In a bombshell revelation during the civil fraud trial involving the Trump Organization, a former executive, Jeff McConney, testified that Eric Trump directed him to inflate the values of certain properties. Internal documents revealed notations by McConney indicating Eric’s involvement in phone conversations about property valuations deemed fraudulent by the judge.
During McConney’s testimony, he revealed that Eric Trump directed him to consider specific factors in the calculations, ultimately leading to inflated valuations of properties like Seven Springs and the Trump National Golf Club Westchester, according to the New York attorney general.
Attorneys representing Eric Trump argued that he was unaware that phone conversations with McConney were being used to determine property values in the financial statements for Trump properties. As noted by CNN, however, their argument was quickly nullified by the amount of evidence presented by the prosecutors.
McConney also highlighted the addition of a “brand premium” to Trump golf clubs’ values, emphasizing the financial value of the Trump name acknowledged in annual statements. Additionally, the values of apartments at Trump Park Avenue were calculated without factoring in that they were rent-stabilized, significantly lowering their real-estate value.
Don't Miss
In valuing Trump’s Seven Springs development, McConney included the value of homes not yet built, following the direction of Eric Trump. Similar practices were applied to Trump’s Briarcliff, New York golf course, where 71 unbuilt units were included as realized profits in valuations, even when development approvals were on hold.
The prosecutor, Andrew Amer, revisited McConney’s testimony from the previous Trump Organization tax fraud trial, where McConney admitted to committing fraud at Weisselberg’s request due to fear of losing his job. The defense objected, but Amer reminded the judge of McConney’s involvement in illegal activities, including aiding tax evasion and facilitating illegal benefits for Weisselberg’s wife.
