US Markets
Monday, October 2nd, 2023 8:14 pm EDT
Key Points
- The $250 million civil fraud trial has commenced, potentially resulting in a permanent ban on Donald Trump from conducting business in New York.
- Donald Trump is personally present in the Manhattan Supreme Court during the trial.
- New York Attorney General Letitia James has accused Trump, two of his adult children, the Trump Organization, and its top officials of a prolonged financial fraud scheme. The allegations include misstating real estate property values by billions of dollars in business records to secure favorable loans, insurance terms, and tax benefits.
The first witness, former Mazars USA partner Donald Bender, began testifying in Donald Trump’s $250 million civil fraud trial in New York. Bender estimated that he spent 45% to 55% of his work time on Trump-related tasks from 2011 until his retirement, including working on Trump’s tax returns and corporate entities controlled by Trump and his children.
The trial began with tensions as Trump’s attorney, Christopher Kise, clashed with the judge, and Trump expressed frustration during the proceedings. Last week, Manhattan Supreme Court Judge Arthur Engoron ruled that Trump and other defendants were liable for fraud claims, canceling their New York business certificates.
The trial is expected to conclude in late December, with Engoron deciding the defendants’ liability for six other claims. The Attorney General’s lawyer, Kevin Wallace, argued that Trump’s financial statements from 2011 to 2021 were false and misleading, presenting video clips of key witnesses, including Trump, former CFO Allen Weisselberg, and former attorney Michael Cohen.
Kise countered, claiming there was no intent to defraud and that the loans secured by Trump’s business were successful and profitable, benefiting banks substantially. New York Attorney General Letitia James alleges that Trump and others misrepresented property values to obtain favorable loans, insurance terms, and tax benefits and seeks to bar them from running businesses in New York.
Before the trial, Trump labeled it a “witch hunt” and insisted he had done nothing wrong. Ivanka Trump was removed from the case earlier due to the statute of limitations, while Donald Trump Jr. and Eric Trump remain as defendants. James emphasized the importance of equal application of the rule of law, regardless of one’s wealth or power.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/10/02/trump-fraud-trial-to-kick-off-in-new-york-court.html
