Appraiser Says Eric Trump Pushed For Property Values Three Times His Estimates At Fraud Trial

On Thursday, former President Donald Trump’s civil fraud trial shifted focus to his son, Eric Trump. 

Testimony and documents indicated that Eric had sought a “lofty” value for a golf course and was actively involved in the properties’ appraisals.

Eric says he has no recollection of these actions. 

The trial is based on claims by New York Attorney General Letitia James, who alleges that Trump, his company and executives, Eric included, fraudulently inflated asset values on financial statements provided to lenders and insurers.

The defendants have denied the accusations, and Trump continues to assert that the values were in reality underestimated.

About a decade ago, Trump’s companies sought appraisals for two of their properties in New York’s suburban Westchester County – the Trump National Golf Club and the estate Seven Springs. At the time, the companies wanted to explore the option of conservation easements for the properties – an agreement where development is relinquished in exchange for a tax benefit.

David McArdle, an appraiser with the commercial real estate firm Cushman & Wakefield, said he was asked in 2013 to figure out how much the golf course would be worth were 71 high-end townhomes built there.

He got extensive input from Eric, who sent McArdle his suggestions of properties to use for comparison, and argued that none of the other properties had “close to the amount, quality or kind of amenities.”

McArdle settled on a price of $45 million. Through a series of emails, he and lawyers for the Trump company strategized how to present the price to their client.

McArdle said that Eric had expected a much more “lofty” value, but any higher number wouldn’t have been credible. The email chain eventually concluded that they simply needed to tell Eric to “accept the value from the professionals.”

McArdle then received a message from Eric to hold off on the appraisal until further notice while he spoke to one of his lawyers. 

James’ lawsuit notes that Trump’s financial statements went on to list the golf course at values that exceeded $100 million even though the townhomes weren’t even built.

McArdle was hired in 2014 to evaluate the Seven Springs estate, a mansion and 213-acre property that spans across three Westchester County towns. He concluded that the estate could be divided into two dozen building lots for luxury homes.

McArdle said that once again, Eric enthusiastically highlighted the positive qualities of the property and presented a supposedly similar development in Connecticut where individual lots were sold for up to $3 million each.

McArdle says that he eventually advised Eric that Seven Springs was worth up to $50 million.

A few months later Trump’s financial statements valued Seven Springs at over $160 million.

When asked about McArdle, Eric said he only “vaguely” recognized him and did remember anything about the appraisals.

James is seeking $250 million and a ban on Trump and other defendants doing business in New York.

Both Eric and Donald Trump have attended some of the trials, but neither was present on Thursday when the court also heard about a $160 million refinancing loan on a Trump-owned Wall Street office building in 2015.