Former President Donald Trump is expected to testify later this month. An attorney for Trump Jr. and Ivanka Trump declined to comment, and representatives for the Trump Organization did not respond to requests for comment. The New York attorney general’s office declined to comment. The filings raise the legal stakes for members of the Trump family as they face two investigations, one civil and one criminal, into the accuracy of the Trump Organization’s financial statements. The former president and the Trump Organization have previously denied any wrongdoing and called the political investigation by New York Attorney General Letitia James, a Democrat, politically motivated. In January, James’ office said it had found “substantial” evidence showing the Trump Organization used false or misleading asset valuations on its financial statements to obtain loans, insurance and tax benefits. Trump Jr.’s decision to answer state questions contrasts with that of Eric Trump and former Trump Organization chief financial officer Allen Weiselberg, who both argued they had Fifth Amendment rights when they were impeached in 2020.
In a civil case, the jury can draw an “adverse inference” and find it against people who do not answer questions. This is not the only calculus at play. There was some discussion about the stigma of asserting the Fifth Amendment and how it would play out politically, one of the people familiar with the matter said. In answering questions, Trump Jr. raises his potential legal exposure. He was involved in several properties, including 40 Wall Street, and certified the accuracy of financial statements from 2017 onward, the attorney general’s office said. Ivanka Trump was a key liaison to Deutsche Bank, which loaned the Trump Organization more than $300 million. The financial statements were prepared by accountants inside and outside the Trump Organization. There is also discussion of how properties were valued given the flexibility in valuations. The appraisals were signed by Trump’s longtime appraiser, Cushman & Wakefield, which is also under investigation. The company, which cut ties with Trump after January 6, 2021, has denied any wrongdoing. The banks, which provided financing, also did not lose money on the loans they took out. The New York attorney general’s investigation is at an advanced stage. Attorneys for the office have said publicly that they expect to take some sort of enforcement action, but will engage in discussions with the Trump Organization before a decision is made. Investigators interviewed several current and former Trump Organization officials and employees, including Donald Trump’s former aide Rona Graf and several executives in the finance and accounting department. James’ office called the Trumps late last year. They moved to block the subpoenas, arguing they should not sit for depositions while a criminal investigation was underway. The court rejected their arguments, saying that a criminal investigation does not preclude obtaining evidence. The former President was also found in contempt and fined $110,000 for failing to comply with a subpoena for documents. The judge lifted the contempt order in June. The criminal investigation, led by Manhattan District Attorney Alvin Bragg, has slowed but not stopped. Earlier this year, Bragg would not authorize prosecutors to present evidence before a state grand jury after raising concerns about the strength of the case, CNN reported. A special grand jury evidentiary hearing in the case ended in April, but new ones could be presented in the future. Bragg told CNN in an interview in April: “Anytime you have a parallel civil, criminal investigation, if there’s testimony in that proceeding, obviously we’re going to look at it.” CORRECTION: This story has been updated to reflect that Ivanka and Donald Trump Jr. were scheduled to sit for their depositions in July. It has also been updated with additional background information.