(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 while lowering his tax burden. 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 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.
(ROCKLAND HARBOR, Maine) — One person is dead and three people have been injured when a mast broke on a schooner in Rockland Harbor, Maine, and fell onto the deck of the vessel.
Thirty-three people were aboard the Grace Bailey, a 118-foot schooner that was approximately one mile east of Rockland Harbor in Maine, when the New England Command Center received a call for help around 10 a.m. Monday “requesting assistance after their mast reportedly broke and fell onto the deck causing head and back injuries to four people,” according to a statement from the United States Coast Guard.
Coast Guard watchstanders immediately dispatched a Coast Guard Station Rockland 47-foot motor lifeboat (MLB) to the scene of the accident.
“The MLB crew arrived on scene and transferred a woman from the Grace Bailey to Rockland Harbor where she was transferred to awaiting EMS and pronounced deceased,” the U.S. Coast Guard said. “The MLB crew returned to the Grace Bailey with two EMS personnel to retrieve the three remaining injured people. The three people were transferred to EMS at Rockland Harbor and taken to Pen Bay Medical Center in Rockport.”
The medical conditions of the three injured people are currently unknown.
“In this time of sorrow, we offer our deepest condolences to the grieving family, and our most heartfelt wishes for a swift recovery to those harmed,” said said Capt. Amy Florentino, the Coast Guard Sector Northern New England commander. “Our investigation aims to identify causative factors that led to this tragic incident.”
Commercial salvage personnel responded following the accident and towed the Grace Bailey to Rockport Harbor where officials will continue their investigation into the schooner’s demasting.
Vermont State Police released this photo of Honoree Fleming amid their investigation into her death. — Vermont State Police
(CASTLETON, Vt.) — A retired university dean who was married to Pulitzer Prize-winning writer Ron Powers was found shot to death on a Vermont trail, police said, as a manhunt is underway for the suspect.
Honoree Fleming, 77, was found dead on a rail trail Thursday in Castleton, Vermont State Police said. She died from a gunshot to the head, and the medical examiner determined the manner of death a homicide, police said.
Fleming, who lived in the town, was a retired Dean of Education and “beloved teacher” at Vermont State University Castleton Campus, the university said.
“Honoree was a part of the Castleton family and was beloved by faculty, staff, and students,” the university said in a statement. “This is an unbelievable tragedy for the Castleton campus and for all of Vermont State University. Honoree will be deeply missed.”
Prior to joining Castleton, Fleming was a faculty member at Trinity College, Middlebury College and the Icahn School of Medicine at Mount Sinai.
Fleming was the wife of Powers, a Pulitzer Prize-winning journalist and New York Times bestselling author, the university said. He won the Pulitzer Prize for Criticism in 1973 for his critical writing about television in 1972 while a TV and radio columnist for the Chicago Sun-Times.
Powers said in a Facebook post Friday night that Fleming was walking “along her favorite trail near the college” when she was shot.
“I am still in shock,” he wrote. “Those of you who knew her know that she was beautifully named. I have never known a more sterling heart and soul than hers. She has taken far more than half my own heart and soul with her.”
The suspect in the fatal shooting is at large and considered armed and dangerous, police said.
Investigators are asking the public to review home and business surveillance systems to help track the suspect, Vermont State Police said on Friday.
Officers responded to a report of a deceased woman on the rail trail in Castleton around 4:30 p.m. ET Thursday, police said.
A witness reported hearing gunshots and seeing a possible suspect headed northbound on the rail trail in the direction of the Castleton campus, police said.
The suspect is described by police as being a white man, approximately 5’10” with short red hair. He was last seen wearing a dark-colored T-shirt and carrying a black backpack, police said.
There were no witnesses to the crime itself, Maj. Daniel Trudeau with the Vermont State Police told reporters on Friday.
Residents were urged by police to “remain vigilant” amid the search for the suspect.
“The suspect is in all likelihood armed and dangerous, so should be treated as such,” Trudeau said.
State police are asking the public and businesses in the Castleton area to review their surveillance systems for the suspect, from early afternoon into the evening hours on Thursday.
“We have no idea where this gentleman suspect took off,” Trudeau said.
He added, “We’re relying on the public to really help us here … We really need a good first clue.”
The Vermont State Police said Fleming started walking on the trail around 4 p.m. and was wearing a white-and-blue striped shirt, black pants and black sneakers. Police released an image of her on Saturday while asking anyone who saw her walking to contact them.
The Castleton campus closed Friday and a shelter-in-place order is in effect for those on campus due to the ongoing investigation, the university said.
Anyone with information is asked to contact the Vermont State Police at 802-773-9101.
West Maui began reopening Sunday to visitors just two months after a wildfire devastated the town of Lahaina.
The reopening did not come without outrage from some residents, many of whom signed a petition to delay the reopening as families continue to struggle to “find shelter, provide for their children’s education, and cope with emotional trauma,” according to the petition.
Homes have been flattened and are completely inhabitable. Businesses have been decimated. Some loved ones remain unaccounted for and residents have been grieving the loss of 97 people who died in the tragedy.
The petition has received more than 10,000 signatures.
The fact that tourism is resuming so soon around the outskirts of a town made unrecognizable by the wildfires has reignited an ongoing debate about Hawaii’s reliance on tourism.
“There is just not a lot of activities like there usually is for these people to do, so a lot of people are wondering, why do they want to come here?” said Jordan Ruidas, a community organizer and resident.
Tourism is the No. 1 driver of that state’s economy, according to Hawaii Tourism Authority, and businesses across the island have been impacted by the lack of visitors since the Aug. 8 wildfires.
But some residents link tourism and its historical links to colonialism with many of the issues plaguing the Islands, including lack of access to clean water, the housing crisis, and pollution and destruction of Hawaiian lands.
“It’s a great business for Hawaii, but the difficult thing for us here is that there is not a street, a community, a county. There’s nowhere that you can hide from tourism in Hawaii,” said Susie Pu, a hotel manager on Maui.
She continued, “The most important thing is that we find a balance between the Hawaiian culture and tourism. Hawaiian people need to be benefiting from tourism equally. And I do not see that.”
Hawaii before tourism
Hawaii didn’t always rely on tourism as its main source of income.
According to research from the University of Hawaii, Hawaiian society was self-sustaining and run in cooperative, extended ohana — or family — that each manned subdivisions of land.
Native Hawaiians were recorded to have been living “well above subsistence levels, with extensive time available for cultural activities, sports, and games” before their long period of isolation from outsiders came to an end, the University of Hawaii found.
Contact with the outside world in the 1770s changed Hawaii drastically. Deaths caused a massive wave of fatalities, leading to a 90% decline in the Native Hawaiian population, according to research from the National Academy of Medicine.
The Hawaiian Kingdom and monarchy were formed during this period of change, adopting Western political strategies to settle disputes between competing Hawaiian states. The Islands also became integrated into the global market, losing its past self-sustaining system.
This drastic social, economic, and political change was marked by a shift to sugar production when a treaty with the U.S. exempted sugar firms on the island from high tariffs.
“The story of sugar is really, really important because in a lot of ways it was the wealthy and powerful corporations that promoted sugar to the kingdom that really were responsible for seeking markets in the United States,” Jonathan Kay Kamakawiwoʻole Osorio, the dean of the Hawaiʻinuiākea School of Hawaiian Knowledge, said.
“That’s all a part of the story of not just the rise, but the fall of the [Hawaiian] kingdom,” said Osorio.
As production expanded, American corporations producing sugar on the Islands sought to keep prices high and labor costs lower, hiring cheaper immigrant labor and lobbying for an immigration policy that would allow them to do so, historians say.
“While sugar did actually generate a great deal of income, most of that income really acted to sort of replace Native Hawaiians in the country,” said Osorio.
Efforts to expand sugar production and house waves of imported labor pushed Native Hawaiians from their land, home, and island.
Throughout this time, laborers were organizing against low wages and poor benefits, and “the sugar companies began to lose a little bit of control. Everybody can sort of see that in the future, sugar is not going to be as profitable as it once was,” according to Osorio.
However, World War II and the bombing of Pearl Harbor in 1941 put labor rights efforts to a halt.
It wasn’t until the late 1940s that workers began to make real concessions — getting better benefits and salaries.
“Sugar companies really basically are looking at an industry that’s not nearly as conducive to profits as it once was. Plus, in the post-war world, there’s also new competition from places like the Philippines,” Osorio added.
By the 1970s, more and more plantations were shutting down and they were moving toward using their lands for a tourist economy.
“Tourism would not exist at the scale that it exists today if it weren’t for the takeover,” Osorio said.
Vulnerability in tourism reliance
Following the wildfires on the West side, occupancy at the oceanfront condo resort Hana Kai Maui on the other side of the island was impacted almost immediately.
“We have always operated at a really high occupancy, almost like 95% year round. The day of the fires or the day after the fires, it was just such a downward slide,” Pu said.
“We lost hundreds of 1000s of dollars in reservations over about a one-week period. And we’re only a 17-unit business so it was a lot. We’re recovering,” she added.
Noah Drazkowski, who was born and raised in West Maui and owns a local business, told ABC News in a previous interview that he’s been grieving alongside his community while looking for ways to keep his local business afloat.
“The majority of our income is from tourists, tourism, and I wish that we could say that we can survive on only the local community support,” said Drazkowski.
Some business owners are torn about the future of tourism in Maui.
In 2022 alone, Hawaii saw nearly 10 million visitors, according to the state Department of Business, Economic Development & Tourism. In 2020, amid the COVID-19 pandemic, the Islands saw roughly 2.7 million.
Now, approximately 70% of every dollar is generated directly or indirectly by the visitor industry, according to the Maui Economic Development Board.
The COVID-19 pandemic highlighted how life in Hawaii could be without “overtourism,” Osorio said.
“We started really seeing what happens to beaches and what happens to the ocean and what happens to mountain trails, hiking trails when they are free of so many people,” said Osorio. “The quality of life in so many ways improves not [just for the people] but for other species that have depended on this environment for a long time.”
Pu added: “We want tourists in Hawaii, but we also want to be able to live peacefully here and we want our forests to remain intact.”
The impacts of tourism
Being a popular tourist destination comes with its challenges.
The Aloha State is experiencing one of the worst housing crises in America, with some of the highest housing costs in the nation and the fourth-highest rate of homelessness per capita in the country, according to the University of Hawaii Economic Research Organization and the U.S. Department of Housing and Urban Development.
The U.S. has acknowledged its historical responsibility for causing this housing crisis among Native Hawaiians through its 1921 Hawaiian Homes Commission Act, a reparations policy that set aside land for Native communities after the violent displacement and removal of Native Hawaiians.
Parts of Maui have also been under a water conservation notice in recent years, as an intense drought and dry conditions limit the region’s access to water. With hotels and resorts taking up their share of the water, some locals wish that water would be directed toward residents, especially following the deadly wildfire in which firefighters in Lahaina claimed that their hoses ran dry.
Politicians have been under pressure from some residents to look for a way to diversify the economy and for land to be given back to the Native Hawaiian population. As tourism comes back toward the disaster area, the conversation around tourism is unlikely to settle down.
“Our desire is to provide for ourselves so that we can properly feed ourselves, so that we can actually have places to live, so that we can protect the lands from misuse,” said Osorio.
(OHIO) — Legislation that incentivizes gun owners in Ohio to secure their weapons is getting major support from gun control advocates and gun rights groups alike.
One of the bill’s sponsors told ABC News that he hopes that it can spur a bigger discussion both in the state and country on safe storage and safety protections for firearms.
Ohio’s HB 186, which was introduced in the state’s House of Representatives in May, would waive the state’s 5.75% sales and use tax on firearm safety devices.
State Rep. Darnell T. Brewer, who co-sponsored the bill, told ABC News that sales tax exemption would apply to numerous products already being sold in firearm shops from as low as a $30 gun lock to as high as $800 for storage lockers with biometric locks.
“It’s a little nudge and urge to gun owners to lock up and secure their guns,” he said.
HB 186 defines a “firearm safety device” as “A device that, when installed on a firearm, is designed to prevent the firearm from being operated without first deactivating the device,” and “A gun safe, gun case, lockbox, or other device that is designed to prevent access to a firearm unless an individual uses a key, a combination, biometric data, or other similar means.”
Brewer, who is not a gun owner, said that he’s been looking to find common sense solutions to gun violence and one of the most common calls he has gotten from constituents, law enforcement, non-profits and other groups is that guns are left unsecured.
That has led not only to more gun thefts, which are used in shootings, but also accidental shootings and suicides, according to Brewer.
“If these devices had been safely stored, or if these owners had a safety device, these instances wouldn’t have happened,” he said.
The representative said he has supported state bills in the past that mandated safe storage, including one that was introduced this session that mandates trigger locks for firearm sales, but none of them passed due to opposition from gun rights groups who contended it violated their second amendment rights.
That’s when Brewer said he and other leaders decided to think about a different approach.
The representative said it was hard to argue against a bill that focused on the costs of safe storage,
“What we are saying is ‘Give [gun buyers] the opportunity to have a sales tax free device so they can buy it with less hassle,'” Brewer said.
Brewer’s intentions have already sparked interest in both gun rights supporters and gun control supporters.
Representatives from the Ohio-based Buckeye Firearms Association, National Rifle Association, Moms Demand Action and Sandy Hook Promise all provided testimony in support of the bill during a Sept. 26 hearing in the Ways and Means committee hearing.
“Whether it’s a mass shooting, a suicide, an unintentional shooting, or a homicide, we must collectively do something as a society to encourage people to safely secure their firearms. HB186 is something that will encourage people to do this, and maybe something we can all agree on that makes sense,” Michelle Lee Heym, a Moms Demand Action volunteer, testified.
“This straightforward legislation does not include any mandates and recognizes that the government should not be placing additional cost barriers on citizens who wish to exercise their Second Amendment rights, and who wish to safely store their firearms,” John Webber, an NRA representative, said in his testimony.
Paul Kemp, the co-founder of the grassroots group Gun Owners for Responsible Gun Ownership, told ABC News he was surprised that the gun rights groups have expressed support for the Ohio bill.
“I suspect one of the reasons they would support is that it provides business opportunities for firearms dealers,” he said. “They’re not going to the point of supporting a mandate outright.”
Kemp, who helped push Oregon’s safe storage law two years ago, said HB 186 is a good start to get more guns safely stored, but more importantly, it will spark a bigger conversation about the benefits of safe storage.
Brewer said that’s his hope for the bill as it moves forward.
There is no date yet as to when it will be voted in the committee and advanced to the full house, but the representative said the conversation that the bill has started will get more people to think about storing their weapons.
“We can find a solution. If the NRA and Moms Demand Action agree on this bill, what else can they agree on? There are many common sense solutions we can agree to,” he said.
(NEW YORK) — A deaf man who says a truck driving company told him that they would not hire him because he couldn’t hear won over $36 million in damages by a jury a month ago.
Victor Robinson, who is in his 40s and has lived his whole life deaf, told ABC News that Werner Enterprises trucking company passed him in their commercial driver’s license (CDL) training program, but when he applied for a job in 2016, the company’s Vice President of Safety and Compliance Jamie Hamm, who was Jamie Maus at the time, told him he wouldn’t get the job.
“It was really intense,” Robinson told ABC News through an interpreter. “The person said, ‘We can’t hire you because you can’t hear,’ and hung up [the video call]. And there it was. The end. And I got to the point where I didn’t know what else to do.”
Robinson eventually reached out to the U.S. Equal Employment Opportunity Commission (EEOC). They reviewed his case and decided to file a lawsuit against Werner.
“That fact has baffled us from the beginning,” Josh Pierson, Robinson’s lawyer, told ABC News. “The fact that Victor and other deaf drivers can complete training school, can get their CDL, even attend training schools owned by Werner but then aren’t allowed to drive for the company, ultimately.”
Pierson told ABC News that Werner violated the Americans with Disabilities Act (ADA), which requires employers to provide reasonable accommodations to people with disabilities so they can perform the essential functions of their job.
Werner denies any wrongdoing.
“The company operates with the mantra that nothing we do is worth getting hurt or hurting others, whether that be its professional drivers, customers or the motoring public at large,” Werner told ABC News, in part, through a statement. “Werner prides itself on fostering an inclusive workplace where our associates are encouraged to bring their full selves to work, including our valued associates who may have a disability.”
According to Pierson, Werner thought Robinson was unfit to complete the company’s test to evaluate new truck drivers, which requires communication between the driver and instructor. Werner could have easily accommodated Robinson by implementing hand gestures or flashcards for the driver and instructor to communicate,” Pierson said.
According to Robinson, the Federal Motor Carrier Safety Administration (FMCSA) gave him a hearing exemption required of most truck drivers. It is common for the FMCSA to give exemptions to professionals with disabilities, such as diabetes, amputations, or hearing loss, Pierson said.
The jury awarded Robinson $75,000 in compensatory damages, and $36 million in punitive damages.
Pierson believes that Werner will file an appeal to the jury’s decision, reducing the amount awarded to Robinson to $300,000 because of a statutory cap for punitive damages, which a corporation would pay under the ADA.
“The company is evaluating its options relative to an appeal of this jury’s decision,” Werner said in their statement.
Robinson told ABC News it was distressing to know that the damages awarded would most likely be reduced and believes that Congress should raise the cap amount in the ADA.
“Some people look at deaf people and think that they are lesser, think they have a disease,” Robinson told ABC News. “We’re literally regular people. We’re not sick. We have skills. We have abilities. We think the same as other people. We literally just can’t hear.”
Robinson eventually acquired a truck driving job with another company and loves the career he has had for almost five years. He told ABC News that he has driven through nearly every state in the country, exploring the American landscape and its varied terrains of mountains, plains, rivers and valleys.
“People wonder how we can drive when we can’t hear. I see people driving all the time with earbuds in and with their music on loud,” Robinson told ABC News. “And that’s certainly not any different. We depend on our eyes to drive. You do, I do. It’s not about sound. It’s more about being aware, visually. Our visual acuity is much better.”
(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 while lowering his tax burden. 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.
Top headlines:
-Trump valued housing units at twice their appraisal, says controller
-AG says Trump’s request to pause trial would ‘sow chaos’
-Estate’s valuation included 7 mansions that weren’t yet built
-Trump wants trial paused while he appeals judge’s ruling
-Trump Organization controller grilled about assets
-Note on financial document suggests Trump had final say
Here’s how the news is developing. All times Eastern.
Oct 06, 4:02 PM EDT
Judge doesn’t stop trial, but pauses dissolving of Trump Org
A New York appellate judge declined pause Donald Trump’s ongoing fraud trial, after attorney’s for Trump sought a stay of the trail while they appeal Judge Engoron’s summary judgment ruling last week that decided the core of the case.
Judge Peter Moulton issued the ruling minutes after hearing oral arguments from both sides. While he did not pause the trial, he did stop the immediate cancellation of Trump’s business certificates that Engoron had ordered last week.
“This is everything owned or controlled by the defendant. Once you dissolve you dissolve,” defense attorney Christopher Kise argued in an afternoon hearing convened at the Appellate Division’s First Department. “It’s chaos. It’s chaos right now.”
The New York attorney general’s office balked at halting the trial.
“There’s just absolutely no basis for an interim stay of trial that’s already been going on for a week,” said Deputy Solicitor General Judy Vale. “It has been an enormous endeavor to get this off the ground.”
Trump’s defense insisted a pause was warranted given the magnitude of the potential consequences for Trump’s business.
“We’re not seeking delay. We’re seeking a fair trial,” Kise said.
Oct 06, 2:10 PM EDT
Questioning of controller ends on dramatic note
Prosecutor Andrew Amer ended the afternoon dramatically, questioning longtime Trump Organization controller Jeff McConney about whether he had ever helped Trump Organization CFO Allen Weisselberg commit tax fraud.
McConney initially responded that he had not — prompting Amer to confront McConney with his testimony from the Trump Organization’s 2022 tax fraud trial, at which he testified the opposite.
Among other offenses, McConney testified during that trial that he processed a payroll check to Weisselberg’s wife so she could claim social security benefits.
“You engaged in this illegal conduct because Mr. Weisselberg was your boss and if you refused his requests, you would lose your job?” Amer asked.
“Yes,” McConney said.
The trial adjourned until Tuesday, when it’s scheduled to resume with the direct examination of Weisselberg.
This afternoon, an appellate court will take up Trump’s request to pause the trial while he appeals Judge Engoron’s summary judgment ruling last week that decided the core of the case.
Oct 06, 1:46 PM EDT
Controller valued Mar-a-Lago at $500M despite deed restriction
Longtime Trump Organization controller Jeff McConney continued to value Trump’s Mar-a-Lago Club in excess of $500 million — on the basis that the property could be sold as private residences — despite knowing that Trump has signed a deed in 2002 with the National Trust for Historic Preservation exclusively limiting the property to being used as a club.
“Mr. Trump had deeded away his rights to use the property for any purpose other than a social club,” prosecutor Andrew Amer said while questioning McConney, who initially claimed he was unaware of the requirement but subsequently testified that he was aware of the 2002 deed.
Despite the requirement, McConney — according to Trump’s financial statements — valued Mar-a-Lago as if the property could be sold as individual residences, every year that he oversaw the statements, between 2011 and 2017.
Oct 06, 12:58 PM EDT
Golf club’s purchase price was inflated to cover refunds
When the Trump Organization purchased their golf course in Jupiter, Florida, in 2013, they paid $5 million for the club, longtime Trump Organization controller Jeff McConney testified.
But when they put the property in their books, they listed the purchase price at $46 million, said McConney.
The $41 million jump in price was attributed to the potential that Trump would have to pay back the purported “refundable” fees paid by each of the club’s members, according to McConney.
While listing $46 million as the total purchase price, the Trump Organization failed to account for the $41 million dollars in fees on the liability side of the company’s books, said prosecutor Andrew Amer.
“Even if they do have to repay at some point in time, that is way out in the future, correct?” Amer asked, which McConney conceded was the case.
Oct 06, 12:58 PM EDT
Golf club’s purchase price was inflated to cover refunds
When the Trump Organization purchased their golf course in Jupiter, Florida, in 2013, they paid $5 million for the club, longtime Trump Organization controller Jeff McConney testified.
But when they put the property in their books, they listed the purchase price at $46 million, said McConney.
The $41 million jump in price was attributed to the potential that Trump would have to pay back the purported “refundable” fees paid by each of the club’s members, according to McConney.
While listing $46 million as the total purchase price, the Trump Organization failed to account for the $41 million dollars in fees on the liability side of the company’s books, said prosecutor Andrew Amer.
“Even if they do have to repay at some point in time, that is way out in the future, correct?” Amer asked, which McConney conceded was the case.
Oct 06, 12:41 PM EDT
Trump valued housing units at twice their appraisal, says controller
In 2013, the Trump Organization increased the value of Trump National Golf Club Westchester in Briarcliff Manor, New York, based on the planned addition of 71 midrise housing units, prosecutor Andrew Amer said during his questioning of longtime Trump Organization controller Jeff McConney.
The company said the units, when built, would be worth $101 million — even though the company was given an appraisal by real estate firm Cushman & Wakefield that put the value of the units at $43.3 million, Amer said.
“The value remained the same in 2015, based on a telephone conversation that you had with Eric Trump on Nov. 17, 2015, where Eric Trump said to you, ‘Leave value as is,'” Amer asked McConney.
“Correct,” McConney answered.
“So notwithstanding that there was this appraisal, Eric Trump told you to leave the value as is?” Amer repeated.
“Correct,” McConney replied.
McConney also testified that at some point, he and former Trump Organization chief financial officer Allen Weisselberg added a 30% “brand premium” to the valuations of some of Trump’s golf properties.
Oct 06, 12:08 PM EDT
AG says Trump’s request to pause trial would ‘sow chaos’
New York Attorney General Letitia James argued that Donald Trump’s legal team is trying to “sow chaos” by pausing the ongoing trial, and that a pause would risk creating a “cascade of delays” to Trump’s multiple legal matters, according to a letter filed by the AG after Trump sought to stay the proceedings.
“Defendants cannot come close to demonstrating that the equities or the merits favor the truly extraordinary relief of upending an ongoing trial midstream,” James wrote.
James argued that the request to pause the trial while awaiting the appeal of the judge’s partial summary judgment issued last week would be unreasonably disruptive to both parties and the witnesses scheduled to testify in the case.
“And tellingly, they waited until after Mr. Trump decided to stop attending the trial,” the letter said. “Defendants have thus sought to interrupt trial midcourse in a highly disruptive manner, and this Court should deny an interim stay on that basis alone.”
James also accused Trump’s legal team of attempting to “play one court against the other,” by pitting his civil matter against the schedule of Trump’s other pending cases.
The former president, over the next seven months, faces criminal trials in the Georgia election interference case, the federal election interference case, the New York hush money case, and the federal classified documents case.
Oct 06, 10:54 AM EDT
Trump wants trial paused while he appeals judge’s ruling
As expected, Trump’s lawyers have filed an application for an immediate pause of the ongoing trial, pending their appeal of Judge Engoron’s ruling granting partial summary judgment in the case last week.
Engoron, in last week’s ruling, ordered the cancellation of Trump’s business licenses in New York after finding that he had committed fraud in his business dealings.
In their application for a stay, Trump’s lawyers argue that Engoron’s order was “unprecedented,” incorrectly decided, and unfairly punitive.
Warning that the consequences of Engoron’s order would do “severe and irreparable harm” to not only defendant but also “innocent nonparties and employees who depend on the affected entities for their livelihoods,” the lawyers asked for an immediate pause of the trial.
“It is respectfully submitted that an immediate stay of enforcement of Supreme Court’s decision and order is necessary to prevent irreparable harm pending resolution of Appellants’ application to correct a grave miscarriage of justice,” the application says.
Oct 06, 9:56 AM EDT
Trump withdraws lawsuit against judge
A week after an appeals court denied Trump’s request to halt the ongoing trial, the former president is withdrawing a suit he filed against Judge Arthur Engoron and New York Attorney General Letitia James.
Trump originally undertook the legal move to force the judge to either issue a ruling limiting the case against him or delay the trial.
The suit was discontinued without prejudice, according to a filing.
However, Trump’s legal team has told the court that it plans to file a new request for a stay of the trial, pending appeal, sometime today.
Oct 06, 8:53 AM EDT
Trump Organization controller to resume testimony
Former Trump Organization controller Jeffrey McConney, a defendant in the case, is scheduled to return to the witness stand this morning for a half-day session of court.
Prosecutors are expected to continue to probe the Trump Organization’s internal procedures that resulted in the inflated values on Trump’s financial statements, including how the former president’s own Trump Tower penthouse grew in listed value from $80 million in 2011 to $327 million in 2016.
Judge Arthur Engoron already ruled last week that Trump overvalued the apartment by over $200 million based on the “false and misleading” claim that the residence was 30,000 square feet, rather than its actual size of 10,996 square feet.
When McConney asked Kathy Kaye, a Trump International Realty executive, for assistance valuing the residence in 2013, Kaye cited the penthouse’s ties to “celebrity” and its uniqueness as partial reasons to add $20 million to the apartment’s listed value, according to an email that was entered into evidence.
“I don’t see how one would list below 8K per sq foot at this point, which brings us to 240,000M … 200,000M is a safe estimate,” Kaye wrote in the email.
McConney also appeared to struggled to explain why he used asking prices, rather than the accepted practice of using sale prices, when valuing the penthouse.
The exchange prompted New York AG special counsel Andrew Amer to confront McConney with his testimony during a previous investigative interview, in which McConney said asking prices were a poor measure of value since “you can ask anything you want to.”
Oct 05, 6:11 PM EDT
Trump Organization controller grilled about assets
Testifying about his responsibilities as the Trump Organization’s longtime controller, co-defendant Jeffrey McConney was grilled on the stand by special counsel Andrew Amer of the New York attorney general’s office.
Amer pressed McConney about alleged issues with Trump’s financial documents.
Asked about why he listed assets from Vornado Trust — which Trump did not control — as being under Trump’s control, McConney suggested it came down to accounting convenience.
“We couldn’t keep adding columns for every bank or brokerage account,” McConney said, later adding that the money was held in a Capital One account like the other assets, even if Trump could not access that account.
McConney testified that the individuals who accessed the spreadsheet would understand who controlled that money.
“People can make assumptions in any way they want to. The users looking at this spreadsheet would know it’s not one bank account,” McConney said.
McConney appeared to struggle to answer questions about the value of Trump’s triplex apartment in Trump Tower, which, according to the Trump Organization, ballooned in value from $80 million in 2011 to $327 million in 2016.
The controller testified that he relied on data from the StreetEasy website, adopted cost-per-square-foot estimates from newer properties, and took other Trump Organization executives’ claims about the apartment at face value.
McConney is scheduled to continue his testimony tomorrow as the day’s only witness.
Oct 05, 3:35 PM EDT
Defense plans to request a halt to the proceedings
Donald Trump’s legal team plans to request a stay of the ongoing fraud trial, pending their appeal of Judge Engoron’s partial summary judgment ruling issued last week, defense lawyer Chris Kise notified Engoron in court.
In seeking to halt the trial, the defense team said they plan to file their request tomorrow morning and wanted to provide notice to the state.
State prosecutors objected that less than 24 hours’ notice is not enough.
“That’s clearly not sufficient,” Engoron said of the notice, adding that the appellate court could deny the request due to the lack of proper notice.
Oct 05, 2:53 PM EDT
Note on financial document suggests Trump had final say
A marked-up version of the Trump Organization’s 2014 statement of financial condition suggests that Trump himself issued final approval for the statements, according to the document, which was entered into evidence today.
The document included a handwritten note from longtime Trump Organization Controller Jeffrey McConney saying “DJT TO GET FINAL REVIEW.”
The document also included a list showing the 2013 value of Trump’s properties, which McConney had crossed out to adjust to the 2014 values.
Testifying on the stand, McConney — who joined the Trump Organization in 1987 and was responsible for Trump’s financial statements between 2011 and 2017 — testified that he worked in conjunction with accounting firm Mazars USA and Trump Organization chief financial officer Allen Weisselberg to issue the statements.
While McConney acknowledged that he wrote the note on the document, he could not provide specifics about the extent of Trump’s involvement.
Oct 05, 2:15 PM EDT
Judge outlines next steps for dissolving Trump’s companies
As the questioning of witnesses continues, Judge Engoron has issued an order outlining the next steps to dissolve Trump’s companies in New York.
Engoron last week found that Trump and his adult sons used fraudulent documents to conduct business, and ordered the cancellation of his business certificates in the state. Trump appealed that ruling yesterday.
In today’s order, Engoron asks the defendants to provide a list of “entities controlled or beneficially owned by Donald J. Trump” — and the other co-defendants — to the Hon. Barbara S. Jones, the independent monitor overseeing Trump’s business activities.
Trump is also required to notify Jones of any new business applications or changes to preexisting entities.
The order also gives the parties 30 days to recommend a receiver to oversee the dissolution of Trump’s corporate assets. However both parties previously suggested that they plan to recommend Jones for that position.
In the meantime, the ongoing trial is being held to determine what additional penalties Trump might face and what might happen with the multiple causes of action included in the attorney general’s lawsuit.
Longtime Trump Organization controller Jeffrey McConney, a defendant in the case, has taken the stand.
McConney testified that he was responsible for Trump’s statement of financial condition from 2011 until 2017, when the responsibility was passed on to another employee.
But McConney was quick to differentiate his role from that of the organization’s accounting firm, Mazar’s USA.
“We as the Trump Organization didn’t prepare the statement,” McConney said.
Unlike most witnesses who generally aren’t allowed to hear other witnesses testify, McConney — as a defendant in the case — is entitled to be in the courtroom for the entire trial. However, today is the first time he has appeared.
Oct 05, 12:30 PM EDT
Defense presses ex-accountant on asset appraisals
Pressing Mazars USA accountant Donald Bender on how often he asked the Trump Organization for appraisals of the former president’s assets during the years he worked on Trump’s account, defense lawyers attempted to portray Bender as neglecting to do his job compiling Trump’s financial reports.
“I didn’t know that the Trump Organization had any access to appraisals they did not give me,” Bender testified.
The longtime Trump accountant struggled to articulate how often he made requests for appraisals, and defense counsel Clifford Robert drilled into the fact that those requests appear to never have been made in writing to Trump Organization controller Jeffrey McConney.
“You don’t really know what you asked Jeff McConney,” Robert told Bender.
Bender was also asked about Trump’s three adult children, who all previously served as executives in the Trump Organization, and whether they were involved with Trump’s statement of financial condition.
The accountant said that — apart from a brief conversation he once had with Eric Trump — Eric, Don Jr. and Ivanka Trump were not involved in issuing Trump’s financial statements.
On redirect examination, prosecutors briefly asked questions of Bender suggesting that the defense’s questions had been based on an outdated accounting standard.
That concluded Bender’s testimony.
Oct 05, 10:39 AM EDT
Judge says he’ll cap questioning at an hour and a half
Trump attorney Jesus Suarez, in his cross-examination of longtime Trump accountant Donald Bender, is attempting to ask Bender about each year’s compilation of Trump’s statement of financial condition.
In response, facing the possibility of hours of repetitive questions, Judge Engoron said he would limit Suarez to an hour and a half of cross-examination.
Defense lawyer Clifford Robert is also expected to question Bender.
Oct 05, 10:27 AM EDT
Cross-examination of ex-accountant resumes
The defense’s cross-examination of longtime Trump accountant Donald Bender has resumed.
New York Attorney General Letitia James is attending court today, but Eric Trump of the Trump Organization is absent from the gallery.
When Donald Trump attended over the first three days of the trial, the gallery was packed — but without him in attendance, it’s now roughly half full.
Oct 05, 10:04 AM EDT
Without Trump in attendance, trial resumes for Day 4
The trial resumes this morning for its first full day of action without the presence of former President Trump, who returned to Florida yesterday after attending the trial’s first three days.
With 26 witnesses yet to testify for the state, today is likely to provide an indication of the trial’s duration, which Judge Engoron scheduled to take three months.
Longtime Trump accountant Donald Bender of Mazars USA is back on the stand for more cross-examination from defense lawyer Jesus Suarez, who has been walking Bender though years of financial statements in an attempt to paint him as asleep of the wheel while handling Trump’s accounting.
If Bender gets off the stand today, the state will next call longtime Trump Organization comptroller Jeffrey McConney, who is a defendant in the case itself.
Oct 04, 5:35 PM EDT
Defense presses ex-accountant on evaluation of assets
Attorneys for the defense team declined to cross-examine Cameron Harris after the former Trump accountant completed his testimony. However they reserved the right to call him back to the stand later.
Instead, they spent the last hour of court Wednesday continuing their cross-examination of former Mazars USA accountant Donald Bender, who handled Trump’s account prior to Harris.
After the defense highlighted Bender’s inconsistent statements about Mazars’ use of specialists to evaluate assets, Bender seemed to struggle to articulate how Mazars provided accounting expertise.
Defense attorney Jesus Suarez told Judge Engoron that he plans to continue his cross-examination of Bender through Thursday afternoon, though the defense promised to “streamline” their questions after the judge complained about the timing.
Court was then adjourned for the day.
Oct 04, 3:49 PM EDT
2nd accountant says Trumps were responsible for statements
Cameron Harris, an accountant from the firm Whitley Penn, has taken the stand as the trial’s second witness following hours of testimony from former Trump accountant Donald Bender of Mazars USA, whose cross-examination will continue later.
Whitley Penn succeeded Mazars as Trump’s accounting firm.
Harris testified that Trump’s son Eric Trump “set the tone at the top” of the Trump Organization.
Like Bender, Harris testified that the Trumps had the ultimate responsibility for their financial statements.
“Who’s responsible for the statement of financial condition?” asked state attorney Kevin Wallace as Eric Trump sat in the courtroom.
“The client’s responsible for that,” Harris replied.
The proceedings appear to have taken a more workmanlike tone since Trump left the courtroom to return to Florida. The defense has not logged a single objection after earlier objecting so often that it drew the judge’s ire.
Oct 04, 2:51 PM EDT
‘Trump show is over’ says AG James after he departs
With former President Trump heading back to Florida after attending three days of the trial, New York Attorney General Letitia James told reporters that “the Donald Trump show is over.”
Speaking to the media on her way into court following a break, James denounced Trump’s rhetoric about the case, as well as his social media post about the judge’s clerk.
“Mr. Trump’s comments were offensive, they were baseless, they were void of any facts,” James said.
Trump, who called James “corrupt” during his various appearances outside the courtroom, also denounced the case she brought as “rigged” and said it was timed to upend his campaign for the presidency.
“This case was brought simply because it was a case where individuals were engaged in a pattern and practice of fraud,” James said. “I will not be bullied.”
“Mr. Trump is no longer here — the Donald Trump show is over,” said James. “This was nothing more than a political stunt, a fundraising stop.”
Oct 04, 2:30 PM EDT
Trump appeals judge’s pretrail ruling that he committed fraud
Three days into their fraud trial, Trump and his co-defendants have appealed the pretrial ruling last week by Judge Engoron that Trump and his adult sons committed fraud in their business dealings.
Engoron made the determination last Tuesday but said the trial was still required to decide the scope of the penalty plus six remaining causes of action alleged by the New York attorney general.
Trump’s appeal asks the court to consider whether Engoron “committed errors of law and/or fact, abused its discretion, and/or acted in excess of its jurisdiction” when he ruled that Trump committed fraud and canceled his business certificates in New York state.
Trump’s last attempt in this case to appeal to a higher court was denied by the appellate division of the New York State Supreme Court on the eve of the trial.
Oct 04, 1:59 PM EDT
Trump, departing trial, says ‘this is corrupt’
Former President Trump appears to be done watching his civil fraud trial, and he had a lot to say about it on his way out of the courthouse.
Speaking to reporters, Trump renewed his attacks on Judge Engoron and accused the “whole system” of being rigged against him while referencing the criminal charges he faces in Washington, D.C., and Fulton County, Georgia.
“Our whole system is corrupt. This is corrupt. Atlanta is corrupt, and what’s coming out of DC is corrupt,” Trump said.
Trump again claimed that his net worth is more than is represented in his financial documents, and said that his Mar-a-Lago estate is worth “50 to 100 times more” than what Engoron determined.
Trump also resumed attacks on the judge — who he said is “run by the Democrats” — and New York Attorney General Letitia James, who he alleged is communicating with the Department of Justice to “keep me nice and busy.”
The former president said he’s been “stuck” in court when he would rather be campaigning in early primary states.
Asked by ABC News why he attended the trial despite no obligation to do so, he claimed his attendance was necessary to expose corruption to the press.
“Why attend? Because they want to point it out to the press how corrupt it is, because nobody else seems to be able to do it,” Trump said.
Trump departed the courthouse and is not expected to return to court for the afternoon session.
Oct 04, 1:00 PM EDT
‘This is ridiculous,’ judge admonishes defense counsel
Judge Engoron lost patience with Trump’s defense counsel during the cross-examination of longtime Trump accountant Donald Bender.
As defense attorney Jesus Suarez repeatedly asked Bender to recall how he arrived at specific values for specific assets in specific years, Engoron interrupted to ask how much longer the cross-examination would last.
Suarez said he would do his best to finish by the end of court today.
That prompted Kevin Wallace with the state attorney general’s office to shout, incredulously, “Today?” Wallace accused Suarez of being overly performative with Trump seated at the defense table.
When Engoron reminded the defense, “Mr. Bender is not on trial here,” Trump attorney Chris Kise interjected, “I would very much disagree with that.”
The judge implored the defense to truncate the line of questioning.
“You’re not allowed to waste time,” Engoron said.
“This is insane,” responded Trump attorney Alina Habba “He has not answered one question.”
Engoron pounded the bench, asking reporters in the room to take note. “This is ridiculous,” he barked.
Oct 04, 12:34 PM EDT
Trump back in courtroom
Nearly 30 minutes after court resumed following a break, Trump entered the courtroom and returned to his seat at the counsel table.
The defense’s cross examination of Mazars USA accountant Donald Bender continued after a brief interruption.
Oct 04, 12:07 PM EDT
Trump not in courtroom following break
Court has resumed following a break, but Trump is notably absent from the courtroom. His paperwork remains at the counsel table, and his lawyers have left his seat empty.
Eric Trump and New York Attorney General Letitia James returned to the courtroom after the break, along with the lawyers for both sides.
Former Trump accountant Donald Bender is back on the stand for his cross-examination.
Oct 04, 11:48 AM EDT
‘Tell me what the point is,’ judge tells Trump attorney
Trump attorney Jesus Suarez is continuing his attempts to discredit former Trump accountant Donald Bender’s testimony, but his arguments seem to be wearing thin for the judge.
After Suarez played a short clip from Bender’s deposition, Judge Engoron — who is deciding the case himself — told the attorney, “There’s no jury. Tell me what the point is.”
During another portion of the cross-examination, Engoron told Suarez, “It’s starting to sound like ‘How many angels can dance on the head of a pin.'”
Oct 04, 11:10 AM EDT
Cross-examination of ex-accountant continues
Continuing his cross-examination of Mazars USA accountant Donald Bender, who formerly worked on Trump’s account, Trump attorney Jesus Suarez is adopting a less aggressive approach to his questioning than the theatrical approach he took yesterday.
When Justice Engoron appeared unreceptive to one part of Suarez’s questioning, Trump, sitting with his attorneys, visibility groaned.
“It’s easiest just to move on. Take a hint,” Engoron said to Suarez about one of his attempts to discredit Bender.
Trump has been conferring with his attorney Alina Habba, taking notes, reviewing documents, and even ripping up papers while seated at the counsel table during the cross-examination of Bender.
Oct 04, 10:30 AM EDT
Trump says his net worth is ‘much higher’ than statements say
Former President Trump, on his way into court for Day Three of his trial, said that his financial statements under-report his wealth, despite the judge in his case already ruling that his financial records were fraudulently inflated.
“My real net worth is much higher than that, much higher than the statement,” Trump told reporters.
Decrying his trial as the “beginning of communism in our country,” Trump continued his attacks on New York Attorney General Letitia James but did not comment on Judge Arthur Engoron.
“This is just a continuation of the witch hunt that started the day I came down the escalator in Trump Tower,” Trump said.
Oct 04, 10:03 AM EDT
Trump back in court for Day Three
Former President Trump is back in court for Day Three of the trial, where defense counsel is expected to continue its cross examination of longtime Mazars accountant Donald Bender.
Once questioning of Bender concludes, the state says they plan to call Whitley Penn audit partner Camron Harris, who took over Trump’s accounting after Mazars.
Justice Arthur Engoron may also address the narrow gag order he placed on Trump and the other defendants yesterday regarding making statements about the judge’s staff, after the former president made what Engoron described as a “disparaging, untrue, and personally identifying post” involving Engoron’s clerk.
Oct 03, 5:46 PM EDT
Trump, following closed proceedings, says he’ll be back Wednesday
Former President Trump told reporters he plans to return to court on Wednesday as he left the courtroom following a closed proceeding Tuesday afternoon.
Judge Arthur Engoron held multiple closed proceedings during the afternoon after issuing a warning to Trump to not post anything to social media about his staff.
Neither Trump nor New York Attorney General Letitia James answered questions about the nature of the closed sessions when they left the courthouse at the end of the day.
Earlier, Mazars accountant Donald Bender underwent a forceful cross examination by Trump lawyer Jesus Suarez. Mixing criticism of Bender with praise of Trump — who Suarez described as “the leader of the free world” and “possibly even the 47th president of the United States” — Suarez attempted to paint Blender as an incompetent accountant who “messed up” and landed Trump in court.
As part of his cross examination, Suarez questioned Bender about why he failed to raise concerns about Trump inaccurately overstating the size of his triplex apartment in Manhattan’s Trump Tower.
“Do you think two thirds of his [triplex] disappearing is not something you should have said to the leader of the free world?” Suarez asked during a portion of his questioning that was so theatrical that it prompted occasional laughter in the courtroom.
Oct 03, 3:27 PM EDT
Judge admonishes Trump after he posts about clerk
As court resumed after the lunch break, Judge Engoron admonished Donald Trump for a post he made this afternoon on his Truth Social platform regarding Engoron’s clerk, Alison Greenfield.
The post, which included a photo of Greenfield with Senate Majority Leader Chuck Schumer, made unsubstantiated claims about her connections with Schumer and falsely claimed that Greenfield is “running” the case against Trump.
Trump apparently made the post, which linked to Greenfield’s Instagram account, while the former president was sitting in the courtroom.
“Personal attacks on members of my court staff are unacceptable and inappropriate,” the judge said in his admonishment, adding that he ordered the post taken down.
Trump appears to have deleted the post, but the judge lamented that the sentiment was shared to millions.
The judge did not mention Trump by name but noted the post came from one of the defendants. He said his remarks should be taken as forbidding all parties from posting or speaking publicly about any member of his staff.
Greenfield sits at the bench to Engoron’s immediate right and he is often seen conferring with her over legal and logistical matters.
-ABC News’ Peter Charalambous, Aaron Katersky, Soo Rin Kim, Lalee Ibssa and Kendall Ross
Oct 03, 2:37 PM EDT
Trump says he’s attending trial to ‘expose’ AG
Former President Donald Trump said he is attending his civil trial to “expose” New York Attorney General Letitia James, during an exchange with ABC News.
Asked by ABC News’ Aaron Katersky why he was attending the trial even though he’s not required to be there, Trump replied, “Because this trial is a rigged trial. It’s a fraudulent trial.”
“The attorney general is a fraud, and we have to expose her as that,” Trump said after exiting the courtroom for the afternoon break. “You see what’s going on. It’s a rigged deal.”
James has said of her probe, “No matter how powerful you are, no matter how much money you think you may have, no one is above the law.”
The statements from Trump follow the conclusion of the state’s lengthy direct examination of longtime Mazars accountant Donald Bender, who testified about the procedures Mazars and the Trump Organization used to compile a central piece of evidence in the case — Trump’s statements of financial condition between 2011 and 2020.
Trump appeared attentive during the testimony, often studying the exhibits displayed on the court’s screens — including a recurring spreadsheet titled “Jeff Supporting Data” prepared by co-defendant and Trump Organization executive Jeffrey McConney, which contained the source information for the financial statements.
Bender testified about a specific red notation spelled “PBC” that appeared on the Excel file across multiple years. The notation — indicating that the files were “Prepared By [the] Client” — seemed to emphasize how much of the accounting was done by the Trump Organization rather than Mazars.
Testifying about letters of representation issued by the Trump Organization in support of the statements, Bender addressed specific language in the letter stating that the Trump Organization had included all the relevant records and data needed for the statements.
“We have not knowingly withheld from you any financial records or related data that in our judgment would be relevant to your compilation,” the letter read.
But Bender testified that he later learned that meaningful information was indeed omitted — information he said he learned in 2021 during meetings with prosecutors.
When asked repeatedly if Mazars would have issued the statements if they knew the Trump Organization had withheld information, Bender repeated that Mazars would not have issued the statements.
-ABC News’ Aaron Katersky, Jack Feeley and Peter Charalambous
Oct 03, 12:49 PM EDT
Judge mixes focus, humor on the bench
Justice Arthur Engoron appears to be enjoying his time overseeing the trial today, including correcting the attorneys for the state on minor issues.
“The correct word is withdrawn, not strike,” Engoron interjected at one point, after a state attorney attempted to “strike” the record so he could rephrase a statement.
Later, Engoron smiled and signaled a thumbs-up when the same attorney adjusted his language and “withdrew” his words from the record to rephrase.
The veteran justice, who has served on the bench in New York for more than 20 years, has a reputation as a reliable albeit unusual judge, according to past and former associates.
Oct 03, 12:19 PM EDT
Trump calls case a ‘scam,’ says he might testify
Exiting court during the break, Trump told reporters positioned nearby that the financial statements being reviewed in court included disclaimers, which his legal team has argued absolves him of wrongdoing.
“This case is a scam,” Trump said during his walk back to court.
When asked if he would consider testifying, Trump said he might.
Oct 03, 12:14 PM EDT
Ex-accountant addresses 2012-2016 financial statements
An attorney with for the New York attorney general’s office spent the first hour of direct examination methodically walking Mazars accountant Donald Bender through the Trump Organization’s financial documents from 2012 through 2016.
As he addressed each document, Bender reiterated that the Trump Organization and its trustees were responsible for the accounting principles used in the records, the disclosures in reports, and the information from which the reports were based.
The state appears to be using Bender’s testimony to not only get Trump’s financials statements into evidence, but also to demonstrate the relatively consistent process the Trump Organization used to compile and finalize their statements of financial condition over a decade.
Oct 03, 10:48 AM EDT
Judge clarifies statute of limitations remarks
Justice Arthur Engoron, who was a frequent target of Trump’s attacks yesterday, began the trial’s second day by clarifying some of his closing remarks about the statute of limitations in the case.
After court yesterday, Trump construed his remarks as a victory, suggesting “80% of the cases is over” after leaving court on Monday.
Engoron apologized for his comments and stated that any future real estate deals “restart” the statute of limitations — meaning that the attorney general’s office needs to “connect the dots” to include the evidence about a 2011 deal discussed on Monday.
“I understand that the defendants strongly disagree on this and will appeal on this ground,” Engoron said.
He concluded his remarks by reminding counsel not to relitigate issues already decided — something that Trump’s attorneys seemingly did on Day One of the trial.
“This trial is not an opportunity to relitigate what I have already decided … that is why we have appeals,” Engoron said.
Oct 03, 10:41 AM EDT
Trump again attacks AG on way into court
Former President Donald Trump continued his attacks on New York Attorney General Letitia James before entering the courtroom for the second day of his $250 million civil fraud trial in downtown Manhattan.
“She ran on the basis ‘I will get Trump’ without knowing anything about me,” he said to reporters outside court.
Both Trump and James are present this morning in court, where state attorneys are set to continue their direct examination of longtime Mazars accountant Donald Bender.
Oct 03, 7:14 AM EDT
Trump expected in court for second day
Former President Donald Trump signaled he will be in court again Tuesday morning in a post on his social media platform.
“See you in Court Tuesday morning,” Trump posted.
The former president then went on to attack New York Attorney General Letitia James. He claimed he had a “good day at trial” during Monday’s proceedings.
Oct 02, 6:15 PM EDT
First witness eyes Trump’s decade-old financial statements
Testifying about the preparation of the Trump Organization’s statements of financial condition in 2011, former Mazars USA accountant Donald Bender said Trump executives largely provided the input data for statements, in addition to dictating the standards by which the work was completed.
“We would cut and paste that information into a new worksheet,” Bender said about the approach taken by Mazar after receiving new data from co-defendant Jeffrey McConney of the Trump Organization.
When asked about the compliance with the Generally Accepted Accounting Principles — which Bender testified are the standards for accounting in the United States — Bender repeatedly placed responsibility in the lap of the Trump organization.
“That was the Trump Organization’s responsibility,” Bender testified about GAAP compliance.
Bender acknowledged that he rarely questioned the inputs from the Trump Organization, and when he did, he largely dealt with McConney and executives other than Trump and his adult sons.
Repeatedly asked by the state attorney if Mazars would have issued the statements if they had known the Trump Organization included material misrepresentations in their data, Bender reiterated that Mazars would not have issued the statements.
When Judge Engoron remarked at the end of the trial day that the state would still need to present further evidence to prove that the 2011 statement was within the statute of limitations, Trump seized the statement as a partial victory.
“The last five minutes was outstanding, because the judge actually conceded that the statute of limitations … is in effect,” Trump told reporters as he was leaving court.
Engoron, however, did not completely rule out the 2011 evidence during trial, instead appearing to remind counsel that they need to show the 2011 statement represents an ongoing concern that falls within the statute of limitations.
Testimony is scheduled to resume on Tuesday at 10 a.m. ET.
Oct 02, 3:50 PM EDT
Ex-accountant says statements were ‘Trump Org’s responsibility’
Prosecutors have called their first witness to the stand: Donald Bender, a former accountant at Mazars USA, the firm that for years handled Trump’s taxes.
Bender testified at length about his involvement in compiling Trump’s statements of financial condition between 2011 and 2020, which he described as “balance [sheets] of Mr. Trump’s assets and liabilities.”
Bender said the standards and inputs for the statements were largely decided by Trump Organization executives.
“That was the Trump Organization’s responsibility,” Bender said about the accounting standard used in the statements.
As Bender answered the state’s questions, Trump was seen taking notes at the defense table.
Bender described spending roughly half his time on Trump’s business and personal financial matters toward the end of his career at Mazars.
The firm severed its business relationship with Trump last year after learning of the attorney general’s findings during the AG’s probe.
Oct 02, 1:19 PM EDT
Trump attorney says sons made no misrepresentations
An attorney for Donald Trump’s adult sons, Eric Trump and Donald Trump Jr., added a brief opening statement of his own, defending his clients from accusations of wrongdoing.
“There was never a material misrepresentation made by Eric Trump or Donald Trump Jr.,” said Clifford Robert, the attorney for Trump’s adult sons, who help run the Trump Organization.
Robert said he disagrees “with just about everything” the state’s prosecutor said in his opening remarks, and took aim at the state’s star witness.
“Their major linchpin is Michael Cohen, a guy who lies to everyone,” Robert said of the former Trump attorney.
Lucien Bruggeman
Oct 02, 1:10 PM EDT
AG’s case sets ‘dangerous precedent,’ defense says
Attorney General Letitia James “is setting a very dangerous precedent for any business in the state of New York,” warned Trump attorney Alina Habba in her opening statement.
Habba told the court she hadn’t planned to make opening remarks, but that she felt moved to speak after hearing the state present its own opening statement. Habba accused the attorney general of targeting Trump before taking office, claiming the investigation and lawsuit were personal in nature.
“We are attacking a sitting president and two of his children and his employees for a statement of financial condition which is frankly worth less than what they are worth,” Habba said.
Habba reiterated many of the points made earlier by co-counsel Christopher Kise, highlighting the fact that “these lenders made money,” and arguing that “real estate is malleable — the values change.”
After Habba concluded her remarks, Judge Engeron engaged her in a series of follow-up questions, asking about her claim that the property appraisals at issue were “undervalued” by prosecutors.
Habba replied that “the Trump brand is worth something.”
Oct 02, 12:03 PM EDT
‘The attorney general has no case,’ defense counsel says
Former President Trump’s defense counsel will present a “very different picture of the evidence” than the prosecution alleges, and will demonstrate that “there are many ways to value assets,” according to opening remarks from Christopher Kise, Trump’s lead attorney.
“We think the evidence is going to establish … President Trump has made billions of dollars building one of the most successful real estate empires in the world,” Kise said, reiterating sentiments he conveyed in pretrial motions.
Kise offered a glimpse into the former president’s defense, including plans to present testimony from a New York University professor who will explain that “there is no one generally accepted procedure to determine the estimated current value” of a property.
Other defense witnesses, including four Deutsche Bank officers who were involved in approving Trump’s loans, will explain how they were able to craft their own independent risk analyses meant to mitigate the claims of fraud that are core to the state’s case.
“Anyone committing fraud does not tell the other side, ‘Please do your own analysis,'” Kise said regarding Trump’s instructions to lenders.
Kise also previewed plans to undermine the state’s key witness, former Trump attorney Michael Cohen, who Kise said has “lied to everyone and anyone he has come in contact with.”
Kise reiterated the defense’s claim that Trump did not commit fraud and that there were no victims of his alleged conduct.
“The attorney general has no case,” Kise said.
Oct 02, 11:28 AM EDT
Defendants were ‘lying year after year,’ prosecutors say
Prosecutors intend to prove in the coming months that “each defendant engaged in repeated, persistent, illegal acts in conduct of business,” according to the opening statement from Kevin Wallace of the attorney general’s office.
Referring to Judge Engoron’s partial summary judgment last week, Wallace said that “the people have already proven” that former President Trump used “false, misleading” statements that were “repeatedly [and] persistently used in the conduct of business.”
But prosecutors will further demonstrate that Trump and his co-defendants knew those statements were false and continued to peddle them anyway in furtherance of their alleged scheme, Wallace told the judge.
“The defendants were lying year after year,” he said.
Wallace played clips of video depositions to punctuate his remarks, including testimony from Trump himself, as well as Eric Trump and former Trump attorney Michael Cohen — whose congressional testimony years ago precipitated the state’s investigation and some of the key allegations underpinning their case.
“The goal was to use each of [Trump’s] assets and increase its value in order to get to the end result number,” Cohen said during his taped deposition. “It was essentially backing in numbers to each of the asset classes in order to attain the number that President Trump wanted.”
Trump and his co-defendants “knew that a high net worth was necessary to get and maintain certain financial benefits,” Wallace said, pointing to basic principles of accounting and finance.
Throughout Wallace’s remarks, the attorney general’s office flashed graphics on television screens inside the courtroom showing some of the alleged inflated values of Trump’s properties alongside the amounts the properties were appraised at.
Seated in his chair with his arms crossed, Trump visibly shook his head at times during the prosecutor’s opening statement. At one point he seemed to mutter something under his breath.
The former president whispered with his attorneys throughout.
Oct 02, 10:45 AM EDT
Opening statements underway
Opening statements are underway in former President Trump’s $250 million fraud trial.
Trump is seated between his attorneys Clifford Robert, Alina Habba and Christopher Kise.
Trump and his co-defendants face a bench trial, meaning that the sole arbiter of the case is Judge Arthur Engoron instead of a jury.
Oct 02, 10:19 AM EDT
Trump seated in courtroom
Former President Trump has taken a seat in the courtroom for the start of the trial.
“The crime is against me,” he told reporters outside the courtroom before he made his way inside.
He denounced the case in now-familiar terms, criticizing state Attorney General Letitia James as she sat inside the courtroom.
Trump also accused Judge Arthur Engoron of failing to account for the full value of his real estate portfolio, asserting his Mar-a-Lago estate is worth “50 to 100 times more” than the judge’s decision for partial summary judgment said last week.
“We have other properties, the same thing. So he devalued everything,” Trump said. “We have among the greatest properties in the world. and I have to go through this for political reasons.”
Engoron decided Trump’s statements of financial condition were fraudulent, but Trump said, “We have a clause in the contract that says, essentially, buyer beware.”
Oct 02, 10:09 AM EDT
Trump calls trial ‘political witch hunt’
Former President Trump, speaking to reporters on his arrival at the lower Manhattan courthouse, said the trial is a witch hunt resulting from his standing in the presidential polls.
“This is a continuation of the greatest political witch hunt of all time,” he told reporters outside the courtroom.
Trump said he is innocent of the accusations and that his portfolio has a much higher value than what the attorney general alleges.
Oct 02, 9:59 AM EDT
Trump attorneys call trial ‘election interference’
Members of Donald Trump’s legal team, speaking to reporters outside the courthouse prior to the start of the trial, called the fraud allegations against the former president “election interference.”
Trump’s attorneys said that Democrats were using the case to fight Trump’s efforts to retake the White House in 2024.
Oct 02, 9:43 AM EDT
Attorney general arrives at courthouse
New York Attorney General Letitia James has arrived at the courthouse in lower Manhattan.
“No matter how powerful you are, no matter how much money you think you may have, no one is above the law,” James said to the cameras before entering the courthouse.
“Today we will prove our case in court,” she said. “Justice will prevail.”
Demonstrators across the street from the courthouse cheered and applauded as the AG arrived.
Oct 02, 8:19 AM EDT
NY attorney general releases statement on 1st day of trial
New York Attorney General Letitia James released a statement on Monday just hours before the first day of trial in her fraud case against former President Donald Trump.
“For years, Donald Trump falsely inflated his net worth to enrich himself and cheat the system,” James said. “We won the foundation of our case last week and proved that his purported net worth has long been rooted in incredible fraud. In this country, there are consequences for this type of persistent fraud, and we look forward to demonstrating the full extent of his fraud and illegality during trial.”
“No matter how rich or powerful you are, there are not two sets of laws for people in this country,” she added. “The rule of law must apply equally to everyone, and it is my responsibility to make sure that it does.”
Oct 02, 8:14 AM EDT
Trial scheduled to begin at 10 a.m. ET
The People of the State of New York v. Donald J. Trump, et al, is scheduled to get underway in lower Manhattan at 10 a.m. with opening statements.
If opening statements are completed before the end of the day, the New York attorney general plans to begin her case by calling Trump’s former Mazars USA accountant Donald Bender to the stand.
Mazars severed its business relationship with the former president last year after learning of the attorney general’s findings during the AG’s probe.
Oct 02, 7:10 AM EDT
Judge has already found that Trump overvalued his assets
Though Trump has denied all wrongdoing alleged by the attorney general, Judge Arthur Engoron has already decided the central allegation against Trump and his co-defendants, ruling in a pretrial hearing last week that the AG had provided “conclusive evidence” that Trump overvalued his assets between $812 million and $2.2 billion.
The judge then canceled the Trump Organization’s business certificates in New York, severely restricting Trump’s ability to conduct business in the state moving forward — a move that Trump attorney Alina Habba called “nonsensical” and “outrageously overreaching.”
“In defendants’ world: rent regulated apartments are worth the same as unregulated apartments; restricted land is worth the same as unrestricted land; restrictions can evaporate into thin air,” Engoron wrote, citing multiple arguments made by defense to justify the allegedly inflated valuations of Trump’s assets. “That is a fantasy world, not the real world.”
Among the issues still to be determined at trial: What additional penalties Trump might face, and what might happen with the multiple causes of action included in the attorney general’s suit.
Oct 02, 6:43 AM EDT
Trump blasts judge ahead of trial
Former President Donald Trump stepped up his attacks on the judge overseeing and deciding his case, writing on Truth Social overnight that Justice Arthur Engoron should resign and be sanctioned for “abuse of power.”
Similar to his earlier post, Trump focused on the alleged inflated value of Mar-a-Lago, in addition to an appellate decision that his lawyers unsuccessfully tried to use to limit the timeframe of the case.
Oct 02, 6:39 AM EDT
Trump says he will attend trial’s opening
Former President Trump posted on his Truth Social platform Sunday night that he intends to attend the opening of the trial.
“See you in court — Monday morning,” he wrote in a post.
Earlier Sunday, multiple sources familiar with the decision told ABC News that Trump was expecting to attend.
Trump will have no speaking role in court on Monday, but it is anticipated that he’ll return to the courthouse toward the end of the state’s case when court records show he will be called as a witness.
(COLORADO SPRINGS, Colo.) — A funeral home offering environmentally friendly burials is under investigation after more than 115 human remains were found being improperly stored on the property, according to authorities.
Deputies from the Fremont County Sheriff’s Office in Colorado were dispatched to the Return to Nature Funeral Home based in Colorado Springs, Colorado, on Tuesday in reference to a suspicious incident, the Fremont County Sheriff’s Office said in a press release on Thursday.
The Fremont County Sheriff’s Office found around 115 decomposing bodies stored inside a space of about 2,500 square feet. The bodies are in such bad shape that they will need to be identified through DNA, the sheriff’s office said Friday.
“During the last 48 hours, my office made a very disturbing discovery in the town of Penrose, Colorado,” Fremont County Sheriff Allen Cooper said at a press conference Friday. “There have been a lot of questions and concerns expressed by the community, especially those families who entrusted their loved ones to this funeral home.”
“Upon their arrival deputies learned that the building was owned by the Return to Nature Funeral Home based in Colorado Springs Colorado,” police said. “On October 4, 2023, FCSO investigators, the Fremont County Coroner’s Office, and the Colorado Department of Regulatory Agencies executed a search warrant on the property and determined that human remains were improperly stored inside the building.”
Families will be notified once bodies can be identified. 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.
The scene was so bad that a paramedic who first responded developed a rash and had to be medically evaluated, Cooper said.
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.”
The Fremont County Sheriff’s Office is asking that family members of decedents who utilized the Return to Nature Funeral Home please send an email to 23-1941@fremontso.com.
“We’re committed to supporting the families throughout this process with a comprehensive investigation along with our victims’ advocates,” Cooper said.
The sheriff’s office said it wasn’t clear if a crime had been committed and no one has been arrested. The owners of the funeral home are being cooperative and an investigation is ongoing.
A disaster declaration has been made by the governor and local officials have declared an emergency.
(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 while lowering his tax burden. 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.
Top headlines:
-Trump valued housing units at twice their appraisal, says controller
-AG says Trump’s request to pause trial would ‘sow chaos’
-Estate’s valuation included 7 mansions that weren’t yet built
-Trump wants trial paused while he appeals judge’s ruling
-Trump Organization controller grilled about assets
-Note on financial document suggests Trump had final say
Here’s how the news is developing. All times Eastern.
Oct 06, 12:58 PM EDT
Golf club’s purchase price was inflated to cover refunds
When the Trump Organization purchased their golf course in Jupiter, Florida, in 2013, they paid $5 million for the club, longtime Trump Organization controller Jeff McConney testified.
But when they put the property in their books, they listed the purchase price at $46 million, said McConney.
The $41 million jump in price was attributed to the potential that Trump would have to pay back the purported “refundable” fees paid by each of the club’s members, according to McConney.
While listing $46 million as the total purchase price, the Trump Organization failed to account for the $41 million dollars in fees on the liability side of the company’s books, said prosecutor Andrew Amer.
“Even if they do have to repay at some point in time, that is way out in the future, correct?” Amer asked, which McConney conceded was the case.
Oct 06, 12:41 PM EDT
Trump valued housing units at twice their appraisal, says controller
In 2013, the Trump Organization increased the value of Trump National Golf Club Westchester in Briarcliff Manor, New York, based on the planned addition of 71 midrise housing units, prosecutor Andrew Amer said during his questioning of longtime Trump Organization controller Jeff McConney.
The company said the units, when built, would be worth $101 million — even though the company was given an appraisal by real estate firm Cushman & Wakefield that put the value of the units at $43.3 million, Amer said.
“The value remained the same in 2015, based on a telephone conversation that you had with Eric Trump on Nov. 17, 2015, where Eric Trump said to you, ‘Leave value as is,'” Amer asked McConney.
“Correct,” McConney answered.
“So notwithstanding that there was this appraisal, Eric Trump told you to leave the value as is?” Amer repeated.
“Correct,” McConney replied.
McConney also testified that at some point, he and former Trump Organization chief financial officer Allen Weisselberg added a 30% “brand premium” to the valuations of some of Trump’s golf properties.
Oct 06, 12:08 PM EDT
AG says Trump’s request to pause trial would ‘sow chaos’
New York Attorney General Letitia James argued that Donald Trump’s legal team is trying to “sow chaos” by pausing the ongoing trial, and that a pause would risk creating a “cascade of delays” to Trump’s multiple legal matters, according to a letter filed by the AG after Trump sought to stay the proceedings.
“Defendants cannot come close to demonstrating that the equities or the merits favor the truly extraordinary relief of upending an ongoing trial midstream,” James wrote.
James argued that the request to pause the trial while awaiting the appeal of the judge’s partial summary judgment issued last week would be unreasonably disruptive to both parties and the witnesses scheduled to testify in the case.
“And tellingly, they waited until after Mr. Trump decided to stop attending the trial,” the letter said. “Defendants have thus sought to interrupt trial midcourse in a highly disruptive manner, and this Court should deny an interim stay on that basis alone.”
James also accused Trump’s legal team of attempting to “play one court against the other,” by pitting his civil matter against the schedule of Trump’s other pending cases.
The former president, over the next seven months, faces criminal trials in the Georgia election interference case, the federal election interference case, the New York hush money case, and the federal classified documents case.
Oct 06, 10:54 AM EDT
Trump wants trial paused while he appeals judge’s ruling
As expected, Trump’s lawyers have filed an application for an immediate pause of the ongoing trial, pending their appeal of Judge Engoron’s ruling granting partial summary judgment in the case last week.
Engoron, in last week’s ruling, ordered the cancellation of Trump’s business licenses in New York after finding that he had committed fraud in his business dealings.
In their application for a stay, Trump’s lawyers argue that Engoron’s order was “unprecedented,” incorrectly decided, and unfairly punitive.
Warning that the consequences of Engoron’s order would do “severe and irreparable harm” to not only defendant but also “innocent nonparties and employees who depend on the affected entities for their livelihoods,” the lawyers asked for an immediate pause of the trial.
“It is respectfully submitted that an immediate stay of enforcement of Supreme Court’s decision and order is necessary to prevent irreparable harm pending resolution of Appellants’ application to correct a grave miscarriage of justice,” the application says.
Oct 06, 9:56 AM EDT
Trump withdraws lawsuit against judge
A week after an appeals court denied Trump’s request to halt the ongoing trial, the former president is withdrawing a suit he filed against Judge Arthur Engoron and New York Attorney General Letitia James.
Trump originally undertook the legal move to force the judge to either issue a ruling limiting the case against him or delay the trial.
The suit was discontinued without prejudice, according to a filing.
However, Trump’s legal team has told the court that it plans to file a new request for a stay of the trial, pending appeal, sometime today.
Oct 06, 8:53 AM EDT
Trump Organization controller to resume testimony
Former Trump Organization controller Jeffrey McConney, a defendant in the case, is scheduled to return to the witness stand this morning for a half-day session of court.
Prosecutors are expected to continue to probe the Trump Organization’s internal procedures that resulted in the inflated values on Trump’s financial statements, including how the former president’s own Trump Tower penthouse grew in listed value from $80 million in 2011 to $327 million in 2016.
Judge Arthur Engoron already ruled last week that Trump overvalued the apartment by over $200 million based on the “false and misleading” claim that the residence was 30,000 square feet, rather than its actual size of 10,996 square feet.
When McConney asked Kathy Kaye, a Trump International Realty executive, for assistance valuing the residence in 2013, Kaye cited the penthouse’s ties to “celebrity” and its uniqueness as partial reasons to add $20 million to the apartment’s listed value, according to an email that was entered into evidence.
“I don’t see how one would list below 8K per sq foot at this point, which brings us to 240,000M … 200,000M is a safe estimate,” Kaye wrote in the email.
McConney also appeared to struggled to explain why he used asking prices, rather than the accepted practice of using sale prices, when valuing the penthouse.
The exchange prompted New York AG special counsel Andrew Amer to confront McConney with his testimony during a previous investigative interview, in which McConney said asking prices were a poor measure of value since “you can ask anything you want to.”
Oct 05, 6:11 PM EDT
Trump Organization controller grilled about assets
Testifying about his responsibilities as the Trump Organization’s longtime controller, co-defendant Jeffrey McConney was grilled on the stand by special counsel Andrew Amer of the New York attorney general’s office.
Amer pressed McConney about alleged issues with Trump’s financial documents.
Asked about why he listed assets from Vornado Trust — which Trump did not control — as being under Trump’s control, McConney suggested it came down to accounting convenience.
“We couldn’t keep adding columns for every bank or brokerage account,” McConney said, later adding that the money was held in a Capital One account like the other assets, even if Trump could not access that account.
McConney testified that the individuals who accessed the spreadsheet would understand who controlled that money.
“People can make assumptions in any way they want to. The users looking at this spreadsheet would know it’s not one bank account,” McConney said.
McConney appeared to struggle to answer questions about the value of Trump’s triplex apartment in Trump Tower, which, according to the Trump Organization, ballooned in value from $80 million in 2011 to $327 million in 2016.
The controller testified that he relied on data from the StreetEasy website, adopted cost-per-square-foot estimates from newer properties, and took other Trump Organization executives’ claims about the apartment at face value.
McConney is scheduled to continue his testimony tomorrow as the day’s only witness.
Oct 05, 3:35 PM EDT
Defense plans to request a halt to the proceedings
Donald Trump’s legal team plans to request a stay of the ongoing fraud trial, pending their appeal of Judge Engoron’s partial summary judgment ruling issued last week, defense lawyer Chris Kise notified Engoron in court.
In seeking to halt the trial, the defense team said they plan to file their request tomorrow morning and wanted to provide notice to the state.
State prosecutors objected that less than 24 hours’ notice is not enough.
“That’s clearly not sufficient,” Engoron said of the notice, adding that the appellate court could deny the request due to the lack of proper notice.
Oct 05, 2:53 PM EDT
Note on financial document suggests Trump had final say
A marked-up version of the Trump Organization’s 2014 statement of financial condition suggests that Trump himself issued final approval for the statements, according to the document, which was entered into evidence today.
The document included a handwritten note from longtime Trump Organization Controller Jeffrey McConney saying “DJT TO GET FINAL REVIEW.”
The document also included a list showing the 2013 value of Trump’s properties, which McConney had crossed out to adjust to the 2014 values.
Testifying on the stand, McConney — who joined the Trump Organization in 1987 and was responsible for Trump’s financial statements between 2011 and 2017 — testified that he worked in conjunction with accounting firm Mazars USA and Trump Organization chief financial officer Allen Weisselberg to issue the statements.
While McConney acknowledged that he wrote the note on the document, he could not provide specifics about the extent of Trump’s involvement.
Oct 05, 2:15 PM EDT
Judge outlines next steps for dissolving Trump’s companies
As the questioning of witnesses continues, Judge Engoron has issued an order outlining the next steps to dissolve Trump’s companies in New York.
Engoron last week found that Trump and his adult sons used fraudulent documents to conduct business, and ordered the cancellation of his business certificates in the state. Trump appealed that ruling yesterday.
In today’s order, Engoron asks the defendants to provide a list of “entities controlled or beneficially owned by Donald J. Trump” — and the other co-defendants — to the Hon. Barbara S. Jones, the independent monitor overseeing Trump’s business activities.
Trump is also required to notify Jones of any new business applications or changes to preexisting entities.
The order also gives the parties 30 days to recommend a receiver to oversee the dissolution of Trump’s corporate assets. However both parties previously suggested that they plan to recommend Jones for that position.
In the meantime, the ongoing trial is being held to determine what additional penalties Trump might face and what might happen with the multiple causes of action included in the attorney general’s lawsuit.
Longtime Trump Organization controller Jeffrey McConney, a defendant in the case, has taken the stand.
McConney testified that he was responsible for Trump’s statement of financial condition from 2011 until 2017, when the responsibility was passed on to another employee.
But McConney was quick to differentiate his role from that of the organization’s accounting firm, Mazar’s USA.
“We as the Trump Organization didn’t prepare the statement,” McConney said.
Unlike most witnesses who generally aren’t allowed to hear other witnesses testify, McConney — as a defendant in the case — is entitled to be in the courtroom for the entire trial. However, today is the first time he has appeared.
Oct 05, 12:30 PM EDT
Defense presses ex-accountant on asset appraisals
Pressing Mazars USA accountant Donald Bender on how often he asked the Trump Organization for appraisals of the former president’s assets during the years he worked on Trump’s account, defense lawyers attempted to portray Bender as neglecting to do his job compiling Trump’s financial reports.
“I didn’t know that the Trump Organization had any access to appraisals they did not give me,” Bender testified.
The longtime Trump accountant struggled to articulate how often he made requests for appraisals, and defense counsel Clifford Robert drilled into the fact that those requests appear to never have been made in writing to Trump Organization controller Jeffrey McConney.
“You don’t really know what you asked Jeff McConney,” Robert told Bender.
Bender was also asked about Trump’s three adult children, who all previously served as executives in the Trump Organization, and whether they were involved with Trump’s statement of financial condition.
The accountant said that — apart from a brief conversation he once had with Eric Trump — Eric, Don Jr. and Ivanka Trump were not involved in issuing Trump’s financial statements.
On redirect examination, prosecutors briefly asked questions of Bender suggesting that the defense’s questions had been based on an outdated accounting standard.
That concluded Bender’s testimony.
Oct 05, 10:39 AM EDT
Judge says he’ll cap questioning at an hour and a half
Trump attorney Jesus Suarez, in his cross-examination of longtime Trump accountant Donald Bender, is attempting to ask Bender about each year’s compilation of Trump’s statement of financial condition.
In response, facing the possibility of hours of repetitive questions, Judge Engoron said he would limit Suarez to an hour and a half of cross-examination.
Defense lawyer Clifford Robert is also expected to question Bender.
Oct 05, 10:27 AM EDT
Cross-examination of ex-accountant resumes
The defense’s cross-examination of longtime Trump accountant Donald Bender has resumed.
New York Attorney General Letitia James is attending court today, but Eric Trump of the Trump Organization is absent from the gallery.
When Donald Trump attended over the first three days of the trial, the gallery was packed — but without him in attendance, it’s now roughly half full.
Oct 05, 10:04 AM EDT
Without Trump in attendance, trial resumes for Day 4
The trial resumes this morning for its first full day of action without the presence of former President Trump, who returned to Florida yesterday after attending the trial’s first three days.
With 26 witnesses yet to testify for the state, today is likely to provide an indication of the trial’s duration, which Judge Engoron scheduled to take three months.
Longtime Trump accountant Donald Bender of Mazars USA is back on the stand for more cross-examination from defense lawyer Jesus Suarez, who has been walking Bender though years of financial statements in an attempt to paint him as asleep of the wheel while handling Trump’s accounting.
If Bender gets off the stand today, the state will next call longtime Trump Organization comptroller Jeffrey McConney, who is a defendant in the case itself.
Oct 04, 5:35 PM EDT
Defense presses ex-accountant on evaluation of assets
Attorneys for the defense team declined to cross-examine Cameron Harris after the former Trump accountant completed his testimony. However they reserved the right to call him back to the stand later.
Instead, they spent the last hour of court Wednesday continuing their cross-examination of former Mazars USA accountant Donald Bender, who handled Trump’s account prior to Harris.
After the defense highlighted Bender’s inconsistent statements about Mazars’ use of specialists to evaluate assets, Bender seemed to struggle to articulate how Mazars provided accounting expertise.
Defense attorney Jesus Suarez told Judge Engoron that he plans to continue his cross-examination of Bender through Thursday afternoon, though the defense promised to “streamline” their questions after the judge complained about the timing.
Court was then adjourned for the day.
Oct 04, 3:49 PM EDT
2nd accountant says Trumps were responsible for statements
Cameron Harris, an accountant from the firm Whitley Penn, has taken the stand as the trial’s second witness following hours of testimony from former Trump accountant Donald Bender of Mazars USA, whose cross-examination will continue later.
Whitley Penn succeeded Mazars as Trump’s accounting firm.
Harris testified that Trump’s son Eric Trump “set the tone at the top” of the Trump Organization.
Like Bender, Harris testified that the Trumps had the ultimate responsibility for their financial statements.
“Who’s responsible for the statement of financial condition?” asked state attorney Kevin Wallace as Eric Trump sat in the courtroom.
“The client’s responsible for that,” Harris replied.
The proceedings appear to have taken a more workmanlike tone since Trump left the courtroom to return to Florida. The defense has not logged a single objection after earlier objecting so often that it drew the judge’s ire.
Oct 04, 2:51 PM EDT
‘Trump show is over’ says AG James after he departs
With former President Trump heading back to Florida after attending three days of the trial, New York Attorney General Letitia James told reporters that “the Donald Trump show is over.”
Speaking to the media on her way into court following a break, James denounced Trump’s rhetoric about the case, as well as his social media post about the judge’s clerk.
“Mr. Trump’s comments were offensive, they were baseless, they were void of any facts,” James said.
Trump, who called James “corrupt” during his various appearances outside the courtroom, also denounced the case she brought as “rigged” and said it was timed to upend his campaign for the presidency.
“This case was brought simply because it was a case where individuals were engaged in a pattern and practice of fraud,” James said. “I will not be bullied.”
“Mr. Trump is no longer here — the Donald Trump show is over,” said James. “This was nothing more than a political stunt, a fundraising stop.”
Oct 04, 2:30 PM EDT
Trump appeals judge’s pretrail ruling that he committed fraud
Three days into their fraud trial, Trump and his co-defendants have appealed the pretrial ruling last week by Judge Engoron that Trump and his adult sons committed fraud in their business dealings.
Engoron made the determination last Tuesday but said the trial was still required to decide the scope of the penalty plus six remaining causes of action alleged by the New York attorney general.
Trump’s appeal asks the court to consider whether Engoron “committed errors of law and/or fact, abused its discretion, and/or acted in excess of its jurisdiction” when he ruled that Trump committed fraud and canceled his business certificates in New York state.
Trump’s last attempt in this case to appeal to a higher court was denied by the appellate division of the New York State Supreme Court on the eve of the trial.
Oct 04, 1:59 PM EDT
Trump, departing trial, says ‘this is corrupt’
Former President Trump appears to be done watching his civil fraud trial, and he had a lot to say about it on his way out of the courthouse.
Speaking to reporters, Trump renewed his attacks on Judge Engoron and accused the “whole system” of being rigged against him while referencing the criminal charges he faces in Washington, D.C., and Fulton County, Georgia.
“Our whole system is corrupt. This is corrupt. Atlanta is corrupt, and what’s coming out of DC is corrupt,” Trump said.
Trump again claimed that his net worth is more than is represented in his financial documents, and said that his Mar-a-Lago estate is worth “50 to 100 times more” than what Engoron determined.
Trump also resumed attacks on the judge — who he said is “run by the Democrats” — and New York Attorney General Letitia James, who he alleged is communicating with the Department of Justice to “keep me nice and busy.”
The former president said he’s been “stuck” in court when he would rather be campaigning in early primary states.
Asked by ABC News why he attended the trial despite no obligation to do so, he claimed his attendance was necessary to expose corruption to the press.
“Why attend? Because they want to point it out to the press how corrupt it is, because nobody else seems to be able to do it,” Trump said.
Trump departed the courthouse and is not expected to return to court for the afternoon session.
Oct 04, 1:00 PM EDT
‘This is ridiculous,’ judge admonishes defense counsel
Judge Engoron lost patience with Trump’s defense counsel during the cross-examination of longtime Trump accountant Donald Bender.
As defense attorney Jesus Suarez repeatedly asked Bender to recall how he arrived at specific values for specific assets in specific years, Engoron interrupted to ask how much longer the cross-examination would last.
Suarez said he would do his best to finish by the end of court today.
That prompted Kevin Wallace with the state attorney general’s office to shout, incredulously, “Today?” Wallace accused Suarez of being overly performative with Trump seated at the defense table.
When Engoron reminded the defense, “Mr. Bender is not on trial here,” Trump attorney Chris Kise interjected, “I would very much disagree with that.”
The judge implored the defense to truncate the line of questioning.
“You’re not allowed to waste time,” Engoron said.
“This is insane,” responded Trump attorney Alina Habba “He has not answered one question.”
Engoron pounded the bench, asking reporters in the room to take note. “This is ridiculous,” he barked.
Oct 04, 12:34 PM EDT
Trump back in courtroom
Nearly 30 minutes after court resumed following a break, Trump entered the courtroom and returned to his seat at the counsel table.
The defense’s cross examination of Mazars USA accountant Donald Bender continued after a brief interruption.
Oct 04, 12:07 PM EDT
Trump not in courtroom following break
Court has resumed following a break, but Trump is notably absent from the courtroom. His paperwork remains at the counsel table, and his lawyers have left his seat empty.
Eric Trump and New York Attorney General Letitia James returned to the courtroom after the break, along with the lawyers for both sides.
Former Trump accountant Donald Bender is back on the stand for his cross-examination.
Oct 04, 11:48 AM EDT
‘Tell me what the point is,’ judge tells Trump attorney
Trump attorney Jesus Suarez is continuing his attempts to discredit former Trump accountant Donald Bender’s testimony, but his arguments seem to be wearing thin for the judge.
After Suarez played a short clip from Bender’s deposition, Judge Engoron — who is deciding the case himself — told the attorney, “There’s no jury. Tell me what the point is.”
During another portion of the cross-examination, Engoron told Suarez, “It’s starting to sound like ‘How many angels can dance on the head of a pin.'”
Oct 04, 11:10 AM EDT
Cross-examination of ex-accountant continues
Continuing his cross-examination of Mazars USA accountant Donald Bender, who formerly worked on Trump’s account, Trump attorney Jesus Suarez is adopting a less aggressive approach to his questioning than the theatrical approach he took yesterday.
When Justice Engoron appeared unreceptive to one part of Suarez’s questioning, Trump, sitting with his attorneys, visibility groaned.
“It’s easiest just to move on. Take a hint,” Engoron said to Suarez about one of his attempts to discredit Bender.
Trump has been conferring with his attorney Alina Habba, taking notes, reviewing documents, and even ripping up papers while seated at the counsel table during the cross-examination of Bender.
Oct 04, 10:30 AM EDT
Trump says his net worth is ‘much higher’ than statements say
Former President Trump, on his way into court for Day Three of his trial, said that his financial statements under-report his wealth, despite the judge in his case already ruling that his financial records were fraudulently inflated.
“My real net worth is much higher than that, much higher than the statement,” Trump told reporters.
Decrying his trial as the “beginning of communism in our country,” Trump continued his attacks on New York Attorney General Letitia James but did not comment on Judge Arthur Engoron.
“This is just a continuation of the witch hunt that started the day I came down the escalator in Trump Tower,” Trump said.
Oct 04, 10:03 AM EDT
Trump back in court for Day Three
Former President Trump is back in court for Day Three of the trial, where defense counsel is expected to continue its cross examination of longtime Mazars accountant Donald Bender.
Once questioning of Bender concludes, the state says they plan to call Whitley Penn audit partner Camron Harris, who took over Trump’s accounting after Mazars.
Justice Arthur Engoron may also address the narrow gag order he placed on Trump and the other defendants yesterday regarding making statements about the judge’s staff, after the former president made what Engoron described as a “disparaging, untrue, and personally identifying post” involving Engoron’s clerk.
Oct 03, 5:46 PM EDT
Trump, following closed proceedings, says he’ll be back Wednesday
Former President Trump told reporters he plans to return to court on Wednesday as he left the courtroom following a closed proceeding Tuesday afternoon.
Judge Arthur Engoron held multiple closed proceedings during the afternoon after issuing a warning to Trump to not post anything to social media about his staff.
Neither Trump nor New York Attorney General Letitia James answered questions about the nature of the closed sessions when they left the courthouse at the end of the day.
Earlier, Mazars accountant Donald Bender underwent a forceful cross examination by Trump lawyer Jesus Suarez. Mixing criticism of Bender with praise of Trump — who Suarez described as “the leader of the free world” and “possibly even the 47th president of the United States” — Suarez attempted to paint Blender as an incompetent accountant who “messed up” and landed Trump in court.
As part of his cross examination, Suarez questioned Bender about why he failed to raise concerns about Trump inaccurately overstating the size of his triplex apartment in Manhattan’s Trump Tower.
“Do you think two thirds of his [triplex] disappearing is not something you should have said to the leader of the free world?” Suarez asked during a portion of his questioning that was so theatrical that it prompted occasional laughter in the courtroom.
Oct 03, 3:27 PM EDT
Judge admonishes Trump after he posts about clerk
As court resumed after the lunch break, Judge Engoron admonished Donald Trump for a post he made this afternoon on his Truth Social platform regarding Engoron’s clerk, Alison Greenfield.
The post, which included a photo of Greenfield with Senate Majority Leader Chuck Schumer, made unsubstantiated claims about her connections with Schumer and falsely claimed that Greenfield is “running” the case against Trump.
Trump apparently made the post, which linked to Greenfield’s Instagram account, while the former president was sitting in the courtroom.
“Personal attacks on members of my court staff are unacceptable and inappropriate,” the judge said in his admonishment, adding that he ordered the post taken down.
Trump appears to have deleted the post, but the judge lamented that the sentiment was shared to millions.
The judge did not mention Trump by name but noted the post came from one of the defendants. He said his remarks should be taken as forbidding all parties from posting or speaking publicly about any member of his staff.
Greenfield sits at the bench to Engoron’s immediate right and he is often seen conferring with her over legal and logistical matters.
-ABC News’ Peter Charalambous, Aaron Katersky, Soo Rin Kim, Lalee Ibssa and Kendall Ross
Oct 03, 2:37 PM EDT
Trump says he’s attending trial to ‘expose’ AG
Former President Donald Trump said he is attending his civil trial to “expose” New York Attorney General Letitia James, during an exchange with ABC News.
Asked by ABC News’ Aaron Katersky why he was attending the trial even though he’s not required to be there, Trump replied, “Because this trial is a rigged trial. It’s a fraudulent trial.”
“The attorney general is a fraud, and we have to expose her as that,” Trump said after exiting the courtroom for the afternoon break. “You see what’s going on. It’s a rigged deal.”
James has said of her probe, “No matter how powerful you are, no matter how much money you think you may have, no one is above the law.”
The statements from Trump follow the conclusion of the state’s lengthy direct examination of longtime Mazars accountant Donald Bender, who testified about the procedures Mazars and the Trump Organization used to compile a central piece of evidence in the case — Trump’s statements of financial condition between 2011 and 2020.
Trump appeared attentive during the testimony, often studying the exhibits displayed on the court’s screens — including a recurring spreadsheet titled “Jeff Supporting Data” prepared by co-defendant and Trump Organization executive Jeffrey McConney, which contained the source information for the financial statements.
Bender testified about a specific red notation spelled “PBC” that appeared on the Excel file across multiple years. The notation — indicating that the files were “Prepared By [the] Client” — seemed to emphasize how much of the accounting was done by the Trump Organization rather than Mazars.
Testifying about letters of representation issued by the Trump Organization in support of the statements, Bender addressed specific language in the letter stating that the Trump Organization had included all the relevant records and data needed for the statements.
“We have not knowingly withheld from you any financial records or related data that in our judgment would be relevant to your compilation,” the letter read.
But Bender testified that he later learned that meaningful information was indeed omitted — information he said he learned in 2021 during meetings with prosecutors.
When asked repeatedly if Mazars would have issued the statements if they knew the Trump Organization had withheld information, Bender repeated that Mazars would not have issued the statements.
-ABC News’ Aaron Katersky, Jack Feeley and Peter Charalambous
Oct 03, 12:49 PM EDT
Judge mixes focus, humor on the bench
Justice Arthur Engoron appears to be enjoying his time overseeing the trial today, including correcting the attorneys for the state on minor issues.
“The correct word is withdrawn, not strike,” Engoron interjected at one point, after a state attorney attempted to “strike” the record so he could rephrase a statement.
Later, Engoron smiled and signaled a thumbs-up when the same attorney adjusted his language and “withdrew” his words from the record to rephrase.
The veteran justice, who has served on the bench in New York for more than 20 years, has a reputation as a reliable albeit unusual judge, according to past and former associates.
Oct 03, 12:19 PM EDT
Trump calls case a ‘scam,’ says he might testify
Exiting court during the break, Trump told reporters positioned nearby that the financial statements being reviewed in court included disclaimers, which his legal team has argued absolves him of wrongdoing.
“This case is a scam,” Trump said during his walk back to court.
When asked if he would consider testifying, Trump said he might.
Oct 03, 12:14 PM EDT
Ex-accountant addresses 2012-2016 financial statements
An attorney with for the New York attorney general’s office spent the first hour of direct examination methodically walking Mazars accountant Donald Bender through the Trump Organization’s financial documents from 2012 through 2016.
As he addressed each document, Bender reiterated that the Trump Organization and its trustees were responsible for the accounting principles used in the records, the disclosures in reports, and the information from which the reports were based.
The state appears to be using Bender’s testimony to not only get Trump’s financials statements into evidence, but also to demonstrate the relatively consistent process the Trump Organization used to compile and finalize their statements of financial condition over a decade.
Oct 03, 10:48 AM EDT
Judge clarifies statute of limitations remarks
Justice Arthur Engoron, who was a frequent target of Trump’s attacks yesterday, began the trial’s second day by clarifying some of his closing remarks about the statute of limitations in the case.
After court yesterday, Trump construed his remarks as a victory, suggesting “80% of the cases is over” after leaving court on Monday.
Engoron apologized for his comments and stated that any future real estate deals “restart” the statute of limitations — meaning that the attorney general’s office needs to “connect the dots” to include the evidence about a 2011 deal discussed on Monday.
“I understand that the defendants strongly disagree on this and will appeal on this ground,” Engoron said.
He concluded his remarks by reminding counsel not to relitigate issues already decided — something that Trump’s attorneys seemingly did on Day One of the trial.
“This trial is not an opportunity to relitigate what I have already decided … that is why we have appeals,” Engoron said.
Oct 03, 10:41 AM EDT
Trump again attacks AG on way into court
Former President Donald Trump continued his attacks on New York Attorney General Letitia James before entering the courtroom for the second day of his $250 million civil fraud trial in downtown Manhattan.
“She ran on the basis ‘I will get Trump’ without knowing anything about me,” he said to reporters outside court.
Both Trump and James are present this morning in court, where state attorneys are set to continue their direct examination of longtime Mazars accountant Donald Bender.
Oct 03, 7:14 AM EDT
Trump expected in court for second day
Former President Donald Trump signaled he will be in court again Tuesday morning in a post on his social media platform.
“See you in Court Tuesday morning,” Trump posted.
The former president then went on to attack New York Attorney General Letitia James. He claimed he had a “good day at trial” during Monday’s proceedings.
Oct 02, 6:15 PM EDT
First witness eyes Trump’s decade-old financial statements
Testifying about the preparation of the Trump Organization’s statements of financial condition in 2011, former Mazars USA accountant Donald Bender said Trump executives largely provided the input data for statements, in addition to dictating the standards by which the work was completed.
“We would cut and paste that information into a new worksheet,” Bender said about the approach taken by Mazar after receiving new data from co-defendant Jeffrey McConney of the Trump Organization.
When asked about the compliance with the Generally Accepted Accounting Principles — which Bender testified are the standards for accounting in the United States — Bender repeatedly placed responsibility in the lap of the Trump organization.
“That was the Trump Organization’s responsibility,” Bender testified about GAAP compliance.
Bender acknowledged that he rarely questioned the inputs from the Trump Organization, and when he did, he largely dealt with McConney and executives other than Trump and his adult sons.
Repeatedly asked by the state attorney if Mazars would have issued the statements if they had known the Trump Organization included material misrepresentations in their data, Bender reiterated that Mazars would not have issued the statements.
When Judge Engoron remarked at the end of the trial day that the state would still need to present further evidence to prove that the 2011 statement was within the statute of limitations, Trump seized the statement as a partial victory.
“The last five minutes was outstanding, because the judge actually conceded that the statute of limitations … is in effect,” Trump told reporters as he was leaving court.
Engoron, however, did not completely rule out the 2011 evidence during trial, instead appearing to remind counsel that they need to show the 2011 statement represents an ongoing concern that falls within the statute of limitations.
Testimony is scheduled to resume on Tuesday at 10 a.m. ET.
Oct 02, 3:50 PM EDT
Ex-accountant says statements were ‘Trump Org’s responsibility’
Prosecutors have called their first witness to the stand: Donald Bender, a former accountant at Mazars USA, the firm that for years handled Trump’s taxes.
Bender testified at length about his involvement in compiling Trump’s statements of financial condition between 2011 and 2020, which he described as “balance [sheets] of Mr. Trump’s assets and liabilities.”
Bender said the standards and inputs for the statements were largely decided by Trump Organization executives.
“That was the Trump Organization’s responsibility,” Bender said about the accounting standard used in the statements.
As Bender answered the state’s questions, Trump was seen taking notes at the defense table.
Bender described spending roughly half his time on Trump’s business and personal financial matters toward the end of his career at Mazars.
The firm severed its business relationship with Trump last year after learning of the attorney general’s findings during the AG’s probe.
Oct 02, 1:19 PM EDT
Trump attorney says sons made no misrepresentations
An attorney for Donald Trump’s adult sons, Eric Trump and Donald Trump Jr., added a brief opening statement of his own, defending his clients from accusations of wrongdoing.
“There was never a material misrepresentation made by Eric Trump or Donald Trump Jr.,” said Clifford Robert, the attorney for Trump’s adult sons, who help run the Trump Organization.
Robert said he disagrees “with just about everything” the state’s prosecutor said in his opening remarks, and took aim at the state’s star witness.
“Their major linchpin is Michael Cohen, a guy who lies to everyone,” Robert said of the former Trump attorney.
Lucien Bruggeman
Oct 02, 1:10 PM EDT
AG’s case sets ‘dangerous precedent,’ defense says
Attorney General Letitia James “is setting a very dangerous precedent for any business in the state of New York,” warned Trump attorney Alina Habba in her opening statement.
Habba told the court she hadn’t planned to make opening remarks, but that she felt moved to speak after hearing the state present its own opening statement. Habba accused the attorney general of targeting Trump before taking office, claiming the investigation and lawsuit were personal in nature.
“We are attacking a sitting president and two of his children and his employees for a statement of financial condition which is frankly worth less than what they are worth,” Habba said.
Habba reiterated many of the points made earlier by co-counsel Christopher Kise, highlighting the fact that “these lenders made money,” and arguing that “real estate is malleable — the values change.”
After Habba concluded her remarks, Judge Engeron engaged her in a series of follow-up questions, asking about her claim that the property appraisals at issue were “undervalued” by prosecutors.
Habba replied that “the Trump brand is worth something.”
Oct 02, 12:03 PM EDT
‘The attorney general has no case,’ defense counsel says
Former President Trump’s defense counsel will present a “very different picture of the evidence” than the prosecution alleges, and will demonstrate that “there are many ways to value assets,” according to opening remarks from Christopher Kise, Trump’s lead attorney.
“We think the evidence is going to establish … President Trump has made billions of dollars building one of the most successful real estate empires in the world,” Kise said, reiterating sentiments he conveyed in pretrial motions.
Kise offered a glimpse into the former president’s defense, including plans to present testimony from a New York University professor who will explain that “there is no one generally accepted procedure to determine the estimated current value” of a property.
Other defense witnesses, including four Deutsche Bank officers who were involved in approving Trump’s loans, will explain how they were able to craft their own independent risk analyses meant to mitigate the claims of fraud that are core to the state’s case.
“Anyone committing fraud does not tell the other side, ‘Please do your own analysis,'” Kise said regarding Trump’s instructions to lenders.
Kise also previewed plans to undermine the state’s key witness, former Trump attorney Michael Cohen, who Kise said has “lied to everyone and anyone he has come in contact with.”
Kise reiterated the defense’s claim that Trump did not commit fraud and that there were no victims of his alleged conduct.
“The attorney general has no case,” Kise said.
Oct 02, 11:28 AM EDT
Defendants were ‘lying year after year,’ prosecutors say
Prosecutors intend to prove in the coming months that “each defendant engaged in repeated, persistent, illegal acts in conduct of business,” according to the opening statement from Kevin Wallace of the attorney general’s office.
Referring to Judge Engoron’s partial summary judgment last week, Wallace said that “the people have already proven” that former President Trump used “false, misleading” statements that were “repeatedly [and] persistently used in the conduct of business.”
But prosecutors will further demonstrate that Trump and his co-defendants knew those statements were false and continued to peddle them anyway in furtherance of their alleged scheme, Wallace told the judge.
“The defendants were lying year after year,” he said.
Wallace played clips of video depositions to punctuate his remarks, including testimony from Trump himself, as well as Eric Trump and former Trump attorney Michael Cohen — whose congressional testimony years ago precipitated the state’s investigation and some of the key allegations underpinning their case.
“The goal was to use each of [Trump’s] assets and increase its value in order to get to the end result number,” Cohen said during his taped deposition. “It was essentially backing in numbers to each of the asset classes in order to attain the number that President Trump wanted.”
Trump and his co-defendants “knew that a high net worth was necessary to get and maintain certain financial benefits,” Wallace said, pointing to basic principles of accounting and finance.
Throughout Wallace’s remarks, the attorney general’s office flashed graphics on television screens inside the courtroom showing some of the alleged inflated values of Trump’s properties alongside the amounts the properties were appraised at.
Seated in his chair with his arms crossed, Trump visibly shook his head at times during the prosecutor’s opening statement. At one point he seemed to mutter something under his breath.
The former president whispered with his attorneys throughout.
Oct 02, 10:45 AM EDT
Opening statements underway
Opening statements are underway in former President Trump’s $250 million fraud trial.
Trump is seated between his attorneys Clifford Robert, Alina Habba and Christopher Kise.
Trump and his co-defendants face a bench trial, meaning that the sole arbiter of the case is Judge Arthur Engoron instead of a jury.
Oct 02, 10:19 AM EDT
Trump seated in courtroom
Former President Trump has taken a seat in the courtroom for the start of the trial.
“The crime is against me,” he told reporters outside the courtroom before he made his way inside.
He denounced the case in now-familiar terms, criticizing state Attorney General Letitia James as she sat inside the courtroom.
Trump also accused Judge Arthur Engoron of failing to account for the full value of his real estate portfolio, asserting his Mar-a-Lago estate is worth “50 to 100 times more” than the judge’s decision for partial summary judgment said last week.
“We have other properties, the same thing. So he devalued everything,” Trump said. “We have among the greatest properties in the world. and I have to go through this for political reasons.”
Engoron decided Trump’s statements of financial condition were fraudulent, but Trump said, “We have a clause in the contract that says, essentially, buyer beware.”
Oct 02, 10:09 AM EDT
Trump calls trial ‘political witch hunt’
Former President Trump, speaking to reporters on his arrival at the lower Manhattan courthouse, said the trial is a witch hunt resulting from his standing in the presidential polls.
“This is a continuation of the greatest political witch hunt of all time,” he told reporters outside the courtroom.
Trump said he is innocent of the accusations and that his portfolio has a much higher value than what the attorney general alleges.
Oct 02, 9:59 AM EDT
Trump attorneys call trial ‘election interference’
Members of Donald Trump’s legal team, speaking to reporters outside the courthouse prior to the start of the trial, called the fraud allegations against the former president “election interference.”
Trump’s attorneys said that Democrats were using the case to fight Trump’s efforts to retake the White House in 2024.
Oct 02, 9:43 AM EDT
Attorney general arrives at courthouse
New York Attorney General Letitia James has arrived at the courthouse in lower Manhattan.
“No matter how powerful you are, no matter how much money you think you may have, no one is above the law,” James said to the cameras before entering the courthouse.
“Today we will prove our case in court,” she said. “Justice will prevail.”
Demonstrators across the street from the courthouse cheered and applauded as the AG arrived.
Oct 02, 8:19 AM EDT
NY attorney general releases statement on 1st day of trial
New York Attorney General Letitia James released a statement on Monday just hours before the first day of trial in her fraud case against former President Donald Trump.
“For years, Donald Trump falsely inflated his net worth to enrich himself and cheat the system,” James said. “We won the foundation of our case last week and proved that his purported net worth has long been rooted in incredible fraud. In this country, there are consequences for this type of persistent fraud, and we look forward to demonstrating the full extent of his fraud and illegality during trial.”
“No matter how rich or powerful you are, there are not two sets of laws for people in this country,” she added. “The rule of law must apply equally to everyone, and it is my responsibility to make sure that it does.”
Oct 02, 8:14 AM EDT
Trial scheduled to begin at 10 a.m. ET
The People of the State of New York v. Donald J. Trump, et al, is scheduled to get underway in lower Manhattan at 10 a.m. with opening statements.
If opening statements are completed before the end of the day, the New York attorney general plans to begin her case by calling Trump’s former Mazars USA accountant Donald Bender to the stand.
Mazars severed its business relationship with the former president last year after learning of the attorney general’s findings during the AG’s probe.
Oct 02, 7:10 AM EDT
Judge has already found that Trump overvalued his assets
Though Trump has denied all wrongdoing alleged by the attorney general, Judge Arthur Engoron has already decided the central allegation against Trump and his co-defendants, ruling in a pretrial hearing last week that the AG had provided “conclusive evidence” that Trump overvalued his assets between $812 million and $2.2 billion.
The judge then canceled the Trump Organization’s business certificates in New York, severely restricting Trump’s ability to conduct business in the state moving forward — a move that Trump attorney Alina Habba called “nonsensical” and “outrageously overreaching.”
“In defendants’ world: rent regulated apartments are worth the same as unregulated apartments; restricted land is worth the same as unrestricted land; restrictions can evaporate into thin air,” Engoron wrote, citing multiple arguments made by defense to justify the allegedly inflated valuations of Trump’s assets. “That is a fantasy world, not the real world.”
Among the issues still to be determined at trial: What additional penalties Trump might face, and what might happen with the multiple causes of action included in the attorney general’s suit.
Oct 02, 6:43 AM EDT
Trump blasts judge ahead of trial
Former President Donald Trump stepped up his attacks on the judge overseeing and deciding his case, writing on Truth Social overnight that Justice Arthur Engoron should resign and be sanctioned for “abuse of power.”
Similar to his earlier post, Trump focused on the alleged inflated value of Mar-a-Lago, in addition to an appellate decision that his lawyers unsuccessfully tried to use to limit the timeframe of the case.
Oct 02, 6:39 AM EDT
Trump says he will attend trial’s opening
Former President Trump posted on his Truth Social platform Sunday night that he intends to attend the opening of the trial.
“See you in court — Monday morning,” he wrote in a post.
Earlier Sunday, multiple sources familiar with the decision told ABC News that Trump was expecting to attend.
Trump will have no speaking role in court on Monday, but it is anticipated that he’ll return to the courthouse toward the end of the state’s case when court records show he will be called as a witness.
(NEW YORK) — Sam Bankman-Fried took naps on a bean bag while living with 9 other employees at a $35 million apartment in the Bahamas, a witness testified at the FTX founder’s criminal trial on seven counts stemming from the collapse of the crypto-exchange.
The witness, Adam Yedidia, who worked as a developer at FTX, testified that Alameda, Bankman-Fried’s privately controlled hedge fund, paid for the apartment.
Prosecutors have been exploring the unusual living arrangements and the luxurious lifestyle Bankman-Fried had been living in the Bahamas that was allegedly paid for, illegally, with customer and investor money. Prosecutors have alleged Bankman-Fried used other customer funds for real estate, speculative investments and political donations.
Yedidia said he had been tasked with fixing a bug in FTX’s system in June 2022 when he discovered Alameda allegedly owed FTX customers $8 billion. He called it concerning.
“Because if they spend the money that belongs to the FTX customers, then it’s not there to give the FTX customers should they withdraw,” Yedidia said.
Five months later, when Yedidia said he heard Alameda had used customer money to repay loans, he said he resigned.
“Because if Alameda was repaying its loans with FTX customer money, that implied that it didn’t have money of its own to repay the loans with, which means the money was simply gone,” he said.
Yedida further testified that Bankman-Fried told him that he and Alameda CEO Caroline Ellison had begun a romantic relationship in early 2019. Ellison pleaded guilty in December to wire fraud, securities fraud and money laundering.
Friday’s hearing also featured testimony from FTX co-founder Gary Wang, who has already admitted he committed crimes.
“Did you commit financial crimes while working at FTX?” assistant US Attorney Nicholas Roos asked Wang.
“Yes,” Wang answered, adding he committed wire fraud, securities fraud and commodities fraud.
“Did you commit these crimes by yourself or with other people?” Roos asked.
“With other people,” Wang said, identifying, among others, Sam Bankman-Fried.
The trial of Bankman-Fried began Tuesday and could last up to six weeks. He faces seven counts of fraud, conspiracy and money laundering, and has pleaded not guilty to all counts. If convicted, he could face a sentence of up to 110 years in prison.
