Former President Donald Trump’s Control of Prized Properties at Stake in Fraud Lawsuit
New York state lawyers are now vowing to hold former President Donald Trump accountable in a fraud lawsuit that could potentially cost him control over some of his most cherished properties. Trump, on the other hand, denounced the case as a politically motivated “scam.”
The civil case, brought by New York Attorney General Letitia James, alleges that Trump and his company deceived banks, insurers, and others by habitually misrepresenting his wealth in financial statements.
“They were lying year after year after year,” stated Kevin Wallace, a lawyer in James’ office, during the trial’s opening as Trump sat at the defense table.
Despite the jeopardy Trump’s control over Trump Tower and other major real estate holdings now face, he voluntarily showed up for the trial. However, he maintained that this lawsuit is part of a “witch hunt” aimed at hindering his return to the White House.
“It’s a scam. It’s a sham,” Trump proclaimed, adding that the case is “an attempt to hurt me in an election.” He declared, “I don’t think the people of this country are going to stand for it.”
While passing by James on the way into the court, Trump averted his gaze, wearing a disgusted expression. Simultaneously, his campaign immediately began using this appearance as a fundraising opportunity.
Judge Arthur Engoron has already ruled that Trump committed fraud in his business dealings. If this ruling stands on appeal, it could force Trump to relinquish New York properties, including Trump Tower, a Wall Street office building, golf courses, and a suburban estate. Trump has labeled it as a “corporate death penalty” and insisted that the judge is biased against him.
This non-jury trial will see Engoron deciding on six other claims made in the lawsuit. James is seeking $250 million in penalties and a prohibition on Trump conducting any future business in New York.
Prior to the trial’s commencement, James reiterated her belief that Trump engaged in “persistent and repeated fraud” over the years.
“No matter how powerful you are, and no matter how much money you think you have, no one is above the law,” she stated as she entered the courthouse.
In his office’s opening statement, Wallace placed Trump at the center of the alleged financial manipulation: “Every estimate was determined by Mr. Trump.”
Trump, a Republican front-runner in the 2024 presidential race, has continuously denied any wrongdoing. He argues that James and the judge have undervalued assets such as Mar-a-Lago, his resort in Palm Beach, Florida. He further contends that the disclaimers on his financial statements make their contents untrustworthy.
Trump is not expected to testify for several weeks. His appearance in court on Monday marked a significant departure from his previous practices.
Last year, when his company and one of its top executives were convicted of tax fraud, Trump neither attended as a witness nor as a spectator. He also did not appear for a civil trial earlier this year, where a jury found him liable for sexually assaulting writer E. Jean Carroll in a department store dressing room.
James’ lawsuit alleges that Trump and his company made numerous false claims in the financial statements provided to banks. In a recent court filing, James’ office asserted that Trump exaggerated his wealth by as much as $3.6 billion.
One of the allegations is that Trump stated his Manhattan Trump Tower apartment, which features gold-plated fixtures and spans three stories, was nearly three times its actual size and worth a staggering $327 million. James argued that no apartment in New York City has ever sold for anywhere close to that amount.
Additonally, Trump valued Mar-a-Lago at as high as $739 million, more than 10 times the worth estimated by more reasonable assessments, according to James. She clarified that a deed prohibits any further residential development on the property, despite Trump’s belief that it could be developed for residential use.
Trump and his legal team have contended that no one suffered any harm due to the information in his financial statements. He fully repaid the banks he borrowed money from, while his business partners profited, and his own company flourished.
This lawsuit is one of several legal challenges Trump faces as he campaigns for a return to the White House in next year’s election. He has been indicted four times since March, accused of plotting to overturn his 2020 election loss to Democrat Joe Biden, hoarding classified documents, and falsifying business records related to hush money payments made on his behalf.
Engoron predicts that the New York fraud trial could extend into December.
Associated Press writers Jennifer Peltz, Jill Colvin, and Karen Matthews contributed to this report.
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