(NEW YORK) — Joran van der Sloot, the main suspect in the unsolved 2005 disappearance of Natalee Holloway, is expected to plead guilty on Wednesday to federal extortion and wire fraud charges in Alabama.
Van der Sloot pleaded not guilty to the extortion and wire fraud charges in June after he was extradited to the U.S. from Peru, where he had been serving a 28-year sentence for the 2010 murder of 21-year-old Stephany Flores.
Suspicion still surrounds van der Sloot in connection to 18-year-old Holloway’s May 2005 disappearance in Aruba.
Holloway was last seen with a group of young men, including van der Sloot, then 17. Van der Sloot was detained as a suspect in Holloway’s disappearance and later released.
In 2010, van der Sloot was indicted by a federal grand jury for allegedly trying to extort Holloway’s family.
Federal prosecutors alleged that in March 2010 van der Sloot contacted Holloway’s mom, Beth Holloway, through her lawyer, and claimed he would reveal the location of the teen’s body in exchange for $250,000, with $25,000 paid upfront. During a recorded sting operation, Beth Holloway’s attorney, John Q. Kelly, met with van der Sloot at an Aruba hotel, giving him $10,000 in cash as Beth Holloway wired $15,000 to van der Sloot’s bank account, according to prosecutors.
Then, van der Sloot allegedly changed his story about the night he was with Natalee Holloway, prosecutors said. Van der Sloot claimed he had picked Natalee Holloway up, but she demanded to be put down, so he threw her to the ground. Van der Sloot said her head hit a rock and he claimed she died instantly from the impact, according to prosecutors.
Van der Sloot then took Kelly to a house and claimed that his father, who had since died, buried Natalee Holloway in the building’s foundation, prosecutors said.
Kelly later emailed van der Sloot, saying the information he had provided was “worthless,” according to prosecutors. Within days, van der Sloot left Aruba for Peru.
(COLORADO SPRINGS, Colo.) — At least 189 decomposing bodies have been removed from a Colorado funeral home, much higher than initial reports suggested when the story surfaced earlier this month, according to the Colorado Bureau of Investigation.
The Return to Nature Funeral Home based in Colorado Springs, Colorado, offers environmentally friendly burials but came under investigation after more than 115 human remains were found being improperly stored on the property, according to a statement from the Fremont County Sheriff’s Office from earlier this month.
Responding to a suspicious incident, authorities found around 115 decomposing bodies stored inside a space of about 2,500 square feet. The bodies were in such bad condition that they will need to be identified through DNA, officials said.
However, a statement issued on Tuesday by the Colorado Bureau of Investigation on behalf of Fremont County Sheriff Allen Cooper and Fremont County Coroner Randy Keller confirmed the body count to be much higher than originally thought.
“On October 13, 2023, all decedents were removed from the Return to Nature Funeral Home in Penrose. The effort was coordinated by the Fremont County Coroner’s Office with support from several entities,” the CBI said. “Teams removed at least 189 individuals and transported them to the El Paso County Coroner’s Office. The total number of decedents could change as the identification and investigative processes continue.”
Families will be notified once bodies can be identified but the DNA testing could take months, according to local officials.
“Without providing too much detail to avoid further victimizing these families, the area of the funeral home where the bodies were improperly stored was horrific,” Cooper said earlier this month.
The scene was so bad when authorities first arrived that that a paramedic who responded developed a rash and had to be medically evaluated, Cooper said.
“We are conducting extensive coordination efforts as we focus on the identification of the decedents and provide notifications to ensure the families are given accurate information to prevent further victimization as they continue to grieve their loved ones,” said Fremont County Coroner Randy Keller.
Authorities did not disclose what the funeral home was doing with the human remains but did confirm that they are working with the Fremont County Coroners’ Office, the Colorado Bureau of Investigation, the Colorado Department of Regulatory Agencies, the Colorado Department of Public Health and the FBI on the case.
“Green Burial is a natural way of caring for your loved one with minimal environmental impact. Green Burial aids in the conservation of natural resources, reduction of carbon emissions and the preservation of habitat, WITHOUT the use of harsh embalming chemicals, metallic, plastic or unnatural items,” the website for the funeral home says. “You can still view your loved one who is NOT embalmed. Embalming is NOT a law. In the state of Colorado within 24 hours the body must be either embalmed or placed in a regulated temperature controlled environment, meaning under refrigeration, dry ice, etc.”
Officials said they are now beginning the second phase of their investigation on Tuesday.
“The second phase of this comprehensive process includes confirming identification and completing family notifications,” the CBI said. “Family notifications will be conducted by a team led by the Fremont County Coroner’s Office, victim advocates and others and this is expected to begin in the next several days.”
There is currently no timeline for completion of the investigation.
(NEW YORK) — A 6-year-old Muslim boy was stabbed to death and his mother was seriously injured in what police said was a hate crime linked to the ongoing conflict between Israel and Hamas in the Middle East.
The Justice Department opened a federal hate crimes investigation into the alleged murder of the boy, who was identified as Wadea Al-Fayoume, and wounding of his mother, Hanaan Shahin, according to a statement.
Joseph Czuba, the family’s landlord, allegedly stabbed the boy 26 times with a “military-style knife” and his mother more than a dozen in the incident at their home in the Chicago suburb of Plainfield, Illinois.
Wadea’s uncle, Yousef Hannon, spoke to ABC News on Tuesday, saying the family was shocked over the alleged murder because Wadea was previously “like a grandson” to Czuba and there were no other signs he harbored any anti-Muslim views.
Hannon’s full remarks are below:
LINSEY DAVIS: Yousef, first off, I just have to thank you so much for coming on to the show during this time. Our condolences and thoughts and prayers certainly are with you and your family at this time. Would just like to ask, how’s his mother doing at this time?
YOUSEF HANNON: Actually, for the mother, there isn’t any official information right now. There is — the last thing we hear [is] that she was in critical condition. They, the father, you know, and other family members, they tried to reach the hospital yesterday and the day before, and we couldn’t have any information and they said that visit is not allowed.
DAVIS: Did you know this landlord who allegedly attacked them?
HANNON: Me personally, no, I didn’t know him. I didn’t meet him, but you know, I wish that the father could make it to talk with us. You know, he knows him very well. He was shocked, the father, you know, to hear the news about it. Because, you know, the way the landlord was acting with — before [he] was upset with Wadea — was like a grandson to him. You know, he was bringing him gifts. He loved him. You know, two weeks ago, when Wadea had his birthday, he brought him gifts, he bought him a soccer ball. You know, and in fact, you know, in the back of the house, he did a swimming pool for him. So this was — nobody could expect that.
DAVIS: He had never shown any sort of anti-Muslim sentiment?
HANNON: Never, never, never. Until this accident happened, there was no other sign.
DAVIS: I would like to ask, do you feel like your community and your houses of worship are getting the support from law enforcement that you need, in particular, at this time?
HANNON: I believe we need more attention, more security. And before this, we are a peaceful community around here. And this is how we are known. But the most important thing, you know, security will do nothing if we did not change the stereotype talking against Arabs and Muslims.
No one should feel unsecured, you know, especially a child, like Wadea, 6years-old, was killed in the hands of a man who was — he loved.
Nobody was there, you know, but according to the father, you know, yesterday, he was crying and saying, when the man showed up in the house, Wadea run to hug to him. Instead of that, he was met with a knife — 26 stabs. What is this happening?
DAVIS: And before we let you go, how would you like us to remember your nephew Wadea?
HANNON: A happy boy. He’s open to life. He loves his soccer ball. He loves his toys. He loves his school. He was happy, you know, learning. He loved his mom. He’s [a] smiling child. He was facing life with a very big smile, you know, and he was a happy boy. That’s how we should — yesterday, I couldn’t look at his face in the coffin. I want to keep the happy picture for him — the alive picture. I want to keep him that way. That’s why I didn’t want to look at him yesterday.
DAVIS: I can understand that. And again, we certainly send our condolences, and we thank you again for talking with us, Yousef Hannon. Really appreciate it.
(AURORA, Colo.) — The second trial in connection with the death of 23-year-old Elijah McClain following an altercation with Aurora, Colorado, police began Tuesday.
Nathan Woodyard was the first police officer on the scene in August 2019 and he put McClain in a carotid hold. He has pleaded not guilty to the charges of manslaughter and criminally negligent homicide.
Woodyard’s legal representatives declined to comment on the case.
In opening arguments, Assistant Attorney General Ann Joyce argued that Woodyard’s actions on Aug. 24, 2019, led to McClain’s death and were not aligned with his police training, according to ABC affiliate Denver7.
McClain told officers during their encounter that he was having trouble breathing and he later choked on his own vomit while he was restrained, the previous trial revealed.
“This trial is about the defendant and his teammates doing nothing to help Elijah McClain. This trial is about their continued callousness and indifference to Mr. McClain’s suffering,” she said.
Attorney Megan Magdalena Downing, who represents Woodyard, argued that the ketamine that was administered by the EMTs that night was responsible for McClain’s death, according to Denver7.
“Let me be clear — someone is guilty,” Downing said. “They’re not here. It’s not Nathan.”
McClain was stopped by police on his way home from a convenience store in August 2019. A passerby called 911 to report McClain as acting “sketchy” with a ski mask on; however, the caller said there was no weapon and that no one was in danger at the time.
McClain was wearing a ski mask at the time because, according to his family, he had anemia, a blood condition that can make people feel cold more easily.
When officers arrived on the scene, they told McClain they had a right to stop him because he was “being suspicious.”
In police body camera footage, McClain can be heard telling police he was going home and that, “I have a right to go where I am going.”
Woodyard placed McClain in a carotid hold and he and the other two officers at the scene moved McClain by force to the grass and restrained him.
McClain can be heard pleading with officers in police body camera footage, saying he can’t breathe correctly.
“I’m so sorry. I have no gun, I don’t do that stuff. I don’t do fighting. Why are you taking me?” McClain can be heard saying in body camera footage.
“I can’t breathe,” McClain said, according to the body camera footage. He echoed these words several times.
When EMTs arrived at the scene, McClain was given a shot of 500 milligrams of ketamine for “rapid tranquilization in order to minimize time struggling,” according to department policy, and was loaded into an ambulance where he had a heart attack, according to investigators.
McClain was declared brain-dead days later and died on Aug. 30, 2019.
McClain’s cause of death, which was previously listed as “undetermined,” was listed in an amended autopsy report as “complications of ketamine administration following forcible restraint.” The manner of death remained listed as “undetermined” as it was in the initial report.
In the first trial in connection with McClain’s death, officer Randy Roedema was found guilty of criminally negligent homicide and assault in the third degree last week.
Another officer, Jason Rosenblatt, was found not guilty on charges of reckless manslaughter, assault in the second degree, and criminally negligent homicide.
McClain’s mother, Sheneen McClain, walked out of the courtroom with a raised fist after the split verdict and said she was not satisfied with the outcome.
“America needs to start telling the truth about its history and changing the way it treats all the people that pay into its systems of control,” she said in a statement to ABC News on Friday. “Don’t say sorry to me for humans that fail even their own kind. My soul still cries out for divine justice for my son Elijah McClain.”
(PLANTATION, Fla.) — Two Florida brothers and another man were charged with federal kidnapping, waterboarding, and torturing a man despite knowing he was not the target of their plot, according to court documents unsealed on Tuesday.
A man came out of his house on Oct. 13 in Plantation, Florida, and went into his apartment’s parking garage between 7:30 and 8 a.m. when he was approached by three men, later identified as Jeffry Arista, Jonathan Arista, and Raymond Gomez, who brandished a firearm and told him to get in a black car with police lights, the complaint said.
“Jeffry Arista asked the victim to identify himself, implying they had kidnapped the wrong individual. The kidnappers further confirmed this when they removed the victim’s wallet from his pocket and checked his identification. At this point, the kidnappers began inquiring why the coworker was using the victim’s car this past Thursday and demanded to know where the money was,” the criminal complaint, unsealed in the Southern District of Florida, said.
“The money was in reference to what the coworker allegedly owed the kidnappers. The kidnappers threatened the victim by putting an electric drill to his skin and pointing firearms towards his head,” the complaint continued.
The apartment the men allegedly brought the victim to was an Airbnb and at one point, the men brought the victim into the bathroom, laid him down, and poured water on his head — “effectively waterboarding him,” the complaint alleged.
When they figured out it was in fact the wrong person, the men then allegedly “brainstormed” on how to get the correct person to them, which involved the victim being forced to call the correct target and make plans with him, according to the complaint.
In order to solicit a large police presence, the victim went into his coworker’s business on Oct. 14 and said he had a bomb, the complaint alleged. When law enforcement showed up, one of the alleged kidnappers was in the distance filming the victim, and the victim pointed out to law enforcement he was the one who allegedly kidnapped him.
Law enforcement kept investigating the incident and Gomez was later arrested after he allegedly admitted to kidnapping the wrong person.
Jeffry Arista and Jonathan Arista had their initial appearances in federal court on kidnapping charges on Monday. Gomez has not yet had a court appearance.
Lawyers for the men did not respond to ABC News’ request for comment.
(SANTA FE, N.M.) — Prosecutors said Tuesday they believe Alec Baldwin has “criminal culpability” in the deadly shooting of cinematographer Halyna Hutchins on the New Mexico set of “Rust.”
The special prosecutors investigating the “Rust” shooting said they intend to present the case to a grand jury within the next two months to “determine whether probable cause exists to bind Baldwin over on criminal charges.”
The actor was practicing a cross-draw on the Santa Fe set in October 2021 when the gun fired, striking the cinematographer and director Joel Souza, who suffered a non-life-threatening injury.
“After extensive investigation over the past several months, additional facts have come to light that we believe show Mr. Baldwin has criminal culpability in the death of Halyna Hutchins and the shooting of Joel Souza,” special prosecutors Kari Morrissey and Jason Lewis said in a statement. “We believe the appropriate course of action is to permit a panel of New Mexico citizens to determine from here whether Mr. Baldwin should be held over for criminal trial.”
Baldwin’s attorneys said they will “answer any charges in court.”
“It is unfortunate that a terrible tragedy has been turned into this misguided prosecution,” his attorneys, Luke Nikas and Alex Spiro of Quinn Emanuel, said in a statement to ABC News.
Baldwin was initially charged with two counts of involuntary manslaughter over the death of Hutchins. Special prosecutors in the case dropped those against the actor in April, though noted at the time that their investigation remains “active and ongoing” and that charges may be refiled.
“Rust” armorer Hannah Gutierrez was also charged with two counts of involuntary manslaughter. She also faces an additional charge of tampering with evidence, with state prosecutors claiming she handed off a small bag of cocaine following her interview with police the day of the shooting.
Gun enhancement charges filed in the case against both Baldwin and Gutierrez were dropped in late February.
Gutierrez’s attorneys sought to have her charges dismissed, arguing there were jurisdictional and structural issues with the case tied to a change in prosecutors and alleged prejudicial statements made to the media.
State District Court Judge Mary Marlowe Sommer denied the motion in August, saying any jurisdictional issues were cured after prosecutors filed an amended criminal information. The judge also said the defense failed to demonstrate “actual and substantial prejudice” to warrant such an “exceptional” remedy as dismissing the charges, and that extrajudicial statements are not something “that need to be addressed at this point.”
Earlier this month, Sommer ordered “Rust” producers to turn over documents to prosecutors on the agreement between Baldwin and Rust Productions. The production company was seeking to quash the special prosecutor’s request.
During the hearing, Morrissey said the production company “refused” a request by Gutierrez for more time to train Baldwin on the weapon. Morrissey argued the request was denied to keep production costs low, and that Baldwin, as a producer on the film, would benefit from lower costs.
“This entire tragedy occurred because Rust Productions cut corners every chance they could and they hired inexperienced and ill equipped crew members. So we have a situation where Rust Productions is doing everything it can to keep costs low so that it can keep profits high,” Morrissey said during the Oct. 6 hearing.
David Halls, the first assistant director for the film, was sentenced in March to six months unsupervised probation as part of a plea deal. Halls, who handed the Colt .45 revolver to Baldwin prior to the shooting, was charged with negligent use of a deadly weapon.
(WASHINGTON) — The Justice Department has announced the arrest of a North Carolina man charged with leveling threats against a Jewish house of worship last week in the wake of the Hamas attack on Israel.
“I am going to take every one of you out in a way,” Jeffrey Scott Hobgood allegedly said in an email to the Jewish organization on Oct. 11, according to court documents. “You will beg for your life … you semite pieces of **** – will be annihilated.”
Even after law enforcement contacted him following the first email, Hobgood proceeded to send a second threatening message to the same organization two days later, prosecutors say.
“Guess what happens to traitors? … Public execution. … We are at war. … If you think you semite pieces of **** are going to win, then you are delusional,” he allegedly wrote, court documents show.
Hobgood has not entered a plea, and he has no attorney listed in court documents.
Hobgood’s family members had previously reported to law enforcements threats that they say he allegedly made against them in the past year as well, according to his arrest affidavit.
The FBI released data on Monday showing that anti-Jewish hate crimes increased by more than 37% in 2022 — the second-highest number on record and the highest number in almost three decades. There were a total of 11,634 criminal hate crime incidents motivated by bias toward race, ethnicity, ancestry, religion, sexual orientation, disability, gender, and gender identity in 2022, according to the data.
At least 1,400 people have died and 3,400 others have been injured in Israel since Hamas launched an unprecedented incursion from air, land and sea on Oct. 7, Israeli authorities said.
(NEW YORK) — Former President Donald Trump is on trial in New York in a $250 million lawsuit that could alter the personal fortune and real estate empire that helped propel Trump to the White House.
Trump, his sons Eric and Don Jr., and Trump Organization executives are accused by New York Attorney General Letitia James of engaging in a decade-long scheme in which they used “numerous acts of fraud and misrepresentation” to inflate Trump’s net worth in order get more favorable loan terms. The former president has denied all wrongdoing and his attorneys have argued that Trump’s alleged inflated valuations were a product of his business skill.
Here’s how the news is developing. All times Eastern.
Oct 17, 5:32 PM EDT
‘Justice will be served,’ James says after court adjourns for the day
After court adjourned for the day, New York Attorney General Letitia James offered one of her firmest repudiations of the former president’s claims.
“He can call me names, he can engage in distractions, but at the end of the day … his entire empire was built on nothing but lies and on sinking sand,” James told reporters outside the lower Manhattan courthouse.
Trump has frequently targeted James in his comments during courtroom breaks, criticizing her efforts as politically motivated and pushing an unfounded theory that the case against him is part of a plot of interfere in the 2024 election.
“This is an attorney general … that went out and campaigned on ‘I will get Trump,'” Trump said before entering court this morning, repeating attacks that he’s made on social media.
James fired back that her team has repeatedly demonstrated that Trump committed fraud, both in the first two weeks of the trial, as well as in Judge Arthur Engoron’s pretrial ruling about Trump’s fraudulent financial statements.
“He will again attempt to distract each and every one of you, attempt to raise his voice and scream,” James told reporters. “But at the end of the day, justice will be served, and I’m confident that victory will be mine.”
Oct 17, 4:24 PM EDT
Trump leaves court early
Former President Trump did not return to court after the mid-afternoon break, leaving his attorneys alone at counsel table for the cross-examination of professional appraiser Doug Larson.
The former president departed from the lower Manhattan courthouse in his motorcade.
Trump is scheduled to sit for a deposition today related to a civil lawsuit brought by former FBI agent Peter Strzok and former FBI attorney Lisa Page. Strzok filed suit against the Justice Department and the FBI in 2019, claiming his First Amendment rights were violated when he was wrongfully terminated the year before over private text messages with Page that reflected anti-Trump sentiments.
Oct 17, 3:55 PM EDT
Exec’s testimony shows ‘illicit agreement or scheme,’ state argues
State attorney Eric Haren has filed a letter with the court arguing that Trump Organization executive Patrick Birney’s testimony yesterday about Trump’s net worth should be admissible.
During his testimony, Birney claimed that CFO Allen Weisselberg told him that “Mr. Trump wanted his net worth on the statement of financial condition to go up.” Trump lawyer Chris Kise immediately objected to the statement as hearsay.
Judge Engoron then asked both parties to submit two-page memos by today, regarding whether the statements from Birney are hearsay.
“Regardless of its truth, Mr. Weisselberg’s statement tends to show the existence of an illicit agreement or scheme,” Haren wrote in his letter to the judge.
Haren argued that since Weisselberg is alleged to be a co-conspirator who carried out his “illicit objectives” through Birney, the statement should be considered admissible.
Oct 17, 2:23 PM EDT
‘Cohen didn’t have the guts,’ to testify, Trump says
While exiting court for a break, former President Trump took a swipe at his former lawyer Michael Cohen, who delayed his testimony in the ongoing trial.
Cohen was scheduled to testify on Tuesday, but postponed his testimony due to a medical issue.
“Cohen didn’t have the guts,” Trump told reporters in the hallway outside the courtroom.
Trump also continued his criticism of the law used by New York Attorney General Letitia James to bring the case, which he said “doesn’t give me any rights whatsoever.”
“I’m the victim here,” Trump said.
Oct 17, 1:53 PM EDT
Trump Organization’s claims are inaccurate, appraiser says
Doug Larson’s name appears across five years of Donald Trump’s financial documents, according to records entered into evidence.
A professional appraiser with the real estate company Newmark, Larson was cited in Trump Organization documents as an expert at valuing properties like 40 Wall Street, Trump Tower, and an adjoining retail space called “Niketown.” Spreadsheets entered as evidence explicitly reference multiple phone calls with Larson between 2013 and 2017.
When asked about these phone calls in court, Larson testified that no such conversations occurred.
“Is it fair to say that Mr. Trump valued Trump Tower at $526 million in conjunction with you?” state attorney Mark Ladov asked Larson.
“No, that is incorrect,” Larson said.
“Were you aware that Mr. McConney was citing you as a valuation source in his work papers?” Ladov asked.
“No, I was not,” replied Larson, who said he did not assist Trump Organization executives in valuing Trump Tower, Niketown, or 40 Wall Street, despite Trump’s paperwork referencing him as a source.
Evidence presented by the state instead suggested that the valuations were determined using cherry-picked metrics from a generic email Larson sent clients.
“It’s a way to get your name out to clients for potential work,” Larson said about one such “email blast” that was used in a Trump Tower valuation.
Larson added that the valuations Trump Organization executives determined based on “consultation” with him used flawed methodologies, such as using capitalization rates related to office buildings to appraise the retail Niketown building.
“It doesn’t make sense,” Larson said about Niketown’s $287 million valuation.
“It’s inappropriate and inaccurate,” Larson said about the Trump Organization relying on his name to support their valuations. “I should have been told, and appraisals should have been ordered.”
Oct 17, 12:01 PM EDT
CFO wanted fees omitted from ledger, exec says
With former President Trump looking on silently from his seat at the defense table, his civil fraud trial turned to the allegedly fraudulent valuation of his 40 Wall Street property.
The Trump Organization’s assistant controller, Donna Kidder, testified that around 2012, the company’s then-chief financial officer, Allen Weisselberg, instructed her to omit from a financial ledger some of the fees the company charged to manage the building.
Kidder said Weisselberg described it as money that moved within the Trump Organization from “one pocket to another.”
The ledger documents, which were provided to the real estate investment firm Ladder Capital, were related to the refinancing of 40 Wall Street.
“Allen Weisselberg said that since they were affiliated entities, management fees could be omitted,” Kidder said.
Lowering expenses would make the building’s net operating income higher and, thereby, make the building more valuable, state attorneys said. The move helped the Trump Organization claim 40 Wall Street was worth $540 million when its true appraised value was $260 million, said the state.
Kidder also testified about the value of a penthouse apartment in Trump Park Avenue that was rented by Ivanka Trump and Jared Kushner in 2011. The attorney general’s office has alleged the apartment was reported at a value several times higher than the agreed selling price.
Kidder testified that Ivanka Trump had been given an option to buy the unit, Penthouse 28, for $8.5 million. However, on statements of financial condition, the Trump Organization valued the apartment significantly higher, at $20.8 million in 2012 and $25 million in 2013.
Oct 17, 10:15 AM EDT
‘There’s no fraud,’ Trump says before entering courtroom
Donald Trump is back at the defense counsel’s table in the courtroom, seated between his lawyers Alina Habba and Chis Kise.
Speaking to the press before entering the courtroom, Trump railed against the trial, telling reporters that his assets were undervalued, reiterating his desire for a jury trial, and criticizing New York Attorney General Letitia James.
“This is the railroading that’s all coming out of the Department of Justice,” Trump said without offering proof of the accusation.
Press photographers were briefly permitted to enter the courtroom and take photos before testimony resumed.
“They are the eyes and ears of the public, or at least the eyes in this case,” Judge Arthur Engoron remarked as the photographers left the court.
Oct 17, 9:47 AM EDT
Attorney general back in attendance
New York Attorney General Letitia James is attending the civil trial this morning.
After greeting the press in the courtroom’s gallery, James returned to same front-row seat she used earlier in the trial.
James attended the first six days of the trial but had not been in the courtroom the last week.
Oct 17, 8:16 AM EDT
Trump says he’ll return to courtroom this morning
Donald Trump plans to attend his ongoing fraud trial in downtown Manhattan this morning, the former president said in a Truth Social post this morning.
Star witness Michael Cohen, Trump’s former lawyer and self-described “fixer,” will be absent from the courtroom after a medical issue delayed his testimony.
Trump will instead hear testimony from his company’s assistant controller, Donna Kidder.
State attorneys also plan to call real estate executives who appraised Trump properties, as well as real estate executive Jack Weisselberg, the son of former Trump Organization CFO Allen Weisselberg, who worked on a refinanced loan for Trump’s 40 Wall Street property.
Trump was in attendance for the first three days of the trial when it began two weeks ago.
State attorney Andrew Amer concluded his direct examination of Trump Hotels chief accounting officer Mark Hawthorn by applauding Hawthorn’s skills and experience.
Amer highlighted that Hawthorn successfully conducted cash flow analysis, understood estimated current value, and applied the generally accepted accounting principles to his work.
Asked by Amer if he was ever asked to work on Trump’s statement of financial condition — a job that was handled by other executives like CFO Allen Weisselberg and controller Jeffrey McConney, who in earlier testimony acknowledged their lack of knowledge regarding foundational accounting principles — Hawthorn replied that he was never approached about the task.
“I would be qualified to give it a try,” said Hawthorn.
Hawthorn then stepped down from the witness stand to make way for Trump Organization assistant controller Donna Kidder to begin her testimony, after which court was adjourned for the day.
Kidder’s testimony is scheduled to resume tomorrow morning, when former President Trump is expected to return to the courtroom.
Oct 16, 4:14 PM EDT
Assets on statement were apparently overstated, exec says
Trump Hotels chief accounting officer Mark Hawthorn testified that in 2018 he inadvertently overstated the value of Trump’s assets by relying on Trump’s statement of financial condition.
When an outside accounting firm requested the amount of Trump’s liquid assets, Hawthorn said he consulted the financial statement that listed “cash equivalents in excess of $290 million.”
The New York attorney general alleges that Vornado Partnerships, a separate company with whom Trump has a limited partnership interest, owned 30% of the “cash and cash equivalents” Trump claimed in his 2018 statement.
In his testimony, Hawthorn said that information was not disclosed in the statement. He also said that he only was able to view the statement briefly in a 20-minute Google Meet session.
“It appears to have been overstated,” Hawthorn said of the representation of Trump’s assets on the statement.
Oct 16, 2:57 PM EDT
Michael Cohen could testify next Monday, judge says
The earliest possible day that former Trump attorney Michael Cohen could testify is next Monday, Judge Engoron said.
Cohen, who for years was Trump’s so-called “fixer,” said an ongoing medical issue had forced him to postpone his testimony, which was originally scheduled to begin tomorrow.
Judge Engoron noted that he has not yet received Cohen’s “all-important doctor’s note,” but that he hopes to receive it sometime today.
Trump attorney Chris Kise criticized the delayed appearance of Cohen, who he described as central to the state’s case — noting that Cohen has continued to post to social media despite his medical issue.
“He does continue to be active in his pursuit of my client,” Kise said. “He does not appear to be that infirm.”
Oct 16, 10:23 AM EDT
Judge says he’ll clarify upcoming schedule
On the heels of former Trump attorney Michael Cohen’s decision to delay his testimony, Judge Engoron said that “the schedule for the rest of this week is somewhat up in the air.”
The judge, however, promised to offer clarity about the trial schedule later today.
Engoron also acknowledged the anticipated return on Tuesday of former President Trump to the courtroom.
When the judge, while waiting for a witness to enter, joked about arguing before an empty chair, defense attorney Chris Kise replied, “It won’t be empty tomorrow.”
Engoron responded with a smile, saying “So I hear.”
Oct 16, 8:11 AM EDT
Michael Cohen delays testimony as trial enters Week 3
The civil fraud trial of former President Trump, his adult sons, and Trump Organization executives enters its third week with a notable schedule change.
Trump’s former lawyer and so-called “fixer” Michael Cohen, who was initially scheduled to begin his testimony on Tuesday, has delayed his court appearance due to a preexisting medical condition.
“I look forward to testifying and correcting the record as to the multiple misstatements and responses by previous witnesses who stated … ‘I don’t recall.’ Unfortunately for them, I do,” Cohen told ABC News on Saturday.
Trump is expected to attend multiple days of the trial beginning on Tuesday, according to sources familiar with his plans.
In the meantime, Trump Organization executive Patrick Birney is expected to conclude his testimony this morning.
Birney is scheduled to be followed on the stand by Mark Hawthorn, the chief accounting officer at Trump Hotels.
Oct 13, 2:32 PM EDT
Ex-CFO wanted inflated value for Trump Tower, exec says
Trump Organization executive Patrick Birney was once pressured by his former CFO, Allen Weisselberg, to use an unrealistic metric to inflate the value of Trump Tower, Birney testified.
Birney testified that he consulted a generic real estate report to determine a 2.67% capitalization rate to measure the value of Trump Tower — despite an executive at real estate company Cushman and Wakefield recommending a higher rate, which would have decreased Trump Tower’s value.
When Weisselberg and Birney discussed the topic in a Trump Tower restroom, Birney said he encouraged the CFO to use a higher, more realistic capitalization rate that would be more sustainable, in order to maintain the building’s value in the future, Birney testified.
“I think he said, just use 2.67%,” Birney recalled. “I said I am fine using that capitalization rate, but I am worried that if we are only using 2.67, the building is so old, next year there might not be a cap rate as low as 2.67.”
The New York attorney general alleges that Weisselberg “systematically rejected” multiple valuations of Trump Tower in 2019 that would have lowered its value between $161 and $224 million.
Court has adjourned for the day, with Birney scheduled to continue his testimony on Monday morning.
Oct 13, 12:04 PM EDT
Firm mulled using presidential ‘premium’ to boost net worth
Trump Organization executives considered adding $144 million to Trump’s net worth based on a “premium for presidential property” in 2017, according to testimony of executive Patrick Birney.
The premium, which was applied to draft versions of Trump’s financial statements, varied between 15% and 35% for Trump’s properties, including his Mar-a-Lago Club, which was described in documents as the “presidential winter residence,” according to materials entered into evidence.
The potential adjustment followed a $200 million shortfall between Trump’s 2016 and 2017 statements, after a Forbes magazine article prompted executives to revalue the former president’s penthouse, state attorneys said.
“Who directed you?” state attorney Eric Haren asked Birney about adding the premium.
“I don’t really remember, but probably Allen Weisselberg,” Birney said.
Birney testified that the premium was eventually removed from the 2017 statement, according to a document that tracked changes made to the statement. He did not provide additional context about why the premium was removed.
Oct 13, 8:26 AM EDT
Assistant VP to continue testimony
Trump Organization assistant VP Patrick Birney will continue his testimony this morning on Day Nine of the trial.
Roughly 40 years younger than ex-Trump Organization CFO Allen Weisselberg — his former boss and the previous witness in the trial — Birney testified yesterday that he largely relied on Weisselberg and controller Jeffrey McConney to put together Trump’s annual financial statements.
“I was not the final decision maker,” Birney said.
State attorney Kevin Wallace highlighted Birney’s statements during his opening statement as evidence of an alleged conspiracy within the Trump Organization to inflate Trump’s net worth.
“He likes to see it go up,” Birney said, according to Wallace.
If Birney completes his testimony today, Trump Hotels chief accounting officer Mark Hawthorn is scheduled to testify next.
Patrick Birney had been working for the Trump Organization for more than two years when a magazine article prompted him to change Trump’s financial statement, the assistant VP testified.
“There was an article written that stated that Mr. Trump’s triplex was actually 10,900 or so square feet,” Birney said, referring to a 2017 Forbes magazine article that alleged Trump had been lying about the size of his residence. (Judge Engoron decided in his partial summary judgment last month that the size was misrepresented.)
Birney testified that Trump Organization employees, including former CFO Allen Weisselberg, “verified” the size and adjusted the next year’s statement of financial condition. As a result, the penthouse was valued at $116 million in 2017 — a steep drop from the 2016 valuation of $327 million.
Birney testified that he looked up comparable properties to come up with the value of the apartment going forward.
“I Google searched recent penthouse sales in Manhattan,” Birney said, eventually landing on an web article about a penthouse purchased by billionaire Ken Griffin that set the record for most expensive home ever sold in the United States.
A price-per-square-foot for Trump’s penthouse was determined based on that record-breaking sale, Birney said.
When Birney was tasked with finding comparable properties to value Trump’s Mar-a-Lago Club, he similarly searched for nearby Palm Beach homes. However, Trump signed a deed in 2002 that limited Mar-a-Lago’s purpose to a social club, the New York attorney general alleges, making the price of nearby residences irrelevant.
Asked if he was ever told about the deed by anyone at the Trump Organization, Birney replied, “I don’t believe I was.” Instead, he said he first learned about it during an “interview with the attorney general’s office.”
Court then adjourned for the day, with Birney’s testimony scheduled to resume tomorrow morning.
Oct 12, 3:58 PM EDT
Trump Organization assistant VP says CFO had final say
Trump Organization assistant vice president Patrick Birney testified that CFO Allen Weisselberg and controller Jeffrey McConney had the final say on Trump’s financial documents when he worked under them.
“I was not the final decision maker,” Birney said.
Birney joined the Trump Organization in 2015, a few years after he graduated from the University of Michigan. He began helping with Trump’s statement of financial condition in 2016 and eventually took over preparing the vital financial document, though he acknowledged in court that he initially lacked some basic knowledge about accounting and finance.
Asked if he ever had valued a property using a capitalization rate, he replied, “I don’t think so.”
Birney said he would often turn to McConney if he needed specific documents, and that he reviewed drafts of the statement with Weisselberg.
“He would review drafts with me that I would provide him,” Birney said. He later added, “Allen Weisselberg had the authority to approve everything.”
Oct 12, 3:45 PM EDT
Trump Organization assistant VP takes the stand
Former Trump Organization CFO Allen Weisselberg has completed his direct examination, although he might be called back to testify by either the attorney general or the defense, Judge Arthur Engoron said.
“I am lifting the prohibition on discussing the case with counsel or anyone else,” Engoron said about Weisselberg.
Trump Organization assistant vice president Patrick Birney, who took over managing Trump’s statement of financial condition after controller Jeffrey McConney, took the stand following Weisselberg.
Oct 12, 3:06 PM EDT
Ex-Trump CFO testifies about family members’ roles
Ex-Trump CFO Allen Weisselberg, under questioning from state attorney Louis Solomon, addressed the degree to which Donald Trump’s three adult children — Don Jr., Eric, and Ivanka — were involved in the day-to-day running of the Trump Organization during the period from 2011-2022.
“They wanted to get up to speed on how the business was running,” Weisselberg said, noting that Trump’s run for president accelerated their engagement in the company.
Emails entered into evidence from around that time suggested that the three Trump children requested financial information about the company’s operations.
During one email exchange, Weisselberg directly asked Eric Trump to delay paying off a loan related to Trump’s Seven Springs estate so it wouldn’t affect the former president’s cash balance.
“If we have to pay off the loan I would like to do it post June 30th as that is the date of your dad’s annual financial statement … to keep his cash balance as high as possible,” the April 2015 email said.
Oct 12, 2:38 PM EDT
Ex-Trump CFO Allen Weisselberg returns to the stand
Former Trump Organization CFO Allen Weisselberg has returned to the stand, nine months after he was sentenced to five months in prison for evading more than $1.7 million in taxes on unreported income in the form of company-provided perks.
One day before his sentencing in January, Weisselberg signed a severance agreement with his former employer saying that if he complied with all the conditions of the agreement, he would receive $2 million spread out over two years, according to court records.
One of those conditions, state attorney Louis Solomon highlighted in court, prevented Weisselberg from voluntarily cooperating with an investigation of his former company or boss.
“I didn’t give it a lot of thought, to be honest,” Weisselberg said when asked about the section of the agreement preventing him from cooperating with investigators.
“Is it just a coincidence that under this severance agreement, you are being paid $2 million, which is coincidentally the exact amount you were ordered to pay under your guilty plea?” Solomon asked.
“Coincidence,” Weisselberg replied.
Oct 12, 1:38 PM EDT
Bank’s loans to Trump were ‘good credit decision,’ says exec
Deutsche Bank’s $378 million in loans to the Trump Organization was a “good credit decision,” the bank’s former risk management executive told the court at the end of more than a day of testimony.
“I think we did a reasonably thorough analysis of the information,” former Deutsche Bank executive Nicholas Haigh testified under cross-examination by the defense.
An internal Deutsche Bank group evaluated Trump’s financial information, personally visited Trump Organization offices to review bank and brokerage records, and conducted some appraisals of property explicitly used as collateral, according to Haigh.
Though the value that Deutsche Bank determined for the properties often differed by hundreds of millions of dollars compared to the Trump-provided value, the entities continued to have what internal bank documents described as a “long and satisfactory relationship.”
“Using a Deutsche Bank-adjusted value for the assets, the net worth still exceeded $2.5 billion,” Haigh said, referring to Trump’s net worth as it related to a loan covenant.
When Trump decided to run for president and won the election, Deutsche Bank was supportive of the business relationship, though management was careful to monitor their particularly high-profile client, according to internal bank documents presented at trial.
“Note that the relationship continues to be monitored at the highest levels of senior management within the firm and any issues arising from the Guarantor’s status as President of the United States are immediately addressed, taken to the appropriate Reputation Risk committee, and discussed with appropriate legal counsel,” a credit report said.
When asked directly if the decision to work with Trump was a “good credit decision” by defense attorney Clifford Robert, Haigh responded, “I generally agree with that.”
During redirect questioning, state attorney Kevin Wallace stopped short of directly asking Haigh if he would have still done business with Trump had he known about the inflated value of Trump’s assets. But he asked Haigh whether Trump’s financial information could have been incomplete.
“You have no way of knowing if there was information that wasn’t provided to you?” Wallace asked.
“That is correct,” Haigh said, marking the end of his questioning.
Oct 12, 10:19 AM EDT
New York AG not in attendance for 2nd day
As the trial’s eighth eighth day gets underway, New York Attorney General Letitia James is absent from court for a second day.
While James attended the first six days of the trial, she did not appear at the proceedings yesterday.
Roughly a dozen lawyers and staff from the New York attorney general’s office have been attending the trial each day.
Oct 12, 8:44 AM EDT
Defense to scrutinize Deutsche Bank’s due diligence
Trump attorney Jesus Suarez will continue his cross examination of former Deutsche Bank risk management executive Nicholas Haigh when Trump’s civil trial resumes this morning.
Deutsche Bank was the Trump Organization’s largest single lender between 2011 and 2022, loaning the former president upwards of $300 million through the bank’s private wealth management division.
Describing himself as an “ultimate decider” of the loans’ riskiness, Haigh testified Wednesday that his decision-making process relied on Trump’s financial statements — documents that the New York attorney general alleges were fraudulent.
“I assumed that the representations of the assets and liabilities were broadly accurate,” Haigh said yesterday.
Earlier witnesses have testified about how Trump’s financial documents were drafted, finalized, and sent to banks — but Haigh is the first witness to testify from the perspective of the banks, which the attorney general says were allegedly deceived by Trump’s inflated financial statements.
Suarez, during his first hour cross examining Haigh on Wednesday, said Deutsche Bank was a sophisticated company that profited from the loans.
Haigh also acknowledged that the bank failed to conduct its own independent appraisals of Trump’s top properties, and did not rigorously examine his financial information.
Oct 11, 5:54 PM EDT
Trump’s business drew little scrutiny from bank, defense says
Deutsche Bank was a serious company in business with Donald Trump to make money, defense attorney Jesus Suarez said during his cross examination of former Deutsche Bank executive Nicholas Haigh.
At the height of its relationship with the Trump Organization, the company loaned Trump over $378 million and failed to commission independent appraisals of Trump’s properties, Haigh acknowledged. While the bank listed lower estimates for the value of Trump’s assets year after year, it continued to do business with Trump and his company.
“We … the bank hadn’t done all the due diligence one would do in the sense of the opinion of value you see in an appraisal,” Haigh said, at one point agreeing with the defense’s characterization that the bank’s internal value services group conducted “sanity checks” on the numbers.
The direct examination of Haigh by state attorney Kevin Wallace also left a central question about Deutsche Bank’s activity unanswered.
In a letter to the court and in previous arguments, lawyers for the attorney general suggested that Haigh might have turned away Trump’s business if he had known that Trump’s assets were inflated in value.
“As this Court noted during summary judgment arguments, Mr. Haigh testified during OAG’s investigation that he may not have authorized lending to the borrower if he had at that time been aware of the inflated asset values contained in Mr. Trump’s SFCs [statements of financial condition],” a lawyer for the attorney general wrote to the court in a letter last week.
Wallace never directly posed the hypothetical to Haigh during his direct examination, leaving the question unresolved.
Court subsequently adjourned for the day, with Suarez telling the court he plans to continue his cross examination of Haigh through Thursday afternoon.
Oct 11, 4:06 PM EDT
Bank wouldn’t extend Trump credit to buy Buffalo Bills, exec says
Former president Donald Trump and his company bid $1 billion in 2014 in an attempt to purchase the Buffalo Bills football team.
The only problem was that Trump needed a bank to help finance his bid.
Former Deutsche Bank executive Nicholas Haigh testified that when Trump turned to his bank for help, bank executives declined, fearing it would increase their financial exposure to Trump.
“Deutsche Bank was not willing to increase its credit exposure to Donald Trump at that time,” Haigh said.
But the bank was still willing to help Trump by sending a letter to support his bid, according to Haigh — on the condition that Trump Organization controller Jeffrey McConney certify that the company was still in compliance with the covenants of the three outstanding loans the bank had given Trump.
McConney verified that Trump had over $300 million in liquid assets in 2014, and that it suffered no material decrease in the value of his illiquid assets, according to a document entered into evidence today.
With that verification, Deutsche Bank issued a letter that Trump had the “financial wherewithal” to fund his bid.
Trump’s effort to purchase the Bills was ultimately unsuccessful.
Following this line of questioning, state attorney Kevin Wallace concluded his direct examination of Haigh. But he never asked Haigh if he would have approved Trump’s loans had he known about the inflated assets alleged by the attorney general.
In a letter to the court and in previous arguments, lawyers for the attorney general had suggested that the hypothetical question would be a central element of Haigh’s testimony.
Oct 11, 1:58 PM EDT
Trump had to maintain $2.5B net worth for loan, banker says
When Donald Trump negotiated a $125 million loan from Deutsche Bank related to his Trump National Doral golf club, the former president agreed to maintain a minimum net worth of $2.5 billion as a condition of the loan, former bank executive Nicholas Haigh testified.
The loan memorandum prepared by Deutsche Bank included a covenant that the “Guarantor shall maintain a minimum net worth of $2.5 billion excluding any value related to the Guarantor’s brand value,” according to a document marked as evidence today.
The New York attorney general alleges that Trump’s actual net worth at the time of the loan agreement was only $1.5 billion, an amount that would have triggered a default.
Retired Deutsche Bank executive Nicholas Haigh testified that he was involved in the decision to set the $2.5 billion figure, which he believed would protect the bank from exposure if the property failed or the broader market declined.
“It was set in order to make sure the bank was fully protected under adverse market conditions,” Haigh testified.
To calculate Trump’s net worth, Deutsche Bank looked at what Haigh described as Trump’s four “trophy properties,” all in Manhattan: Trump Tower, 40 Wall Street, Trump Park Avenue, and Niketown — a ground lease for a property adjoining Trump Tower.
Since the properties themselves were not provided as collateral for the loan, Deutsche Bank did not commission independent appraisals for the properties, and instead used a modified version of Trump’s own numbers.
“The bank normally only commissions appraisals on assets taken as collateral,” Haigh said.
Deutsche Bank adjusted their assessment in 2012, when they learned of a separate appraisal of Trump Tower that offered a lower value of the property than what Trump had provided.
“The bank felt that it had an independent view on the value of the asset,” Haigh said of the appraisal that prompted his bank to lower their value for Trump Tower from $1.2 billion to $992 million.
Oct 11, 11:59 AM EDT
Bank relied on Trump’s financial statement to secure loan
Deutsche Bank relied on the strength of Donald Trump’s “financial profile” when deciding to loan the former president roughly $125 million related to the purchase of the Trump National Doral golf club in 2011, according to retired Deutsche Bank executive Nicholas Haigh.
Haigh testified that because Trump used the golf course and spa as collateral — relatively “unusual” assets that Deutsche Bank would struggle to sell in the event of a foreclosure — the bank leaned on the strength of Trump’s larger portfolio.
“[Trump] is guaranteeing he will repay our loan — all the money due on the loan,” Haigh said about the terms of the loan. “He is also guaranteeing if the result is losing money, he will pay the cost of that shortfall.”
Haigh said that he personally reviewed Trump’s statement of financial condition when determining whether to sign off on the loan.
“My conclusion was the client owned a lot of real estate, which was not surprising,” Haigh said about his findings after reading Trump’s financial statement.
Previous witnesses in the trial have offered insights into how Trump’s annual financial statement was drafted, finalized, and provided to banks to fulfill loan obligations. Haigh is the first witness to testify from the perspective of the banks, which considered the statements when deciding whether to do business with Trump.
Oct 11, 10:56 AM EDT
‘Nobody forgot to check off a box,’ judge says about lack of jury
Responding to lingering questions about the lack of a jury at the ongoing civil trial, Judge Engoron stated on the record that Trump would not have been entitled to a jury trial.
“We are having a non-jury trial because we are hearing a non-jury case,” Engoron said, dispelling claims that the trial lacks a jury because Trump’s lawyers simply forgot to check off a box or file a motion.
“It would have not helped to make a motion. Nobody forgot to check off a box,” Engoron said.
During her opening statement, Trump’s lawyer Alina Habba said the former president would have preferred a jury trial, and Trump himself has made multiple posts on his Truth Social platform about the alleged injustice stemming from the lack of a jury.
“The AG checked off non-jury, and there was no motion for a jury,” Engoron said about the process in Trump’s case — but he added that if a motion for a jury trial had been filed, he would have rejected it because the attorney general asked for “equitable” relief, which does not entitle participants to a jury trial.
“I would like to say thank you, your honor,” Habba said about the clarification.
Oct 11, 10:36 AM EDT
New York AG not attending trial today
New York Attorney General Letitia James is absent from the courtroom this morning.
James attended the first six days of the trial, which started last Monday.
Former President Trump and Trump Organization VP Eric Trump both attended the first three days of the trial.
Oct 11, 9:39 AM EDT
Bank exec told AG he was unaware of inflated valuations
While the Trump Organization’s relationship with Deutsche Bank goes back 30 years, the attorney general alleges in her complaint that in 2011, Trump began doing business with the private wealth managers at the bank, rather than bankers who specialized in commercial real estate.
“In essence, rather than obtain credit facilities through the wing of Deutsche Bank with an expertise in commercial real estate, Mr. Trump began to seek funds from a wing of Deutsche Bank focused on servicing ultrawealthy clients,” the attorney general’s complaint said. “Hence, Mr. Trump’s personal guaranty, and his representations regarding his finances that backed up that guaranty, featured prominently in Mr. Trump’s loan transactions through the [private wealth management] wing of Deutsche Bank.”
During the attorney general’s investigation, Deutsche Bank credit risk executive Nicholas Haigh told investigators that he “may not have authorized” Trump’s loans if he was aware of the inflated values in Trump’s financial statements, according to a letter the state submitted to the court.
Oct 11, 9:04 AM EDT
Deutsche Bank executive set to take stand
Donald Trump’s civil fraud trial is set to resume this morning with the testimony of Nicholas Haigh, a credit risk executive who worked at Deutsche Bank when it issued loans to the former president.
Deutsche Bank was the largest single lender to the Trump Organization between 2011 and 2022, according to the New York attorney general.
Owing approximately $340 million to the bank at one point, the Trump Organization used Deutsche Bank to secure favorable loans related to its purchase of the Old Post Office Hotel in Washington, D.C., the Trump International Hotel and Tower in Chicago, Illinois, and Trump National Doral golf club in Florida, according to the AG’s complaint.
Oct 10, 5:23 PM EDT
Ex-CFO can’t say who OK’d statements after Trump became president
Ex-CFO Allen Weisselberg, who testified earlier Tuesday that Trump approved his financial statements before they were finalized during the years between 2011 and 2016, was unable to recall who approved financial statements after Trump was elected president in 2016.
While he recalled discussing some elements of the statements with Trump Organization VP Eric Trump, he declined to say that either Eric or VP Don Jr. had final say regarding the statements.
Court then adjourned for the day.
Court is set to resume Wednesday morning with the testimony of Deutsche Bank risk manager Nicholas Haigh, who is testifying early due to a scheduling conflict.
Weisselberg is scheduled to return to the witness stand later Wednesday.
Oct 10, 4:40 PM EDT
Ex-CFO OK’d financial documents used to prevent loan default
Ex-Trump CFO Allen Weisselberg testified that he certified that Trump’s financial statements were “true, correct and complete” so the documents could be provided to lenders to prevent a breach of contract resulting in a loan default.
“Please see the attached report required per our loan documents, for the above referenced loan,” a Trump Organization employee would write to lenders like Wells Fargo, according to examples entered into evidence.
The employee would include a certification, signed by Weisselberg, attesting to the accuracy of Trump’s financial documents.
“Did you understand that if you failed to provide this, the Trump organization would be in breach of its obligations under the loan agreement?” state attorney Louis Solomon asked Weisselberg for each email.
“Yes,” Weisselberg replied.
Oct 10, 3:37 PM EDT
Weisselberg says Trump signed off on financial statements
Donald Trump would approve his financial statements before they were finalized between 2011 and 2016, ex-Trump CFO Allen Weisselberg testified.
Weisselberg said that Trump often had feedback about the notes sections of the statements, which contained more detailed descriptions of Trump’s properties.
“‘Don’t use the word beautiful. Use the word magnificent,'” Weisselberg offered as an example of the kind of feedback Trump would provide.
Earlier Tuesday, Weisselberg testified that he did not meet with Trump or attorney Michael Cohen to review the statements. Returning to the topic after the lunch break, Weisselberg described Trump’s final review of the document as a regular occurrence before he became president.
“Did you ever send it to the Mazars [accountants] … as a final version before Mr. Trump signed off on it?” state attorney Louis Solomon asked.
“Not that I can remember, no,” Weisselberg said.
Oct 10, 2:18 PM EDT
Ex-CFO suggested 30% ‘brand premium’ for golf course valuations
Ex-Trump CFO Allen Weisselberg explained the Trump Organization’s process for valuing its marquee properties as a complicated, months-long process during which the firm’s controller, Jeffrey McConney, would reach out to appraisers and brokers to better determine their value.
“This took months to prepare. It was not a simple task,” Weisselberg said, adding that he reviewed McConney’s final product at a “30,000-foot level.”
But Weisselberg acknowledged that he often intervened in the process to push McConney in a certain direction.
In one example, Weisselberg testified that he suggested McConney add a 30% brand premium for seven of Trump’s golf courses — adding tens of millions of dollars in value without disclosing the reasoning.
“Was the 30% premium you directed Mr. McConney to add to the fixed assets disclosed in the statement of financial condition?” Solomon asked.
“No,” Weisselberg said.
During a later portion of his direct examination, Weisselberg testified he sent Trump Organization employee Patrick Birney — who took over handling Trump’s financial statements from McConney — a newspaper clipping about a nearby Palm Beach property in order to support the valuation of Trump’s Mar-a-Lago Club.
“Patrick — hold for next year DJT f/s, Let’s see what it ends up selling for,” a handwritten note from Weisselberg on the clipping said.
Weisselberg acknowledged his hesitancy to use that property’s asking price to help value Mar-a-Lago.
“Anyone can ask anything for a dollar amount. Doesn’t mean it’s going to sell,” Weisselberg said.
Oct 10, 2:01 PM EDT
Ex-CFO acknowledges firm’s fundamental failures of responsibility
Ex-Trump CFO Allen Weisselberg acknowledged under questioning that the Trump Organization failed to fulfill some of the basic promises detailed in letters between the firm and its external accountant, Mazars USA.
“Do you believe the Trump Organization fulfilled that fundamental responsibility?” state attorney Solomon asked Weisselberg regarding a 2017 letter from Mazars that outlined the Trump Organization’s responsibility to select the accounting principles used in financial statements.
“No,” Weisselberg responded.
Asked about a separate letter outlining the Trump Organization’s responsibility to comply with generally accepted accounting principles, or GAAP, Weisselberg initially suggested that the Trump Organization fully relied on Mazars to comply with the accounting standards.
“We relied on Mazars to understand GAAP,” Weisselberg said.
“You were relying on Mazars to make a representation back to Mazars?” Solomon said, prompting Weisselberg to reverse his statement.
When questioned about the seemingly boilerplate accounting obligations to which the Trump Organization agreed, Weisselberg appeared to struggle to articulate who at the Trump Organization fulfilled the basic responsibilities as outlined.
Oct 10, 1:21 PM EDT
Weisselberg denies discussing financial statements with Trump
After initially evading the state’s question, ex-Trump CFO Allen Weisselberg denied that he ever met with Trump to discuss his financial statements.
“Did you ever meet with Donald Trump or Michael Cohen where there was discussion of the statement of financial condition before it was finalized?” state attorney Louis Solomon asked.
Weisselberg initially responded that he did not recall such a meeting happening, before answering more definitively.
“No. I don’t believe it happened,” Weisselberg said.
Judge Engoron, appearing skeptical of the answer, asked Weisselberg to confirm.
“Could it have happened, and you just don’t remember?” Engoron asked.
“I am saying it did not happen,” Weisselberg responded.
The attorney general’s opening statement for the case included a portion of the deposition of former Trump attorney Michael Cohen, who claimed that Trump met with him and Weisselberg to direct them to increase his net worth, in order “to be higher on the Forbes list” of billionaires.
“Allen and I were tasked with taking the assets, increasing each of those asset classes in order to accommodate that eight-billion-dollar number [Trump requested],” Cohen said in the deposition.
Oct 10, 11:55 AM EDT
Weisselberg concedes Trump’s triplex is smaller than valuation
Former Trump Organization CFO Allen Weisselberg testified that Trump’s triplex apartment in Trump Tower is 10,996 square feet — which is a third the size that Trump claimed on financial documents.
In October 1994, Trump signed a document that certified his penthouse triplex is 10,996 square feet, but his statements of financial condition for several years beginning in 2012 listed the apartment as 30,000 square feet.
An attorney with the New York attorney general’s office showed the page with Trump’s signature to Weisselberg, who appeared to struggle to explain the discrepancy.
“It was always in my mind a de minimis asset on the statement of financial condition,” Weisselberg said. “I never even thought about the apartment.”
Louis Solomon of the attorney general’s office confronted Weisselberg with emails from Forbes magazine seeking clarity about the apartment’s size, as well as a letter signed by Weisselberg certifying the 30,000 square foot figure to the Trump Organization’s then-accountant, Mazars USA.
Weisselberg offered a lengthy take on the discrepancy, prompting Judge Arthur Engoron to intercede.
“Your role is to answer the questions, not to give speeches. Please just answer the questions,” Engoron said.
“Forbes was right, the triplex was actually only 10,996, right?” Solomon asked.
“Right,” Weisselberg finally conceded.
“I’ve been through quite a bit the last two years,” Weisselberg said at one point during the morning’s questioning. The former CFO moved to Florida following three months in jail after he pleaded guilty last year to criminal fraud charges and subsequently testified against the Trump Organization.
Oct 10, 9:47 AM EDT
Weisselberg to be questioned about valuations
Ex-Trump CFO Allen Weisselberg is expected to face questions this morning about his work valuing properties like Trump’s triplex apartment in Trump Tower and Trump’s 40 Wall Street building, as well as the Trump Organization’s efforts to secure loans from banks and Weisselberg’s direct conversations with the former president.
Weisselberg is the second named defendant to testify in the ongoing civil trial.
Trump Organization controller and co-defendant Jeffrey McConney, who concluded his testimony on Friday, was deemed a hostile witness by Judge Arthur Engoron, giving the state more latitude in their questions.
Oct 10, 9:08 AM EDT
Ex-CFO Weisselberg last year pled guilty to tax fraud
Ex-Trump Organization CFO Allen Weisselberg’s expected testimony this morning comes six months after he was released from New York City’s Rikers Island jail complex after pleading guilty last year to 15 felony charges related to a long-running scheme to avoid $1.7 million in taxes while working for the Trump Organization.
As a condition of his plea deal, Weisselberg testified last year in the Manhattan district attorney’s criminal trial of the Trump Organization itself.
“Are you embarrassed about what you did?” Trump Organization attorney Alan Futerfas asked Weisselberg during the criminal trial last November.
“More than you can imagine,” replied Weisselberg, who testified that Trump himself was unaware of his tax evasion scheme.
The Trump Organization was convicted and later paid a $1.6 million fine imposed by the judge overseeing the case.
Oct 10, 8:22 AM EDT
Ex-Trump CFO Allen Weisselberg expected to take stand
Former Trump Organization chief financial officer Allen Weisselberg is expected to testify when former President Donald Trump’s civil fraud resumes this morning.
A named defendant in the case alongside Trump and his adult sons, Weisselberg allegedly supervised and approved the inflated valuations in Trump’s financial statements at the center of the state’s case, according to prosecutors.
He’s also alleged to have personally met with the former president each year between 2011 and 2016 to review and get approval for the fraudulent financial statements.
“Mr. Trump made known through Mr. Weisselberg that he wanted his net worth on the Statements to increase — a desire Mr. Weisselberg and others carried out year after year in their fraudulent preparation of the Statements,” New York Attorney General Letitia James wrote in her initial complaint.
(ST MARYS, Ga.) — A man who was wrongfully convicted and spent 16 years in jail was fatally shot by a Camden County deputy during a traffic stop in Georgia on Monday.
Leonard Allan Cure, who was 53, was wrongfully convicted in 2003 of armed robbery, according to the criminal justice organization Innocence Project. Cure was a client of the organization and was exonerated in December 2020 due to a collaborative reinvestigation by the organization and the Conviction Review Unit of the Broward County State Attorney’s Office in Florida.
At about 7:30 a.m. on Monday, a deputy stopped Cure, according to the Georgia Bureau of Investigations. A spokesman for the Camden County Sheriff’s Office told The New York Times that Cure was pulled over for speeding. Cure reportedly got out of the car at the deputy’s request and complied with the officer’s commands until he learned he was under arrest, authorities said.
Police said the deputy used a stun gun against Cure, and Cure allegedly “assaulted” the deputy. Officials said the deputy used the stun gun a second time, as well as a baton, but claimed Cure still did not comply.
“The deputy pulled out his gun and shot Cure,” the GBI said in a statement. EMTs treated Cure, but he died.
No deputies were injured in the incident, according to the bureau. ABC News has reached out to the Camden County Sheriff’s Office.
The GBI is investigating the incident and the findings will be sent to the Brunswick Judicial Circuit District Attorney’s Office for review.
Cure was on his way home from visiting his mother who lives in south Florida, according to the Innocence Project. Cure, who had just been granted $817,000 in compensation for his wrongful conviction by the Florida Legislature, was planning on attending college for music or radio production and was in the process of buying a home, the Innocence Project and the Broward County Attorney’s Office said.
Cure was the first person exonerated by Broward County’s Conviction Review Unit.
“The Leonard we knew was a smart, funny and kind person,” the Broward County State Attorney’s Office said in a statement.
“After he was freed and exonerated by our office, he visited prosecutors at our office and participated in training to help our staff do their jobs in the fairest and most thorough way possible,” it continued. “He would frequently call to check in on Assistant State Attorney Arielle Demby Berger, the head of the Conviction Review Unit, and offer our team encouragement to continue to do the important work of justice.”
Cure was exonerated after the discovery of a receipt that showed he was miles away from the crime scene at the time of the robbery, and that a victim was shown multiple photos of Cure in a photo array in an “unreliable, suggestive identification procedure,” the Innocence Project said in a statement.
(NEW YORK) — New York City officials are limiting the time asylum-seekers with children can spend in the city’s shelter system.
Starting next week, city officials will begin notifying some families that they have 60 days to find alternative housing. Last month, NYC Mayor Eric Adams’ administration announced it would be handing out 30-day notices for adult migrants without children.
The move to restrict the amount of time in the shelter system comes as the city continues to grapple with a large number of asylum-seekers coming to the city since spring of last year. Over 126,000 asylum-seekers have moved through the shelter system so far since Spring 2022.
“For over a year, New York City has led the response to this national crisis, but significant additional resources, coordination, and support are needed from all levels of government. With over 64,100 asylum seekers still in the city’s care, and thousands more migrants arriving every week, expanding this policy to all asylum-seekers in our care is the only way to help migrants take the next steps on their journeys,” Mayor Adams said in a statement Monday.
The mayor’s office said it would pair the notices with “intensified case work” to help asylum-seekers figure out their next steps. A spokesperson for the mayor’s office told ABC News that if someone fails to secure housing by the deadline, they’ll need to return to the city’s intake center and seek a new placement.
Some advocates believe issuing the notices is a way for the Adams administration to limit its obligation’s under the city’s “right-to-shelter” laws which require the city to provide shelter for anyone in need. The city has asked a court to consider allowing the city to consider allowing it relinquish some of those obligations if it doesn’t have “the resources and capacity to establish and maintain sufficient shelter sites, staffing, and security to provide safe and appropriate shelter,” according to court filings.
On Monday, the administration announced it will open a temporary shelter at Floyd Bennett Field in the coming weeks that will be serve approximately 500 families in a “semi-congregate setting” with privacy dividers and locks.
“It’s outrageous the way the Adams administration continues to go out of its way to gut New York City’s right-to-shelter protections. This policy ensures that all New Yorkers, no matter when they arrived here, can maintain a roof over their heads while they stabilize their lives and get on the road to self-sufficiency,” Murad Awawdeh, the executive director of the New York Immigration Coalition, said in part in a statement.
He added, “Now, Mayor Adams is putting children in danger by forcing some asylum seeking families to stay in congregate settings as well as mandating families re-apply for shelter after 60 days, a move that creates unnecessary bureaucratic hurdles for people who are already struggling.”
The spokesperson for the mayor’s office told ABC News they hoped the city could continue housing migrants without forcing families with children on to the streets and reiterated the administration’s call for more support from the state and federal governments.
