Former U.S. President Donald Trump began his civil fraud trial in New York with an unwavering stance, targeting New York’s attorney general and the presiding judge. The state’s attorney accuses Trump of accumulating over US$100 million (NZ$168m) through deceptive claims about his real estate empire.
Attorney General’s Pursuit of Penalties
Attorney General Letitia James is pursuing significant penalties in this case. Her demands include a minimum of US$250 million in fines, a permanent ban on Trump and his sons, Donald Jr. and Eric, from conducting business in New York, and a five-year commercial real estate restriction against Trump and the Trump Organization.
Trial Proceedings
Testimony in the Manhattan courtroom commenced following opening statements. Donald Bender, a partner at Mazars USA and a long-time accountant for Trump’s businesses, was the first witness called by the state.
Trump’s Denunciation and Accusations
Before the trial, Trump publicly criticized the case, branding it a “scam” and a “sham” while alleging it was politically motivated. He accused the attorney general, Letitia James, of pursuing a vendetta. During a break, Trump didn’t hold back, characterizing James as “corrupt” and detrimental to New York. He also targeted Judge Arthur Engoron, accusing him of partisan bias and interference in the 2024 presidential election, where Trump leads among Republican contenders.
Political Leveraging
Trump’s election campaign seized the trial’s initiation for fundraising, framing it as a battle to protect his family and reputation from what they deemed “corrupt tyrants” within New York’s Democratic ranks.
Allegations of Asset Inflation
The trial revolves around the attorney general’s allegations that Trump artificially inflated his assets and net worth between 2011 and 2021. As per James, these actions were undertaken to secure favorable bank loans and lower insurance premiums. Assets such as Trump’s Trump Tower penthouse apartment, Mar-a-Lago estate in Florida, and various office towers and golf clubs were allegedly significantly overvalued, inflating Trump’s wealth by as much as US$2.2 billion.
Legal Arguments
Kevin Wallace, a lawyer from James’ office, argued that these actions were far from standard business practices and had real victims. He emphasized, “This isn’t business as usual, and this isn’t how sophisticated parties deal with each other.”
Trump’s lawyer, Christopher Kise, countered that Trump’s financial dealings adhered to the law. Kise maintained that Trump had amassed his fortune through savvy real estate investments, asserting no intent to defraud or engage in illegal activities.
The Value of Trump’s Assets
Alina Habba, another lawyer, posited that Trump’s assets were akin to “Mona Lisa properties,” capable of fetching premium prices if sold.
Trump’s Court Appearance
Trump donned a dark blue suit, a vibrant blue tie, and an American flag pin on his lapel in court. He characterized the case as a continuation of “the single greatest witch hunt of all time.”
Attorney General’s Commitment
Letitia James reaffirmed her commitment to upholding the law: “The law is both powerful and fragile. No matter how much money you think you may have, no one is above the law.”
Judge Engoron’s Rulings
Judge Engoron is overseeing the trial without a jury. In a prior ruling, he found Trump, his adult sons, and ten companies liable for fraud. He criticized them for inflating valuations, including treating Trump Tower as three times its actual size and valuing Mar-a-Lago at up to US$739 million despite its assessed value being no more than US$28 million. Engoron also canceled business certificates for companies controlling key elements of Trump’s empire.
The Scope of the Trial
The trial encompasses six additional claims, from falsifying business records to insurance fraud and conspiracy. It will determine the extent of penalties the defendants must pay.
Trump’s Legal Challenges
Beyond this case, Trump faces various other legal challenges, which have become a significant financial burden. He has become the first sitting or former U.S. president to face criminal charges in multiple jurisdictions, including Washington, Georgia, Florida, and New York. These charges encompass his efforts to contest the 2020 election results and his post-presidential conduct, including handling classified documents and hush money payments.
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