Oct. 5 (UPI) — The first defendant in former President Donald Trump’s New York civil fraud case testified Thursday that the responsibility for accurate financial records fell “squarely on Trump’s shoulders.”
Former Trump Organization controller Jeffrey McConney’s testimony is similar to two other accountant witnesses for firms that have represented Trump’s businesses.
McConney said under questioning from the New York Attorney General’s Office that Trump and the Trump Organization was responsible for providing accurate financial statements to accountants.
Trump has said that a clause he included in the financial statements got him off the hook for accuracy.
Judge Arthur Engoron already has decided in a partial summary judgment that the evidence proves that Trump committed fraud. Engoron also said the clause Trump cited was “worthless” and did not absolve him of responsibility to provide accurate financial statements.
Engoron canceled all business licenses from Trump and co-defendants Eric Trump, Donald Trump. Jr., former Trump Organization finance chief Allen Weisselberg and the Trump Organization.
The civil fraud lawsuit by New York Attorney General Letitia James alleges that at least $250 million in fraud was perpetrated by Trump over many years as he falsely inflated the value of his properties.
The trial is to determine what the penalty will be and to try other allegations.
Trump lashed out again at James on Thursday after Engoron had issued a partial gag order the day before barring Trump from future disparaging comments about court staff.
James on Wednesday described Trump’s social media attacks on her as race-baiting. Speaking to reporters during the trial, James said, “The Donald Trump show is over” when the former president left the proceedings on Wednesday, adding that she will not be bullied by Trump.
Trump was not in court Thursday. He continues to deny business fraud and has indicated he will appeal the decision.
Even as witness testimony continued Thursday, Engoron issued an order outlining the mechanics of dissolving Trump’s New York companies as the penalty for committing a decade-long fraud.
He ordered the defendants to provide a list of business entities “controlled” or “beneficially owned” by Donald J. Trump to the Barbara S. Jones, an independent monitor empowered by the court to oversee Trump’s New York business activities.
Under the order, the parties have 30 days to recommend a receiver to oversee dissolution of Trump’s corporate assets.
