Former President Donald Trump is scheduled to provide pivotal testimony on Monday, a momentous occasion that could significantly impact the future of his business empire in New York. Trump’s testimony is part of the ongoing civil fraud trial initiated by New York Attorney General Letitia James, who is seeking $250 million in damages and the imposition of a prohibition on Trump’s business activities within the state. The core allegation revolves around claims that Trump and his co-defendants engaged in repeated fraud by inflating the value of assets on financial statements to secure more favorable terms for commercial real estate loans and insurance policies.
Although this trial does not involve criminal charges, it has elicited strong reactions from the former president, who has attended the proceedings for multiple days and vehemently denounced it as a politically motivated witch hunt. Prior to the trial’s commencement last month, Judge Arthur Engoron had already ruled that Trump and his co-defendants, including his adult sons, were liable for “persistent and repeated” fraud. The current phase of the trial pertains to determining the extent of damages Trump and his family must pay for the profits accrued through these alleged fraudulent business practices.
Furthermore, the attorney general’s office is endeavoring to substantiate six additional claims: falsification of business records, conspiracy to falsify business records, issuing false financial statements, conspiracy to falsify false financial statements, insurance fraud, and conspiracy to commit insurance fraud.
Monday’s testimony by Donald Trump is a pivotal moment as it provides the first opportunity to observe how he responds to rigorous questioning and serves as a precursor to the four criminal trials he faces in the coming year, while actively campaigning to reclaim the presidency.
Though the trial proceedings are not televised, Trump’s presence as a witness makes it one of the most high-profile events of his 2024 presidential campaign. In this campaign, Trump has frequently cited his legal challenges as a key reason for voters to reinstate him in the White House.
Here’s what to watch for on Monday, as well as what is at stake for Donald Trump:
Trump on the Witness Stand:
Donald Trump has vociferously criticized Attorney General Letitia James for initiating this case, the judge presiding over it, and even the judge’s law clerk, whom he perceives as biased against him. Trump’s conduct during the trial has drawn attention, and he has been fined twice for violating a gag order that prohibited him from discussing the judge’s staff.
All of these attacks and incidents will set the stage for his testimony on Monday, where he will be obliged to respond to questions from the attorney general’s legal team. These questions are expected to delve into the intricate details of Trump’s personal financial statements and valuations of his real estate properties.
The manner in which Trump responds to this interrogation will be closely scrutinized, especially given his proclivity for lengthy rhetoric and his history of spreading falsehoods, both of which could pose challenges while testifying under oath. While Trump’s responses within the courtroom are somewhat restrained, he retains the freedom to express himself without restraint when speaking to the media immediately outside the courtroom.
When Trump has attended the trial, he has frequently taken the opportunity to address the cameras and express his disdain for the trial. However, these actions have landed him in hot water, as he was previously dragged into court for violating the gag order by accusing a person associated with the judge of bias during one of these impromptu statements. The judge fined Trump $10,000 for this violation, deeming his testimony “not credible.”
Why This Case Matters to Trump:
The civil case is of paramount importance to Donald Trump because it strikes at the core of his image as a billionaire real estate magnate. The New York attorney general alleges that the former president inflated his net worth to save hundreds of millions of dollars. Furthermore, the case has far-reaching implications for the Trump Organization, as Letitia James seeks to prevent Trump from engaging in business activities within the state and dissolve his companies.
The attorney general has accused Trump, his adult sons, the Trump Organization, and several company executives of inflating Trump’s net worth by as much as $3.6 billion to secure better terms for commercial real estate loans and insurance policies. An expert witness for the attorney general asserted that the gains from these alleged practices amounted to $168 million.
In response, Trump’s legal team has contested these allegations, asserting that asset valuations are highly subjective. They have also criticized the trial proceedings in Judge Engoron’s courtroom, alleging bias against the former president and indicating their intent to appeal.
During last week’s proceedings, Donald Trump Jr. and Eric Trump provided their testimonies, distancing themselves from the preparation of the president’s annual “statements of financial condition,” which are at the center of the allegations regarding inflated property values.
Michael Cohen, Trump’s former lawyer, testified that Trump instructed him and Allen Weisselberg, the former chief financial officer of the Trump Organization, to inflate property values, although he later contradicted himself by claiming Trump had not explicitly directed him to do so, but rather implied it. Weisselberg, on the other hand, testified that no such meeting ever occurred.
Despite Trump’s assertion that Cohen’s contradictions exonerate him, Judge Engoron unequivocally denied a motion from Trump’s legal team to dismiss the case, citing substantial evidence beyond Cohen’s testimony.
Trump’s Properties Under Scrutiny:
A significant portion of the questioning directed at Trump will revolve around the properties that form the cornerstone of his business empire. This includes properties such as the 40 Wall Street building in New York, the Trump National Doral Miami golf course and resort, the Trump International Hotel & Tower in Chicago, and the Old Post Office project in Washington, DC. The attorney general has also alleged that Trump inflated the value of his triplex apartment in Trump Tower.
Perhaps most crucially, the tax status and value of Trump’s Mar-a-Lago resort in Florida are central to the case. Trump has repeatedly cited a line in the judge’s September ruling that assessed Mar-a-Lago’s value at $18 million to challenge the decision. In court, Trump’s attorney, Alina Habba, argued that Mar-a-Lago would command at least $1 billion on the market, emphasizing that property values are subject to what buyers are willing to pay.
The $18 million valuation, based on a tax assessor’s appraisal, has faced scrutiny from real estate experts. However, Judge Engoron clarified that he was not determining the property’s value in his ruling. Trump is expected to challenge numerous claims of inflated property values during his testimony.
Testimony from the Entire Trump Family:
Donald Trump’s testimony follows the appearances of his adult sons, Donald Trump Jr. and Eric Trump, last week. Ivanka Trump is scheduled to testify on Wednesday, after initially appealing the judge’s order requiring her testimony. However, Ivanka is not a co-defendant in the case, as an appellate court dismissed her from the proceedings due to the statute of limitations.
It remains uncertain whether Trump’s legal team will cross-examine Donald Trump following his testimony in response to questions from the attorney general’s team. The expectation is that Trump’s testimony will occur primarily on Monday, although it may potentially extend into Wednesday, as the court is closed on Tuesday for Election Day.
