Insights into Donald Trump's New York Civil Fraud Trial: Key Things to Watch

Former President Donald Trump is scheduled to testify on Monday in a high-stakes civil fraud trial in New York. The outcome of the trial has the potential to significantly impact his business empire. New York Attorney General Letitia James is seeking $250 million in damages and a prohibition on Trump conducting business in the state. James accuses Trump and his co-defendants of engaging in repeated fraudulent actions by inflating assets on financial statements to secure more favorable terms for commercial real estate loans and insurance policies.

The former president, despite not facing criminal charges, is furious about the allegations and has vehemently criticized the trial as a politically motivated witch hunt. Judge Arthur Engoron, who previously determined that Trump and his co-defendants, including his adult sons, were responsible for consistent fraud, is currently deliberating on the amount of damages the Trumps should pay for the profits they allegedly obtained through deceptive business practices.

Former President Donald Trump attends the Trump Organization civil fraud trial in New York State Supreme Court on October 24.

Mike Segar/Pool/Reuters

Developments in Trumps galaxy of legal problems, explained

The attorney general's office is investigating six additional allegations: falsification of business records, conspiracy to falsify business records, issuance of false financial statements, conspiracy to falsify false financial statements, insurance fraud, and conspiracy to commit insurance fraud. Trump's testimony on Monday will provide insight into his response to challenging questions, serving as a preview of the four criminal trials he will face next year while campaigning to reclaim the presidency.

The trial will not be broadcasted, yet Trump's testimony will undeniably be the most prominent moment of his 2024 presidential campaign. This campaign has consistently referenced his legal jeopardy as a crucial factor for voters to reelect him to the presidency. Here is what to anticipate on Monday, as well as the potential outcomes for Trump.

Trump on the stand

Trump has continuously criticized James for initiating the case against him. He has also accused the judge of displaying bias against him. Additionally, he has targeted the judge's law clerk, alleging bias as well.

Trump's behavior during the trial has caused controversy, as he has been penalized twice for violating a gag order that forbids him from discussing the judge's staff. These prior incidents will set the stage when the former president takes the oath and testifies on Monday morning. He will be obliged to respond to inquiries from the attorney general's team, which are anticipated to delve into the details of Trump's personal financial records and assessments of his real estate holdings.

Trump's response to the interrogation will face intense scrutiny. When Donald Trump Jr. and Eric Trump, the president's adult sons, were testifying, the lawyers of the attorney general reprimanded the witnesses for delivering speeches instead of providing direct "yes" or "no" answers. It is no secret that Trump tends to be long-winded in his speeches.

Moreover, Trump has gained a reputation for disseminating both major and minor falsehoods, which could potentially lead to problems during his sworn testimony.

Content needs to be

While Trump as the defendant will have limitations on his responses during the courtroom proceedings, Trump as the candidate will have the freedom to express himself when addressing the media just outside.

During his attendance at the trial, Trump has consistently taken the opportunity to voice his opinions whenever he enters or exits the courtroom, often vehemently criticizing the trial.

That has also caused trouble for Trump. While attending his former lawyer Michael Cohen's testimony, Trump addressed the cameras outside the courtroom and accused the individual sitting next to the judge of having bias - which seemed to breach Engoron's gag order.

Engoron summoned Trump to the witness stand for an unplanned hearing concerning the violation. Trump argued that he was referring to Cohen, not the clerk. Engoron dismissed his testimony as "lacking credibility" and imposed a $10,000 fine for violating the gag order.

Why this case matters to Trump

The civil case holds significant importance for Trump as it directly challenges his identity as a billionaire real estate magnate. The New York attorney general alleges that the former president artificially inflated his net worth in order to avoid paying hundreds of millions of dollars in taxes.

The attorney general is seeking to bar Trump from conducting business in the state and dissolve his companies, which has significant ramifications for the Trump Organization. They have accused Trump, his two adult sons, the Trump Organization, and numerous company executives of artificially inflating Trump's net worth by up to $3.6 billion to secure more favorable conditions on loans and insurance policies for commercial real estate. During the testimonies last week, an expert witness for the attorney general claimed that the fraudulent gains amounted to $168 million.

Trumps lawyers have challenged the accusations, asserting that assessing the value of assets is extremely subjective. Moreover, they have criticized the trial in Engorons' courtroom as being prejudiced against the ex-president, indicating their intention to file an appeal.

Donald Trump Jr. and Eric Trump on November 2.

Shannon Stapleton/Pool/Reuters

Key points from the compelling testimonies of Eric Trump and Donald Trump Jr. in the New York fraud case

Last week, Eric Trump and Donald Trump Jr. provided their testimonies, effectively disassociating themselves from any involvement in the creation of the presidents annual "statements of financial condition." These statements have raised allegations of inflating the values of Trump properties.

Cohen stated under oath that Trump instructed him and Allen Weisselberg, the former chief financial officer of the Trump Organization, to exaggerate the property values. However, Cohen later backtracked and stated that Trump did not explicitly tell him to do so, but the implication was understood. Weisselberg contradicted Cohen's testimony by stating that the meeting never took place.

Despite Trump's assertion that Cohen's conflicting statements exonerate him, Judge Engoron firmly rejected a motion from Trump's lawyers to dismiss the case, emphasizing the existence of substantial evidence beyond Cohen's testimony.

Trump will be pressed on his properties

Trump's business empire will be heavily scrutinized during the questioning, particularly focusing on his notable properties such as the iconic 40 Wall Street building in New York, the prestigious Trump National Doral Miami golf course and resort, the renowned Trump International Hotel & Tower in Chicago, and the prominent Old Post Office project in Washington, DC. Furthermore, the attorney general has accused Trump of artificially inflating the value of his triplex apartment in Trump Tower.

The tax status and value of Trump's Mar-a-Lago resort in Florida are crucial factors in the case, and perhaps, most significantly, they are at stake.

Trump has continuously cited a specific line in the judge's ruling from September, which stated that Mar-a-Lago had a value of $18 million. He uses this as evidence to assert that the decision was fundamentally flawed.

Trump's attorney, Alina Habba, stated in court that Mar-a-Lago could be sold for a minimum of $1 billion, emphasizing that the value is determined by what someone is willing to pay. She referred to Trump's properties as highly esteemed, comparable to the Mona Lisa. The $18 million valuation, which was based on a tax assessors appraisal, has raised doubts among real estate experts. Engoron clarified that the property's valuation was not a factor in his decision during the court proceedings.

But the Mar-a-Lago valuation is just one of the instances in which Trump is likely to push back against claims that the values of his properties were inflated.

Testimony from the whole family

Following the testimony of his adult sons, Donald Trump Jr. and Eric Trump, last week, Trump himself is now giving his testimony. Ivanka Trump, who was previously required to testify but had appealed the decision, is also scheduled to take the stand on Wednesday. However, it is important to note that she is not a co-defendant in the case. This is because an appellate court determined that she was outside the statute of limitations and therefore dismissed her as a defendant.

Trumps attorneys did not conduct any cross-examination of Donald Trump Jr. or Eric Trump. It remains unclear whether they intend to inquire Donald Trump after the attorney generals team completes their questioning.

It is anticipated that Trump's testimony will exclusively occur on Monday, although there is a slim possibility it may extend into Wednesday. (Court proceedings are suspended on Tuesday due to Election Day.)