14/ Klasfeld:

Questioning now turns to Deutsche Bank.

According to the lawsuit, her husband Jared Kushner arranged the initial meeting with the Deutsche’s managing director Rosemary Vrablic and Donald Trump Jr.

She's being asked about Vrablic now.

15/ Klasfeld:

Asked whether the Trump Org was selected as a "stalking horse bidder" for the Doral property, Ivanka agrees.

[Yay, I found Lisa Rubin]:

And now, with little fanfare, Solomon has started discussing the relationship between the Trump Org and Deutsche Bank. He asks whether she understands Trump once had a relationship with DB through its commercial division, including with respect to a loan on the Chicago property.

16/ Rubin:

Ivanka has referenced her August 2022 investigative interview multiple times now, including referring to documents shown to her at that interview. 👉🏼That she has been well, if transparently, prepped is clear.👈🏼

In connection with discussing the financing Trump sought for Doral, Ivanka says her goal with Doral was to “reposition” it as a luxury property. And here comes the first document in today’s examination.

17/ Reminder: Redundancies in posts:

MacFarlane:

A series of questions about Doral golf course. Ivanka says, "The reason we bought the property was because we believed in its potential to be something better than it was”

Prosecutor shows Ivanka a 2011 email she'd sent to a bank .. in which she says her father would send over his "financial statement by hard mail"

👉🏼Ivanka says she doesn't recall said email👈🏼 [1st “I don’t recall”… DRINK!]

18/ Klasfeld:

On Aug. 23, 2011, Ivanka Trump sent an email to a man named Andy Beal with the subject line “Doral."

In the body, she told Beal: “My father will also send you his most recent financial statement by hard mail.”

She forwarded the message to Allen Weisselberg and others.

19/ Rubin:

In a 2011 email to someone named Andy Beal, Ivanka promises her father will send him his most recent financial statement via “hard mail.” She does not recall whether Beal requested that document; the conversations with Beal Bank were brief & never reached the term sheet stage.

20/ MacFarlane:

Prosecutor shows Ivanka another 2011 email. Then a 2011 term sheet She continues to say 👉🏼she doesn't remember the documents.👈🏼 [DRINK!]

But when pressed by prosecutor, she adds that she has "no reason to believe" that those are NOT her documents

21/ Via Pagliery:

She's being questioned by Louis Solomon, the chief of enforcement at the AG's real estate finance bureau.

Via Emptywheel:

Already Ivanka comes off as FAR better prepped than the men in the family (who, unlike her, are defendants).

But it also SEEMS from the coverage that this testimony is an advertisement that Trump Org has lost their one competent executive.

I mean, everyone else pretended to be stumped by what GAAP are.

22/ MacFarlane:

A rhythm is forming here

Prosecutor continues to ask Ivanka about documents/items from 2011. Ivanka says she doesn't recall them.. but makes repeated references to her deposition in case from last summer

She frequently answers: "You reminded me of (this)" during my deposition

I mean... there's a contrast in approaches here. Donald Trump has often championed his own memory skills

"Person. Woman. Man. Camera. TV"

23/ [I’m skipping around… forgive… many reports]

Pagliery:

Emails show she was deeply involved in financing the Doral golf resort and spa.

Trump lawyer Chris Kise keeps objecting to the evidence, questioning the relevance.

Justice Engoron keeps overruling those protests.

Klasfeld:

The state shows Ivanka email dated Nov. 7, 2011, w subj line "Doral Golf Resort & Spa — Financing Memo."

Meridian Capital's managing director Ronnie Levine sent the document to Ivanka, with CC-s to other people

24/ Rubin:

Kise objecting to these q’s on relevant grounds. The implication, of course, of reviewing these kinds of emails w other prospective lenders is that the Trumps could not obtain a loan for Doral on standard terms for a commercial real estate project.

That is, in fact, where we are headed. We are now looking at a Nov 2011 email from Ivanka to Richard Byrne of Deutsche Bank about obtaining financing for Doral, conversations Ivanka described as “high level” and that “didn’t go anywhere.”

25/ [Oops. Princess Breathy McStepford got a little busted here]

MacFarlane:

Ivanka: "It appears that way.. yes".... when asked if she personally sent Trump's financials to a bank official in 2011.. and is shown 2011 the letter in which she did so

👉🏼Again, she's arguing she can't remember doing so

Ivanka personally provided the financial info👈🏼

26/ Klasfeld:

The state shows Ivanka Trump an email dated Nov. 7, 2011, with the subject line "Doral Golf Resort & Spa — Financing Memo."

Meridian Capital's managing director Ronnie Levine sent the document to Ivanka, with CC-s to other people.

Side note:

At least so far, the emails have been 12 years old, a fact underlining why an appellate court dismissed the counts against her under the statute of limitations.

27/ Klasfeld:

Trump's lead attorney Chris Kise objects on relevance and statute of limitations grounds, and is overruled by Engoron, who notes 👉🏼that there's no risk of tainting a jury because of the bench trial.

Kise: I hope that the court, when we start our case next week, offers us this extraordinary latitude.

Engoron signals he will.

“What’s our favorite saying? ‘Sauce for the goose is sauce for the gander.’”

28/ MacFarlane:

Prosecutor shows Dec 6, 2011 email from Ivanka to bank officials (in which Jared is cc'd)

"I have attached our investment memo as well as some basic information on our golf and hotel portfolios"

Pagliery:

So far, this isn't combative at all. Ivanka remains largely still, quietly answering questions about emails and financing—but remembering very little.

"I recall at the time receiving high level terms, but not in particular..."

👉🏼This all could be a wind up pitch by the AG.

29/ Klasfeld:

Ivanka Trump is shown her email to Deutsche's Rosemary Vrablic from Dec. 6, 2011, bearing the subject line "Doral Golf Resort & Spa - Investment memo."

Jared Kushner is CC-d.

NYAG's lawsuit says these were the folks behind the genesis of the Trump Org/Deutsche relationship.

30/ Klasfeld:

Ivanka to Vrablic:

"My father and I are very much looking forward to meeting with you tomorrow to discuss Doral. I have attached our investment memo as well as some basic information on our golf and hotel portfolios."

Vrablic later replied to Ivanka in an email bearing the subject line "Outline and Due Diligence Items - Project Eagle."

"As we discussed, please find attached our Summary of Terms for the proposed acquisition of Doral Resort."

31/ Rubin:

we’ve moved to the point, 1 month later, where Ivanka — the captain of Doral redevelopment — has arranged a meeting w Rosemary Vrablic and Dominic Scalzi of the private wealth management group and days later, received a term sheet and a request for more information for due diligence purposes from Vrablic

And in particular, Solomon is now highlighting how much more advantageous the interest rates are (LIBOR + 2.25 or the Prime Rate, during one phase of the project) in exchange for …

32/ Rubin:

… two things: a full and complete personal guaranty from Donald Trump that he could cover the principal and interest of the loan and operating expenses of the resort AND a minimum net worth of $3 billion, exclusive of brand value.

33/ [Redundant, but so worth it. Princess Breathy McStepford gets busted]

Pagliery:

Starts getting interesting. Ivanka simply can't recall much. Doesn't remember if she liked the Doral bank deal—which the AG claims was built on faked Trump Org documents that inflated numbers.

Then AG shows her a 2011 email where she goes, "It doesn't get better than this."

34/ Klasfeld:

NYAG's counsel shows Ivanka Trump an email from her to Allen Weisselberg and other Trump Org execs, dated Dec. 15, 2011.

“It doesn’t get better than this. lets discuss asap,” she wrote.

Trump's lawyer Alina Habba objects, claiming it wasn't sent. NYAG says it was in fact sent.

NYAG's counsel Kevin Wallace interjects that this is a defense document, speaking to its authenticity.

👉🏼Justice Engoron allows questioning on it. [Me: Neener neener]

35/ Klasfeld:

Trump Org's Jason Greenblatt replied *four minutes later*, stating that "the net worth covenants and DJT indebtedness limitations would seem to be a problem?"

That covenant obligated Trump to maintain $3B net worth, which NYAG says he didn't have in 2011. The SFC claimed he did.

36/ Pagliery:

Greenblatt quickly emailed her:

"I will review, but not immediately that this is a FULL principal and interest and operating expense personal DJT guaranty. Is DJT willing to do that? Also, the net worth covenant and djt indebtedness limitations would seem to me to be a problem?"

But this wasn't a surprise to Ivanka.
(More…)

37/ Pagliery:

"That we have known from day one. We wanted to get a great rate and the only way to get proceeds/term and principle where we want them is to guarantee the deal."

Question now is how much she knew. AG is clearly heading in that direction.

38/ [Sorry, jumping from reporter to reporter]

MacFarlane:

Prosecutor shows Donald Trump's June 2011 statement on financials:

Net worth: $4.2 billion

Prosecutor: "Were you aware" of the claims of more than 4 billion in worth?

Ivanka: "no"

Trump lawyer Chris Kise is objecting to some of the questions being asked of Ivanka.. that they're unrelated to the corporate entities and the subpoena

😂🎻👉🏼Kise uses this phrase: Saying prosecutors "dragged" Ivanka from Florida to be here to testify

39/ MacFarlane:

Prosecutor counterpunches: "She’s receiving an email, she’s sending an email, she’s commenting on covenants, she’s negotiating the deal top to bottom”

👉🏼[Because Princess. Breathy. McStepford. Is. An. Automaton] She's not at all monotone. But Ivanka Trump's cadence, tone of voice, volume and energy haven't wavered a bit.

Consistent, no matter the question or the tone of the prosecutor.

40/ Klasfeld:

Some five years later, Ivanka Trump apparently sought to increase the loan from Deutsche by $50 million, an email suggests.

Vrablic wrote to Ivanka Trump on Feb. 11, 2016:

“I spoke to the credit team on the $50mm request and we are thrilled to consider it for you.”

41/ Backtracking a little, a thread from Rubin, next few:

That these terms were unusual, even for Trump, is underscored by the initial reaction of Trump Org lawyer Jason Greenblatt, who worried in a Dec 2011 email that Trump might not be willing to sign such a guaranty and that the minimum net worth requirement could be “a problem.”

42/ Rubin:

Ivanka responded, “We’ve known that” — meaning that the net worth requirement would be an issue — “since day one.”

👉🏼Nonetheless, however, Trump told DB his total net worth was in excess of $4 billion.

👉🏼And when Ivanka sent back to DB their marked up term sheet, they lowered the net worth covenant to $2 billion, not $3 billion.

43/ Rubin:

Ivanka has now confirmed Trump Org ultimately entered into commitment and fee letters with Deutsche Bank for the Doral loan, as signed by her dad.

Kise is now objecting that Ivanka has not been questioned about the three corporate entities that afforded the AG jurisdiction; Engoron says “it’s an interesting question.” Solomon is getting exercised; she was involved, from top to bottom in the negotiation and execution of this deal.

44/ Rubin:

Engoron says the subpoena set a floor, not a ceiling on the scope of her testimony, and we move on.

Ivanka is reviewing the ultimately agreed-upon net worth covenant, which required a minimum net worth of $2.5 billion, exclusive of brand, as reflected in his statements of financial condition. 👉🏼She has no independent memory of this term, however.
[DRINK!]

45/ Ivanka also has testified, despite Solomon’s attempt to refresh her recollection w various emails, 👉🏼she does not recall communications about an unsecured, additional loan for Doral in 2016, nor does she remember why that loan did not come to fruition.[DRINK!]

Ivanka being shown April 2016 email from Vrablic indicating there “bank couldn’t make the exception in this case,” meaning they decided against moving forward.👉🏼 Again, Ivanka says this does not refresh her recollection. [DRINK! Hic!]

46/ Solomon moves on to the another of the topics I predicted would come up: Ivanka’s option to purchase two different penthouse apartments, both of which were owned by the Trump Org.

Ivanka maintains she was not involved in the statements of financial condition so she has no idea how they were valued in those documents. [#PrincessBreathyMcStepford: Who… moi?]

47/ Pagliery:

Here's Ivanka trying to convince their DB banker to keep things easy.

"Thank you Rosemary. Just to be clear, based on the note from Dave Williams below an unsecured facility would not require an appraisal. Could you try for us to make this happen as an unsecured note?"

48/ Klasfeld:

Some 5 years later, Ivanka apparently sought to increase the loan from Deutsche by $50 million, an email suggests.

Vrablic wrote to Ivanka Trump on Feb. 11, 2016:

“I spoke to the credit team on the $50mm request and we are thrilled to consider it for you.”

Since we've moved onto more recent emails from 2016, Chris Kise said he's leaving out statute of limitations objections to the admission of these records.

49/ Klasfeld:

Q turns to Ivanka Trump's penthouse at Trump Park Avenue.

❤️Side trivia: The property was once an historic hotel where Bob Dylan reportedly introduced the Beatles to cannabis by smoking a joint with them.

More relevant to this trial, Ivanka Trump was given options to buy two penthouses in the building.

She rented instead, and she's now being shown the rental agreement.

Morning recess. [Shower time! You wouldn’t believe what I’ve been trying to do in b/w toots! Yay break!]

50/ Back! And my blow dryer behaved! I'm behind, so will catch you up now.

Klasfeld:

We're back.

At the start of the session, there's a sidebar conference between the judge and attorneys for both sides. Unclear on what topic.

Ivanka returns to the stand.

The live blog has been updated, but here was a key moment from the morning session so far, on the Trump Org origin story with Deutsche Bank.

51/ Klasfeld:

Ivanka Trump is shown an email that Deutsche Bank's David Goodman sent her, Trump's Org's David Orowitz, Rosemary Vrablic and others on May 17, 2012.

"Attached please find term sheets for hotel and condo financings."