Inside the High-Stakes $250 Million Trump Fraud Trial: Unveiling Day One’s Shocking Revelations

Former President Donald Trump made an appearance at a Manhattan courtroom on the first day of the New York civil case against him and his company. Throughout the proceedings, he consistently criticized the judge and the New York attorney general. Trump's presence effectively transformed the courthouse into an extension of his campaign trail, where he has vehemently denounced the four criminal indictments he is facing. Additionally, Judge Arthur Engoron previously ruled that Trump and his co-defendants were responsible for fraud in a recent decision.

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The civil fraud trial against Trump starts in New York, where Trump's attorneys challenged the judge during the opening statements, suggesting they will adopt an aggressive stance throughout the trial, which is anticipated to continue until December.

Heres what to know from the first day of Trumps trial:

Trump turns the courtroom into a campaign stop

Trump's arrival at the courthouse in downtown Manhattan on Monday morning transformed the event into a spectacle that he orchestrated himself. Despite not being required to appear, the ex-president seized the opportunity to strengthen his presidential campaign.

Although the case brought by the New York attorney general is a civil matter rather than a criminal one, it poses a threat to Trump's business in New York. His appearance at the courthouse served to emphasize that he regards it with the same level of urgency as the other legal cases brought against him in state and federal courts.

Trump criticized New York Attorney General Letitia James and the judge on his social media and during his media appearances for their involvement in the case against him. He attempted to link them to the unrelated criminal indictments of special counsel Jack Smith. Despite the lack of connection, Trump argued that this was all an effort to impair his performance in the election under the guise of election interference.

After the lunch break at the courtroom, Trump made two appearances in the hallway to express his discontent with what he had heard. He vehemently criticized the judge, labeling him as an "operative," and suggested that he should face disbarment for ruling against him. When asked about his decision to attend the proceedings in person on Monday, Trump reiterated his familiar statement, stating, "I want to personally witness this witch hunt."

Attorney general asks to ban Trump from doing business in New York

The attorney generals office made clear Monday that it plans to go for the jugular.

In his opening statement, attorney Kevin Wallace for the AG implored the judge to prohibit Trump, who gained fame and influence through a real estate empire spanning five decades, from engaging in business activities in New York. Wallace accused Trump and his co-defendants of conspiring to consistently and repeatedly commit fraud. He further claimed that Trump's financial statements misled banks into shouldering undisclosed risks amounting to hundreds of millions of dollars.

Wallace emphasized that while exaggeration may be acceptable when dealing with Forbes magazine, it is not permissible when conducting business in the state of New York. This statement highlights the potential danger the case poses to both Trump and the Trump Organization, which was established and gained reputation in New York before Trump's presidential campaign in 2016.

James filed a lawsuit in September, claiming that Trump and his co-defendants engaged in fraudulent activities by overestimating assets on financial statements. The purpose was to secure more favorable conditions for commercial real estate loans and insurance policies.

Former President Donald Trump delivers a speech at the Concerned Women for America Summit, held at the Capitol Hilton in Washington, DC on September 15, 2023. The event was captured by Jabin Botsford of The Washington Post/Getty Images.

Trump mocks GOP opponents while legal uncertainties hover.

Recently, Engoron determined that Trump and his co-defendants are responsible for consistent and frequent acts of deceit. Trump and his organizations may face substantial financial penalties for the purportedly gained profits from their deceptive commercial strategies.

During the trial that commenced on Monday, Engoron will evaluate the extent of payment required from the Trumps and their businesses, as well as the possibility of imposing a prohibition on their participation in commercial real estate transactions in New York or borrowing funds from New York banks. The attorneys general office aims to substantiate six extra allegations in the trial, encompassing the falsification of business records, dissemination of false financial statements, and perpetration of insurance fraud.

Trumps lawyers say this is how real estate works

With the presence of the previous president and Trump's legal team, it was contended on Monday that the attorney general's case had certain deficiencies. They claimed that the variations in valuations were simply a natural aspect of the commercial real estate industry.

Trump attorney Christopher Kise contended that there was no intention to deceive and no individuals harmed in the case. Kise referred to Deutsche Bank documents indicating that the bank appraised Trump's net worth as $2 billion lower than Trump himself, yet proceeded to approve the loan for him.

"They were eager," he said.

"This is what happens every day in this city," he added.

During the opening arguments, Alina Habba, an attorney representing Trump, criticized the previous week's ruling by the judge regarding the valuation of Mar-a-Lago. Although the judge clarified that his ruling did not explicitly value Mar-a-Lago at $18 million, but instead referred to the Palm Beach tax records, Habba asserted that Mar-a-Lago should be sold for a minimum of $1 billion.

"The value is what someone is willing to pay.The Trump properties are Mona Lisa properties," she added. "That is not fraud, that is real estate."

Judge spars with Trump attorneys

After completing her initial statement, in which she criticized James for stating that she would "bring down Trump," Habba, Engoron countered the Trump attorney.

The judge pointed out that the defense had previously attempted to have the case dismissed, arguing that James had initiated it as a "witch hunt" against Trump. Engoron stated that he had already rejected this motion, and his decision had been upheld by a higher court in New York.

Engoron indicated that Ms. James' motivations are no longer a matter of concern in this case, correct?

The judge also engaged in a heated exchange with Habba regarding a conversation about an accounting disclaimer for Mazars, which was previously Trump's accounting firm. Engoron interpreted the disclaimer as stating, "We are depending on the Trump Organization."

"No, your honor," Habba responded, arguing that the Trump Organization relied on Mazars and "theyre the accountants."

Trump watched intently during the back and forth between Habba and Engoron.

Kise later contended that the issue with the judge granting summary judgment is the lack of consideration for the evidence presented.

Kise emphasized, "It is imperative to give the defendants a fair chance by attentively listening to the evidence. These witnesses should at least be granted the opportunity to testify."

Kise and Engoron debated whether a valuations experts testimony at trial would be considered evidence.

"I intend to be very patient and liberal in listening to things," Engoron said to Kise

The exchanges underscored how the upcoming trial is going to be contested - especially when the judge, and not a jury, will decide the outcome.

Trial is going to last a long time – and will get in the financial weeds

Commencing on Monday morning, Engoron stated his anticipation of the trial extending beyond two months - concluding on December 22, the Friday preceding Christmas. Additionally, the trial will delve into intricate financial matters, encompassing discussions between the New York attorney general's office and Trump's legal team regarding financial statements, accounting procedures, and property assessments.

Wallace's opening statement at the attorney general's office mentioned the financial condition statements and showcased depositions of Eric Trump and Donald Trump Jr. Meanwhile, he discussed the Generally Accepted Accounting Principles (GAAP).

The attorney general summoned Donald Bender as the initial witness on Monday. Bender, who served as Trump's accountant at Mazars USA for a long time, has since retired from the firm. It is important to note that Mazars no longer handles Trump's tax preparations. In fact, the firm resigned and advised against reliance on Trump's financial statements.

Trump and his children are expected to be witnesses in the trial, which will undoubtedly bring some excitement. However, the main focus of the trial will be on the intricate details of accounting that serve as the foundation of the attorney general's case, which poses a threat to Trump's business. This report includes contributions from Lauren del Valle and Aaron Cooper of CNN.