October 3, 2023 - Trump civil fraud trial continues in New York

 Former President Donald Trump continued to attack New York Attorney General Letitia James and the judge in his civil case, Arthur Engoron, as he arrived at the Manhattan courthouse Tuesday for the second day of his civil fraud trial.

“Her numbers are fraudulent — she’s a fraud,” Trump said of James. “And this case should be dismissed.”

Trump claimed that the judge had been given “extremely misleading information” about his net worth, complained about Engoron and cited Florida county tax records showing Mar-a-Lago was worth $18 million. Trump claims it’s worth as much as $1.5 billion.

The vast difference in valuations of Mar-a-Lago was one of the examples the judge cited in his ruling last week that Trump and his co-defendants were liable for fraud. 

“He’s been given false information, misleading information and corrupt information by a very corrupt and incompetent Attorney General Letitia James,” Trump said.

Trump is now in court for the second day of his civil trial.

Former President Donald Trump on Tuesday continued railing against New York Attorney General Letitia James and her civil fraud case against him on the second day of his trial in New York. 

“The rarely used Executive Law that the N.Y.A.G. is proceeding under is VERY UNFAIR, and being used against me for that reason. NY Executive Law 63 (12) does not require a victim, traditional elements of fraud are eliminated (the only such law!), the law allows a politically elected partisan prosecutor to convince a politically elected judge, who may be friends, to destroy even a Political Opponent,” Trump posted on Truth Social.

Trump posted, “This law may not be Constitutional and is not FAIR, and that is why terrible A.G. James chose it to use against me!!!” 

Trump called James a “Monster” and a “Trump Deranged Lunatic.” He called the New York attorney general “Letitia ‘Peekaboo’ James.” 

“Now that it has been agreed in Court that Mar-a-Lago is WORTH 50 to 100 times the Value the Racist & Incompetent Attorney General of New York State, Letitia “Peekaboo” James, ascribed to it (18 Million Dollars), & likewise other assets that were valued crazily low by this “Monster” that has allowed Violent Crime in New York to reach EPIDEMIC levels, and dangerous illegal migrants to roam free all over our State, we hope the Judge will TERMINATE his first ruling of fraud in that he was given false and ridiculous information by the Trump Deranged Lunatic, A.G. James,” Trump posted. 

Trump posted, “In actuality, I am WORTH FAR MORE than the numbers put down on the Financial Statements, not less. In addition, there is a far reaching and professionally drawn Disclaimer Clause boldly stated on the FIRST PAGE OF THE DOCUMENT. This entire case should be thrown out and dismissed. The A.G. should be reprimanded and sanctioned for bringing this case with its FAKE LOW VALUES, in order to make me look bad. Election Interference!”

Some background: James brought a $250 million lawsuit last September alleging that Trump and his co-defendants committed repeated fraud in inflating assets on financial statements to get better terms on commercial real estate loans and insurance policies.

Judge Arthur Engoron has already ruled on one of the claims — persistent and repeated fraud — finding Trump, his adult sons, their businesses and executives liable for fraud. 

Former President Donald Trump’s motorcade has arrived at court in downtown Manhattan for the second day of his civil fraud trial.

Court resumes at 10 a.m. ET.

Donald Bender, Trump's former longtime accountant at Mazars, will continue testifying this morning.

New York Attorney General Letitia James has arrived at court in downtown Manhattan for the second day of the civil fraud trial against Donald Trump, his eldest sons, their companies and Trump Organization executives.

She did not make a statement.

As she walked up the stairs of the courthouse building, a person outside yelled “go get 'em,” and “thank you” and James turned around smiled and pointed at them. 

She is now in the courtroom.

Former President Donald Trump has departed Trump Tower. He is expected to head downtown to be in court for the second day of his civil fraud trial, which he is voluntarily attending.

Trump wrote on Truth Social that he plans to be in court today.

“See you in Court on Tuesday morning!” Trump wrote.

This will be the second day in a row the former president will be in court. Trump appeared in court on Monday for the first day of the civil fraud trial against him and his namesake company.

Trump said on Truth Social the trial is allowing people to see “what a great company he built” and is “exposing great success.” 

The former president in the same post attacked New York Attorney General Letitia James and suggested to his followers, “don’t move your company to New York.”

It’s where the “art of the deal” could be exposed as the “art of the steal.”

Donald Trump couldn’t stay away from the opening of his civil fraud trial in New York on Monday. But the choreographed motorcade of Secret Service SUVs, rants about politicized persecution and courtroom scowls went deeper than his now familiar attempts to turn his dates with justice into fodder for his 2024 campaign.

This time, the real estate shark was back in his old hunting grounds to defend his threatened empire, the Manhattan skyscraper bearing his name in big gold letters and ultimately the mythology of his career as a billionaire tycoon that nurtured his fame and insurgent rise to the White House. Being impeached twice is bad. Facing 91 criminal charges is terrible. But the fraud case in New York threatens to shred Trump’s cherished self-image as an ultimate winner. That may be worst of all for the ex-president who still touts his golf resorts, hotels, planes and businesses in campaign speeches as proof of what he sees as his stellar business acumen.

“It’s a scam, it’s a sham. Just so you know, my financial statements are phenomenal,” Trump said before the trial opened.

The paraphernalia of wealth is not simply about boosting Trump’s self-esteem. It is integral to his political appeal. While his history of bankruptcies, legal reversals and scandals has punctured his image among voters who disdain him, Republicans who love Trump still buy into his iconography as a hard charging businessman. That image was sent into overdrive by NBC’s “The Apprentice,” which helped turn the star of a reality show into a president and modern American demagogue. Taking kids on helicopter rides at the Iowa state fair or directing pilots of his personalized 757 to circle the field before airport rallies as speakers blare the theme to the movie “Air Force One” are all part of the theater that Trump concocts to portray himself as the ultimate self-made man who got rich despite elites spurning him for years.

This idea was encapsulated by one of his attorneys in court on Monday, who argued that far from inflating his wealth, her client may have played it down by not including the value of his image. “There would have been the brand, the same brand that got that man elected president,” Alina Habba said. “There’s a lot of people in this room that probably don’t like that, and that’s why we are here.”

So while this trial could punish Trump’s family by imposing huge financial and business penalties, and even lead to the break-up of his New York business and disposal of his buildings, it is about far more than punishments for the ex-president. It is taking aim at Trump’s core.

“They’re hitting him where it hurts,” one source told CNN’s Kaitlan Collins about Trump’s decision to attend the trial on Monday.

Read the full analysis.

Former President Donald Trump was in attendance at a Manhattan courtroom for the opening day of the New York civil case against him and his namesake company.

Even though he didn't have to appear, Trump’s presence turned the courthouse into an extension of the campaign trail, where he has railed against the four criminal indictments against him, and now, a civil case where Judge Arthur Engoron ruled last week that Trump and his co-defendants were liable for fraud.

Inside the courtroom, Trump’s attorneys also sparred with the judge as opening statements began, a sign that they’re likely to take a combative approach with a trial that the judge expects to last into December.

The first witness for the New York attorney general, Trump’s former long-time accountant Donald Bender, is expected to continue testifying Tuesday about financial documents from 2011.  

Here’s what to know from the first day of Trump’s trial:

Trump labels it a "witch hunt": In front of the cameras and on his social media site, Trump attacked New York Attorney General Letitia James for bringing the case against him. He attacked the judge for the ruling last week. And he sought to tie them to special counsel Jack Smith’s criminal indictments, even though they are unconnected.

“This has to do with election interference, plain and simple,” Trump said before walking into the courtroom. “They’re trying to damage me, so I don’t do as well as I’m doing in the election.”

Attorney general asks to ban Trump from doing business in New York: Kevin Wallace, with the attorney general's office, alleged that Trump and his co-defendants conspired to commit persistent and repeated fraud and that Trump’s financial statements convinced banks to take on hidden risk “to the tune of hundreds of millions of dollars.”

The opening statement underscored the risk the case poses to Trump and the Trump Organization, the former president’s business in New York, where Trump built up his name and image before he launched the political campaign that led him to the White House in 2016.

Trump's lawyers say this is how real estate works: With the former president looking on, Trump’s lawyers argued Monday that the attorney general’s case was flawed, saying that the differences in valuations were just part of the commercial real estate business.

Trump's attorney, Christopher Kise, argued there was no intent to defraud and “no victims” in the case.

Kise pointed to documents from Deutsche Bank showing the bank valued Trump’s net worth $2 billion less than Trump did — but still underwrote the loan for Trump.

Judge spars with Trump attorneys: The judge noted that the defense team already had tried to dismiss the case by claiming James brought it as a “witch hunt” against Trump. He had already denied the motion, Engoron said, and his ruling had been affirmed by a New York appellate court.

The judge also sparred with Trump attorney Alina Habba over a discussion about an accounting disclaimer for Mazars, Trump’s former accounting firm. The disclaimer essentially said, “We’re relying on the Trump Organization,” Engoron said. “That’s how I read it.”

“No, your honor,” Habba responded, arguing that the Trump Organization relied on Mazars and “they’re the accountants.”

The exchanges underscored how the upcoming trial is going to be contested – especially when the judge, and not a jury, will decide the outcome.

Get caught up here

Former President Donald Trump will be in attendance again Tuesday in a New York courtroom for the start of the civil fraud trial against him, his eldest sons, their companies and Trump Organization executives.

The civil trial over inflated assets in fraudulent financial statements comes less than a week after a shocking ruling by Judge Arthur Engoron that found Trump and his co-defendants are liable for “persistent and repeated” fraud.

Trump inflated his net worth by as much as $3.6 billion in three separate years between 2011 and 2021, according to the attorney general’s office. Attorneys for Trump have refuted the claims, arguing that asset valuations are highly subjective and that they are still sorting through what the ruling means for the company’s future.

What's at stake at trial: Trump and his companies could be forced to pay hefty sums in damages for the profits they've allegedly garnered through their fraudulent business practices. 

Engoron will consider just how much the Trumps and their businesses will have to pay. 

The judge is expected to consider claims of business records fraud and insurance fraud alleged in the lawsuit in connection to high-profile properties, though he already determined some broad level of fraud was perpetuated.  

The six causes of action are falsifying business records, conspiracy to falsify business records, issuing false financial statements, conspiracy to falsify false financial statements, insurance fraud and conspiracy to commit insurance fraud.

James' lawsuit also asks the court to consider banning the Trumps from serving as officers of a business in New York and to stop the company from engaging in business transactions for five years.

The New York civil fraud trial against former President Donald Trump, his eldest sons, their companies and Trump Organization executives continued Tuesday.

New York Attorney General Letitia James brought a $250 million lawsuit last September alleging that Trump and his co-defendants committed repeated fraud in inflating assets on financial statements to get better terms on commercial real estate loans and insurance policies.

Judge Arthur Engoron has already ruled on one of the claims — persistent and repeated fraud — finding Trump, his adult sons, their businesses and executives liable for fraud. 

Engoron will now decide on the six other claims:

The trial was expected to take up to three months but it will likely be shorter now that the fraud claim has already been settled.