Former Trump Organization Controller Testifies That Eric Trump Directed Inflated Valuations of Trump Properties
In a dramatic turn of events at the civil fraud trial involving the Trump Organization, former controller Jeff McConney testified that Eric Trump directed him to make decisions that led to inflated valuations of several Trump properties. McConney, who is also a co-defendant alongside former President Donald Trump, Eric Trump, and Donald Trump Jr., made the revelation on Friday, marking the end of the trial’s first week.
According to internal Trump Organization spreadsheets presented in court, McConney made notations indicating that Eric Trump instructed him in phone conversations regarding property valuations. These valuations later appeared on financial statements that the judge has ruled fraudulent. McConney testified that Eric Trump directed him to factor certain elements into the calculations, resulting in what the New York attorney general alleges are inflated property values for properties such as Seven Springs and the Trump National Golf Club Westchester.
Attorneys for Eric Trump have argued that he was unaware that his phone conversations with McConney were used to determine the value of assets in financial statements for Trump properties.
The trial has been filled with drama, with former President Trump attending for three days and creating a media frenzy. However, he was issued a gag order after making false allegations about one of Judge Arthur Engoron’s clerks. Trump’s attorney, Christopher Kise, described the trial as “chaos” during a separate appeals court hearing on Friday.
Allen Weisselberg, Trump’s long-time chief financial officer who served five months in prison for his involvement in a tax fraud scheme, is expected to testify when the trial resumes on Tuesday.
During his testimony, McConney detailed the methodologies he used to calculate asset valuations, highlighting improper practices flagged by the attorney general’s office. For example, McConney admitted to valuing Mar-a-Lago as if it could be sold as a private residence, unaware that Trump had restricted its use to a social club since 2005. He also acknowledged that the value of apartments at Trump Park Avenue was calculated without considering their rent-stabilized status, significantly affecting their real estate value.
Furthermore, McConney and Weisselberg allegedly increased the value of several Trump golf clubs by factoring in the brand premium associated with Trump’s name on the properties. Annual statements of financial condition included a note acknowledging the financial value of the Trump name, which was not reflected in the financial statements.
McConney revealed that he included the value of unbuilt homes at Trump’s Seven Springs development and unbuilt units at Trump’s Briarcliff golf course in their valuations, even though the necessary approvals for these developments were pending.
In a forceful move, Andrew Amer, special counsel to the New York attorney general, reminded the judge that McConney had previously admitted to committing fraud at the behest of Weisselberg out of fear of losing his job. Amer also emphasized that McConney aided Weisselberg in evading taxes and even helping Weisselberg’s wife illegally obtain social security benefits.
The trial is set to continue next week, with Allen Weisselberg anticipated to provide further insight into the alleged fraudulent practices within the Trump Organization.