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, U.S., October 25, 2023. Dave Sanders/Pool via REUTERS/File Photo License Rights Acquire
NEW YORK, Nov 6 (Reuters) – Donald Trump is back in a New York courtroom on Monday to take the witness stand in a civil fraud trial that threatens to decimate the real estate empire that built his reputation before he entered in politics.
The former US president, as well as his two grown sons, who testified last week, are likely to face tough questions over questionable accounting practices that a judge has already ruled fraudulent.
New York state attorneys say these methods allowed him to win favorable financing terms by increasing the value of his golf courses, apartment buildings and other assets at a time when many lenders refused to do business with him. Such activity is said to have earned him $100 million and inflated his fortune by $2 billion. Trump has denied wrongdoing.
Unlike the four criminal cases facing the front-runner for the 2024 Republican nomination, this civil trial does not threaten to land him in prison as he tries to return to the White House.
Indeed, Trump built on the experience, using it to solicit campaign donations and claim he was being targeted for his political views.
But it could undermine Trump’s decades-cultivated image as a flamboyant billionaire who shuttles between elegant resorts and premium golf courses bearing his name.
New York Attorney General Letitia 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.
Judge Arthur Engoron has already revoked business certificates for companies that control large parts of his business, although that order has been stayed on appeal.
Evidence presented in the trial so far has revealed that company officials, including Trump’s sons Eric and Donald Jr., were involved in attempts to manipulate the valuation of trophy properties such as the Mar-a-Lago estate in Florida.
One witness, his former lawyer and mediator Michael Cohen, testified that Trump directed him to review financial statements to increase his net worth.
Trump’s anger was clear throughout.
Although his presence has not been required in court until today, he has already appeared several times to fiercely watch the trial from the defendant’s table and to complain to television cameras outside the courtroom that Engoron, James and others involved in the case, are politically motivated. He also maintains a steady stream of criticism on social media.
That earned him $15,000 in fines for twice violating a restraining order barring him from criticizing court staff. Trump’s lawyers were outraged by that order and indicated they might use it as the basis for an appeal, but Engoron on Friday expanded it to include them.
Trump’s packed legal calendar threatens to take him out of the campaign for most of next year.
His campaign used the trial as a fundraising opportunity, writing early on Oct. 2 that he was defending his family and reputation from New York Democrats, who he called “corrupt tyrants.”
Republican voters don’t seem to be bothered by his legal woes, as polls show him with a commanding lead in the race for the party’s presidential nomination.
The trial was originally scheduled to last until early December, but could end sooner as the state calls its final witnesses this week. It is unclear how many witnesses the defense will call.
Trump’s daughter Ivanka is scheduled to testify Wednesday, although she is not a defendant in the case.
Reporting by Jack Quinn; Written by Andy Sullivan; Editing by Scott Malone and Nick Zieminski
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