UPDATE, 12:05 p.m.: Opening arguments wrapped up around 11:40 a.m., earlier than expected. Prosecutor Kevin Wallace called for the judge to bar Trump and his sons from doing business in New York. “While it may be one thing to exaggerate for Forbes magazine… you cannot do it while conducting business in the state of New York,” he said.
Trump’s attorney Chris Kise asserted that Trump’s valuations of real estate properties helped him amass his fortune. “President Trump has made billions of dollars building one of the most successful real estate empires in the world,” Kise insisted. “He has made a fortune literally about being right about real estate.”
One interesting revelation from opening statements was that Deutsche Bank valued Trump’s net worth at $2 billion less than Trump did and still gave him a loan. His attorneys plan to call Deutsche Bank employees as witnesses.
Original story: On Monday morning, former president Donald Trump arrived in New York City to begin a civil lawsuit case with sweeping consequences for his vast business empire. The $250 million lawsuit alleges that Trump and his sons repeatedly lied, undervaluing some assets and overvaluing others in order to receive favorable financing on loans. Judge Arthur Engoron ruled last week that the trial could take place, and he will preside over it.
Trump arrived at a Manhattan courthouse shortly after 9:30 a.m., posting on Truth Social as he showed up.
Trump had earlier vowed “to fight for my name and reputation against a corrupt and racist Attorney General, Letitia James, who campaigned on ‘getting Trump,’ and a Trump Hating [sic] Judge who is unfair, unhinged, and vicious in his PURSUIT of me.”
New York Attorney General Letitia James, who brought the lawsuit against Trump, issued a statement ahead of the start of the trial.
“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,” James said. “No matter how rich or powerful you are, there are not two sets of laws for people in this country. The rule of law must apply equally to everyone, and it is my responsibility to make sure that it does.”
The Trump campaign responded with a statement of its own, asserting, “Letitia James made clear that ‘getting Trump’ was the motivating force behind her campaign for attorney general.”
The former president spoke to reporters on his way into the courtroom, telling them that James “used this to run for governor. She failed in her attempt to run for governor. She had virtually no following. She came back and she said, ‘Well, now I will go back to get Trump again.’ And this is what we have. It is a scam and a sham.”
Related: The Legal Assault on the Trump Organization Is Far Worse Than You Think
James took a seat in the front row of the courtroom, and Trump reportedly walked in front of her without looking at her. He sat down with his attorneys and prepared for the start of the case.
Opening statements began around 10:30 a.m. Engoron told the court that he expects to say as little as he has to during the trial, which is expected to wrap up the week before Christmas.
“I promise to do my best, despite my lame attempts at humor,” the judge said. “I take my job very seriously and I know the parties in this case do likewise.”
Last week, after Engoron ruled that Trump must dissolve his LLCs, my friend and PJ Media colleague VodkaPundit referred to that preliminary ruling as a “corporate death penalty.” That ruling did come across as a pre-judgment before the trial began.
There are some takeaways that we can expect from this trial. CFO Dive reports that Trump’s real estate empire operated in a manner that’s “far from routine.” It’s worth noting that Engoron ruled that Trump’s accountants’ disclaimers that they hadn’t audited the valuation claims don’t matter. Trump’s assertion that some of the valuations of his properties were “worthless” isn’t an out, either. Finally, the discrepancies between the overvaluations and undervaluations may come back to haunt him as well.
This is a developing story, and we’ll keep you updated on new developments.
Join the conversation as a VIP Member