High-Stakes Showdown: Trump's Fraud Trial Kicks Off in New York - Everything You Must Know!

Former President Donald Trump, along with his eldest sons, their companies, and Trump Organization executives, will be present in a New York courtroom on Monday for the commencement of the civil fraud trial against them. This trial follows shortly after Judge Arthur Engoron's recent ruling, which determined that Trump and his co-defendants are responsible for engaging in "persistent and repeated" fraud through exaggerations in their financial statements.

The ruling marked a major triumph for New York Attorney General Letitia James, who filed a $250 million lawsuit in September last year, accusing Trump and his partners of repeatedly engaging in fraud by inflating asset values on financial statements to obtain more favorable terms on commercial real estate loans and insurance policies.

According to the attorney general's office, Trump allegedly exaggerated his net worth by as much as $3.6 billion during three separate years from 2011 to 2021. Trump's legal representatives have contested these allegations, claiming that asset evaluations are subjective and that they are still assessing the implications of the ruling on the future of the company.

Heres what to know:

Whats at stake at trial

The Trumps and their businesses may face significant financial penalties for the profits they have allegedly obtained through fraudulent business practices. Engoron will assess the amount they will be required to pay.

The judge is expected to review allegations of fraud in business records and insurance related to prominent properties, as it has already been established that some form of fraud occurred.

The six accusations include falsifying business records, conspiring to falsify business records, issuing false financial statements, conspiring to falsify false financial statements, insurance fraud, and conspiring to commit insurance fraud.

James' lawsuit additionally requests the court to evaluate the prospect of prohibiting the Trumps from holding executive positions within a New York-based enterprise, as well as cease the company from participating in commercial transactions for a period of five years.

Whats the impact of the fraud ruling?

The trial's outlook is unclear following last week's Engorons ruling. During a hearing on Wednesday, Trump's attorney, Chris Kise, inquired about the judge's perception of the trial and its key issues.

The Trump Organization, along with other Trump entities involved in the case, had their business certifications revoked by the judge. As a result, a receiver must now be appointed to oversee the process of dissolving these corporate entities.

A doorman stands outside of Trump Tower, in New York, New York, on April 3, 2023.

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The Trump Organization is currently strategizing the future of its business following a fraud ruling. Uncertainties arise regarding the receiver's methods for dissolving the properties, potential implications of the ruling on non-New York state properties such as Mar-a-Lago, and the possibility of the Trump family transferring their New York assets to a new out-of-state company.

Kise stated that his legal team is uncertain about which Trump entities are encompassed by the ruling, citing the presence of over 400 or 500 entities.

Engoron mentioned that the team representing Trump has a time frame of 30 days to create a receivership plan.

Who will testify

Donald Bender, a longtime Trump Organization tax consultant, is expected to testify as the attorney generals first witness.

The former president, along with his adult children and closest business advisers, are all potential witnesses for both the attorney general and the defense in the civil trial. However, being listed as potential witnesses does not guarantee their testimonies. Despite having the option to waive his presence, Trump's attorneys have expressed his enthusiasm to testify in court.

Trump has already participated in a deposition for the case and mentioned that Allen Weisselberg, the former chief financial officer of the Trump Organization, and his team were mainly responsible for preparing the financial statements. According to Trump, his involvement in the preparation of financial statements was minimal, especially after 2015 when he initiated his presidential campaign.

Furthermore, the majority of the potential witnesses mentioned have already provided testimonies in recorded depositions.

Ivanka Trump is among the potential witnesses in the case, despite a state appellate court decision in June to dismiss charges against her due to exceeding the statute of limitations.

Other potential witnesses include Michael Cohen, the former personal attorney of Trump, as well as various current and former employees of the Trump Organization. Additionally, Weisselberg, who previously served time at Rikers Island as part of a plea deal for criminal tax fraud related to his involvement with the company, is also anticipated to testify.

How long will the trial take?

Engoron will be the lone decider in this civil bench trial, rather than a jury of New Yorkers.

The judge allotted three months for the trial, but it remains uncertain if the case will actually last that long since Engoron determined Trump and his co-defendants to be responsible for fraud.

The trial is set to commence at 10 a.m. ET and conclude at 4:30 p.m. every day, except for Fridays when it will adjourn at 1 p.m. to allow the judge to attend to other court matters.

Increased security has been put in place in downtown Manhattan ahead of the trial, a spokesperson for the New York State Unified Court System told CNN.

Trumps busy litigation calendar

As the 2024 election draws closer, the former president, who is currently engaged in active campaign efforts for a second term, finds himself confronted with a mounting number of criminal and civil lawsuits, resulting in an overcrowded schedule. In relation to a civil case, Trump's legal team requested a postponement of the trial, prompting the New York attorney general to contend that even a short delay would disrupt the trial calendar and potentially result in scheduling conflicts with his other pending cases in different courts.

Trump is currently confronted by four criminal indictments issued this year, along with various civil legal actions. Another round of legal proceedings between Trump and writer E. Jean Carroll in Manhattan federal court focuses on civil defamation claims and is slated to commence in January. Notably, Trump has the option to waive his presence at this civil trial, following a prior instance where a jury found him responsible for defamation in a similar case involving Carroll last year.

Two criminal cases against Trump are scheduled for trial in March in New York and Washington, DC.

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IRS contractor charged with stealing Donald Trump's tax returns, which were leaked to press

The federal election interference case brought by special counsel Jack Smith is anticipated to be tried in early March in DC. In New York, the former president is charged with 34 counts of falsifying business records to hide the reimbursement of hush money payments given to an adult film actress. The judge overseeing the New York case has indicated the possibility of adjusting the trial start date to align with the proceedings happening in DC.

The Smiths' case, which accuses Trump of mishandling classified documents, is scheduled to commence in a Florida federal court in late May.

The trial date for the election subversion case against Trump and his more than a dozen co-defendants in Fulton County, Georgia has not yet been set. However, the presiding judge has declared that it will not commence before the end of this year. This sets the stage for possible scheduling conflicts amidst the 2024 election cycle.

Trump has pleaded not guilty in all four cases.