New York’s top legal official Letitia James fired a warning shot across Donald Trump’s bow on Thursday, just hours before the climax of her yearslong civil fraud case against the former president.
Posting on X, James said “no one is above the law” and that her office would soon present closing arguments against Trump for “significant financial fraud” aimed at unjustly enriching himself and his family.
The high-profile trial in Manhattan has revealed the inner workings of Trump’s real estate empire, including what prosecutors say was a pattern of brazen lies about the value of assets to secure favorable loans and tax breaks.
According to James, Trump and his associates routinely exaggerated financial figures by hundreds of millions or even billions of dollars. In some years, she said, they falsely inflated Trump’s net worth by as much as $2.2 billion.
“We heard from many witnesses: Trump, his family, his employees, and accountants,” James tweeted. Their testimony exposed the baseless values and fraud they used to inflate Donald Trump’s net worth.
The bombshell accusations have dogged Trump for years. But James’ lawsuit, filed in September 2022, marked the first time he was forced to defend himself against fraud claims in court.
The trial has captured national attention not only because of Trump’s political ambitions, but because of insights into his unorthodox business methods. Trump’s attorneys have argued his valuations were simply a matter of opinion and that there was no intent to mislead.
Prosecutors rested their case last month after calling former Trump associates, bankers and analysts to testify. Although Trump was on the initial witness list, he did not testify – likely to avoid self-incrimination amid parallel criminal probes including a criminal fraud investigation by James’ office.
The case now hangs on closing arguments, where each side will plead its case before Judge Arthur Engoron. He has already issued a withering opinion of Trump’s credibility, ruling last fall that he believed Trump had lied in testimony about his net worth.
That partial verdict was important, establishing Trump’s liability. What remains to be decided is how much he will pay in penalties.
Before this trial even began, the court ruled in our favor and found that Donald Trump engaged in this fraud and unjustly enriched himself and his family,” James tweeted Thursday.
Trump had asked to delay closing arguments because of the death on Sunday of his mother-in-law, Amalija Knavs. But the judge denied that request, suggesting the funeral was not a legitimate reason.
He also barred Trump from making a closing statement himself, citing missed deadlines. Trump’s attorneys had hoped he could rebut prosecutors’ allegations directly. But Engoron said no, after clashing with Trump’s team over appropriate limits.
The time for anyone being above the law has ended,” James told reporters as she headed into court Thursday.
Her case adds to Trump’s snowballing legal vulnerabilities as he mounts a third White House run. In Atlanta, a special grand jury has recommended perjury and other charges over his bid to overturn the 2020 election. In Washington, the Justice Department is investigating his handling of classified documents and efforts to cling to power on Jan. 6, 2021.
But even if James prevails, her civil case would likely pack less of a punch than potential criminal charges. She can seek fines and limits on Trump’s business activities in New York, but not jail time.
For the former president, though, it’s still far from good news. In addition to reputational damage, the case could hinder his company’s ability to secure loans and make deals.
And if Engoron sides entirely with James, it would conclusively debunk Trump’s long-held image as a master dealmaker with a “midas touch” for business.
While ending his political career may be a taller order, the trial in Manhattan could make a significant dent in Trump’s self-spun narrative as a brilliant entrepreneur. That blow to his reputation could prove damaging with banks, partners and voters alike.
Thursday’s closing arguments will be closely watched for a final verdict on allegations that Trump puffed up his net worth by staggering sums. For the ex-president, it’s one more in a gathering storm of legal threats as he wades into another bruising White House run.
