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Cohen, who cut ties with Trump five years ago, will undergo more
cross-examination by Trump's lawyers determined to undermine his
credibility.
Cohen testified on Tuesday that Trump "arbitrarily" inflated the
value of the Trump Organization's real estate assets to secure
favorable insurance premiums. Cohen said he doctored financial
statements so the property values matched "whatever number Mr.
Trump told us."
The insider testimony could bolster New York Attorney General
Letitia James' argument that Trump, his company and several of
its executives inflated property values. The case could break up
Trump's business empire.
Trump, the frontrunner for the 2024 Republican presidential
nomination, has denied wrongdoing and defended the valuations of
his properties, calling the case a "fraud" and a political witch
hunt.
He and his lawyers have repeatedly called Cohen a "liar" and are
likely to use his admitted history of deceit to challenge his
testimony.
Cohen in 2018 pleaded guilty to a campaign finance violation and
lying to Congress about Trump's business dealings in Russia,
which he testified on Tuesday he did at Trump's direction.
In about a half hour of cross-examination on Tuesday, Trump
lawyer Alina Habba asked Cohen questions about the statement he
gave in court in connection with his guilty plea to cast him as
a convicted felon and serial liar.
Before the trial began on Oct. 2, Justice Arthur Engoron found
that Trump fraudulently inflated his net worth and ordered the
dissolution of companies that control crown jewels of his real
estate portfolio, including Trump Tower in Manhattan. That
ruling is on hold while Trump appeals.
The trial largely concerns damages. James is seeking at least
$250 million in fines, a permanent ban against Trump and his
sons Donald Jr and Eric from running businesses in New York and
a five-year commercial real estate ban against Trump and the
Trump Organization.
Engoron last week fined Trump $5,000 for violating a gag order.
(Reporting by Jack Queen and Luc Cohen in New York; Editing by
Noeleen Walder and Bill Berkrot)
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