal and predicts that she will be forced to testify. Eisen believes that Ivanka Trump’s testimony could be damaging to her family and the Trump Organization, as she has firsthand evidence regarding the valuation discrepancies.
