New York – The fate of Donald Trump’s real estate empire in his hometown now lies in the hands of a judge, after closing arguments concluded last week in a civil fraud case brought by the New York Attorney General’s office.
Trump, who attended the proceedings, faces a potential $370 million penalty and could be barred from participating in New York real estate – the industry that built his fame and fortune – over allegations that he and his company inflated the value of assets on financial statements for over a decade.
The trial, presided over by State Judge Arthur Engoron, spanned 6 weeks in a lower Manhattan courtroom. Engoron had ruled prior to closing arguments that Trump could not personally address the court due to his history of hostile outbursts. Defying the order, Trump gave brief defiant remarks until the judge cut off his microphone.
The start of Friday’s court session was delayed by a bomb threat called in to Judge Engoron’s residence in an apparent act of intimidation. The judge did not mention the disturbing incident in the courtroom.
Arriving at the courthouse, Trump denied any wrongdoing and claimed the case represented “election interference at the highest level.” The former president expressed a strong desire to speak in his defense during closing arguments.
New York Attorney General Letitia James, whose office brought the lawsuit after a 3-year investigation into Trump’s business practices, looked on from the gallery. James’ $250 million civil suit accused Trump, the Trump Organization and top executives including his sons Donald Jr. and Eric of inflating the value of properties like golf clubs and skyscrapers to obtain favorable loan rates and insurance coverage.
Judge Previously Found Fraud Evidence
Prior to trial, Engoron had already determined the Trumps engaged in repeated instances of fraudulent conduct. The key question remaining is whether they intended to mislead.
Proceedings kicked off just after 10 a.m. with arguments from Trump’s lawyer, Christopher Kise, claiming none of the witnesses in 44 days of testimony had definitively characterized Trump’s financial statements as fraudulent or proven material misrepresentations. The prosecution will likely challenge this claim in its concluding statement.
Kise insisted Trump relied in good faith on accountants for the disputed documents and his actual net worth far exceeded the figures in question. He downplayed the importance of the statements, arguing they had no bearing on Trump receiving generous terms from banks eager to work with the celebrity businessman.
The defense also tried to undermine the credibility of former Trump executive Michael Cohen, portraying him as an unreliable witness who contradicted himself on the stand.
Trump Has Argued His Properties Worth More
For his part, Trump maintains his holdings were valued conservatively on the financial statements in dispute. He also contends he should not face damages since he never defaulted on the related loans and policies.
But the Attorney General’s office asserts the Trumps amassed hundreds of millions through illegal means and should pay over $370 million in penalties. James also wants Trump and two executives banned permanently from New York real estate, plus a 5-year ban for Trump’s sons.
Seeking to highlight Trump’s industry expertise, Kise urged the judge not to ignore his decades of success and knowledge. Although Engoron noted Trump had not qualified as an expert witness at trial, Kise insisted his achievements deserve consideration.
After 6 weeks of testimony ending in mid-December, Engoron is expected to issue a verdict by month’s end. The outcome will have major implications for the future of Trump’s business as he weighs another run for the presidency in 2024.
