Trump tangles with judge, complains of treatment at NY fraud trial
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[November 07, 2023]
By Luc Cohen and Jack Queen
NEW YORK (Reuters) -Donald Trump complained of unfair treatment in
defiant and rambling testimony on the witness stand at the civil fraud
trial about his New York business on Monday, prompting the judge at one
point to threaten to cut his testimony short.
Under questioning about his company's accounting practices, the former
U.S. president clearly aggravated Judge Arthur Engoron, who is weighing
whether to impose hundreds of millions of dollars in fines and other
penalties that could hobble the real estate empire that vaulted Trump to
prominence.
Engoron warned Trump, the frontrunner for the Republican nomination in
the 2024 election, that he might remove him from the witness stand if he
did not answer questions directly.
"Can you control your client?" Engoron asked Trump's lawyer, Christopher
Kise. "This is not a political rally. This is a courtroom."
Trump's testimony wrapped up in midafternoon. His daughter Ivanka is due
to testify on Wednesday, though she is not a defendant in the case.
Over roughly four hours on the witness stand, Trump often avoided direct
answers, instead bragging about his properties and his wealth. He
accused New York Attorney General Letitia James, an elected Democrat, of
targeting him to further her political career and accused Engoron of
lowballing the value of his properties.
"I think this case is a disgrace. Many people are leaving New York
because of exactly this kind of thing," he said. "It's election
interference because you want to keep me in the courthouse."
Both Engoron and Trump repeatedly raised their voices as the judge
sought to prevent Trump from using the court to air his grievances.
"I'm not here to hear what he has to say. I'm here to hear him answer
questions. Sit down already," Engoron told Alina Habba, another one of
Trump's lawyers.
Habba later told the judge that they would ask for a mistrial, though it
is unlikely they will be successful.
Engoron has already found Trump, his adult sons and 10 of his companies
liable for fraud, describing in scathing terms how the defendants made
up valuations. Engoron's ruling could strip Trump's control of some of
his best known properties, though that order is on hold during appeal.
APARTMENT TOWERS, GOLF COURSES FOCUS OF TRIAL
Amid the fireworks, Trump acknowledged that he was involved in some of
the documents at the heart of the fraud case, in which New York state
lawyers say his company pumped up the value of apartment towers, golf
courses and other assets to win better financing terms.
Trump acknowledged that those estimates were not always accurate. Some
properties, like his Mar-a-Lago estate and Doral golf course in Florida
were undervalued, he said, while others like his Trump Tower residence
in New York and his Seven Springs estate north of the city were
overvalued.
He said that should not matter because the estimates included language
saying they might not be accurate and his lender Deutsche Bank cared
more about the amount of cash he had on hand. "I've had a lot of cash
for a long time," Trump said.
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Former U.S. President Donald Trump attends the Trump Organization
civil fraud trial, in New York State Supreme Court in the Manhattan
borough of New York City, U.S., November 6, 2023. Jabin Botsford/Pool
via REUTERS
New York state lawyers said in their lawsuit that the estimates
misled lenders and insurers, earning him more than $100 million and
exaggerating his wealth by $2 billion.
Trump accused legal authorities of paying unduly close attention to
his business after he won the 2016 presidential election.
"This is a very unfair trial, very, very unfair, and I hope the
public is watching," he added later.
At one point, Engoron asked Kise to take Trump to the back of the
courtroom and "explain the rules."
"The former and again soon to be president of the United States
understands the rules," Kise responded.
EX-LAWYER'S TESTIMONY ON VALUATIONS
Unlike the four criminal cases Trump faces, this civil trial does
not threaten to put him in prison as he mounts a comeback White
House bid.
James is seeking $250 million in fines, as well as restrictions that
would prevent Trump and his sons Eric and Donald Jr. from doing
business in their home state.
She said after Trump's testimony that he would face penalties for
what she called "repeated and consistent fraud against the citizens
of New York."
Trump's former lawyer and fixer Michael Cohen has testified that
Trump directed him to doctor financial statements to boost his net
worth. Evidence also shows that Eric and Donald Jr., who ran the
Trump Organization during their father's 2017-2021 White House
stint, manipulated the value of trophy properties including Mar-a-Lago.
In testimony last week, Trump's sons said they were unfamiliar with
the details of the valuation documents and blamed accountants for
any errors.
Trump likewise sought to blame accountants but also acknowledged
that he was involved in valuation efforts. "I would maybe on
occasion have some suggestions," he said.
Asked who at the company was responsible for preventing fraud, the
elder Trump said: "Um, everybody."
Engoron has fined Trump $15,000 for twice violating a limited gag
order that prevents him from criticizing court staff. He expanded it
on Friday to cover Trump's lawyers as well.
Trump's crowded legal calendar threatens to take him off the
campaign trail for much of next year. Nevertheless, opinion polls
show he holds a commanding lead in the Republican nominating
contest.
(Reporting by Jack Queen and Luc Cohen; Writing by Andy Sullivan;
Editing by Scott Malone, Lisa Shumaker and Grant McCool)
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