MANHATTAN (CN) — On a short Friday in New York state court in Manhattan, Eric Trump returned to the stand to complete his direct examination in his family’s $250 million civil fraud case.
The 39-year-old, following up clumsy Thursday testimony that appeared to include waves of contradictory statements, continued to fumble over his answers on Friday as he was presented with evidence.
Guided by questioning from Andrew Amer of the attorney general’s office, Eric Trump took full responsibility for former CFO Allen Weisselberg’s controversial $2 million severance package from the Trump Organization.
The terms of the six-page agreement include a non-disparagement clause that instructs Weisselberg not to “criticize or denigrate the company or any of its current or former entities, officers, directors, managers, employees, owners, or representatives.” It also barred him from cooperating with authorities in an investigation into the Trump Organization, “except for acts or testimony directly compelled by subpoena or other lawful process issued by a court of competent jurisdiction.”
Weisselberg signed the agreement on Jan. 9, one day before he was sentenced to five months in prison for tax fraud. He had remained on the Trump payroll even after pleading guilty and testifying as the government's star witness when the case against two Trump-owned businesses went to trial last year — and was still incarcerated when he was supposed to receive the first of eight severance payments on March 31, according to a payment schedule shown in court.
Eric Trump’s signed Weisselberg's severance agreement on behalf of the Trump Organization. Amer asked if Donald Trump had instructed him to do so.
“No he did not,” Eric Trump replied. “I did this agreement with Mr. Weisselberg.”
Before that exchange Amer also pressed Eric Trump about financial statements in which the Trumps listed Mar-a-Lago as a private residence — a move that would increase its value.
“It is very clear that Mar-a-Lago is a private residence, not a club,” Eric Trump said Friday.
However, the Trumps simultaneously assessed the Palm Beach resort as a corporate entity for tax purposes. When presented with the tax paperwork moments later, Eric Trump acknowledged that it is, in fact, a club, seemingly contradicting his earlier testimony that it was a private residence.
“It is used as a private club,” he conceded.
“Did you understand… that by categorizing a portion of Mar-a-Lago as residential it would increase the tax assessment," Amer asked, "because the rate that applies to residential properties is higher than the rate that applies to commercial properties?”
Eric Trump said he was “potentially” aware that was the case.
Trump’s lawyers start a ‘sideshow’ with the judge
During proceedings that lasted just under two hours on Friday, Judge Arthur Engoron Trump chided Trump's lawyers twice over comments they'd made about his law clerk on Thursday.
Engoron opened Friday with a stern warning to Trump’s lead attorney Chris Kise, who made the remark that enraged the judge.
“I hope I made myself clear yesterday,” the judge said.
It wasn’t immediately clear what Kise had said at the time. On Friday morning MSNBC’s Lisa Rubin reported the full quote:
“I'll wait again to get the note that you have from Ms. Greenfield. You may have a question for me. Maybe it is about dinner,” Kise had said Thursday, according to Rubin.
In his immediate response, Engoron blasted Kise's repeated criticisms of the law clerk as “misogyny” and threatened to extend Trump's gag order to his attorneys if the comments continued.
On Friday, Kise said a needed to be able to “make some record” of what he notices in the courtroom that could indicate bias against his clients. He cited a Thursday story from Breitbart, a right-wing news outlet, that accused Engoron’s law clerk of making hefty political donations.
Engoron’s law clerk has become somewhat of a sore spot for the judge. Last month, Trump attacked her on social media by sharing a derogatory tweet about her to Truth Social. Engoron issued a gag order in response to the stunt. Since then, Trump’s lawyers have continued complaining about her conduct, however.
The Breitbart story Kise referenced on Friday was based on a claim from the same Twitter account that created the post that Trump went on to share — a detail the judge didn't appear to notice.
“I’ll let everyone in the room decide what they think about Breitbart,” Engoron joked.
Kevin Wallace of the attorney general's office slammed Kise for his "sideshow" and urged him to file a motion instead of interrupting the proceedings. The judge agreed.
Engoron said he would issue a full written ruling on Friday in response to Kise’s complaints. Donald Trump is slated to take the stand on Monday.
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