On Monday, former U.S. President Donald Trump was sworn in to testify in a civil fraud trial in New York that poses a significant threat to his real estate empire, which was the foundation of his reputation before his entry into politics.
In this trial, Trump, like his two adult sons who testified the previous week, is expected to face tough questions about questionable accounting practices that Judge Arthur Engoron has already deemed fraudulent. New York state attorneys argue that these practices allowed Trump to secure favorable financing terms by inflating the value of his properties, including golf courses and apartment towers, at a time when many lenders were hesitant to do business with him. They allege that these activities generated $100 million for him and falsely inflated his wealth by $2 billion.
New York Attorney General Letitia James, who is leading the case, stated, “At the end of the day, the only thing that matters are the facts and the numbers. The numbers, my friends, don’t lie.”
Unlike the four criminal cases that Trump is currently facing, this civil trial does not pose the threat of imprisonment, allowing him to continue his pursuit of a White House bid for the 2024 Republican nomination. Trump has capitalized on the trial experience, using it to solicit campaign donations and argue that he is being targeted for his political views.
However, this trial could potentially damage Trump’s carefully cultivated image as a glamorous billionaire known for his luxury resorts and premium golf courses bearing his name.
Letitia James is seeking $250 million in fines and restrictions that would prevent Trump and his sons, Eric and Donald Jr., from conducting business in their home state. Judge Engoron has already revoked business certificates for companies controlling significant portions of Trump’s business, although that decision is pending appeal.
Evidence presented during the trial has revealed the involvement of company officials, including Trump’s sons, in attempts to manipulate the assessed value of prominent properties like the Mar-a-Lago estate in Florida. Michael Cohen, Trump’s former lawyer and fixer, testified that Trump instructed him to manipulate financial statements to inflate his net worth.
Trump has displayed his frustration throughout the trial. While his presence in court was not initially required, he has appeared multiple times to observe the proceedings from the defendant’s table and voice his grievances to TV cameras outside the courthouse. This led to fines of $15,000 for violating a limited gag order twice, which prevents him from criticizing court staff. Trump’s legal team has expressed discontent with this order and suggested it could be the basis for an appeal. However, on Friday, Judge Engoron extended the order to cover Trump’s lawyers as well.
With a packed legal calendar, Trump’s involvement in this trial threatens to keep him off the campaign trail for a significant portion of the upcoming year.