(NEW YORK) — Former President Donald Trump is on trial in New York in a $250 million civil lawsuit that could alter the personal fortune and real estate empire that helped propel Trump to the White House.
Trump, his sons Eric Trump and and Donald Trump Jr., and other top Trump Organization executives are accused by New York Attorney General Letitia James of engaging in a decade-long scheme in which they used “numerous acts of fraud and misrepresentation” to inflate Trump’s net worth in order get more favorable loan terms. The trial comes after the judge in the case ruled in a partial summary judgment that Trump had submitted “fraudulent valuations” for his assets, leaving the trial to determine additional actions and what penalty, if any, the defendants should receive.
The former president has denied all wrongdoing and his attorneys have argued that Trump’s alleged inflated valuations were a product of his business skill.
Here’s how the news is developing. All times Eastern:
Dec 10, 5:05 PM EST
Trial to resume on Tuesday
Donald Trump’s civil fraud trial will resume on Tuesday, following the announcement from the former president that he was canceling his plans to testify Monday in his own defense.
“Donald Trump already testified in our financial fraud case against him,” New York Attorney General Letitia James said in a statement Sunday afternoon following Trump’s announcement. “Whether or not Trump testifies again tomorrow, we have already proven that he committed years of financial fraud and unjustly enriched himself and his family. No matter how much he tries to distract from reality, the facts don’t lie.”
The trial will continue Tuesday with the cross-examination of the defense’s accounting expert Eli Bartov. Once Bartov concludes his testimony, Trump’s defense case is expected to rest.
Lawyers for the New York attorney general plan to present a brief rebuttal case, which might conclude as early as Tuesday.
Closing arguments in the case are scheduled for Jan. 11, and a written decision in the case may come in late January.
Dec 10, 3:45 PM EST
Trump cancels plans to testify Monday
Donald Trump has canceled his plans to testify in his own defense in his civil fraud trial, the former president said in a statement Sunday.
“I will not be testifying on Monday. MAGA!” Trump wrote on social media.
Trump cited the testimony of his expert witnesses, the use of what he called his “ironclad disclaimer clause,” and alleged bias by the judge overseeing the case as reasons he no longer planned to testify.
“I HAVE ALREADY TESTIFIED TO EVERYTHING & HAVE NOTHING MORE TO SAY OTHER THAN THAT THIS IS A COMPLETE & TOTAL ELECTION INTERFERENCE,” he wrote.
The former president was due to return to the courtroom Monday after testifying last month in the state’s case.
Dec 08, 8:48 AM EST
Defense’s accounting expert to return to witness stand
The defense’s accounting expert, Eli Bartov, is scheduled to return to the witness stand for a second day of testimony in Donald Trump’s civil fraud trial.
During a full day of testimony yesterday, the New York University professor offered a full-throated endorsement of Trump’s statements of financial condition that are at the heart of the attorney general’s case, saying, “I’ve never seen a statement that provides so much detail and is so transparent as these statements.”
Of discrepancies like Trump overvaluing his Trump Tower penthouse by $100 million in 2012, Bartov characterized it as a mistake and not fraud.
Trump, in attendance at the trial yesterday, told reporters, “He found absolutely no fraud, accounting fraud of any kind. This is a highly respected man. I don’t know him, but he’s an expert witness.”
Trump is not expected to attend court today for Bartov’s cross examination, when defense attorneys are expected to scrutinize his conclusions and his motives for testifying, including over $500,000 in compensation for his testimony.
Dec 07, 6:36 PM EST
Trump credits trial for boosting his poll numbers
Donald Trump, exiting court at the conclusion of Thursday’s testimony, told reporters that New York Attorney General Letitia James’ civil fraud case against him is a “disgrace.”
“There was no problem with the loans. The bank was really happy, they testified. Everything was perfect, and it’s a disgrace that this case goes forward,” Trump said.
His legal spokesperson, Alina Habba, accused the attorney general’s team of hypocrisy for criticizing defense expert Eli Bartov, who testified as a state witness after then-New York Attorney General Barbara Underwood sued Exxon Mobil in 2018 for allegedly defrauding investors. The suit, which James took over when she became New York attorney general in 2019, was unsuccessful.
“We just listened to testimony from a man who has such distinct recognition as an accounting expert that even Letitia James and the OAG team used him themselves as an accounting expert,” Habba said. “Today when he was on the other side, they spent the entire day objecting, because he was giving testimony that didn’t suit their claims.”
Trump, meanwhile, boasted to reporters about “leading by about 40 points” in the Republican presidential primary, which he said was partially driven by the civil trial against him.
“It’s driving up my polls because the people of our country get it,” Trump said. “My poll numbers are the highest I’ve ever had.”
Bartov is set to continue his testimony on Friday, with Trump scheduled to take the stand as the defense’s final witness on Monday.
Dec 07, 5:06 PM EST
‘There is no fraud here,’ accounting expert testifies
If Donald Trump was a student in Eli Bartov’s class, his statements of financial condition would earn him an “A,” the New York University professor said on the stand.
“I’ve never seen a statement that provides so much detail and is so transparent as these statements,” Bartov said, praising the “awesome amount of information” in the financial documents that are at the center of the New York attorney general’s case against Trump.
“There is no fraud here,” Bartov said flatly.
Despite his effusive praise for the statements, the professor attempted to underplay the significance of the documents, emphasizing that lenders would be expected to do their own valuations to decide about lending to Trump. Deutsche Bank’s credit memos — which regularly marked down Trump’s asset values by as much as 50% — proved that the banks used additional information to independently scrutinize Trump’s financial statements, according to Bartov.
“It is impossible to argue — it is really absurd to argue — that Deutsche Bank or any bank or any lender would make lending decisions based on the SOFC,” Bartov said of Trump’s statement of financial condition. “This should close the book on this case.”
“Everywhere you look, you see this is simply an absurd argument,” Bartov said.
Dec 07, 3:07 PM EST
‘Gotta lose some weight,’ Trump says, examining sketch
During testimony, Donald Trump has been sitting at the defense counsel table with few items other than an unopened, Trump-branded water bottle and a stack of sticky notes.
But during breaks in testimony, he’s taken a page from his son Donald Trump Jr., who chatted with court sketch artist Jane Rosenberg when he testified last month.
The former president has done the same, chatted up the court’s sketch artists during two breaks in testimony.
Rosenberg said that when Trump surveyed her rendering of him, he offered a simple, “Nice.”
Trump also examined a rendering by sketch artist Isabelle Brourman.
“Wow, amazing,” Trump said, according to Brourman. “Gotta lose some weight.”
Dec 07, 1:52 PM EST
Defense expert tells AG lawyer, ‘You ought to be ashamed of yourself’
Donald Trump’s accounting expert snapped at a lawyer for the New York attorney general after the lawyer suggested his opinion was bought by the defense team.
As accounting expert Eli Bartov was testifying about Trump’s use of disclaimers in his financial statements, state attorney Kevin Wallace interjected, saying, “This is pure speculation from someone they hired to say whatever it is they want.”
Still in the witness box, Bartov began yelling at Wallace about the comment as Trump sat watching a few feet away.
“You make up allegations that never existed,” Bartov shouted. “I am here to tell the truth. You ought to be ashamed of yourself for talking like that.”
Bartov, in his testimony, said that Trump’s use of disclaimers functioned “just like the warning from the surgeon general on a box of cigarettes.”
The accounting expert said that Trump’s disclaimers clearly flagged to his lenders that they should conduct their own due diligence regarding the figures, rather than rely on them at face value. Witnesses from Deutsche Bank — Trump’s primary lender during the 2010s — previously testified that they conducted due diligence and significantly undercut the valuations Trump provided in his financial statement when deciding to offer him loans.
“I never saw anything that is clearer than that,” Bartov said about the language in Trump’s disclaimer clause. “Even my nine-year-old granddaughter Emma would understand this language.”
In his pretrial summary judgment ruling, Judge Engoron dismissed Trump’s argument that disclaimer clauses protect him from allegations of fraud. While multiple defense witnesses have attempted to rebut Engoron’s opinion about Trump’s use of disclaimer clauses, the judge has signaled he stands by his opinion.
“My summary judgment is the law of the case on the legal effect of this paragraph or these sentences,” Engoron said in response to Bartov’s testimony, adding that the clauses “would not insulate the client.”
Nevertheless, Trump attorney Chris Kise requested that Engoron reconsider his finding.
“I am fairly liberal in reconsidering my opinions,” Engoron said before Bartov resumed his testimony.
Dec 07, 12:14 PM EST
Expert ‘found absolutely no fraud,’ Trump says
During a short break in testimony, Donald Trump applauded the findings of accounting expert Eli Bartov, who testified that he found no evidence of accounting fraud in Trump’s statements of financial condition.
“He reviewed fully the documents that this horrendous attorney general has put forward, and he found absolutely no fraud, accounting fraud of any kind,” Trump told reporters.
Trump, however, acknowledged that Judge Engoron might not be swayed by Bartov’s testimony.
“We will probably go forward and I’m sure nothing will have any bearing on what this judge does,” Trump said.
Dec 07, 11:59 AM EST
Trump penthouse misstatement was not fraud, expert says
Donald Trump’s overstatement of the value of his Trump Tower penthouse apartment was a mistake, according to accounting expert Eli Bartov — but not fraud.
“The price was inflated. There is no question about it,” Bartov said about Trump more than doubling the value of his triplex apartment on his statement of financial condition, from $80 million to $180 million, between 2011 and 2012.
Bartov chalked up the mistake to the inevitable errors that occur in the process of compiling a statement of financial condition. He said that if Trump meant to commit fraud by inflating the value of his apartment, he would have made some effort to conceal it.
“There is no evidence here of concealment,” Bartov said. “It’s true this is an error. But it is no fraud.”
Bartov instead blamed Trump’s external accounting firm for failing to catch the obvious error.
“They submitted to him the supporting documents. Any person that had one year experience in auditing … will immediately see there is a jump from 80 million to 180 million,” he said.
Dec 07, 11:45 AM EST
No merit to NY AG’s complaint, defense expert says
The New York attorney general’s civil fraud complaint against former President Trump lacks merit, a defense expert in accounting testified.
“My main finding is that there is no evidence whatsoever for any accounting fraud,” New York University professor Eli Bartov said. “My analysis shows the statements of financial condition for all the years were not materially misstated.”
Bartov’s testimony bolstered the defense’s contention that non-audited financial statements, like Trump’s, are unreliable and represent only a first step in analysis.
“You cannot use the raw numbers in the statements as the basis for making decisions,” Bartov said. “If you do that, you are likely to reach the wrong decision.”
Judge Engoron asked Bartov whether the attorney general’s complaint had no merit.
“This is absolutely my opinion,” Bartov replied.
“And why is that?” defense attorney Jesus Suarez jumped in to ask.
“There is not a single reference to a specific provision of GAAP that was violated,” Bartov said, referring to the generally accepted accounting principles.” “If you allege there was an accounting violation, they have to tell us what provision was violated.”
State attorneys objected to the relevance of Bartov’s opinion, but Judge Engoron denied the objection.
Dec 07, 10:39 AM EST
Court affirms pausing dissolution of Trump Organization
A panel of five appellate judges has affirmed a judge’s Oct. 6 decision that paused the dissolution of the Trump Organization.
Judge Peter Moulton issued a ruling during the first week of the trial pausing the immediate cancellation of Donald Trump’s business certificates, as ordered by Judge Arthur Engoron in his partial summary judgment ruling on the eve of the trial.
Trump’s attorneys argued in favor of the stay of enforcement action until the end of the trial, and the New York attorney general supported their argument.
Today’s ruling formally pushes a decision on the fate of the Trump Organization into the new year, when Engoron issues his final ruling in the case.
Dec 07, 10:17 AM EST
Trump in attendance for accounting expert’s testimony
Donald Trump is back in court as a spectator, marking the first time the former president has attended the proceeding in over a month.
Trump entered the courtroom alongside his legal spokesperson Alina Habba and his son Eric Trump, who canceled his testimony that was initially scheduled for yesterday. Notably absent from the courtroom is New York Attorney General Letitia James.
Previewing today’s testimony from New York University accounting professor Eli Bartov, Trump said on his way into the courtroom that he has “one of the greatest experts in the country” taking the stand today.
“We did nothing wrong. There were no victims. The bank loves us,” Trump said.
Dec 07, 8:34 AM EST
Donald Trump set to attend trial today
Donald Trump is set to return to his civil fraud trial as a spectator today, marking the first time the former president has attended the proceeding in over a month.
Trump has attended eight of the trial’s 41 days, including when he testified as the last witness in the state’s case on Nov. 6. He is scheduled to return to the stand as the final witness in the defense’s case on Monday.
This morning, Trump’s lawyers will call New York University professor Eli Bartov as their second-to-last witness.
Trump attorney Chris Kise cited Bartov’s testimony in his opening statement as vital to proving that Trump fully complied with all accounting rules and regulations when he submitted his statements of financial condition, which underpin the attorney general’s allegations in the case.
“The statements are … the beginning, not the end, of a highly complex valuation process,” Kise said.
Dec 06, 4:42 PM EST
Potential for violence justifies gag order, judge’s lawyer argues
Judge Arthur Engoron’s attorney argues in a new court filing that the willingness of Donald Trump’s followers “to engage in violence to show their support” for Trump justifies the limited gag order in the former president’s civil fraud trial.
Trump filed an Article 78 proceeding against Engoron earlier this month to remove the gag orders the judge imposed prohibiting him from commenting on the judge’s staff, but a panel of judges vacated a temporary stay of the gag orders last week.
“It is undisputed that Mr. Trump has an inordinate ability to draw attention, fervor, and animosity to those he singles out for attention. Whether he seeks it or not, some of Mr. Trump’s followers are willing to engage in violence to show their support,” said Engoron’s attorney Michael Suidzinski, an assistant deputy counsel with the New York State Office of Court Administration.
Engoron’s attorney questioned Trump’s need to speak about the judge’s staff during the trial or his campaign, adding that the gag order still permits him to criticize Engoron, the attorney general, the case itself, witnesses, and the entire judicial process.
“It is unclear, however, how his ability to talk about Justice Engoron’s court staff is necessary for his campaign when this country faces a number of issues more worthy of debate,” Suidzinski wrote.
“Given the real and demonstrated likelihood of harm that could come to Justice Engoron’s court staff if the gag orders were annulled, Justice Engoron’s legitimate and justifiable interest in preventing such harm greatly outweighs the de minimis interference to Mr. Trump’s rights,” Suidzinski wrote.
Dec 06, 12:07 PM EST
Court is off today after Eric Trump’s testimony is called off
Court is not in session today after the defense yesterday called off the testimony of Eric Trump, who was scheduled to be today’s lone witness.
Donald Trump’s legal spokesperson, Alina Habba, said that testimony from Eric Trump was no longer needed because the court has heard sufficient testimony from defense experts and Deutsche Bank executives.
Eric Trump, who took the stand in the state’s case last month, was scheduled to testify for the defense today — but defense lawyers abruptly called off his testimony yesterday in order to streamline their case, defense attorney Clifford Robert said in court yesterday.
“Although Eric Trump was certainly prepared to testify again, his testimony is no longer necessary. He has already testified fully and well in the case,” Habba said.
In a social media post Tuesday night, Donald Trump said he directed Eric not to testify.
“I told my wonderful son, Eric, not to testify tomorrow at the RIGGED TRIAL,” Trump wrote.
Dec 06, 11:02 AM EST
Trump confirms he’ll testify Monday
Former President Trump has confirmed he plans to testify as a defense witness on Monday.
“I will be testifying on Monday,” Trump wrote on his social media platform.
Court is not in session today, but Trump is expected to be in attendance tomorrow.
Trump’s plan to testify was thrown into question on Tuesday after Judge Arthur Engoron denied a request from the defense to delay the testimony to accommodate Trump’s effort to appeal the limited gag order in the case that prohibits him from commenting on the judge’s staff.
“He is not capable of fully testifying because he is subject to the gag order,” Kise said, arguing for a delay.
“Absolutely not. No way, no how. It’s a nonstarter,” Engoron said in response to the defense’s request for a delay. “If he is going to testify, it’ll be Monday, and that’s that.”
While Trump’s lawyers have attempted to appeal the limited gag order to a higher court, their application to expedite the appeal was denied on Monday, ensuring that the limited gag order will be in place when Trump testifies.
During a campaign stop in Iowa, Trump repeated his claims that his opponents are trying to silence him, describing the gag order as an “honor.”
“In many ways, it’s an honor because if they wanted to hear me speak, they wouldn’t do the gag order,” Trump said.
When asked if he’s concerned about his scheduled court testimony, Trump said, “No, not at all.”
Trump is set to be the final witness for the defense case when he testifies on Monday.
Dec 05, 5:04 PM EST
Defense expert quotes John Lennon, compares Trump to MLK
Prior to his brief cross-examination, real estate valuation expert Lawrence Moens quoted John Lennon’s “Imagine” and compared Donald Trump to Martin Luther King Jr. at the conclusion of his direct testimony.
“You may say I am a dreamer, but I’m not the only one,” Moens said, quoting the “Imagine” lyrics before comparing Trump to Thomas Jefferson and Martin Luther King Jr.
“He’s a dreamer for sure. If you have a dream and are a great American, I don’t think that’s a bad thing,” Moens said of Trump, whose Mar-a-Lago estate he praised as “something breathtaking” and “amazing to see.”
Moens’ cellphone went off during his testimony, and he briefly interrupted his direct examination to answer a call.
“I’ll call you right back … love you,” Moens said in a quiet tone as Judge Engoron watched in disbelief.
Moen apologized to the judge, explaining that the call was from his elderly father.
Court was adjourned for the day after Moens stepped off the witness stand.
Dec 05, 4:45 PM EST
Mar-a-Lago valuation expert is also Mar-a-Lago member
During a short cross-examination of the defense’s real estate valuation expert, Lawrence Moens, state attorney Kevin Wallace attempted to highlight flaws in Moens’ analysis that valued Mar-a-Lago at $1.2 billion in 2021.
Wallace noted that Moens’ analysis added over $100 million in membership dues to the value of the property, while Trump’s own statements of financial conduction didn’t include the membership fees since they’re refundable.
“Some get paid back, and some are nonrefundable,” Moens said in response. “I don’t know what their methodology is in those numbers.”
Wallace also asked if Moens had a membership in the club he had been paid to value.
“Are you a member at the club?” Wallace asked.
“I am,” Moens said, adding that he joined in 1995 or 1996.
“I don’t go too often. I don’t like clubs,” he said.
Moens described his process for valuing properties as comparable to a baker making a cake by taste, rather than a recipe. By his own admission, the process was not replicable or scientific.
“You’re not running a process that is recreatable … is that fair?” Wallace asked.
“That’s fair,” Moens said.
Like during his direct examination, Moens appeared confident and playful on the stand, even taking a job at the profession of a colleague mentioned in an email.
“I think he is still a liar — I mean a lawyer,” Moens said. “Sorry, I apologize, it was really low.”
Dec 05, 3:51 PM EST
Eric Trump will not be called as defense witness
Defense attorney Clifford Robert said the defense team was able to “streamline” their case and cut Eric Trump from their witness list.
After being called to the stand by the state last month, Eric Trump had been scheduled to testify for the defense on Wednesday, but now he will not appear.
Trump lawyer Chris Kise also requested that Judge Engoron postpone Donald Trump’s testimony until the New York Court of Appeals rules on Trump’s appeal of the case’s gag order.
“He is not capable of fully testifying because he is subject to the gag order,” Kise said.
Engoron flatly denied the request to delay Trump’s testimony, which is scheduled for Monday.
“Absolutely not. No way, no how. It’s a nonstarter,” Engoron said. “If he is going to testify, it’ll be Monday, and that’s that.”
Dec 05, 3:03 PM EST
Defense expert says Mar-a-Lago was worth $1.2 billion
Donald Trump’s Mar-a-Lago Club was worth more than $1.2 billion in 2021 — roughly double the value listed in Trump’s statement of financial condition — according to defense expert Lawrence Moens.
Describing Mar-a-Lago as a castle nestled on 17.6 acres of waterfront property, Moens said he determined the value by considering nearby properties and adding the total value of the club’s 500 memberships, which in 2021 cost $350,000 each.
Between 2011 and 2021, Moens’ analysis found that Trump undervalued Mar-a-Lago in his statements of financial condition — but his analysis appeared to be based on Trump being able to sell the property to an individual to use it as a private residence, which the New York attorney general says Trump is prohibited from doing based on a 2002 deed he signed that would “forever extinguish their right to develop or use the Property for any purpose other than club use.”
Judge Engoron only qualified Moens as an expert on the value of residential real estate.
Moens spoke with confidence about his ability to value real estate in Palm Beach, saying that he has sold billions of dollars of real estate since his first sale as a broker in 1982. Asked if any broker has sold more Palm Beach real estate than he has, Moens replied, “They don’t exist.”
“I am on the front lines everyday of selling properties, and I have a pretty good handle of what is going on currently in the market,” Moens said.
He later added, “My numbers are usually right.”
Moens also put together a seven-minute promotional video about Mar-a-Lago, which was played during his testimony. Set to relaxing music, the video included high-resolution drone shots and dramatic panning shots of the property’s amenities. After the video played, Moens highlighted details such as hand-carved stones, gold decorations that cost millions to construct, and other details that required years of work from tradesmen.
“I invited the attorney general’s office to come see it anytime. The offer still stands,” Moens said. “I will make sure he is not there when you come,” he said of Trump.
Engoron appeared attentive to Moen’s testimony — but once Moens left the courtroom, he indicated that he wasn’t as concerned about Mar-a-Lago’s specific value as he was about whether it was misrepresented.
“I see this case about the documents — whether the defendants used false documents when transacting business,” Engoron said. “I am not trying to figure out what the value is … I don’t necessarily consider it relevant.”
Dec 05, 12:31 PM EST
Mar-a-Lago would be residence if club was abandoned, expert says
Defense expert John Shubin attempted to explain that a 1993 agreement preserved Donald Trump’s right to sell his Mar-a-Lago social club as a private residence.
The testimony came after Judge Engoron prevented Shubin from sharing his own conclusion about whether Mar-a-Lago was a residence, leading Shubin to read into the record several documents involving the issue.
Shubin suggested that a 1993 agreement between Trump and the town of Palm Beach included a provision that Trump’s property would revert from a social club to Trump’s private residence if the club was ever abandoned, despite Trump’s 2002 deed restricting the property’s use to a social club.
Shubin also read into the record documents related to a 2021 Town of Palm Beach town meeting concerning whether Trump could continue to live at Mar-a-Lago as his residence.
“In sum, it is argued that Mar-a-Lago is either a private residence or a club, but cannot be both,” Palm Beach Town Attorney John C. Randolph wrote in a report read by Shubin.
“If he is a bona fide employee of the Club, absent a specific restriction prohibiting former President Trump from residing at the club, it appears the Zoning Code permits him to reside at the Club,” Randolph’s report concluded.
According to Shubin, no action was taken by the town after the meeting, suggesting Town officials concluded that Trump had the right to use the club as a residence.
New York Attorney General Letitia James has accused Trump of valuing the property as a residence worth upwards of half a billion dollars in Trump’s financial statements, while treating it as social club worth between $18 million and $28 million for tax purposes.
Dec 05, 11:03 AM EST
‘No prohibition’ on using Mar-a-Lago as residence, expert says
Introduced as an expert on land use, planning, entitlements and zoning, a witness for the defense immediately pushed back on New York Attorney General Letitia James’ chief argument that Trump’s Mar-a-Lago property was restricted to use as a social club — a claim that Judge Engoron called the “ultimate issue on Mar-a-Lago.”
“There is absolutely no prohibition on the use of Mar-a-Lago as a single-family residence,” said defense witness John Shubin.
Engoron barred Shubin from testifying about legal conclusions and immediately sustained an objection from the state regarding the testimony.
“It absolutely is a legal conclusion,” Engoron said, prompting defense lawyer Clifford Robert to unsuccessfully try to rephrase his question.
“Why don’t we just look through the documents and run backwards?” defense lawyer Chris Kise suggested.
Shubin’s testimony runs contrary to evidence presented by state lawyers that Trump signed a 2002 deed that surrendered his right to develop the property “for any purpose other than club use.”
Dec 05, 9:36 AM EST
Defense focusing on value of Mar-a-Lago
Donald Trump’s lawyers plan to call two experts, Lawrence Moens and John Shubin, to testify on Trump’s valuation of his Mar-a-Lago property in Palm Beach, Florida.
Moens is a well-known real estate broker in Palm Beach, and Shubin is an expert on deeds and land restrictions.
The value of the property has been bitterly contested by Trump’s lawyers since the start of the trial, after Judge Arthur Engoron, in his pretrial partial summary judgment determined that Trump overvalued the property by at least 2,300%. When Trump testified in the trial in November, he repeatedly lashed out at Engoron for what he called a “crazy” assessment of the property.
“He said in his statement that Mar-a-Lago is worth $18 million and it’s worth 50 times to 100 times more than that, and everybody knows it. And everybody is watching this case. He called me a fraud and he didn’t know anything about me,” Trump said on the stand.
According to evidence shown at trial, Trump agreed in a 2002 deed to “forever extinguish [his] right to develop or use the Property for any purpose other than club use.” While Trump Organization executives were aware of the limited use of the property, they allegedly valued the property as a residence in Trump’s financial statements while treating it as a social club for tax purposes, according to New York Attorney General Letitia James.
In Trump’s statements of financial condition, he valued the property between $426 million and $612 million, despite a local tax assessor appraising the market value of the property between $18 and $27 million. Engoron, in his summary judgment ruling, wrote that James had proven that Trump was liable for a false valuation of the property.
Trump has repeatedly argued that Engoron misunderstood the purpose of a tax assessment, going as far as to call Engoron’s finding “fraud.”
“Are you paying taxes on an $18 million valuation of Mar-a-Lago or $1.5 billion?” state attorney Kevin Wallace asked Trump during his direct examination.
“You know that assessments are totally different from the valuation of property,” Trump responded.
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